Christian Dior : Consolidated financial statements as of December, 31 2025

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Consolidated financial statements as of December 31, 2025 Consolidated financial statements Consolidated income statement 2 Consolidated statement of comprehensive gains and losses 3 Consolidated balance sheet 4 Consolidated statement of changes in equity 5 Consolidated cash flow statement 6 Notes to the consolidated financial statements 7 Consolidated companies 67 Companies not included in the scope of consolidation 75 Statutory Auditors' report on the consolidated financial statements 76 As table totals are based on unrounded figures, there may be discrepancies between these totals and the sum of their rounded component figures. 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. ‌Consolidated income statement Consolidated income statement (EUR millions, except /or earnings per share) Revenue Cost of sales Notes 24-25 2025 80,807 (27,279) 2024 2023 84,683 86,153 (27,918) (26,876) Gross margin 53,528 56,765 59,277 Marketing and selling expenses (29,912) (31,000) (30,767) General and administrative expenses (5,941) (6,228) (5,721) Income/(Loss) from joint ventures and associates 8 75 28 7 Profit from recurring operations 24-25 17,750 19,565 22,796 Other operating income and expenses 26 (656) (664) (242) Operating profit 17,094 18,901 22,554 Cost of net financial debt (345) (439) (363) Interest on lease liabilities (553) (510) (393) Other financial income and expenses 503 149 (170) Net financial income/(expense) 27 (395) (800) (926) Income taxes 28 (5,532) (5,193) (5,707) Net profit before minority interests 11,167 12,908 15,921 Minority interests 18 6,636 7,700 9,617 Net profit, Group share 4,531 5,208 6,304 Basic Group share of net earnings per share (EUR) 29 25.12 28.87 34.94 Number of shares on which the calculation is based 180,410,580 180,410,580 180,410,580 Diluted Group share of net earnings per share (EUR) 29 25.11 28.86 34.93 Number of shares on which the calculation is based 180,410,580 180,410,580 180,410,580 ‌Consolidated statement of comprehensive gains and losses Consolidated statement of comprehensive gains and losses (EUR millions) Notes 2025 2024 2023 Net profit before minority interests 11,167 12,908 15,921 Translation adjustments (3,480) 1,470 (1,083) Amounts transferred to income statement 6 (25) (21) Tax impact - - - 16.5, 18 (3,474) 1,445 (1,104) Change in value of hedges of future foreign currency cash flows 789 11 477 Amounts transferred to income statement (298) (230) (523) Tax impact (120) 50 13 371 (169) (33) Change in value of the ineffective portion of hedging instruments (including cost of hedging) (62) (357) (237) Amounts transferred to income statement 194 253 362 Tax impact (32) 26 (29) 101 (78) 96 Gains and losses recognized in equity, transferable to income statement (3,002) 1,198 (1,041) Change in value of vineyard land 6 21 23 53 Amounts transferred to consolidated reserves - - - Tax impact (7) (2) (11) 14 21 41 Employee benefit obligations: Change in value resulting from actuarial gains and losses 27 73 30 Tax impact (6) (22) (7) 21 51 23 Change in value of non-current available for sale financial assets 9 44 - - Tax impact (1) - - 43 - - Gains and losses recognized in equity, not transferable to income statement 77 72 64 Total gains and losses recognized in equity (2,926) 1,270 (977) Comprehensive income 8,241 14,178 14,944 Minority interests 4,891 8,469 9,036 Comprehensive income, Group share 3,350 5,709 5,908 ‌Consolidated balance sheet Consolidated balance sheet Assets (EUR millions) Notes Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Brands and other intangible assets 3 22,267 25,417 24,724 Goodwill 4 16,784 18,776 22,492 Property, plant and equipment 6 29,106 29,253 26,697 Right-of-use assets 7 14,854 16,613 15,673 Investments in joint ventures and associates 8 1,214 1,343 991 Non-current available for sale financial assets 9 1,891 1,632 1,363 Other non-current assets 10 983 1,106 1,017 Deferred tax 28 3,738 4,545 3,992 Non-current assets 90,837 98,686 96,950 Inventories and work in progress 11 22,659 23,669 22,952 Trade accounts receivable 12 4,332 4,730 4,728 Income taxes 759 986 533 Other current assets 13 8,900 8,512 7,790 Assets held for sale 2 2,796 - - Cash and cash equivalents 15 8,941 9,760 7,921 Current assets 48,388 47,657 43,923 Total assets 139,225 146,343 140,873 Liabilities and equity (EUR millions) Equity, Group share Minority interests Notes 16.1 18 Dec. 31, 2025 24,527 42,010 Dec. 31, 2024 Dec. 31, 2023 