Louis Vuitton 2002 Annual Report Download - page 12

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10 • ANNUAL REPORT 2002
PASSIONATE ABOUT CREATIVITY THE LVM H SHARE
THE LVM H SHARE HOLDS UP WELL
IN DECLINING FINANCIAL M ARKETS
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
0
15
30
45
60
75
90
DNOSAJJMAMFJ
2002
Trading volume LVMH CAC 40 Index Average monthly volume
LVM H is one of the five French companies
included in the three main American, French and
European ethical indices.
A PROGRESSING DIVIDEND
(In euros)
2002 2001 2000 1999 1998
Net dividend*
0.80 0.75 0.75 0.68 0.62
Dividend
including tax credit*
1.20 1.125 1.125 1.02 0.93
Payout rate
48% 110% 43% 46% 58%
*Adjusted for a five-for-one stock split in July 2000 and a one-for-ten bonus allotment
in June 1999.
AN APPRECIABLE YIELD FOR
THE SHAREHOLDER
An LVMH shareholder who invested 1,000 euros
on January 1, 1998 would have 1,513 euros
at December 31, 2002 factoring in a one-for-ten
stock allotment in June 1999 and reinvested
dividends. His initial investment would, there-
fore, have grown an average 8.6% a year.
STOCK BUY-BACK PROGRAM
LVM H has implemented a stock buy-back
plan to buy back up to 10% of its capital.
This plan was approved at the Shareholders’
Meeting of May 15, 2002 and was registered with
the Commission des Opérations de Bourse
(COB). From January 1 to December 31, 2002,
LVMH SA sold a net total of 14,143,571 of its
own shares. The current stock buy-back plan
was registered with the COB under No. 02-453
on April 25, 2002.
AN UNFAVORABLE CONTEXT
In spite of lower interest rates and fiscal stimulus
measures, all three of the world’s principal
economic zones were simultaneously affected
for varying reasons by a slowdown in activity.
This depressed environment together with the
threat of a geopolitical conflict led to declines
in major equity markets for the third consecutive
year. The CAC 40 fell 34%, the Eurostoxx 50 lost
37% and the Dow Jones Industrial Average
declined 17% in particular.
OUTPERFORMED THE CAC
After climbing sharply at the beginning of the
year, LVMH’s share price followed the overall
market trend beginning in May, though it resisted
better than the market average. Thus, LVMH
outperformed the CAC 40 by 29% in 2002,
closing the year at 39.15 euros.
LVM H’s market capitalization stood at 19.2 bil-
lion 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 Eurotop 100,
Euronext 100.
LVM H shares are traded on the Premier Marché
of Euronext Paris (Reuters code LVMH.PA,
Bloomberg code MC FP and Isin code
FR0000121014). In addition, options based
on LVMH shares are traded on the Paris Monep
options exchange.
THE LVM H SHARE AND THE PARIS CAC 40 INDEX SINCE JANUARY, 2002