company analysis - lvmh louis vuitton moet hennessy - mc fp

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18.04.2012 Ticker: MC LVMH Moet Hennessy Louis Vuitt Benchmark: Currency: EN Paris: MC, Currency: EUR CAC 40 INDEX (CAC) Sector: Consumer Discretionary Industry: Textiles, Apparel & Luxury Goo Year: Telephone 33-1-44-13-22-22 Revenue (M) Business Segments in EUR Sales (M) Geographic Segments in EUR Sales (M) Website www.lvmh.fr No of Employees Fashion and Leather Goods 8672 Asia 6430 Address 22 Avenue Montaigne Paris, 75008 France Selective Retailing 6414 United States 5237 Share Price Performance in EUR Wines and Spirits 3511 Rest of Europe 4797 Price 128.75 1M Return -4.9% Perfumes and Cosmetics 2851 France 2866 52 Week High 136.80 6M Return 13.7% Watches and Jewelry 1911 Rest of the World 2359 52 Week Low 94.16 52 Wk Return 19.5% Holding Companies and Other 300 Japan 1970 52 Wk Beta 0.94 YTD Return 17.7% Credit Ratings Bloomberg - S&P A Date 20.05.2011 Outlook STABLE Moody’s - Date - Outlook - Fitch WD Date 24.11.2010 Outlook - Valuation Ratios 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E P/E 11.2x 21.1x 19.4x 17.4x 18.1x 16.1x 14.4x EV/EBIT 7.6x 12.3x 14.5x 11.5x - - - EV/EBITDA 6.3x 10.1x 12.3x 9.8x 10.4x 9.4x 8.5x P/S 1.3x 2.2x 2.9x 2.3x 2.5x 2.3x 2.0x P/B 1.8x 2.7x 3.4x 2.4x 2.6x 2.4x 2.2x Div Yield 3.3% 2.1% 1.7% 2.4% 2.3% 2.6% 2.9% Profitability Ratios % 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E Gross Margin 65.0 63.9 64.6 65.8 65.8 66.1 65.8 EBITDA Margin 25.1 23.8 25.1 26.0 25.7 26.2 26.4 Operating Margin 21.1 19.7 21.3 22.2 22.2 22.6 22.3 Profit Margin 11.8 10.3 14.9 13.0 13.3 13.8 13.9 Return on Assets 6.5 5.5 8.8 7.3 7.2 7.6 7.8 Return on Equity 16.6 13.2 19.6 15.5 15.4 15.8 15.2 Leverage and Coverage Ratios 12/08 12/09 12/10 12/11 Current Ratio 1.6 1.8 1.6 1.4 Current Capitalization in EUR Quick Ratio 0.5 0.7 0.6 0.4 Common Shares Outstanding (M) 498.2 EBIT/Interest 14.2 16.1 25.6 27.4 Market Capitalization (M) 65392.3 Tot Debt/Capital 0.3 0.3 0.2 0.2 Cash and ST Investments (M) #N/A N/A Tot Debt/Equity 0.4 0.4 0.3 0.3 Total Debt (M) #N/A N/A Eff Tax Rate % 27.8 30.1 30.7 29.5 Preferred Equity (M) 0.0 LT Investments in Affiliate Companies (M) 0.0 Investments (M) 0.0 Enterprise Value (M) LVMH Moet Hennessy Louis Vuitton SA is a diversified luxury goods group. The Company produces and sells champagne, cognac, perfumes, cosmetics, luggage, watches and jewelry. MC FP 23’659 #N/A N/A Company Analysis - Overview 37% 27% 15% 12% 8% 1% Fashion and Leather Goods Selective Retailing Wines and Spirits Perfumes and Cosmetics Watches and Jewelry Holding Companies and Other 28% 22% 20% 12% 10% 8% Asia United States Rest of Europe France Rest of the World Japan Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

