Page 1

Annual Report 2012


Table of Contents Group Mission & Value

1

Letter from CEO

2

Wines & Spirits

4

Fashion & Leather Goods

8

Jewelry & Cosmetics

12

Watch & Perfume

16

Financial Report

20

Outlook

24


Group Mission & Value

The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy. Aworld leader in luxury, LVMH Moët Hennessy - Louis Vuitton possesses a unique portfolio of over 60 prestigious brands.

Today, almost 100,000 employees, 79% of whom are based outside France, share the Group’s values. Besides its community action for human development - for example LVMH House and the LVMH-ESSEC Chair - LVMH carries out a number of initiatives through its commitment to protecting the environment. Faithful to its vocation as a patron, the Group is also involved in culture and heritage, humanitarian action, education and supporting young artists and designers.

1


CEO: Bernard Arnault 2


Letter from

CEO

LVMH’s excellent performance in 2012 once again highlights the power of our brands and the appeal of our products. Our Group’s results prove, if proof were in fact needed, that the quest for exceptionally high-quality products, the desire for authenticity and durability, the pleasure of being treated as an exceptional customer in an exceptional environment – all of these asirations that LVMH aims to fulfill – assume a more prominent role than ever in periods of uncertainty. This year we once again recruited many employees in all professions and we are delighted to have created numerous new positions for craftsmen and craftswomen at our workshops in France and elsewhere in

Europe. As we keep a close watch on the current economic volatility in Europe, LVMH will remain true to its values, managing the businesses with a steady hand and continuing to invest wisely. Large-scale projects are taking shape and are being launched across Group, so as to ensure that profitable growth remains here to stay excellence.

3


“

e v i t a e t e r a c v Be inno d n a

“ 4


Wines & Spirits The LVMH Wines & Spirits business group focuses its growth on the high-end market segments of the market. The world leader in champagne, LVMH also produces still and sparkling wines from the world’s most famous wine-growing regions. The Group is also the world leader in cognac with Hennessy and is expanding its presence in the luxury spirits segment in addition to its historical business. The portfolio of brands is served by a powerful international distribution network.

5


Revenue

(EUR millions)

2009

2010

2011

2012

2,253

2,783

3,251

3,543

The excellence of Wines and Spirits’ products together with the ambition and experience of its people will enable the business group to continue to grow profitably and strengthen LVMH’s leadership in the world of luxury wines and spirits. Wines and Spirits achieved 10% organic revenue growth in 2011. The business group’s profit from recurring operations rose 18%

6

The excellence of Wines and Spirits’ products together with the ambition and experience of its people will enable the business group to continue to grow profitably and strengthen LVMH’s leadership in the world of luxury wines and spirits. Wines and Spirits achieved 10% organic revenue growth in 2011. The business group’s profit from recurring operations rose 18%


Revenue by Geographic Region of Delivery (EUR millions)

The excellence of Wines and Spirits’ products together with the ambition and experience of its people will enable the business group to continue to grow profitably and strengthen LVMH’s leadership in the world of luxury wines and spirits. Wines and Spirits achieved 10% organic revenue growth in 2011. The business group’s profit from recurring operations rose 18%

The excellence of Wines and Spirits’ products together with the ambition and experience of its people will enable the business group to continue to grow profitably and strengthen LVMH’s leadership in the world.

7


Fashion & Leather Goods Louis Vuitton, Fendi, Donna Karan, Loewe, Marc Jacobs, and as Céline, Kenzo, Givenchy, Thomas Pink, Pucci, Berluti, and also Rossimoda and Nowness are the brands that form the Fashion and Leather Goods business group. This outstanding group of brands from both sides of the Atlantic has 1,246 stores throughout the world. LVMH supports growth of these brands by many providing them with shared resources, while at the same time respecting their identity and their creative positioning as well.

