Investors' presentation

Investors' presentation

THE BVLGARI GROUP Fiscal Year 2003 Rome, 29 March 2004 When printing the presentation please choose the Pure B/W option FINANCIAL RESULTS FY 2003 AND Q4 2003 Eur mios. FY 2003 FY 2002 DELTA FY 03/02 Q4 2003 Q4 2002 DELTA Q4 03/02 REVENUES rep. REVENUES const.currenc y 759 774 -2% 247 255 -3% GROSS PR. 474 469* 62.5% 60.6% 117 108 15.4% 13.9% 92 76 12.1% 9.8% Gross mg EBIT Ebit mg NET PROFIT Net P.mg +5% +1% +9% +21% stated due to inclusion of manufacturing costs in COGS during 2003 +3%

158 155* 64.1% 60.7% 55 51 22.1% 20.0% 48 39 19.5% 15.5% +2% +7% +22% REVENUES 2003 AND Q4 2003 DETAIL Q4 BY 2003PRODUCT LINE VARIATION % FY 2003 2003/2002 FULL YEAR PRODUCT CATEGORY REPORTED AT COMP.FX REPORTED AT COMP.FX MEUR % ON TOTAL SALES MEUR % ON TOTAL SALES JEWELRY 307.6 41% 99.1 40% +4.7 +12.9 +0.4 +7.6 WATCHES 244.2 32% 83.3 34%

-16.6 -10.6 -15.5 -9.5 PERFUMES 136.7 18% 44.9 18% +3.1 +8.5 +12.2 +19.3 ACCESSORIE S 55.7 7% 15.9 6% +39.5 +48.9 +15.5 +22.3 ROYALTIES AND OTHER 15.1 2% 4.1 2% +4.8 N/A +4.4 N/A 759.3 100% 247.3 100% -1.9 +4.9 -3.1 +3.5 TOTAL % GROWTH VARIATION % 2003/2002 FOURTH QUARTER % GROWTH

REVENUES 2003 AND Q4 2003 DETAIL BY AREA % Q4 GEOGRAPHICAL 2003 VARIATION FY 2003 2003/2002 FULL YEAR GEOGRAPHICA L AREA REPORTED AT COMP.FX REPORTED AT COMP.FX MEUR % ON TOTAL SALES MEUR % ON TOTAL SALES ITALY 105.5 14% 34.7 14% -1.6 N/A -3.4 N/A EUROPE W/OUT ITALY 189.7 25% 55.5 22% -0.9 N/A -2.4 N/A AMERICAS 108.7 14% 39.7 16% -6.2 +9.2 +4.6

+21.4 JAPAN 166.4 22% 56.8 23% +0.9 +10.7 -6.6 +0.2 FAR EAST 142.6 19% 46.6 19% +7.5 +20.2 +7.0 +18.7 46.4 6% 14.0 6% -24.6 N/A -29.9 N/A 759.3 100% 247.3 100% -1.9 +4.9 -3.1 +3.5 MIDDLE EAST AND OTHER TOTAL % GROWTH VARIATION % 2003/2002 FOURTH QUARTER % GROWTH BVLGARI PROFIT AND LOSS OVERVIEW GROUP P/L FY 2003 MEUR

FY 2002 MEUR % GROWTH 2003/2002 % ON REVENUES 2003 REVENUES 759.3 773.6 -1.9% 100% GROSS MARGIN 474.4 468.8 +1.2% 62.5% PERSONNEL COSTS 117.8 117.2 +0.5% 15.5% ADV. AND PROMOTION 80.7 76.2 +5.9% 10.6% AMOR.&DEPR 39.1 40.7 -3.9% 5.2% OTHER GEN EXPENSES 119.9 127.1 -5.6% 15.8% TOT GENERAL EXP 357.5 361.2 -1.0% 47.1% EBIT 116.9 107.6

