Christian Dior : Annual report as of December 31, 2024

Published on 06/05/2025 at 20:31

Annual Report as of December 31, 2024

Combined Shareholders' Meeting April 17, 2025

Chairman's message 2

History 4

Executive and Supervisory Bodies;

Statutory Auditors as of December 31, 2024 5

Financial highlights 6

Business overview, highlights and outlook 9

Wines and Spirits 10
Fashion and Leather Goods 13
Perfumes and Cosmetics 17
Watches and Jewelry 20
Selective Retailing 22
Other activities 24

Risk factors and management 25

Risk factors 26
Insurance policy 37
Assessment and control procedures in place 38

Sustainability Report and Vigilance Plan 45

General information 47

Environment 85

Social 175

Governance 219

Report on the certification of sustainability

reporting and environmental taxonomy disclosures 235

Vigilance Plan 241

Board of Directors' report on corporate governance 257

Administrative and management bodies 259
Compensation of company officers 278
Additional information 289

Business and financial review for the fiscal year 291

The Group 291

Christian Dior SE 305

Consolidated financial statements 309

Consolidated income statement 310
Consolidated statement
of comprehensive gains and losses 311
Consolidated balance sheet 312
Consolidated statement of changes in equity 313

Notes to the consolidated financial statements 315
Consolidated companies 375
Companies not included in the scope of consolidation 383
Statutory Auditors' report

on the consolidated financial statements 384

Parent company financial statements: Christian Dior 389

Income statement 390
Balance sheet 391
Cash flow statement 392
Notes to the parent company financial statements 393
Subsidiaries and equity investments 401
Company results over the last five fiscal years 402
Statutory Auditors' report
on the parent company financial statements 403
Statutory Auditors' special

report on related-party agreements 407

Information about the issuer 409

Information regarding the parent company 410
Share capital 413
Breakdown of share capital and voting rights 422
Treasury shares and share buybacks 424
Market for financial instruments

issued by Christian Dior 425

Statement by the person responsible for the Annual Report 429

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 "Rapport annuel", hereafter referred to as the "Annual Report". 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.

Annual Report as of December 31, 2024

‌Chairman's message

Remaining alert

The Group's businesses delivered a solid performance in 2024, achieving revenue well above 2021-2023. But more than anything else, for us, 2024 was a pivotal year of preparing for the future. Solid performance in an unfavorable environment

Some years see new beginnings. I am convinced that all the work done by our Maisons' employees is laying very firm foundations for the future. Whereas 2023 was the year in which demand began to normalize, 2024 was a year of preparation and renewed momentum.

The Group's solid performance is even more impressive in light of the numerous challenges overcome to achieve it. Indeed, it is clear that global geopolitical tensions did not ease during the year: far from it. Exchange rates were also unfavorable to both our sales momentum and our profitability. The Group succeeded in adapting to this environment, diversifying its businesses and locations to harness the resources to be able to end 2024 having, on the whole, delivered growth. It owes this performance to the fundamentals underpinning the Group and its Maisons. Once again last year, this played a powerfully stabilizing role.

If I had to pick a single figure to illustrate this strength, it would be the Group's cash flow, which grew 29% year on year to over 10 billion euros in 2024. This cash flow is both an outcome and an opportunity. An outcome, of course, of the profitability of our well-managed businesses and Maisons, which generate high margins. And an opportunity to pursue multiple new avenues for investment and innovation in our powerful design and global appeal.

All these outcomes were achieved thanks to our dedicated teams, to whom I would like to express my congratulations and appreciation. The quality of their work contributes to our Group's worldwide prestige.

Support for some of the most memorable moments of 2024

In 2024, the whole world's eyes were on Paris, with the Paris 2024 Olympic and Paralympic Games and the reopening of Notre-Dame Cathedral. Our Maisons - Berluti, Chaumet, Dior, Louis Vuitton, Moët Hennessy, Sephora - were honored to contribute their expertise, from the Olympic Torch Relay through to the final days of the Games, to this great celebration of passion and emotion that made the summer of 2024 so magical. Our Group also lent its steadfast support to the restoration of Notre-Dame Cathedral, as befits such a national treasure. Following its successful reconstruction, Notre-Dame has returned to the City of Light, more vibrant and brighter than ever. Through these two historic feats, Paris and France secured their place in the hearts of the entire world.

Preparing for the future means remaining alert and harnessing the key trends of our time. In 2024, the Group entered into a global partnership with Formula 1 - an alliance extraordinarily rich in innovation, excellence and emotion that will allow TAG Heuer, Louis Vuitton and Moët Hennessy to display their expertise and imagination. Preparing for the future also meant bringing to fruition the renaissance of The Landmark, Tiffany's Fifth Avenue store in Manhattan and now the Group's leading luxury goods store worldwide, and gradually renovating all of the Maison's other stores in order to unlock its rich potential for powerful desirability over the coming years. For Louis Vuitton, whose power to enchant remains as strong as ever, preparing for the future also meant bringing back Takashi Murakami's flowers, like a touch of magic at the height of winter. For Dior, it meant continuing to strive for excellence in its collections to enable this magnificent couture house to shine ever brighter.

As ever, remaining alert

In 2024, we stepped up our commitments, which are fully aligned with our long-term vision. The Group was once again France's largest private-sector recruiter this past year. Its Institut des Métiers d'Excellence and You & ME program are our country's most ambitious corporate initiatives for recruitment, training and knowledge sharing. Year after year, the Group continues to reaffirm its confidence in the potential of France's terroirs, production sites and talent. This confidence is also reflected in the Group's significant contribution to France's budget.

In the same vein, the Group once again improved its environmental performance this past year, sharply reducing its energy consumption to meet its target two years ahead of schedule, and rolling out a circular design and recycling approach whose positive effects are already visible. Our Maisons, which have always been environmentally conscious, have as ever remained alert to environmental concerns and continued to work together to refine their production and sales practices. Our focus on biodiversity, and particularly water - so essential to the equilibrium and regeneration of our ecosystems - reached very significant new milestones in 2024.

Ready for the future

Throughout 2024, our Group invested and worked to further enhance the desirability of its very high-quality products, whose long-term outlook is strong. Our customers are still as loyal as ever to our Maisons and their latest releases, while demand for the finest craftsmanship and masterful expertise is mounting steadily all over the world. Authentic design and expert craftsmanship never go out of style: of that I am sure.

Everywhere around the world, we are positioned to seize opportunities as soon as they arise. In Paris, for example, where tourism is recovering, we are pursuing major projects for our brands; in Asia and the United States, which are undergoing profound changes, other developments are also being pursued, with a number of remarkable innovations.

Lastly, a number of our Maisons and Group central functions have passed on the torch to a new generation. They have handed down their experience, and an influx of fresh energy is now at work, which is a vital step. More important than anything else, though, is the entrepreneurial family spirit running through our Group's identity, culture and independence of mind, which continues to be the source of its greatest strength amid the prevailing uncertainties, along with its long-term vision: the strength to confidently and consistently follow the path of the highest quality, creativity, commitment and excellence in all we do.

Bernard Arnault

Chairman of the Board of Directors

‌History

The history of Christian Dior began in 1946, when Monsieur Christian Dior started his own haute couture establishment in a townhouse at 30 Avenue Montaigne in Paris, where the Company still has its headquarters.

In 1984, the Boussac group - which owned Christian Dior at the time - was acquired by Bernard Arnault in association with a group of investors. In 1988, through one of its subsidiaries, Christian Dior took a 32% stake in LVMH, an ownership interest that would be gradually increased over the years. As of December 31, 2024, Christian Dior thus held 42% of the share capital and 57% of the voting rights of LVMH, while the Arnault family group also held 7% of the share capital and 8% of the voting rights of LVMH as of this same date.

The Christian Dior Group was formed through successive alliances among companies that, from generation to generation, have successfully combined traditions of excellence and creative passion with a cosmopolitan flair and a spirit of conquest. These companies now form a powerful, global Group in which the historic companies share their expertise with the newer brands, and continue to cultivate the art of growing while transcending time, without losing their soul or their image of distinction.

