Louis Vuitton 2002 Annual Report Download

Download and view the complete annual report

Please find the complete 2002 Louis Vuitton annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

LVMH
PASSION ATE ABOUT
CREATIVITY
2002
laying the foundations
for long-term prosperity
by Bernard Arnault
SUSTAINABLE
DEVELOPM ENT
meeting the challenge
with confidence
and responsibility
TRADES
strong growth
of star brands,
increase
in market share
INNOVATION
research and creativity
enhance the successes
of the Group.
ANNUAL
REPORT
2002

Table of contents

  • Page 1
    ... 2002 laying the foundations for long-term prosperity by Bernard Arnault SUSTA INA BLE DEVELOPM ENT meeting the challenge with confidence and responsibility TRA DES strong growth of star brands, increase in market share INNOVATION research and creativity enhance the successes of the Group...

  • Page 2

  • Page 3
    ... D GE N E RAL M AN AGE M E N T CORPORATE GOV E RN AN CE TH E LV M H SH ARE SH ARE H OLDE R WOMEN PASSIONATE ABOUT THEIR BUSINESS AND DRI VE N BY THE DE S I RE TO I NNOVATE AND 08 09 10 12 ACHIE VE . AN UNRIVALLE D GROUP OF P OWE RF ULLY E VOCATI VE BRANDS AND GRE AT NAME S THAT ARE S YNONYMOUS...

  • Page 4
    .... Louis Vuitton, Moët & Chandon, Veuve Clicquot, Hennessy , and Christian Dior Parfums are growing in terms both of sales and even more, profitability, winning new market share. In an activity launched by LVMH more recently , but with a long-term perspective, our brands of watches and jewelry...

  • Page 5
    ... to deploy the organic growth strategy, which brought us results in 2002 and increased our positions across all areas of operation. While still carrying out the sale of non-strategic assets, we will maintain strict management focus, enabling us to reinvest the cost savings achieved in the driving...

  • Page 6
    ...and t angible long-t erm asset s. INCOM E FROM OPERATIONS BY BUSINESS GROUP (EUR million) Wines a nd Spirits Fa shion a nd Lea ther Goods Perfumes a nd Cosmetics Wa ... 95% 79% 2002 8,842 73% 66% * Net of LVM H shares not allocat ed t o opt ion plans and Bouygues shares at market value. * 2000 and...

  • Page 7
    ... 8 STORES â- 18 Fa shion a nd Lea ther Goods â- 1 Wa tches a nd Jew elry â- 9 Selective Reta iling NET SA LES BY GEOGRA PHIC REGION Ot her m ar k et s: 6 % Rest of Asia: 15% Japan: 15% Unit ed St at es: 27% Fr ance: 17% Rest of Eur ope: 20 % Ot her cur r encies: 16 % Dollar Hong Kong: 4 % Yen...

  • Page 8
    ...August 2002, the brand celebrated the opening of not only its seventh and largest "global store" in Japan, but a true "House of Louis Vuitton" on the Omotesando, Tokyo's trendiest shopping artery , the equivalent of avenue Montaigne in Paris. T he ten-level building houses the 900 square meter store...

  • Page 9
    ...a new segment in which the brand will make a permanent mark. A ll the models are designed and manufactured in Switzerland by the watchmaking shops of LVMH's Watches and Jewelry business group. An example of productive cooperation within the Group, Tambour was sold in about sixty Louis Vuitton stores...

  • Page 10
    ... G. Rohatyn A DVISORY BOA RD M EM BER Bernard Arnault Chairman & Chief Executive Officer Antonio Belloni Group Managing Director Nicolas Bazire Development & Acquisitions Ed Brennan Travel retail Yves Carcelle Fashion & L eather Goods Patrick Choël Perfumes & Cosmetics Pierre Godé Advisor to the...