+8.6% 15.4% 7.9 17.4 -54.4% 1.0% 109.0 90.2 +20.8% 14.4% TAXES 16.9 14.1 +20.5% 2.3% NET PROFIT AFTER TAXES 92.1 76.1 +21.0% 12.1% NON OPER. EXP. INC.MIN. PROFIT BEFORE TAX GROSS MARGIN % WEIGH FY 2001 % WEIGH FY 2002 % WEIGH FY 2003 JEWELS 37.6 JEWELS 38.0 JEWELS 40.5 WATCHES 38.6 WATCHES 37.9 WATCHES 32.2 PERFUMES 16.5 PERFUMES

17.1 PERFUMES 18.0 ACCESSO R. 5.0 ACCESSO R. 5.2 ACCESSO R. 7.3 ROYA/OTH 2.3 ROYA/OTH 1.8 ROYA/OTH 2.0 TOTAL 100 TOTAL 100 TOTAL 100 63.8% 62.5% 60.6% FX RATES Market evolution 2003 AVERAGE FX RATE 2003vs20 02 AVERAGE EUR APPREC. EUR/USD 1.13 +20% 130.95 +11% EUR/JPY 2001 2002 2003 ADVERTISING AND PROMOTION INVESTEMENTS IN M.EURO AND AS A % ON REVENUES as well as INDICATION OF REVENUE GROWTH ON THE YEAR

82.3 19 1995 % on REV REVENUE GROWTH 9.6% +32% 24 33 50 1996 1997 10.2% 11.1% 13.6% +28% +23% +17% 1998 102.3 80.7 76.2 61 1999 2000 2001 2002 2003 12.6% 12.2% 13.4% 9.9% 10.6% +33% +39% +13% +1% - 2% REPORTED, +5% AT CONST.CURRENCY CONSOLIDATED AVERAGE TAX RATE 19.6% 15.6% 15.4% 2001 2002 2003 NET WORKING CAPITAL Me euro

2001 2002 2003 RECEIV. 124 143 132 INVENTOR Y 547 477 430 PAYABL. -119 -118 -109 TOT NWC 552 502 453 INVENTORY ROTATION DAYS 250 200 150 257 222 204 2002 2003 100 2001 CAPITAL EXPENDITURE M.EURO 2001 2002 2003 TANGIBLE 36 24 23 INTANGIBLE 12 9 15 TOTAL 48 33 38

CASH FLOW GENERATION M.EURO 131 140 117 107 120 100 80 60 48 38 33 40 20 0 2001 2002 INVESTMENTS 2003 CASH FLOW BALANCE SHEET HIGHLIGHTS M.EURO 60% 600 500 400 300 200 100 0 -100 -200 -300 475 GEARING 25% 548 8% 587 -45 -136 -284 2001 2002 Net Equity Net Cash 2003 BVLGARI 2003 ACTIVITIES BUSINESS MODEL AXES NEW - 2003 PLUS - 2003 PRODUCT LAUNCHES AND INNOVATION LAUNCH OF A NEW JEWELRY COLLECTION LINE EXTENSIONS IN JEWELRY

LINE EXTENSIONS IN WATCHES LAUNCH OF A NEW JEWELRY WATCH LINE EXT. IN FRAGRANCES, KITS LAUNCH OF A NEW MAJOR FEMININE FRAGR. NEW S/S AND F/W COLLECTIONS IN ACCESSORIES AND EYEWEAR LAUNCH OF A NEW HANDBAG COLL. NETWORK 13 NEW OPENINGS OF WHICH 4 STANDARD SIZE, 9 SMALL 2 IMPORTANT RELOCATIONS AND REFURBISHMENTS BRAND AWARENESS MIRROR, OMNIA AND Bzero1 CAMPAIGN ONGOING GROWTH OF EDITORIALS AND PRODUCT PLACEMENTS IN MOVIES VERY COST EFFECTIVE USE OF A&P TOOLS COST CONTROL EFFICIENCY FOCUS HIGHER DEGREE OF VERTICAL INTEGRATION ONGOING COST-CONTROL DISCIPLINE BVLGARI 2003 PRODUCTION ACTIVITIES RE-ENGINEERING ACQUISITION INTERNAL ATELIER WATCHMAKING VERTICAL INTEGRATION BOTH ON PRODUCTS AND PROCESSES CROVA 50% CAPACITY IMPROVEMENT FIRST INTERNALLY PRODUCED MOVEMENTS FOR BVLGARI GROUP GRANDE COMPLICATION WATCHES BVLGARI 2003 PRODUCT LAUNCHES NEW PRODUCT LAUNCHES JEWELRY WATCHES PERFUMES ACCESSORIES ALLEGRA (Coriandoli, Caramelle, Sassi, Metropolis, Tondo Shake, Optical and Theme lines) LUCEA WATCH OMNIA ASCOT HANDBAG COLL. HIGH JEWELRY Magnificient Jewels LINE EXTENSIONS Bzero1 Cufflinks-Gifts LUCEA Rings, pendants, earrings EAU PARFUMEE AU

