THE BVLGARI GROUP

1
THE BVLGARI GROUP

• Fiscal Year 2003
• Rome, 29 March 2004

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2
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.currency 759 774 -2 5 247 255 -3 3
GROSS PR. Gross mg 474 62.5 469 60.6 1 158 64.1 155 60.7 2
EBIT Ebit mg 117 15.4 108 13.9 9 55 22.1 51 20.0 7
NET PROFIT Net P.mg 92 12.1 76 9.8 21 48 19.5 39 15.5 22
restated due to inclusion of manufacturing costs
in COGS during 2003
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REVENUES 2003 AND Q4 2003DETAIL BY PRODUCT LINE
PRODUCT CATEGORY FY 2003 FY 2003 Q4 2003 Q4 2003 VARIATION 2003/2002 FULL YEAR VARIATION 2003/2002 FULL YEAR VARIATION 2003/2002 FOURTH QUARTER VARIATION 2003/2002 FOURTH QUARTER
PRODUCT CATEGORY FY 2003 FY 2003 Q4 2003 Q4 2003 REPORTED AT COMP.FX REPORTED AT COMP.FX
PRODUCT CATEGORY MEUR ON TOTAL SALES MEUR ON TOTAL SALES GROWTH GROWTH GROWTH GROWTH
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
ACCESSORIES 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
TOTAL 759.3 100 247.3 100 -1.9 4.9 -3.1 3.5
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REVENUES 2003 AND Q4 2003DETAIL BY
GEOGRAPHICAL AREA
GEOGRAPHICAL AREA FY 2003 FY 2003 Q4 2003 Q4 2003 VARIATION 2003/2002 FULL YEAR VARIATION 2003/2002 FULL YEAR VARIATION 2003/2002 FOURTH QUARTER VARIATION 2003/2002 FOURTH QUARTER
GEOGRAPHICAL AREA FY 2003 FY 2003 Q4 2003 Q4 2003 REPORTED AT COMP.FX REPORTED AT COMP.FX
GEOGRAPHICAL AREA MEUR ON TOTAL SALES MEUR ON TOTAL SALES GROWTH GROWTH GROWTH GROWTH
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
MIDDLE EAST AND OTHER 46.4 6 14.0 6 -24.6 N/A -29.9 N/A
TOTAL 759.3 100 247.3 100 -1.9 4.9 -3.1 3.5
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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
NON OPER. EXP. INC.MIN. 7.9 17.4 -54.4 1.0
PROFIT BEFORE TAX 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
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GROSS MARGIN
WEIGH FY 2001
JEWELS 37.6
WATCHES 38.6
PERFUMES 16.5
ACCESSOR. 5.0
ROYA/OTH 2.3
TOTAL 100
WEIGH FY 2002
JEWELS 38.0
WATCHES 37.9
PERFUMES 17.1
ACCESSOR. 5.2
ROYA/OTH 1.8
TOTAL 100
WEIGH FY 2003
JEWELS 40.5
WATCHES 32.2
PERFUMES 18.0
ACCESSOR. 7.3
ROYA/OTH 2.0
TOTAL 100
FX RATES Market evolution 2003 AVERAGE FX RATE 2003vs2002 AVERAGE EUR APPREC.
