FIRST HALF

2016 RESULTS
July 26, 2016

GOOD FIRST HALF PERFORMANCE

Strong momentum in the US and continued growth in Europe

Excellent performance from Wines & Spirits in all regions

Success of iconic lines and new products at Louis Vuitton;

profitability remains at an exceptional level

Impressive growth of Fendi celebrating its 90th anniversary

Continued investments in fashion brands

Strong momentum at Parfums Christian Dior, led by successful innovations

Market share gains at Bvlgari and successful refocusing of TAG Heuers

core range
Exceptional progress at Sephora strengthening its position in all operating regions
and in the digital universe

FIRST HALF 2016 RESULTS 2

 BUSINESS
GROUPS
REVIEW

WINES & SPIRITS

Key figures
In millions of euros

Champagne and Wines Cognac and Spirits

REVENUE + 7%

Organic growth + 9%

H1 2016 856 1 200 2 056

H1 2015 830 1 100 1 930

PROFIT FROM RECURRING OPERATIONS

+ 17%
17%

H1 2016 178 387 565

H1 2015 169 313 482

FIRST HALF 2016 RESULTS 4

WINES & SPIRITS
H1 2016 Highlights

Excellent start to year with strong progress in the US

and better momentum in China

CHAMPAGNE & WINES

Champagne: volumes +3 %
Numerous innovations and good performance of prestige vintages
Solid growth in Europe and the US

COGNAC & SPIRITS

Hennessy: volumes +13 %
Excellent performance in the US
Rebound of final demand in China
Strengthened position of Glenmorangie and Ardbeg
in Scotch Whisky category

FIRST HALF 2016 RESULTS 5

WINES & SPIRITS

2016 Outlook

Maintain value creation strategy

Product innovation and new ways to consume

Normalization of situation in China

Focus on the US and new markets

Develop production facilities to support future growth

FIRST HALF 2016 RESULTS 6

FASHION & LEATHER GOODS
Key figures
In millions of euros

REVENUE - 1%

Organic growth 0%

H1 2016 5 885

H1 2015 5 933

PROFIT FROM RECURRING OPERATIONS - 2%

H1 2016 1 630

H1 2015 1 661

FIRST HALF 2016 RESULTS 7

FASHION & LEATHER GOODS

H1 2016 Highlights

Continued growth in Europe, except France affected by tourism

decline

Louis Vuitton: strong creative momentum

Success of iconic lines and new models
Excellent response to Cruise fashion show in Rio
New collection of Blossom watches & jewelry

Fendi: excellent performance led by product creativity

Cline: good progression of shoes and accessories lines

Loro Piana: opening of flagship store in Paris, Avenue Montaigne

Kenzo, Loewe and Berluti: sustained growth

Marc Jacobs and Donna Karan: continued repositioning of collections

FIRST HALF 2016 RESULTS 8

FASHION & LEATHER GOODS
2016 Outlook

Continue creative momentum of Louis Vuitton

Innovation in all product categories
Launch of Louis Vuittons perfume and
inauguration of creative workshop in Grasse
Qualitative evolution of the retail network

Fendi: exceptional fashion show at Rome's Trevi Fountain

Loro Piana: continued focus on materials of excellence and their sourcing

Givenchy, Kenzo, Cline: well-balanced development of all product categories

Continued creative reinforcement and investments for other brands

FIRST HALF 2016 RESULTS 9

PERFUMES & COSMETICS

Key figures
In millions of euros

REVENUE + 5%

Organic growth + 8%

H1 2016 2 337

H1 2015 2 228

PROFIT FROM RECURRING OPERATIONS

+ 9%

H1 2016 272

H1 2015 249

FIRST HALF 2016 RESULTS 10

PERFUMES & COSMETICS
H1 2016 Highlights

Parfums Christian Dior: strong momentum and market share gains

Continued strength of JAdore and Miss Dior
Tremendous success of Sauvage
Reinforced leadership of makeup internationally;
good performance of new foundation Forever and Dior Addict lipstick
Guerlain: creation of La Petite Robe Noire makeup line
and solid progress of skincare line Orchide Impriale
Exceptional start for Benefits Brow Collection
Sustained performance of makeup for Givenchy
thanks to success of Prisme Libre line
Strong growth of Make Up For Ever; new makeup bar concept
Rapid advance of Kat Von D and Marc Jacobs Beauty in makeup
Fresh: good start in Europe

FIRST HALF 2016 RESULTS 11

PERFUMES & COSMETICS

2016 Outlook

Continue strong momentum in innovation

Sustained media investment around new creations and iconic products

Parfums Christian Dior: launch of the new Rouge Dior,

emblematic lipstick of the brand

Guerlain: launch of new olfactory variation of La Petite Robe Noire

New perfume for women - Kenzo World, first collaboration with Kenzo Mode
creative directors

