LVMH: Organic revenue growth of 4% in the first half of 2016
Paris, 26 July 2016

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded
revenue of €17.2 billion in the first half of 2016, an increase of 3%. Organic revenue growth
was 4% compared to the same period in 2015. The American market is dynamic, while
Europe remains on track, with the exception of France, which has been affected by a decrease
in tourism. Asia improved steadily during the period.

In the second quarter, revenue increased by 2% compared to the same period in 2015. Organic
revenue growth was 4% marking a slight increase compared with the first quarter.

Profit from recurring operations was €2 959 million for the first half of 2016, consistent with
the same period in 2015. Group share of net profit amounted to €1 711 million, an increase of
8%.

Bernard Arnault, Chairman and CEO of LVMH, commented:

“LVMH’s results for the first half of 2016 reflect, more than ever, the strength of our business
model, which allows us to continue to grow even during an unstable geopolitical environment
and economic and monetary uncertainties. The diversity of our businesses, the entrepreneurial
style of our brands and the agility of our organization all contribute to the growth of the
Group. By remaining vigilant, we face the second half of the year with confidence and count
on the quality of our products and the talent of our teams to further strengthen our leadership
in the world of high quality products in 2016.”

Highlights of the first half of 2016 include:
• Strong momentum in the United States, and continued growth in the European market,
• Excellent performance from Wines and Spirits in all regions,
• Success of iconic lines and new products at Louis Vuitton, where profitability remains at
an exceptional level,
• Impressive growth of Fendi, which celebrates its 90th year,
• Continued investment in the fashion brands,
• Strong momentum at Parfums Christian Dior, led by successful innovations,
• Market share gains at Bvlgari and the successful refocusing of TAG Heuer on its core
range,
• Exceptional progress at Sephora which is strengthening its position in all operating
regions and in the digital universe,
• Cash from operations before changes in working capital of €3.7 billion, an increase of 8%,
• Net debt to equity ratio of 20% as of the end of June 2016.




1/11
Key figures
First half First half % change
Euro millions
2015 2016

Revenue 16 707 17 188 +3%
Profit from recurring operations 2 955 2 959 0%
Group share of net profit 1 580 1 711 +8%
Cash from operations* 3 368 3 650 +8%
Net Financial Debt 6 034 5 303 - 12 %
Total Equity 24 445 26 073 + 7%
* Before changes in working capital.

Revenue by business group:
First half First half % change
Euro millions Reported Organic*
2015 2016

Wines & Spirits 1 930 2 056 +7% +9%

Fashion & Leather Goods 5 933 5 885 -1% 0%

Perfumes & Cosmetics 2 228 2 337 +5% + 8%

Watches & Jewelry 1 552 1 609 +4% +4%

Selective Retailing 5 275 5 480 + 4% +5%

- -
Other activities and eliminations (211) (179)

Total LVMH 16 707 17 188 +3% +4%
* With comparable structure and constant exchange rates. The exchange rate impact is -2% and the structural
impact is 1%.

Profit from recurring operations by business group:
First half First half % change
Euro millions
2015 2016

482 565
Wines & Spirits + 17 %

1 661 1 630
Fashion & Leather Goods -2%

249 272
Perfumes & Cosmetics +9%

205 205
Watches & Jewelry 0%

433 410
Selective Retailing -5%

(75) (123)
Other activities and eliminations -

2 955 2 959
Total LVMH 0%


2/11
Wines & Spirits: excellent start to the year with strong growth in the United States, and
improved momentum in China

The Wines & Spirits business group recorded organic revenue growth of 9%. On a reported
basis, revenue growth was 7% and profit from recurring operations increased by 17%. The
champagne business had a good start to the year, especially in Europe and the US. The
prestige vintages performed particularly well. Hennessy recorded strong growth in the
American market and improved momentum in China following 2015 which was marked by a
period of destocking by distributors. Other spirits, Glenmorangie and Belvedere continue their
development.


Fashion & Leather Goods: excellent creative momentum at Louis Vuitton and further
strengthening of other brands

The Fashion & Leather Goods business group recorded stable revenue and profit from
recurring operations. Louis Vuitton continued to illustrate its creative momentum across its
collections. Leather goods’ performance was based on both the continued development of its
iconic models, as well as on the success of its more recent creations. The presentation of the
Cruise Collection in the Niterói Museum of Contemporary Art in Brazil was a highlight of the
first half. Loro Piana opened a flagship store on Avenue Montaigne in Paris. Fendi recorded
an excellent performance in the first half. Céline and Kenzo showed strong growth. Marc
Jacobs continued the repositioning of its collections. Other brands are further strengthening
their positions. An agreement was announced for the sale of the Donna Karan business.