THE BLANC RETTANGOLO BCI BVLGARI-BVLGARI DIAGONO PROF DIAGONO RETTANGOLO QUADRATO ALUMINIUM Bzero1 NEW VERSIONS NEW KITS (S.VALENTINE, SPRING, CHRISTMAS ETC) New S/S and F/W Colours for Bzero1, Dcollet, Geometrica handbags New silk items and eyewear collections THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND ADVERTISING CAMPAIGNS MIRROR Bzero1 MIRROR Bzero1 OMNIA Bzero1 eyewear 2003 NETWORK EVOLUTION DOS BOUTIQUES 2003 2002 NEW 92 83 +9 Of which 1 standard size/8 small FRANCHISEES 35 33 +2 Of which 1 standard size/1 small TOTAL STORES 127 116 +11 Of which 2 standard size/9 small TRAVEL RETAIL AND WHOLESALE STORES (POINTS OF SALE) 55 TOTAL STORES+P.O.S. 182 THIRD PARTY

RETAILERS PERFUME DOORS 53 +2 Both standard size 169 +13 Of which 4 standard size/9 small 2003 2002 NEW >770 >770 unchanged >15,000 14,400 About 600 2003 STORE REFURBISHMENTS and NEW OPENINGS NEW DIRECTLY OPERATED STORES (DOS) Sapporo Capri Nagoya Mitsukoshi Yokohama Sogo Fiumicino/3 Deagu Lotte Valencia El Corte Ingls Beijing Shanghai Q1 Q2 Q2 Q2 Q3 Q3 Q4 Q4 Q4 2003 2003 2003 2003 2003 2003 2003 2003 2003 shop in shop* free standing shop in shop shop in shop shop in airport shop in shop shop in shop shop in shop shop in shop

EXISTING DOS RE-LOCATIONS Los Angeles Madrid Q4 2003 free standing FLAGSHIP + BRAND AWARENESS + ENHANCE LOCAL MARKET PRESENCE ENHANCE LOCAL MARKET PRESENCE NEW FRANCHISEES Sao Paulo Manila Greenbelt Q4 2003 free standing* Q4 2003 free standing EMERGING MARKET EMERGING MARKET Q2 2003 shop in airport* Q4 2003 shop in airport* SELECTED TRAVEL HUB SELECTED TRAVEL HUB NEW TRAVEL RETAIL WHOLESALE STORES Munich Singapore 2 Q1 2003 free standing+flagship HIGH-END TRAVEL DESTINATION HIGH-END TRAVEL DESTINATION ENHANCE LOCAL MARKET PRESENCE ENHANCE LOCAL MARKET PRESENCE SELECTED TRAVEL HUB ENHANCE LOCAL MARKET PRESENCE ENHANCE LOCAL MARKET PRESENCE EMERGING MARKET EMERGING MARKET *standard size new stores, the remaining are smaller BVLGARI 2003 PR AND PROMOTION TYPOLOGY CORPORATE PR ACTIVITIES EVENTS GRAND OPENINGS EXHIBITION EDITORIALS AWARDS N OF EDITORIALS OMNIA EAU PARF.THE BL. MOVIES/TV PRODUCT PLACEMENTS MOVIES ORIGINAL SERIES VIP ENDORSEMENT S & AWARDS 2003 RED CARPET OSCARS/ ACADEMY CANNES VENEZIA GOLDEN GLOBE GODDESS EXH.MET AMERICAN CINEM.

