THE BVLGARI GROUP Fiscal Year 2003 Rome, 29 March 2004 When printing the presentation please choose the Pure B/W option.

THE BVLGARI GROUP THE BVLGARI GROUP

Fiscal Year 2003Fiscal Year 2003

Rome, 29 March 2004

When printing the presentation please choose the “Pure B/W” option

FINANCIAL RESULTS FINANCIAL RESULTS FY 2003 AND Q4 2003 FY 2003 AND Q4 2003

Eur mios. FY2003

FY 2002

DELTAFY 03/02

Q42003

Q4 2002

DELTAQ4 03/02

REVENUES rep.REVENUESconst.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

PRODUCTCATEGORY

FY 2003 Q4 2003 VARIATION % 2003/2002 FULL YEAR

VARIATION % 2003/2002

FOURTH QUARTER

REPORTED AT COMP.FX REPORTED AT COMP.FX

MEUR % ON TOTALSALES

MEUR % ON TOTALSALES

% 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

ROYALTIESAND 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

REVENUES – 2003 AND Q4 REVENUES – 2003 AND Q4 20032003

DETAIL BY PRODUCT LINEDETAIL BY PRODUCT LINE

GEOGRAPHICALAREA

FY 2003 Q4 2003 VARIATION % 2003/2002 FULL YEAR

VARIATION % 2003/2002

FOURTH QUARTER

REPORTED AT COMP.FX REPORTED AT COMP.FX

MEUR % ON TOTALSALES

MEUR % ON TOTALSALES

% GROWTH % GROWTH

ITALY 105.5 14% 34.7 14% -1.6 N/A -3.4 N/A

EUROPEW/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 EASTAND 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

REVENUES – 2003 AND Q4 REVENUES – 2003 AND Q4 20032003

DETAIL BY GEOGRAPHICAL AREADETAIL BY GEOGRAPHICAL AREA

GROUPP/L

FY 2003MEUR

FY 2002MEUR

% GROWTH2003/2002

% ON REVENUES

2003

REVENUES 759.3 773.6 -1.9% 100%

GROSS MARGIN

474.4 468.8 +1.2% 62.5%

PERSONNELCOSTS

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 GENEXPENSES

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%

PROFITBEFORE TAX

109.0 90.2 +20.8% 14.4%

TAXES 16.9 14.1 +20.5% 2.3%

NET PROFITAFTER TAXES

92.1 76.1 +21.0% 12.1%

BVLGARI PROFIT AND LOSS OVERVIEWBVLGARI PROFIT AND LOSS OVERVIEW

GROSS MARGINGROSS MARGIN

63.8% 62.5%

60.6%

2001 2002 2003

% 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 RATESMarketevolution

2003AVERAGEFX RATE

2003vs2002

AVERAGEEUR

APPREC.

EUR/USD 1.13 +20%

EUR/JPY 130.95 +11%

ADVERTISING AND ADVERTISING AND PROMOTIONPROMOTION

INVESTEMENTS IN M.EURO AND AS A % ON REVENUESINVESTEMENTS IN M.EURO AND AS A % ON REVENUESas well as INDICATIONas well as INDICATION OF REVENUE GROWTH ON THE OF REVENUE GROWTH ON THE

YEARYEAR

1924

3350

61

82.3

102.376.2

80.7

1995 1996 1997 1998 1999 2000 2001 2002 2003

9.9%9.6% 10.2% 11.1% 13.6% 12.6%% on REV 12.2% 13.4%

+1%+32% +17% +28% +23% +33%REVENUEGROWTH

+39% +13%

10.6%

- 2% REPORTED,

+5% AT CONST.CURRENCY

CONSOLIDATED AVERAGE TAX RATECONSOLIDATED AVERAGE TAX RATE

19.6%

15.4%

15.6%

2001 2002 2003

NET WORKING CAPITALNET WORKING CAPITAL

INVENTORY ROTATION DAYS

222257

204

100

150

200

250

2001 2002 2003

Me euro 2001 2002 2003

RECEIV. 124 143 132

INVENTORY

547 477 430

PAYABL. -119 -118 -109

TOT NWC 552 502 453

CAPITAL EXPENDITURECAPITAL EXPENDITURE

M.EURO 2001 2002 2003

TANGIBLE 36 24 23

INTANGIBLE 12 9 15

TOTAL 48 33 38

CASH FLOW GENERATIONCASH FLOW GENERATIONM.EUROM.EURO

48

107

33

117

38

131

0

20

40

60

80

100

120

140

2001 2002 2003

INVESTMENTS CASH FLOW

BALANCE SHEET HIGHLIGHTSBALANCE SHEET HIGHLIGHTSM.EUROM.EURO

475

-284

548

-136

587

-45

-300

-200

-100

0

100

200300

400

500

600

2001 2002 2003

Net Equity Net Cash

GEARING60% 25% 8%

BVLGARI 2003 – ACTIVITIESBVLGARI 2003 – ACTIVITIESBUSINESS MODEL AXES NEW - 2003 PLUS - 2003

PRODUCT LAUNCHES ANDINNOVATION

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 OPENINGSOF WHICH 4 STANDARD SIZE, 9 SMALL

