Consolidated financial statements as of December, 31 2025

This document is a free translation into English of the original French "Comptes consolidés", hereafter referred to as the "Consolidated financial statements". It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

1. General framework and environment

   The consolidated financial statements for fiscal year 2025 were established in accordance with the international accounting standards and interpretations (IAS/IFRS) adopted by the European Union and applicable on December 31, 2025.

   These standards and interpretations have been applied consistently to the fiscal years presented. The consolidated financial statements for fiscal year 2025 were approved by the Board of Directors on January 27, 2026.

2. Changes in the accounting framework applicable to the Group

   Standards, amendments and interpretations for which application became mandatory in 2025

   The application of standards, amendments and interpretations that took effect on January 1, 2025 did not have a material impact on the Group's financial statements.

   Other changes in the accounting framework and standards for which application is mandatory with effect later than January 1, 2025

   The impact of the application of IFRS 18 Presentation and Disclosure in Financial Statements - for which application is mandatory with effect from January 1, 2027 - is being assessed.

3. Taking into account climate change risks

   The Group's current exposure to the consequences of climate change is limited. As such, at this stage, the impact of climate change on the financial statements is not material.

   As part of the LIFE 360 program, which puts the environmental strategy into practice, the Group - via LVMH, which comprises all of the Group's operating activities - has launched a plan to transform its value chains.

   The implementation of this program is reflected in the financial statements in the form of operating investments, research and development expenses and corporate philanthropy expenses. In addition, profit from recurring operations in particular will be affected by changes in raw material prices; production, transport and distribution costs; and costs related to the end-of-life phase of its products.

   The short-term effects have been incorporated into the Group's strategic plans, which form the basis for conducting impairment tests on intangible assets with indefinite useful lives (see Note 5). The long-term effects of these changes are not quantifiable at this stage.

4. First-time adoption of IFRS

   The first accounts prepared by the Group in accordance with IFRS were the financial statements for the year ended December 31, 2005, with a transition date of January 1, 2004. IFRS 1 allowed for exceptions to the retrospective application of IFRS at the transition date. The procedures implemented by the Group with respect to these exceptions include the following:

   • business combinations: the exemption from retrospective application was not applied. The Christian Dior Group retrospectively restated acquisitions made since 1988, the

     date of the initial consolidation of LVMH, and all subsequent acquisitions were restated in accordance with IFRS 3. IAS 36 Impairment of Assets and IAS 38 Intangible Assets were applied retrospectively as of that date;

   • foreign currency translation of the financial statements of subsidiaries outside the eurozone: translation reserves relating to the consolidation of subsidiaries that prepare their accounts

     in foreign currency were reset to zero as of January 1, 2004 and offset against "Other reserves".

5. Presentation of the financial statements

   Definitions of "Profit from recurring operations" and "Other operating income and expenses"

   The Group's main business is the management and development of its brands and trade names. "Profit from recurring operations" is derived from these activities, whether they are recurring or non-recurring, core or incidental transactions.

   "Other operating income and expenses" comprises income statement items, which - due to their nature, amount or frequency - may not be considered inherent to the Group's recurring operations or its profit from recurring operations. This caption reflects in particular the impact of changes in the scope of consolidation, the impairment of goodwill, and the impairment and amortization of brands and trade names.

   It also includes any significant amounts relating to the impact of certain unusual transactions, such as gains or losses arising on the disposal of non-current assets, restructuring costs, costs in respect of disputes, or any other non-recurring income or expense that may otherwise distort the comparability of profit from recurring operations from one period to the next.

   Cash flow statement

   Net cash from operating activities is determined on the basis of operating profit, adjusted for non-cash transactions. In addition:

   • dividends received are presented according to the nature of the underlying investments, thus in "Net cash from operating activities" for dividends from joint ventures and associates

     and in "Net cash from financial investments" for dividends from other unconsolidated entities;

   • tax paid is presented according to the nature of the transaction from which it arises, thus in "Net cash from operating activities" for the portion attributable to operating transactions; in "Net

   cash from financial investments" for the portion attributable to transactions in available for sale financial assets, notably tax paid on gains from their sale; and in "Net cash from transactions relating to equity" for the portion attributable to transactions in equity, notably distribution taxes arising on the payment of dividends.

6. Use of estimates

   Preparing the consolidated financial statements requires the use of assumptions, estimates or other forms of judgment to measure certain balance sheet and income statement items. This includes, but is not limited to, the valuation of intangible assets (see Notes 1.16 and 5), leases (see Notes 1.15 and 7) and purchase commitments for minority interests' shares (see Notes 1.13 and 21), as well as the estimation of provisions for contingencies and losses, uncertain tax positions (see Note 20) and impairment of inventories (see Notes 1.18 and 11). It also concerns deferred tax assets (see Note 28) and assets and liabilities held for sale (see Notes 1.12 and 2). Such assumptions, estimates or other forms of judgment made on the basis of the information available or the situation prevailing at the date at which the financial statements are prepared may subsequently prove different from actual events.

7. Methods of consolidation

   The subsidiaries in which the Group holds a direct or indirect de facto or de jure controlling interest are fully consolidated.

   Jointly controlled companies and companies where the Group has significant influence but no controlling interest are accounted for using the equity method. Although jointly controlled, those entities are fully integrated within the Group's operating activities. The Group discloses their net profit - as well as that of entities using the equity method (see Note 8) - on a separate line, which forms part of profit from recurring operations.

   When an investment in a joint venture or associate accounted for using the equity method involves a payment tied to meeting specific performance targets, known as an earn-out payment, the estimated amount of this payment is included in the initial purchase price recorded in the balance sheet, with an offsetting

   entry under financial liabilities. Any difference between the initial estimate and the actual payment made is recorded as part of the value of investments in joint ventures and associates, without any impact on the income statement.

   The assets, liabilities, income and expenses of the Wines and Spirits distribution subsidiaries held jointly with the Diageo group are consolidated only in proportion to the Group's share of operations (see Note 1.27).

   The consolidation on an individual or collective basis of companies that are not consolidated (see "Companies not included in the scope of consolidation") would not have a significant impact on the Group's main aggregates.

8. Foreign currency translation of the financial statements

   of entities outside the eurozone

   The consolidated financial statements are presented in euros; the financial statements of entities presented in a different functional currency are translated into euros:

   • at the period-end exchange rates for balance sheet items;

   • at the average rates for the period for income statement items.

     Translation adjustments arising from the application of these rates are recorded in equity under "Cumulative translation adjustment".

     In the event of hyperinflation, IAS 29 is applied.

9. Foreign currency transactions

   and hedging of exchange rate risks

   Transactions of consolidated companies denominated in a currency other than their functional currencies are translated to their functional currencies at the exchange rates prevailing at the transaction dates.

   Accounts receivable, accounts payable and debts denominated in currencies other than the entities' functional currencies are translated at the applicable exchange rates at the fiscal year-end. Gains and losses resulting from this translation are recognized:

   • within "Cost of sales" for commercial transactions;

   • within "Net financial income/(expense)" for financial

     transactions.

     Foreign exchange gains and losses arising from the translation or elimination of intra-Group transactions or receivables and payables denominated in currencies other than the entity's functional currency are recorded in the income statement unless they relate to long-term intra-Group financing transactions, which can be considered equity-related transactions. In the latter case, translation adjustments are recorded in equity under "Cumulative translation adjustment".