  • Page 11
    ... Officer, the Chief Financial Officer, the Advisor to the Chairman, the Management Control Director, the Internal Audit Director, the Accounting Director, the Senior Vice President Taxes and the General Counsel. I n addition to reviewing the corporate and consolidated financial statements, the work...

  • Page 12
    ...in 2002, closing the year at 39.15 euros. LVM H's market capitalization stood at 19.2 billion euros at year-end, making it the eleventh largest on the Paris stock exchange. LVMH is included in the principal French and European indices used by fund managers: CAC 40, DJ EuroStoxx 50, MSCI Europe, FTSE...

  • Page 13
    CA PITA L STRUCTURE ( Euroclear France survey on bearer shares at year-end 2002) Tr easur y st ock 4 .9 % Fr ench inst it ut ional invest or s 19 .1% For eign inst it ut ional invest or s 17.5% including: Ar nault Gr oup 4 7.7% Unit ed Kingdom : Unit ed St at es: Ger m any: Swit zer land: 2.6 % ...

  • Page 14
    ... to use than before. It targets the financial community by providing complete and clear information in real time. T here are always titles such as the current stock price, schedules of important upcoming events (earnings announcements, shareholders' meetings, dividend payments), news releases and...

  • Page 15
    ...a culture that is the very essence of our products and business lines. T hey are part of a strategic continuity that has born fruit from the time Louis Vuitton and Moët Hennessy merged. Whether they work in spirits, perfumes, watchmaking, fashion or leather goods, each of the companies of our Group...

  • Page 16
    ... not, however, fully explain the success of LVMH. In fact, various industry players have posted unequal performances. LVMH, the undisputed leader, continues to widen its lead and win market share, even in difficult times. In a changing and competitive world, our Group's intrinsic stability and the...

  • Page 17
    ... within the Group-an appropriate strategy for each brand that respects its origins and its territory and a designer at one with his universe. T he power of the Group provides the management and organizations required plus the capital needed for a global expansion, particularly the structures to...

  • Page 18
    ... he Group's uncompromising demand for quality naturally extends beyond product design and manufacture. It is an element of the entire life cycle up to the time of purchase, and includes the aesthetics and sophistication of our shops and product displays, an atmosphere in which customers are welcomed...

  • Page 19
    ... of the famous Clicquot Box, was born in 2002. This original, clever traveler will be along on all impromptu trips and parties. marketing, distribution, organization, management, advertising, promotion, etc. require improvement and progress. T hus, one of the Group's core values is to encourage the...

  • Page 20
    ..., 11% of its net sales. Its advertising and promotional efforts supporting the new products are relayed by corporate communication and carefully targeted events. T hese are designed to express the brand's fundamental and eternal values, its symbolic capital. T he partnership of Louis Vuitton and Mo...

  • Page 21
    ... to great museum collections, encouraging contemporary design, and contributions to great national exhibits. In 2002, the Group supported the MatissePicasso exposition shown in the Grand Palais of Paris. V arious initiatives in favor of young people, both in France and around the world, are the...

  • Page 22
    ...share ideas and experiences, set objectives, draw up action plans, design training sessions and launch pilot projects. All LVMH employees can log onto the Environment Intranet. T his medium makes it easier to share environmental news, reports regulatory changes in real time, and offers a broad range...

  • Page 23
    ...with the publication of its first environmental report. Within the Group, the campaign took the form of approximately 5,700 hours spent in training and increasing employee awareness. T he environment is addressed in the module used to integrate new managers. T heir training also includes a fact book...

  • Page 24
    ... ENTA LLY FRIENDLY PRODUCTS A GROUP WHOSE BUSINESSES CULTIVA TE AN ART OF LIVING COULD NOT , OF COURSE, SURVIVE WITHOUT PROTECTING HEALTH AND BIODIVERSITY . EVERY DA Y , A T EVERY SITE, EVERY DECISION MUST INCLUDE THESE PRIORITIES. BUT WE MUST GO FURTHER-DESIGNING PACKAGING THA T NEITHER WASTES...

