Bulgari Luxury Group

COMPANY PROFILE

Bulgari S.p.A.

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TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................6

Key Employees.....................................................................................................8

Key Employee Biographies..................................................................................9

Major Products and Services............................................................................10

Top Competitors.................................................................................................11

Company View.....................................................................................................12

Locations and Subsidiaries...............................................................................14

Bulgari S.p.A. © MarketLine

Bulgari S.p.A.TABLE OF CONTENTS

COMPANY OVERVIEW

Bulgari is engaged in the production of luxury products including jewelry, watches, accessories, gifts,leather goods, fragrances and skin care products. The company also operates luxury resorts andhotels in Milan, Italy, and in Bali, Indonesia. The company operates in Europe, North and SouthAmerica and Asia Pacific. It is headquartered in Rome, Italy, and employs around 3,815 people.

The company recorded revenues of E1,069 million (approximately $1,419.6 million) in the fiscal yearended December 2010, an increase of 15.4% over 2009.The company's operating profit was E85.3million (approximately $113.3 million) in fiscal 2010, as compared to an operating loss of E19.8million (approximately $26.3 million) in 2009. Its net profit was E38 million (approximately $50.5million) in fiscal 2010, as compared to the net loss of E47.1 million (approximately $62.5 million) in2009.

KEY FACTS

Bulgari S.p.A.Head OfficeSede legaleVia dei Condotti11 00187 RomaITA

39 6 688 101Phone

39 6 688 10400Fax

http://www.bulgari.comWeb Address

1,069.0Revenue / turnover(EUR Mn)

DecemberFinancial Year End

3,815Employees

BULBorsa Italiana Ticker


Bulgari S.p.A.Company Overview

BUSINESS DESCRIPTION

Bulgari is a manufacturer and retailer of luxury items including jewelry, watches, accessories, gifts,leather goods, fragrances and skin care products. The company operates 42 companies and 293stores in Europe, America, Australia, China, Japan and the Middle East. It designs and manufacturesarticles of jewelry, gold jewelry, watches, fragrances, cosmetics, silk and leather accessories,porcelain, silver and crystal items.

The company operates through two business segments: hard luxury and soft luxury.

The hard luxury includes jewelry-watches-accessories (JWA); and soft luxury includes perfumesand cosmetics.

Bulgari's JWA operates through four units: jewelry, watches, leather goods and accessories. Thesegment's jewelry unit comprises rings, faiths, necklaces, pending, earrings, bracelets, twins, chainsand leather straps. Some of the brands under this segment include: Parenthesis, Tubogas, BulgariBulgari, Astral, Allegra, Elisa and Monologue for rings.

Bulgari's watch unit has watches made for men, women as well as unisex. The brands availableinclude: Sotirio Bulgari, Axiom D, Bvlgari Bvlgari, Diag, Ergon, Snakes, Astral, Brackets, and B.Zero1.The watches come with platinum, white gold, yellow gold, stainless steel, diamonds, titanium, rubies,sapphires, emeralds, colored gems and others.

Bulgari also offers leather goods for men and women under its leather goods unit. Its products includebags, belts, bracelets, small leather goods and portfolios. The products are made from calfskin,coated fabric, silk saglione, silk jacquard, lambskin, crocodile, leather, chevron canvas, nubuck,python, silver, tassel and other materials.

The company's accessories unit designs and manufacturers a range of accessories collections forboth men and women such as: handmade seven fold neckties, silk scarves, cashmere stoles, stylishcufflinks, exclusive pens, sunglasses with Swarovski crystals, eyeglasses, key chains, writinginstruments and other accessories.

The perfumes and cosmetics division provides a collection of fragrances/perfumes for both men andwomen. These products are marketed under the brand names of Blv, Aqva, Omnia, Classic Lines,Petits Et Mamans, Jasmin Noir, UAE Parfumee and Eau de Toilette's by BLV.

Bulgari also sells skin care products. The company has its own research and development for theseproducts in Switzerland under the name Bvlgari Cosmetics. Bulgari's unique product, Bvlgari GemEssence, an exclusive formula made with gemstones and precious stones is sold in its skin careproducts section.


Bulgari S.p.A.Business Description

Bulgari also operates three luxury hotels located in Milan, Bali and London; and two hotels Ginzaand Omotesando located in Tokyo. Bulgari Hotels & Resorts is a joint venture between Bulgari andLuxury Group, a Division of Marriott International.


Bulgari S.p.A.Business Description

HISTORY

Bulgari was established in Rome, Italy in 1884.

During 1920s and 1930s, the company established a series of Art Deco-inspired diamondcompositions.

Bulgari originally concentrated solely on its domestic market, but began to expand internationally inthe 1970s. New retail outlets were established in New York City, New York; Paris, France; and MonteCarlo.

In 1984, Francesco Trapani was appointed as Chief Executive Officer.

Bulgari was listed on the Italian Stock Exchange in 1995. In the following year the company launchedits first textile collection. In 1997, Bulgari launched a range of leather accessories and luxury eyewearcollections.

