Louis Vuitton 2003 Annual Report Download

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PASSIONATE ABOUT
CREATIVITY
ANNUAL REPORT 2003

Table of contents

  • Page 1
    CREATIVITY A N N U A L R E P O R T 2 0 0 3 PASSIONATE ABOUT

  • Page 2
    2 6 8 10 12 14 16 30 40 50 60 68 83 95

  • Page 3
    ... P OF P OWE RFULLY E VOCATI VE BRANDS AND GRE AT NAME S THAT AR E S YN ON YM ...GOODS. I N TH E M AN U FACTU R E AN D DI S TR I B U TI ON OF LU X U RY A UNI QUE BLE ND OF GLOBAL VI S I ON AND DE DI CA- TI ON TO S E RVI NG THE NE E DS OF E VE RY CUS TOME R. THE S UCCE SS FUL MARRI AGE OF CULTURE...

  • Page 4
    cm chairman's message 2 LVMH ANNUAL REPORT 2003

  • Page 5
    ... and BeneFit, whic h all ac hieved do uble-digit o rganic sales gro wth...Aside fro m the Watc hes and Jewelry business group whic h is in a strateg ic planned phase o f investm ent and brand repo sitio ning, all o ur business gro ups c ontributed to LVMH' s strong growth in operating margin from...

  • Page 6
    ...mo mentum with a number o f new launc hes: new leather goods products such as the Damier Geant line, the Théda bag and an entire jewelry line at Louis Vuitton, a new perfume for women at Dior, a new fragranc e for men at Guerlain, an array of watch and jewelry creations, and the new Ellipse Co gnac...

  • Page 7
    ...: during the renovation and expansion of its Champs Elysées store, Louis Vuitton covered the 900 square meters of façade with two huge trunks. On the evening of December 31, 2003, a canvas banner marking the 150th anniversary of the brand was unfurled on the Champs Elysées side. PASSIONATE ABOUT...

  • Page 8
    ... Net sales by business group (E U R million) 2001 2002 2003 Dividend per share including tax credit (EUR) 1.13 1.20 1.28 Cash f low f rom operat ions (EUR million) 919 1,518 1,949 Capit al expendit ures(1) (EUR million) Wines and Spirits Fashion and Leather Goods Perfumes and Cosmetics Watches...

  • Page 9
    ... AND Net sales by currency 6 STORES â- 6 FASHION AND LEATHER GOODS LEATHER GOODS LEATHER GOODS Other currencies 16% Hong Kong Dollar 4% Yen 16% Euro 33% France 17% â- â- 1 WATCHES AND JEWELRY 9 SELECTIVE RETAILING Japan 16% Rest of Europe 21% United States 26% US Dollar 31% PASSIONATE...

  • Page 10
    ...In 2003, business in the Fashion and Leather Goods and Perfumes and Cosmetics groups accelerated growth. This was the result of the investments we made with a long-term view. Louis Vuitton, for example, opened its first boutique in China ten years ago, acting as a driving force in the development of...

  • Page 11
    ... in the USA and the Ebel timepiec e c o mpany in early 2004. The new Louis Vuitton building, located at the corner of prestigious 5 th Avenue and 57th Street in New York, opened in February 2004. The store covers four floors totaling 1,200 square meters. The glass facade evokes the Damier motif by...

  • Page 12
    ... with respec t to the Company. Members of the Board of Directors must perso nally o wn at least five hundred registered shares of LVMH. The Board of Direc tors met four times in 2 0 0 3 , with an average attendanc e rate o f 90%. The Bo ard appro ved the annual and interim financial statements 10...

  • Page 13
    ... Vice Chairman Antonio Belloni Group Managing Director EXECUTIVE CO MMITTEE Bernard Arnault Chairman & Chief Ex ecutive Officer Antonio Belloni Group Managing Director Nic olas Bazire Development & Acquisitions Ed Brennan Travel retail Yves Carc elle Fashion & Leather Goods Pierre Godé Advisor to...

