Lvmh 2010 Annual Report
LVMH
Passionate about creativity
ANNUAL REPORT 2010
CONTENTS
02 CHAIRMAN’S MESSAGE
06 FINANCIAL HIGHLIGHTS 08 INTERVIEW WITH ANTONIO BELLONI : THE AUTHENTICITY OF OUR BRANDS LINKING HERITAGE AND MODERNITY 10 CORPORATE GOVERNANCE 12 THE LVMH SHARE
14 REVIEW OF OPERATIONS 16 24 32 40 46
Wines & Spirits
FASHION & LEATHER GOODS
Perfumes & Cosmetics
Watches & Jewelry
SELECTIVE RETAILING
52 SUSTAINABLE DEVELOPMENT 54 Exchanging, sharing, moving forward 55 Human Resources LVMH – a magic alchemy between the future and tradition 63 Corporate sponsorship to support culture, youth and humanitarian action 64 Protecting the environment
71 CONSOLIDATED FINANCIAL STATEMENTS
LVMH
Passionate about creativity
01
CHAIRMAN’S MESSAGE
Bernard Arnault
I am pleased to see that our concept of creation, our passion to take our products to the highest echelon of quality and our desire to offer an exceptional retail experience at our brands, perfectly fits our customers’ expectations.
2010: A GREAT VINTAGE FOR LVMH
The desire for excellence, the recognition of know-how and fine craftsmanship and the culture of authentic quality are enjoying significant growth throughout the world. This trend will remain prominent in the years ahead, opening up for us magnificent perspectives for the future.
OUR BUSINESSES GREW AT A REMARKABLE PACE IN 2010, WHICH RESULTED IN OUR GROUP BREAKING ALL ITS HISTORICAL RECORDS. THIS GROWTH CAME ALONGSIDE SHARPLY HIGHER RESULTS AND A FURTHER IMPROVEMENT IN OUR FINANCIAL POSITION. IT ALLOWED THE HIRING OF AROUND 18 000 EMPLOYEES AND SOME MAJOR INVESTMENTS FOR THE FUTURE. THE EXCELLENT PERFORMANCE OF THE LVMH SHARE PRICE REFLECTS THE QUALITY OF WHAT WE HAVE ACHIEVED AND INVESTORS’ CONFIDENCE IN OUR STRATEGY AND OUR FUTURE. A FUTURE UNDERPINNED BY OUR UNIQUE, EVER MORE VIBRANT HERITAGE. A FUTURE THAT WE ARE BUILDING ON SOLID FOUNDATIONS, AS WE PURSUE OUR LONG TERM VISION.
For several months, LVMH has enjoyed
Passionate about creativity
ANNUAL REPORT 2010
CONTENTS
02 CHAIRMAN’S MESSAGE
06 FINANCIAL HIGHLIGHTS 08 INTERVIEW WITH ANTONIO BELLONI : THE AUTHENTICITY OF OUR BRANDS LINKING HERITAGE AND MODERNITY 10 CORPORATE GOVERNANCE 12 THE LVMH SHARE
14 REVIEW OF OPERATIONS 16 24 32 40 46
Wines & Spirits
FASHION & LEATHER GOODS
Perfumes & Cosmetics
Watches & Jewelry
SELECTIVE RETAILING
52 SUSTAINABLE DEVELOPMENT 54 Exchanging, sharing, moving forward 55 Human Resources LVMH – a magic alchemy between the future and tradition 63 Corporate sponsorship to support culture, youth and humanitarian action 64 Protecting the environment
71 CONSOLIDATED FINANCIAL STATEMENTS
LVMH
Passionate about creativity
01
CHAIRMAN’S MESSAGE
Bernard Arnault
I am pleased to see that our concept of creation, our passion to take our products to the highest echelon of quality and our desire to offer an exceptional retail experience at our brands, perfectly fits our customers’ expectations.
2010: A GREAT VINTAGE FOR LVMH
The desire for excellence, the recognition of know-how and fine craftsmanship and the culture of authentic quality are enjoying significant growth throughout the world. This trend will remain prominent in the years ahead, opening up for us magnificent perspectives for the future.
OUR BUSINESSES GREW AT A REMARKABLE PACE IN 2010, WHICH RESULTED IN OUR GROUP BREAKING ALL ITS HISTORICAL RECORDS. THIS GROWTH CAME ALONGSIDE SHARPLY HIGHER RESULTS AND A FURTHER IMPROVEMENT IN OUR FINANCIAL POSITION. IT ALLOWED THE HIRING OF AROUND 18 000 EMPLOYEES AND SOME MAJOR INVESTMENTS FOR THE FUTURE. THE EXCELLENT PERFORMANCE OF THE LVMH SHARE PRICE REFLECTS THE QUALITY OF WHAT WE HAVE ACHIEVED AND INVESTORS’ CONFIDENCE IN OUR STRATEGY AND OUR FUTURE. A FUTURE UNDERPINNED BY OUR UNIQUE, EVER MORE VIBRANT HERITAGE. A FUTURE THAT WE ARE BUILDING ON SOLID FOUNDATIONS, AS WE PURSUE OUR LONG TERM VISION.
For several months, LVMH has enjoyed