Perfumes & Cosmetics: innovations meet with great success.

The Perfumes & Cosmetics business group recorded organic revenue growth of 8%. On a
reported basis, revenue growth was 5% and profit from recurring operations increased by 9%.
Christian Dior gained market share in all regions, underscoring its strong performance, driven
by the international success of Sauvage and the vitality of its iconic perfumes, J’adore and
Miss Dior. Its new fragrance, Poison Girl, and its latest makeup creations also contributed to
the excellent performance of the brand. Strengthened by the success of its perfumes, Guerlain
introduced La Petite Robe Noire to the makeup market. Benefit’s new eyebrow collection
received an excellent reception. Make Up For Ever and the portfolio of Kendo brands grew
rapidly.


Watches & Jewelry: market share gains of our brands and successful refocusing of TAG
Heuer in its core offering

In the first half of 2016, the Watches & Jewelry business group recorded organic revenue
growth of 4%. On a reported basis, revenue growth was 4% and profit from recurring
operations was stable. Bvlgari continued its growth and outperformed the market. The brand
maintained its strong creative momentum, notably with the enhancements to the iconic B Zero
1 and Diva collections. With good progress in a difficult market, TAG Heuer gained market
share and recorded the first positive effects of the development of its core offering. Its new
Connected watch was an immense success.




3/11
Selective Retailing: excellent performance at Sephora; DFS impacted by the difficult
tourist environment in Asia.

The Selective Retailing business group recorded organic revenue growth of 5%. On a
reported basis, revenue growth was 4% and profit from recurring operations decreased by 5%.
Sephora continued to gain market share in all regions, recording double digit-growth in its
revenue and profits. Its performances were outstanding throughout the world. DFS continues
to face challenges in Asia due to the difficult environment for tourism, particularly in Macau
and Hong Kong. Its geographic expansion continues with the opening of a new T Galleria in
Siem Reap in Cambodia and another will open in the coming months in Venice, Italy.

Outlook 2016

Despite the context of geopolitical and currency uncertainties, LVMH will continue to gain
market share thanks to the numerous product launches planned before the end of the year and
its geographic expansion in promising markets, while continuing to manage costs.

Our strategy of focusing on quality across all our activities, combined with the dynamism and
unparalleled creativity of our teams, will enable us to reinforce, once again in 2016, LVMH’s
global leadership position in luxury goods.

An interim dividend of 1.40 Euro will be paid on December 1st, 2016.

Regulated information related to this press release, the half year results presentation and the
half year financial statement are available on our internet site www.lvmh.com

Limited review procedures have been carried out, the related report will be issued following
the Board meeting.




4/11
ANNEXE
LVMH – Revenue by business group and by quarter
First Half 2016

Other activities &
Wines & Fashion & Perfumes & Watches & Selective
Total
(Euro millions)
Spirits Leather Goods Cosmetics Jewelry Retailing Eliminations
First quarter 1 033 2 965 1 213 774 2 747 (112) 8 620
Second quarter 1 023 2 920 1 124 835 2 733 (67) 8 568
Total revenue 2 056 5 885 2 337 1 609 5 480 (179) 17 188


First Half 2016 (organic growth compared to the first half 2015)

Selective
Wines & Fashion & Perfumes & Watches & Other Activities &
Total
Spirits Leather Goods Cosmetics Jewelry Retailing Eliminations
First quarter +6% 0% +9% +7% +4% - +3%
Second quarter +13% +1% +6% +2% +7% - +4%
Total revenue +9% 0% +8% +4% +5% - +4%



First Half 2015

Perfumes & Other activities &
Wines & Fashion & Watches & Selective
Total
(Euro millions)
Spirits Leather Goods Cosmetics* Jewelry Retailing* Eliminations
First quarter 992 2 975 1 129 723 2 648 (144) 8 323
Second quarter 938 2 958 1 099 829 2 627 (67) 8 384
Total revenue 1 930 5 933 2 228 1 552 5 275 (211) 16 707
* reclassification of the cosmetics business Kendo from Selective Retailing to Perfumes & Cosmetics.