From the 14th century to the present

14th century 1365 Le Clos des Lambrays

16th century 1593 Château d'Yquem 18th century 1729 Ruinart

1743 Moët & Chandon

1765 Hennessy

1772 Veuve Clicquot

1780 Chaumet

19th century 1803 Officine Universelle Buly 1815 Ardbeg

1817 Cova

1828 Guerlain

1832 Château Cheval Blanc

1837 Tiffany & Co.

1839 L'Epée 1839

1949 Paris Match

1952 Givenchy Connaissance des Arts

1955 Château Galoupet

1957 Parfums Givenchy Repossi

Vuarnet

1959 Chandon

1960 DFS

1969 Sephora

1970 Kenzo

1972 Perfumes Loewe

1973 Joseph Phelps

1974 Investir-Le Journal des Finances 1976 Benefit Cosmetics

1843 Krug Glenmorangie

1846 Loewe

1849 Royal Van Lent

1852 Le Bon Marché

1854 Louis Vuitton

1858 Mercier

1860 TAG Heuer

Jardin d'Acclimatation

1865 Zenith

1870 La Samaritaine

1884 Bulgari

1895 Berluti

1898 Rimowa

1977

1980

1983

1984

1985

1988

1991

1992

1993

1996

1998

1999

Belmond Newton Vineyard Hublot

Radio Classique Ole Henriksen Marc Jacobs Make Up For Ever Cloudy Bay Kenzo Parfums Fresh

Colgin Cellars Belvedere

Terrazas de los Andes Bodega Numanthia Cheval des Andes

20th century 1908 Les Echos

1914 Patou

1916 Acqua di Parma

1923 La Grande Épicerie de Paris

1924 Loro Piana

1925 Fendi

1944	Minuty Le Parisien-Aujourd'hui en France
1945	Celine
1946	Christian Dior Couture
1947	Parfums Christian Dior
	Emilio Pucci

1936 Dom Pérignon Fred

21st century 2006 Armand de Brignac

Château d'Esclans Maisons Cheval Blanc

2007 Barton Perreira

2008 KVD Vegan Beauty 2009 Maison Francis Kurkdjian 2010 Woodinville

2013 Ao Yun

2017 Fenty Beauty by Rihanna Volcán de mi Tierra

2020 Eminente

2024 SirDavis

‌Executive and Supervisory Bodies; Statutory Auditors as of December 31, 2024

Board of Directors

Bernard ARNAULT

Chairman of the Board of Directors

Antoine ARNAULT

Vice-Chairman of the Board of Directors Chief Executive Officer

Delphine ARNAULT Nicolas BAZIRE (1)

Hélène DESMARAIS (2)

Renaud DONNEDIEU de VABRES(2) (3)

Ségolène GALLIENNE(1)(2)

Christian de LABRIFFE (1) (2)

Maria Luisa LORO PIANA

Advisory Board member

Jaime de MARICHALAR y SÁENZ de TEJADA

Performance Audit Committee

Christian de LABRIFFE (2)

Chairman

Nicolas BAZIRE

Renaud DONNEDIEU de VABRES(2)

Governance & Compensation Committee

Hélène DESMARAIS(2)

Chairman

Nicolas BAZIRE Christian de LABRIFFE (2)

Statutory Auditors

Deloitte & Associés (4)

represented by Guillaume Troussicot

Forvis Mazars (5)

represented by Isabelle Sapet and Guillaume Machin

Statutory Auditor in charge of certifying sustainability information

Deloitte & Associés (6)

represented by Guillaume Troussicot

Renewal of term of office as a Director proposed at the Shareholders' Meeting of April 17, 2025.
Independent Director.
Until the close of the Shareholders' Meeting of April 17, 2025.
A resolution to reappoint Deloitte & Associés as a Statutory Auditor will be presented at the Shareholders' Meeting of April 17, 2025.
A resolution to appoint BDO Paris as a Statutory Auditor to replace Forvis Mazars will be presented at the Shareholders' Meeting of April 17, 2025.
A resolution to reappoint Deloitte & Associés as the Statutory Auditor in charge of certifying sustainability information will be presented at the Shareholders' Meeting of April 17, 2025.

‌Financial highlights

Key consolidated data

(EUR millions and as %)	2024	2023 2022
Revenue	84,683	86,153 79,184
Gross margin	56,765	59,277 54,196
Gross margin as a percentage o/ revenue	67%	69% 68%
Profit from recurring operations	19,565	22,796 21,050
Current operating margin as a percentage o/ revenue	23.1%	26.5% 26.6%
Net profit, before minority interests	12,908	15,921 14,702
Net profit, minority interests' share	7,700	9,617 8,905
Net profit, Group share	5,208	6,304 5,797
Cash from operations before changes in working capital	27,212	29,511 26,765
Operating investments	5,531	7,478 4,969
Operating free cash flow (a)	10,473	8,101 10,110
Equity, Group share	24,294	21,527 19,038
Minority interests	42,558	38,766 35,276
Total equity	66,852	60,293 54,314
Net financial debt (b)	9,058	10,548 8,867
Net financial debt/Total equity ratio	13.5%	17.5% 16.3%

See the consolidated cash flow statement in the consolidated financial statements for the definition of "Operating free cash flow".
Excluding "Lease liabilities" and "Purchase commitments for minority interests' shares", which are recognized as either "Other current liabilities" or "Other non-current liabilities", depending on the specific case.

Data per share

(EUR)	2024	2023 2022
Earnings per share
Basic Group share of earnings per share	28.87	34.94 32.13
Diluted Group share of earnings per share	28.86	34.93 32.11
Dividend per share
Interim	5.50	5.50 5.00
Final	7.50	7.50 7.00
Gross amount paid for fiscal year (a)	13.00 (b)	13.00 12.00

Gross amount excluding the impact of tax regulations applicable to recipients.
For fiscal year 2024, amount proposed at the Shareholders' Meeting of April 17, 2025.

Information by business group

Change in revenue by business group (EUR millions and as %)	2024	2023	Reported	Change Organic (a)	2022
Wines and Spirits	5,862	6,602	-11%	-8%	7,099
Fashion and Leather Goods	41,060	42,169	-3%	-1%	38,648
Perfumes and Cosmetics	8,418	8,271	+2%	+4%	7,722
Watches and Jewelry	10,577	10,902	-3%	-2%	10,581
Selective Retailing	18,262	17,885	+2%	+6%	14,852
Other activities and eliminations	504	324	-	-	281
Total	84,683	86,153	-2%	+1%	79,184

On a constant consolidation scope and currency basis. For the Group, the impact of changes in scope with respect to 2024 was -1% and the impact of exchange rate fluctuations was -2%. The principles used to determine the impact of exchange rate fluctuations on the revenue of entities reporting in foreign currencies and the impact of changes in the scope of consolidation are described on page 295.

Profit from recurring operations by business group (EUR millions)	2024	2023 2022
Wines and Spirits	1,356	2,109 2,155
Fashion and Leather Goods	15,230	16,836 15,709
Perfumes and Cosmetics	671	713 660
Watches and Jewelry	1,546	2,162 2,017
Selective Retailing	1,385	1,391 788
Other activities and eliminations	(623)	(415) (279)
Total	19,565	22,796 21,050

Information by geographic region

Revenue by geographic region of delivery (as %)	2024	2023 2022
France	8	8 8
Europe (excl. France)	17	17 16
United States	25	25 27
Japan	9	7 7
Asia (excl. Japan)	28	31 30
Other markets	13	12 12
Total	100	100 100

Revenue by invoicing currency (as %)	2024	2023 2022
Euro	21	20 19
US dollar	28	28 30
Japanese yen	9	7 7
Hong Kong dollar	2	3 2
Other currencies	40	42 42
Total	100	100 100

Geographic breakdown of stores	Dec. 31, 2024	Dec. 31, 2023 Dec. 31, 2022
France	553	550 518
Europe (excl. France)	1,254	1,213 1,108
United States	1,193	1,128 1,054
Japan	510	497 496
Asia (excl. Japan)	2,019	2,003 1,829
Other markets	778	706 659
Total	6,307	6,097 5,664

‌Business overview, highlights and outlook

Wines and Spirits
10
1. Wines and Spirits brands 10
2. Competitive position 10
3. Primary production methods, supply sources and subcontracting 11
4. Distribution 12
5. Highlights of 2024 and outlook for 2025 12
Fashion and Leather Goods
13
1. Fashion and Leather Goods brands 13
2. Competitive position 14
3. Design 14
4. Supply sources, manufacturing and subcontracting 14
5. Distribution 14
6. Highlights of 2024 and outlook for 2025 15
Perfumes and Cosmetics
17
1. Perfumes and Cosmetics brands 17
2. Competitive position 17
3. Research 17
4. Supply sources, production and subcontracting 17
5. Distribution and communication 18
6. Highlights of 2024 and outlook for 2025 18
Watches and Jewelry
20
1. Watches and Jewelry brands 20
2. Competitive position 20
3. Design, supply sources, manufacturing and subcontracting 20
4. Distribution 20
5. Highlights of 2024 and outlook for 2025 21
Selective Retailing
22
1. Competitive position 22
2. Distribution and digitalization 22
3. Highlights of 2024 and outlook for 2025 23
Other activities
24

‌Wines and Spirits‌

In 2024, revenue for the Wines and Spirits business group represented 7% of the Christian Dior Group's total revenue. Champagne and wines made up 54% of this revenue, while cognac and spirits accounted for 46%.

