LVMH shows good resilience in the first half of 2014

Strong creative momentum at Louis Vuitton
Paris, 24 July 2014

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded
revenue of €14 billion in the first half of 2014, an increase of 3%. Organic revenue growth
was 5% compared to the same period in 2013. The Group continued to grow in the United
States and Asia. Europe demonstrated resilience despite a still challenging economic
environment.

With organic growth of 3%, the second quarter showed comparable regional trends to the first
quarter, except in Japan, which had experienced particularly strong growth during the first
quarter.

Profit from recurring operations for the first half of 2014 was €2 576 million and current
operating margin reached 18%. Negative exchange rate effects weighed strongly on the first
half. Group share of net profit amounted to €1 509 million.

Bernard Arnault, Chairman and CEO of LVMH, commented:

“The results of the first half demonstrate LVMH’s excellent resilience, thanks to the strength
of its brands and the responsiveness of its organization in a climate of economic and financial
uncertainties. The first half of the year also witnessed the smooth integration of Loro Piana
into the Group. Following the first half’s good resilience, it is with confidence that we
approach the second half of the year and rely on the creativity and quality of our products, and
the effectiveness of our teams, to pursue further market share gains in our traditional markets,
as well as in high potential emerging territories.”

Highlights of the first half of 2014 include:
• Good resilience in Europe and continued growth in Asia and the United States,
• Strong negative exchange rate effect, particularly on Fashion & Leather Goods and
Watches & Jewelry activities,
• Wines & Spirits’ performance impacted by continued destocking by distributors in China,
• The qualitative development of Louis Vuitton, where profitability remains at an
exceptional level,
• Continued investment in the fashion brands,
• Strong innovation momentum at Parfums Christian Dior,
• Sustained investment in communication for Watches & Jewelry,
• Excellent performance of Sephora and continued expansion plan of DFS,
• Cash from operations before changes in working capital of €3.2 billion,
• Net debt to equity ratio of 23% as of the end of June 2014.




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First half First half % change
Euro millions
2013* 2014
Revenue 13 632 14 009 +3%
Profit from recurring operations 2 713 2 576 -5%
Group share of net profit 1 577 1 509 -4%
Cash from operations** 3 282 3 214 -2%
*Restated to reflect the application of IFRS 10 and 11 on consolidation.
** Before changes in working capital.

Revenue by business group:
First half First half % change
Euro millions 2013* 2014 Reported Organic**

Wines & Spirits 1 795 1 677 -7% -1%

Fashion & Leather Goods 4 711 5 030 +7% +4%

Perfumes & Cosmetics 1 804 1 839 +2% +6%

Watches & Jewelry 1 275 1 266 -1% +3%

Selective Retailing 4 198 4 382 +4% +9%

- -
Other activities and eliminations (151) (185)

Total LVMH 13 632 14 009 +3% +5%
* Restated to reflect the application of IFRS 10 and 11 on consolidation.
** With comparable structure and constant exchange rates. The structural impact, essentially linked to the
integration of Loro Piana, is +2% and the exchange rate impact is -4%.


Profit from recurring operations by business group:
First half First half % change
Euro millions
2013* 2014

539 461
Wines & Spirits - 15 %

1 493 1 487
Fashion & Leather Goods 0%

200 204
Perfumes & Cosmetics +2%

155 107
Watches & Jewelry - 31 %

412 398
Selective Retailing -3%

(86) (81)
Other activities and eliminations -

2 713 2 576
Total LVMH - 5%
* Restated to reflect the application of IFRS 10 and 11 on consolidation.


2/5
Wines & Spirits: continued destocking by distributors in China

The Wines & Spirits business group recorded a decrease in organic revenue of 1% in the first
half of 2014. Profit from recurring operations stood at €461 million. This trend essentially
reflects the performance of cognac in China, linked to destocking by distributors, which
continued in the second quarter. The champagne business, with its fast growing prestige
vintages, experienced a good start to the year. In an environment characterized by persistent
uncertainty in Europe, the US market continued to enjoy good dynamics. The business group
remained focused on its value strategy: firm pricing policy and strong innovation
accompanied by sustained investments in brand communications and in developing its
production capacity.


Fashion & Leather Goods: strong creative momentum at Louis Vuiton

The Fashion & Leather Goods business group recorded organic revenue growth of 4% in the
first half of 2014. Profit from recurring operations was €1 487 million, stable in comparison
to the same period of 2013, due to a strongly adverse exchange rate effect. Loro Piana
experienced an excellent start to the year. Louis Vuitton continues its strong creative
momentum with new artistic director, Nicolas Ghesquière, receiving an enthusiastic response
to his first show. The innovations in leather goods are seeing strong success. Fendi benefited
from the focus on its iconic bags, for which sales progressed strongly. Céline’s growth
continues to be driven by the success of its leather goods and the rapid development of
footwear. Several Céline flagship stores were opened around the world, particularly in
London, Tokyo and Paris. Other brands, such as Givenchy, Berluti and Kenzo, continued to
strengthen their positions.


