Déborah AISSA – Martin DELENS - Hortense GAUDIN

LVMH vs Hermès

1. Why HERMÈS did an IPO? What risks and rewards?

2. How did LVMH acquired Hermès shares & avoid the French regulations?

3. How the H51 will work and how long do you think it will last?

4. Recent development of the case

QUESTIONS

INTRODUCTION

INTRODUCTION

Created in 1837

In 1993 they listed 25% of its voting shares : Support the long term development of the company Make shares easier to trade for the shareholders

Can we go a « little public » ?

IPO Open the door to news investors

HERMÈS INTERNATIONAL IPO

RISKS REWARDS

Weaken the family control Hostile acquisition Cultural and management

differences/ incompatibility Artisanal essence

compromised Activities fragmented Brand image ruined

Expand the company Increase its way of financing Enriched the family

members Since the IPO :- Turnover x 8- Operating Result x 23

HERMÈS INTERNATIONAL IPO

French Regulations

The symbolic line of 5% The Mercury Project

2006: the plan of Natixis (cash settled equity swaps)

2010: the official announcement

THE 12 YEAR SECRET PLAN OF LVMH

LVMH conviction: 8 millions euros fine by the AMF

Accusation: hidden all stages of a stake in the capital of Hermes

LVMH has decided to not appeal his conviction

A criminal complaint filed by Hermès against LVMH is under investigation

RECENT NEWS

THANK YOU FOR YOUR ATTENTION