Wines and Spirits brands
Moët & Chandon, Dom Pérignon, Ruinart, Krug, Veuve Clicquot, Hennessy, Château d'Yquem, Glenmorangie, Clos des Lambrays… The origins of all these world-famous estates are inextricably linked to the appellations and terroirs of the

Competitive position

Champagne

In 2024, shipments of Group champagne brands were down 10.2% from 2023, while shipments from the Champagne region decreased by 9.2% (source: CIVC). The Group's market share

world's most prestigious wines and spirits. Whether they are in Champagne, Bordeaux, or other famed wine regions, these Maisons, many of which date back more than a century, all share a powerful culture of excellence.

thus amounted to 22.6% of total shipments, compared to 22.9% in 2023.

Champagne shipments, for the whole Champagne region, break down as follows:

2022

Sales volume Market

(in millions o/ bottles and percentage)	2024			2023 Sales volume Market share Region Group (%) 127 9 7.1 172 59 34.6 299 68 22.9
	Sales volume		Market share (%) 6.8 34.8
	Region	Group
France Export	118 153	8 53
Total	271	61	22.6

Region Group

(%)

(Source: Comité Interpro/essionnel du Vin de Champagne - CIVC).

Cognac

In 2024, the volumes shipped from the Cognac region were down slightly (0.4%) from 2023 (source: BNIC), while volumes of Hennessy shipped rose by 9.8%. Hennessy's market share of volumes shipped from the Cognac region improved by

5.0 points to 54% in 2024 from 49% in 2023. The company is the

138 9 6.6

188 64 34.3

326 73 22.5

world leader in cognac and premium international spirits, with particularly strong positions in the United States, China and other important markets for cognac (South Africa, Nigeria, the United Kingdom, etc.).

Cognac shipments, in number of bottles, excluding bulk, both for the industry and for the Group, are as follows:

(in millions o/ bottles and percentage)	2024			2023 Sales volume Market share Region Group (%) 4 2 36.8 158 77 49.0 162 79 48.7
	Sales volume		Market share (%) 42.9 53.9
	Region	Group
France Export	4 157	2 85
Total	161	87	53.7

2022

Sales volume Market

Region Group

(%)

(Source: Bureau National Interpro/essionnel du Cognac - BNIC).

5 2 45.2

204 98 47.9

209 100 47.8

‌Primary production methods, supply sources and subcontracting
Wines and Spirits
1. Champagne
  The Champagne appellation covers a defined geographic area classified A.O.C. (Appellation d'Origine Contrôlée), which covers the 34,000 hectares that can be legally used for production. There are essentially three main types of grape varietals used in the production of champagne: Chardonnay, Pinot Noir and Meunier.
  The Christian Dior Group owns 1,665 hectares under production, which provide 21% of its annual needs. In addition, the Group's Maisons purchase grapes and wines from winegrowers and cooperatives on the basis of multi-year agreements; the largest supplier of grapes and wines represents less than 10% of total supplies for the Group's Maisons. The Group's champagne houses, along with their partner grape suppliers, are steadily building up their use of sustainable winegrowing practices for Viticulture Durable en Champagne certification.
  In addition to its effervescence, the primary characteristic of champagne is that it is the result of blending wines from different years and/or different varieties and land plots. The best brands are distinguished by their masterful blend and consistent quality, achieved thanks to the talent of their wine experts.
  Weather conditions significantly influence the grape harvest from one year to the next. The production of champagne also requires aging in cellars for two years or more for premium, vintage and/or prestige cuvées. To protect themselves against crop variations and manage fluctuations in demand, but also to ensure consistent quality year after year, the Group's champagne houses regularly adjust the quantities available for sale and keep reserve wines in stock, mainly in storage tanks. As maturation times vary, the Group constantly maintains champagne inventories in its cellars for future sales.
  The making of champagne involves extremely rigorous processes in order to ensure absolute consistency in quality from year to year. Moët & Chandon fully operates its Mont Aigu site, with its vat room, bottling line, cellars, disgorging area and packaging workshop supplementing the production capacity of Moët & Chandon's historic facilities in Épernay, which are undergoing renovation work. The historic production sites of Veuve Clicquot, Ruinart and Krug are in Reims. Veuve Clicquot continued construction of its new Comète production facility located in Saint-Léonard, near Reims, while Krug inaugurated a new winemaking site in Ambonnay.
  Dry materials (bottles, corks, etc.) and all other components of containers and packaging are purchased from non-Group suppliers. In 2024, the champagne houses also used subcontractors for about 44 million euros of services, notably pressing, co-packing, handling and storing bottles.
  In order to drive innovation and develop expertise in its production processes, the Group inaugurated its research and development facility in Oiry in 2021, which is open to all its Maisons.
2. Cognac
  The Cognac region is located around the Charente basin. The vineyard, whichcurrentlyextends over more than 83,000 hectares, consists almost exclusively of the Ugni Blanc varietal, which yields a wine that produces the best eaux-de-vie. This region is divided into six vineyards, each of which has its own qualities: Grande Champagne, Petite Champagne, Borderies, Fins Bois, Bons Bois and Bois Ordinaires. Hennessy selects its eaux-de-vie essentially from the first four vineyards, where the quality of the wines is more suitable for the preparation of its cognacs.
  Charentaise distillation is unique because it takes place in two stages: a first distillation (première chauffe) and a second distillation (seconde chauffe). The eaux-de-vie obtained are aged in oak barrels. Cognac results from the gradual blending of eaux-de-vie selected on the basis of vintage, origin and age.
  Hennessy - which carries out all of its production in Cognac -inaugurated a state-of-the-art bottling and packaging plant named Pont Neuf in 2017. With the inauguration of a second production line at the Pont Neuf plant in 2021, the Maison's production capacity has been raised to 10 million cases per year. The design of this 26,000-square-meter facility reduces its environmental footprint and optimizes working conditions to an extent never achieved previously.
  Most of the cognac eaux-de-vie that Hennessy needs for its production are purchased from a network of approximately 1,600 independent producers, a collaboration which enables the company to ensure that exceptional quality is preserved as part of an ambitious sustainable winegrowing policy. Hennessy directly operates about 180 hectares, providing for less than 1% of its eaux-de-vie needs.
  With an optimized inventory of eaux-de-vie, the Maison can manage the impact of price changes by adjusting its purchases from year to year under the contracts with its partners. Hennessy continues to control its purchase commitments and diversify its partnerships to prepare for its future growth across the various quality grades.
  Like the Champagne and Wine businesses, Hennessy obtains its dry materials (bottles, corks and other packaging) from non-Group suppliers. The barrels and casks used to age the cognac are also obtained from non-Group suppliers. Hennessy makes only very limited use of subcontractors for its core business: aging, blending and bottling eaux-de-vie.
3. ‌Other wines and spirits
  Outside of champagne and cognac, the Group owns a range of rare brands of spirits and still and sparkling wines whose quality
Distribution
Moët Hennessy has a powerful and agile global distribution network, thanks to which the Wines and Spirits business group continues to expand the presence of its portfolio of brands in a balanced manner across all geographies. Part of this network consists of joint ventures with the Diageo spirits group (1),
and uniqueness relies on careful production and/or selection of raw materials, as well as longstanding expertise in complex development and aging processes that combine excellence, innovation and tradition.
governed by agreements that have been in place since 1987, which help strengthen the positions of the two groups, improve distribution control, enhance customer service and increase profitability by sharing distribution costs. In 2024, 23% of champagne and cognac sales were made through this channel.