  • Page 25
    ... 56% The Group uses a broad range of packaging to market its products: - Wines and Spirits - bottles, boxes, caps...- Perfumes and Cosmetics - bottles, cases...- Fashion and L eather Goods - shopping bags, folders, cases...- Watches and Jewelry - packaging of cases and boxes...- Selective Retailing...

  • Page 26
    ... IT SETS FOR ITS PRODUCTION SITES, AS WELL AS THE PRESERVA TION OF LANDSCAPES AND ECOSYSTEMS. THIS APPROACH IS BEST ILLUSTRA TED BY THE FIRST CARBON ASSESSMENT CONDUCTED IN THE CHAMPAGNE REGION BY THE GROUP 'S COMPANIES IN 2002. SAVING WATER A ND ENERGY F or a long time, LVMH group companies have...

  • Page 27
    ... underground network from early 2001 to early 2002. Finding it was difficult since the system is over one hundred years old. The repairs resulted in a significant reduction in water use. 2002 WA STE RECOVERY TREND AT GUERLA IN'S PRODUCTION SITES ENERGY CONSUM PTION BY BUSINESS GROUP ( M W h) ( in...

  • Page 28
    ... landscape. Its newest site at Ducey in Normandy earned the 2002 award for the most beautiful metal construction project, a building materials category . T his honor was awarded for all the initiatives taken by Louis Vuitton at its production sites. de l'Environnement et de la Maîtrise de...

  • Page 29
    ...RTER STRATEGY OBJECTIVE A SSIGNED TO THE COM PA NY COM PA NY SECTOR Strictly comply with environmental regulations. Factor in regulatory changes and continue any required compliance efforts. Watches & Jewelry Wines & Spirits Perfumes & Cosmetics Fashion & Leather Goods Selective Retailing Fashion...

  • Page 30
    ... of young artists and designers are, for Group companies, opportunities to both identify and develop talent and to publicize the richness of each business line. A SSIST A ND TRA IN TOM ORROW'S DESIGNERS Since 1999, the Group has been sponsoring the International Festival of Fashion Arts in...

  • Page 31
    ... companies, its values, and its basic management principles. 9,800 employees received such training in 2002. A t the end of 1999, LVMH opened the LVMH House in London, a management and innovation center specifically dedicated to the professional development of Group executives. Each year, this new...

  • Page 32
    ... EVEN MORE NA TURAL COMING FROM A GROUP WHOSE MISSION IS TO PROMOTE AN " ART OF LIVING" AND A MESSAGE OF EXCELLENCE THROUGHOUT THE WORLD. A GROUP THAT CREATES A N EXCEPTIONA L NUM BER OF JOBS T hrough its policy of selling products that carry the label "made in France," a guarantee of quality and...

  • Page 33
    ... have also developed international training centers for sellers and product demonstrators. F inally , since 1999, LVMH has been a partner with the 2nd Chance Foundation whose mission is to bring technical and human support to persons experiencing financial difficulties. Marc Jacobs, designer of the...

  • Page 34
    ... to providing information to its employees. Its internal communication policy is organized around three major vectors: - To promote and encourage a top-down and bottom-up information process in each of the companies based on regular information meetings conducted by management, annual conventions...

  • Page 35
    ... in shops or department stores. OTHER INDICATORS BREA KDOWN OF FULL-TIM E A ND PA RT-TIM E WORKFORCE BY BUSINESS GROUP • Promot ions 48 675 7 916 Par t - t im e Full- t im e 448 technicians and foremen were promoted to management positions last year, while 457 labour and production workers...

  • Page 36
    ... FA SHION A ND LEATHER GOODS LVMH is building a round Louis Vuitton, the undisputed lea der in luxury bra nds, a group of bra nds present in haute couture, fa shion a nd luxury a ccessories. The Group is THE WORLD LEA DER in cha mpa gne a nd cogna c. LVMH ha s a lso developed high-end w ines from...