5/11
CONSOLIDATED FINANCIAL STATEMENTS

The notes to condensed consolidated accounts are included in 2016 interim financial report, available on our Internet site www.lvmh.com


CONSOLIDATED INCOME STATEMENT

Notes June 30, 2016 Dec. 31, 2015 June 30, 2015
(EUR millions, except for earnings per share)

Revenue 23 17,188 35,664 16,707
Cost of sales (5,917) (12,553) (5,881)
Gross margin 11,271 23,111 10,826
Marketing and selling expenses (6,935) (13,830) (6,601)
General and administrative expenses (1,381) (2,663) (1,267)
Income (loss) from joint ventures and associates 7 4 (13) (3)
Profit from recurring operations 23-24 2,959 6,605 2,955
Other operating income and expenses 25 (40) (221) (64)
Operating profit 2,919 6,384 2,891
Cost of net financial debt (33) (78) (52)
Other financial income and expenses (133) (336) (207)
Net financial income (expense) 26 (166) (414) (259)
Income taxes 27 (890) (1,969) (880)
Net profit before minority interests 1,863 4,001 1,752
Minority interests 17 (152) (428) (172)
Net profit, Group share 1,711 3,573 1,580


Basic Group share of net earnings per share (EUR) 28 3.40 7.11 3.15
Number of shares on which the calculation is based 502,956,395 502,395,491 502,206,295
Diluted Group share of net earnings per share (EUR) 28 3.39 7.08 3.13
Number of shares on which the calculation is based 504,892,969 504,894,946 504,727,629




6/11
CONSOLIDATED FINANCIAL STATEMENTS

The notes to condensed consolidated accounts are included in 2016 interim financial report, available on our Internet site www.lvmh.com


CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES

June 30, 2016 Dec. 31, 2015 June 30, 2015
(EUR millions)

Net profit before minority interests 1,863 4,001 1,752

Translation adjustments (147) 631 706
Tax impact (9) 135 128
(156) 766 834
Change in value of available for sale financial assets (73) (32) 23
Amounts transferred to income statement (20) (91) (89)
Tax impact 5 20 18
(88) (103) (48)
Change in value of hedges of future foreign currency cash flows 39 (63) 9
Amounts transferred to income statement (12) 33 (6)
Tax impact (3) 3 3
24 (27) 6
Gains and losses recognized in equity, transferable to income statement (220) 636 792

Change in value of vineyard land - 64 -
Amounts transferred to consolidated reserves - - -
Tax impact - (21) -
- 43 -
Employee benefit commitments: change in value resulting
from actuarial gains and losses (81) 42 -
Tax impact 23 (16) -
(58) 26 -
Gains and losses recognized in equity, not transferable to income statement (58) 69 -

Comprehensive income 1,585 4,706 2,544
Minority interests (124) (558) (257)
Comprehensive income, Group share 1,461 4,148 2,287




7/11
CONSOLIDATED FINANCIAL STATEMENTS

The notes to condensed consolidated accounts are included in 2016 interim financial report, available on our Internet site www.lvmh.com


CONSOLIDATED BALANCE SHEET

ASSETS Notes June 30, 2016 Dec. 31, 2015 June 30, 2015
(EUR millions)

Brands and other intangible assets 3 13,519 13,572 13,502
Goodwill 4 10,611 10,122 9,723
Property, plant and equipment 6 11,283 11,157 10,697
Investments in joint ventures and associates 7 754 729 526
Non-current available for sale financial assets 8 643 574 622
Other non-current assets 9 669 552 521
Deferred tax 2,066 1,945 1,955
Non-current assets 39,545 38,651 37,546
Inventories and work in progress 10 10,669 10,096 10,381
Trade accounts receivable 11 2,161 2,521 2,086
Income taxes 338 384 422
Other current assets 12 2,228 2,355 2,090
Cash and cash equivalents 14 2,882 3,594 2,556
Current assets 18,278 18,950 17,535

Total assets 57,823 57,601 55,081


LIABILITIES AND EQUITY Notes June 30, 2016 Dec. 31, 2015 June 30, 2015
(EUR millions)

Share capital 15.1 152 152 152
Share premium account 15.1 2,619 2,579 2,669
Treasury shares and LVMH share-settled derivatives 15.2 (271) (240) (349)
Cumulative translation adjustment 15.4 1,005 1,137 1,240
Revaluation reserves 831 949 978
Other reserves 18,615 16,189 16,862
Net profit, Group share 1,711 3,573 1,580
Equity, Group share 24,662 24,339 23,132
Minority interests 17 1,411 1,460 1,313
Total equity 26,073 25,799 24,445
Long-term borrowings 18 4,165 4,511 5,201
Non-current provisions 19 1,996 1,950 2,354
Deferred tax 4,667 4,685 4,822
Other non-current liabilities 20 8,470 7,957 7,260
Non-current liabilities 19,298 19,103 19,637
Short-term borrowings 18 4,579 3,769 3,695
Trade accounts payable 21.1 3,607 3,960 3,374
Income taxes 411 640 383
Current provisions 19 353 421 320
Other current liabilities 21.2 3,502 3,909 3,227
Current liabilities 12,452 12,699 10,999

