First Half 2010 results

July 27, 2010

Bernard Arnault

3

Strong rebound of activity and profitability in first half 2010

Strong revenue growth: + 16%Double-digit organic revenue growth for all business groups Favourable trends observed earlier this year continued in Q2

Profit from recurring operations up 33%

Improved current operating margin to 20%

Group share of net profit up 53%

Strong growth of free cash flowContinued rigorous inventory managementTargeted investments

4

LVMH benefits from start of recovery thanks to its exceptional products

Progress of LVMH revenue in emerging countries

Exceptional momentum of Louis Vuitton thanks to the selectivity of its distribution and to its products

Strong recovery in orders for Wines & Spirits and Watches & Jewelry after major destocking in 2009

Success of Christian Dior and Sephora gaining market share

5

Confidence for 2010

In an economic environment marked bythe start of the recovery:

Low visibility on strength of recovery Uncertain currency context

LVMH will pursue in 2010:Rigorous cost management and selective investmentsRational development of production capacitiesTargeted geographic expansion Innovation and creativity

LVMH will gain market share in luxury sector

Jean-Jacques Guiony

7

H1 2010 revenue by business group

+ 14%+ 16%9 0997 811Total LVMH

--(22)(14)Others and eliminations

+ 13%+ 14%2 4192 127Selective retailing

+ 24%+ 28%443346Watches & Jewelry

+ 10%+ 12%1 4411 285Perfumes & Cosmetics

+ 14%+ 18%3 5162 988 Fashion & Leather Goods

+ 18%+ 21%1 3021 079Wines & Spirits

Organicgrowth

ReportedgrowthH1 2010H1 2009In millions of euros

8

-2%

+7%+13%

+15%

+14%

+2%

Q1 2010 Q2 2010 H1 2010

Currency impact Organic growth

Quarterly evolution of H1 2010 revenue

+ 11% + 22% + 16%

9

H1 2010 revenue breakdown by region

France14%

Europe (excl. France)19%

United States (inc. Hawaii)23%

Japan9%

Other markets9%

Asia (excl. Japan)26%

In % of total revenue

10

* excl. Hawaii

Revenue change by region

+ 11%

+ 21%

- 6%

+ 18%

H1 2010

Asia

Europe

Japan

US*

LVMH Group

Evolution in local currencies versus same period of 2009

11

+ 51%1 144757 Net profit before minority interests

(150)(136)Net financial income (expense)(463)(358)Income taxes

41Equity investment income

+ 13%(3 275)(2 902)Selling expenses+ 14%(816)(716)Administrative expenses

+ 53%1 050687 Group share of net profit(94)(70)Minority interests

+ 40%1 7531 250Operating profit(63)(113)Other income and expenses

+ 33%1 8161 363Profit from recurring operations

+ 19%5 907 4 981Gross margin+ 16%9 0997 811Revenue

% ChangeH1 2010H1 2009In millions of euros

Summarized income statement

12

Profit from recurring operationsby business group

+ 33%1 816 1 363 Total LVMH

ns(95)(67)Others and eliminations

+ 36%176129Selective retailing

+ 145%4920Watches & Jewelry

+ 50%181121Perfumes & Cosmetics

+ 28%1 179919Fashion & Leather Goods

+ 35%326241Wines & Spirits

% ChangeH1 2010H1 2009In millions of euros

13

In millions of euros

H1 2009

Operationalimprovements

+337

Currencyimpact*

+116

* Incl.: Fashion & Leather goods +76M Wines & Spirits +27MH1 2010

Increase in profit from recurringoperations at constant currency

1 363

1 816

14

Change in net financial expense

-14(150)(136) Net financial expense

+5(10)(15)Other items - net

+37370Income relating to investments, assets and other financial instruments

- 81(100)(19)Ineffective portion of currency hedge

+25(77)(102)Cost of net financial debt

Change (M€)H1 2010H1 2009In millions of euros

15

LiabilitiesJune 30, 2010

Assets

Solid financial structure

In billions of euros

Non current assets

Inventories

Other currentassets

Total equity

Non current liabilities

Current liabilities

33.2 33.2

67%50%

35%

15%

19%

14%

Strong progress of total equity

Rise in inventory levelsIncreased business

Currency effect

Decreased net debt

16

Analysis of cash flow from operations

+438(80)(518)Working capital requirements

-74(426)(352)Operating investments

+8091 145 336Free cash flow*

+4451 6511 206Net cash from operations before changes in working capital

-37(282)(245)Income taxes paid

+26(89)(115)Net interest paid

+4562 0221 566Cash from operations before changes in working capital

Change (M€)H1 2010H1 2009In millions of euros

Interim dividend of 0.70 euro per share

* Before available for sale financial assets and investments, transactions relating to equity and financing activities

17

3 094

4 1693 869

4 477

2 9942 565

25%

34%

28%32%

20% 16%

31/12/2007 30/06/2008 31/12/2008 30/06/2009 31/12/2009 30/06/2010

Gearing

Net financial debt

In millions of euros

Antonio Belloni

WINES & SPIRITS

20

WINES & SPIRITS

H1 2009

H1 2010

H1 2009

H1 2010

In millions of euros

Revenue + 21%

Profit from recurring operations + 35%

Organic growth + 18%

1 079

1 302

241

326

Key figuresChampagne and Wines Cognac and Spirits

621458

581 721

77 164

119 207

21

WINES & SPIRITS

Revenue by region (in local currencies): US +22%, Europe +18%, Asia +9%Kept pricing policy consistent with brand positioningAbsence of last year’s destockingRecovery in final demand in Q2 for all categoriesTargeted communication and selective investments Champagne: volumes + 23%