Highlights of 2024 and outlook for 2025

	2024	2023 2022
Revenue (EUR millions)	5,862	6,602 7,099
O/ which: Champagne and wines	3,180	3,461 3,474
Cognac and spirits	2,683	3,141 3,625
Sales volumes (millions o/ bottles)
Champagne	61.7	66.5 70.9
Cognac	80.8	83.2 94.3
Other spirits	20.8	21.5 23.9
Still and sparkling wines	61.3	61.1 56.5
Revenue by geographic
region of delivery (%)
France	7	7 6
Europe (excl. France)	20	20 18
United States	34	32 37
Japan	6	6 6
Asia (excl. Japan)	18	21 20
Other markets	15	14 13
Total	100	100 100
Profit from recurring operations (EUR millions)	1,356	2,109 2,155
Current operating margin (%)	23.1	31.9 30.4

Highlights

After three exceptional years, the normalization of demand that began in 2023 continued in 2024 amid a slowdown in consumption and a difficult market environment in China. The Group's Wines and Spirits Maisons drew on the strength of their

retail networks and on proactive sales strategies to win market share and consolidate their leadership in cognac, champagne and Provence rosé wines. Moët Hennessy continued with its mission of "Crafting Experiences", aimed at enhancing the customer experience, by developing visitor and reception sites at its Maisons and other iconic points of sale.

The Group's champagne houses maintained their market share of more than 22% of all Champagne-appellation shipments despite volumes being down. Inclement weather at the beginning of the summer resulted in an especially poor harvest in the Champagne region, weighing on the division's performance. As well as rolling out its Collection Impériale Création No. 1 prestige cuvée internationally, Moët & Chandon unveiled a limited-edition "France" version of its Moët Impérial cuvée for the 2024 Paris Olympics. The Maison demonstrated its firm commitment to biodiversity with the inauguration of "Essentia", a conservatory of regional grape varieties. Dom Pérignon launched Vintage 2015 and Vintage 2006 Plénitude 2, as well as an ultra-exclusive edition designed in collaboration with artist Mathias Bengtsson and a limited edition in tribute to Jean-Michel Basquiat. Veuve Clicquot introduced exciting new experiences such as "Solaire Journeys" aboard the Venice Simplon-Orient-Express and launched its Sun Club outdoor pop-up locations to coincide with the relaunch of its Rich cuvée. The Maison also continued its support for women entrepreneurs through its Bold program. Krug unveiled Krug Grande Cuvée 172e Édition, Krug Rosé 28e Édition and Krug 2011, and celebrated the 10th anniversary of its Single Ingredient program with a focus on flowers. Ruinart unveiled its iconic Reims site, now beautifully transformed, officially opening the Nicolas Ruinart pavilion, a contemporary building designed by architect Sou Fujimoto.

(1) Diageo has a 34% stake in Moët Hennessy, which is the holding company of the Group's Wines and Spirits businesses.

‌Chandon performed well in the United States and benefited from the renewed appeal of its completely renovated winery in Napa Valley. Still wines produced by Moët Hennessy Wine Estates grew steadily. In Provence rosé wines, Château d'Esclans confirmed its global leadership thanks to strong growth in its main markets, while Minuty delivered a promising performance, notably in the United States. Château Galoupet received excellent reviews and stepped up its sustainability initiatives. Cloudy Bay continued to stand out as a benchmark in Sauvignon Blanc wines. Terrazas de los Andes received excellent ratings from critics for the quality of its wines, confirming the relevance of its upmarket strategy. Joseph Phelps ramped up its expansion outside the United States. Ao Yun strengthened its position as the best red wine produced in China with the launch of its 2020 vintage.‌

Hennessy cognac revenue was held back by weak local demand in China and a challenging market environment in the United States. The Maison elevated its desirability with the success of the LeBron James limited edition, designed in collaboration with the basketball star, and its new "Made for More" campaign in the United States, which reaffirmed its place in cocktails. Hennessy continued its international development, driven by markets including South Africa, the Asia-Pacific region and Europe. The Maison stepped up its commitment to sustainability through a new sustainable winegrowing model, "Living Landscapes". The program is the first ever to bring together the wine trading Maisons in a joint effort to revitalize the winegrowing landscape in the Cognac region.

Recognized for the excellence of their products, single malt whiskies Glenmorangie and Ardbeg continued to innovate. Glenmorangie's new Triple Cask Reserve and A Tale of Ice Cream whiskies both won awards at the San Francisco World Spirits Competition. Ardbeg once again won the award for the Best Scotch Islay Single Malt for Ardbeg 25 Years Old and unveiled

Fashion and Leather Goods

Ardbeg The Abyss in the ultra-premium segment. Belvedere benefited from the ongoing success of its Belvedere 10 luxury vodka, backed by a campaign featuring rapper Future. Reflecting its commitment to sustainability, it became the first of the Group's Maisons to secure ISO 46001 certification for its water management. Eminente rum enjoyed strong growth in Europe.

The business group continued to diversify its portfolio and innovate, launching new whisky brand SirDavis through a joint venture with Beyoncé Knowles-Carter and announcing a partnership with alcohol-free sparkling wine brand French Bloom.

Steadfast in its commitment to protecting soil, the second edition of the World Living Soils Forum was held in Arles, bringing together winegrowing, agriculture and soil specialists from around the world and reaffirming the vital importance of soil health for the planet and for all humankind.

Outlook

The Wines and Spirits business group is approaching 2025 with vigilance and pragmatism, with the environment still clouded by uncertainty hanging over a number of markets. While continuing to strictly manage costs, the Group's Maisons will maintain their target of growing their market share through a proactive policy aimed at crafting unique experiences for consumers. Moët & Chandon will activate its partnership with Formula 1 entered into in 2024. Mindful of their rich natural heritage and environmental responsibility, all of the Maisons will continue to follow their roadmaps to act sustainably by protecting biodiversity and reducing their carbon footprint. Excellence, authenticity and sustainability will remain their guiding principles, in keeping with Moët Hennessy's vision of consolidating its position as the leader in luxury wines and spirits.

In 2024, the Fashion and Leather Goods business group represented 48% of the Christian Dior Group's total revenue.

Fashion and Leather Goods brands
In the luxury fashion and leather goods sector, the Group holds a portfolio of brands that are primarily French, but also include Italian, Spanish, British, German and American companies.
The Fashion and Leather Goods business group comprises Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, Rimowa
and Patou. While respecting the identity and autonomous management of these brands, the Group supports their growth by providing them with shared resources.
Parfums Christian Dior, Perfumes Loewe, Parfums Kenzo and Parfums Givenchy are included in the Perfumes and Cosmetics business group.
‌Competitive position
In the Fashion and Leather Goods sector, the luxury market is highly fragmented, consisting of a handful of major international groups plus an array of smaller independent brands. The Christian Dior Group's brands are present all around the world,
Design
Working with the best designers, while respecting the spirit of each brand, is a strategic priority: the creative directors promote the Maisons' identities, and are the artisans of their creative excellence and their ability to reinvent themselves. As a means to continually renew this precious resource, the Group has always been committed to supporting young designers and nurturing tomorrow's talent, in particular through the LVMH Prize for
and it has established itself as one of the most international groups. All these groups compete in various product categories and geographic areas.
Young Fashion Designers, which each year honors the work of an up-and-coming designer displaying exceptional talent and outstanding creativity.
The Christian Dior Group believes that one of its essential assets is its ability to attract a large number of internationally recognized designers to its Maisons.
Supply sources, manufacturing and subcontracting
As of 2024, Louis Vuitton has twenty-nine leather goods workshops - eighteen in France, four in Spain, four in the United States and three in Italy - which manufacture most of the Maison's leather goods. In addition to manufacturing and model-making for leather goods, Louis Vuitton's workshops in Italy handle all development and manufacturing processes for all types of footwear, as well as development for certain accessories (textiles, jewelry and eyewear). In addition to leather goods manufacturing, Louis Vuitton's workshops in Spain also handle all leather goods accessories (belts and straps). Louis Vuitton uses external manufacturers only to supplement its manufacturing.
Louis Vuitton purchases its materials from suppliers located around the world, with whom the Maison has established long-term partnership relationships. The supplier strategy implemented over the last few years has enabled the Maison to meet its requirements in terms of volume, quality and innovation while engaging its suppliers in a CSR approach. This strategy is the result of a policy of focusing on and supporting the best suppliers while limiting Louis Vuitton's reliance on them. Accordingly, the leading supplier in the leather market accounts for around 21% of Louis Vuitton's leather supplies; the leading supplier in the metal parts market accounts for slightly less than 20% of its metal parts supplies.
Distribution
Controlling the distribution of its products is a core strategic priority for the Christian Dior Group, particularly in the luxury fashion and leather goods sector. This control allows the Group to retain retail margins, and guarantees strict control of the brand image, sales reception and environment that the brands require. It also gives the Group closer contacts with its customers so that
Christian Dior's production capacity and use of outsourcing vary very widely depending on the product. In leather goods, Christian Dior works with companies outside the Group to increase its production capacity and provide greater flexibility in its manufacturing processes. In ready-to-wear and jewelry, it purchases supplies primarily from non-Group businesses.
Most of the other Maisons in the Fashion and Leather Goods business group have workshops in their countries of origin or in Italy, which cover only a portion of their production needs. Furthermore, the LVMH Métiers d'Art segment protects and partly develops the Maisons' access to raw materials and world-class expertise in leather goods and hardware.
Generally, the subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brand's country of origin, France, Italy and Spain.
Lastly, fabric suppliers for the different Maisons are often Italian, but on a non-exclusive basis. The designers and style departments of each Maison ensure that manufacturing does not generally depend on patents or exclusive expertise owned by third parties.
it can better anticipate their expectations, thereby offering them unique shopping experiences.
In order to meet these objectives, the Group has the premier international network of exclusive boutiques under the banner of its Fashion and Leather Goods brands. This network included more than 2,300 stores as of December 31, 2024.

