Transition to IFRS accounting standards for LVMH Positive impact on 2004 net income: +18% Limited impact on stockholders’ funds and net financial debt

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group is preparing its financial statements in accordance with international financial reporting standards (IFRS) for all future accounting periods, effective January 1, 2005. The application of the new standards does not modify the Group’s financial performance measures: the net debt to equity ratio does not significantly change and the profit and loss statement is mainly impacted by the reversal of goodwill amortization, thereby increasing 2004 net income by 18%. Main Effects of IFRS On the Group’s financial statements for the period ending December 31, 2004, the impact of the transition to IFRS can be summarised as follows: (i) Profit & Loss Statement: • Minimal impact on consolidated net sales, which were 12.6 billion euros under French accounting standards and are 12.5 billion euros under IFRS. This 1% decrease is due mainly to the reclassification of certain operating charges. • Current operating income or operating income before “other operating income and expenses” decreases by around 2% to 2372 million euros under IFRS due mainly to the inclusion of a charge relating to stock option plans. Going forward, “Current operating income” will be the level of result highlighted by the Group in its financial results communications, • After the impact of “other operating income and expenses”, operating income under IFRS amounts to 2 173 million euros, • Net income rises by 18% to 1.2 billion euros under IFRS as a result of the removal of goodwill amortisation. (ii) Consolidated Balance Sheet • Total consolidated stockholders’ equity, amounting to 8.7 billion euros under IFRS falls by 5% relative to its level under French accounting standards. Noteworthy restatements behind this change include: o The deduction of LVMH treasury shares, o Minority purchase commitments, which, for the part accounted for in  minority interests, are no longer classified as equity, but rather as non current liabilities, o The revaluation of vineyards as well as, very partially, the Louis Vuitton brand, which offset to a large extent the two impacts described above. • Net consolidated debt rises by around 5% under IFRS due mainly to the integration of securitization operations in respect of client receivables, for which the amount had been deducted from accounts receivable, appeared in the notes to the consolidated accounts under French standards. Selected Options The key options selected by the LVMH Group for reporting financial results are as follows: • The restatement of acquisitions undertaken prior to 2004, in order to allocate the price paid at the time of the acquisition in compliance with IFRS. • The application, beginning in 2004, of the standards relating to the accounting for financial instruments (IAS 32 and 39). • And finally, the expensing of all stock option plans for which the vesting period remained open. All the selected options and the applied accounting treatments have been reviewed by the LVMH Group’s auditors, who judged them to be in line with the current IFRS, and in particular with IFRS 1 relating to the transition to the new accounting framework. Nevertheless, the Group wishes to make clear that certain rules could be modified by the IASB between now and the publication of the 2005 consolidated accounts. Timetable The Group, in accordance with the recommendations of the Autorité des Marchés Financiers (AMF), will report its first quarter and first half net sales as well as its first half results for 2005 under IFRS standards with a basis of comparison for the same periods in 2004 reported under the same standards. Detailed information will be available on the website at the beginning of today’s workshop.