24,294 21,527 42,558 38,766 Equity 66,537 66,852 60,293 Long-term borrowings 19 12,418 12,091 11,227 Non-current lease liabilities 7 13,384 14,860 13,810 Non-current provisions and other liabilities 20 3,524 3,820 3,844 Deferred tax 28 6,600 6,948 6,616 Purchase commitments for minority interests' shares 21 6,331 8,056 11,919 Non-current liabilities 42,258 45,775 47,416 Short-term borrowings 19 7,940 10,866 10,696 Current lease liabilities 7 2,634 2,972 2,728 Trade accounts payable 22.1 8,222 8,630 9,049 Income taxes 828 1,234 1,150 Current provisions and other liabilities 22.2 9,190 10,014 9,541 Liabilities held for sale 2 1,616 - - Current liabilities 30,430 33,716 33,164 Total liabilities and equity 139,225 146,343 140,873 ‌Consolidated statement of changes in equity Consolidated statement of changes in equity (EUR millions) Number of shares Share capital Share premium Christian Dior Cumulative translation Revaluation reserves Net profit Total equity account treasury adjustment Available Hedges Vineyard Employee and Group Minority Total shares for sale financial assets of future foreign currency cash flows and cost of hedging land benefit commitments other reserves share interests Notes 16.2 16.1 16.3 16.5 18 As of Dec. 31, 2022 180,507,516 361 194 (17) 1,087 - 4 468 75 16,866 19,038 35,276 54,314 Gains and losses recognized in equity (441) - 24 13 8 - (396) (581) (977) Net profit 6,304 6,304 9,617 15,921 Comprehensive income (441) - 24 13 8 6,304 5,908 9,036 14,944 Bonus share plan-related expenses 47 47 70 117 (Acquisition)/Disposal of Christian Dior shares - - - - Capital increase in subsidiaries - - 19 19 Interim and final dividends paid (2,255) (2,255) (4,153) (6,408) Changes in control of consolidated entities - - 10 10 Acquisition and disposal of minority interests' shares 6 - - 2 - (970) (962) (1,073) (2,035) Purchase commitments for minority interests' shares (249) (249) (419) (668) As of Dec. 31, 2023 180,507,516 361 194 (17) 652 - 28 483 83 19,743 21,527 38,766 60,293 Gains and losses recognized in equity 569 - (95) 7 20 - 501 769 1,270 Net profit 5,208 5,208 7,700 12,908 Comprehensive income 569 - (95) 7 20 5,208 5,709 8,469 14,178 Bonus share plan-related expenses 78 78 113 191 (Acquisition)/Disposal of Christian Dior shares - - - - Capital increase in subsidiaries - - 33 33 Interim and final dividends paid (2,345) (2,345) (4,327) (6,672) Changes in control of consolidated entities - - 111 111 Acquisition and disposal of minority interests' shares 2 - - 1 - (483) (480) (217) (697) Purchase commitments for minority interests' shares (195) (195) (390) (585) As of Dec. 31, 2024 180,507,516 361 194 (17) 1,223 - (67) 491 103 22,006 24,294 42,558 66,852 Gains and losses recognized in equity (1,402) 18 189 6 8 - (1,181) (1,745) (2,926) Net profit 4,531 4,531 6,636 11,167 Comprehensive income (1,402) 18 189 6 8 4,531 3,350 4,891 8,241 Bonus share plan-related expenses 67 67 98 165 (Acquisition)/Disposal of Christian Dior shares - - - - Capital increase in subsidiaries - - 13 13 Interim and final dividends paid (2,445) (2,445) (4,152) (6,597) Changes in control of consolidated entities - - (2) (2) Acquisition and disposal of minority interests' shares 10 - (1) 4 1 (666) (652) (1,189) (1,841) Purchase commitments for minority interests' shares (87) (87) (207) (294) As of Dec. 31, 2025 180,507,516 361 194 (17) (169) 18 121 501 112 23,406 24,527 42,010 66,537 ‌Consolidated cash flow statement (EUR millions) Notes 2025 2024 2023 I. OPERATING ACTIVITIES Operating profit 17,094 18,901 22,554 (Income)/Loss and dividends received from joint ventures and associates 8 13 29 42 Net increase in depreciation, amortization and provisions 4,856 4,567 4,144 Depreciation of right-of-use assets 7.1 3,143 3,228 3,031 Other adjustments and computed expenses (172) 488 (260) Cash from operations before changes in working capital 24,934 27,212 29,511 Cost of net financial debt: interest paid (287) (354) (453) Lease liabilities: interest paid (545) (483) (356) Tax paid (4,665) (5,531) (5,729) Change in working capital 15.2 (576) (1,925) (4,577) Net cash from/(used in) operating activities 18,860 18,919 18,397 II. INVESTING ACTIVITIES Operating investments 15.3 (4,567) (5,531) (7,478) Purchase and proceeds from sale of consolidated investments 2.4 149 (438) (721) Dividends received 21 9 5 Tax paid related to non-current available for sale financial assets and consolidated investments - - - Purchase and proceeds from sale of non-current available for sale financial assets 9 (243) (579) (116) Net cash from/(used in) investing