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April 18 (Bloomberg) -- LVMH Moet Hennessy Louis Vuitton SA, the world’s largest maker of luxury goods, reported first- quarter sales that beat analysts’ estimates as demand for its products accelerated, defying an “uncertain” European economy.Revenue climbed 25 percent to 6.58 billion euros ($8.6 billion), the Paris-based company said today in an e-mailed statement. The average of 11 analysts’ estimates compiled by Bloomberg was 6.39 billion euros. Sales advanced 14 percent excluding currency shifts and acquisitions, up from 12 percent in the last three months of 2011.Demand for LVMH’s products is rising even as China’s economy slows and Europe’s debt crisis weighs on consumer spending. The Sephora cosmetics chain and DFS duty-free stores led the gain as sales at the selective retailing unit surged 18 percent on a so-called organic basis.LVMH “continued its excellent momentum at the start of the year with particularly fast growth in Asia and in the United States and good progress in Europe despite the contrasting environment,” the company said in the statement. Europe “remains uncertain.”The stock fell 1 percent to 129.20 euros at 9:10 a.m. in Paris trading. Sales of luxury goods may increase 10 percent in 2012, half last year’s pace, according to CA Cheuvreux analyst Thomas Mesmin.LVMH sales grew “more than” 10 percent in all regions except Europe, where they advanced “nearly” 10 percent, a spokesman said by phone.Vuitton in RomeAt the selective retail division, DFS shops at airports and other duty-free locations benefited from rapid growth in Asian tourism, particularly in Hong Kong and Macau, while Sephora posted “robust” comparable store growth and won market share in key regions, LVMH said. Online sales also registered ``rapid'' growth. Sephora will open soon in Brazil and Scandinavia, according to the statement.Fashion and leather goods, LVMH’s largest source of revenue, advanced 12 percent, led by the Louis Vuitton brand, which opened its first Italian “maison” store in Rome, according to the statement. Fendi had “a good start” to the year, while Celine recorded “strong” growth, LVMH said.Watch and jewelry sales grew 17 percent. All brands posted “good momentum” in Europe and expansion of the store network continued in Asia, LVMH said. With an increase in retail orders compared to last year, the new timepieces presented at the Basel watch fair were very well received, according to the statement. Bulgari had “an excellent start” to the year, LVMH said.Revenue from wines and spirits climbed 16 percent, buoyed by price increases and a 9 percent gain in volume at Hennessy cognac, LVMH said. Champagne volume grew 5 percent, fueled by prestige brands, it said.Perfume and cosmetics sales rose 9 percent.

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Page 1: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

18.04.2012

Ticker: MC FP LVMH Moet Hennessy Louis Vuitt Benchmark:

Currency: EN Paris: MC, Currency: EUR CAC 40 INDEX (CAC)

Sector: Consumer Discretionary Industry: Textiles, Apparel & Luxury Goo Year:

Telephone 33-1-44-13-22-22 Revenue (M) Business Segments in EUR Sales (M) Geographic Segments in EUR Sales (M)Website www.lvmh.fr No of Employees Fashion and Leather Goods 8672 Asia 6430Address 22 Avenue Montaigne Paris, 75008 France Selective Retailing 6414 United States 5237Share Price Performance in EUR Wines and Spirits 3511 Rest of Europe 4797Price 128.75 1M Return -4.9% Perfumes and Cosmetics 2851 France 286652 Week High 136.80 6M Return 13.7% Watches and Jewelry 1911 Rest of the World 235952 Week Low 94.16 52 Wk Return 19.5% Holding Companies and Other 300 Japan 197052 Wk Beta 0.94 YTD Return 17.7%Credit Ratings

Bloomberg -S&P A Date 20.05.2011 Outlook STABLEMoody's - Date - Outlook -Fitch WD Date 24.11.2010 Outlook -

Valuation Ratios

12/08 12/09 12/10 12/11 12/12E 12/13E 12/14EP/E 11.2x 21.1x 19.4x 17.4x 18.1x 16.1x 14.4xEV/EBIT 7.6x 12.3x 14.5x 11.5x - - -EV/EBITDA 6.3x 10.1x 12.3x 9.8x 10.4x 9.4x 8.5xP/S 1.3x 2.2x 2.9x 2.3x 2.5x 2.3x 2.0xP/B 1.8x 2.7x 3.4x 2.4x 2.6x 2.4x 2.2xDiv Yield 3.3% 2.1% 1.7% 2.4% 2.3% 2.6% 2.9%Profitability Ratios %

12/08 12/09 12/10 12/11 12/12E 12/13E 12/14EGross Margin 65.0 63.9 64.6 65.8 65.8 66.1 65.8EBITDA Margin 25.1 23.8 25.1 26.0 25.7 26.2 26.4Operating Margin 21.1 19.7 21.3 22.2 22.2 22.6 22.3Profit Margin 11.8 10.3 14.9 13.0 13.3 13.8 13.9Return on Assets 6.5 5.5 8.8 7.3 7.2 7.6 7.8Return on Equity 16.6 13.2 19.6 15.5 15.4 15.8 15.2Leverage and Coverage Ratios

12/08 12/09 12/10 12/11Current Ratio 1.6 1.8 1.6 1.4 Current Capitalization in EURQuick Ratio 0.5 0.7 0.6 0.4 Common Shares Outstanding (M) 498.2EBIT/Interest 14.2 16.1 25.6 27.4 Market Capitalization (M) 65392.3Tot Debt/Capital 0.3 0.3 0.2 0.2 Cash and ST Investments (M) #N/A N/ATot Debt/Equity 0.4 0.4 0.3 0.3 Total Debt (M) #N/A N/AEff Tax Rate % 27.8 30.1 30.7 29.5 Preferred Equity (M) 0.0

LT Investments in Affiliate Companies (M) 0.0Investments (M) 0.0Enterprise Value (M)

LVMH Moet Hennessy Louis Vuitton SA is a diversified luxury goods group. The Company produces and sells champagne, cognac, perfumes, cosmetics, luggage, watches and jewelry.

