THE BVLGARI GROUP THE BVLGARI GROUP

First First Quarter 200Quarter 20044

Rome, 13 May 2004

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FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2004 Q1 2004

Eur mios. Q12004

Q12003

DELTAQ1 04/03

REVENUES - REPORTED

REVENUES – AT CONST.FX

160.3 160.6 -0.2%

+6.0%

GROSS PROFIT 100.3 97.8* +2.5%

EBIT 18.9 16.2 +16.7%

NET PROFIT 13.5 11.4 +18.3%

*restated due to inclusion of manufacturing costs in COGS during 2003

GROUPP/L - EXTRACT

Q1 2004MEUR

Q1 2003MEUR

% GROWTHQ1 2004/ Q1 2003

% ON REVENUESQ1 2004

REVENUES 160.3 160.6 -0.2% 100%

GROSS MARGIN

100.3 97.8* +2.5% 62.5%

OPERAT.EXPEX ADV.&PROM

65.5 67.6 -3.1% 40.9%

ADV. AND PROMOTION

15.9 13.9 +14.1% 9.9%

EBIT 18.9 16.2 +16.7% 11.8%

NON OPERAT.EXPENSES

1.7 3.2 -47.1% 1.1%

PROFIT BEFORE TAXES

17.2 13.0 +32.7% 10.7%

TAXES 3.7 1.6 +140% 2.3%

NET PROFIT 13.5 11.4 +18.3% 8.4%

FINANCIAL HIGHLIGHTS Q1 2004FINANCIAL HIGHLIGHTS Q1 2004DETAILSDETAILS

% ON REVENUESQ1 2003

100%

60.9%

42.1%

8.7%

10.1%

2%

8.1%

1.0%

7.1%

*restated due to inclusion of manufacturing costs in COGS during 2003

PRODUCTCATEGORY

Q1 2004 VARIATION % 2004/2003

FIRST QUARTER

REPORTED AT COMP.FX

MEUR % ON TOTALSALES

% GROWTH

JEWELRY 66.2 41.3% +7.6% +13.8%

WATCHES 49.4 30.8% -6.1% +0.5%

PERFUMES 28.4 17.7% +2.9% +10.1%

ACCESSORIES

13.7 8.5% -7.4% -2.1%

ROYALTIESAND OTHER

2.6 1.7% -35.8% N/A

TOTAL 160.3 100% -0.2% +6.0%

REVENUES – Q1 2004 REVENUES – Q1 2004 DETAILS BY PRODUCT LINE

GEOGRAPHICALAREA

Q1 2004 VARIATION % 2004/2003

FIRST QUARTER

REPORTED AT COMP.FX

MEUR % ON TOTALSALES

% GROWTH

ITALY 17.8 11.1% -22.7% -

EUROPEW/OUT ITALY

38.2 23.8% -5.0% -

AMERICAS 23.4 14.6% +5.9% +21.6%

JAPAN 39.9 24.9% +16.7% +23.1%

FAR EAST 29.8 18.6% -5.0% +4.8%

MIDDLE EASTAND OTHER

11.2 7.0% +15.2% N/A

TOTAL 160.3 100% -0.2% +6.0%

REVENUES – Q1 2004 REVENUES – Q1 2004 DETAILS BY GEOGRAPHICAL AREA

GROSS MARGINGROSS MARGIN

60.2%

62.5%

60.9%

Q1 2002 Q1 2003 Q1 2004

% WEIGHOn total revenues

Q1 2002

JEWELS 39.6%

WATCHES 33.4%

PERFUMES 19.4%

ACCESSOR.

5.2%

ROYA/OTH 2.4%

TOTAL 100%

% WEIGHOn totalrevenues

Q1 2003

JEWELS 38.3%

WATCHES 32.7%

PERFUMES 17.2%

ACCESSOR.

9.2%

ROYA/OTH 2.6%

TOTAL 100%

% WEIGHOn total revenues

Q1 2004

JEWELS 41.3%

WATCHES 30.8%

PERFUMES 17.7%

ACCESSOR.

8.5%

ROYA/OTH 1.7%

TOTAL 100%

FX RATESMarketevolution

Q1 2004AVERAGEFX RATE

Q1 2003AVERAGEFX RATE

Q1 4/Q1 03

AVERAGEEUR

APPREC.

