Excellent first half for LVMH


Paris, 26 July 2011

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded
revenue of €10.3 billion in the first half of 2011, an increase of 13%. Organic revenue growth
was 15%. All business groups contributed to this performance, which is even more
remarkable coming on top of the strong growth in the first half of 2010. The Group continued
its sustained growth in the U.S., Europe and Asia.

Profit from recurring operations for the first half of 2011 rose to €2 223 million, an increase
of 22% compared to the same period in 2010, which had itself shown strong growth. Current
operating margin reached 22%, an improvement on the first half of 2010. Group share of net
profit increased to €1 310 million, an increase of 25%.

Bernard Arnault, Chairman and CEO of LVMH, commented:
“LVMH’s excellent performance in the first half, once again, demonstrates the exceptional
appeal of our brands, the attraction of our high quality artisanal products and the pertinence of
our strategy. The first half was marked by the agreement with the Bulgari family to strengthen
the long-term growth of the famous Italian Maison. This alliance will bring significant
advantages both to the Bulgari Maison and to LVMH. We approach the second half of the
year with confidence and are relying upon the creativity and quality of our products as well as
the effectiveness of our teams to pursue further market share gains in our historical markets as
well as in high potential emerging markets.”

Highlights of the first half of 2011 include:

• Double-digit organic revenue growth in all business groups,
• Market share gains of all our brands,
• Strong revenue growth in emerging markets,
• A record level of first half current operating margin,
• Continued remarkable momentum at Louis Vuitton which recorded double-digit organic
revenue growth and an exceptional level of profitability,
• Confirmation of the continued demand for Wines & Spirits and Watches & Jewelry,
• Robust growth at Christian Dior, which gained market share,
• Rapid progress for DFS and Sephora across all markets,
• Cash from operations before changes in working capital of €2.5 billion, up 25%,
• Net debt to equity ratio of 19% as at the end of June 2011




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First half First half
Euro millions % change
2010 2011
Revenue 9 099 10 292 + 13%
Profit from recurring operations 1 816 2 223 + 22%
Group share of net profit 1 050 1 310 + 25%
Cash from operations * 2 022 2 536 + 25%
* before changes in working capital

Revenue by business group:
% change
First half First half
Euro millions
2010 2011 Reported Organic*

Wines & Spirits 1 302 1 435 + 10% + 13%

Fashion & Leather Goods 3 516 3 971 + 13% + 14%

Perfumes & Cosmetics 1 441 1 518 + 5% + 11%

Watches & Jewelry 443 576 + 30% + 27%

Selective Retailing 2 419 2 831 + 17% + 18%

Other activities and eliminations (22) (39) - -

Total LVMH 9 099 10 292 + 13% + 15%
*with comparable structure and exchange rates

Profit from recurring operations by business group:
First half First half
Euro millions % change
2010 2011
326 413
Wines & Spirits + 27%

1 179 1 381
Fashion & Leather Goods + 17%

181 181
Perfumes & Cosmetics 0%

49 85
Watches & Jewelry + 73%

176 287
Selective Retailing + 63%

(95) (124)
Other activities and eliminations -

1 816 2 223
Total LVMH + 22%




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Wines & Spirits: confirmation of a strong return in demand

The first half saw the confirmation of strong demand at Wines & Spirits, accompanied by an
improved product mix in line with its value creation strategy. Organic revenue increased by
13% and profit from recurring operations increased by 27%. Champagne revenue experienced
rapid growth with a particularly sharp rise for the prestige cuvées, notably Dom Perignon and
Krug. The sparkling and still wines activity grew rapidly. Hennessy cognac continued to
record strong performances. The premium quality products achieved the strongest growth.
Glenmorangie and Belvedere experienced strong momentum.

Fashion & Leather Goods: exceptional success of Louis Vuitton and other brands

The Fashion & Leather Goods business group registered 14% organic revenue growth in the
first half of 2011. Profit from recurring operations increased by 17%. Louis Vuitton continued
to register exceptional performance, confirming the brand’s strong appeal to both its most
loyal and its new clientele. All its business lines contributed to this momentum. A number of
products have waiting lists. Louis Vuitton’s participation in the Basel watch fair for the first
time and the opening of the new leather goods workshop in Marsaz in France marked the first
half. Louis Vuitton is always driven by its incomparable creative capacity, and by the fact that
it is the only luxury brand in the world to sell its products exclusively through its own store
network. Fendi and Donna Karan continued sustained growth in their revenue and profit. The
other fashion brands had an excellent beginning of the year. Céline, in particular, generated
extraordinary demand from its clientele.

Perfumes & Cosmetics: vitality of iconic lines

The Perfumes & Cosmetics business group registered 11% organic revenue growth. Profit
from recurring operations was stable compared to an atypical first half of 2010 when revenue
growth had preceded marketing expense growth. In a highly competitive global market
marked by marketing investments, Christian Dior continued its strong momentum thanks to
the excellent vitality of its iconic perfumes, notably Miss Dior and J’adore. The success of
the new lipstick line Dior Addict contributed to further increase Dior’s position in the make-
up market, and skincare benefited from the progress of Capture. Guerlain achieved good
performance thanks to the successful launch of Shalimar Parfum Initial and the rapid growth
of its impressive skin care product, Orchidée Impériale. Givenchy benefited from the growth
of the perfume Play in both the men and women’s versions. Benefit continued its rapid and
profitable growth.