MC FP

23'659#N/A N/A

Company Analysis - Overview

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Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

Page 2: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

LVMH Moet Hennessy Louis VuittTarget price in EUR

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Company Analysis - Analysts Ratings

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Page 3: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

18.04.2012

LVMH Moet Hennessy Louis Vuitt

Ownership Statistics Geographic Ownership Distribution

Shares Outstanding (M) 498.2 France 85.08%

Float 51.2% United States 7.93%

Short Interest (M) Luxembourg 2.84%

Short Interest as % of Float Germany 0.99%

Days to Cover Shorts Unknown Country 0.67%

Institutional Ownership 61.08% Britain 0.52%

Retail Ownership 38.51% Ireland 0.50%

Insider Ownership 0.41% Others 1.46%

Institutional Ownership DistributionHolding Company 78.64%Investment Advisor 13.10%Mutual Fund Manager 7.20%Individual 0.67%

Pricing data is in EUR Others 0.40%

Top 20 Owners:

Holder Name Position Position Change Market Value % of Ownership Report Date Source Country

GROUPE ARNAULT SAS 236'033'646 0 30'389'331'923 46.47% 31.12.2011 Co File FRANCELVMH MOET HENNESSY L 9'536'678 0 1'227'847'293 1.88% 31.12.2011 Co File FRANCENATIXIS ASSET MANAGE 4'826'161 -139'015 621'368'229 0.95% 30.12.2011 MF-AGG FRANCETHORNBURG INVESTMENT 3'940'056 0 507'282'210 0.78% 29.02.2012 MF-AGG UNITED STATESCARMIGNAC GESTION 3'748'176 14'726 482'577'660 0.74% 31.12.2011 MF-AGG FRANCEVANGUARD GROUP INC 3'607'603 47'993 464'478'886 0.71% 31.12.2011 MF-AGG UNITED STATESFIDELITY MANAGEMENT 2'840'961 -130'445 365'773'729 0.56% 29.02.2012 MF-AGG UNITED STATESAMUNDI 2'700'305 -54'513 347'664'269 0.53% 29.02.2012 MF-AGG FRANCEMASSACHUSETTS FINANC 2'527'576 32'281 325'425'410 0.50% 29.02.2012 MF-AGG UNITED STATESFIDELITY INTERNATION 2'120'166 -8'849 272'971'373 0.42% 30.12.2011 MF-AGG BERMUDAOPPENHEIMERFUNDS INC 1'686'780 -930 217'172'925 0.33% 29.02.2012 MF-AGG UNITED STATESTRAPANI FRANCESCO 1'561'592 0 201'054'970 0.31% 31.12.2011 Co File n/aLBPAM 1'396'184 1'557 179'758'690 0.27% 31.01.2012 MF-AGG FRANCECAPITAL WORLD INVEST 1'385'000 0 178'318'750 0.27% 31.12.2011 MF-AGG UNITED STATESAVIVA PLC 1'367'156 37'039 176'021'335 0.27% 30.09.2011 MF-AGG BRITAINBNP PARIBAS ASSET MG 1'315'163 96'772 169'327'236 0.26% 29.02.2012 MF-AGG BRITAINBLACKROCK FUND ADVIS 1'266'474 813 163'058'528 0.25% 16.04.2012 MF-AGG UNITED STATESBNP ASSET MANAGEMENT 1'082'039 550'601 139'312'521 0.21% 30.11.2011 MF-AGG FRANCEAMUNDI 959'006 -17'748 123'472'023 0.19% 29.02.2012 MF-AGG FRANCEMFS INVESTMENT MANAG 930'223 13'462 119'766'211 0.18% 31.01.2012 MF-AGG LUXEMBOURG

Top 5 Insiders:

Holder Name Position Position Change Market Value % of Ownership Report Date Source

TRAPANI FRANCESCO 1'561'592 201'054'970 0.31% 31.12.2011 Co File

ARNAULT-GANCIA DELPHINE 158'844 20'451'165 0.03% 31.12.2011 Co File

HENNESSY GILLES 111'145 14'309'919 0.02% 31.12.2011 Co File

ARNAULT ANTOINE 110'964 14'286'615 0.02% 31.12.2011 Co File

GODE PIERRE 110'708 14'253'655 0.02% 31.12.2011 Co File

Company Analysis - Ownership

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Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |

Page 4: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

LVMH Moet Hennessy Louis VuittFinancial information is in EUR (M)

Periodicity: 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E

Income Statement

Revenue 12'229 12'693 11'962 12'481 13'910 15'306 16'481 17'193 17'053 20'320 23'659 26'666 29'023 31'958

- Cost of Goods Sold 4'654 4'563 4'171 4'373 5'001 5'481 5'786 6'012 6'164 7'184 8'092

Gross Income 7'575 8'130 7'791 8'108 8'909 9'825 10'695 11'181 10'889 13'136 15'567 17'535 19'188 21'013