  • Page 14
    ..., o utperfo rming it by 27% in 2003 to c lo se the year at 57.70 euro s. At year-end, the market c apitalizatio n o f LVMH wa s 2 8 . 3 b i l l i o n e u r o s , m aking it t he t e nt h larg e st o n t he AN UNUSUALLY GOOD RETURN FOR THE SHAREHOLDER An LVMH share ho lde r who inve ste d 1,000 euro...

  • Page 15
    ...stocks with no voting rights. At Dec ember 31, 2003, LVMH had 191,169 shareho lders, inc luding 179,816 individual shareho lders. SHARE DATA (I n euros) 2003 2002 2001 2000 1999 Number of shares outstanding M arket capitalization (in millions) High* Low* Year-end close* Average daily trading...

  • Page 16
    ...nd straight year, LVMH was awarded a To p Co m Co rpo rate Business prize for the quality of its annual repo rt. LVMH also o rganises meetings fo r shareho lders, financ ial advisers and asset managers. The website www.lvm h.c o m pro vides ready and easy ac c ess to a wide range of information whic...

  • Page 17
    ...sales Thursday, September 9, 2004 Public ation of 2004 half-year earnings Thursday, May 13, 2004 Annual Shareho lders' Meeting October 2004 Public atio n o f third quarter 2004 net sales Wednesday, May 19, 2004 2004 Payment o f 2003 dividend Januar y 2005 Public atio n o f 2004 annual net sales...

  • Page 18
    WS INES & 16 LVMH ANNUAL REPORT 2003 pir it s

  • Page 19
    ... WI N TIC P OWE MA BY A E MBLE D E V THE S E . K SER R O E TW UTION N , MARKE T DIS TRIB RY S OF LUXU OL B M SY UE BRANDS, TR , PRODUCTS WORLDWIDE AL EXCE PTI ON MAKING M OËT HENNESSY THE WORLD LEADER IN PRES TIGIOUS WI NE S AND SPI RITS. M OËT HEN NESSY IS ALS O DE VE LOPI NG HIG WINE S FROM...

  • Page 20
    ... on our leading brands, those brands that create value today, while we prepare for the future with high-potential brands. Our portfolio is now balanced and refocused on strategic assets. Our investment in the vodka segment corresponds to our strategy of growth and gains in market share in super...

  • Page 21
    ...) 40.1 42.4 45.3 Net sales by geographic region % Other markets 3% Rest of Asia 12% Japan 10% France 11% Rest of Europe 27% 2001 2002 2003 2001 2002 2003 2001 2002 2003 Americas 37% Champagne Cognac Ellipse or the essence of savoir-faire: Hennessy's latest creation is a blend of seven...

  • Page 22
    ... o ntinued its strategy to inc rease value. A steady pric ing po lic y and an inc rease in advertising and marketing expenditures fo r the leading brands in prio rity markets helped to gain market share fo r Mo ët Hennessy in high-end segments. The Moët Hennessy global distribution network, the po...

  • Page 23
    ... vintage wines and Nectar Impérial, espec ially in the United States, also helped to ac c o unt fo r the stro ng perfo rmanc e o f the premium segment. The Moët & Chandon's commitment in September 2003 to hold the Moët Cup in San Francisco Bay between the two finalists of the last Louis Vuitton...

  • Page 24

  • Page 25
    ... has been pursuing its value-c reatio n strategy by fo c using o n its premium vintages, espec ially its new Ruinart Blanc de Blancs and Ruinart Rosé . The premium segment grew 22% in Franc e and 36% abro ad. A new bo ttle design was added to the Ruinart Ro sé line. The quality o f Ruinart wines...

  • Page 26
    ... ano ther rec o rd year o f stro ng growth in the United States, the United Kingdom and Japan. The brand c o nso lidated its po sitio ns in all key markets. Carte Jaune , its famo us trademark, and value-added pro duc ts like vintage wines and the prestigio us vintage La Grande Dame po sted gro wth...

  • Page 27
    ... wine was very go o d, partly bec ause o f the new pressing fac ility installed fo r the 2003 harvest. The availab le vo lu m e s o f t h is p re st ig io u s win e we re distributed amo ng c usto mers wo rldwide, helping to stabilize sales c o mpared with 2002. Cape Mentelle c o nfirmed its status...