DETAILS LOS ANGELES RODEO DRIVE MADRID BEIJING AND SHANGHAI SAO PAOLO BVLGARI, 100 YEARS OF DESIGN About 24.000 NOMINEE TO THE ACCADEMIA DEL PROFUMO AWARD NOMINEE TO THE ACCADEMIA DEL PROFUMO AWARD INTOLERABLE CRUELTY THE ITALIAN JOB WHAT A GIRL WANTS CONFIDENCE HOW TO LOSE A GUY MY HOUSE IN UMBRIA SERVING SARA AND NOW LADIES AND GENTLEMEN SEX AND THE CITY ADRIEN BRODY, BONO, HILLARY SWANK, CLAIRE FORLANI NICOLE KIDMAN, NADIA AUERMANN, ANDIE McDOWELL, NOEMIE LENOIR, KARINE SILLA CARRIE ANN-MOSS, JADE PINKETT, ELIZABETH TAYLOR, CLAUDIA CARDINALE KATE HUDSON, EMMA THOMPSON, LETICIA DOLERA, NAOMI WATTS, MARIA SCHRADER BEYONCE KNOWLES, BONO, JENNIFER ANISTON NICOLE KIDMAN NICOLE KIDMAN, CHLOE SEVIGNY, ERIKA CHRISTENSEN BVLGARI 2004 PRODUCT LAUNCHES NEW PRODUCT LAUNCHES JEWELRY WATCHES NEW COLLECTION TO BE PRESENTED IN BASEL APRIL NEW COLLECTION TO BE PRESENTED IN BASEL - APRIL PERFUMES ACCESSORIES ALREADY PRESENTED: Marryme (new engagement ring) LINE EXTENSIONS NEW VERSIONS ADVERTISING CAMPAIGNS ALREADY PRESENTED: Bvlgari-Bvlgari Charms New cufflinks ALREADY PRESENTED: BB TOURBILLON ALREADY PRESENTED: OMNIA BATH LINE MORE IN BASEL MORE IN BASEL APRIL ALREADY PRESENTED: Bzero1 Bzero1 pink gold (Special St.Val.edit.) ALREADY PRESENTED: Bzero1 ladies watch DIAGONO PROF. REGATTA DIAGONO PROF.GMT

FLYBACK ALREADY PRESENTED: NEW KITS St.Valentine, Spring, etc. MORE IN BASEL MORE IN BASEL MORE IN H2 ALREADY PRESENTED: New S/S and F/W Colors for Bzero1, Dcollet, Geometrica handbags New silk items and eyewear collections MORE IN H2 THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND NEW, DEDICATED CAMPAIGN +Mirror, Bzero1 campaigns NEW, DEDICATED CAMPAIGN +Mirror, Bzero1 campaigns New campaigns Bzero1 campaign eyewear BVLGARI 2004 PR AND PROMOTION TYPOLOGY CORPORATE PR ACTIVITIES EVENTS DETAILS GRAND OPENINGS IN THE PIPELINE EXHIBITION THE BVLGARI VINTAGE COLLECTION (MIAMI) EDITORIALS AWARDS MOVIES/TV PRODUCT PLACEMENTS VIP ENDORSEMENT S & AWARDS 2004 RED CARPET IN THE PIPELINE MOVIES SOMETHINGS GOTTA GIVE IN THE PIPELINE ORIGINAL SERIES SEX AND THE CITY OSCARS/ ACADEMY NICOLE KIDMAN, JOHNNY DEPP, JENNIFER GARNER, AMBER VALLETTA, DJIMON HOUNSOU KYLIE MINOGUE GRAMMY IN THE PIPELINE OTHERS QUESTIONS & ANSWERS ANNEX TURN THE PAGE FOR HISTORICAL DATA AND MORE P/L DATA

