Interparfums — Earnings Release 2011

Mar 13, 2012

2011 annual results

Operating profit: +10% Net income: +13% Dividend: +15%

In 2011, successes by the Burberry Body, Jimmy Choo and Montblanc Legend lines in particular combined with an intentional increase in marketing and advertising expenses led to new market share gains worldwide and accelerated development with growth of more 30% for the year (50% over two years).

(€millions) Audited accounts(1)	2010	2011	11/10
Sales	305.7	398.3	+30%
Gross margin	186.8	252.7	+35%
% of sales	61.1%	63.4%
Operating profit	42.2	46.3	+10%
% of sales	13.8%	11.6%
Net income	26.8	30.3	+13%
% of sales	8.7%	7.6%
Shareholders' equity	191.9	216.0	+13%
Borrowings	12.1	3.5	-71%
Cash and certificates of deposit	57.7	17.4	-70%

(1) Pending certification.

Continuing earnings growth

Despite ^a negative currency effect, the gross margin as ^a percentage of sales added more than two points reflecting the change in the Group's structure from the consolidation of the new US company Interparfums Luxury Brands starting January 1, 2011.

Operating profit came to €46.3 million (+10%) in ^a year of significant increases in marketing and advertising expenses (+76%) resulting in an operating margin of 11.6%.

In light of the non-recurring financial charge from the ²⁰¹⁰ currency effect, Group net income rose for the 15th consecutive year to more than €³⁰ million in ²⁰¹¹ (+13%). This performance was achieved despite an additional tax

Philippe Benacin, Chairman and CEO commented:

"Results for ²⁰¹¹ once again highlighted the efficacy of our strategy based on building sustained growth for each brand, creative and coherent launches, an effective global distribution network, proven processes and an efficient organization supported by nearly ²⁰ years of experience in this business. With continuing momentum at the start of this year from sustained sales particularly by the Jimmy Choo and Montblanc brands, we are able to confirm our full-year target for sales of €⁴⁰⁰ million in 2012". expense (€0.6 million) from an increase in the corporate income tax rate in France. At constant tax rates, net income rose 15%.

A solid financial position

The Group's balance sheet has strengthened year after year with at December 31, 2011:

ⁿ Shareholders' equity of €²¹⁶ million (61% of the total assets);

ⁿ Cash and cash equivalents of €17.4 million;

ⁿ Low net debt of €3.5 million (to be fully paid off at September 30, 2012).

The Group increased inventory levels in response to strong growth in sales and thelaunch of three major lines in 2011, which led to a temporary and limited declinein operating cash flow.

Dividend and bonus share issue

The Board of Directors will ask the Annual General Meeting of April 27, ²⁰¹² to approve:

ⁿ The distribution of ^a dividend of €0.50 per sharerepresenting of 15% increase over the prior year, payable in cash on May 7, 2012(2) ;

^{n A} new bonus share issue for the 13th consecutive year on the basis of one new share for every ten shares held programmed for September 2012.

Burberry license agreement

Discussions between Interparfums and Burberry on the creation of ^a new operational structure for the fragrance and beauty business are continuing.

Paris, March 13, 2012

Philippe Santi, Executive Vice President, added:

"These results also demonstrate the strength of our business model that produced double-digit growth in a year of sustained marketing and advertising investments and ^a current operating margin of nearly 12%. Furthermore, with our solid financial position, we have the capacity to pursue any major external growth opportunities that might arise".

(2) Ex-rights date of May 4, 2012

Upcoming events

www.interparfums.fr

Publication of 2012 first-quarter sales April 27, 2012 (before the opening of the NYSE-Euronext Paris stock exchange)

Investor relations - Interparfums SA Philippe Santi, tel: +33 1 53 77 00 00 psanti@interparfums.fr

2012 AGM April 27, 2012 (2:00 p.m. - Pavillon Gabriel - Paris)

Media relations - Watchowah Cyril Levy-Pey, tel: +33 6 08 46 41 41 clevypey@interparfums.fr

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Codes: Reuters IPAR.PA, Bloomberg ITP, ISIN FR0004024222-ITP Indices: CAC Mid & Small