- Selling, General & Admin Expenses 6'183 6'384 5'909 5'736 6'190 6'668 7'140 7'553 7'537 8'815 10'304

(Research & Dev Costs) 27 36 38 38 43 46 43 45 46 63

Operating Income 1'392 1'746 1'882 2'372 2'719 3'157 3'555 3'628 3'352 4'321 5'263 5'930 6'567 7'124

- Interest Expense 658 471 214 188 203 241 255 208 169 192

- Foreign Exchange Losses (Gains) -23 5 45 97 64 46 105

- Net Non-Operating Losses (Gains) 300 233 563 219 145 -98 33 98 276 -636 48

Pretax Income 457 1'037 1'319 1'939 2'386 3'007 3'184 3'211 2'822 4'788 4'918 5'611 6'323 7'060

- Income Tax Expense 192 350 488 537 718 847 853 893 849 1'469 1'453

Income Before XO Items 265 687 831 1'402 1'668 2'160 2'331 2'318 1'973 3'319 3'465

- Extraordinary Loss Net of Tax 156 0 0 0 0 0 0 0 0

- Minority Interests 99 131 108 208 228 281 306 292 218 287 400

Diluted EPS Before XO Items 1.14 1.48 2.53 3.04 3.94 4.22 4.26 3.70 6.32 6.23

Net Income Adjusted* 10 556 723 1'010 1'440 1'879 2'025 2'026 1'755 3'032 3'065 3'539 3'996 4'437

EPS Adjusted 0.02 1.20 1.54 2.15 3.06 3.84 4.27 4.28 3.58 6.19 6.14 7.11 7.99 8.93

Dividends Per Share 1.13 0.80 0.85 0.95 1.15 1.40 1.60 1.60 1.65 2.10 2.60 2.96 3.34 3.76

Payout Ratio % 221.3 70.5 57.6 39.0 39.1 30.1 38.7 38.6 46.1 22.7 43.1 0.42 0.42 0.42

Total Shares Outstanding 456 466 470 469 471 472 475 470 472 478 498

Diluted Shares Outstanding 489 490 473 474 477 480 476 475 480 492

EBITDA 2'076 2'144 2'796 2'901 3'310 3'712 4'109 4'323 4'055 5'106 6'150 6'864 7'602 8'432

*Net income excludes extraordinary gains and losses and one-time charges.

Equivalent Estimates

Company Analysis - Financials I/IV

Fiscal Year

Page 5: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

Periodicity: 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E

Balance Sheet

Total Current Assets 8506 7927 7924 7412 8516 8751 10118 10354 10975 11199 13267

+ Cash & Near Cash Items 795 812 823 1'035 1'470 1'222 1'559 1'013 2'446 2'292 2'087

+ Short Term Investments 622 60 231 607 879 590 218 219 216

+ Accounts & Notes Receivable 1'538 1'327 1'375 1'364 1'370 1'461 1'595 1'650 1'455 1'565 1'878

+ Inventories 3'655 3'427 3'415 3'598 4'134 4'383 4'812 5'764 5'644 5'991 7'510

+ Other Current Assets 1'896 2'301 2'080 1'415 1'542 1'078 1'273 1'337 1'212 1'132 1'576

Total Long-Term Assets 13'962 13'490 12'619 18'105 19'537 19'620 20'266 21'129 21'131 25'965 33'802

+ Long Term Investments 1'853 1'742 1'590 718 451 504 823 375 540 3'891 5'982

Gross Fixed Assets 6'629 6'381 6'256 7'283 8'111 8'469 8'853 10'224 11'354 13'467

Accumulated Depreciation 2'421 2'531 2'588 2'742 3'128 3'296 3'434 4'084 4'621 5'450

+ Net Fixed Assets 4'208 3'850 3'668 4'541 4'983 5'173 5'419 6'081 6'140 6'733 8'017

+ Other Long Term Assets 7'901 7'898 7'361 12'846 14'103 13'943 14'024 14'673 14'451 15'341 19'803

Total Current Liabilities 8'293 6'601 6'118 6'076 6'591 5'942 7'413 6'615 6'048 7'060 9'594

+ Accounts Payable 1'401 1'429 1'639 1'581 1'732 1'899 2'095 2'292 1'911 2'298 2'952

+ Short Term Borrowings 4'003 2'578 2'116 2'529 2'642 2'100 3'138 1'847 1'708 1'834 3'134

+ Other Short Term Liabilities 2'889 2'594 2'363 1'966 2'217 1'943 2'180 2'476 2'429 2'928 3'508

Total Long Term Liabilities 7'105 5'974 5'656 10'766 10'978 10'835 10'443 11'075 11'273 11'900 13'963

+ Long Term Borrowings 5'686 4'554 4'207 4'188 3'747 3'235 2'477 3'738 4'077 3'432 4'132

+ Other Long Term Borrowings 1'419 1'420 1'449 6'578 7'231 7'600 7'966 7'337 7'196 8'468 9'831