EUR/USD 1.13 20
EUR/JPY 130.95 11
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ADVERTISING AND PROMOTIONINVESTEMENTS IN M.EURO
AND AS A ON REVENUESas well as INDICATION OF
REVENUE GROWTH ON THE YEAR
9.9
9.6
10.2
11.1
13.6
12.6
12.2
13.4
10.6
on REV
REVENUE GROWTH
- 2 REPORTED, 5 AT CONST.CURRENCY
1
32
17
28
23
33
39
13
8
CONSOLIDATED AVERAGE TAX RATE
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NET WORKING CAPITAL
Me euro 2001 2002 2003
RECEIV. 124 143 132
INVENTORY 547 477 430
PAYABL. -119 -118 -109
TOT NWC 552 502 453
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CAPITAL EXPENDITURE
M.EURO 2001 2002 2003
TANGIBLE 36 24 23
INTANGIBLE 12 9 15
TOTAL 48 33 38
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CASH FLOW GENERATIONM.EURO
12
BALANCE SHEET HIGHLIGHTSM.EURO
GEARING 60 25
8
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BVLGARI 2003 ACTIVITIES
BUSINESS MODEL AXES NEW - 2003 PLUS - 2003
PRODUCT LAUNCHES AND INNOVATION LAUNCH OF A NEW JEWELRY COLLECTION LAUNCH OF A NEW JEWELRY WATCH LAUNCH OF A NEW MAJOR FEMININE FRAGR. LAUNCH OF A NEW HANDBAG COLL. LINE EXTENSIONS IN JEWELRY LINE EXTENSIONS IN WATCHES LINE EXT. IN FRAGRANCES, KITS NEW S/S AND F/W COLLECTIONS IN ACCESSORIES AND EYEWEAR
NETWORK 13 NEW OPENINGS OF WHICH 4 STANDARD SIZE, 9 SMALL 2 IMPORTANT RELOCATIONS AND REFURBISHMENTS
BRAND AWARENESS MIRROR, OMNIA AND Bzero1 CAMPAIGN VERY COST EFFECTIVE USE OF AP TOOLS ONGOING GROWTH OF EDITORIALS AND PRODUCT PLACEMENTS IN MOVIES
COST CONTROL EFFICIENCY FOCUS HIGHER DEGREE OF VERTICAL INTEGRATION ONGOING COST-CONTROL DISCIPLINE
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BVLGARI 2003 PRODUCTION
ACTIVITIES VERTICAL INTEGRATION
RE-ENGINEERING BOTH ON PRODUCTS AND PROCESSES
ACQUISITION CROVA 50
INTERNAL ATELIER CAPACITY IMPROVEMENT
WATCHMAKING FIRST INTERNALLY PRODUCED MOVEMENTS FOR BVLGARI GROUP GRANDE COMPLICATION WATCHES
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BVLGARI 2003 PRODUCT LAUNCHES
JEWELRY WATCHES PERFUMES ACCESSORIES
NEW PRODUCT LAUNCHES ALLEGRA (Coriandoli, Caramelle, Sassi, Metropolis, Tondo Shake, Optical and Theme lines) HIGH JEWELRY Magnificient Jewels LUCEA WATCH OMNIA ASCOT HANDBAG COLL.
LINE EXTENSIONS Bzero1 Cufflinks-Gifts LUCEA Rings, pendants, earrings EAU PARFUMEE AU THE BLANC
NEW VERSIONS RETTANGOLO BCI BVLGARI-BVLGARI DIAGONO PROF DIAGONO RETTANGOLO QUADRATO ALUMINIUM Bzero1 NEW KITS (S.VALENTINE, SPRING, CHRISTMAS ETC) New S/S and F/W Colours for Bzero1, Décolleté, Geometrica handbags New silk items and eyewear collections
ADVERTISING CAMPAIGNS THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND
ADVERTISING CAMPAIGNS MIRROR Bzero1 MIRROR Bzero1 OMNIA Bzero1 eyewear
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2003 NETWORK EVOLUTION
2003 2002 NEW
DOS BOUTIQUES 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 53 2 Both standard size
TOTAL STORESP.O.S. 182 169 13 Of which 4 standard size/9 small
2003 2002 NEW
THIRD PARTY RETAILERS gt770 gt770 unchanged
PERFUME DOORS gt15,000 14,400 About 600
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2003 STORE REFURBISHMENTS and NEW OPENINGS
NEW DIRECTLY OPERATED STORES (DOS) Sapporo Capri Nagoya Mitsukoshi Yokohama Sogo Fiumicino/3 Deagu Lotte Valencia El Corte Inglès Beijing Shanghai Q1 2003 shop in shop Q2 2003 free standing Q2 2003 shop in shop Q2 2003 shop in shop Q3 2003 shop in airport Q3 2003 shop in shop Q4 2003 shop in shop Q4 2003 shop in shop Q4 2003 shop in shop 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
EXISTING DOS RE-LOCATIONS Los Angeles Madrid Q1 2003 free standingflagship 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