In 2000, the company signed an agreement with The Hour Glass, a Singapore based company toacquire Gerald Genta S.A. and Daniel Roth S.A., high-end watch making companies, and Manufacturede Haute Horlogerie S.A., the owner of the related manufacturing facilities. In the following year,Bulgari established Bulgari Hotels & Resorts which was a joint venture between Bulgari and MarriottInternational.

Bulgari acquired 50% interest in Crova SpA, a high-end jewelry brand, in 2002.

In 2004, Bulgari acquired 100% interest in Crova SpA. In the same year, Bulgari and the LevievGroup, a producer of cut diamonds, signed a joint venture agreement to establish a company inSwitzerland, 50% owned by Bulgari International, a fully owned subsidiary of Bulgari, and 50% ownedby LLD Diamonds, a fully owned subsidiary of Leviev Group. This division was to develop Bulgari’sdiamond jewelry business.

Also in 2004, Bulgari's Hotel in Milan, Italy was opened. The company also opened a store in saka,Japan.

Bulgari acquired a 50% stake in Cadrans Design, a Swiss company specializing in the creation andproduction of dials for precision and high-end watches in 2005. In the same year, Bulgari launchedSapphire flower collection of jewelry and the Eau Parfumee Summer collection, followed by theAssioma watch.The company also acquired Prestige d Or, a metal watchstraps producing company.Also in 2005, Bulgari acquired 100% of the Italian leather-goods company Pacini, and renamed itto Bulgari Accessori S.r.l.


Bulgari S.p.A.History

In 2007, the company acquired Finger, a Swiss company engaged in production of sophisticatedcases for watches of the international watch making brands. In the same year, Bulgari openedaccessories stores in Seoul, Milan, Florence, Rome and Singapore. The company also opened an11-story Bulgari Ginza Tower in Tokyo. Bulgari acquired Leschot, a specialized watch makingmachinery producer in the same year.

The company opened new stores in Paris, France, Doha, Atlanta and Melbourne, in 2008. In 2009,Bulgari launched its first in-house produced and assembled watch 'Sotirio Bulgari TourbillonQuantième Perpétuel'.

In January 2010, Bulgari announced that the Gerald Genta and Daniel Roth watch collections wouldbe sold under the Bulgari brand from September 2010.

In May 2010, the company extended its license agreement with the Luxottica Group, a premiumfashion, luxury and sports eyewear manufacturer, for 10 years. The agreement was for the design,production and worldwide distribution of prescription frames and sunglasses under the Bulgari brand.

Bulgari signed a strategic partnership with Hengdeli Holdings Limited, a retail company of high-endwatches through multibrand watch stores located in mainland China in November 2010.

In February 2011, Bulgari Hotels & Resorts signed an agreement for the new Bulgari Hotel locatedin Knightsbridge, in Central London by Hyde Park.


Bulgari S.p.A.History

KEY EMPLOYEES

BoardJob TitleName

Executive BoardChief Executive OfficerFrancesco Trapani

Non Executive BoardChairmanPaolo Bulgari

Non Executive BoardVice ChairmanNicola Bulgari

Non Executive BoardDirectorClaudio Costamagna

Non Executive BoardDirectorClaudio Sposito

Non Executive BoardDirectorGiulio Figarolo di Groppello

Non Executive BoardDirectorPaolo Cuccia

Senior ManagementChief Financial and Organization OfficerFlavia Spena

Senior ManagementExecutive Vice President and Chief OperatingOfficer

Alessandro Bogliolo

Senior ManagementExecutive Vice President, Bulgari Hotels andResorts

Silvio Ursini


Bulgari S.p.A.Key Employees

KEY EMPLOYEE BIOGRAPHIES

Flavia Spena

Board: Senior ManagementJob Title: Chief Financial and Organization OfficerSince: 2009Age: 51

Ms. Spena has been the Chief Financial & Organization Officer at Bulgari since 2009. She joinedthe group in 1990 as Corporate Human Resources Organization Manager, and in 1992 becameCorporate Human Resources and Organization Executive Vice President. Through the design ofeffective & efficient processes and innovative planning, her guidance sustained the expansion ofthe Bulgari Group by building and developing an excellent team worldwide.

Alessandro Bogliolo

Board: Senior ManagementJob Title: Executive Vice President and Chief Operating OfficerAge: 45

Mr. Bogliolo has been the Chief Operating Officer at Bulgari since 2009. He joined the Bulgarimanagement team in 1996. In 1999, he assumed the responsibility of Jewellery Watches, AccessoryGeneral Management for South - East Asian markets and in 2002 was appointed JWA DivisionExecutive Vice President, leading the group through the global commercial development and thevertical integration process.

Silvio Ursini

Board: Senior ManagementJob Title: Executive Vice President, Bulgari Hotels and ResortsSince: 2008Age: 48

Mr. Ursini has been the Bulgari Hotels & Resorts Executive Vice President since 2008. He joinedthe group in 1989 as Marketing Manager and, in 1992; he was appointed Corporate Marketing andDesign Executive Vice President. He led the strategic marketing planning and creative productionof the group, with responsibility for the Design Team on all product categories (Jewellery, Watches,Accessories, and Fragrances) and the Interior Design department.