Benefit: worldwide rollout of new Brow Collection

FIRST HALF 2016 RESULTS 12

WATCHES & JEWELRY
Key figures
In millions of euros

REVENUE + 4%

Organic growth + 4%

H1 2016 1 609

H1 2015 1 552

PROFIT FROM RECURRING OPERATIONS 0%

H1 2016 205

H1 2015 205

FIRST HALF 2016 RESULTS 13

WATCHES & JEWELRY

H1 2016 Highlights

Market share gains across brands, successful refocusing

of TAG Heuers core product range

Performance of Bvlgari well above the market, driven by success

of B Zero 1 and Diva jewelry lines, reopening of London Bond Street store

Excellent response to new products at TAG Heuer in iconic lines

Formula 1, Carrera and Aquaracer; confirmed success of Connected
smartwatch

Enrichment at Hublot of Classic Fusion and Big Bang lines

Chaumet: acceleration in Asia and Middle East

FIRST HALF 2016 RESULTS 14

WATCHES & JEWELRY
2016 Outlook

Further market share gains in difficult environment for Watches

Sustained investments in communication for TAG Heuer and double

production capacity for the Connected smartwatch

Strengthen visibility of Hublot at sporting events

Reinforce iconic line Serpenti for Bvlgari and gradual startup

of new jewelry workshop in Valenza

New concept store for Chaumet at end of year

FIRST HALF 2016 RESULTS 15

SELECTIVE RETAILING
Key figures
In millions of euros

REVENUE + 4%

Organic growth + 5%

H1 2016 5 480

H1 2015 5 275

PROFIT FROM RECURRING OPERATIONS - 5%

H1 2016 410

H1 2015 433

FIRST HALF 2016 RESULTS 16

SELECTIVE RETAILING
H1 2016 Highlights

SEPHORA
Strong revenue and profit growth; market share gains in all regions
Double-digit comparable store growth in North America and Middle East
Rapid growth of online sales
Opening of flagship stores in Boston and Paris,
inauguration of first point of sale in Switzerland

DFS
Revenue and profitability penalized by difficult tourism context in Asia
Deployment of new marketing and loyalty programs
Opening of a new T Galleria in Cambodia, the first luxury department
store in that country

FIRST HALF 2016 RESULTS 17

SELECTIVE RETAILING
2016 Outlook

SEPHORA
Continued innovation in products, and development of exclusive
and personalized services
Acceleration of initiatives in mobile
Further expansion of store network

DFS
Continued transformation of product offering and adapting network to
clientele
Opening of a T Galleria in Venice, first DFS presence in Europe
Complete expansion of T Galleria - City of Dreams in Macao
Further develop loyalty programs and digital services

FIRST HALF 2016 RESULTS 18

CONSOLIDATED
KEY FIGURES
H1 2016

H1 2016 REVENUE
BY BUSINESS GROUP

Reported Organic
In millions of euros
H1 2015 H1 2016 growth growth*

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%

OTHERS & ELIMINATIONS (211) (179) - -

TOTAL LVMH 16 707 17 188 +3% +4%

* With comparable structure and exchange rates. The exchange rate impact is -2 % and the perimeter effect is 1 %.
** Reclassification of Kendo cosmetics company from Selective Retailing to Perfumes & Cosmetics.

FIRST HALF 2016 RESULTS 20

H1 2016 REVENUE BY QUARTER
BY BUSINESS GROUP

ORGANIC GROWTH VERSUS

SAME PERIOD OF 2015

In millions of euros Q1 2016 Q2 2016 H1 2016

WINES & SPIRITS + 6% + 13% +9%

FASHION & LEATHER GOODS 0% + 1% 0%

PERFUMES & COSMETICS + 9% + 6% +8%

WATCHES & JEWELRY + 7% + 2% +4%

SELECTIVE RETAILING + 4% + 7% +5%

TOTAL LVMH + 3% + 4% +4%

FIRST HALF 2016 RESULTS 21

H1 2016 REVENUE BREAKDOWN

BY REGION
In % of total revenue

17%
26% 10% EUROPE
(excl. France)
FRANCE
UNITED STATES
(inc. Hawaii) 28% 7%
JAPAN
ASIA
(excl. Japon)

