ANNUAL REPORT 2002
laying the foundations for long-term prosperity
by Bernard Arnault SUSTAINABLE DEVELOPMENT
meeting the challenge with confidence and responsibility
strong growth of star brands, increase in market share
research and creativity enhance the successes of the Group.
PASSIONATE ABOUT CREATIVITY
PASSIONATE ABOUT CREATIVITY TABLE OF CONTENTS
02 04 06
OF MEN AND
HIGHLIGHTS BOARD OF DIRECTORS AND GENERAL MANAGEMENT CORPORATE GOVERNANCE THE LVMH SHARE SHAREHOLDER RELATIONS
WOMEN PASSIONATE ABOUT THEIR BUSINESS AND DRIVEN BY THE DESIRE TO
08 09 10 12
ACHIEVE . AN
UNRIVALLED GROUP OF
POWERFULLY EVOCATIVE BRANDS AND GREAT NAMES THAT ARE SYNONYMOUS W I T H T H E H I S T O R Y O F LU X U R Y. ALLIANCE BETWEEN MANSHIP ITY, VIRTUOSITY, TY INTERSECT. WITH NEAR
PASSIONATE ABOUT CREATIVITY, A SUSTAINABLE DEVELOPMENT SUCCESS IS CONSTRUCTED OVER THE LONG TERM A LONG-TERM STRATEGY A COMMITMENT TO THE ENVIRONMENT A SOCIETAL POLICY
N AT U R A L
ART AND CRAFTS WHERE CREATIV AND QUALI -
13 14 20 28
REMARKABLE ECONOMIC SUCCESS STORY E M P L OY E E S W O R L D W I D E A N D IN THE MANUFACTURE AND
LVMH BUSINESS GROUPS WINES AND SPIRITS FASHION AND LEATHER GOODS PERFUMES AND COSMETICS WATCHES AND JEWELRY SELECTIVE RETAILING
38 50 60 66 78
LUXURY GOODS . A
UNIQUE BLEND OF GLOBAL VISION AND DED ICATION TO SERVING THE NEEDS OF EVERY CUSTOMER.
SUCCESSFUL MARRIAGE OF
CULTURES GROUNDED IN TRADITION AND ELEGANCE WITH THE MOST ADVANCED MARKETING, INDUSTRIAL ORGANIZATION AND MANAGEMENT TECHNIQUES.
CONSOLIDATED FINANCIAL STATEMENTS
GUL AR MIX OF TALENT, DARING AND THOROUGHNESS IN THE
EXCELLENCE. A UNIQUE ENTERPRISE
THAT STANDS OUT IN ITS SECTOR. SUMMARIZED IN TWO WORDS—
PHILOSOPHY CAN BE
ANNUAL REPORT 2002•01
PASSIONATE ABOUT CREATIVITY CHAIRMAN’S MESSAGE
LAYING THE FOUNDATIONS FOR LONG-TERM PROSPERITY
by Bernard Arnault, Chairman and Chief Executive Officer
NEW GROWTH IN MARKET SHARE, IMPROVING PROFITABILITY INCREASING , CASH FLOW: AGAINST A BACKGROUND OF MAJOR GEOPOLITICAL TENSION, ECONOMIC UNCERTAINTY AND MONETARY INSTABILITY LVMH IS EXCEEDING , ITS GOALS. OUR GROUP IS THUS CONFIRMING THE EFFECTIVENESS OF ITS STRATEGY ITS EXCEPTIONAL CAPACITY TO RESPOND TO MARKET DYNAMICS , AND THE VITALITY OF ITS MAJOR BRANDS. BASED ON THESE CORE STRENGTHS, IT IS RIGOROUSL MAINTAINING ITS PRIORITIES AND ACTIVEL Y Y PREPARING FOR FUTURE SUCCESS.
AN EFFECTIVE STRATEGY, FOCUSED ON OUR CORE SKILLS AND IMPLEMENTED WITH DYNAMISM AND INNOVATION
The values at the heart of our Group include entrepreneurial passion and a continuous desire to excel. The 2002 results demonstrate in practice the strength of these shared values: the dynamism of our teams - within our brands and markets, the capacity for our organisation to respond to market opportunities and the rigour deployed in the management of our activities have enabled us, in this difficult year, to achieve remarkable results and exceed our targets. The growth achieved by our flagship brands, which are at the heart of everything that we do, is the consequence of our strategy of investment and focus on these core activities. Louis Vuitton, Moët & Chandon, Veuve Clicquot, Hennessy, and Christian Dior Parfums are growing in terms both of sales and even more, profitability, winning new market share. In an activity launched by LVMH more recently, but with a long-term perspective, our brands of watches and jewelry, in particular TAG Heuer, Christian Dior, Zenith and OUR FLAGSHIP Chaumet are also extending BRANDS GROW their influence and developing IN TERMS their sales more rapidly than BOTH OF SALES AND EVEN MORE, the markets they serve, fully...