Bulgari S.p.A.Key Employee Biographies

MAJOR PRODUCTS AND SERVICES

Bulgari is engaged in the production of luxury products, including jewelry, watches, perfumes and accessories. The company offers the following products:

Products:

Jewellery Watches Accessories and gifts Leather goods Fragrances Skincare

Services:

Operating hotels and resorts


Bulgari S.p.A.Major Products and Services

TOP COMPETITORS

The following companies are the major competitors of Bulgari S.p.A.

LVMH Moet Hennessy Louis Vuitton SACompagnie Financiere Richemont SAGucci Group NVPrada SpACartier SATiffany & Co.Christian Dior SA


Bulgari S.p.A.Top Competitors

COMPANY VIEW

A statement by Francesco Trapani, Chief Executive Officer at Bulgari is given below. The statementhas been taken from the company's 2010 annual report.

Dear Shareholders,

Financial results improved progressively from quarter to quarter in 2010, confirming the recoverybegun in the fourth quarter of 2009 and declaring the end of the destocking in the wholesale channelthat marked the previous year. All product categories sectors were positive, with turnover reaching1,069 million euros (+15.4% at current exchange rates): jewellery increased by 21.4%, watches by1.3%, perfumes by 12%, and accessories by 34.7%.

A very good picture comes out also from sales performance in terms of geographic areas, especiallyin the United States (+23.5%) and Asia (+24.1%), with Greater China once again the most interestingmarket (+38.4%). Europe presented a satisfactory trend (+5.9%), whereas performance in the MiddleEast was somewhat more irregular, with a recovery in the last quarter which led to an overall growthof 1%.

When analysing sales in the quarters, the success of new launches is especially evident, since forjewellery, watches, and perfumes they were all concentrated in the second half of the year.This hadan extremely positive and immediate effect on the sales trend. The choice to have jewellery focuson the reinterpretation of brand icons (such as the Serpenti and B.zero1 collections) was verysuccessful, emphasising goldsmithing expertise and innovative design.

Likewise, in the watch segment, the decision to integrate the Roth and Genta collections in theBulgari lines, maintaining the technical characteristics that made the two Swiss brands famous,generated excellent results in terms of sales and the appreciation of watch experts and enthusiasts.In fact, two Bulgari Octo models won two international prizes from important magazines: “Best Watchof the Year” and “Best Complicated Watch of the Year.” Therefore, in addition to giving greatsatisfaction, this integration produced other important results: the consolidation of the evolution intoa manufacturing pole, a more efficient and rational organisation of our watch sector, and an evengreater product assortment in the highly competitive arena of complicated watches. The watchsegment was strengthened even further by an agreement that Bulgari stipulated on a strategic marketwith Hengdeli Holdings Limited, Mainland China’s largest seller of luxury watches in multi-brandstores. Thanks to this agreement, the visibility of Bulgari watches will increase significantly duringthe next 4-5 years thanks to their presence in over 50 new multi-brand stores in Mainland China,where the Company already has 20 owned stores.

This intense work to develop products and expand the distribution network was supported bycollaborations with talents such as Anish Kapoor, Isabella Rossellini, and Matthew Williamson, whoprovided personal interpretations of the spirit and values of the brand by means of extremely originaland highly wearable creations. In addition, the Company upgraded its web communications channels


Bulgari S.p.A.Company View

to reach final consumers even more effectively, and designed advertising campaigns with strongvisual impact featuring charismatic testimonials such as Clive Owen and Julianne Moore. Even ina context of reduced costs and investments, the distribution network was improved by refurbishingexisting stores and opening new ones, with the aim of controlling distribution as directly as possible,while constantly improving the shopping experience.

In addition to these positive results, the substantial reduction in net indebtedness (-37.6%), also interms of gearing ratio, as well as the improved contribution margin despite the extraordinary andconstant increase in gold prices, prove the solidity of a Company which has been able to reap thefruits of the efficiency and cost containment strategy implemented in late 2008 to face the economiccrisis, simultaneously offering even more competitive products in all categories. These solid basesand the continuation of long-term strategies will certainly lead to a further growth and an increasedprestige for the Bulgari brand on the worldwide luxury market.


Bulgari S.p.A.Company View

LOCATIONS AND SUBSIDIARIESHead Office

Bulgari S.p.A.Sede legaleVia dei Condotti11 00187 RomaITAP:39 6 688 101F:39 6 688 10400http://www.bulgari.com

Other Locations and Subsidiaries

Bulgari Japan Ltd.Bulgari Corporation of America Inc.TokyoNew York CityJPNNew York

USA

Daniel Roth et Gerald Genta HauteHorlogerie S.A.

Bulgari Global Operations S.A.Neuchatel

GenevaCHECHE

Bulgari Asia Pacific Ltd.Bulgari Commercial (Shangai) Co. Ltd.HKGShangai

CHN

Bulgari Parfums S.A.Bulgari Time (Switzerland) S.A.NeuchatelNeuchatelCHECHE


Bulgari S.p.A.Locations and Subsidiaries

Bulgari Luxury Group

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