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8/14/2019 Greater China Other Asian Countries Middle East Latin

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AnnualShareholdersMeeting

May 15, 2008

Bernard Arnault


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Excellent performance in 2007

Further strengthen our foundations in 2007despite a difficult currency environment

Strong organic revenue growth of 13 %

Solid progress in historical markets

Strong momentum in emerging countries

Profit from recurring operations up 12%

Double-digit growth for all business groups

At constant exchange rates,profit from recurring operations up 20 %

Further increase of current operating margin to 22 %

Cash flow from operations grew 15 %

4

Well-balanced contributionfrom all business groups

Strong vitality of major brands

New star brands increased momentum and continuedto improve their profitability

Rapid development in emerging countries benefitedall business groups

Powerful Wines and Spirits brands reinforcedtheir value creation strategy

New record year for Louis Vuitton, which continues to generateexceptional level of profitability

Market share gains for TAG Heuer, Parfums Christian Diorand Sephora


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Jean-Jacques Guiony


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(252)(53)Net financial income (expense)

+7%(5 752)(5 364)Selling expenses

+8%(1 388)(1 289)Administrative expenses

+8%2 0251 879Group share of net profit

+12%3 4293 052Operating profit

(126)(120)Other income and expenses

+12%3 5553 172Profit from recurring operations

+9%10 6959 825Gross margin

+8%16 48115 306Revenue

Change %20072006In millions of euros

Summarized income statement

8

Profit from recurring operationsincreased 12 %

+ 12%3 5553 172LVMH

-(168)(125)Others and eliminations

+ 10%439400Selective retailing

+ 76%14180Watches & Jewelry

+ 15%256222Perfumes & Cosmetics+ 12%1 8291 633Fashion & Leather Goods

+ 10%1 058962Wines & Spirits

Change %20072006In millions of euros


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In millions of euros

3 172+ 638 - 255 3 555

2006 2007

Operationalimprovements Currencyimpact*

* incl.: Fashion and Leather Goods: -148M Wines & Spirits: -50M

Profit from recurring operations

increased 20 % at constant currency

10

LiabilitiesDec. 31, 2007

30.7 30.7

Assets

In billions of euros

Non currentassets

InventoriesOther currentassets

66%41%

34%

25%16%18%

Total equity

Non-currentliabilities

Currentliabilities

Strong progress in equity

Rise in inventory level Increased business

Constitution of cognac inventories

Net financial debt reduction

Solid financial structure


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In millions of eurosNet debtTotal equity

41% 29% 25%Gearing

Dec. 31, 2007

3 094

12 528

Dec. 31, 2005

4 318

10 484

Dec. 31, 2006

3 400

11 594

Net debt and equity

12

60

80

100

120

140

160

180

200

220

240

S1 2003 S2 2003 S1 2004 S2 2004 S1 2005 S2 2005 S1 2006 S2 2006 S1 2007 S2 2007

LVMH CAC 40

Share price performance since 2003

2005 2006 2007

Share price base 100 at January 1, 2003

LVMH : +111%

Source: JCF Group


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2007 Dividend increased 14%

Net dividend per shareIn euros

2004

0.850.95

1.15

1.40 1.60

2003 2005 2006

+22%+21%

+12%

2007

+14%



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Bernard Arnault

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Results of the LVMH shareholder survey

LVMH strategy and perspectives

Development in emerging countries


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An ambitious and consistent strategy

Prioritize investment in star brands

Grow other brands and raise their status

Reinforce our presence in historical markets

Adapt to the development of emerging clientele

Continue to focus on internal growth

STRATEGY AND PERSPECTIVES

18

Social and environmental policy

A dynamic social policy

Develop excellent teams

Perpetuate our rare and demanding savoir-faire

Promote corporate social accountability

Strong commitment to protecting the environment

Preserve our natural resources and design environment-friendly products

Some initiatives within the Group: ISO 14001 certification and carbon footprint assessment for several brands Louis Vuitton HEQ (High Environmental Quality) logistic warehouse Development of eco-design (stores/packaging)

Integrated grape growing (viticulture raisonne)and protection of biodiversity strengthened



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Organic revenue growth

in the first quarter of 2008: +12%

Double-digit organic revenue growth continued in Q1 2008

Another exceptional performance by Louis Vuitton

Strong growth momentum at Sephora, Parfums Christian Diorand TAG Heuer

Double-digit revenue growth in US (in $) and Asia


20

An unfavorable currency environmentand an uncertain economic climate

Sustained innovation

Effective communication Development of new clientele

Continued focus on productivity improvement

Expansion of store network

2008 : continue to gain market share

Objective of tangible growth in 2008 results



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2003 2007

Greater China

Other Asian countries

Middle East

Latin America

Central and EasternEurope

An important growth driver for the GroupDEVELOPMENT IN EMERGING COUNTRIES

Evolution of LVMH Groups revenuein emerging countries

X 2

As a % of total Group revenue 17 % 25 %

2 bil.

4 bil.


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A strong presence of LVMH in emerging countries

41%

44%

4%

5%

6%

Greater China

Other Asian countries

Middle East

Latin America

Central and EasternEurope

LVMH store networkin emerging countries445 stores at end 2007

Exceptional ability of LVMHto attract customers of all origins

DEVELOPMENT IN EMERGING COUNTRIES

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Excellent growth outlook for LVMH

Buoyant macroeconomic environments

Increasing appeal of luxury productsto clientele from emerging countries

Pioneering expansion strategy of LVMH,

adapted to local culture and context Powerful and strong visibility of our brands

Talented teams

LVMH well positioned to fully benefitfrom development in emerging countries

DEVELOPMENT IN EMERGING COUNTRIES


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Joint Auditors reportsto the AnnualShareholders Meeting


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Reports on the Financial Statements

Opinion on consolidated and parent companyfinancial statements () true and fair view of the financial position of the parent

company and the Group () and the results of their operationsfor the period ()

(1st and 2nd resolutions)

28

Special Report on Related Party Transactions

Agreements authorized during the year Amendment to the service agreement entered into

with the company Groupe Arnault SAS

Agreements authorized in previous years havinga continuing effect during the year

(3rd resolution)


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Other Special Reports

Authorization to reduce the share capital No matters to report on the reasons and conditions thereof

Authorization to grant existing or future shares for noconsideration to employees and company officers No matters to report on the proposed methods

(11th and 12th resolutions)

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Authorization to issue shares and marketable securitieswith cancellation of preferential subscription rights

No matters to report on the proposed methods subject to laterexamination of issue terms

Advice on cancellation of preferential subscription rights will begiven at the time of the issue price setting

Additional report on the conditions when the transaction takesplace

(13th and 14th resolutions)


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Authorization to increase the share capital withcancellation of preferential subscription rights reservedfor employees members of a company savings scheme

No matters to report on the proposed methods subject to laterexamination of issue terms

Advice on cancellation of preferential subscription rights will begiven at the time of the issue price setting

Additional report on the conditions when the transaction takesplace

(15th resolution)

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