  • Page 37
    PERFUM ES A ND COSM ETICS In this business sector, LVMH ow ns some of the grea test na mes in French perfumes a nd is developing young cosmetics compa nies in Fra nce a nd the United Sta tes. WATCHES A ND JEWELRY The goa l of LVMH is to become a SELECTIVE RETA ILING The purpose of the Selective ...

  • Page 38

  • Page 39

  • Page 40
    ... A POWERFUL INTERNA TIONAL DISTRIBUTION NETWORK. THESE EMBLEMA TIC BRANDS, AMBASSADORS FOR LUXURY , MARKET THEIR EXCEPTIONAL PRODUCTS ALL OVER THE GLOBE, MAKING MOËT HENNESSY THE WORLD LEADER IN PRESTIGIOUS WINES AND SPIRITS. MOËT HENNESSY IS ALSO DEVELOPING HIGH-END SPARKLING AND STILL WINES FROM...

  • Page 41

  • Page 42
    N e t sale s fo r t h e W in e s an d Sp ir it s b u sin e ss gr o u p w e r e HIGHLIGHTS â- The Wines a nd Spirits business group posted a n increa se in opera ting ma rgin to 33% in 2002. Ca sh flow from opera tions rose sha rply for the second consecutive yea r. Sw itzerla nd, Asia a nd La tin...

  • Page 43
    ... continued weak economic conditions, the overall performance of the Moët Hennessy Wine and Spirits group, with improvement in all key indicators, was in line with the objectives set for 2002. A 7% increase in volumes sold confirmed the expected recovery . T he 2% increase in net sales was hurt by...

  • Page 44
    .... T he rebound in this market drove an 8% increase in sales. In the United Kingdom, the brands also benefited from the market's recovery and ended the year with strong growth. Results for the other major champagne importing countries were mixed. In Japan, the brands continued to grow , while in...

  • Page 45
    ...he marketing of the Mini Moët format with a full range of service articles and promotional events was one of these initiatives. T wo major campaigns sharply increased the brand's global potential in late 2002: the launching of a press and display advertising campaign in Europe and the United States...

  • Page 46
    ... Champagne House, continued to grow , setting an historic sales record in France, and boosting its position in its primary export markets with double-digit sales growth. T he House increased its advertising and promotional budgets over previous years for print advertising, new product initiatives...

  • Page 47
    ... with Henri Krug. T he year 2003 will also be directed toward the creation of value. It will be marked by efforts to develop in the most profitable markets, a policy to align world prices upward, and by increased spending on promotion and advertising. CHA NDON ESTATES Sales for Chandon Estates were...

  • Page 48
    ... Hennessy's operating profit and return on investment. HENNESSY FINE DE COGNA C - A SUCCESSFUL LA UNCH A ND A NEW HORIZON FOR GROWTH H ennessy introduced its new Fine de Cognac, in most European countries, backed by a major advertising campaign in France and Germany late in the year. Elegant...

  • Page 49
    ... to reach Hispanic consumers. T his momentum was sustained by the introduction of two new advertising campaigns at year end. T he expansion of Moët Hennessy's distribution network, in partnership with Diageo, will accelerate the brand's penetration in the United States in 2003. SA LES UP SHA RPLY...

  • Page 50

  • Page 51

  • Page 52
    ... of Louis V uit t on int o new business lines, such a s wa t ch m a king, where we ha ve considera ble pot ent ia l; new count ries for t he presence of luxur y bra nds, such a s China , or even Russia a nd India , where we ha ve just opened our first st ores; a nd, of course, t he successful growt...

  • Page 53

  • Page 54
    ...pa rticula rly in the fourth qua rter, Louis Vuitton a chieves a new sa les record in 2002, ga ins ma rket sha re a nd a ga in improves its profita bility. â- Louis Vuitton opens a new grow th segment w ith the la unch of its Tambour w a tch collection. N e t sale s fo r t h e Fash io n an d Le at...