Watches & Jewelry: strong improvement in current operating margin

In the first half of 2011, the Watches & Jewelry business group benefited from sustained
demand across all its regions. Organic revenue grew by 27% and profit from recurring
operations increased by 73%. TAG Heuer revenue grew significantly thanks to the automatic
chronograph made with the 1887 Calibre movement, to the new women’s ranges in the
Formula 1 line, as well as the selective opening of TAG Heuer stores. At Hublot, the latest
models from the King Power line were delivered, complete with new Unico movements made
by its Manufacture. Zenith confirmed the strong demand of its new collections. Dior launched
with extraordinary success the Dior VIII watch, which has already become a world reference.
Chaumet, Fred and De Beers achieved good performances in their own store networks. At the
most recent Basel watch fair, the Group’s watch brands presented numerous innovations
which will be delivered in the second half of the year.


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The first half was marked by the agreement made with the Bulgari family, shareholder of the
celebrated Italian Maison, for the contribution of its majority shareholding to LVMH. Having
obtained the agreement of the relevant authorities, the LVMH Board approved this
contribution on June 30, 2011, bringing LVMH’s holding in Bulgari to 76.1%. A tender offer
for the shares owned by minority shareholders will be launched shortly.

Selective Distribution: rapid growth and strong profitability

Selective Distribution achieved organic revenue growth of 18% and profit from recurring
operations increased by 63% in the first half of 2011. Sustained by the continued growth in
Asian tourism, DFS reaped the rewards of its upscaling strategy and its development in new
markets. The Gallerias in Hong Kong, Macao and Singapore recorded remarkable
performances as did North America which enjoyed good momentum. Renovation programs
continued in markets with strong potential.
Sephora recorded an excellent performance and strengthened its position across all its
markets. Comparable store growth accelerated in the second quarter and online sales
continued their rapid growth. Sephora continued to develop and modernize its network of
stores. In Russia, Sephora increased its holding in the Ile de Beauté brand, one of the key
players in the market, to 65%.

2011 Outlook

In a global market experiencing strong growth but an uncertain monetary environment,
LVMH will continue to gain market share thanks to the numerous product launches planned
before the end of the year, to its geographic expansion in promising markets, while continuing
to manage costs.

Our strategy of focusing on quality across our entire product range, combined with the
dynamism and unparalleled creativity of our teams, will enable us to reinforce, once again in
2011, LVMH’s global leadership position in luxury products.

An interim dividend of €0.80 will be paid on December 2, 2011.



Regulated information related to this press release is available on our internet site
www.lvmh.com.

Audit procedures carried out, audit report issued following the Board meeting.




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APPENDIX

LVMH – Revenue by business group and by quarter
First half 2011

Wines & Fashion & Perfumes & Watches & Selective Other Activities
Total
(Euro millions)
Spirits Leather Goods Cosmetics Jewelry Retailing & Eliminations
First Quarter 762 2 029 803 261 1 421 (29) 5 247
Second Quarter 673 1 942 715 315 1 410 (10) 5 045
Total revenue 1 435 3 971 1 518 576 2 831 (39) 10 292


First half 2010

Wines & Fashion & Perfumes & Watches & Selective Other Activities
Total
(Euro millions)
Spirits Leather Goods Cosmetics Jewelry Retailing & Eliminations
First Quarter 635 1 729 736 204 1 181 (13) 4 472
Second Quarter 667 1 787 705 239 1 238 (9) 4 627
Total revenue 1 302 3 516 1 441 443 2 419 (22) 9 099




About LVMH
LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon,
Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Hennessy, Glenmorangie, Ardbeg, Vodka
Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton,
Wen Jun. Its Fashion and Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as Céline,
Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs and Berluti. LVMH is present in the
Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as
well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also
active in selective retailing through DFS, Sephora, Le Bon Marché and la Samaritaine. LVMH's Watches and Jewelry division
comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Jewellery, a joint venture created
with the world’s leading diamond group.

"Certain information included in this release is forward looking and is subject to important risks and uncertainties and factors
beyond our control or ability to predict, that could cause actual results to differ materially from those anticipated, projected or
implied. It only reflects our views as of the date of this presentation. No undue reliance should therefore be based on any such
information, it being also agreed that we undertake no commitment to amend or update it after the date hereof.”



Contacts :
Analysts and investors : Chris Hollis – LVMH + 33 1 44.13.21.22

Media :
France : Michel Calzaroni /Olivier Labesse /
+ 33 1 40.70.11.89
Sonia Fellmann / Hugues Schmitt
DGM Conseil

UK : Hugh Morrison + 44 207 920.23.34
M: Communications + 44 773 965.54.92

Italy : Michele Calcaterra / Valerio Mancino +39 02.89.05.51.01
Carlobruno&associati

US : James Fingeroth / Molly Morse /
+1 212 521.48.00
Dawn Dover / Micheline Tang
Kekst & Company




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