‌Highlights of 2024 and outlook for 2025

	2024	2023 2022
Revenue (EUR millions)	41,060	42,169 38,648
Revenue by geographic
region of delivery (%)
France	7	7 7
Europe (excl. France)	19	18 17
United States	17	17 21
Japan	12	10 9
Asia (excl. Japan)	36	39 36
Other markets	9	9 10
Total	100	100 100
Type of revenue
(as % o/ total revenue)
Retail	95	95 95
Wholesale	5	5 5
Licenses	-	- -
Total	100	100 100
Profit from recurring operations (EUR millions)	15,230	16,836 15,709
Current operating margin (%)	37.1	39.9 40.6

Highlights

The Fashion and Leather Goods business group showed strong resilience in an uncertain environment in 2024. Driven by a desire to offer their customers exceptional products and experiences, the Group's Maisons continued to pursue creativity, very high quality, masterful craftsmanship and retail excellence.

Louis Vuitton was once again driven by its boundless capacity for innovation in the world of travel. Nicolas Ghesquière's Fall/ Winter fashion show celebrated ten years of his designs at the Maison. Following the Voyager show in Shanghai, the 2025 Cruise collection was presented in Barcelona's Park Güell. For his second fashion show, Pharrell Williams drew inspiration from the American West and his 2025 Spring/Summer collection, "The World is Yours", was unveiled at UNESCO's headquarters in Paris, celebrating the Maison's spirit of travel. Many new designs were launched in leather goods, including the Speedy P9 bag in fresh colors, the Low Key line and the Neverfull Inside Out, a reversible version of one of the Maison's icons. In jewelry, its LV Diamonds collection introduced a cut in the shape of the Monogram flower and extended the Maison's commitment to sustainable practices by ensuring that every diamond is fully traceable. For its tenth anniversary, the Escale watch released its first three-hand model. In 2024 more than ever before, carrying on a well-established tradition, victory traveled in Louis Vuitton: bespoke trunks, handcrafted in its historic Asnières workshops, held the torches and medals of the Paris 2024 Olympic and Paralympic Games. As Title Partner of the 37th America's Cup in Barcelona, the Maison also unveiled two trunks carrying the trophy for the Louis Vuitton Cup qualifiers and the iconic Auld Mug presented to the winner of the America's Cup. In New York, with Louis

Vuitton's Fifth Avenue flagship store set to undergo a multi-year renovation, the Louis Vuitton 57th Street store, opened at the end of the year, was a major success. This new flagship - the Maison's largest in the United States - offers an immersive experience at the crossroads of luxury, culture and fine dining.

Christian Dior maintained its creative momentum, fusing heritage and modernity. Maria Grazia Chiuri revisited the origins of Dior ready-to-wear with a tribute to the 1967 Miss Dior collection and drew inspiration from Mary, Queen of Scots for her Cruise show at Drummond Castle in Scotland, as well as from Amazon warrior women for her Spring/Summer 2025 collection at the Musée Rodin in Paris. The Maison continued to develop its collections, in particular the Dioriviera collection. Kim Jones brought the signature looks of Dior couture to menswear and launched a capsule collection with Lewis Hamilton. Victoire de Castellane unveiled her Diorama & Diorigami high jewelry designs and celebrated the Maison's tradition of jewelry-making with the My Dior collection, which echoes the texture of its iconic cannage stitching. The Maison enjoyed high levels of visibility both during the Paris 2024 Olympic and Paralympic Games, thanks to its athlete ambassadors, and at the opening ceremony, with Lady Gaga and Celine Dion both wearing Dior. Beijing hosted the L'Or de Dior exhibition in September, while the Christian Dior: Designer of Dreams exhibition arrived in Riyadh in November. At the end of the year, an exhibition opened at La Galerie Dior in Paris featuring photographs by Peter Lindbergh for the Maison. Lastly, key highlights in retail included the opening of an exceptional store in Geneva, designed by Christian de Portzamparc, and Dior's spectacular façades and enchanting window displays to celebrate the end-of-year holiday season around the world, in particular at its 30 Montaigne store in Paris and at the new Dior Gold House in Bangkok.

Loro Piana, which continued to enhance its desirability, turned in a remarkable performance. The year marked the Maison's centenary, which it celebrated by showcasing its signature blend of heritage and modernity. The Fall/Winter collection was highly successful and leather goods saw strong growth driven by the launch of its latest handbag, the Loom. For the end-of-year holiday season, culminating its centenary celebrations, Loro Piana transformed the window displays and façades of Harrods, inviting visitors on a delightful, enchanting voyage. Another highlight was the publication of Master of Fibres, a book exploring one hundred years of the Maison's history through its archives and interviews with the Loro Piana family.

Celine expanded its Triomphe leather goods line and achieved further success in its Plein Soleil collection with its new Raphia bags. It also successfully launched a new fragrance, Zouzou, and Le Rouge Celine lipstick. Three flagship stores were opened in Osaka, Seoul and Paris.

Fendi focused on its iconic bags, launching Peekaboo Soft and unveiling Mamma Baguette at its Milan fashion show. A collection of seven exclusive fragrances evoking the history of the Fendi family was launched in June. The Maison opened a number of flagship stores, including in Miami and Madrid.

Loewe held its first major exhibition in Shanghai, celebrating its heritage and commitment to craftsmanship. The success of the Flamenco bag in nappa lambskin reflected the shift further upmarket of its range of products. Jonathan Anderson developed an innovative, creative collection with Japanese studio Suna Fujita. Several major store openings took place, including a new Casa Loewe store in Seoul.

Marc Jacobs celebrated its 40th anniversary by revisiting its most emblematic designs and looks, and launched The Mini Bag, a new leather goods line.

In September, Givenchy announced the appointment of Sarah Burton as Creative Director for all its men's and women's collections.

Kenzo reaffirmed the "West meets East" stylistic positioning of its looks, with highlights including fashion shows at the gardens of the Palais-Royal and the National Library of France in Paris.

Berluti's growth was driven by the success of its collections, in particular the iconic Fast Track, which masterfully blends the remarkable style of a formal shoe with the unique comfort of a sneaker. The unveiling of Team France's uniforms for the opening ceremonies of the Paris 2024 Olympic and Paralympic Games enjoyed a very positive reception and major media coverage. The store network expanded, including a store in Tokyo's new Azabudai Hills district.

Rimowa continued to deliver growth, fueled by innovation, a number of new store openings and taking direct control over distribution in Thailand and Belgium. Highlights included the launch of the Original Bag, designed with the Maison's signature expertise, and the revival of its historic Hammerschlag line in hammered aluminum. Maintaining its commitment to sustainability, repair and recycling for its suitcases, the Maison rolled out its Re-Crafted program in the United States and South Korea.