     Derivatives used to hedge commercial, financial or investment transactions are recognized in the balance sheet at their market value (see Note 1.10) at the balance sheet date. Changes in the value of the effective portions of these derivatives are recognized as follows:

     • for hedges that are commercial in nature:

       • within "Cost of sales" for hedges of receivables and payables recognized in the balance sheet at the end of the period,

       • within equity under "Revaluation reserves" for hedges of future cash flows; this amount is transferred to cost of sales upon recognition of the hedged trade receivables and payables;

     • for hedges relating to the acquisition of non-current assets: within equity under "Revaluation reserves" for hedges of future cash flows; this amount is transferred to the asset side

       of the balance sheet, as part of the initial cost of the hedged item when accounting for the latter, and then to the income statement in the event of the disposal or impairment of the hedged item;

     • for hedges that are tied to the Group's investment portfolio (hedging the net worth of subsidiaries whose functional currency is not the euro): within equity under "Cumulative

     translation adjustment"; this amount is transferred to the income statement upon the sale or liquidation (whether partial or total) of the subsidiary whose net worth is hedged;

10. Fair value measurement

    • for hedges that are financial in nature: within "Net financial income/(expense)", under "Other financial income and expenses".

      Changes in the value of these derivatives related to forward points associated with forward contracts, as well as in the time value component of options, are recognized as follows:

    • for hedges that are commercial in nature: within equity under "Revaluation reserves". The cost of the forward contracts (forward points) and of the options (premiums) is transferred

      to "Cost of foreign exchange derivatives" within "Net financial income/(expense)" upon realization of the hedged transaction;

    • for hedges that are tied to the Group's investment portfolio or financial in nature: expenses and income arising from discounts or premiums are recognized in "Borrowing costs"

      on a pro rata basis over the term of the hedging instruments. The difference between the amounts recognized in "Net financial income/(expense)" and the change in the value of forward points is recognized in equity under "Revaluation reserves".

      Market value changes of derivatives not designated as hedges are recorded within "Net financial income/(expense)".

      See also Note 1.22 for the definition of the concepts of effective and ineffective portions.

      Fair value (or market value) is the price that would be obtained from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants.

      The assets and liabilities measured at fair value in the balance sheet are as follows:

      Approaches to determining fair value Amounts recorded at balance sheet date

      Vineyard land Based on recent transactions in similar assets. See Note 1.14. Note 6

      Grape harvests Based on purchase prices for equivalent grapes. See Note 1.18. Note 11

      Derivatives Based on market data and according to commonly used valuation models. See Note 1.23.

      Note 23

      Borrowings hedged against changes in value due to interest rate fluctuations

      Liabilities in respect of purchase commitments for minority interests' shares priced according to fair value

      Based on market data and according to commonly used valuation models. See Note 1.22.

      Generally based on the market multiples of comparable companies. See Note 1.13.

      Note 19

      Note 21

      Available for sale financial assets Quoted investments: price quotations at the close of trading on the balance sheet

      date. Unquoted investments: estimated net realizable value, either according to formulas based on market data or based on private quotations. See Note 1.17.

      Note 9, Note 14

      Cash and cash equivalents (SICAV and FCP funds)

      Based on the liquidation value at the balance sheet date. See Note 1.20.

      Note 15

      No other assets or liabilities have been remeasured at market value at the balance sheet date.

11. Brands and other intangible assets

    Only acquired brands and trade names that are well known and individually identifiable are recorded as assets based on their market values at their dates of acquisition.

    Brands and trade names are chiefly valued using the forecast discounted cash flow method, or based on comparable transactions (i.e. using the revenue and net profit coefficients employed for recent transactions involving similar brands) or stock market multiples observed for related businesses. Other complementary methods may also be employed: the relief from royalty method, involving equating a brand's value with the present value of the royalties required to be paid for its use; the margin differential method, applicable when a measurable difference can be identified in the amount of revenue generated by a branded product in comparison with a similar unbranded product; and finally the equivalent brand reconstitution method involving, in particular, estimation of the amount of advertising and promotion expenses required to generate a similar brand.

    Costs incurred in creating a new brand or developing an existing brand are expensed.

    Brands, trade names and other intangible assets with finite useful lives are amortized over their estimated useful lives. The classification of a brand or trade name as an asset of finite or indefinite useful life is generally based on the following criteria:

    • the brand or trade name's overall positioning in its market expressed in terms of volume of activity, international presence and reputation;

    • its expected long-term profitability;

    • its degree of exposure to changes in the economic environment;

    • any major event within its business segment liable to compromise its future development;

    • its age.

      Amortizable lives of brands and trade names with finite useful lives range from 5 to 20 years, depending on their anticipated period of use.

      Impairment tests are carried out for brands, trade names and other intangible assets using the methodology described in Note 1.16.

      Research expenditure is not capitalized. New product development expenditure is not capitalized unless the final decision has been made to launch the product.

      Intangible assets other than brands and trade names are amortized over the following periods:

    • rights attached to sponsorship agreements and media partnerships are amortized over the life of the agreements, depending on how the rights are used;

    • development expenditure is amortized over 3 years at most;

    • software and websites are amortized over 1 to 8 years.

12. Changes in ownership interests in consolidated entities

    When the Group takes de jure or de facto control of a business, its assets, liabilities and contingent liabilities are estimated at their market value as of the date when control is obtained; the difference between the cost of taking control and the Group's share of the market value of those assets, liabilities and contingent liabilities is recognized as goodwill.

    The cost of taking control is the price paid by the Group in the context of an acquisition, or an estimate of this price if the transaction is carried out without any payment of cash, excluding acquisition costs, which are disclosed under "Other operating income and expenses".

    The difference between the carrying amount of minority interests purchased after control is obtained and the price paid for their acquisition is deducted from equity.

    Goodwill is accounted for in the functional currency of the acquired entity.

    Goodwill is not amortized but is subject to annual impairment testing using the methodology described in Note 1.16. Any impairment expense recognized is included within "Other operating income and expenses".

    In accordance with IFRS 5, if an asset (or asset group) meets the criteria to be classified as held for sale, it is presented within a separate "Assets held for sale" line item in the consolidated balance sheet, with any associated liabilities presented within "Liabilities held for sale". An asset classified as held for sale is measured at the lower of its carrying amount and fair value less costs to sell.

13. Purchase commitments for minority interests' shares

    The Group has granted put options to minority shareholders of certain fully consolidated subsidiaries.

    Pending specific guidance from IFRSs regarding this issue, the Group recognizes these commitments as follows:

    • the value of the commitment at the balance sheet date appears in "Purchase commitments for minority interests' shares", as a liability on its balance sheet;

    • the corresponding minority interests are canceled;

    • for commitments granted prior to January 1, 2010, the difference between the amount of the commitments and canceled minority interests is maintained as an asset on the

      balance sheet under goodwill, as are subsequent changes in this difference. For commitments granted as from January 1, 2010, the difference between the amount of the commitments and minority interests is recorded in equity, under "Other reserves".

      This recognition method has no effect on the presentation of minority interests within the income statement.

14. Property, plant and equipment

    With the exception of vineyard land, the gross value of property, plant and equipment is recognized at acquisition cost.

    Vineyard land is recognized at the market value at the balance sheet date. This valuation is based on official published data for recent transactions in the same region. Any difference compared to historical cost is recognized within equity in "Revaluation reserves". If the market value falls below the acquisition cost, the resulting impairment is charged to the income statement.

    Buildings mostly occupied by third parties are reported as investment property, at acquisition cost. Investment property is thus not remeasured at market value.

    The depreciable amount of property, plant and equipment comprises the acquisition cost of their components less residual value, which corresponds to the estimated disposal price of the asset at the end of its useful life.

    Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. For leased assets, the depreciation period cannot be longer than that used for the calculation of the lease liability.

    The estimated useful lives are as follows:

    • buildings including investment property: 20 to 100 years;

    • machinery and equipment: 3 to 25 years;

    • leasehold improvements: 3 to 10 years;

    • producing vineyards: 18 to 25 years.

    Expenses for maintenance and repairs are charged to the income statement as incurred.

15. Leases

    The Group has applied IFRS 16 Leases since January 1, 2019. The initial application was carried out using the "modified retrospective" approach to transition; see Note 1.2 to the 2019 consolidated financial statements for details of this initial application procedure for IFRS 16 and the impact of its initial application on the 2019 financial statements.

    When entering into a lease, a liability is recognized in the balance sheet, measured at the discounted present value of future payments of the fixed portion of lease payments and offset against a right-of-use asset depreciated over the lease term. The amount of the liability depends to a large degree on the assumptions used for the lease term and, to a lesser extent, the discount rate. The Group's extensive geographic coverage means it encounters a wide range of different legal conditions when entering into contracts.

    The lease term generally used to calculate the liability is the term of the initially negotiated lease, not taking into account any early termination options, except in special circumstances. When leases contain extension options, the term used for the calculation of the liability may include these periods, mainly when the anticipated period of use of the non-current assets, whether under a new or existing lease, is greater than the initial contractual lease term.

    The lease term to be used in accounting for lease liabilities when the underlying assets are capitalized even though the obligation to make lease payments covers a period of less than twelve months is consistent with the anticipated period of use of the invested assets. Most often, this involves leases for retail locations that are automatically renewable on an annual basis.

    The standard requires the discount rate to be determined for each lease using the incremental borrowing rate of the subsidiary entering into the lease. In practice, given the structure of the Group's financing - virtually all of which is held or guaranteed by LVMH SE - this incremental borrowing rate is generally the total of the risk-free rate for the currency of the lease, with reference to its term, and the Group's credit risk for this same currency and over the same term.

    Leasehold rights and property, plant and equipment related to restoration obligations for leased facilities are presented within "Right-of-use assets" and subject to depreciation under the same principles as those described above.

    The Group has implemented a dedicated IT solution to gather lease data and run the calculations required by the standard.

    Since the application of IFRS 16 had a significant impact on the cash flow statement given the importance of fixed lease payments to the Group's activities, specific indicators are used for internal performance monitoring requirements and financial communication purposes in order to present consistent performance measures, independently of the fixed or variable nature of lease payments. One such alternative performance measure is "Operating free cash flow", which is calculated by deducting capitalized fixed lease payments in their entirety from cash flow. The reconciliation between "Net cash from operating activities" and "Operating free cash flow" is presented in the consolidated cash flow statement.

16. Impairment testing of non-current assets

    Property, plant and equipment, intangible assets, and all leased non-current assets are subject to impairment testing whenever there is any indication that an asset may be impaired (particularly following major changes in the asset's operating conditions), and in any event at least annually in the case of intangible assets with indefinite useful lives (mainly brands, trade names and goodwill). When the carrying amount of assets with indefinite useful lives is greater than the higher of their value in use or market value, the resulting impairment loss is recognized within "Other operating income and expenses", allocated on a priority basis to any existing goodwill.

    Value in use is based on the present value of the cash flows expected to be generated by these assets, taking into account their residual value. Market value is estimated by comparison with recent similar transactions or on the basis of valuations performed by independent experts for the purposes of a disposal transaction.

    Cash flows are forecast at Group level for each business segment, defined as one or several brands or trade names under the responsibility of a dedicated management team; in general, a business segment as defined above corresponds to a Maison within the Group. Smaller-scale cash-generating units, such as a group of stores, may be distinguished within a particular business segment.

    The forecast data required for the discounted cash flow method is based on annual budgets and multi-year business plans prepared by the management of the business segments concerned. Detailed forecasts cover a five-year period, which may be extended for brands undergoing strategic repositioning or whose production cycle exceeds five years. An estimated terminal value is added to the value resulting from discounted forecast cash flows, which corresponds to the capitalization in perpetuity of cash flows most often arising from the last year of the plan. Discount rates are set for each business group with reference to companies engaged in comparable businesses. Forecast cash flows are discounted on the basis of the rate of return to be expected by an investor in the applicable business and an assessment of the risk premium associated with that business. When several forecast scenarios are developed, the probability of occurrence of each scenario is assessed.

17. Available for sale financial assets

    Available for sale financial assets are classified as current or non-current based on their type.

    Non-current available for sale financial assets comprise strategic and non-strategic investments whose estimated period and form of ownership justify such classification.

    Current available for sale financial assets (presented in "Other current assets"; see Note 13) include temporary investments in shares, shares of SICAVs, FCPs and other mutual funds, excluding investments made as part of day-to-day cash management, which are accounted for as "Cash and cash equivalents" (see Note 1.20).

    Available for sale financial assets are measured at their listed value at the fiscal year-end date in the case of quoted investments, and in the case of unquoted investments at their estimated net realizable value, assessed either according to formulas based on market data or based on private quotations at the fiscal year-end date.

    Positive or negative changes in value are recognized under "Net financial income/(expense)" (within "Other financial income and expenses"; see Note 27) for all shares held in the portfolio during the reported periods. By way of exception, changes in the value of non-current available for sale financial assets may be recognized within "Other items of comprehensive income, not transferable to income statement".

    At its level, Christian Dior integrates data from the LVMH Group without restatement. Regarding its own available for sale financial assets, as it is authorized to do under IFRS 9, Christian Dior reserves the right to choose, for each accounting item, the method for recognizing their change in market value: either within "Net financial income/(expense)" or directly in equity.

18. Inventories and work in progress

    Inventories other than wine produced by the Group are recorded at the lower of cost (excluding interest expense) and net realizable value; cost comprises manufacturing cost (finished goods) or purchase price, plus incidental costs (raw materials, merchandise).

    Wine produced by the Group, including champagne, is measured on the basis of the applicable harvest market value, which is determined by reference to the average purchase price of equivalent grapes, as if the grapes harvested had been purchased from third parties. Until the date of the harvest, the value of grapes is calculated on a pro rata basis, in line with the estimated yield and market value.

    Inventories are valued using either the weighted average cost or the FIFO method, depending on the type of business.

    Due to the length of the aging process required for champagnes, spirits (cognac, whisky and rum, in particular) and wines, the holding period for these inventories generally exceeds one year. However, in accordance with industry practices, these inventories are classified as current assets.

    Provisions for impairment of inventories are chiefly recognized for businesses other than Wines and Spirits. They are generally required because of product obsolescence (end of season or collection, expiration date approaching, etc.) or lack of sales prospects.

19. Trade accounts receivable, loans and other receivables

    Trade accounts receivable, loans and other receivables are recorded at amortized cost, which corresponds to their face value. Impairment is recognized for the portion of loans and receivables not covered by credit insurance when such receivables are recorded, in the amount of the losses expected upon maturity. This reflects the probability of counterparty default and the expected loss rate, measured using historical statistical data, information provided by credit bureaus, or ratings by credit rating agencies, depending on the specific case.

    The amount of long-term loans and receivables (i.e. those falling due in more than one year) is subject to discounting, the effects of which are recognized under "Net financial income/(expense)", using the effective interest method.

20. Cash and cash equivalents

    Cash and cash equivalents comprise cash and highly liquid money-market investments subject to a negligible risk of changes in value over time.

    Money-market investments are measured at their market value, based on price quotations at the close of trading and on the exchange rate prevailing at the fiscal year-end date, with any changes in value recognized as part of "Net financial income/ (expense)".