  • Page 28
    ... an-Americ an c o mmunity. Sales o f V .S.O.P grew even faster, at a rate o f o ver 10%, due to the polic y to c reate value for the brand initiated a few years ago . The po wer o f its distributio n network and its strong advertising presence proved decisive factors in this growth, which enhanc ed...

  • Page 29

  • Page 30
    VS pirit ueux INS &

  • Page 31
    ...giving the brand a notable gain in market share. The Prestige line, c o nsisting o f Private Reserve , Paradis Ex tra and Richard Hennessy , bac ked by major advertising and promotional investments, bo o sted Hennessy' s po sitio n in this pro fitable segment. In Japan, where the market is generally...

  • Page 32
    30 LVMH ANNUAL REPORT 2003

  • Page 33
    ... STATES, HAS A WORKFORCE OF NEARL Y 17,000, 20 WORKSHOP S AND 828 STORES AROUND THE WORLD. WHILE RESP ECTING THE IDENTITY AND STRATEGY OF EACH OF ITS BRANDS, THE BUS I NE S S GROUP P ROVI DE S WEBSITE GOODS A P OWE RFUL I NFRAS TRUCTURE THE AND SHARED RESOURCES. FAS HI ON AND ELUXURY .COM IS ALSO...

  • Page 34
    ... States is not recent. At the end of the nineteenth century, Louis Vuitton was already selling his trunks in New York and, right after World War I, the brand was already in American department stores. In 1980, the first independent store opened--on 57 th Street in New York. The growth we are now...

  • Page 35
    I nvest ment s EUR million 210 246 264 2001 2002 2003 Number of st ores 765 793 828 2001 2002 2003 Net sales by geographic region % Other markets 2% Rest of Asia 15% France 9% Rest of Europe 17% Japan 34% Americas 23%

  • Page 36
    ... growth in 2003, thus confirming their potential. NEW PRODUCTS ENJOY CONSIDERABLE SUCCESS The stro ng mo mentum fo r inno vatio n at Lo uis Vuitton was one of the essential drivers of growth, exemplified by the huge suc c ess o f the Cherry Blossom, Multico and Eye Love Monogram leather goods lines...

  • Page 37
    One model from the Louis Vuitton 2004 spring-summer ready-to-wear collection. The new Theda handbag by Louis Vuitton is shown here in M ini-M onogram fabric and lambskin. PASSIONATE ABOUT C R E A T I V I T Y 35

  • Page 38
    ... the benefit o f a balanc ed and pro fitable business mo del. FENDI Fendi c o ntinued its repo sitio ning strategy and devoted major expenditures to renovation and the selective expansion of its retail network. The network included 97 stores as of December 31, 2003. 36 LVMH ANNUAL REPORT 2003

  • Page 39

  • Page 40
    ... of a store in the flourishing Pont Neuf business district in Paris. This store features on four floors Kenzo's entire product line, including women's, men's and children's collections, accessories, fragranc es and c osmetic s. The c orporate offic es and all the teams also moved to this new address...

  • Page 41
    ... it s c o m m e rc ial e xpansio n in Japan and Asia. Givenchy foc used on the expansion of its men' s ready-to -wear line, whic h no w ac c o unts fo r a majo r po rtio n o f its sales revenues and, fo r the first tim e, turned o ver these c o llec tio ns to a designer. Ozwald Bo ateng jo ined the...

  • Page 42
    40 LVMH ANNUAL REPORT 2003

  • Page 43
    ..., THIS BUSINESS GROUP ALS O I NCLUDE S BE NE FI T AND FRE S H, TWO YOUNG, HI GHGROWTH AMERICAN COSMETICS COMPANIES, THE PRESTIGIOUS I TALI AN B R AN D ACQU A DI PARM A , PARFU M S LOE W E , DE VE LOP E D FOR THE S PAN I S H FAS H I ON AN D LE ATHER GOODS COMPANY , AND F OR E V E R, A FRENCH COMPANY...

