“The company is presently sounder than it was ten years ago. We have a very wide and diversified portfolio and a large distribution network. Ten years ago Bulgari’s distribution network consisted of only 15 stores. Today the company has 130 stores and 630 franchised jewelers’ shops. Diversification also concerned trade in the field of leather and perfumes sold through 1200 stores, and glasses, sold in over 4,000 stores worldwide”?

2002 had globally been a difficult year from an economic perspective. The negative business trend had made an impact, especially in the luxury sector.

Given the particular economic situation, Bulgari’s CEO Francesco Trapani had favorably considered the positive results achieved by his Group in 2002, although they were lower than in previous years.

The presentation to the financial community scheduled for March 27 would have provided the opportunity to properly discuss the results obtained with all the analysts and shareholders in attendance.

One of the major results to draw investors’ attention to would be the reduction in net debt from 60% to 25%. Reducing the level of indebtedness in a way meant lowering the possibility of facing financial friction but, on the other hand, also implied a reduction in the tax breaks associated with the deductibility of financial charges.

What was the market’s reaction to this level of indebtedness going to be like? Would the market have found it to be consistent with the group’s development plans? but above all «Did it maximize the company’s value?». It was this last question that troubled Trapani and his staff before the presentation that was about to take place.