21. Provisions

    A provision is recognized whenever an obligation exists towards a third party resulting in a probable disbursement for the Group, the amount of which may be reliably estimated. See also Notes 1.25 and 20.

    If the date at which this obligation is to be discharged is in more than one year, the provision amount is discounted, the effects of which are recognized in "Net financial income/(expense)" using the effective interest method.

22. Borrowings

    Borrowings are measured at amortized cost, i.e. nominal value net of issue premiums and issuance costs, which are charged over time to "Net financial income/(expense)" using the effective interest method.

    In the case of hedging against fluctuations in the value of borrowings resulting from changes in interest rates, both the hedged amount of borrowings and the related hedging instruments are measured at their market value at the balance sheet date, with any changes in those values recognized within "Net financial income/(expense)", under "Fair value adjustment of borrowings and interest rate hedges". See Note 1.10 regarding the measurement of hedged borrowings at market value. Interest income and expenses related to hedging instruments are recognized within "Net financial income/(expense)", under "Borrowing costs".

    In the case of hedging against fluctuations in future interest payments, the related borrowings remain measured at their amortized cost while any changes in value of the effective hedge portions are taken to equity as part of "Revaluation reserves".

    Changes in value of non-hedging derivatives, and of the ineffective portions of hedges, are recognized within "Net financial income/ (expense)".

    Net financial debt comprises short- and long-term borrowings, the market value at the balance sheet date of interest rate derivatives, less the amount at the balance sheet date of non-current available for sale financial assets used to hedge financial debt, current available for sale financial assets, cash and cash equivalents, in addition to the market value at that date of foreign exchange derivatives related to any of the aforementioned items.

23. Derivatives

    The Group enters into derivative transactions as part of its strategy for hedging foreign exchange, interest rate and precious metal price risks.

    To hedge against commercial, financial and investment foreign exchange risk, the Group uses options, forward contracts, foreign exchange swaps and cross-currency swaps. The time value of options, the forward point component of forward contracts and foreign exchange swaps, as wellas the foreign currency basis spread component of cross-currency swaps are systematically excluded from the hedge relation. Consequently, only the intrinsic value of the instruments is considered a hedging instrument. Regarding hedged items (future foreign currency cash flows, commercial or financial liabilities and accounts receivable in foreign currencies, subsidiaries' equity denominated in a functional currency other than the euro), only their change in value in respect of foreign exchange risk is considered a hedged item. As such, aligning the hedging instruments' main features (nominal values, currencies, maturities) with those of the hedged items makes it possible to perfectly offset changes in value.

    Derivatives are recognized in the balance sheet at their market value at the balance sheet date. Changes in their value are accounted for as described in Note 1.9 in the case of foreign exchange hedges and as described in Note 1.22 in the case of interest rate hedges.

    Market value is based on market data and commonly used valuation models.

    Derivatives with maturities in excess of 12 months are disclosed as non-current assets and liabilities.

24. Christian Dior and LVMH treasury shares

    Christian Dior treasury shares

    Christian Dior shares held by the Group are measured at their acquisition cost and recognized as a deduction from consolidated equity, irrespective of the purpose for which they are held.

    In the event of disposal, the cost of the shares disposed of is determined by allocation category (see Note 16.3) using the FIFO method, with the exception of shares held under stock option plans, for which the calculation is performed for each plan using the weighted average cost method.

    Gains and losses on disposal, net of income taxes, are taken directly to equity.

    LVMH treasury shares

    Purchases and sales by LVMH of its own shares, as well as LVMH SE capital increases reserved for recipients of share subscription options, resulting in changes in the percentage held by the Christian Dior Group in LVMH, are accounted for in the consolidated financial statements of the Christian Dior Group as changes in ownership interests in consolidated entities.

    As from January 1, 2010, in accordance with the revised version of IFRS 3, changes in the Christian Dior Group's ownership interest in LVMH have been taken to equity.

    As this standard is applied prospectively, goodwill recognized as of December 31, 2009 has been maintained as an asset on the balance sheet.

25. Pensions, contribution to medical costs and other employee benefit commitments

    When plans related to retirement bonuses, pensions, contributions to medical costs, or other employee benefit commitments entail the payment by the Group of contributions to third-party organizations that assume sole responsibility for subsequently paying such retirement bonuses, pensions or contributions to medical costs, these contributions are expensed in the fiscal year in which they fall due, with no liability recorded on the balance sheet.

    When the payment of retirement bonuses, pensions, contributions to medical costs, or other employee benefit commitments is to be borne by the Group, a provision is recorded in the balance sheet in the amount of the corresponding actuarial commitment (see Note 30). Changes in this provision are recognized as follows:

    • the portion related to the cost of services rendered by employees and net interest for the fiscal year is recognized in profit from recurring operations for the fiscal year;

    • the portion related to changes in actuarial assumptions and to differences between projected and actual data (experience adjustments) is recognized in gains and losses taken to equity.

      If this commitment is partially or fully funded by payments made by the Group to external financial organizations, these dedicated funds are deducted from the actuarial commitment recorded in the balance sheet.

      The actuarial commitment is calculated based on assessments that are specifically designed for the country and the Group company concerned. In particular, these assessments include assumptions regarding discount rates, salary increases, inflation, life expectancy and staff turnover.

26. Current and deferred tax

    The tax expense comprises current tax payable by consolidated companies, deferred tax resulting from temporary differences, and the change in uncertain tax positions.

    Deferred tax is recognized in respect of temporary differences arising between the value of assets and liabilities for purposes of consolidation and the value resulting from the application of tax regulations.

    Deferred tax is measured on the basis of the income tax rates enacted at the balance sheet date; the effect of changes in rates is recognized during the periods in which changes are enacted.

    Future tax savings from tax losses carried forward are recorded as deferred tax assets on the balance sheet and impaired if they are deemed not recoverable; only amounts for which future use is deemed probable are recognized.

    Deferred tax assets and liabilities are not discounted.

    Taxes payable in respect of the distribution of retained earnings of subsidiaries give rise to provisions if distribution is deemed probable.

27. Revenue recognition

    Definition of revenue

    Revenue mainly comprises retail sales within the Group's store network (including e-commerce websites) and wholesale sales to agents and distributors. Sales made in stores owned by third parties are treated as retail transactions if the risks and rewards of ownership of the inventories are retained by the Group.

    Direct sales to customers are mostly made through retail stores in Fashion and Leather Goods and Selective Retailing, as well as certain Watches and Jewelry and Perfumes and Cosmetics brands. The Group recognizes revenue when title transfers to third-party customers, which is generally at the time of purchase by retail customers.

    Wholesale sales mainly concern the Wines and Spirits businesses, as well as certain Perfumes and Cosmetics and Watches and Jewelry brands. The Group recognizes revenue when title transfers to third-party customers.

    Revenue includes shipment and transportation costs re-billed to customers only when these costs are included in products' selling prices as a lump sum.

    Sales of services, mainly involved in the Group's "Other activities" segment, are recognized as the services are provided.

    Revenue is presented net of all forms of discount. In particular, payments made in order to have products referenced or, in accordance with agreements, to participate in advertising campaigns with the distributors, are deducted from related revenue.

    Provisions for product returns

    Perfumes and Cosmetics companies and, to a lesser extent, Fashion and Leather Goods and Watches and Jewelry companies may accept the return of unsold or outdated products from their customers and distributors. Retail sales, and in particular online sales, also result in product returns from customers.