  • Page 44
    ... and cosmetics brands are priceless assets. In a market in which the incredible number of new products, some of which are redundant, can leave the consumer weary and confused, each of our brands cultivates the values that forge its identity and designs strategies to stand out from the competition...

  • Page 45
    ...ment s EUR million 90 Breakdown of net sales by product cat egory 75 66 Net sales by geographic region % Other markets 6% Skincare products 20% Fragances 59% Rest of Asia 8% Japan 8% Rest of Europe 38% France 20% Cosmetics 21% 2001 2002 2003 Americas 20% PASSIONATE ABOUT C R E A T I V I T Y 43

  • Page 46
    ... IN PROFITS The performanc e of the brands of the Perfumes and Cosmetics business group in the high-growth markets, in Japan and Ko rea in partic ular, partially offset the loss of net sales related to the global ec onomic downturn in the first half of 2003. These advances helped keep net sales at...

  • Page 47
    ... the artistic direc tio n o f Hedi Slimane, the designer of the Christian Dior men' s c o llec tio ns. In 2004, Parfums Christian Dio r will c o ntinue its inno vatio n po lic y and, as it did in 2003, will back it with substantial advertising investments. Majo r new pro duc ts will be intro duc ed...

  • Page 48
    ...brand, a new sales stand c o nc ept with sleek mo dern lines based o n the wo rld o f high fashio n, will gradually be set up in department sto res. GUERLAI N Despite the global ec onomic downturn, Guerlain had an exc ellent year in 2003 b e c ause it re fo c use d it s st rat e g y and investments...

  • Page 49
    the Ho use' s histo ric perfume, an expansio n o f the Amarige line, and partic ularly, the glo bal success of Very Irresistible Givenchy , the House's new trademark fragrance. This new fragrance for wo men is perfec tly in keeping with the brand' s values and is bac ked by a c o mmerc ial in whic h...

  • Page 50
    ... in the Pont-Neuf building in Paris renovated by LVMH. In the sec o nd half o f the year, Parfums Kenzo intro duc ed a new fragranc e in its Flo w er line and a new men' s fragranc e Ke nz o Air , a b le nd o f ve t ive r and st ar anise, whic h had a very pro mising start, helping to bo o st sales...

  • Page 51
    LA PASSION CREATIVE 4 3

  • Page 52
    50 LVMH ANNUAL REPORT 2003

  • Page 53
    ... LVMH BUSINESS GROUP INCLUDES A PORTFOLIO OF HIGH-QUALITY WA TCH BRANDS WITH HIGHL Y COMPLEMENTARY POSITIONING. TAG HEUER, THE WORLD'S LEADING MAKER OF LUXURY SPORTS WA TCHES AND AN UPSCALE MANUFACTURE CHRONOGRAPHS; ZENI TH , FAMOUS FOR ITS EL PRIMERO MOVEMENT ; DI OR WATCHES, OFFERING COLLECTIONS...

  • Page 54
    ... resources on a portfolio of very complementary watch brands, each of which offers high potential in its market segment. We continue to target our investments very carefully and measure the results. Our objective is to achieve substantial improvement in the profitability of this business group. I am...

  • Page 55
    ... ment s EUR million 26 31 21 Net sales by geographic region % Other markets 10% Rest of Asia 12% France 8% Rest of Europe 28% Japan 16% 2001 2002 2003 Americas 26% White gold and diamond cufflinks from the Toile de givre line, from the new designer jewelry collection by Chaumet. I nspired by...

  • Page 56
    ... ad y re t urn t o gro wth. TAG HEUER TAG Heuer, the world's leading company for luxury sports watches and chronographs, is a profitable brand whic h, in the past two years, has been refo c using its pro duc t line, c lo sely c o ntro lling distribution and improving its merchandising. In 2003, TAG...

  • Page 57
    LA PASSION CREATIVE 5 1

  • Page 58
    ... duc ed in 2003. At the same time, Zenith Manufacture continued to develop special timepieces, primarily fo r the brands o f the LVMH Gro up. While in the traditio nal markets o f c o ntinental Euro pe, the c o mpany' s transfo rmatio n resulted in a t e m po rar y de c line in ne t sale s, Ze nit...