Perfumes & Cosmetics: continuous innovation and increasing market share

The Perfumes & Cosmetics business group recorded organic revenue growth of 6%. Profit
from recurring operations stood at €204 million. Propelled by the vitality of its flagship lines
and the constant attention to quality of its products and their distribution, LVMH’s brands are
demonstrating excellent dynamics and increasing market share. Parfums Christian Dior
continued to benefit from the growth of its iconic perfumes J’Adore and Dior Homme. The
make-up segment also experienced sustained growth. Guerlain continues its progress with the
ongoing success of La Petite Robe Noire and the rapid development of Orchidée Impériale
and Abeille Royale. Benefit, Make Up For Ever and Fresh confirmed their excellent
performance.


Watches & Jewelry: good performance of jewelry and sustained brand communication

In the first half of 2014, the Watches & Jewelry business group recorded organic revenue
growth of 3%. The uncertainties linked to the economic environment continue to make multi-
brand retailers prudent in their purchasing. The performance in the brands’ own boutiques
exhibited significant growth. Bulgari benefited from positive momentum in jewelry. TAG
Heuer focused on the development of its iconic lines. The decrease in profit from recurring
operations, which stood at €107 million, is principally explained by a negative exchange rate
effect, while investments in communications continue.



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Selective Retailing: increasing market share for Sephora and continuing expansion and
renovation program at DFS

The Selective Retailing business group recorded organic revenue growth of 9%. Profit from
recurring operations was €398 million in the first half of 2014. DFS relies on growth of sales
to Asian clientele in a context of a fall in spending by Japanese tourists due to the weakness of
the Yen. Major expansion and renovation work at several airport concessions weighed on its
profitability. Sephora continues its growth in all regions, with particularly remarkable
performance in North America, the Middle East and Asia. The brand continues to strengthen
its position in key markets. Online sales grew significantly, helped by a strengthened mobile
offering. Sephora is proceeding with the expansion of its store network and has just opened its
first flagship store in Indonesia.


Outlook 2014

Despite an uncertain European economic environment, LVMH will continue to gain market
share thanks to the numerous product launches planned before the end of the year and its
geographic expansion in promising markets, while continuing to manage costs.

Our strategy of focusing on quality across all our activities, combined with the dynamism and
unparalleled creativity of our teams, will enable us to reinforce, once again in 2014, LVMH’s
global leadership position in luxury goods.

An interim dividend of 1.25 Euro will be paid on December 4, 2014.

Regulated information related to this press release, the half year results presentation and the
half year financial statement are available on our internet site www.lvmh.com

Limited review procedures have been carried out, the related report will be issued following
the Board meeting.




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ANNEXE
LVMH – Revenue by business group and by quarter
First Half 2014

Wines & Fashion & Perfumes & Watches & Selective Other Activities &
Total
(euro millions)
Spirits Leather Goods Cosmetics Jewelry Distribution Eliminations
First quarter 888 2 639 941 607 2 222 (91) 7 206
Second quarter 789 2 391 898 659 2 160 (94) 6 803
Total revenue 1 677 5 030 1 839 1 266 4 382 (185) 14 009


First Half 2013 restated*

Wines & Fashion & Perfumes & Watches & Selective Other Activities &
Total
(euro millions)
Spirits Leather Goods Cosmetics Jewelry Distribution Eliminations
First quarter 967 2 383 932 608 2 113 (90) 6 913
Second quarter 828 2 328 872 667 2 085 (61) 6 719
Total revenue 1 795 4 711 1 804 1 275 4 198 (151) 13 632
*Restated to reflect the application of IFRS 10 and 11 on consolidation.

First Half 2013 reported

Wines & Fashion & Perfumes & Watches & Selective Other Activities &
Total
(euro millions)
Spirits Leather Goods Cosmetics Jewelry Distribution Eliminations
First quarter 979 2 383 932 624 2 122 (93) 6 947
Second quarter 829 2 328 872 686 2 093 (60) 6 748
Total revenue 1 808 4 711 1 804 1 310 4 215 (153) 13 695


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, Domaine du Clos des Lambrays, Château Cheval Blanc,
Hennessy, Glenmorangie, Ardbeg, Wen Jun, Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape
Mentelle, Newton et Numanthia. Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas
Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana. 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 as well
as in other activities through DFS, Sephora, Le Bon Marché, la Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division
comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, 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 + 33 1.4413.2122
LVMH

Media:
France : Michel Calzaroni/Olivier Labesse/ + 33 1.4070.1189
Sonia Fellmann/Hugues Schmitt
DGM Conseil

UK: Hugh Morrison + 44.773.965 5492


Italy: Michele Calcaterra/Mateo Steinbach +39 02.8905.5101
Carlo Bruno&Associati

US: James Fingeroth/Molly Morse/ +1 212.521.4800
Anntal Silver
Kekst & Company



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