  • Page 55
    ... fashion and leather goods market, Louis Vuitton, the group's star brand and the word leader in luxury goods, again succeeded in growing earnings and operating margin. The Poulbot bag from Céline, with its strong Parisian inspiration, will be one of the hit accessories of the 2003 summer season...

  • Page 56
    ... policy of innovation, its investments in advertising and promotional efforts, and the expansion of its retail network. A new Monogram collection of bags and leather goods designed by Marc Jacobs with Japanese artist Takashi Murakami, and backed by a strong advertising campaign, appeared in stores...

  • Page 57
    ... Céline's image continues to benefit from the design work of Michael Kors. T he brand is intensifying its strategy in leather goods, a very profitable segment where it continues to grow year after year. After the success of its new products in 2002, especially the event lines and the Boogie bag...

  • Page 58
    ... the considerable success of the Marc by Marc Jacobs line launched in September 2000. Marc Jacobs was named designer of the year in New York. T he brand confirmed its dynamic appeal in Japan, and opened a global store in Tokyo. T he development of a retail network in Asia, notably in Hong Kong, has...

  • Page 59
    ... unique style, its emblematic leather products and its unmatched expertise in furs. T his strategy has included reinforcing the quality of its retail network (84 stores end of 2002) with a very significant renovation program for the next two years. In addition, Fendi is also planning to open a free...

  • Page 60

  • Page 61

  • Page 62
    ..., A FRENCH BRAND THA T SPECIALIZES IN PROFESSIONAL MAKE-UP PRODUCTS. IN ADDITION, THE GROUP RECENTL Y BEGAN TO LICENSE THE PERFUMES OF DESIGNERS MICHAEL KORS, MARC J ACOBS AND KENNETH COLE IN THE UNITED STA TES. LVMH ALSO HOLDS A 50% EQUITY STAKE IN ITAL Y'S ACQUA DI PARMA. STRATEGY A ND OBJECTIVES...

  • Page 63
    ... the Fa shion a nd Lea ther Goods business group, joined Perfumes a nd Cosmetics in 2002. â- The first perfumes crea ted a nd sold under license for New Y ork designer Kenneth Cole w ere introduced in the United Sta tes la st a utumn. 83 BREA KDOWN OF NET SA LES BY PRODUCT CATEGORY NET SA LES BY...

  • Page 64
    ... Fashion and Leather Goods business group, joined Perfumes and Cosmetics in 2002, which strengthened our positions in Spain, where the brand is a leader in the selective market. In order to focus investments on its core and most profitable businesses, the group sold the American start-up companies...

  • Page 65
    ... fashion House, and renovated the décor for its sales counters in department stores. T he two initiatives will support the brand's international objectives. T he brand continued to enjoy brisk sales of its Flower perfume and the selective expansion of its Kenzoki line of care products. T he House...

  • Page 66

  • Page 67

  • Page 68
    ...u p LVMH ONLY RECENTLY INVESTED IN THE WATCHES AND JEWELRY SECTOR. CAN YOU GIVE US A PROGRESS REPORT ON THIS DIVISION? RECORDED GREATER THAN MARKET GROWTH IN 2002. HOW DO YOU EXPLAIN THIS? LVMH BRANDS TAG HEUER AND CHRISTIAN DIOR WATCHES ENTERED CHINA AND I NDIA. WAS THIS GOOD TIMING? PH. P.: The...

  • Page 69

  • Page 70
    ... a nd the success of the Tambour w a tch collection developed for Louis Vuitton. N e t sale s fo r LVMH 's b r an d s t o t ale d 5 4 0 m illio n e u r o s. â- The interna tiona l distribution netw ork for the TAG Heuer a nd Christia n Dior bra nds expa nded to China a nd India . â- The first...

  • Page 71
    ...26 31 I n 2002, the Watches and Jewelry business group expanded its sales and marketing support for its own brands. As a result, the LVMH brands reported 540 million euros in net sales, a 4% increase over 2001, despite a significant decline in the world market for luxury watches. In an unfavorable...