  • Page 59
    ... and watch segments. Ric h with an inc o mparable histo ry, the brand bases its strategy on perfect innovation, inspired and elegant, bac ked by pro mo tio nal c ampaigns that showcase innovation and tradition. In 2003, Chaumet relaunched its Liens product line, designed the high-end jewelry line...

  • Page 60
    ... and in department sto re " shop-in-shops" . Business was also brisk in Korea and France. In Korea, Chaumet created a joint venture with its agent to better control its growth. In 2004, Chaumet will continue to open sales outlets at a steady pace in its priority markets in Asia, Japan, Korea and...

  • Page 61
    ...wth in 2003 in a sluggish glo bal market as a result o f marketing expenditures foc used exc lusively in Italy, Franc e and the United States, the largest markets fo r writing instruments, and pro mo tio nal effo rts primarily devo ted to its trademark 360 pro duc t line. Dec ember sales were partic...

  • Page 62

  • Page 63
    ...THE SELECTIVE RETAILING BUSINESS IS ORGANIZED TO PROMOTE A SALES ENVIRONMENT THA T SHOWCASES THE IMAGE AND STA TUS OF LUXURY BRANDS. THE BUSINESS IS PRESENT IN EUROPE, THE UNITED STA TES AND ASIA AND FOCUSES ON TWO SEGMENTS-- TRAVEL RETAIL select ive ret ailin g (SALES OF LUXURY PRODUCTS TO INTERNA...

  • Page 64
    ... driving the latest trends. These brands are riding a wave of popularity; and we are helping to expand them by selling them and holding special product demonstrations for them. HAS SALES ADVICE AND SERVICE BEEN DEVELOPED IN THE UNITED STATES? NALLY DOMINATED BY DEPARTMENT STORES? P.L. : DFS is...

  • Page 65
    I nvest ment s EUR million 207 Number of st ores 656 648 668 Net sales by geographic region % 75 114 Other markets 5% France 29% Asia 18% 2001 2002 2003 2001 2002 2003 Rest of Europe 11% United States 37% PASSIONATE ABOUT C R E A T I V I T Y 63

  • Page 66
    ... major stores in Hawaii, Hong Kong, Singapore and Guam. At the same time, future development will benefit fro m two new majo r o ppo rtunities --the o pening o f a new Galleria in Okinawa in 2005, and the inc rease in the number of travelers from the SEPHORA Sepho ra had an exc ellent year in 2003...

  • Page 67
    ...costs and increasing the productivity of its stores. The Times Square sto re in New Y o rk, whic h was renovated in 2002, has become the Sephora flagship store. Sephora also improved its performance in San Francisco, opening a store in a new location on Powell Street. Sephora was named " Retailer of...

  • Page 68
    ... ting its market po sitio ning as a new player in fashio n and design, no w fo c using primarily o n a c lientele living in the c entral distric ts o f the Right Bank and eastern Paris. In 2004, the reo rganizatio n will be c o mpleted, with the o pening o f a vast men' s department in the basement...

  • Page 69

  • Page 70
    SUSTAIN DEVELO 68 LVMH ANNUAL REPORT 2003

  • Page 71
    NABLE PMENT PASSIONATE ABOUT C R E A T I V I T Y 69

  • Page 72
    ...d e ve l o p m e n t o f luxury brands. To implement, fo r the benefit o f the largest number, a patro nage pro gram the c o mpo nents o f whic h reflec t and transmit o ur fundamental values. To pro vide ac tive suppo rt fo r m ajo r causes, fund humanitarian projects and public health c hallenges...

  • Page 73
    ... FOR CULTURE, YOUTH AND HUM ANI TARI AN ACTI ON TO BRING TO LIFE A CORPORATE ACTION FOR THE BENEFIT OF THE LARGEST NUMBER, THE COMPONENTS OF WHICH REFLECT AND TRANSM I T O U R F U N DA M E N TA L VALUES: THIS IS THE FOUNDATION OF THE PATRONAGE PROGRAM DEVELOPED BY LVMH. Thanks to its success, LVMH...