    Where these practices are applied, revenue is reduced by the estimated amount of such returns, and a provision is recognized within "Other current liabilities" (see Note 22.2), along with a corresponding entry made to inventories. The estimated rate of returns is based on historical statistical data.

    Businesses undertaken in partnership with Diageo

    A significant proportion of revenue for the Group's Wines and Spirits businesses is generated within the framework of distribution agreements with Diageo, generally taking the form of shared entities that sell and deliver both groups' products to customers. The income statement and balance sheet of these entities is apportioned between the Group and Diageo based on distribution agreements. According to those agreements, the assets, liabilities, income and expenses of such entities are consolidated only in proportion to the Group's share of operations.

28. Advertising and promotion expenses

    Advertising and promotion expenses include the costs of producing advertising media, purchasing media space, manufacturing samples, publishing catalogs and, in general, the cost of all activities designed to promote the Group's brands and products.

    Advertising and promotion expenses are recorded within marketing and selling expenses upon receipt or production of goods or upon completion of services rendered.

29. ‌Bonus share and similar plans

    The expected benefit granted to recipients under bonus share plans is calculated on the basis of the closing share price on the day before the Board of Directors' meeting at which the plan is instituted, less the amount of dividends expected to accrue during the vesting period. For any bonus share plans subject to performance conditions, the expense for the fiscal year includes provisional allocations for which the conditions are deemed likely to be met.

    For all plans, the amortization expense is apportioned on a straight-line basis in the income statement over the vesting period, with a corresponding impact on reserves in the balance sheet.

    For the LVMH Shares plan, the fair value of the benefit granted to employees (discount and matching employer contribution) is calculated on the basis of the share price on the date the shares are allocated.

30. Earnings per share

1. Fiscal year 2025

   Loro Piana

   On July 31, 2025, LVMH raised its stake in Loro Piana to 94% after acquiring a 9% stake from minority shareholders for 1.0 billion euros.

   No other significant changes in ownership interests in consolidated companies took place in fiscal year 2025.

   DFS

   In January 2026, LVMH finalized the sale of a significant portion of DFS' businesses as part of its plan to divest from DFS. Consequently, the assets and liabilities related to this business, for a net amount of 1.2 billion euros, were reclassified under "Assets and liabilities held for sale" (see Notes 1.12 and 24) in the consolidated balance sheet as of December 31, 2025, in particular the trade name valued at 1.5 billion euros. The 0.5 billion euro estimated loss was recognized within "Other operating income and expenses" (see Note 26). In 2025, revenue for DFS came to 1,494 million euros.

2. Fiscal year 2024

   Partnership with Accor to develop Orient Express

   In June 2024, LVMH and Accor entered into a strategic partnership to accelerate the development of Orient Express, in particular through the operation of trains, hotels and sailing ships.

   Other

   In January 2024, LVMH acquired a majority stake in Nuti Ivo SpA, an Italian company founded in 1955, specializing in leather-working. Throughout 2024, LVMH acquired majority stakes, for immaterial amounts, in companies specializing in a range of different craft expertise, including leather-working, jewelry, metal parts and watch movements.

   In June 2024, LVMH acquired the entire share capital of Swiza, the owner of high-end Swiss clock manufacturer L'Epée 1839.

   In June 2024, LVMH acquired an additional 10% stake in Maison Francis Kurkdjian.

   In September 2024, LVMH sold 100% of Off-White.

   In October 2024, LVMH acquired the entire share capital of weekly magazine Paris Match, one of France's most high-profile press publications, launched in March 1949, and acquired an additional 5% stake in Sephora's Middle East business.

3. Fiscal year 2023

   Minuty

   In January 2023, Moët Hennessy took a majority stake in the share capital of Minuty SAS and acquired control of the company's winegrowing assets. Château Minuty is renowned worldwide for its rosé wine, which has been a Grand Cru Classé since 1955, and is located in Gassin on the peninsula of Saint-Tropez (France).

   Starboard & Onboard Cruise Services

   In December 2023, LVMH sold an 80% stake in Cruise Line Holdings Co. - the holding company of the Starboard & Onboard Cruise Services businesses - to a group of private investors.

   Other

   In September 2023, LVMH acquired a majority stake in the Platinum Invest group, a French high jewelry manufacturer, in order to reinforce its production capacity, in particular for Tiffany.

   In September 2023 and November 2023, Thélios acquired all the shares in the companies that own the iconic French and American eyewear brands Vuarnet and Barton Perreira, respectively.

   LVMH Métiers d'Art acquired a majority stake in Spanish tannery Verdeveleno in October 2023, and in December 2023 it acquired all the shares in Menegatti, an Italian company specializing in the production of metal parts.

   In May 2023, LVMH entered into an agreement to acquire a majority stake in Nuti Ivo SpA.

4. Impact on net cash and cash equivalents of changes in ownership interests in consolidated entities

1. Changes during the fiscal year

   The carrying amounts of brands, trade names and other intangible assets changed as follows during the fiscal year:

   Gross value (EUR millions)	Brands	Trade names	Software, websites	Other intangible assets	Total
   As of December 31, 2024	21,805	4,205	4,398	1,843	32,251
   Acquisitions	-	-	284	535	819
   Disposals and retirements	(53)	-	(192)	(416)	(661)
   Changes in the scope of consolidation	-	-	-	1	1
   Translation adjustment	(921)	(451)	(170)	(36)	(1,577)
   Reclassifications (a)	-	(3,441)	92	(305)	(3,653)
   As of December 31, 2025	20,832	313	4,413	1,622	27,179

   Amortization and impairment (EUR millions)	Brands	Trade names	Software, websites	Other intangible assets	Total
   As of December 31, 2024	(810)	(1,737)	(3,168)	(1,119)	(6,834)
   Amortization expense	(4)	-	(534)	(211)	(748)
   Impairment expense	-	(487)	(2)	(20)	(509)
   Disposals and retirements	53	-	193	416	661
   Changes in the scope of consolidation	-	-	-	-	-
   Translation adjustment	23	214	126	21	384
   Reclassifications (a)	-	1,962	111	61	2,134
   As of December 31, 2025	(738)	(48)	(3,274)	(851)	(4,912)
   Carrying amount as of December 31, 2025	20,094	265	1,139	771	22,267

   (a) The amounts presented in "Reclassifications" mainly comprise DFS assets reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

   Translation adjustments mainly related to brands and trade names recognized in US dollars, based on fluctuations in the US dollar-to-euro exchange rate between January 1 and December 31, 2025.

2. Changes during prior fiscal years

   The carrying amounts of brands, trade names and other intangible assets changed as follows during prior fiscal years:

   Carrying amount (EUR millions)	Brands	Trade names	Software, websites	Other intangible assets	Total
   As of December 31, 2022	20,685	2,410	926	544	24,565
   Acquisitions	-	-	352	648	1,000
   Disposals and retirements	-	-	-	-	-
   Changes in the scope of consolidation	110	-	1	13	124
   Amortization expense	(7)	-	(454)	(258)	(719)
   Impairment expense	-	-	3	(1)	2
   Translation adjustment	(163)	(75)	(16)	2	(252)
   Reclassifications	-	-	223	(220)	3
   As of December 31, 2023	20,625	2,336	1,035	729	24,724
   Acquisitions	-	-	393	444	837
   Disposals and retirements	-	-	-	-	-
   Changes in the scope of consolidation	(91)	-	1	115	25
   Amortization expense	(7)	-	(511)	(295)	(813)
   Impairment expense	20	-	(3)	1	17
   Translation adjustment	447	132	21	4	603
   Reclassifications	-	-	295	(272)	23
   As of December 31, 2024	20,995	2,467	1,230	724	25,417