Pucci presented its Very Vivara collection in April, paying tribute to the Maison's heritage through its iconic Vivara print.

Outlook

In 2025, amid a global environment characterized by wide-ranging geopolitical and economic uncertainty, the Group will focus on growing its market share by further elevating the quality, sustainability and desirability of its Maisons' products and enhancing the customer experience. Louis Vuitton will pursue a number of development projects over the coming months, focused on its capacity for innovation and its quest for perfection in all its areas of expertise, including the new collaboration starting in 2025 with renowned Japanese artist Takashi Murakami, who will add a colorful touch to the Maison's signature designs, as well as the future opening of its new 103 Champs-Élysées location, where work is ongoing. Louis Vuitton will activate its partnership with Formula 1 entered into in 2024. The Maison will continue to highlight its commitment to corporate social responsibility, notably through its five-year partnership with nonprofit People For Wildlife to conserve natural resources and through the 2025-2026 Louis Vuitton Watch Prize for Independent Creatives, the second edition of a competition aimed at recognizing and supporting emerging creative talent in watchmaking. Christian Dior will continue to selectively invest in its desirability, which means focusing on product quality and creativity as well as high-impact communications and events around the world. The Cruise show - one of the year's most highly awaited events - will take place in Rome in May 2025. Loro Piana will continue its pursuit of excellence and hold its first exhibition at Museum of Art Pudong in Shanghai in March. At Celine, new Creative Director Michael Rider will unveil his first collections in June. A new flagship store will be opened on Via Monte Napoleone in Milan. Fendi will be celebrating its centenary throughout the year, starting in February with a men's and women's fashion show directed by Silvia Fendi at its new "Spazio Solari" location in Milan. Loewe will launch the Madrid bag and celebrate the tenth anniversary of its Puzzle bag. Alongside the selective expansion of the store network, the Loewe Crafted World exhibition will open in Tokyo and the iconic Craft Prize will return to Madrid. Givenchy will unveil its first collections designed by Sarah Burton in March in Paris. Berluti will continue to renovate and expand its store network, particularly in Japan and the Middle East.

‌Perfumes and Cosmetics‌

In 2024, the Perfumes and Cosmetics business group posted revenue of 8,418 million euros, representing 10% of the Christian Dior Group's total revenue.

Perfumes and Cosmetics brands
The Christian Dior Group is a key player in the perfume, makeup and skincare sector, with a portfolio of world-famous French brands, including Parfums Christian Dior, Guerlain, Parfums Givenchy and Kenzo Parfums. The Group also owns other
Competitive position
The LVMH Beauty division has maintained its global competitive position thanks to the success of its perfumes, particularly in Europe and the United States, and the recovery in makeup in the
Research
Established in 1981, LVMH Recherche is a research and innovation center for the Group's Perfumes and Cosmetics brands.
LVMH Recherche aims to shape the future of sustainable digital beauty. Innovation is central to the Group's commitment to offering unrivaled product performance, unprecedented sensory experiences and new uses by investing in key new areas for the future while taking into account social and environmental impacts.
Spread across five sites around the world (Hélios in Saint-Jean-de-Braye, Kosmo in Paris, and Asian innovation centers in Tokyo, Shanghai and Seoul), LVMH Recherche's 670 employees (including researchers, chemists, biologists, toxicologists and pharmacists) deliver over a thousand exceptional products in the skincare, makeup and fragrance categories every year. These very high-quality products are developed with the greatest respect
beauty brands, including Benefit, Fresh, Acqua di Parma, Loewe Perfumes, Make Up For Ever, Maison Francis Kurkdjian, Fenty Beauty by Rihanna and Officine Universelle Buly.
United States, despite the ongoing impact on the skincare market of the economic situation in China.
for the environment and in keeping with each Maison's sensory signature and unique identity.
Innovation and openness to the world are pillars of the strategy pursued by LVMH Recherche (400 patent families), which works with a number of public bodies (including universities, the French National Scientific Research Center [CNRS] and the French National Institute of Health and Medical Research [INSERM]) and private-sector organizations (notably startups, SMEs and mid-tier enterprises) in France and abroad. LVMH Recherche has gradually created a powerful innovation ecosystem whose aim is to identify the most promising technological advances and accelerate their development by building strategic partnerships in new scientific fields as varied as sustainable farming, biotechnology, cellular biology, advanced materials, new processes, big data, artificial intelligence and more.
Supply sources, production and subcontracting
The six French production centers operated by Parfums Christian Dior, Guerlain and LVMH Fragrance Brands meet almost all the manufacturing needs of the four major French Maisons. The other Maisons have some of their products manufactured by the Group's other brands, with the remainder subcontracted externally.
Dry materials, such as bottles, stoppers and any other items that form the containers or packaging, are acquired from suppliers outside the Group, as are the raw materials used to create the finished products. In certain cases, these materials are available only from a limited number of French or foreign suppliers.
Most product formulas are developed at the LVMH Recherche laboratories in Saint-Jean-de-Braye (France), but the Group may also acquire or develop formulas from specialized companies.
‌Perfumes and Cosmetics
Distribution and communication
The presence of a broad spectrum of brands within the business group generates synergies and represents a market force. The volume effect means that advertising space can be purchased at competitive rates, and better locations can be negotiated in department stores. The use of shared services by subsidiaries increases the effectiveness of support functions for worldwide distribution and facilitates the expansion of the newest brands and their access to new markets. These economies of scale permit larger investments in design and advertising, two key factors for success in the Perfumes and Cosmetics business group.
The Group's Perfumes and Cosmetics brand products are sold worldwide, mainly through "selective retailing" channels (as opposed to mass-market retailers and drugstores), although certain brands also sell their products in their own stores and

Highlights of 2024 and outlook for 2025

	2024	2023 2022
Revenue (EUR millions)	8,418	8,271 7,722
Revenue by geographic
region of delivery (%)
France	10	9 9
Europe (excl. France)	21	21 20
United States	19	19 19
Japan	6	5 5
Asia (excl. Japan)	30	33 35
Other markets	14	13 12
Total	100	100 100
Profit from recurring operations (EUR millions)	671	713 660
Current operating margin (%)	8.0	8.6 8.5

Highlights

Growth in the Perfumes and Cosmetics business group was driven by powerful innovative momentum combined with a firmly selective retail strategy, in a highly competitive market environment.

Parfums Christian Dior turned in a very solid performance thanks to its proactive growth strategy and the strength of its product categories. Men's fragrance Sauvage continued to dominate the global market, boosted by the launch of Sauvage Eau Forte. Iconic women's fragrances also delivered remarkable performances. J'adore was boosted by a new marketing campaign featuring Rihanna as its new face, as was Miss Dior by the launch of its new Miss Dior Parfum edition. La Collection Privée Christian Dior continued to elevate the Maison's positioning in high perfumery with the very promising launch of the highly

on their own e-commerce sites. Excellence in retailing is key to the Group's Perfumes and Cosmetics Maisons. It requires expertise and attentiveness from beauty consultants, as well as innovation at points of sale. At December 31, 2024, the network of directly operated Perfumes and Cosmetics stores consisted of over 700 stores.

To meet the expectations of younger generations, who are looking for originality, as well as demand for a connected in-store and online experience, all brands are accelerating the implementation of their online sales platforms, particularly on their own sites, and stepping up their digital content initiatives. Our brands are actively incorporating digital tools to enhance the customer experience and attract new consumers.

concentrated Esprits de Parfum. Makeup was buoyed by the success of its latest innovations in the Forever range (Glow Maximizer, Glow Star Filter and Skin Perfect). Skincare continued to gain momentum in the premium segment with its Prestige line, particularly in Asia. Amid an overall market slowdown, Parfums Christian Dior consolidated its leading position in key markets by maintaining a resolutely selective distribution strategy, investing in rolling out a new identity for its points of sale and developing an omnichannel strategy. The Maison reaffirmed its commitment based on and guided by its purpose: "Making the world a happier, more beautiful place". Specific actions were taken to support women's empowerment and biodiversity protection, such as implementing regenerative agriculture techniques for the flowers and plants grown to produce its fragrances, and launching projects to restore natural habitats in partnership with WWF.