Good progress of prestige vintagesCognac: volumes + 16%

Continued strong momentum in ChinaSuccess of Hennessy Black in the US

H1 2010 Highlights

22

WINES & SPIRITS 2010 Outlook

Continue rigorous cost control

Roll-out product innovations launched earlier this year

Increase marketing programs

FASHION & LEATHER GOODS

24

FASHION & LEATHER GOODS

H1 2009

H1 2010

Revenue + 18%

Profit from recurring operations + 28%

Organic growth + 14%

H1 2009

H1 2010

2 988

3 516

919

1 179

In millions of euros

Key figures

25

FASHION & LEATHER GOODS

Revenue by region (in local currencies): US +21%, Europe +18%, Asia +22%

Louis Vuitton: exceptional momentumDouble-digit organic revenue growthContinued excellent performance of leather goodsRapid development of ready-to-wear and shoesOpened Shanghai and London Maisons

Fendi: continued success of Peekaboo line and selective development of distribution network

Donna Karan: solid progress of own stores

Confirmed business recovery in own stores for other fashion brands

H1 2010 Highlights

26

FASHION & LEATHER GOODS

Fashion & Leather goods visual

27

FASHION & LEATHER GOODS 2010 Outlook

Louis VuittonNew leather goods line in soft leather New markets: Lebanon and Dominican RepublicStart of production in “Tanneries de la Comète” in Belgium

Fendi: strengthen leather goods icons

Marc Jacobs: accelerate global expansion

Maintain policy of targeted investments and rigorous cost management for other brands

PERFUMES & COSMETICS

29

PERFUMES & COSMETICS

H1 2009

H1 2010

121

181

H1 2009

H1 2010

Revenue + 12%

Profit from recurring operations + 50%

Organic growth + 10%

1 285

1 441

In millions of euros

Key figures

30

PERFUMES & COSMETICS

Revenue by region (in local currencies): US +16%, Europe +8%, Asia +18%

Christian Dior: success of value creation strategy Confirmed success of Miss Dior Chérie, Eau Sauvage and J’AdoreRapid development of Capture Totale One Essential skincareDevelopment of make-up

Guerlain: roll out of Idylle fragrance launched in 2009 and good performance of Orchidée Impériale premium skincare

Parfums Givenchy: continued success of Ange ou DémonLe Secret and Play

Benefit: first store opened in China

Make Up For Ever: good success of Aqua line

H1 2010 Highlights

31

PERFUMES & COSMETICS

Continue to gain market shares through strong communication and innovation

Christian Dior: strengthen star lines in perfumes and make-up

Roll-out Rouge Dior lipstickInternational expansion of Eau SauvageNew muse for Miss Dior Chérie

Profitable development of other brandsNew anti-aging skincare at GuerlainFeminine version of Play at Parfums GivenchyNew fragrance launches at Fendi and Pucci

2010 Outlook

WATCHES & JEWELRY

33

WATCHES & JEWELRY

H1 2009

H1 2010

Revenue + 28%

Profit from recurring operations + 145%

Organic growth + 24%

H1 2009

H1 2010

346

443

20

49

In millions of euros

Key figures

34

WATCHES & JEWELRY

Revenue by region (in local currencies): US +34%, Europe +10%, Asia +45%, Japan +5%

Replenishment of retailers’ inventories and recovery in final demand

Strong innovation centered on iconic products

Maintained rigorous management of costs and inventories

Strong improvement in current operating margin

H1 2010 Highlights

35

WATCHES & JEWELRY

Watches & Jewelry visual

36

WATCHES & JEWELRY

Objective of market share gains

Pursue up-market positioning through strong innovation

Accelerate development in high potential markets, notably in China

Celebrate TAG Heuer’s 150th anniversary

Focus on industrial integration of TAG Heuer and Hublot

Selective expansion of mono-brand store network

2010 Outlook

SELECTIVE RETAILING

38

SELECTIVE RETAILING

H1 2009

H1 2010

Revenue + 14%

Profit from recurring operations + 36%

Organic growth + 13%

H1 2009

H1 2010

2 127

2 419

129

176

In millions of euros

Key figures

39

SELECTIVE RETAILING H1 2010 HighlightsRevenue by region (in local currencies): Asia +28%, US +12%, Europe +5%

DFSStrong growth in sales to Asian clienteleIncreased momentum at MacaoContinued renovation of Hong Kong Sun Plaza GalleriaSustained growth of Abu Dhabi and Mumbai

SEPHORAMarket share gains in all regionsPursued strong momentum in China and accelerated growth in Middle EastSolid momentum in online salesAcquisition of Sack’s in Brazil1 020 stores at end June 2010

40

SELECTIVE RETAILING

Selective retailing visual

41

SELECTIVE RETAILING

DFSStrengthen presence in destinations of Asian travelersFull opening of second Galleria in Macao, City of DreamsMaintain rigorous management of costs and inventories

SEPHORAObjective of market share gainsFurther expansion of store networkEnter new high potential markets Reinforce unique concept and exclusive offering Continue development of e-commerce

2010 Outlook