8

Aim for product excellence


9


Revenue

2009

6,124

(EUR millions)

2010

6,302

Louis Vuitton will continue on the path of innovation in 2012, accentuating its high-end image, reinforcing the presence of leather in its collections, and introducing many personalization options. The brand will also be expanding its presence to new cities in China and Brazil. Stores will

10

2011

7,551

2012

8,712

also be inaugurated in new countries for the brand, such as Barbados and Kazakhstan. A boutique dedicated to fine jewelry and jewelry artisan workshop will be opened in Paris on the legendary Place Vend么me. Louis Vuitton will continue on the path of innovation in 2012, accentuating its high-end image, reinforcing the presence of leather in its collections, and introducing many personalization options. Louis Vuitton will continue on the path of innovation in 2012, accentuating its high-end image, as well reinforcing the presence of leather in its collection options.


Revenue by Geographic Region of Delivery

(EUR millions)

Louis Vuitton will continue on the path of innovation in 2012, accentuating its high-end image, reinforcing the presence of leather in its collections, and introducing many personalization options. The brand will also be expanding its presence to new cities in China and Brazil. Stores will also be in new countries for the brand, such as Barbados and as well. Also boutique dedicated to fine jewelry and a jewelry as shop will be opened in Paris on the legendary Place Vend么me Louis Vuittion will continune on the path in Louis Vuitton Paris.

11


“oBuor lster the

i b r pass ands w iona te de t

12


“

ima ge o with f term inat ion

Perfume & Cosmetic LVMH, a major player in the perfumes, make-up and skincare sector, relies primarily on a portfolio of brands representing French companies with an international presence: Christian Dior, Guerlain, Givenchy and Kenzo. The Group also supports the ment of high-potential brands: Benefit and Fresh, two growing American brands; Acqua di Parma, whose perfumes symbolize Italian elegance; Parfums Loewe, one of the leaders in the Spanish market; and Make Up For Ever, a firm favorite of professional make-up artists which recorded outstanding growth by opening up to the general public. The recently created Fendi perfumes round out this business group.

13


Revenue

(EUR millions)

2012 2009

2,293

2010

2,741

The business group is once again aiming to increase market share by maintaining an ambitious strategy of innovation and advertising investments. Parfums Christian Dior will continue to assert its position in high perfumery by strengthening the star product lines and investing heavily in advertising. The new perfume ambassadors and close association with the “Haute Couture” will further enhance the brand’s appeal.

14

2011

3,016

3,195

LVMH, a major player in the perfumes, make-up and skincare sector, relies primarily on a portfolio of brands representing French companies with an international presence: Christian Dior, Guerlain, Givenchy and Kenzo. The Group also supports the development of high-potential brands: Benefit and Fresh, two rapidly-growing American brands; Acqua di Parma, whose perfumes symbolize Italian elegance; Parfums Loewe.


Revenue by Geographic Region of Delivery

(EUR millions)

OTHER 16%

JAPAN 6%

EUROPE 37%

FRANCE 8%

ASIA 22%

The business group is once again aiming to increase market share by maintaining an ambitious strategy of innovation and advertising investments. Parfums Christian Dior will continue to assert its position in high perfumery by strengthening the star product lines and investing heavily in advertising. The new perfume ambassadors and close association with the “Haute Couture” will further enhance the brand’s appeal.

USA 18%

Parfums Christian Dior will continue to assert its position in high perfumery by strengthening the star product lines and investing heavily in advertising by strength the star products.

15


Watches & Jewelry The most recent of the LVMH business groups holds a portfolio of luxury brands with highly complementary market positions. This business group benefits in particular from TAG Heuer’s stature as the world leader in high-precision chronographs and from the solid vitality of the Hublot brand. The business group also relies on the watchmaking expertise of Zenith, a member of the select group of true Swiss Manufactures, the and transition to high-end products of Dior timepieces the creativity and productivity of the jewelry collections from Fred and De Beers. In 2011, the business was expanded with the talent as well as the international and diversified aspect of the Italian Bulgari brand. The name recognition of these brands and the vitality of their iconic collections make our one of the most dynamic groups in the market and diversifed aspect of the Italian Bulgari brand.

