Lvhm Analysis
LVMH Discussion Materials
November 2012
TABLE OF CONTENTS
01 02 03 04
Company Snapshot – LVMH Industry Analysis Internal Analysis Business Strategy
Slide 2
LVMH
• Merger of Louis Vuitton and Moët Hennessy • French holding company for luxury goods • Owns more than 60 companies • Revenue 24 billion EUR • Net income 3 billion EUR • Over 3000 stores • More than 100 thousand employees
Slide 3
Current Strategy
• To represent the most refined qualities Western "Art de Vivre“ around the world • Five priorities
Be creative and innovate Aim for product excellence Bolster the image of their brands with passionate determination Act as entrepreneurs Strive to be best in all they do
Tangible assets Cultural assets System assets
Strategic assets
Relational assets
• Strategic assets • Through diversification and responsiveness to change they have valued creaticty and built strong relationships with customers
Structural assets
Knowledge assets
Slide 4
LVMH Peer Analysis Revenue:
LVMH- past three years more than 15% growth PPR – mostly decreasing
Profit:
LVMH- stable growth around 13% PPR- doubled in last 5 years
Slide 5
LVMH Financial Overview
Key Financials Sales per Segment
EUR Million Total Revenue Growth % Gross Profit Margin % EBITDA Margin % EBIT Margin % Net Income Margin % Total Assets Growth %
2008 17,193 4.3% 11,181 65.0% 4,239 25% 3,611 21% 2,026 12% 31,483 11%
2009 17,053 (0.8%) 10,889 63.9% 4,053 24% 3,352 20% 1,755 10% 32,106 2%
2010 20,320 19.2% 13,136 64.6% 5,106 25% 4,321 21% 3,032 15% 37,164 16%
2011 2012 LTM 23,659 16.4% 15,567 65.8% 6,147 26% 5,263 22% 3,065 13% 47,069 27% 26,333 22.4% 17,154 65.1% 6,650 25% 5,673 22% 3,436 13% 49,143 4%
2012 E 27,977 18.2% 7,016 25% 5,956 21% 3,638 13% -
2013E
2014E
EUR Million Revenues Wines and Spirits Fashion and Leather Goods Perfumes and Cosmetics Watches and Jewelry Selective Retailing Other and Holding Companies Corporate and
November 2012
TABLE OF CONTENTS
01 02 03 04
Company Snapshot – LVMH Industry Analysis Internal Analysis Business Strategy
Slide 2
LVMH
• Merger of Louis Vuitton and Moët Hennessy • French holding company for luxury goods • Owns more than 60 companies • Revenue 24 billion EUR • Net income 3 billion EUR • Over 3000 stores • More than 100 thousand employees
Slide 3
Current Strategy
• To represent the most refined qualities Western "Art de Vivre“ around the world • Five priorities
Be creative and innovate Aim for product excellence Bolster the image of their brands with passionate determination Act as entrepreneurs Strive to be best in all they do
Tangible assets Cultural assets System assets
Strategic assets
Relational assets
• Strategic assets • Through diversification and responsiveness to change they have valued creaticty and built strong relationships with customers
Structural assets
Knowledge assets
Slide 4
LVMH Peer Analysis Revenue:
LVMH- past three years more than 15% growth PPR – mostly decreasing
Profit:
LVMH- stable growth around 13% PPR- doubled in last 5 years
Slide 5
LVMH Financial Overview
Key Financials Sales per Segment
EUR Million Total Revenue Growth % Gross Profit Margin % EBITDA Margin % EBIT Margin % Net Income Margin % Total Assets Growth %
2008 17,193 4.3% 11,181 65.0% 4,239 25% 3,611 21% 2,026 12% 31,483 11%
2009 17,053 (0.8%) 10,889 63.9% 4,053 24% 3,352 20% 1,755 10% 32,106 2%
2010 20,320 19.2% 13,136 64.6% 5,106 25% 4,321 21% 3,032 15% 37,164 16%
2011 2012 LTM 23,659 16.4% 15,567 65.8% 6,147 26% 5,263 22% 3,065 13% 47,069 27% 26,333 22.4% 17,154 65.1% 6,650 25% 5,673 22% 3,436 13% 49,143 4%
2012 E 27,977 18.2% 7,016 25% 5,956 21% 3,638 13% -
2013E
2014E
EUR Million Revenues Wines and Spirits Fashion and Leather Goods Perfumes and Cosmetics Watches and Jewelry Selective Retailing Other and Holding Companies Corporate and