  • Page 72
    ... in market share in the United States and Japan and in other Asian countries plus Great Britain, Italy , France and Eastern Europe confirm the relevance of the strategic decisions made since TAG Heuer joined LVMH. In addition, the brand successfully opened its first stores in China and India in 2002...

  • Page 73
    ... materials used in the bands, and the colors of the dials are designed to harmonize with the couture collections. T he brand had significant advertising support in its priority markets with a campaign focused on the Riva Sparkling watch, a steel model with a very unique diamond setting designed by...

  • Page 74
    ... cases in the best stores, and implemented a major training program for its retailers. I n 2003, investments in the manufacturing plant will be continued in order to increase capacities and develop movements for the Zenith brand and for other LVMH Houses such as Louis Vuitton and TAG Heuer. EBEL...

  • Page 75

  • Page 76

  • Page 77
    ... as the brand's best sellers. I n 2003, Fred Paris plans to continue its growth by concentrating its efforts on its most buoyant markets-France, Japan and the United States. T he House will continue to add new models to its collections of rings and its Move One line of watches. A N N UA L REPORT...

  • Page 78
    ... Vinci. T hese two new creations earned high praise in the press, greatly increasing the visibility of Omas. DE BEERS LV A N EX TRAORDINA RY ENTRA NCE INTO THE WORLD OF JEWELRY T he joint venture formed by LVMH and diamond group De Beers opened its first shop on November 21, 2002 in London, at the...

  • Page 79
    A N N UA L REPORT 2 0 0 2 • 7 9

  • Page 80
    ...TED IN EUROPE, THE UNITED STA TES AND ASIA WHERE THEY OPERA TE IN TWO SEGMENTS: TRAVEL RETAIL (THE SALE OF LUXURY PRODUCTS TO INTERNA TIONAL TRAVELERS), WHICH IS THE BUSINESS OF DFS AND MIAMI CRUISELINE; AND THE SPECIALIZED SELECTIVE RETAILING FORMA TS REPRESENTED BY SEPHORA AND THE DEPARTMENT STORE...

  • Page 81
    ... tions a t the Selective Reta iling business group returned to the bla ck, ba sed on grow th a t both Sephora a nd Mia mi Cruiseline, plus the efforts of DFS w hich returned to opera ting brea k-even. â- Ea rly in 2003, DFS opened a new Ga lleria in Singa pore a nd a new loca tion a t the a irport...

  • Page 82
    ...restructure, cut costs, and optimize its product lines. T he 5% decline in total net sales for the Selective Retailing business group masks contrasting trends. T he travel retail business was penalized by the decline in tourism in 2002, while Sephora continued to grow in Europe and the United States...

  • Page 83
    ... of the Times Square store. Sephora exceeded its targets for improved income from operations in the United States. Sales at the sephora.com website rose steadily , and reported excellent results for the year-end holiday season. Sephora.com is far and away the largest American online beauty store. It...

  • Page 84
    ... department store in Paris by instituting a very rigorous product policy , careful service to its French and international customers, and dynamic and powerful promotional efforts. T o leverage its image as an exceptional store, Le Bon Marché opened up additional sales space to new luxury brands...

  • Page 85
    LVM H The consolidated financial statements presented in the following pages are abbreviated. CO N SO LIDATED FIN AN CIAL STATEMEN TS 2003

  • Page 86
    8 4 • A N N UA L REPORT 2 0 0 2

  • Page 87
    ...operating activities before changes in current assets and liabilities 16,294 6,316 481 20,734 6,704 1,051 23,192 7,031 1,214 23,832 6,901 919 21,417 7,070 1,518 (1) 1997, 1998 and 1999 figures have been adjusted to reflect the bonus share distribution of June 1999 (one new share for ten shares...