EUR/USD 1.2507 1.0732 +16.5%

EUR/JPY 134.02 127.60 +5%

ADVERTISING AND PROMOTIONADVERTISING AND PROMOTIONINVESTEMENTS IN M.EURO AND AS A % ON REVENUES

1924

3350

61

82

10276

81

1995 1996 1997 1998 1999 2000 2001 2002 2003

12 14 16

Q1 2002 Q1 2003 Q1 2004

7.7% 8.7% 9.9%

On tot.revenues

10.6%9.9%

+14%

NET WORKING CAPITALNET WORKING CAPITAL

Me euro Q1 02 Q1 03 Q1 04

RECEIV. 99 110 112

INVENTORY

557 492 464

PAYABL. -77 -97 -105

TOT NWC 579 505 471

487

-301

552

-159

594

-73

-320

-120

80

280

480

680

Q1 2002 Q1 2003 Q1 2004

net equity net cash

BALANCE SHEET HIGHLIGHTSBALANCE SHEET HIGHLIGHTSM.EUROM.EURO

GEARING62% 29% 12%

BVLGARI 2004 – PRODUCT LAUNCHES

JEWELRY WATCHES PERFUMES ACCESSORIES

NEW PRODUCT LAUNCHES

ASTRALE HIGH JEWELLERY MARRYME

BVLGARI: ERGON

GERALD GENTA: OCTO

LINE EXTENSIONS,

NEW VERSIONS

Bvlgari-Bvlgari pendants Charms New cufflinks Bzero1 color Bzero1 pink gold

BB - TOURBILLON NEW RETTANGOLO NEW SOLOTEMPO Bzero1 DIAMS DIAG.PROF. -REGATTA DIAG. PROF. - GMT FLYBACK NEW DIAGONO ALUM.

NEW DANIEL ROTH MODELS

OMNIA BATH LINE

St.Valentine, Spring, seasonal kits and flankers

New S/S and F/W Colors forBzero1, Décolleté,Geometrica handbags

New silk and eyewear collections

ADVERTISINGCAMPAIGNS

THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND

ASTRALE CAMPAIGN Mirror campaign Bzero1 campaigns

ERGON CAMPAIGN OCTO CAMPAIGN Mirror campaign Bzero1 campaigns

New perf.campaigns New eyewear campaign

BVLGARI 2003 – PRODUCTION

ACTIVITIES VERTICAL INTEGRATION

RE-ENGINEERINGBOTH ON PRODUCTS AND PROCESSES

ACQUISITION CROVA 50% ACQUISITION

INTERNAL JEWELRYATELIER

CAPACITY IMPROVEMENT

WATCHMAKING FIRST INTERNALLY PRODUCED MOVEMENTS FOR BVLGARI GROUPGRANDE COMPLICATION WATCHES

DIAMOND SOURCING

PARTNERSHIP WITH LEVIEV GROUP TO SECURE TO BVLGARI

DIAMONDS OF EXTRAORDINARY QUALITY AT HIGHLY COMPETITIVE PRICES

2003 – NETWORK EVOLUTION

As of end Q1 2004

End 2003 NEW

DOS BOUTIQUES 100 928 CORNERS

FORMERLY RUN BY A JAPANESE PARTNER ON A COMMISSION

BASIS AND CLASSIFIED UNDER THE

WHOLESALE STORES CATEGORY

AND ARE NOW CLASSIFIED UNDER

DIRECTLY OPERATED STORES

NO NEW STORES HAVE BEEN OPENED DURING Q1

FRANCHISEES 35 35

TOTAL STORES 135 127

TRAVEL RETAILAND WHOLESALE STORES (POINTS OF SALE)

47 55

TOTAL STORES+P.O.S.

182 182

BVLGARI 2004 – PR AND PROMOTIONTYPOLOGY EVENTS DETAILS

CORPORATE PR ACTIVITIES

PRODUCT LAUNCHES

GRAND OPENINGS

EXHIBITIONS

ASTRALE HIGH JEWELLERY LAUNCH – ST.PETERSBURG + LONDON, SINGAPORE – more to come ASTRALE AND ERGON LAUNCH – BASEL FAIR, APRIL 15TH

BOUTIQUES: IN THE PIPELINEBVLGARI HOTEL – MILANO, MAY 20TH

THE BVLGARI VINTAGE COLLECTION - MIAMIBVLGARI INTRODUCES PETER FALK’S ARTWORKS - ROME VIA CONDOTTI

EDITORIALSAWARDS

IN THE PIPELINE

MOVIES/TVPRODUCT PLACEMENTS

MOVIES

ORIGINAL SERIES

SOMETHING’S GOTTA GIVEIN THE PIPELINE

SEX AND THE CITY

VIPENDORSEMENTS& AWARDS 2004

RED CARPET

OSCARS/ACADEMY

GRAMMY

DAVID DI DONATELLOCANNES FILM FESTIVAL

OTHERS

NICOLE KIDMAN, JOHNNY DEPP, JENNIFER GARNER, AMBER VALLETTA, DJIMON HOUNSOU

KYLIE MINOGUE

EMANUELLE BEART, ANOUK AIMEE – BVLGARI CREATES THE “DAVID PLAQUE”PEDRO ALMODOVAR …

IN THE PIPELINE

FOR MORE INFORMATION PLEASE SEE WWW.BULGARI.COM

QUESTIONS & ANSWERS

ANNEX

FOR MORE QUALITATIVE INFORMATION ON

ASTRALE

JEWELRY COLLECTION

PLEASE SEE

http://www.bulgari.com

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