3. Brands and trade names

   The breakdown of brands and trade names by business group is as follows:

   (EUR millions)	December 31, 2025			Dec. 31, 2024 Dec. 31, 2023
   	Gross	Amortization and impairment	Net	Net Net
   Wines and Spirits	3,448	(124)	3,324	3,413 3,362
   Fashion and Leather Goods	5,343	(316)	5,026	5,030 5,216
   Perfumes and Cosmetics	1,352	(66)	1,286	1,298 1,300
   Watches and Jewelry	10,174	(106)	10,068	10,864 10,458
   Selective Retailing	265	(1)	264	2,467 2,336
   Other activities	563	(173)	390	390 290
   Brands and trade names	21,144	(786)	20,358	23,462 22,961

   The brands and trade names recognized are those that the Group has acquired. As of December 31, 2025, the principal acquired brands and trade names were:

   • Wines and Spirits: Hennessy, Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Château d'Yquem, Belvedere, Glenmorangie, Bodega Numanthia, Château

     d'Esclans, Armand de Brignac, Joseph Phelps and Château Minuty;

   • Fashion and Leather Goods: Louis Vuitton, Fendi, Celine, Loewe, Givenchy, Kenzo, Berluti, Pucci, Loro Piana and Rimowa;

   • Perfumes and Cosmetics: Parfums Christian Dior, Guerlain, Parfums Givenchy, Make Up For Ever, Benefit Cosmetics, Fresh, Acqua di Parma, Fenty, Ole Henriksen, Maison Francis

     Kurkdjian and Officine Universelle Buly 1803;

   • Watches and Jewelry: Tiffany, Bvlgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred, L'Epée 1839 and Repossi;

   • Selective Retailing: Sephora and Le Bon Marché;

   • Other activities: the publications of the media group Les Échos-Investir, the Le Parisien-Aujourd' hui en France daily newspaper, Paris Match magazine, the Royal Van Lent-Feadship

     brand, La Samaritaine, the Belmond hotel group and the Cova pastry shop brand.

     ‌These brands and trade names are recognized in the balance sheet at their value determined as of the date of their acquisition by the Group, which may be much less than their value in use or their market value as of the closing date for the Group's consolidated financial statements. This is notably the case for the brands

     Note 4. Goodwill

     Louis Vuitton, Christian Dior Couture, Veuve Clicquot and Parfums Christian Dior, and the trade name Sephora, with the understanding that this list must not be considered exhaustive.

     See also Note 5 for the impairment testing of brands, trade names and other intangible assets with indefinite useful lives.

     (EUR millions) Goodwill arising on consolidated investments Goodwill arising on purchase commitments for minority interests' shares	December 31, 2025			Dec. 31, 2024 Dec. 31, 2023
     	Gross 17,616 386	Impairment (1,217) -	Net 16,399 386	Net Net 17,538 16,810 1,239 5,682
     Total	18,002	(1,217)	16,784	18,776 22,492

     Changes in net goodwill during the fiscal years presented break down as follows:

     (EUR millions)	2025			2024 2023
     	Gross	Impairment	Net	Net Net
     As of January 1	20,529	(1,752)	18,776	22,492 23,250
     Changes in the scope of consolidation	5	3	8	156 713
     Changes in purchase commitments
     for minority interests' shares	(900)	-	(900)	(4,378) (1,235)
     Changes in impairment	-	(135)	(135)	(12) -
     Translation adjustment	(1,049)	84	(965)	519 (236)
     Other movements, including transfers (a)	(584)	584	-	- -
     As of December 31	18,002	(1,217)	16,784	18,776 22,492

     1. The amounts presented in "Other movements, including transfers" mainly comprise DFS goodwill reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

1. to 9.1 10.1 3.0

2. to 9.1 10.4 3.0

   9.0 to 9.5 8.4 2.5

3. to 9.3 3.5 2.0

1. Changes during the fiscal year

   Changes in property, plant and equipment during the fiscal year broke down as follows:

   Gross value (EUR millions)	Vineyard land and	Land and buildings	Investment property	Leasehold improvements, machinery and equipment	Assets in progress	Other property,	Total
   	producing					plant and
   	vineyards			Stores and Production, Other		equipment
   				hospitality logistics
   				sites
   As of December 31, 2024	3,179	16,896	378	16,135 4,759 2,578	2,394	3,017	49,336
   Acquisitions	7	361	5	1,018 197 163	2,023	77	3,851
   Change in the market
   value of vineyard land	21	-	-	- - -	-	-	21
   Disposals and retirements	(8)	(200)	-	(712) (98) (133)	(9)	(43)	(1,202)
   Changes in the scope
   of consolidation	-	(23)	-	(3) 1 -	-	-	(25)
   Translation adjustment	(46)	(562)	(10)	(1,192) (102) (118)	(109)	(71)	(2,209)
   Other movements,
   including transfers (a)	18	(91)	4	1,171 164 (119)	(2,201)	100	(954)
   As of December 31, 2025	3,171	16,382	377	16,418 4,921 2,371	2,098	3,081	48,818

   Depreciation and impairment	Vineyard land and	Land and buildings	Investment property	Leasehold improvements, machinery and equipment			Assets in progress	Other property,	Total
   (EUR millions)	producing							plant and
   	vineyards			Stores and	Production,	Other		equipment
   				hospitality	logistics
   				sites
   As of December 31, 2024	(141)	(3,441)	(57)	(10,934)	(3,183)	(1,626)	(74)	(626)	(20,083)
   Depreciation expense	(9)	(369)	(4)	(1,683)	(318)	(226)	-	(93)	(2,703)
   Impairment expense	-	(32)	-	12	(3)	4	17	-	(3)
   Disposals and retirements	3	156	-	708	93	136	1	42	1,138
   Changes in the scope
   of consolidation	-	4	-	2	(1)	-	-	-	6
   Translation adjustment	3	133	1	778	60	86	3	17	1,081
   Other movements,
   including transfers (a)	-	323	-	301	(5)	190	42	1	852
   As of December 31, 2025	(144)	(3,227)	(59)	(10,817)	(3,358)	(1,436)	(12)	(659)	(19,712)
   Carrying amount as of December 31, 2025	3,027	13,155	318	5,601	1,563	935	2,086	2,421	29,106

   (a) The amounts presented in "Other movements, including transfers" mainly comprise DFS assets reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

   "Other property, plant and equipment" included in particular the works of art owned by the Group.

   As of December 31, 2025, purchases of property, plant and equipment mainly included investments by the Group's Maisons - notably Louis Vuitton, Christian Dior Couture, Tiffany and Sephora - in their retail networks. They also included investments by Parfums Christian Dior and the champagne houses in their production equipment, as well as investments relating to the Group's hospitality activities.

   Translation adjustments on property, plant and equipment mainly related to non-current assets recognized in US dollars, Chinese renminbi and pounds sterling, based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and December 31, 2025.

   The market value of investment property, according to appraisals by independent third parties, was at least 0.5 billion euros as of December 31, 2025. The valuation methods used are based on market data.

