Annual

Shareholders’
Meeting
May 15, 2008

Bernard Arnault
Excellent performance in 2007

ƒ Strong organic revenue growth of 13 %

ƒ Solid progress in historical markets
ƒ Strong momentum in emerging countries
ƒ Profit from recurring operations up 12%
ƒ Double-digit growth for all business groups
ƒ At constant exchange rates,
profit from recurring operations up 20 %
ƒ Further increase of current operating margin to 22 %
ƒ Cash flow from operations grew 15 %

Further strengthen our foundations in 2007

despite a difficult currency environment
3

Well-balanced contribution
from all business groups

ƒ Strong vitality of major brands

ƒ New star brands increased momentum and continued
to improve their profitability
ƒ Rapid development in emerging countries benefited
all business groups
ƒ Powerful Wines and Spirits brands reinforced
their value creation strategy
ƒ New record year for Louis Vuitton, which continues to generate
exceptional level of profitability
ƒ Market share gains for TAG Heuer, Parfums Christian Dior
and Sephora
4
Annual
Shareholders’
Meeting

Jean-Jacques Guiony
Summarized income statement

In millions of euros 2006 2007 Change %

Revenue 15 306 16 481 +8%
Gross margin 9 825 10 695 +9%
Selling expenses (5 364) (5 752) +7%
Administrative expenses (1 289) (1 388) +8%
Profit from recurring operations 3 172 3 555 +12%
Other income and expenses (120) (126)
Operating profit 3 052 3 429 +12%
Net financial income (expense) (53) (252)
Group share of net profit 1 879 2 025 +8%

Profit from recurring operations

increased 12 %

In millions of euros 2006 2007 Change %

Wines & Spirits 962 1 058 + 10%

Fashion & Leather Goods 1 633 1 829 + 12%
Perfumes & Cosmetics 222 256 + 15%

Watches & Jewelry 80 141 + 76%

Selective retailing 400 439 + 10%
Others and eliminations (125) (168) -
LVMH 3 172 3 555 + 12%

8
Profit from recurring operations
increased 20 % at constant currency
In millions of euros
Operational Currency
improvements impact*
+ 638 - 255
3 555
3 172

2006 2007
* incl.: Fashion and Leather Goods: -148M Wines & Spirits: -50M

Solid financial structure

In billions of euros

30.7 30.7
ƒ Strong progress in equity

Total equity ƒ Rise in inventory level

41%
Non current ƒ Increased business
assets 66%
ƒ Constitution of cognac inventories
Non-current ƒ Net financial debt reduction
34% liabilities
Inventories 16%
Current
Other current 18%
25%
liabilities
assets

Assets Liabilities
Dec. 31, 2007
10
 Net debt and equity

Net debt
In millions of euros Total equity

11 594 12 528
10 484

4 318
3 400 3 094

Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007

Gearing
41% 29% 25%
11

Share price performance since 2003

Share price base 100 at January 1, 2003
240

220

200
2005 2006 2007
180

160

140

LVMH : +111%
120

100

80

60
S1 2003 S2 2003 S1 2004 S2 2004 S1 2005 S2 2005 S1 2006 S2 2006 S1 2007 S2 2007
LVMH CAC 40
Source: JCF Group

12
2007 Dividend increased 14%
Net dividend per share
In euros
+14%

+22% 1.60
1.40
+21%
+12% 1.15

0.95
0.85

2003 2004 2005 2006 2007

13

Annual
Shareholders’
Meeting
 Bernard Arnault

Results of the LVMH shareholder survey

ƒ LVMH strategy and perspectives

ƒ Development in emerging countries

16
STRATEGY AND PERSPECTIVES
An ambitious and consistent strategy

ƒ Prioritize investment in star brands

ƒ Grow other brands and raise their status

ƒ Reinforce our presence in historical markets

ƒ Adapt to the development of emerging clientele

ƒ Continue to focus on internal growth

17

STRATEGY AND PERSPECTIVES

Social and environmental policy

ƒ A dynamic social policy

ƒ Develop excellent teams
ƒ Perpetuate our rare and demanding “savoir-faire”
ƒ Promote corporate social accountability