activities (4,640) (6,539) (8,310) III. FINANCING ACTIVITIES Interim and final dividends paid 15.4 (6,878) (6,982) (6,849) Purchase and proceeds from sale of minority interests 2.4 (2,945) (784) (2,051) Other equity-related transactions 15.4 6 35 15 Proceeds from borrowings 19 2,095 3,595 5,990 Repayment of borrowings 19 (4,228) (3,676) (3,968) Repayment of lease liabilities 7.2 (2,974) (2,915) (2,818) Purchase and proceeds from sale of current available for sale financial assets 14 59 (1) 144 Net cash from/(used in) financing activities (14,865) (10,728) (9,536) IV. EFFECT OF EXCHANGE RATE CHANGES (248) 80 (273) Net increase/(decrease) in cash and cash equivalents (I+II+III+IV) (892) 1,734 278 Cash and cash equivalents at beginning of period 15.1 9,399 7,666 7,388 Cash and cash equivalents at end of period 15.1 8,507 9,399 7,666 Total tax paid (4,946) (5,825) (6,150) Alternative performance measure The following table presents the reconciliation between "Net cash from operating activities" and "Operating free cash flow" for the fiscal years presented: (EUR millions) 2025 2024 2023 Net cash from operating activities 18,860 18,919 18,397 Operating investments (4,567) (5,531) (7,478) Repayment of lease liabilities (2,974) (2,915) (2,818) Operating free cash flow (a) 11,319 10,473 8,101 (a) Under IFRS 16, fixed lease payments are treated partly as interest payments and partly as principal repayments. For its own operational management purposes, the Group treats all lease payments as components of its "Operating free cash flow", whether the lease payments made are fixed or variable. In addition, for its own operational management purposes, the Group treats operating investments as components of its "Operating free cash flow". ‌Notes to the consolidated financial statements Note 1. Accounting policies 8 Note 2. Changes in ownership interests in consolidated entities 17 Note 3. Brands, trade names and other intangible assets 19 Note 4. Goodwill 21 Note 5. Impairment testing of intangible assets with indefinite useful lives 22 Note 6. Property, plant and equipment 23 Note 7. Leases 26 Note 8. Investments in joint ventures and associates 30 Note 9. Non-current available for sale financial assets 30 Note 10. Other non-current assets 31 Note 11. Inventories and work in progress 31 Note 12. Trade accounts receivable 32 Note 13. Other current assets 33 Note 14. Current available for sale financial assets 33 Note 15. Cash and change in cash 33 Note 16. Equity 35 Note 17. Bonus share and similar plans 37 Note 18. Minority interests 38 Note 19. Borrowings 40 Note 20. Provisions and other non-current liabilities 43 Note 21. Purchase commitments for minority interests' shares 44 Note 22. Trade accounts payable and other current liabilities 44 Note 23. Financial instruments and market risk management 45 Note 24. Segment information 51 Note 25. Revenue and expenses by nature 55 Note 26. Other operating income and expenses 56 Note 27. Net financial income/(expense) 57 Note 28. Income taxes 58 Note 29. Earnings per share 60 Note 30. Provisions for pensions, contribution to medical costs and other employee benefit commitments 61 Note 31. Off-balance sheet commitments 63 Note 32. Exceptional events and litigation 64 Note 33. Related-party transactions 65 Note 34. Subsequent events 66 ‌Note 1. Accounting policies 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. 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. 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. 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". 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. 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. 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. 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. 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; 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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)". 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. 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. 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. 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. 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. 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. 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. 