  • Page 88
    ... ENTS CONSOLIDATED BA LA NCE SHEET AT 3 1 DECEM BER 2 0 0 2 ASSETS (EUR millions) 2002 2001 2000 C URRENT ASSETS Cash and cash equivalents Short-term investments Treasury shares Trade accounts receivable Deferred income taxes Inventories Prepaid expenses and other current assets 812 60 544...

  • Page 89
    LIABILITIES AND STOCKHOLDERS' EQUITY (EUR millions) 2002 2001 2000 C URRENT LIABILITIES Short-term borrowings Accounts payable Accrued expenses and other current liabilities Income taxes Current portion of long-term debt 2,304 1,429 2,533 61 274 6,601 3,765 1,401 2,622 238 8,026 5,333 1,305...

  • Page 90
    ... euros at year-end 2001. T he change reflects brisk fourth quarter sales and successful inventory controls in most of the Group's activities despite the gradual reconstitution of Louis Vuitton inventories. â- After deducting the market value of its equity stake in Bouygues and treasury shares not...

  • Page 91
    ...581 (4,221) Cost of sales GROSS MARGIN Marketing and selling expenses General and administrative expenses 8,130 (4,705) (1,417) 2,008 7,575 (4,568) (1,447) 1 560 7,360 (4,206) (1,195) 1,959 INCOME F ROM OPERATIONS Financial expense - net Dividends from unconsolidated investments Other income...

  • Page 92
    ... including the integration of Loewe perfumes in 2002. T his increase reflects both the success of recent new products and expanded sales in all markets, particularly in Europe. Only the United States reported a decline in sales. Watches and Jewelry net sales rose 1%, or 3% at constant exchange rates...

  • Page 93
    ... previous year look worse. Perfumes and Cosmetics reported a 8% increase in income from operations to 161 million euros. T he upward trend, which occurred mainly in the second half, confirms the success of the new products launched over this period. T he Watches and Jewelry business group reported...

  • Page 94
    ...at end of year ( net of bank overdrafts) Non cash transactions: - increase of capital through conversion of debt - lease financing operations - 3 - 16 - 7 T he statement of cash flows shows the change in cash (net of bank overdrafts) and cash equivalents consisting of short-term investments that...

  • Page 95
    ... the sale of real estate assets as well as shares in Fininfo, Grand Marnier and Gant. â- T he Group's net cash provided by operating activities before changes in current assets and liabilities amounted to 1,518 million euros in 2002, a 65% increase over the 919 million euros recorded the year...

  • Page 96
    ...) Number of shares Capital Additional paind-in & reserves Cumulative translation adjustement Total AS OF DECEMBER 31, 2001 Final dividend paid on 2001 income and related taxation Long term investment in LVMH shares Employee stock option plans Net income Interim dividend paid on 2002 income...

  • Page 97
    LVM H HOLDI NGS 96 BUSI NESS GROUPS W I NES AND SPI RI TS FASHI ON AND LEATHER GOODS PERFUM ES AND COSM ETI CS WATCHES AND JEW ELRY SELECTI VE RETAI LI NG 96 97 100 102 103 104 OTHER ACTI VI TI ES WO RLDWIDE

  • Page 98
    ... 35 694 03 34 L VM H M OËT-HENNESSY LOUI S VUI TTON I nc. 19 East 57th Street - New York, NY 10022 34/ F., Dorset House Taikoo Place 979 King's Road - Hong Kong Tel.: + 852 2968 9288 - Fax: + 852 2968 9222 M OËT-HENNESSY 22, avenue Montaigne - 75008 Paris - France Tel.: + 33 1 44 13 22 22 - Fax...

  • Page 99
    ...- France Tel.: + 331 55 80 32 00 - Fax: + 331 55 80 33 99 SOCI ÉTÉ DES ATELI ERS LOUI S VUI TTON 12 Clifford Street - London W1X 1RB - United Kingdom Tel.: + 44 207 399 4000 - Fax: + 44 207 399 4001 L VM H FASHI ON GROUP I TALI A S.P .A. 2201 Dorset House - 979 King's Road Quarry Bay - Hong Kong...