Total liabilities and equity 57,823 57,601 55,081




8/11
CONSOLIDATED FINANCIAL STATEMENTS

The notes to condensed consolidated accounts are included in 2016 interim financial report, available on our Internet site www.lvmh.com


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(EUR millions) Number Share Share Treasury Cumulative Revaluation reserves Net profit Total equity
of shares capital premium shares and translation and other
account LVMH- adjustment Available Hedges Vineyard Employee reserves Group Minority Total
share for sale of future land benefit share interests
settled financial foreign commit-
derivatives assets currency ments
cash flows
Notes 15.1 15.2 15.4 17
As of December 31, 2014 507,711,713 152 2,655 (374) 492 207 14 931 (133) 17,819 21,763 1,240 23,003
Gains and losses
recognized in equity 645 (103) (25) 33 25 - 575 130 705
Net profit 3,573 3,573 428 4,001
Comprehensive income - - - 645 (103) (25) 33 25 3,573 4,148 558 4,706
Stock option plan
and similar expenses 35 35 2 37
(Acquisition)/disposal of
treasury shares and LVMH-share
settled derivatives 23 (13) 10 - 10
Exercise of LVMH share
subscription options 552,137 35 35 - 35
Retirement of LVMH shares (1,124,740) (111) 111 - - -
Capital increase in subsidiaries - 89 89
Interim and final dividends paid (1,659) (1,659) (229) (1,888)
Changes in control
of consolidated entities (9) (9) 1 (8)
Acquisition and disposal
of minority interests’ shares 5 5 (3) 2
Purchase commitments
for minority interests’ shares 11 11 (198) (187)
As of December 31, 2015 507,139,110 152 2,579 (240) 1,137 104 (11) 964 (108) 19,762 24,339 1,460 25,799
Gains and losses
recognized in equity (132) (88) 22 - (52) - (250) (28) (278)
Net profit 1,711 1,711 152 1,863
Comprehensive income - - - (132) (88) 22 - (52) 1,711 1,461 124 1,585
Stock option plan
and similar expenses 20 20 1 21
(Acquisition)/disposal of
treasury shares and LVMH-share
settled derivatives (39) (8) (47) - (47)
Exercise of LVMH share
subscription options 688,700 48 48 - 48
Retirement of LVMH shares (158,811) (8) 8 - - -
Capital increase in subsidiaries - 6 6
Interim and final dividends paid (1,106) (1,106) (222) (1,328)
Changes in control
of consolidated entities 10 10 20 30
Acquisition and disposal
of minority interests’ shares (5) (5) (1) (6)
Purchase commitments
for minority interests’ shares (58) (58) 23 (35)
As of June 30, 2016 507,668,999 152 2,619 (271) 1,005 16 11 964 (160) 20,326 24,662 1,411 26,073


As of December 31, 2014 507,711,713 152 2,655 (374) 492 207 14 931 (133) 17,819 21,763 1,240 23,003
Gains and losses
recognized in equity 748 (48) 7 707 85 792
Net profit 1,580 1,580 172 1,752
Comprehensive income - - - 748 (48) 7 - - 1,580 2,287 257 2,544
Stock option plan
and similar expenses 18 18 1 19
(Acquisition)/disposal of
treasury shares and LVMH-share
settled derivatives 24 (13) 11 - 11
Exercise of LVMH share
subscription options 271,426 15 15 - 15
Retirement of LVMH shares (41,848) (1) 1 - - -
Capital increase in subsidiaries - 3 3
Interim and final dividends paid (980) (980) (198) (1,178)
Changes in control
of consolidated entities (9) (9) - (9)
Acquisition and disposal
of minority interests’ shares - (1) (1)
Purchase commitments
for minority interests’ shares 27 27 11 38
As of June 30, 2015 507,941,291 152 2,669 (349) 1,240 159 21 931 (133) 18,442 23,132 1,313 24,445