2. Changes during prior fiscal years

1. Right-of-use assets

   Right-of-use assets break down as follows, by type of underlying asset:

   (EUR millions) Stores Offices Other	December 31, 2025			Dec. 31, 2024 Dec. 31, 2023
   	Gross 20,413 3,740 1,468	Depreciation and impairment (8,970) (1,524) (522)	Net 11,444 2,215 946	Net Net 12,984 12,206 2,300 2,253 1,043 896
   Capitalized fixed lease payments Leasehold rights	25,621 902	(11,016) (653)	14,605 249	16,327 15,355 286 317
   Total	26,523	(11,669)	14,854	16,613 15,673

   The carrying amounts of right-of-use assets changed as follows during the fiscal year:

   Carrying amount (EUR millions)		Capitalized fixed lease payments	Leasehold rights	Total
   	Stores	Offices Other Total
   As of December 31, 2024	12,984	2,300 1,043 16,327	286	16,613
   New leases entered into	2,351	343 288 2,982	12	2,994
   Changes in assumptions	387	82 31 500	-	500
   Leases ended or canceled	(60)	(12) (13) (84)	2	(82)
   Depreciation expense	(2,555)	(390) (167) (3,113)	(56)	(3,169)
   Impairment expense	38	2 (18) 22	4	26
   Changes in the scope of consolidation	-	- - -	-	-
   Translation adjustment	(925)	(107) (74) (1,107)	(4)	(1,110)
   Other movements, including transfers (a)	(776)	(2) (145) (923)	5	(918)
   As of December 31, 2025	11,444	2,215 946 14,605	249	14,854

   (a) The amounts presented in "Other movements, including transfers" mainly comprise DFS right-of-use assets reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

   "New leases entered into" involved store leases, in particular for Louis Vuitton, Christian Dior Couture, Celine, Tiffany and Loewe. They also included leases of office space, mainly for Louis Vuitton and Tiffany. Changes in assumptions mainly resulted from adjustments to estimated lease terms. These two types of changes led to corresponding increases in right-of-use assets and lease liabilities.

2. Lease liabilities

   Lease liabilities break down as follows:

   Translation adjustments mainly related to leases recognized in US dollars, Japanese yen and Hong Kong dollars, based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and December 31, 2025.

   (EUR millions) Non-current lease liabilities Current lease liabilities	Dec. 31, 2025 13,384 2,634	Dec. 31, 2024 Dec. 31, 2023 14,860 13,810 2,972 2,728
   Total	16,018	17,832 16,538

   The change in lease liabilities during the fiscal year breaks down as follows:

   (EUR millions)	Stores	Offices	Other	Total
   As of December 31, 2024	14,099	2,633	1,101	17,832
   New leases entered into	2,315	339	280	2,934
   Principal repayments	(2,441)	(355)	(143)	(2,938)
   Change in accrued interest	4	3	1	7
   Leases ended or canceled	(78)	(14)	(12)	(105)
   Changes in assumptions	408	81	31	520
   Changes in the scope of consolidation	-	-	-	-
   Translation adjustment	(1,025)	(125)	(85)	(1,235)
   Other movements, including transfers (a)	(830)	(4)	(164)	(998)
   As of December 31, 2025	12,452	2,558	1,009	16,018

   (a) The amounts presented in "Other movements, including transfers" mainly comprise DFS lease liabilities reclassified under "Liabilities held for sale" as of December 31, 2025 (see Note 2).

   The following table presents the contractual schedule of disbursements for lease liabilities as of December 31, 2025:

   (EUR millions)		As of December 31, 2025
   		Total minimum future payments
   Maturity:	2026	2,990
   	2027	2,702
   	2028	2,295
   	2029	1,974
   	2030	1,635
   	Between 2031 and 2035	4,847
   	Between 2036 and 2040	1,041
   	Thereafter	680
   Total minimum future payments		18,163
   Impact of discounting		(2,145)
   Total lease liability		16,018

3. Breakdown of lease expense

   The lease expense for the fiscal year breaks down as follows:

   (EUR millions) Depreciation and impairment of capitalized fixed lease payments Interest on lease liabilities	2025 3,091 553	2024 2023 3,168 2,980 510 393
   Capitalized fixed lease expense Variable lease payments Short-term leases and/or low-value leases	3,644 2,184 644	3,678 3,373 2,509 2,788 582 548
   Other lease expenses	2,828	3,091 3,336
   Total	6,471	6,769 6,710

   In certain countries, leases for stores entail the payment of both minimum amounts and variable amounts, especially for stores with lease payments indexed to revenue. As required by IFRS 16, only the minimum fixed lease payments are capitalized. "Other lease expenses" mainly relate to variable lease payments.

   For leases not required to be capitalized, there is little difference between the expense recognized and the payments made.

4. Changes during prior fiscal years

   The change in right-of-use assets during the previous fiscal years breaks down as follows, by type of underlying asset:

   Carrying amount (EUR millions)		Capitalized fixed lease payments	Leasehold rights	Total
   	Stores	Offices Other Total
   As of December 31, 2022	11,202	2,274 856 14,332	277	14,609
   New leases entered into	2,900	621 164 3,686	78	3,763
   Changes in assumptions	753	45 40 838	-	838
   Leases ended or canceled	(99)	(2) - (100)	-	(100)
   Depreciation expense	(2,477)	(377) (137) (2,991)	(55)	(3,046)
   Impairment expense	4	7 - 11	4	15
   Changes in the scope of consolidation	-	(7) (2) (9)	-	(9)
   Translation adjustment	(335)	(40) (23) (398)	-	(399)
   Other movements, including transfers	259	(268) (3) (12)	14	2
   As of December 31, 2023	12,206	2,253 896 15,355	317	15,673
   New leases entered into	2,346	282 275 2,903	28	2,931
   Changes in assumptions	698	104 34 837	-	837
   Leases ended or canceled	(19)	(1) (7) (26)	(3)	(29)
   Depreciation expense	(2,587)	(383) (160) (3,130)	(56)	(3,186)
   Impairment expense	(47)	13 (5) (38)	(4)	(42)
   Changes in the scope of consolidation	-	(1) 8 7	-	7
   Translation adjustment	358	37 18 413	2	414
   Other movements, including transfers	27	(4) (17) 7	1	8
   As of December 31, 2024	12,984	2,300 1,043 16,327	286	16,613

   The change in lease liabilities during the previous fiscal years breaks down as follows:

   (EUR millions)	Stores	Offices	Other	Total
   As of December 31, 2022	12,024	2,530	854	15,408
   New leases entered into	2,861	602	163	3,626
   Principal repayments	(2,338)	(320)	(118)	(2,777)
   Change in accrued interest	27	8	2	37
   Leases ended or canceled	(142)	(5)	(1)	(147)
   Changes in assumptions	750	46	40	835
   Changes in the scope of consolidation	(1)	(9)	(2)	(11)
   Translation adjustment	(352)	(44)	(24)	(420)
   Other movements, including transfers	254	(262)	(4)	(12)
   As of December 31, 2023	13,083	2,546	910	16,538
   New leases entered into	2,321	272	275	2,868
   Principal repayments	(2,401)	(335)	(139)	(2,875)
   Change in accrued interest	17	6	3	26
   Leases ended or canceled	(21)	(2)	(8)	(32)
   Changes in assumptions	686	104	33	824
   Changes in the scope of consolidation	-	(1)	11	11
   Translation adjustment	408	45	22	475
   Other movements, including transfers	5	(3)	(6)	(4)
   As of December 31, 2024	14,099	2,633	1,101	17,832

5. Off-balance sheet commitments

   Off-balance sheet commitments relating to leases with fixed lease payments break down as follows:

   (EUR millions) Contracts commencing after the balance sheet date Low-value leases and short-term leases	Dec. 31, 2025 315 334	Dec. 31, 2024 Dec. 31, 2023 725 888 293 286
   Total undiscounted future payments	649	1,018 1,174

   As part of the active management of its retail network, the Group negotiates and enters into leases with commencement dates after the balance sheet date. Obligations to make payments under these leases are reported as off-balance sheet commitments rather than being recognized as lease liabilities.