NEW TRAVEL RETAIL WHOLESALE STORES Munich Singapore 2 Q2 2003 shop in airport Q4 2003 shop in airport SELECTED TRAVEL HUB SELECTED TRAVEL HUB
standard size new stores, the remaining are
smaller
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BVLGARI 2003 PR AND PROMOTION
TYPOLOGY EVENTS DETAILS
CORPORATE PR ACTIVITIES GRAND OPENINGS EXHIBITION LOS ANGELES RODEO DRIVE MADRID BEIJING AND SHANGHAI SAO PAOLO BVLGARI, 100 YEARS OF DESIGN
EDITORIALS AWARDS N OF EDITORIALS OMNIA EAU PARF.THE BL. About 24.000 NOMINEE TO THE ACCADEMIA DEL PROFUMO AWARD NOMINEE TO THE ACCADEMIA DEL PROFUMO AWARD
MOVIES/TV PRODUCT PLACEMENTS MOVIES ORIGINAL SERIES 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
VIP ENDORSEMENTS AWARDS 2003 RED CARPET OSCARS/ACADEMY CANNES VENEZIA GOLDEN GLOBE GODDESS EXH.-MET AMERICAN CINEM. 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
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BVLGARI 2004 PRODUCT LAUNCHES
JEWELRY WATCHES PERFUMES ACCESSORIES
NEW PRODUCT LAUNCHES NEW COLLECTION TO BE PRESENTED IN BASEL APRIL ALREADY PRESENTED Marryme (new engagement ring) NEW COLLECTION TO BE PRESENTED IN BASEL - APRIL
LINE EXTENSIONS ALREADY PRESENTED Bvlgari-Bvlgari Charms New cufflinks MORE IN BASEL ALREADY PRESENTED BB TOURBILLON MORE IN BASEL ALREADY PRESENTED OMNIA BATH LINE APRIL
NEW VERSIONS ALREADY PRESENTED Bzero1 Bzero1 pink gold (Special St.Val.edit.) MORE IN BASEL ALREADY PRESENTED Bzero1 ladies watch DIAGONO PROF. REGATTA DIAGONO PROF.GMT FLYBACK MORE IN BASEL ALREADY PRESENTED NEW KITS St.Valentine, Spring, etc. MORE IN H2 ALREADY PRESENTED New S/S and F/W Colors for Bzero1, Décolleté, Geometrica handbags New silk items and eyewear collections MORE IN H2
ADVERTISING CAMPAIGNS THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND
ADVERTISING CAMPAIGNS NEW, DEDICATED CAMPAIGN Mirror, Bzero1 campaigns NEW, DEDICATED CAMPAIGN Mirror, Bzero1 campaigns New campaigns Bzero1 campaign eyewear
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BVLGARI 2004 PR AND PROMOTION
TYPOLOGY EVENTS DETAILS
CORPORATE PR ACTIVITIES GRAND OPENINGS EXHIBITION IN THE PIPELINE THE BVLGARI VINTAGE COLLECTION (MIAMI)
EDITORIALS AWARDS IN THE PIPELINE
MOVIES/TV PRODUCT PLACEMENTS MOVIES ORIGINAL SERIES SOMETHINGS GOTTA GIVE IN THE PIPELINE SEX AND THE CITY
VIP ENDORSEMENTS AWARDS 2004 RED CARPET OSCARS/ACADEMY GRAMMY OTHERS NICOLE KIDMAN, JOHNNY DEPP, JENNIFER GARNER, AMBER VALLETTA, DJIMON HOUNSOU KYLIE MINOGUE IN THE PIPELINE
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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

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HISTORICAL REPORTED REVENUES BY PRODUCT LINE
GROWTH AND ON TOTAL SALES
YOY GROWTH 1998 1999 2000 2001 2002 2003
JEWELS 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
ACCESSORIES 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
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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
FAR EAST 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
M.EAST OT. 5 4 4 7 8 6
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PROFIT AND LOSS OVERVIEW In Eur Millions
EUR MIO. Q1 2003 Q2 2003 Q3 2003 Q4 2003 FY 2003
REVENUES 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
AMOR.DEPR 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
NON OPER. EXP. INC.MIN. 3.2 3.1 1.4 0.2 7.9
PROFIT BEFORE TAX 13.0 15.8 25.6 54.6 109.0
TAXES 1.6 2.2 6.7 6.4 16.9
NET PROFIT AFTER TAXES 11.4 13.6 18.9 48.2 92.1
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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