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. ‌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. Earnings per share Earnings per share are calculated based on the weighted average number of shares outstanding during the fiscal year, excluding treasury shares. Where applicable, diluted earnings per share are calculated based on the weighted average number of shares before dilution. Dilutive instruments issued by subsidiaries are also taken into consideration for the purposes of determining the Group's share of net profit after dilution. Note 2. Changes in ownership interests in consolidated entities 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. 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. 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. Impact on net cash and cash equivalents of changes in ownership interests in consolidated entities (EUR millions) 2025 2024 2023 Purchase price of consolidated investments and of minority interests' shares (3,202) (1,474) (2,918) Positive cash balance/(Net overdraft) of companies acquired 6 91 80 Proceeds from sale of consolidated investments 401 164 69 (Positive cash balance)/Net overdraft of companies sold (1) (3) (2) Impact of changes in ownership interests in consolidated entities on net cash and cash equivalents (2,796) (1,223) (2,771) O/ w2íc2: Pwsc2ase and psoceeds /som sa/e o/ conso/ídated ínvestments Pwsc2ase and psoceeds /som sa/e o/ mínosíty íntesests 3S9 (2,9S5) (S38) (723) (78S) (2,053) In 2025, the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities primarily arose from the acquisition of an additional 9% stake in Loro Piana from minority shareholders. It also included the cash impact of purchases, net of disposals, of LVMH shares by LVMH (the main purpose of which is to retire the shares purchased), and the cash impact of acquisitions of LVMH shares by Christian Dior SE. In 2024, the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities primarily arose from the acquisition of controlling interests in Orient Express, Paris Match, Nuti Ivo and Swiza, partially offset by the disposal of Off-White. It also included the cash impact of acquisitions of LVMH shares by Group companies and the impact of the LVMH liquidity contract. In 2023, the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities arose in particular from the acquisitions of Minuty, Platinum Invest, Barton Perreira and Vuarnet. In addition to the net cash impact of the purchase and sale of consolidated investments, the Group may take on the borrowings of entities acquired (see Note 19). In most cases, such borrowings are repaid to third-party lenders. It also included the cash impact of acquisitions of LVMH shares by Group companies and the impact of the LVMH liquidity contract. ‌Note 3. Brands, trade names and other intangible assets (EUR millions) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Gross Amortization and impairment Net Net Net Brands 20,832 (738) 20,094 20,995 20,625 Trade names 313 (48) 265 2,467 2,336 License rights 45 (42) 3 8 12 Software, websites 4,413 (3,274) 1,139 1,230 1,035 Other 1,577 (809) 768 716 717 Total 27,179 (4,912) 22,267 25,417 24,724 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. 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 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 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). See Note 21 for goodwill arising on purchase commitments for minority interests' shares. Translation adjustments mainly related to goodwill recognized in US dollars, based on fluctuations in the US dollar-to-euro exchange rate between January 1 and December 31, 2025. In 2024, changes in the scope of consolidation mainly resulted from the acquisitions of Swiza and Nuti Ivo, the investment in Orient Express, and various acquisitions carried out in prior periods but that had not yet been consolidated as of December 31, 2023, partially offset by the disposal of Off-White. See Note 2. In 2023, changes in the scope of consolidation mainly resulted from the acquisitions of Minuty, Platinum Invest, Barton Perreira and Vuarnet. See Note 2. ‌Note 5. Impairment testing of intangible assets with indefinite useful lives Brands, trade names and other intangible assets with indefinite useful lives as well as the goodwill arising on acquisition were subject to annual impairment testing. No significant impairment expenses were recognized in respect of these items during the course of fiscal year 2025. As described in Note 1.16, these assets are generally valued on the basis of the present value of forecast cash flows determined in the context of multi-year business plans drawn up each fiscal year. The consequences of the macroeconomic environment continue to disrupt the commercial operations of certain Maisons, with