Total Liabilities 15'398 12'575 11'774 16'842 17'569 16'777 17'856 17'690 17'321 18'960 23'557

+ Long Preferred Equity 0 0 0 0 0 0 0 0 0 0 0

+ Minority Interest 1'800 1'772 1'735 893 1'025 991 938 989 989 1'006 1'061

+ Share Capital & APIC 1'883 1'883 1'883 1'883 1'883 1'883 1'883 1'884 1'910 1'929 3'954

+ Retained Earnings & Other Equity 3'387 5'187 5'151 5'899 7'576 8'720 9'707 10'920 11'886 15'269 18'497

Total Shareholders Equity 7'070 8'842 8'769 8'675 10'484 11'594 12'528 13'793 14'785 18'204 23'512

Total Liabilities & Equity 22'468 21'417 20'543 25'517 28'053 28'371 30'384 31'483 32'106 37'164 47'069

Book Value Per Share 11.55 15.18 14.95 16.58 20.10 22.45 24.42 27.24 29.25 35.95 45.07 49.44 53.30 58.43

Tangible Book Value Per Share -1.63 -0.59 -8.74 -7.54 -4.58 -2.59 -0.30 1.76 6.41 8.05

Company Analysis - Financials II/IV

Page 6: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

Periodicity: 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E

Cash Flows

Net Income 10 556 723 1'194 1'440 1'879 2'025 2'026 1'755 3'032 3'065 3'548 3'989 4'318

+ Depreciation & Amortization 684 398 914 529 591 555 554 695 703 785 887

+ Other Non-Cash Adjustments 225 564 312 381 220 112 353 287 385 -15 489

+ Changes in Non-Cash Capital -345 436 -107 -219 -257 -258 -474 -730 91 247 -534

Cash From Operating Activities 574 1'954 1'842 1'885 1'994 2'288 2'458 2'278 2'934 4'049 3'907

+ Disposal of Fixed Assets 149 177 82 63 21 10 58 100 26 33 31

+ Capital Expenditures -904 -479 -508 -640 -707 -771 -990 -1'039 -748 -1'002 -1'749 -1'407 -1'497 -1'604

+ Increase in Investments -445 -274 -78 -57 -69 -135 -45 -155 -93 -1'724 -518

+ Decrease in Investments 2'122 92 32 95 469 184 33 184 49 70 17

+ Other Investing Activities -1'816 -240 -279 -412 -532 0 -349 -650 -285 -68 -797

Cash From Investing Activities -894 -724 -751 -951 -818 -712 -1'293 -1'560 -1'051 -2'691 -3'016

+ Dividends Paid -343 -349 -374 -412 -446 -566 -686 -758 -758 -953 -1'069

+ Change in Short Term Borrowings 0 0 0 0 0

+ Increase in Long Term Borrowings 2'469 523 1'452 1'599 1'192 785 2'006 2'254 2'442 564 2'659

+ Decrease in Long Term Borrowings -2'294 -2'408 -2'114 -1'686 -1'559 -1'757 -1'700 -2'301 -2'112 -1'290 -1'005

+ Increase in Capital Stocks 38 529 266 1 35 6 15 5 64 275 96

+ Decrease in Capital Stocks 0 0 -131 0 -48 -143

+ Other Financing Activities 698 141 -262 -107 -119 -311 -478 -144 37 -186 -1'533

Cash From Financing Activities 568 -1'564 -1'032 -736 -897 -1'891 -843 -1'087 -327 -1'590 -852

Net Changes in Cash 248 -334 59 198 279 -315 322 -369 1'556 -232 39

Free Cash Flow (CFO-CAPEX) -330 1'475 1'334 1'245 1'287 1'517 1'468 1'239 2'186 3'047 2'158 3'116 3'602 3'931

Free Cash Flow To Firm 52 1'787 1'400 1'418 1'663 1'644 1'423 2'331 3'164 2'293

Free Cash Flow To Equity -6 -233 754 1'221 941 555 1'832 1'292 2'542 2'354 3'843

Free Cash Flow per Share -0.72 3.02 2.72 2.65 2.74 3.21 3.09 2.62 4.62 6.39 4.42

Company Analysis - Financials III/IV

Page 7: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

Periodicity: 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E

Ratio Analysis

Valuation Ratios

Price Earnings 125.5x 34.3x 39.0x 22.1x 24.5x 20.1x 19.4x 11.2x 21.1x 19.4x 17.4x 18.1x 16.1x 14.4x

EV to EBIT 22.2x 15.0x 18.1x 13.9x 15.2x 13.4x 12.2x 7.6x 12.3x 14.5x 11.5x

EV to EBITDA 14.9x 12.3x 12.2x 11.4x 12.5x 11.4x 10.5x 6.3x 10.1x 12.3x 9.8x 10.4x 9.4x 8.5x

Price to Sales 1.7x 1.5x 2.4x 2.1x 2.5x 2.5x 2.4x 1.3x 2.2x 2.9x 2.3x 2.5x 2.3x 2.0x

