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• Turnover: 178.1 million Euro (-23.1% at current exchange rates)
• Gross margin: 64.6% (67.1% in the first quarter 2008)
• Operating result : -23.8 million Euro
• Net result: -29.3 million Euro
• Debt consolidation finalised

Rome, May 12th 2009 – The Board of Directors of Bulgari S.p.A. approved today the interim management statements for the Bulgari Group’s first quarter 2009, which highlight a turnover of 178.1 million Euro with a 23.1% decrease at current exchange rates (-30.6% at comparable exchange rates) in comparison to the same period of last year.
It is worth underlining that sales performance in the directly owned stores was significantly better than the one registered in the wholesale channel - which implemented a very aggressive de-stocking activity in the first three months of the year – and limited the percentage decrease to a mid single digit at current exchange rates.

All the variations reported below are expressed at comparable exchange rates unless noted otherwise.

Revenues by product categories
Due to the persistence of the worldwide crisis on financial markets and of its impact on the demand of goods and services, all product categories registered a sales decrease: jewellery fell by 22.6%, watches by 37.6%, accessories by 44.7% and perfumes by 31.4%.
As mentioned before, the strong de-stocking activity in the wholesale channel has significantly penalised the sales performance in all product categories but it is worth underlining, in particular, that accessories sales remained substantially stable in the Bulgari stores exclusively dedicated to this category or in the twin-stores of the Group and that the perfumes category increased its market share with rising retail sales in all the main countries.

Revenues by geographical area
All geographical areas registered a strong sales slowdown, significantly influenced by the contraction of the orders in the wholesale channel, but at the same time they registered a positive performance in the directly owned stores in some countries. Europe, in fact, registered a 25.5% fall with a 15.7% downturn in the Italian market: though, sales in the directly owned stores showed a stable trend in Italy, a mid to high single digit growth in France and a double digit growth in United Kingdom and Switzerland. United States registered a slowdown (-44.3%) as well as Japan (-37.6%) in a still very difficult local market, while the performance in the rest of Asia (-22.3% compared to +22.8% in the same quarter of last year) registered a very strong double digit growth in the directly owned stores in South Korea. Finally, Middle East/Other registered a 24.1% drop at current exchange rates.

Profit & Loss highlights
Gross Margin in the quarter – from 155.5 million Euro in 2008 to 115 million Euro in 2009 (- 26.1%) – decreased also in terms of percentage ratio on turnover (67.1% in the first quarter 2008 vs. 64.6% in the first quarter 2009). The difference, already forecast, is essentially due to the absence of the very positive effects of the hedging transactions on gold the Group benefited in the same period of last year.

Total operating costs went from 133.7 million Euro in the first quarter 2008 to 138.8 million Euro in the first quarter 2009 (+3.8%). Actually, it is worth underlining that, at comparable exchange rates, operating costs registered a 3.4% decrease: this result must be attributed to the attentive managing of the cost base carried out since last year. Among operating costs, advertising and promotional expenses, although lower than in the first quarter 2008 (-8.7%), registered an increase in terms of percentage ratio on turnover (13.3% vs. 11.2% in 2008). Operating result, which was 21.9 million Euro in the first quarter 2008, resulted in a loss of 23.8 million Euro in the first quarter 2009.
Net result, finally, was equal to a 29.3 million Euro loss compared to the net profit of 22.8 million Euro in the first quarter 2008.

Balance sheet highlights
Financial net indebtedness of Group as of 31.03.2009 is 339 million Euro compared to 304 million Euro as of 31.12.2008. The increase must be ascribed to the seasonal nature of the business since the stocks are normally built up in the first part of the year.
It is important to highlight that during the last few weeks, the Group has proceeded to finalize the debt consolidation activity with various banking institutions by already finalizing financing contracts for 53 million Euro with maturities varying from 18 months to 10 years. Furthermore, a preliminary agreement with a pool of Banks has been signed and approved by their respective credit committees and the Group plans to conclude this agreement by the end of May for the amount of 180 million Euro with a 3 year maturity.

Francesco Trapani, Chief Executive Officer of the Bulgari Group, thus commentated: “The persistence of the crisis on the worldwide markets has inevitably affected the first quarter 2009 sales esults. As largely anticipated, the Group is already carrying out effective actions for the reduction of costs and investments whose results are in line with our expectations. Moreover, in April the Group has registered a clear sign of improvement in the sales of the directly owned stores, although an important contribution came from the high jewellery segment. To a lesser extent, an improvement has been registered also in the third party distribution.
In conclusion, I would like to mention that this year Bulgari is going to celebrate its 125th anniversary from its foundation with an important retrospective hosted in Rome at the Palazzo delle Esposizioni, which will illustrate the contribution of the brand to the history of jewellery and to the evolution of taste and style. Other worldwide high level events will follow during the year and I am convinced that these initiatives – together with new launches in all product categories – will further enhance the image of a brand which has always been a symbol of creativity, quality and prestige in the luxury world.”