2 IMPORTANT RELOCATIONSAND REFURBISHMENTS

BRAND AWARENESS MIRROR, OMNIA AND Bzero1 CAMPAIGN

VERY COST EFFECTIVE USE OF A&P TOOLS

ONGOING GROWTH OF EDITORIALSAND PRODUCT PLACEMENTS IN MOVIES

COST CONTROLEFFICIENCY FOCUS

HIGHER DEGREE OF VERTICAL INTEGRATION

ONGOING COST-CONTROL DISCIPLINE

BVLGARI 2003 – PRODUCTIONBVLGARI 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 GROUPGRANDE COMPLICATION WATCHES

BVLGARI 2003 – PRODUCT LAUNCHESBVLGARI 2003 – PRODUCT LAUNCHES

JEWELRY WATCHES PERFUMES ACCESSORIES

NEW PRODUCT LAUNCHES

ALLEGRA(Coriandoli, Caramelle,

Sassi, Metropolis, Tondo Shake, Optical and Theme

lines)

HIGH JEWELRYMagnificient Jewels

LUCEA WATCH OMNIA ASCOT HANDBAG COLL.

LINE EXTENSIONS

Bzero1Cufflinks-Gifts

LUCEARings, pendants, earrings

EAU PARFUMEE’ AU THE BLANC

NEW VERSIONS

RETTANGOLO BCIBVLGARI-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

ADVERTISINGCAMPAIGNS

THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND

“MIRROR”Bzero1

“MIRROR”Bzero1

OMNIA Bzero1eyewear

2003 – NETWORK EVOLUTION2003 – NETWORK EVOLUTION2003 2002 NEW

DOS BOUTIQUES 92 83 +9Of which

1 standard size/8 small

FRANCHISEES 35 33 +2Of which

1 standard size/1 small

TOTAL STORES 127 116 +11Of which

2 standard size/9 small

TRAVEL RETAILAND WHOLESALE STORES (POINTS OF SALE)

55 53 +2Both standard size

TOTAL STORES+P.O.S.

182 169 +13Of which

4 standard size/9 small

2003 2002 NEW

THIRD PARTYRETAILERS

>770 >770 unchanged

PERFUME DOORS >15,000 14,400 About 600

2003 – STORE REFURBISHMENTS and 2003 – STORE REFURBISHMENTS and NEW OPENINGSNEW OPENINGS

NEW DIRECTLYOPERATEDSTORES(DOS)

SapporoCapri

Nagoya MitsukoshiYokohama Sogo

Fiumicino/3Deagu Lotte

Valencia El Corte InglèsBeijing

Shanghai

Q1 2003 – shop in shop*Q2 2003 – free standing Q2 2003 – shop in shopQ2 2003 – shop in shopQ3 2003 – shop in airportQ3 2003 – shop in shopQ4 2003 – shop in shopQ4 2003 – shop in shopQ4 2003 – shop in shop

HIGH-END TRAVEL DESTINATIONHIGH-END TRAVEL DESTINATIONENHANCE LOCAL MARKET PRESENCEENHANCE LOCAL MARKET PRESENCESELECTED TRAVEL HUBENHANCE LOCAL MARKET PRESENCEENHANCE LOCAL MARKET PRESENCEEMERGING MARKETEMERGING MARKET

EXISTING DOSRE-LOCATIONS

Los Angeles

Madrid

Q1 2003 – free standing+flagship

Q4 2003 – free standing

FLAGSHIP + BRAND AWARENESS +ENHANCE LOCAL MARKET PRESENCEENHANCE LOCAL MARKET PRESENCE

NEW FRANCHISEES

Sao PauloManila Greenbelt

Q4 2003 – free standing*Q4 2003 – free standing

EMERGING MARKETEMERGING MARKET

NEW TRAVEL RETAIL WHOLESALE STORES

Munich Singapore 2

Q2 2003 – shop in airport*Q4 2003 – shop in airport*

SELECTED TRAVEL HUBSELECTED TRAVEL HUB

*standard size new stores, the remaining are smaller

BVLGARI 2003 – PR AND PROMOTIONBVLGARI 2003 – PR AND PROMOTIONTYPOLOGY EVENTS DETAILSCORPORATE PR ACTIVITIES

GRAND OPENINGS

EXHIBITION

LOS ANGELES RODEO DRIVE MADRIDBEIJING AND SHANGHAISAO PAOLOBVLGARI, 100 YEARS OF DESIGN

EDITORIALSAWARDS

N° OF EDITORIALSOMNIA

EAU PARF.THE BL.