Price to Book 4.0x 2.6x 3.9x 3.4x 3.7x 3.6x 3.4x 1.8x 2.7x 3.4x 2.4x 2.6x 2.4x 2.2x

Dividend Yield 2.5% 2.0% 1.5% 1.7% 1.5% 1.8% 1.9% 3.3% 2.1% 1.7% 2.4% 2.3% 2.6% 2.9%

Profitability Ratios

Gross Margin 61.9% 64.1% 65.1% 65.0% 64.0% 64.2% 64.9% 65.0% 63.9% 64.6% 65.8% 65.8% 66.1% 65.8%

EBITDA Margin 17.0% 16.9% 23.4% 23.2% 23.8% 24.3% 24.9% 25.1% 23.8% 25.1% 26.0% 25.7% 26.2% 26.4%

Operating Margin 11.4% 13.8% 15.7% 19.0% 19.5% 20.6% 21.6% 21.1% 19.7% 21.3% 22.2% 22.2% 22.6% 22.3%

Profit Margin 0.1% 4.4% 6.0% 9.6% 10.4% 12.3% 12.3% 11.8% 10.3% 14.9% 13.0% 13.3% 13.8% 13.9%

Return on Assets 0.0% 2.5% 3.4% 5.2% 5.4% 6.7% 6.9% 6.5% 5.5% 8.8% 7.3% 7.2% 7.6% 7.8%

Return on Equity 0.2% 9.0% 10.3% 16.1% 16.7% 18.7% 18.2% 16.6% 13.2% 19.6% 15.5% 15.4% 15.8% 15.2%

Leverage & Coverage Ratios

Current Ratio 1.03 1.20 1.30 1.22 1.29 1.47 1.36 1.57 1.81 1.59 1.38

Quick Ratio 0.36 0.33 0.40 0.39 0.43 0.55 0.54 0.49 0.68 0.58 0.44

Interest Coverage Ratio (EBIT/I) 2.12 3.71 11.08 14.46 15.55 14.75 14.23 16.12 25.57 27.41

Tot Debt/Capital 0.58 0.45 0.42 0.44 0.38 0.32 0.31 0.29 0.28 0.22 0.24

Tot Debt/Equity 1.37 0.81 0.72 0.77 0.61 0.46 0.45 0.40 0.39 0.29 0.31

Others

Asset Turnover 0.54 0.58 0.57 0.54 0.52 0.54 0.56 0.56 0.54 0.59 0.56

Accounts Receivable Turnover 7.70 8.86 8.85 9.11 10.18 10.81 10.79 10.60 10.98 13.46 13.74

Accounts Payable Turnover 3.64 3.06 2.71 2.83 3.34 3.16 3.11 3.17 2.88 3.58 3.66

Inventory Turnover 1.32 1.29 1.22 1.25 1.29 1.29 1.26 1.14 1.08 1.23 1.20

Effective Tax Rate 42.0% 33.8% 37.0% 27.7% 30.1% 28.2% 26.8% 27.8% 30.1% 30.7% 29.5%

Company Analysis - Financials IV/IV

Page 8: Company Analysis - LVMH Louis Vuitton Moet Hennessy - MC FP

LVMH MOET HENNES

PPR CIE FINANCI-BR A HERMES INTLSWATCH GROUP-

BRL'OREAL TIFFANY & CO REMY COINTREAU HUGO BOSS -ORD PRADA S.P.A. AVON PRODUCTS

BROWN-FORMAN -B

UNILEVER NV-CVAKIRIN HOLDINGS

CSHISEIDO CO LTD

12/2011 12/2011 03/2011 12/2011 12/2011 12/2011 01/2012 03/2011 12/2011 01/2012 12/2011 04/2011 12/2011 12/2011 03/2011136.80 136.90 59.95 290.90 443.70 94.80 84.49 79.95 89.24 53.70 31.60 85.68 27.16 1'154.00 1'558.00

16.03.2012 16.03.2012 15.03.2012 17.02.2012 06.07.2011 13.04.2012 07.07.2011 18.04.2012 28.03.2012 05.04.2012 03.05.2011 04.04.2012 02.01.2012 08.07.2011 04.07.201194.16 90.50 36.46 148.55 288.50 68.83 56.21 48.96 51.25 27.00 16.09 62.14 20.96 893.00 1'320.00

04.10.2011 04.10.2011 09.08.2011 18.04.2011 03.10.2011 23.09.2011 04.10.2011 04.10.2011 04.10.2011 03.10.2011 25.11.2011 10.08.2011 09.08.2011 25.11.2011 10.05.2011375'053 87'837 253'788 1'503 20'390 76'954 1'228'013 10'385 108 2'740'652 7'716'257 240'767 746'019 2'771'000 1'469'800128.75 124.55 56.20 249.85 421.30 93.34 66.96 79.45 85.81 51.00 22.55 83.79 25.32 1'035.00 1'448.00