varying impacts depending on the geographic region and business group. However, the Group believes that these disruptions are not likely to affect the achievement of objectives set in multi-year business plans. The main assumptions used to determine these forecast cash flows are as follows: Business group 2025 2024 (as %) Post-tax Annual Growth Discount rate Annual Growth discount rate growth rate for revenue rate for the period Post-tax Pre-tax for revenue the period during the after the during the after the plan period plan plan period plan Wines and Spirits 6.9 9.3 5.0 2.1 to 3.5 6.9 to 7.4 4.8 2.0 Fashion and Leather Goods 7.7 to 8.7 10.4 to 11.8 6.5 2.2 8.3 to 9.1 8.2 2.8 Perfumes and Cosmetics 8.1 to 8.4 10.9 to 11.4 4.1 2.2 8.3 to 8.9 7.2 2.7 Watches and Jewelry 8.3 to 8.7 11.2 to 11.8 6.4 2.2 to 2.8 8.3 to 8.9 6.1 2.5 Selective Retailing 9.3 12.6 5.1 2.0 9.4 to 10.0 6.1 1.5 to 2.0 Other 9.3 to 10.4 12.6 to 14.1 4.7 1.5 to 2.3 8.8 to 9.3 5.5 1.5 to 2.6 Post-tax discount rate Annual growth rate for revenue during the plan period 2023 Growth rate for the period after the plan 6.9 to 10.9 6.3 2.5 8.6 to 8.8 10.1 3.3 to 9.1 10.1 3.0 to 9.1 10.4 3.0 9.0 to 9.5 8.4 2.5 to 9.3 3.5 2.0 Plans generally cover a five-year period, but may be prolonged up to ten years in the case of brands for which the production cycle exceeds five years or brands undergoing strategic repositioning. Annual growth rates applied for the period not covered by the plans are based on market estimates for the business groups concerned. As of December 31, 2025, the intangible assets with indefinite useful lives that are the most significant in terms of their carrying amounts and the criteria used for impairment testing are as follows: (EUR millions) Brands and trade names Goodwill Total Post-tax Growth rate Period covered discount rate for the period by the forecast (as %) after the plan cash flows (as %) 8.3 2.2 5 years 8.3 2.2 5 years 8.3 2.2 5 years 8.3 2.5 10 years 8.7 2.2 5 years 8.7 2.8 10 years 9.3 2.0 5 years 9.3 1.5 10 years 9.3 2.1 5 years Louis Vuitton 2,060 671 2,731 Loro Piana 1,300 1,058 2,358 Fendi 713 417 1,130 Tiffany (a) 6,213 7,384 13,597 Bvlgari 2,100 1,547 3,647 TAG Heuer (a) 1,332 202 1,534 Sephora 265 706 971 Belmond (a) 126 763 889 Hennessy 1,067 47 1,114 (a) These Maisons are considered to be undergoing strategic repositioning, based on a 10-year business plan. ‌As of December 31, 2025, two of these Maisons disclosed intangible assets with a carrying amount close to their recoverable amount. Impairment tests relating to intangible assets with indefinite useful lives in these Maisons have been carried out based on value in use. The amount of these intangible assets as of December 31, 2025 and the impairment loss that would result from a 1-point increase in the post-tax discount rate, a 0.5-point decrease in the growth rate for the period not covered by the plans, or a 50% decrease in the annual growth rate for revenue compared to rates used as of December 31, 2025, break down as follows: (EUR millions) Amount of intangible assets Amount of impairment if: concerned as of December 31, 2025 Post-tax discount rate increases by 1 point Annual growth rate for revenue decreases by 50% Growth rate for the period after the plan decreases by 0.5 points Watches and Jewelry (a) 15,131 (1,667) (2,936) (96) Total 15,131 (1,667) (2,936) (96) (a) Concerns Tiffany and TAG Heuer. The Group considers that changes in excess of those mentioned above would entail assumptions at a level not deemed relevant in view of the current economic environment and medium- to long-term growth prospects for the business segments concerned. Moreover, a 50% year-on-year decrease in the annual growth rate for revenue applied during the plan period is a pessimistic assumption with a very low probability of occurrence. Note 6. Property, plant and equipment As of December 31, 2025, the gross values and carrying amounts of brands, trade names and goodwill giving rise to amortization and/or impairment charges in 2025 were 2,294 million euros and 2,022 million euros, respectively (588 million euros and 287 million euros as of December 31, 2024). Impairment and amortization expenses recognized during fiscal year 2025 in respect of intangible assets with indefinite useful lives amounted to a net expense of 135 million euros. See Note 26. (EUR millions) December 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Gross Depreciation and impairment Net Net Net Land 7,707 (24) 7,683 7,971 7,393 Vineyard land and producing vineyards (a) 3,171 (144) 3,027 3,038 2,948 Buildings 8,675 (3,202) 5,472 5,484 5,160 Investment property 377 (59) 318 321 318 Leasehold improvements, machinery and equipment 23,709 (15,611) 8,098 7,728 6,653 Assets in progress 2,098 (12) 2,086 2,320 2,080 Other property, plant and equipment 3,081 (659) 2,421 2,391 2,145 Total 48,818 (19,712) 29,106 29,253 26,697 O/ w2íc2: Xístosíca/ cost o/ víneyasd /and 3,033 - 3,033 3,030 92S (a) Almost all of the carrying amount of "Vineyard land and producing vineyards" corresponds to vineyard land. 