ƒ Strong commitment to protecting the environment

ƒ Preserve our natural resources and design environment-friendly products
ƒ Some initiatives within the Group:
ƒ ISO 14001 certification and carbon footprint assessment for several brands
ƒ Louis Vuitton “HEQ” (High Environmental Quality) logistic warehouse
ƒ Development of eco-design (stores/packaging)
ƒ Integrated grape growing (“viticulture raisonnée”)
and protection of biodiversity strengthened

18
STRATEGY AND PERSPECTIVES
Organic revenue growth
in the first quarter of 2008: +12%

ƒ Double-digit organic revenue growth continued in Q1 2008

ƒ Another exceptional performance by Louis Vuitton

ƒ Strong growth momentum at Sephora, Parfums Christian Dior

and TAG Heuer

ƒ Double-digit revenue growth in US (in $) and Asia

19

STRATEGY AND PERSPECTIVES

2008 : continue to gain market share

ƒ An unfavorable currency environment

and an uncertain economic climate
ƒ Sustained innovation
ƒ Effective communication
ƒ Development of new clientele
ƒ Continued focus on productivity improvement
ƒ Expansion of store network

Objective of tangible growth in 2008 results

20
 Annual
Shareholders’
Meeting

DEVELOPMENT IN EMERGING COUNTRIES

An important growth driver for the Group

Evolution of LVMH Group’s revenue

in emerging countries

4 bil. €
X2
Greater China

Other Asian countries

Middle East 2 bil. €

Latin America

Central and Eastern

Europe

2003 2007

As a % of total Group revenue 17 % 25 %

22
DEVELOPMENT IN EMERGING COUNTRIES
A strong presence of LVMH in emerging countries
LVMH store network
in emerging countries
445 stores at end 2007
41%
Greater China

Other Asian countries

Middle East
6% Latin America

5% Central and Eastern

Europe
4%

44%

Exceptional ability of LVMH

to attract customers of all origins
23

DEVELOPMENT IN EMERGING COUNTRIES

Excellent growth outlook for LVMH

ƒ Buoyant macroeconomic environments

ƒ Increasing appeal of luxury products
to clientele from emerging countries
ƒ Pioneering expansion strategy of LVMH,
adapted to local culture and context
ƒ Powerful and strong visibility of our brands
ƒ Talented teams

LVMH well positioned to fully benefit

from development in emerging countries

24
Annual
Shareholders’
Meeting

Joint Auditors’ reports

to the Annual
Shareholders’ Meeting
Reports on the Financial Statements
(1st and 2nd resolutions)

ƒ Opinion on consolidated and parent company

financial statements
ƒ « (…) true and fair view of the financial position of the parent
company and the Group (…) and the results of their operations
for the period (…)

27

Special Report on Related Party Transactions

(3rd resolution)

ƒ Agreements authorized during the year

ƒ Amendment to the service agreement entered into
with the company Groupe Arnault SAS

ƒ Agreements authorized in previous years having

a continuing effect during the year

28
Other Special Reports
(11th and 12th resolutions)

ƒ Authorization to reduce the share capital

ƒ No matters to report on the reasons and conditions thereof

ƒ Authorization to grant existing or future shares for no

consideration to employees and company officers
ƒ No matters to report on the proposed methods

29

Other Special Reports

(13th and 14th resolutions)

ƒ Authorization to issue shares and marketable securities

with cancellation of preferential subscription rights
ƒ No matters to report on the proposed methods subject to later
examination of issue terms

ƒ Advice on cancellation of preferential subscription rights will be

given at the time of the issue price setting

ƒ Additional report on the conditions when the transaction takes

place

30
Other Special Reports
(15th resolution)

ƒ Authorization to increase the share capital with

cancellation of preferential subscription rights reserved
for employees members of a company savings scheme
ƒ No matters to report on the proposed methods subject to later
examination of issue terms

ƒ Advice on cancellation of preferential subscription rights will be

given at the time of the issue price setting

ƒ Additional report on the conditions when the transaction takes

place

31