-5.9% -9.0% -6.3% -14.1% -5.0% -1.5% -20.7% -0.6% -3.8% -5.0% -28.6% -2.2% -6.8% -10.3% -7.1%36.7% 37.6% 54.1% 68.2% 46.0% 35.6% 19.1% 62.3% 67.4% 88.9% 40.1% 34.8% 20.8% 15.9% 9.7%498.2 126.3 522.0 105.2 53.9 594.4 126.7 49.4 69.0 2'558.8 430.8 145.0 2'820.4 961.7 397.9

65'392.3 15'696.4 32'270.0 26'376.5 21'998.6 56'343.0 8'462.3 3'938.9 6'066.9 130'500.0 9'718.0 11'775.5 75'914.1 998'775.0 579'200.0

7'266.0 4'677.6 791.0 43.9 91.0 1'148.3 712.1 409.5 388.5 346.5 3'308.4 759.0 13'718.0 1'266'773.0 197'515.0 - - - - - - - - - - - - - - -

1'061.0 824.5 12.0 12.9 17.0 3.1 - 0.9 23.8 8.2 14.8 - 628.0 194'722.0 12'267.0 2'303.0 1'270.7 3'381.0 843.8 2'169.0 1'652.2 442.2 80.6 212.1 362.3 1'245.1 567.0 4'937.0 76'209.0 103'840.0

71'416.3 19'927.8 24'261.7 25'541.8 19'937.6 55'842.2 8'732.3 4'054.0 6'267.2 12'830.6 11'796.1 12'042.1 85'323.1 2'384'061.0 701'392.0

LFY 23'659.0 12'227.2 6'892.0 2'841.2 6'764.0 20'343.1 3'642.9 907.8 2'058.8 2'555.6 11'291.6 2'586.0 46'467.0 2'071'774.0 670'701.0LTM 23'659.0 12'227.2 7'847.0 2'841.2 6'764.0 20'343.1 3'642.9 954.5 2'058.8 2'555.6 11'291.6 2'731.2 46'467.0 2'071'774.0 673'247.0

CY+1 26'666.3 13'308.1 8'618.5 3'209.8 7'517.4 21'861.2 3'975.4 1'021.0 2'268.0 3'088.0 11'224.1 3'624.8 50'235.0 2'190'984.3 679'648.0 CY+2 29'022.8 14'156.9 9'429.8 3'504.6 8'215.1 23'042.6 4'350.2 1'142.5 2'474.1 3'622.2 11'632.4 3'834.2 52'981.7 2'204'542.1 700'486.3

LFY 2.6x 1.5x 2.2x 7.2x 2.5x 2.3x 2.3x 3.0x 1.9x 3.7x 0.9x 4.6x 1.8x 1.1x 1.0xLTM 2.6x 1.5x 1.9x 7.8x 2.5x 2.3x 2.3x 2.8x 1.9x 3.7x 0.9x 4.3x 1.8x 1.1x 1.0x

CY+1 2.6x 1.5x 2.8x 7.9x 2.6x 2.5x 2.1x 4.0x 2.7x 4.1x 1.0x 3.3x 1.7x 0.9x 1.0xCY+2 2.3x 1.3x 2.5x 7.1x 2.2x 2.3x 1.9x 3.6x 2.5x 3.4x 1.0x 3.1x 1.6x 0.9x 1.0x

LFY 6'150.0 1'916.5 1'669.0 769.2 1'843.0 3'955.1 854.4 228.8 467.5 756.5 1'357.2 911.0 7'462.0 285'626.0 79'172.0LTM 6'150.0 1'916.5 2'106.0 892.7 1'843.0 3'955.1 854.4 211.4 467.5 756.5 1'376.5 911.1 7'462.0 285'626.0 80'388.0

CY+1 6'863.9 2'153.3 2'162.1 1'094.2 2'070.2 4'375.4 984.7 216.4 528.1 946.2 1'354.3 858.9 8'433.8 302'678.2 76'144.6 CY+2 7'602.0 2'412.7 2'369.0 1'215.6 2'335.9 4'693.8 1'097.2 250.9 591.7 1'147.8 1'481.0 919.1 9'034.7 309'487.8 80'897.2

LFY 9.8x 9.5x 9.0x 26.7x 9.2x 12.0x 9.7x 11.7x 8.6x 12.4x 7.1x 13.0x 11.3x 8.0x 8.8xLTM 9.8x 9.5x 7.1x 23.0x 9.2x 12.0x 9.7x 12.7x 8.6x 12.4x 7.0x 13.0x 11.3x 8.0x 8.7x

CY+1 10.2x 9.1x 11.1x 23.1x 9.3x 12.5x 8.6x 18.8x 11.7x 13.4x 8.6x 13.9x 10.0x 6.8x 8.7xCY+2 8.9x 7.8x 9.8x 20.4x 7.9x 11.3x 7.6x 16.4x 10.3x 10.7x 7.7x 12.8x 9.2x 6.4x 8.3x