Guerlain continued its rapid growth in fragrances. The L'Art & La Matière premium fragrance collection was expanded with the successful launch of two new fragrances: Néroli Plein Sud, inspired by the travels of Antoine de Saint-Exupéry, and Patchouli Paris, evoking the excitement of a night out in Paris. To celebrate the end-of-year festive season, the Maison released a limited-edition Imagine Guerlain bottle designed by artist Shourouk Rhaiem. The Aqua Allegoria collection was expanded with the successful new Florabloom fragrance. Makeup was boosted by the relaunch of the iconic Rouge G lipstick and from growth in Terracotta and KissKiss, which was buoyed by the success of its Bee Glow Oil version. Skincare was backed by innovation in the Orchidée Impériale and Abeille Royale ranges. Honoring its commitment to biodiversity and its close relationship with the art world, Guerlain joined forces with Lee Ufan Arles for the Art & Environment Prize and continued to favor the use of natural materials and refillable product formats.

Parfums Givenchy continued to gain ground in fragrances, buoyed by its iconic scent L'Interdit, whose desirability was further elevated by the successful launch of L'Interdit Absolu. The new Irresistible Very Floral and Gentleman Society Extrême fragrances also added to its momentum. The Maison proved resilient in makeup, benefiting from the relaunch of Prisme Libre powder, which helped it win market share, particularly in Europe. Benefit delivered growth driven by its innovation in both products and services, as well as strong performance by the brand's bestsellers. New product launches in the Precisely, My Brow line confirmed the Maison's leadership in brow beauty. Cult product Benetint and the interactive Benemart experience in the run-up to the year-end received a warm welcome. Fresh continued to showcase its expertise in using natural ingredients to create beauty products that perform with experiences that transform. The Maison focused on its iconic Kombucha Essence, Soy Facial Cleanser, Crème Ancienne and Black Tea products. Make Up For Ever launched its new Hydra Glow foundation in the HD Skin franchise. Its Artist Color Pencil and its makeup palettes performed well in the United States and Europe. Kenzo Parfums benefited from the success of the Ikebana Mimosa and La Récolte Parisienne additions to its Flower by Kenzo line. Maison Francis Kurkdjian opened a new showcase store on Rue François 1er in Paris. The year also saw the launch of the Maison's eau de parfum APOM (A Part of Me) alongside initiatives to promote its flagship fragrances including Baccarat Rouge 540. The Maison continued its corporate giving initiatives with the Palace of Versailles, establishing a "Biodiversity Observatory". Acqua di Parma had an eventful year, launching the limited-edition Mandarino Millesimato and entering into collaborations with Dorothée Meilichzon and India Mahdavi. Loewe Perfumes saw strong growth thanks to expansion in its Asian markets, a region where the Maison enjoys high levels of desirability, with the rollout of a unique customer experience. Fenty Beauty established a presence in China and launched a new range of haircare products, Fenty Hair. Officine Universelle Buly launched its La Maison Parfumée collection and

celebrated the art of travel with new beauty essentials, offered in particular to passengers on the legendary Venice Simplon-Orient-Express.

Outlook

While remaining vigilant, as called for by the ongoing uncertainty of the current environment, the Group's Maisons will continue to invest in their strengths: product excellence, innovation, brand image and a selective approach to retail networks. Parfums Christian Dior will continue with its development strategy through selective investments to boost its desirability and leadership. The Maison will draw on sustained, dynamic innovation across its entire portfolio, its unique expertise and a refreshed brand image developed in collaboration with Dior Couture. Guerlain will benefit from the relaunch of its Abeille Royale watery oil serum featuring an innovative new formula, as well as additions to the L'Art & La Matière and Aqua Allegoria ranges. One of the highlights of the year will be the centenary of the legendary Shalimar scent. Parfums Givenchy will further develop its range of fragrances, adding new scents to L'Interdit, Gentleman Society and Irresistible. Several major launches will take place in makeup. Kenzo Parfums will continue to promote its iconic Flower by Kenzo fragrance and will relaunch one of its emblematic franchises. Maison Francis Kurkdjian will continue with its international expansion and unveil a new fragrance with a strong personal connection to its creator. Loewe Perfumes will bring fresh innovation to its fragrance and home scents collection. Benefit will strengthen its positioning with a new store layout and innovative initiatives in brow beauty, eye makeup and foundation. Fresh will further expand its flagship Kombucha, Crème Ancienne and Black Tea lines. Make Up For Ever will unveil new foundation products and celebrate color. Acqua di Parma will expand its collections celebrating the Italian art of living. Officine Universelle Buly will open a new store in the spring on the right bank of the Seine in Paris.

‌Watches and Jewelry‌

Watches and Jewelry

In 2024, the Watches and Jewelry business group represented 12% of the Christian Dior Group's total revenue.

Watches and Jewelry brands
The Group's Watches and Jewelry Maisons are some of the most emblematic brands in the industry. They operate in jewelry and watches with Tiffany & Co., Bulgari, Chaumet, Fred, TAG Heuer,
Competitive position
The jewelry market is highly fragmented, consisting of a handful ofmajor international groups plus an array ofsmaller independent brands and companies from many different countries.
The watchmaking market consists of major international players and is divided into a number of segments including traditional watches and smartwatches. The luxury watch market consists
Hublot, Zenith, Repossi and L'Epée 1839. These Maisons are guided by a daily quest for excellence, creativity and innovation.
of a handful of major international groups as well as smaller independent brands.
The Christian Dior Group's brands are present all around the world, and it has established itself as one of the international leaders.
Design, supply sources, manufacturing and subcontracting
The Watches and Jewelry group designs most of its models in its own studios, but may also sometimes use third parties.
At its Swiss workshops and manufacturing centers, the Group assembles a substantial proportion of the watches and chronographs sold under the TAG Heuer, Hublot, Zenith, Tiffany, Bulgari and Chaumet brands; it also designs and manufactures mechanical movements such as El Primero and Elite by Zenith, Heuer 02 by TAG Heuer, UNICO by Hublot and Solotempo by Bulgari; and it manufactures some critical components such as dials, cases and straps.
The Group's jewelry businesses mainly rely on multibrand or monobrand production sites in France, Italy and the United States. Furthermore, Tiffany is also involved in the upstream diamond processing chain, particularly in Belgium, Cambodia and Vietnam.
The subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brand's country of origin, the United States, Italy, France and Switzerland.
Distribution
The business group, which enjoys a strong international presence, has reaped the benefits of its excellent coordination and pooling of administrative, sales and marketing teams. A worldwide network of after-sale multi-brand services has been gradually put in place to improve customer satisfaction. The Watches and Jewelry business group has a territorial organization that covers all markets.
This business group is focusing on the quality and productivity of its retail networks and is also developing its online sales. It selects multi-brand retailers very carefully and builds partnerships so that retailers become genuine brand ambassadors when interacting with end-customers. In an equally selective approach, the Maisons also continue to refurbish and open their own directly operated stores in buoyant markets in key cities.
The Watches and Jewelry brands' directly operated store network comprised 958 stores as of year-end 2024 at prestigious locations in the world's largest cities.

‌Highlights of 2024 and outlook for 2025

	2024	2023 2022
Revenue (EUR millions)	10,577	10,902 10,581
Revenue by geographic
region of delivery (%)
France	5	3 3
Europe (excl. France)	15	15 15
United States	24	23 26
Japan	13	11 11
Asia (excl. Japan)	29	34 32
Other markets	14	14 13
Total	100	100 100
Profit from recurring operations (EUR millions)	1,546	2,162 2,017
Current operating margin (%)	14.6	19.8 19.1

Highlights

The Watches and Jewelry business group proved resilient in the face of mixed trends across different markets, once again backed by the expert craftsmanship of the watchmaking Maisons and the bold innovation strategy of the jewelry Maisons. Business was also buoyed by the selective expansion of their retail networks, promotional events and partnerships with artists and athletes.

Tiffany & Co. showcased its iconic Tiffany T, Lock, HardWear and Knot lines in its global "With Love, Since 1837" campaign. Inspired by the celebration of love - the thread running through its collections - the campaign received a very positive response. In 2024, the new store concept was rolled out to nearly 50 stores, with nearly one-quarter of the store network having been renovated since the Maison joined LVMH. This ongoing transformation - including new store openings and renovations in Monaco, Madrid and Bal Harbour, Florida - set the stage for growth in the Maison's iconic high jewelry collections. The Landmark - the Maison's iconic flagship on New York's Fifth Avenue, and the first to be renovated - achieved record-breaking revenue in 2024. Céleste- the 2024 Blue Book high jewelry collection, unveiled in Beverly Hills, followed by Madrid and Beijing - drew inspiration from the boundless imagination of Jean Schlumberger, the Maison's first designer. The Tiffany Wonder exhibition held in Tokyo featured hundreds of masterpieces, retracing nearly 200 years of expert craftsmanship and modernity. The new Tiffany Titan by Pharrell Williams collection was exceptionally well received. For the 50th anniversary of the first pieces designed by Elsa Peretti, the Maison showcased another facet of her work, exemplified by the Bone Cuff bangle and its ring version.

