Chairmen's message
March 12, 2011

Dear shareholders,

We significantly exceeded our targets for 2010 with annual sales €306 million in a market for perfumes and cosmetics that continued to gain momentum over the period. Bolstered by this trend, there was a strong improvement in the operating margin that ended the year at 13.8% and the net margin at nearly 9%.

However, this period was above all marked by an acceleration in the pace of the Group's development that included:

- The signature of three exclusive worldwide licenses with the Jimmy Choo, Montblanc and Boucheron brands, all from very different universes, has considerably strengthened the Group's portfolio:

- Jimmy Choo, a British luxury brand with a sophisticated universe that combines glamour and seduction;
- Montblanc, a world-renowned luxury brand with international stature built on a tradition of master craftsmanship and the high quality of its products;
- Boucheron, an ultra-luxury jewellery brand, with a reputation as a trendsetter through its baroque-style, lunar and mysterious designs.

- The creation of two distribution subsidiaries in the US and Singapore representing an important operational step in our development involving the deployment of significant resources. These entities are responsible for spearheading the development of all the Group brands in North America and Asia, two major markets for the Group.

- And finally, the eagerly awaited development of a new women's fragrance line under the Burberry brand, with creation initiated early in the year for a worldwide launch programmed for fall 2011. Supported by a wide reaching communications plan, this major line will contribute to further strengthening the brand's growth momentum.

At the same time, the company is actively preparing two important women's fragrance line launches under the Van Cleef & Arpels and Lanvin brands planned for 2012 that will represent decisive creative breaks with previous lines.

On the strength of these key factors for the Group's future development, combined with a series of recruitments further reinforcing our organization by the addition of new talent, we are extremely confident in the growth prospects for our business over the coming years.

Sincere regards to all,

Philippe Benacin & Jean Madar