12%
OTHER
MARKETS

FIRST HALF 2016 RESULTS 22

REVENUE EVOLUTION
BY REGION

ORGANIC GROWTH VERSUS

SAME PERIOD OF 2015

Q1 2016 Q2 2016 H1 2016

UNITED STATES* + 6% + 7% + 7%

JAPAN + 6% - 5% 0%

ASIA (EXCL. JAPAN) - 2% + 3% 0%

EUROPE + 7% + 3% + 5%
*Excl. Hawaii

FIRST HALF 2016 RESULTS 23

SUMMARIZED
INCOME STATEMENT

In millions of euros
H1 2015 H1 2016 Change %

REVENUE 16 707 17 188 + 3%

GROSS MARGIN 10 826 11 271 + 4%
Marketing and selling expenses (6 601) (6 935) + 5%
General and administrative expenses (1 267) (1 381) + 9%
Equity investment income (3) 4

PROFIT FROM RECURRING OPERATIONS* 2 955 2 959 0%

Other operating income and expenses (64) (40)
OPERATING PROFIT 2 891 2 919 + 1%
Net financial income (expense) (259) (166)
Income taxes (880) (890)

NET PROFIT BEFORE MINORITY INTERESTS 1 752 1 863 + 6%

Minority interests (172) (152)

GROUP SHARE OF NET PROFIT 1 580 1 711 + 8%

* The change between the first half 2015 and the first half 2016 covers
a currency effect of + 60M and a structure effect of -4m .

FIRST HALF 2016 RESULTS 24

PROFIT FROM RECURRING OPERATIONS
BY BUSINESS GROUP

In millions of euros H1 2015 H1 2016 Change %

WINES & SPIRITS 482 565 + 17%

FASHION & LEATHER GOODS 1 661 1 630 - 2%

PERFUMES & COSMETICS 249 272 + 9%

WATCHES & JEWELRY 205 205 0%

SELECTIVE RETAILING 433 410 - 5%

OTHERS & ELIMINATIONS (75) (123) na

TOTAL LVMH 2 955 2 959 0%

FIRST HALF 2016 RESULTS 25

CHANGE IN NET FINANCIAL INCOME

(EXPENSE)

In millions of euros H1 2015 H1 2016 Change (M)

COST OF NET FINANCIAL DEBT (52) (33) +19

INEFFECTIVE PORTION OF FOREIGN
CURRENCY HEDGES (296) (132) +164
NET GAIN/(LOSS) RELATING TO AFS* ASSETS
AND OTHER FINANCIAL INSTRUMENTS, 103 15 - 88
DIVIDENDS RECEIVED

OTHER ITEMS - NET (14) (16) -2

NET FINANCIAL INCOME
(259) (166) +93
(EXPENSE)
* AFS: Available for sale

FIRST HALF 2016 RESULTS 26

SOLID
FINANCIAL STRUCTURE

In billions of euros

57.8 57.8
Increased total equity linked to
increase in results

Reduced net debt versus end of 45%

Total equity
June 2015 Non
current assets 68%

Rise in non current assets notably

due to reevaluation of goodwill
Non current
Stable inventories compared to 33% liabilities
June 2015 Inventories 18%
Current
Other current 22% liabilities
assets 14%
ASSETS LIABILITIES
June 30, 2016

FIRST HALF 2016 RESULTS 27

ANALYSIS OF CASH FLOW

FROM OPERATIONS

H1 2015 H1 2016 Change (M)

In millions of euros
CASH FROM OPERATIONS BEFORE CHANGES
IN WORKING CAPITAL
3 368 3 650 + 282
Net interest paid (51) (23) + 28
Income taxes paid (801) (884) - 83
NET CASH FROM OPERATIONS BEFORE
CHANGES IN WORKING CAPITAL
2 516 2 743 + 227
Working capital requirements (1 022) (1 111) - 89
Operating investments (816) (871) - 55

FREE CASH FLOW* 678 761 + 83

* Before available for sale financial assets and investments, transactions relating to equity and financing
activities

Interim dividend of 1.40 euro per share

FIRST HALF 2016 RESULTS 28

NET FINANCIAL DEBT

In millions of euros
6 470
6 034

5 309 5 303
4 961 4 805
25%
4 233 4 235
23%
21%
20%
19% 19%
17%
16%

31/12/2012 30/06/2013 31/12/2013 30/06/2014 31/12/2014 30/06/2015 31/12/2015 30/06/2016

Gearing

FIRST HALF 2016 RESULTS 29

CONCLUSION
2016 OUTLOOK

Confidence for 2016, despite an uncertain economic, monetary

and geopolitical context
Maintain rigorous cost management
Continue creative momentum of brands
- Enhance iconic lines
- Ongoing communication
- Focus on customer experience
- Further strengthen distribution

OBJECTIVE: REINFORCE OUR LEADERSHIP POSITION

IN GLOBAL LUXURY GOODS MARKET

FIRST HALF 2016 RESULTS 31