6. Discount rates

   In addition, the Group may enter into leases or concession contracts that have variable guaranteed amounts, which are not reflected in the commitments above.

   The average discount rate for lease liabilities breaks down as follows for leases in effect as of December 31, 2025:

   (as %)	Average rate for leases in effect as of December 31, 2025	Average rate for leases entered into in 2025
   Euro	2.4	3.2
   US dollar	4.1	4.8
   Japanese yen	1.0	1.6
   Hong Kong dollar	3.7	3.6
   Other currencies	3.6	3.8
   Average rate for the Group	3.2	3.5

7. Termination and renewal options

1. Cash and cash equivalents

   (EUR millions) Term deposits (less than 3 months) SICAV and FCP funds Ordinary bank accounts	Dec. 31, 2025 2,589 934 5,419	Dec. 31, 2024 Dec. 31, 2023 2,200 1,396 566 283 6,994 6,241
   Cash and cash equivalents per balance sheet	8,941	9,760 7,921

   The reconciliation between cash and cash equivalents as shown in the balance sheet and net cash and cash equivalents appearing in the cash flow statement is as follows:

   (EUR millions) Cash and cash equivalents Bank overdrafts	Dec. 31, 2025 8,941 (434)	Dec. 31, 2024 Dec. 31, 2023 9,760 7,921 (361) (255)
   Net cash and cash equivalents per cash flow statement	8,507	9,399 7,666

2. Change in working capital

   The change in working capital breaks down as follows for the fiscal years presented:

   (EUR millions)	Notes	2025	2024 2023
   Change in inventories and work in progress	11	(1,315)	(1,114) (4,230)
   Change in trade accounts receivable	12	213	137 (695)
   Change in customer deposits and amounts owed to customers	22.1	9	106 24
   Change in trade accounts payable	22.1	215	(664) 434
   Change in other receivables and payables		303	(389) (107)
   Change in working capital (a)		(576)	(1,925) (4,577)

   (a) Increase/(Decrease) in cash and cash equivalents.

3. Operating investments

   Operating investments comprise the following elements for the fiscal years presented:

   (EUR millions)	Notes	2025	2024 2023
   Purchase of intangible assets	3	(819)	(837) (1,000)
   Purchase of property, plant and equipment	6	(3,851)	(4,715) (6,807)
   Change in accounts payable related to purchases of non-current assets		63	29 324
   Initial direct costs	7	12	4 (53)
   Net cash used in purchases of non-current assets		(4,595)	(5,519) (7,536)
   Net cash from disposals of non-current assets		38	21 136
   Guarantee deposits paid and other cash flows related to operating investments		(10)	(33) (78)
   Operating investments (a)		(4,567)	(5,531) (7,478)

   (a) Increase/(Decrease) in cash and cash equivalents.

4. Interim and final dividends paid and other equity-related transactions

1. Equity

   (EUR millions)	Notes	Dec. 31, 2025	Dec. 31, 2024 Dec. 31, 2023
   Share capital	16.2	361	361 361
   Share premium account		194	194 194
   Christian Dior shares	16.3	(17)	(17) (17)
   Cumulative translation adjustment	16.5	(169)	1,223 652
   Revaluation reserves		752	528 594
   Other reserves		18,874	16,797 13,438
   Net profit, Group share		4,531	5,208 6,304
   Equity, Group share		24,527	24,294 21,527

2. Share capital

   As of December 31, 2025, the share capital consisted of 180,507,516 fully paid-up shares (180,507,516 as of both December 31, 2024 and December 31, 2023), with a par value of 2 euros per share, including 176,438,535 shares with double

3. Christian Dior shares

   The portfolio of Christian Dior shares is allocated as follows:

   voting rights (176,474,116 as of December 31, 2024 and 176,489,760 as of December 31, 2023); double voting rights are attached to registered shares held for more than three years.

   (number o/ shares or EUR millions) Coverage of bonus share and performance share plans Coverage of future plans	December 31, 2025	Dec. 31, 2024 Dec. 31, 2023
   	Number Amount - - 96,936 17	Amount Amount - - 17 17
   Christian Dior shares	96,936 17	17 17

   No portfolio movements of Christian Dior shares took place during the fiscal year ended December 31, 2025.

4. Dividends paid by the parent company, Christian Dior SE

   In accordance with French regulations, dividends are taken from the profit for the fiscal year and the distributable reserves of the parent company, after deducting applicable withholding tax and the cost of treasury shares.

   As of December 31, 2025, the distributable amount was 4,530 million euros; after taking into account the proposed dividend distribution in respect of the 2025 fiscal year, it was 3,041 million euros.

   (EUR millions)	2025	2024 2023
   Interim dividend for the current fiscal year
   (2025: 6.05 euros; 2024: 5.50 euros; 2023: 5.50 euros)	1,091	992 992
   Impact of treasury shares	-	- -
   Gross amount disbursed for the fiscal year	1,091	992 992
   Final dividend for the previous fiscal year (2024: 7.50 euros; 2023: 7.50 euros; 2022: 7.00 euros) Impact of treasury shares	1,354 (1)	1,354 1,264 (1) (1)
   Gross amount disbursed for the previous fiscal year	1,353	1,353 1,263
   Total gross amount disbursed during the fiscal year (a)	2,445	2,345 2,255

   (a) Excluding the impact of tax regulations applicable to the recipient.

   A total gross dividend of 14.30 euros per share in respect of fiscal year 2025 will be proposed at the Shareholders' Meeting of April 23, 2026. Taking into account the interim dividend paid in December 2025, the final dividend, is 8.25 euros per share,

5. Cumulative translation adjustment

   representing a total of 1,489 million euros before deduction of the amount attributable to treasury shares held at the ex-dividend date.

   The change in "Cumulative translation adjustment" recognized within "Equity, Group share", net of hedging effects of net assets denominated in foreign currency, breaks down as follows by currency:

   (EUR millions)	Dec. 31, 2025	Change	Dec. 31, 2024	Dec. 31, 2023
   US dollar	(62)	(1,023)	961	424
   Swiss franc	503	15	488	516
   Japanese yen	(176)	(105)	(71)	(53)
   Hong Kong dollar	102	(81)	182	133
   Pound sterling	(36)	(41)	5	(33)
   Other currencies	(417)	(157)	(259)	(252)
   Foreign currency net investment hedges	(84)	(1)	(83)	(83)
   Total, Group share	(169)	(1,392)	1,223	652

6. ‌Strategy relating to the Group's financial structure

   The Group believes that the management of its financial structure, together with the development of the companies it owns and the management of its brand portfolio, helps create value for its shareholders. Maintaining a suitable-quality credit rating is a core objective for the Group, ensuring good access to markets under favorable conditions, allowing it to seize opportunities and procure the resources it needs to develop its business.

   To this end, the Group monitors a certain number of financial ratios and aggregate measures of financial risk, including:

   • net financial debt (see Note 19) to equity;

   • cash from operations before changes in working capital to net financial debt;

   • net cash from operating activities;

   • operating free cash flow (see the consolidated cash flow statement);

1. General characteristics of plans

   Bonus share and performance share plans

   At the Shareholders' Meeting of April 18, 2024, the shareholders renewed the authorization given to the Board of Directors, for a period of twenty-six months expiring in June 2026, to grant existing or newly issued shares as bonus shares to Group company employees and/or senior executives, on one or more

2. Bonus share and performance share plans

   No bonus share plans were in effect in fiscal year 2025.

3. Expense for the fiscal year