16

Act as entrepreneurs


17


Revenue

(EUR millions)

2009

2010

2011

2012

713

764

985

1,949

The most recent of the LVMH business groups holds a portfolio of luxury brands with highly complementary market positions. This business group benefits in particular from TAG

18

Heuer’s stature as the world leader in high-precision chronographs and from the solid vitality of the Hublot brand. The business group also relies on the watchmaking expertise of Zenith, a member of the select group of true Swiss Manufactures, the development and transition to high-end products of Dior timepieces and the creativity and productivity of the jewelry collections from Chaumet, Fred and De Beers. In 2011, the business was expanded with the talent as well as dicreativity as well.


Revenue by Geographic Region of Delivery

(EUR millions)

N PA

JA 6%

FRA

NCE

R THE

O

ASIA 26%

8%

15%

USA 23%

EUROPE 22%

The favorable trends noted in the final months of the year, within a worsening economic environment, point to encouraging prospects for 2013. All of th Watches and Jewelry brands plan to work on reinforcing their image and visibility in the most promising markets by maintaining the appropriate level of marketing investments. They will also strive to continue expanding their retail networks, particularly in Asia, with a special focus on China. All of the brands will continue cost controls.

19


20


“

“

Strive to be the best in all we do Financial Report

In a global market experiencing strong growth but an uncertain economic environment in Europe, 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. The strategy of focusing on quality across the entire product range, combined with the dynamism and unparalleled creativity of LVMH teams, will enable the Group to reinforce, once again in 2012, its global leadership position in luxury goods.

21


Financial Report (EUR millions, except for earnings per share)

Dec. 31, 2012

June 30, 2012

Dec. 31, 2011

12,966

23,535

10,393

(4,535)

(2,563)

(7,246)

32,353

52,246

12,546

Marketing and selling expenses

(6,456)

(3,356)

(256)

General and administrative expenses

(4,535)

(535)

(7,357)

Profit from recurring operations

64,143

42,567

32,147

(8,463)

(134)

(7,545)

87,353

14,254

53,235

Cost of net financial debt

(3,268)

(7,234)

(8,474)

Other financial income and expenses

(4,235)

(8,646)

,463)

65,245

12,348

53,245

(1,234)

(2,365)

(4,970)

(343)

(535)

(7,556)

65,545

34,456

12,966

Minority interests

(7,523)

(5,553)

(4,535)

Basic Group share of net earnings per share (EUR)

7,356

21,345

8,353

4 9 8 ,706,626 4

4 88,769,286

4 79,265,976

Revenue Cost of Sales

Gross margin

Other operating income and expenses

Operating profit

Net financial income (expense) Income taxes Income (loss) from investments in associates

Net profit before minority interests

Number of shares on which the calculation is based

22


Store Network Europe

883Stores

United States 621 Stores

France

390 Stores

Japan

380 Stores

Asia

683 Stores

Other Market 165 Stores

23


24


Outlook We declare that, to the best of our knowledge, the condensed interim consolidated financial statements have been prepared in accordance with applicable accounting standards and provide a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company and of all consolidated companies, and that the interim management report presented on page 6 gives a true and fair picture of the significant events during the first six months of the fiscal year and their impact on the financial statements, of the main related party transactions as well a as a description of the main risks and uncertainties for the remaining six months of the fiscal year as well as a description of LVMH. A coherent universe of men and women passionate about their profession and driven by the desire to innovate and achieve. An unrivalled group of powerfully evocative brands and great names that are synonymous with the history of luxury. A remarkable economic success story with nearly 98,000 employees worldwide and global leadership in the manufacture and distribution of luxury goods. A global vision dedicated to serving the needs of every customer. The successful marriage of cultures grounded in tradition and elegance with the most advanced marketing, industrial organization as well as and management techniques industrial organization. We declare that, to the best of our knowledge, the condensed interim consolidated financial statements have been prepared in accordance with applicable accounting standards and provide a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company and of all consolidated companies, and that the interim management report presented on page 6 gives a true and fair picture of the significant events during the first six months of the risks and uncertainties for the remaining six months of the fiscal year.

25


Annual Report 2012 LVMH Moët Hennessy Louis Vuitton 22, avenue Montaigne 75008 PARIS FRANCE Tél. : 33 (0)1 44 13 22 22 Fax : 33 (0)1 44 13 22 23

LVMH  
LVMH  

LVMH Annual Report

Advertisement