  • Page 74
    S USTAINABLE DEVELOPMENT A CORPORATE COM M I TM ENT POLI CY LVMH IS A GROUP COMPOSED OF ABOUT FIFTY BRANDS OPERATING IN VARIOUS BUSINESS SEGMENTS. SOCIAL COHESION IS ONE OF THE KEY FACTORS IN ITS SUCCESS. IN THE LAST SEVERAL YEARS, THE GROUP HAS IMPLEMENTED AN INNOVATIVE INTERNAL AND EXTERNAL ...

  • Page 75
    .... CUSTOM TRAI NI NG LVMH c o mpanies o ffer a bro ad range o f t raining p ro g ram s t o allo w b o t h management and employees to develop their pro fessio nal skills and their spec ific business line expertise as artisans and c reato rs and to share a c o mmo n visio n. Training wo...

  • Page 76
    ... two new plants in Franc e in are as wit h a ve r y hig h unemplo yment rate - Sainte Flo renc e in Vendée and Duc ey in La Manc he. The initiatives of Louis Vuitton in c reating plants and jo bs in Franc e are o ne c o mpo nent o f its c o mmitment to the sustainable integ ratio n o f the brand...

  • Page 77
    ... region Wines and Spirits Fashion and Leather Goods Perfumes and Cosmetics Watches and Jewelry Selective Retailing Other Activities Total 4,908 16,709 13,010 2,309 17,123 901 54,960 France Europe (excl. France) North America South America Asia Pacific Japan Total 19,600 10,913 10,434...

  • Page 78
    ... in-ho use public atio n LVMH Magazine abro ad, and the internal info rmatio nal magazines o f its different c o mpanies. 76 • To fac ilitate the flow of " business" or " o peratio nal" info rmatio n thro ugh a number o f intranet o r extranet sites, so metimes spec ific ally addressing the emplo...

  • Page 79
    ...% 20% 39% 29% Total 338 tec hnic ians and foremen were promoted to management positions last year, while 508 labor and production workers and employees were promoted to technical or supervisory jobs. • Training Breakdown of full-time and part-time workforce by business group 8,726 47,673 - 63...

  • Page 80
    S USTAINABLE DEVELOPMENT PRESERVI NG THE ENVI RONM ENT VI SI ON AND STRATEGY BECAUSE OUR BUSINESSES ARE PROFOUNDLY LINKED TO NATURE, RESPECT FOR THE ENVIRONMENT HAS ALWAYS BEEN AT THE HEART OF THE EFFORTS OF THE COMPANIES IN THE GROUP AND THE VALUES THAT DRIVE THEM. IT IS A CORNERSTONE OF THE ...

  • Page 81
    ...p ag ne ( CIVC) c onduc ted a study c overing the entire Champagne regio n in 2003. The Group is a publicly traded company and, throughout the year, receives questionnaires from shareholders, investors o r rating ag e nc ie s to whic h it m ust respond: accordingly, 11 questionnaires with a signific...

  • Page 82
    ... s o f He nne ssy and Ro ssimo da; • sale o f c o m panies c o nso lidated in 2002 and withdrawn in 2003: Canard Duc hêne, Ebel. GREATER STAFF AWARENESS The Louis Vuitton site in Ducey, Normandy, has developed its environmental management system by conducting an environmental analysis of the...

  • Page 83
    ...m anag e ment and/ o r c o mplianc e audits. Guide for " green actions" More detailed information on the guidelines of the Global Reporting I nitiative and the indicators for the environmental impacts of the Group's operations are provided in the 2003 LVMH reference document, which is available on...

  • Page 84
    82 LVMH ANNUAL REPORT 2003

  • Page 85
    CONSOLIDATED FINANCIAL S TAT E M E N T S 2003 THE CONSOLIDATED F I N A N C I A L S TAT E M E N T S PRESENTED IN THE FOLLOWING PAGES ARE ABBREVIATED.

  • Page 86
    84 LVMH ANNUAL REPORT 2003

  • Page 87
    ... DATED DATA Net sales I ncome from operations I ncome before income taxes Net income before amortization of goodwill, and unusual items Net income Current assets Common stock Stockholders' equity (1) Net assets Current liabilities Short-term debt Long-term debt Balance sheet total Net cash provided...