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. Changes during prior fiscal years Changes in property, plant and equipment during prior fiscal years broke down as follows: Carrying amount (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, 2022 2,729 9,667 437 3,853 1,263 657 1,809 2,000 22,414 Acquisitions 83 2,553 2 1,163 218 182 2,449 176 6,824 Disposals and retirements (12) (4) (110) (3) (3) (3) (6) 4 (136) Depreciation expense (9) (331) (6) (1,335) (264) (194) - (71) (2,209) Impairment expense (1) (6) - (5) (2) - (45) (1) (60) Change in the market value of vineyard land 53 - - - - - - - 53 Changes in the scope of consolidation 84 66 - (6) 14 1 1 1 161 Translation adjustment (12) (126) (3) (139) (8) (10) (38) (12) (348) Other movements, including transfers 33 734 (2) 1,030 127 119 (2,090) 48 (1) As of December 31, 2023 2,948 12,553 318 4,556 1,346 750 2,080 2,145 26,697 Acquisitions 28 646 2 1,210 230 175 2,169 256 4,716 Disposals and retirements (6) (5) - (3) (3) - (2) (1) (21) Depreciation expense (9) (399) (5) (1,537) (291) (225) - (84) (2,549) Impairment expense - (2) - (80) (1) (6) (29) 1 (117) Change in the market value of vineyard land 23 - - - - - - - 23 Changes in the scope of consolidation - 17 - 1 19 1 43 - 82 Translation adjustment 33 173 5 123 36 11 36 25 442 Other movements, including transfers 19 471 1 932 239 245 (1,978) 50 (21) As of December 31, 2024 3,038 13,455 321 5,201 1,576 951 2,320 2,391 29,253 In 2024, 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 the champagne houses, Hennessy and Parfums Christian Dior in their production equipment, as well as investments relating to the Group's hospitality activities. In addition, buildings were acquired in Tokyo and Paris by the Group's holding companies and Maisons, mainly in order to operate stores in them. In 2023, 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 the champagne houses, Hennessy and Louis Vuitton in their production equipment, as well as investments relating to the Group's hospitality activities. In addition, buildings were acquired in Paris and London by the Group's holding companies and Maisons, mainly in order to operate stores in them. At the end of April 2023, Tiffany's iconic store on Fifth Avenue in New York reopened after several years of renovation. ‌Note 7. Leases 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. 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 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. 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 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. 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 Termination and renewal options The term used to calculate the lease liability is generally the contractual term of the lease. Special cases may exist where an early termination option or a renewal option is reasonably certain to be exercised, and as such the lease term used to calculate the lease liability is reduced or extended, respectively. The table below presents the impact of these assumptions on lease liabilities recognized as of December 31, 2025: (EUR millions) As of December 31, 2025 Lease liabilities Of which: Impact of options not taken into account (a) Impact of early Impact of Lease liabilities related to contracts: termination options renewal options Renewal options Early termination options - with options 6,119 (3S3) 3,352 1,676 (801) - without options 9,899 Total 16,018 (141) 1,352 1,676 (801) (a) The impact of options not taken into account presented in the table above was calculated by discounting future lease payments on the basis of the last known contractual term. ‌Note 8. Investments in joint ventures and associates 2023 Net Of which: Joint arrangements 1,066 496 7 S (50) (9) 63 - 11 5 (16) (6) (98) - 8 5 Impairment of goodwill and brands recognized by joint ventures (EUR millions) 2025 2024 Net Of which: Net Of which: Joint Joint arrangements arrangements Share of net assets of joint ventures and associates as of January 1 1,343 498 991 495 Share of net profit/(loss) for the period 