  • Page 100
    ... West 7th Floor - 1 -1 -1 Minami Aoyama Minato-Ku - Tokyo 107- Japan Tel.: + 81 3 34 78 36 94 - Fax: + 81 3 34 78 30 24 LOUI S VUI TTON KOREA LTD Louis Vuitton Building, 2nd floor - 99-18 Chungdam-dong, 12 Clifford Street Londres W1X 1RB - United Kingdom Tel.: + 44 171 399 4010 - Fax: + 44 171 399...

  • Page 101
    ... W1T 1HE London - United Kingdom Tel.: + 44 207 907 3800 - Fax: + 44 207 907 3899 DONNA KARAN Holden House - 3rd Floor - C/LVMH Fashion Group Italia Via Tommaso Grossi, 2 - 20121 Milan - Italy Tel.: + 39 02 89 01 35 62 - Fax: + 39 02 87 80 77 CELI NE PRODUCTI ON S. R. L. T T S Building, 7F - 6-12...

  • Page 102
    ...Dorset House - 979 King's Road - Hong Kong Tel.: + 852 2968 1338 - Fax: + 852 2968 1411 875 Waimanu St 108 - Honolulu, Hawaii 96813 Tel.: + 1 808 596 2288 - Fax: + 1 808 5931 996 PERFUM ES A ND COSM ETICS BUSINESS GROUP L VM H PARFUM S ET COSM ÉTI QUES 22, avenue Montaigne - 75008 Paris - France...

  • Page 103
    ... Tel.: + 41 22 544 1616 - Fax: + 41 22 544 1600 KENZO PARFUM S C/O GUERLAI N PARI S GmbH (& G.W .H.C. Ltd Hong Kong Branch) 34th Floor Dorset House - Taikoo Place 979 King's Road - Quarry Bay - Hong Kong Tel.: + 852 2524 6129 - Fax: + 852 2810 5341 GUERLAI N (M ALAYSI A) (M ) SDN BHD Suite...

  • Page 104
    ... L VM H WATCH & JEWELRY TAI WAN LI M I TED TAG Heuer Group TAG HEUER SA Watches & Jewelry Multi-brand Subsidiaries L VM H M ONTRES & JOAI LLERI E FRANCE SA 28 rue Feydeau - 75002 Paris - France Tel.: + 33 1 55 80 09 00 - Fax: + 33 1 55 80 09 01 L VMH WA TCH & JEWELRY (UK) LI M I TED Times Sq. 14...

  • Page 105
    ... Group SEPHORA EUROPE 24, rue de Sèvres - 75007 Paris - France Tel.: + 33 1 44 39 80 00 - Fax: + 33 1 44 39 80 50 FRANCK & FI LS 80, rue de Passy - 75016 Paris - France Tel.: + 33 1 44 14 38 00 - Fax: + 33 1 44 14 38 99 SEGEP P .O. Box 71843 Kowloon Central Post Office - Kowloon - Hong Kong...

  • Page 106
    ...Media Group D.I GROUP SI D PRESSE / DEFI S / SALONS DES ENTREPRENEURS Other companies ETUDE TAJAN 48, rue Notre Dame des Victoires 75095 Paris Cedex 02 - France Tel.: + 33 1 44 88 46 46 - Fax: + 33 1 44 88 46 41 TRI BUNE DESFOSSES 48, rue Notre Dame des Victoires 75095 Paris cedex 02 - France Tel...

  • Page 107
    ...êne, Peter Knaup, Franck Dieleman, Guy Marineau, Ludwig Bonnet /Java Fashion Press Agency , Richard Burbridge, DR, Photo archives LVMH and Group Companies. Design and production communication 41, rue Camille Pelletan - 92300 Levallois-Perret - France - Tel.: 33 1 49 64 64 64 ISSN : 1292-3737

  • Page 108