About 24.000 NOMINEE TO THE ACCADEMIA DEL PROFUMO AWARDNOMINEE TO THE ACCADEMIA DEL PROFUMO AWARD

MOVIES/TVPRODUCT PLACEMENTS

MOVIES

ORIGINAL SERIES

INTOLERABLE CRUELTYTHE ITALIAN JOBWHAT A GIRL WANTSCONFIDENCEHOW TO LOSE A GUYMY HOUSE IN UMBRIASERVING SARAAND NOW LADIES AND GENTLEMENSEX AND THE CITY

VIPENDORSEMENTS&AWARDS 2003 RED CARPET

OSCARS/ACADEMYCANNES

VENEZIAGOLDEN GLOBEGODDESS EXH.-METAMERICAN 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 SCHRADERBEYONCE’ KNOWLES, BONO, JENNIFER ANISTON…NICOLE KIDMANNICOLE KIDMAN, CHLOE SEVIGNY, ERIKA CHRISTENSEN

BVLGARI 2004 – PRODUCT LAUNCHESBVLGARI 2004 – PRODUCT LAUNCHESJEWELRY WATCHES PERFUMES ACCESSORIES

NEW PRODUCT LAUNCHES

NEW COLLECTIONTO BE PRESENTED IN

BASEL – APRIL

ALREADY PRESENTED:Marryme

(new engagement ring)

NEW COLLECTIONTO BE PRESENTED IN

BASEL - APRIL

LINE EXTENSIONS

ALREADY PRESENTED:Bvlgari-Bvlgari

CharmsNew 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 forBzero1, Décolleté,

Geometrica handbagsNew silk items and eyewear collections

MORE IN H2

ADVERTISINGCAMPAIGNS

THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND

NEW, DEDICATED CAMPAIGN

+Mirror, Bzero1 campaigns

NEW, DEDICATEDCAMPAIGN

+Mirror, Bzero1 campaigns

New campaigns

Bzero1 campaigneyewear

BVLGARI 2004 – PR AND PROMOTIONBVLGARI 2004 – PR AND PROMOTIONTYPOLOGY EVENTS DETAILS

CORPORATE PR ACTIVITIES

GRAND OPENINGS

EXHIBITION

IN THE PIPELINE

THE BVLGARI VINTAGE COLLECTION (MIAMI)

EDITORIALSAWARDS

IN THE PIPELINE

MOVIES/TVPRODUCT PLACEMENTS

MOVIES

ORIGINAL SERIES

SOMETHING’S GOTTA GIVEIN THE PIPELINE

SEX AND THE CITY

VIPENDORSEMENTS&AWARDS 2004 RED CARPET

OSCARS/ACADEMY

GRAMMY

OTHERS

NICOLE KIDMAN, JOHNNY DEPP, JENNIFER GARNER, AMBER VALLETTA, DJIMON HOUNSOUKYLIE MINOGUE

IN THE PIPELINE

QUESTIONS & ANSWERSQUESTIONS & 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

HISTORICAL REPORTED REVENUES HISTORICAL REPORTED REVENUES BY PRODUCT LINEBY PRODUCT LINE

% GROWTH AND % ON TOTAL SALES% GROWTH AND % ON TOTAL SALESYOY 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

ROYALTIESAND 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

HISTORICAL REPORTED REVENUES HISTORICAL REPORTED REVENUES BY GEOGRAPHICAL AREABY GEOGRAPHICAL AREA

% GROWTH AND % ON TOTAL SALES% 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

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

PERSONNELCOSTS

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 GENEXPENSES

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

PROFITBEFORE TAX

13.0 15.8 25.6 54.6 109.0

TAXES 1.6 2.2 6.7 6.4 16.9

NET PROFITAFTER TAXES

11.4 13.6 18.9 48.2 92.1

PROFIT AND LOSS OVERVIEW: In Eur MillionsPROFIT AND LOSS OVERVIEW: In Eur Millions

% 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%

PERSONNELCOSTS

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 GENEXPENSES

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%

PROFITBEFORE TAX

8.1% 9.3% 14.1% 22.0% 14.4%

TAXES 1.0% 1.3% 3.7% 2.5% 2.3%

NET PROFITAFTER TAXES

7.1% 8.0% 10.4% 19.5% 12.1%

PROFIT AND LOSS OVERVIEW: % on PROFIT AND LOSS OVERVIEW: % on RevenuesRevenues