75 20 28 38 Dividends paid (86) (22) (55) (33) Changes in the scope of consolidation (15) 3 379 - Capital increases subscribed 13 3 22 33 Translation adjustment (89) (39) 30 9 Impairment of goodwill and brands recognized by joint ventures and associates (15) (3) (67) (26) Other, including transfers (12) 3 15 2 Share of net assets of joint ventures and associates as of December 31 1,214 479 1,343 498 For other companies: 991 495 and associates is presented within "Other operating income and expenses" in the consolidated income statement (see Note 26). In 2024, changes in the scope of consolidation mainly resulted from the Group's additional investment in MDD SAS - previously presented within "Non-current available for sale financial assets" (see Note 9) - as well as the strategic partnership entered into with Accor to develop Orient Express. As of December 31, 2025, investments in joint ventures and associates consisted primarily of the following: For joint arrangements: a 50% stake inthe Château Cheval Blanc wine estate (Gironde, France), which produces the eponymous Saint-Émilion Grand Cru Classé A ; a 50% stake in hospitality and rail transport activities operated by Belmond in Peru. a 49% stake in MDD SAS, a company that indirectly holds a significant minority stake in a commercial property complex located in the United States; a 40% stake in L Catterton Management, an investment fund management company created in December 2015 in partnership with Catterton; a 30% stake in Phoebe Philo, a London-based ready-to-wear brand; a 49% stake in Éditions Assouline, a French publishing house; a 33% stake in Silenseas, a French company that owns sailing yachts operating under the Orient Express brand. Note 9. Non-current available for sale financial assets (EUR millions) 2025 2024 2023 As of January 1 1,632 1,363 1,109 Acquisitions 304 638 212 Disposals at net realized value (50) (50) (30) Changes in market value (a) 29 47 211 Changes in the scope of consolidation 8 (376) (120) Translation adjustment (23) 11 (19) Reclassifications (10) - - As of December 31 1,891 1,632 1,363 Including 44 million euros recognized within "Other items of comprehensive income" and -14 million euros recognized within "Net financial income/(expense)" (see Note 1.17). ‌Changes in the scope of consolidation in 2024 related to the initial consolidation of various acquisitions carried out prior to December 31, 2023 but that had not yet been consolidated as of that date, as well as the consolidation using the equity method of an investment that was previously classified as a non-current available for sale financial asset (see Note 8). Note 10. Other non-current assets In accordance with the agreement entered into in September 2024 with Remo Ruffini, Chairman and CEO of Moncler, LVMH raised its stake to 21.95% of the share capital and voting rights in Double R, the holding company that controls Moncler, owned by Mr. Ruffini. Double R holds an 18.23% stake in Moncler. As of December 31, 2025, securities to be consolidated were not material; most of these investments will be consolidated in 2026. (EUR millions) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Warranty deposits 541 602 577 Derivatives (a) 88 105 99 Loans and receivables 222 271 243 Other 132 127 98 Total 983 1,106 1,017 See Note 23. Note 11. Inventories and work in progress (EUR millions) Wines and eawx-de-víe in the process of aging Other raw materials and work in progress December 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Gross 7,592 5,200 Impairment (77) (1,011) Net 7,515 4,189 Net Net 7,035 6,582 4,373 4,559 12,792 (1,088) 11,704 11,408 11,141 Goods purchased for resale 2,920 (342) 2,578 2,757 2,650 Finished products 10,591 (2,214) 8,377 9,504 9,161 13,511 (2,556) 10,955 12,261 11,811 Total 26,303 (3,644) 22,659 23,669 22,952 The change in net inventories for the fiscal years presented breaks down as follows: (EUR millions) 2025 2024 2023 Gross Impairment Net Net Net As of January 1 27,280 (3,611) 23,669 22,952 20,319 Change in gross inventories 1,315 - 1,315 1,114 4,230 Impact of provision for returns (a) (11) - (11) 3 (10) Impact of marking harvests to market (23) - (23) (43) 54 Changes in provision for impairment - (803) (803) (834) (986) Changes in the scope of consolidation - - - 97 (80) Translation adjustment (1,509) 203 (1,306) 376 (571) Other, including reclassifications (b) (748) 566 (182) 3 (5) As of December 31 26,303 (3,644) 22,659 23,669 22,952 See Note 1.27. The amounts presented in "Other, including reclassifications" comprise DFS inventories reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2). ‌The impact of marking harvests to market on Wines and Spirits' cost of sales and value of inventory is as follows: (EUR millions) 2025 2024 2023 Impact of marking the fiscal year's harvest to market (2) (27) 62 Impact of inventory sold during the fiscal year (21) (16) (8) Net impact on cost of sales for the fiscal year (23) (43) 54 Net impact on the value of inventory as of December 31 70 93 136 See Notes 1.10 and 1.18 on the method of marking harvests to market. Translation adjustments on inventories mainly related to inventories recognized in US dollars, Japanese yen and Chinese renminbi, based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and December 31, 2025. Note 12. Trade accounts receivable (EUR millions) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Trade accounts receivable, nominal amount 4,466 4,856 4,843 Provision for impairment (134) (125) (115) Net amount 4,332 4,730 4,728 The change in trade accounts receivable for the fiscal years presented breaks down as follows: (EUR millions) 2025 2024 2023 Gross Impairment Net Net Net As of January 1 4,856 (125) 4,730 4,728 4,258 Changes in gross receivables (213) - (213) (137) 695 Changes in provision for impairment - (16) (16) (15) (19) Changes in the scope of consolidation 1 - 1 83 27 Translation adjustment (284) 4 (280) 34 (217) Reclassifications 106 3 109 38 (17) As of December 31 4,466 (134) 4,332 4,730 4,728 The trade accounts receivable balance is comprised essentially of receivables from wholesalers or agents, who are limited in number and with whom the Group maintains long-term relationships. As of December 31, 2025, the breakdown of the nominal amount of trade accounts receivable and of provisions for impairment by age was as follows: (EUR millions) Nominal amount of receivables Impairment Net amount of receivables Not due: − Less than 3 months 3,731 (55) 3,676 More than 3 months 267 (9) 258 3,998 (64) 3,934 Overdue: − Less than 3 months 332 (17) 315 More than 3 months 136 (54) 83 468 (71) 398 Total 4,466 (134) 4,332 The present value of trade accounts receivable is identical to their carrying amount. ‌Note 13. Other current assets (EUR millions) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2023 Current available for sale financial assets (a) 4,769 4,013 3,557 Derivatives (b) 677 319 543 Tax accounts receivable, excluding income taxes 1,651 2,029 1,833 Advances and payments on account to vendors 333 281 326 Prepaid expenses 727 839 681 Other receivables 745 1,031 850 Total 8,900 8,512 7,790 See Note 14. See Note 23. Note 14. Current available for sale financial assets The carrying amount of current available for sale financial assets changed as follows during the fiscal years presented: (EUR millions) 2025 2024 2023 As of January 1 4,013 3,557 3,614 Acquisitions 1 1 17 Disposals at net realized value (60) - (161) Changes in market value (a) 814 455 87 Changes in the scope of consolidation - - - Translation adjustment 1 - - As of December 31 4,769 4,013 3,557 O/ w2íc2: Xístosíca/ cost o/ cwssent avaí/ab/e /os sa/e /ínancía/ assets 3,085 3,337 3,3S7 Recognized within "Net financial income/(expense)" (see Note 27). Note 15. Cash and change in cash 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 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. 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. Interim and final dividends paid and other equity-related transactions Interim and final dividends paid comprise the following elements for the fiscal years presented: (EUR millions) 2025 2024 2023 Interim and final dividends paid by Christian Dior SE (2,445) (2,345) (2,255) Interim and final dividends paid to other shareholders in consolidated subsidiaries (4,152) (4,342) (4,172) Tax paid related to interim and final dividends paid (a) (281) (294) (422) Interim and final dividends paid (6,878) (6,982) (6,849) (a) Tax paid related to interim and final dividends paid exclusively related to intra-Group dividends; see Note 28. Other equity-related transactions comprise the following elements for the fiscal years presented: (EUR millions) Notes Capital increases of subsidiaries subscribed by minority interests Acquisition/(Disposal) of Christian Dior shares 16.3 2025 6 - 2024 2023 35 15 - - Other equity-related transactions 6 35 15 ‌Note 16. Equity 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 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 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...

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