FOR MORE QUALITATIVE INFORMATION ON 2003 AND EARLY 2004 PRODUCT LAUNCHES, STORES, PRODUCT PLACEMENTS PLEASE SEE http://www.bulgari.com When printing the presentation please choose Pure B/W option HISTORICAL REPORTED REVENUES BY PRODUCT LINE % GROWTH AND % ON TOTAL SALES 1998 1999 2000 2001 2002 2003 +8 +30 +47 +26 +2.1 +4.7 WATCHES +15 +41 +43 -6 -1.0 -16.6 PERFUMES +63 +18 +15 +37 +4.8 +3.1 +292 +41 +53 +48 +3.7 +39.5 ROYALTIES AND OTHER +87 +25 +15 +11 -17.8 +4.8 BREAKDOWN

1998 1999 2000 2001 2002 2003 JEWELS 33 32 34 38 38 41 WATCHES 42 45 46 39 38 32 PERF. 19 16 14 16 17 18 ACCESS. 3 4 4 5 5 7 ROYALT. OTH 3 3 2 2 2 2 YOY GROWTH JEWELS ACCESSORIES HISTORICAL REPORTED REVENUES BY GEOGRAPHICAL AREA

% GROWTH AND % ON TOTAL SALES YOY GROWTH 1998 1999 2000 2001 2002 2003 ITALY +33 +17 +43 +19 +2.8 -1.6 EUROPE +15 +20 +38 +24 -3.3 -0.9 AMERICAS +35 +26 +28 -16 -2.0 -6.2 JAPAN +32 +60 +36 +7 +7.3 +0.9 +3 +58 +61 +27 -6.6 +7.5 M.EAST OTH +22 +19 +47

+59 +23.7 -24.6 BREAKDOWN 1998 1999 2000 2001 2002 2003 ITALY 14 13 13 14 14 14 EUROPE 27 24 24 26 25 25 AMERICAS 24 23 21 15 15 14 JAPAN 18 22 21 20 21 22 FAR EAST 12 14 17 18 17 19

5 4 4 7 8 6 FAR EAST M.EAST OT. PROFIT AND LOSS OVERVIEW: In Eur Millions EUR MIO. Q1 2003 Q2 2003 Q3 2003 Q4 2003 FY 2003 160.6 169.5 181.9 247.3 759.3 GROSS MARGIN 97.8 108.1 110 158.5 474.4 PERSONNEL COSTS 29.4 28.8 27.7 31.9 117.8 ADV. AND PROMOTION 14.0 20.1 15.5 31.1 80.7 8.5 10.1 10.3 10.2 39.1 OTHER GEN

EXPENSES 29.7 30.2 29.5 30.5 119.9 TOT GENERAL EXP 81.6 89.2 83.0 103.7 357.5 EBIT 16.2 18.9 27.0 54.8 116.9 3.2 3.1 1.4 0.2 7.9 13.0 15.8 25.6 54.6 109.0 1.6 2.2 6.7 6.4 16.9 11.4 13.6 18.9 48.2 92.1 REVENUES AMOR.&DEPR NON OPER. EXP. INC.MIN. PROFIT BEFORE TAX TAXES NET PROFIT AFTER TAXES

PROFIT AND LOSS OVERVIEW: % on Revenues % ON TOTAL REVENUES Q1 2003 Q2 2003 Q3 2003 Q4 2003 FY 2003 REVENUES 100% 100% 100% 100% 100% GROSS MARGIN 60.9% 63.8% 60.5% 64.1% 62.5% PERSONNEL COSTS 18.3% 17.0% 15.2% 12.9% 15.5% ADV. AND PROMOTION 8.7% 11.9% 8.5% 12.6% 10.6% AMOR.&DEPR 5.3% 5.9% 5.7% 4.1% 5.2% OTHER GEN EXPENSES 18.5% 17.9% 16.2% 12.4% 15.8%

TOT GENERAL EXP 50.8% 52.7% 45.6% 42.0% 47.1% EBIT 10.1% 11.1% 14.9% 22.1% 15.4% NON OPER. EXP. INC.MIN. 2.0% 1.8% 0.8% 0.1% 1.0% PROFIT BEFORE TAX 8.1% 9.3% 14.1% 22.0% 14.4% TAXES 1.0% 1.3% 3.7% 2.5% 2.3% NET PROFIT AFTER TAXES 7.1% 8.0% 10.4% 19.5% 12.1%

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