  • Page 88
    CONSOLIDATED BALANCE SHEET AT DECEMBER 31 ASSETS CURRENT (EUR millions) 2003 2002 2001 ASSETS Cash and cash equivalents Short-term investments Treasury shares Trade accounts receivable Deferred income taxes - net I nventories and work-in-progress Prepaid expenses and other current assets 823 ...

  • Page 89
    LI ABI LI TI ES AND STOCKHOLDERS' EQUI TY CURRENT LI ABI LI TI ES (EUR millions) 2003 2002 2001 Short-term borrowings Accounts payable Accrued expenses and other current liabilities I ncome taxes Current portion of long-term debt 1,245 1,639 2,302 61 871 2,304 1,429 2,533 61 274 3,765 1,401 ...

  • Page 90
    ... represented 61% o f the balanc e sheet total compared to 63% one year earlier. â˜... Tangible and intangible assets were down at 11.0 billion euros compared to 11.7 billion euros at year-end 2002. This was the re sult o f m o de rate d c apital expenditures, concentrated on the store n e t wo r k an...

  • Page 91
    ...) 21 (455) Financial expense - net Dividends from unconsolidated investments Other income or expenses - net I NCOM E BEFORE I NCOM E TAXES 1,618 (488) 1 1,317 (350) (18) 667 (192) (42) I ncome taxes I ncome (loss) from investments accounted for using the equity method N ET I NCOM E BEFORE...

  • Page 92
    ..., these expenses rose 4%, whic h was partly driven by the opening of new stores and partly by sustained investments in advertising and pro mo tio n, partic ularly fo r Lo uis Vuitton. â˜... Net sales fo r Fashio n and Leather Goods dropped by 1%, but posted a 10% inc rease o n a c o nstant c urrenc...

  • Page 93
    ... c o rpo rate tax rate fo r 2003 was 30%, up slightly o n the previous year' s rate following the inclusion in 2002 of losses generated by the negative effects of the unfavorable economic environment on c ertain businesses. â˜... The Group inc ome from investments ac c ounted for using the equity...

  • Page 94
    ... at year-end (net of bank overdraft) Non-cash transactions: - Lease financing operations The statement of cash flows shows the change in cash (net of bank overdraft) and cash equivalents consisting of short-term investments that can be readily converted into cash, excluding listed securities...

  • Page 95
    ... reduc ed by 1,002 millio n euro s in 2003. â˜... Dispo sals o f fixed assets ( no n-financ ial assets and unc o nso lidated investments) inc reased c ash by 9 5 millio n euro s. This am o unt is m ainly due to the sale o f real estate assets. â˜... At the close of the operations for the ye ar, the ne...

  • Page 96
    ... 1,736 5,409 (271) 16 (103) 723 (222) 7,070 (271) 16 (103) Long-term investment in LVM H shares I nterim dividend paid on 2003 income Foreign currency translation Net income (401) (401) 723 AS OF DECEMBRE 31, 2003 489,937,410 - 147 1,736 5,774 (623) 7,034 94 LVMH ANNUAL REPORT 2003

  • Page 97
    H OLDI N GS 96 BUSI NESS GROUPS W I N E S AN D SPI RI TS FASH I ON AN D LE ATH E R GOODS PE RFU M E S AN D COSM E TI CS W ATCH E S AN D JE W E LRY SE LE CTI V E RE TAI LI N G 96 97 100 102 103 104 OTH E R ACTI V I TE S LVMH WORLDWIDE

  • Page 98
    ... 22, avenue Montaigne 75008 Paris - France Tel.: + 33 1 44 13 22 22 - Fax: + 33 1 1 44 13 22 23 L VM H SERVI CES LTD 19 East Street - New York, NY 10022 - U.S.A. Tel.: + 1 212 931 27 00 - Fax: + 1 212 931 27 37 L VM H M OËT-HENNESSY LOUI S VUI TTON JAPAN KK 57th 65, avenue Edouard Vaillant...