LFY 6.37 8.08 1.93 5.61 23.48 4.21 3.60 1.49 4.12 0.17 1.70 3.41 1.58 - -LTM 6.27 7.92 2.10 5.61 23.50 4.17 3.61 2.39 4.12 0.17 1.67 3.96 1.51 7.70 36.05

CY+1 7.11 9.41 2.41 6.07 26.65 4.69 3.99 2.65 4.68 0.22 1.50 3.59 1.61 51.20 47.18 CY+2 7.99 10.87 2.90 6.83 30.21 5.07 4.56 3.43 5.30 0.27 1.67 3.99 1.76 61.11 59.60

LFY 20.5x 15.7x 22.2x 44.5x 17.9x 22.4x 18.5x 33.3x 20.8x 29.5x 13.5x 21.2x 16.8x 134.4x 40.2xLTM 20.8x 15.4x 22.8x 44.6x 17.9x 22.1x 18.5x 33.5x 20.8x 29.5x 13.5x 21.2x 16.0x - -

CY+1 18.1x 13.2x 19.4x 41.1x 15.8x 19.9x 16.8x 30.0x 18.3x 23.3x 15.0x 23.3x 15.7x 20.2x 30.7xCY+2 16.1x 11.5x 16.1x 36.6x 13.9x 18.4x 14.7x 23.2x 16.2x 18.7x 13.5x 21.0x 14.4x 16.9x 24.3x

1 Year 16.4% 11.1% 33.2% 18.3% 10.7% 4.3% 18.1% 12.4% 19.0% 24.9% 3.9% 4.7% 5.0% (4.9%) 4.1%5 Year 10.3% (8.0%) 14.4% 13.8% 7.2% 5.1% 5.3% 6.3% 12.7% - 3.5% 4.3% 3.7% 4.8% (0.5%)1 Year 20.4% 11.8% 32.6% - 11.2% 5.3% 15.0% 44.7% 39.6% 42.5% 7.0% 18.5% (2.1%) (2.0%) 1.8%5 Year 10.6% 3.2% 13.3% 12.1% 9.6% 4.7% 9.4% 8.2% 14.9% - 3.4% 8.5% 3.2% 9.1% 3.7%

LTM 26.0% 15.7% 24.2% 32.0% 27.2% 19.4% 23.5% 25.2% 22.7% 29.6% 12.0% 35.2% 16.1% 13.8% 11.8%CY+1 25.7% 16.2% 25.1% 34.1% 27.5% 20.0% 24.8% 21.2% 23.3% 30.6% 12.1% 23.7% 16.8% 13.8% 11.2%CY+2 26.2% 17.0% 25.1% 34.7% 28.4% 20.4% 25.2% 22.0% 23.9% 31.7% 12.7% 24.0% 17.1% 14.0% 11.5%

Total Debt / Equity % 32.4% 42.8% 11.3% 2.0% 1.1% 6.5% 30.3% 38.5% 77.8% 19.0% 210.7% 36.8% 96.0% 148.5%Total Debt / Capital % 23.6% 28.5% 10.2% 2.0% 1.1% 6.1% 23.3% 27.8% 42.6% 15.9% 67.6% 26.9% 47.9% 54.7%Total Debt / EBITDA 1.181x 2.441x 0.474x 0.057x 0.049x 0.290x 0.834x 1.790x 0.831x 0.458x 2.438x 0.833x 1.838x 4.435xNet Debt / EBITDA 0.807x 1.778x -1.552x -1.040x -1.128x -0.127x 0.316x 1.438x 0.377x -0.021x 1.520x 0.211x 1.177x 4.168xEBITDA / Int. Expense 32.031x 8.225x 61.815x 2564.000x 614.333x 82.227x 17.589x 7.150x 11.174x 44.913x 14.547x 31.414x 13.819x 13.657x

S&P LT Credit Rating A BBB - - - - - BB - - BBB *- A A+ NRS&P LT Credit Rating Date 20.05.2011 23.03.2012 - - - - - 19.01.2012 - - 02.04.2012 21.11.2006 05.10.2000 10.04.2009Moody's LT Credit Rating - - - - - - - Ba1 - - A3 A1 A1 A3Moody's LT Credit Rating Date - - - - - - - 02.12.2011 - - 22.11.2011 20.09.2011 11.07.2000 24.10.2011

52-Week High Date

52-Week Low

Latest Fiscal Year:

52-Week High

Total Debt Market Capitalization

Daily Volume

52-Week Low % Change

Current Price (4/dd/yy)

52-Week High % Change

Cash and Equivalents

EBITDA

EV/EBITDA

Enterprise Value

Valuation

Preferred Stock

52-Week Low Date

Minority Interest

Total Common Shares (M)

P/E

Revenue Growth

Total Revenue

EV/Total Revenue

EPS

EBITDA Growth

EBITDA Margin

Credit Ratings

Leverage/Coverage Ratios

Company Analysis - Peers Comparision