9/11
CONSOLIDATED FINANCIAL STATEMENTS

The notes to condensed consolidated accounts are included in 2016 interim financial report, available on our Internet site www.lvmh.com


CONSOLIDATED CASH FLOW STATEMENT

Notes June 30, 2016 Dec. 31, 2015 June 30, 2015
(EUR millions)

I. OPERATING ACTIVITIES AND OPERATING INVESTMENTS
Operating profit 2,919 6,384 2,891
Income/(loss) and dividends from joint ventures and associates 7 7 27 8
Net increase in depreciation, amortization and provisions 843 2,081 850
Other computed expenses (82) (456) (351)
Other adjustments (37) (91) (30)
Cash from operations before changes in working capital 3,650 7,945 3,368
Cost of net financial debt: interest paid (23) (75) (51)
Income taxes paid (884) (1,807) (801)
Net cash from operating activities before changes in working capital 2,743 6,063 2,516
Change in working capital 14.2 (1,111) (429) (1,022)

Net cash from operating activities 1,632 5,634 1,494
Operating investments 14.3 (871) (1,955) (816)
Net cash from operating activities and operating investments (free cash flow) 761 3,679 678
II. FINANCIAL INVESTMENTS
Purchase of non-current available for sale financial assets (a) 8, 13 (7) (78) (18)
Proceeds from sale of non-current available for sale financial assets 8 64 68 39
Dividends received 2 4 4
Income taxes paid related to financial investments (260) (265) (15)
Impact of purchase and sale of consolidated investments (110) (240) (23)
Net cash from (used in) financial investments (311) (511) (13)
III. TRANSACTIONS RELATING TO EQUITY
Capital increases of LVMH SE 15.1 48 35 15
Capital increases of subsidiaries subscribed by minority interests 17 6 81 3
Acquisition and disposals of treasury shares
and LVMH share-settled derivatives 15.2 (51) 1 3
Interim and final dividends paid by LVMH SE 15.3 (1,106) (1,671) (992)
Income taxes paid related to interim and final dividends paid (92) (304) (258)
Interim and final dividends paid to minority interests
in consolidated subsidiaries 17 (222) (228) (195)
Purchase and proceeds from sale of minority interests 2 (11) (4) -
Net cash from (used in) transactions relating to equity (1,428) (2,090) (1,424)
Change in cash before financing activities (978) 1,078 (759)
IV. FINANCING ACTIVITIES
Proceeds from borrowings 927 1,008 807
Repayment of borrowings (414) (2,443) (1,451)
Purchase and proceeds from sale of current available for sale financial assets (a) 8, 13 (115) (3) (241)
Net cash from (used in) financing activities 398 (1,438) (885)
V. EFFECT OF EXCHANGE RATE CHANGES (46) (33) 94
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV+V) (626) (393) (1,550)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 14.1 3,390 3,783 3,783
CASH AND CASH EQUIVALENTS AT END OF PERIOD 14.1 2,764 3,390 2,233
TOTAL INCOME TAXES PAID (1,236) (2,376) (1,074)

(a) The impacts on cash of non-current available for sale financial assets used for hedging net financial debt (see Note 18) are presented under the heading entitled “IV. Financing activities”,
as “Purchase and proceeds from sale of current available for sale financial assets”.




10/11
LVMH
LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes
Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem,
Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Wenjun, Belvedere,
Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton and Bodega
Numanthia. Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy,
Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana.
LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums
Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics,
Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other
activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Royal Van Lent and Cheval Blanc hotels.
LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred,
Hublot and De Beers Diamond Jewellers Ltd, a joint venture created with the world’s leading diamond group.

"Certain information included in this release is forward looking and is subject to important risks and
uncertainties and factors beyond our control or ability to predict, that could cause actual results to differ
materially from those anticipated, projected or implied. It only reflects our views as of the date of this
presentation. No undue reliance should therefore be based on any such information, it being also agreed that we
undertake no commitment to amend or update it after the date hereof.”


Contacts:
Analysts and Chris Hollis + 33 1.4413.2122
investors: LVMH

Media:
France : Michel Calzaroni/Olivier Labesse/ + 33 1.4070.1189
Sonia Fellmann/Hugues Schmitt
DGM Conseil

UK: Hugh Morrison / Charlotte McMullen +44 7921.881.800
Montfort Communications
Italy: Michele Calcaterra/ Matteo Steinbach +39 02 6249991
SEC and Partners
US: James Fingeroth/Molly Morse/ +1 212.521.4800
Anntal Silver
Kekst & Company




11/11