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    ... LEATHER GO O DS BUSIN ESS GRO UP L VM H FASHI ON GROUP 2, rue du Pont Neuf - 75034 Paris Cedex 01 - France Tel.: + 33 1 55 80 32 00 - Fax: + 33 1 55 80 33 99 L VM H FASHI ON GROUP UK LTD Louis Vuitton Group LOUI S VUI TTON M ALLETI ER LOUI S VUI TTON RUSSI A Bolshaya Dmitrovka 18/ 10 - Building...

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    ... 93 50 04 74 CELI NE UK LTD C/O L VM H FG UK LTD Ground Floor, Shop n°3 - Mandarin Oriental Hotel 956-1110 Avenida de Amizade Macau - People's Republic of China Tel.: + 853 700 760 - Fax: + 853 700 761 LOUI S VUI TTON TAI WAN LTD 2, rue du Pont-Neuf - 75001 Paris - France Tel.: + 33 1 55 80 32 00...

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    ...+ 39 049 82 84 370 E-LUXURY .COM , I NC. Christian Lacroix Group CHRI STI AN LACROI X SNC 2, rue du Pont-Neuf 75001 Paris - France Tel.: + 33 1 55 80 32 00 - Fax: + 33 1 55 80 27 60 FENDI UK LTD One Front Street, 6th Floor San Francisco, CA 94111 - U.S.A. Tel.: + 1 415 348 3500 - Fax: + 1 415 348...

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    ... 74 78 COSM ETI CS OF FRANCE, I NC. c/ o LVMH Perfumes & Cosmetics Group Pty Ltd Locked Bag 3 - 1/ 13 Lord Stree Botany NSW 2019 - Australia Tel.: + 61 2 9695 4800 - Fax: + 61 2 9695 4855 PARFUM S CHRI STI AN DI OR (NEW ZEALAND) LTD 33 avenue Hoche - 75008 Paris - France Tel.: + 33 1 49 53 85 00...

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    ... LLC c/ o LVMH Fragrances & Cosmetics (Singapore) Pte Ltd 1 Kim Seng Promenade # 14-08/ 09 Great World City West Tower - Singapore 237 994 Tel.: + 65 6 733 61 61 - Fax: + 65 6 733 07 51 GUERLAI N OCEANI A AUSTRALI A PTY LTD 19 East 57th Street 17th Floor New York, NY 10022 - U.S.A. Tel.: + 1 212...

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    ...-brand Subsidiaries L VM H M ONTRES & JOAI LLERI E FRANCE SA Dubai Airport Free Zone, East Wing 1, Room 310 Middle East Branch Office P .O. Box 54272 - Dubai - Emirats Arabes Unis Tel.: + 97 1 42994901 - Fax: + 97 1 42994112 L VM H WATCH & JEWELLERY JAPAN KK 28 rue Feydeau - 75002 Paris - France...

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    ... 0400 - Fax: + 1 305 674 9396 COM ETE DFS GROUP LTD First Market Tower - 525 Market Street, 33rd Floor San Francisco, CA 94105 2708 - U.S.A. Tel.: + 1 415 977 27 00 -Fax: + 1 415 977 29 56 DFS GROUP LP P .O. Box 71843 Kowloon Central Post Office - Kowloon - Hong Kong Tel.: + 852 27 32 52 11 - Fax...

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    ...345 79 40 525 Market Street, 11th Floor San Francisco, CA 94105 - U.S.A. Tel.: + 1 415 977 4300 - Fax: + .1.415.977.2939 LA SAM ARI TAI NE 19, rue de la Monnaie - 75001 Paris - France Tel.: + 33 1 40 41 20 20 - Fax: + 33 1 40 41 28 28 OTHER ACTIVITIES Media Group D.I GROUP RADI O CLASSI QUE / LE...

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    For information, c ontac t LVMH, 22, avenue Montaigne - 75008 Paris - Franc e Telephone 33 1 44 13 22 22 -..., Mario Palmieri, Franc k Charel, D.R., Photo arc hives LVMH and Group Companies. Design and produc tion communication 41, rue Camille Pelletan - 92300 Levallois-Perret - Franc e - Tel.:...

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