Bulgari achieved record-breaking revenue in high jewelry and luxury watches as well as market share gains. The Maison celebrated its 140th anniversary with a new brand campaign entitled "Eternally Reborn". In Rome, the Baths of Diocletian

Watches and Jewelry

were the backdrop for the unveiling of the Aeterna high jewelry collection, which also tied in with this celebration. Bulgari pushed the boundaries of jewelry-making to craft the exceptional pieces featured in the collection. The 140-carat Aeterna necklace

the most expensive high jewelry piece sold in the past decade
highlighted the Maison's singular expertise in working with diamonds and colored gemstones alike. Bulgari launched the new Tubogas jewelry collection, a contemporary take on its iconic 1950s line, and unveiled Octo Finissimo Ultra COSC, which set a new record for the world's thinnest watch. Flagship stores were opened in Costa Mesa (California), Dubai, Riyadh, Bangkok and Paris. A documentary film titled An Emperor's Jewel, featuring the Maison's ambassador Priyanka Chopra Jonas, drew back the curtains on the making of the Bulgari Hotel in Rome and paid tribute to the excellence of Italian craftsmanship.

TAG Heuer confirmed its status as an avant-garde watchmaker by launching the Monaco Split-Seconds Chronograph with its split-seconds complication and strengthened its ties with the world of sports, in particular as part of the 10-year partnership announced between LVMH and Formula 1. The TAG Heuer Formula 1 x Kith limited editions were a success, reviving an iconic 1980s line, and the Aquaracer and Carrera lines were expanded. The Maison returned to eyewear with Thélios, unveiling its first collection at LVMH Watch Week. Thirteen new stores were opened in 2024.

Hublot continued to showcase its expertise, launching unique pieces such as the new MP-10 Tourbillon Weight Energy System and the visionary Arsham Droplet pocket watch, designed in collaboration with artist Daniel Arsham. A Big Bang model made from recycled materials was designed in collaboration with Novak Djokovic. As well as being the Official Timekeeper of UEFA Euro 2024, the Maison teamed up with sailor Alan Roura for the 2024 Vendée Globe yacht race.

Zenith rounded out its Defy collection, adding a chronograph version to the Defy Skyline line and introducing the Defy Extreme Diver, a diver's watch inspired by the first 1960s models. The Chronomaster Triple Calendar added a new complication to the Chronomaster line.

L'Epée 1839, a prestigious high-end Swiss clockmaker known for its exceptional mechanisms and complications, joined LVMH.

Chaumet, which achieved further growth, enjoyed major media coverage thanks to its design of the medals for the Paris 2024 Olympic and Paralympic Games. In Venice, an event showcasing its latest high jewelry collection, Chaumet en Scène, was a major commercial and promotional success. Chaumet & Nature, the first large-scale high jewelry exhibition to be held in Qatar, opened in November. The Maison continued to expand its Bee My Love collection, which maintained its excellent momentum, and opened its first stores in Italy (Rome) and Thailand (Bangkok).

‌Selective Retailing‌

Fred generated robust revenue through sales of its high jewelry pieces. Highlights of the year included the rollout of the "Fred: The Sunshine Jeweler" campaign, the unveiling of the new Monsieur Fred Ideal Light high jewelry collection, the launch of the Pretty Woman Sunlight Message necklace collection and a new creative collaboration with the French Open.

Repossi celebrated the 10th anniversary of its Serti Sur Vide high jewelry collection and entered into a unique partnership with the Centre Pompidou to pay tribute to the works of sculptor Constantin Brancusi.

Outlook

The Watches and Jewelry business group will continue to pursue its target of gaining market share. In a still uncertain economic and geopolitical environment, the Maisons will continue to strictly manage costs and remain selective in their investments. The priority is on pursuing innovation and enhancing the desirability of collections as well as continuing the quality-driven development of directly operated stores. Production capacity will continue to be ramped up, with the expansion of the Bulgari

Selective Retailing

In 2024, the Selective Retailing business group represented 22% of the Christian Dior Group's total revenue.

The Selective Retailing business group comprises Sephora, the world's leading selective beauty retailer; Le Bon Marché, a

Competitive position
manufacturing facility in Valenza and the Hublot facility in Nyon. Tiffany & Co. will continue to enrich its iconic lines with the launch of new models, notably in its Bird on the Rock and Jean Schlumberger collections, while continuing to renovate its store network. The opening of new flagship stores in Tokyo (Ginza Tower) and Milan (Monte Napoleone) will be among the highlights of the year. Bulgari will take the opportunity in 2025 - the Year of the Snake according to the Chinese zodiac -to roll out a program of events promoting its iconic Serpenti line, beginning with an exhibition in Shanghai starting in January. TAG Heuer will scale up its partnership with Formula 1 entered into in 2024. The Maison will add to its iconic lines and launch a next-generation smartwatch. Exceptional new watch models featuring innovative technologies will also be unveiled. Hublot will celebrate the 20th anniversary of its Big Bang line with limited editions and an immersive experience at the Watches & Wonders trade show. Zenith will celebrate its 160th anniversary. Chaumet will step up communications around its Bee My Love collection and take part in the World Expo in Osaka. Fred will continue to develop its iconic collections, with two major launches planned for Force 10 and Chance Infinie. Repossi will continue the rollout of its new store concept worldwide.
Paris department store with a unique atmosphere; and travel retailer Duty Free Shoppers (DFS), which caters specifically to international travelers.
Distribution in the beauty sector is highly fragmented, served by major specialist retail chains, department stores, websites and independent perfume retailers.
Distribution and digitalization
Sephora markets beauty products. Its stores are organized around dedicated spaces for perfume, makeup, skincare and haircare, and services. Customers are free to try products out and beauty advisers are on hand to provide personalized recommendations. The quality of this concept has enabled Sephora to gain the confidence of perfume and cosmetics brands.
With its distribution network of 2,175 stores present in 34 countries as of December 31, 2024, its websites, mobile apps and strong social media presence, the Maison creates an omnichannel beauty
experience that is increasingly innovative and personalized and offers customers an interactive, flexible, seamless shopping journey.
DFS has developed its business through partnerships with international tour operators and major luxury brands. Through its airport concessions and its city-center Galleria stores, which currently account for about two-thirds of its revenue, DFS is particularly present in the United States and at tourist destinations in the Asia-Pacific region.

‌Highlights of 2024 and outlook for 2025

	2024	2023 2022
Revenue (EUR millions)	18,262	17,885 14,852
Revenue by geographic
region of delivery (%)
France	11	11 12
Europe (excl. France)	12	9 9
United States	46	46 44
Japan	1	1 1
Asia (excl. Japan)	12	15 16
Other markets	18	18 18
Total	100	100 100
Profit from recurring operations (EUR millions)	1,385	1,391 788
Current operating margin (%)	7.6	7.8 5.3

Highlights

The Selective Retailing business group's growth was driven by momentum and continued growth at Sephora. DFS experienced mixed trends between different regions.

Sephora achieved another remarkable year, with double-digit growth in both revenue and profit, continuing to gain market share. The Maison consolidated its leadership in North America -its largest market - and delivered an exceptional performance in France, other European countries and the Middle East, as well as in emerging markets such as Brazil, Mexico, Turkey and Thailand. The United Kingdom, where Sephora began to develop its operations in 2021, had a particularly buoyant year in 2024, with sustained growth and five new store openings, including an iconic store in Birmingham. In China, the differentiation strategy proved its relevance in a challenging environment, as demonstrated by the successful launch of Fenty Beauty in the spring.

While makeup remained the leading product category in terms of revenue, growth was robust in fragrances, buoyed by a number of innovations. Haircare and skincare also saw strong growth. Sephora launched its global "Clean at Sephora" and "Planet Aware at Sephora" programs, which offer a selection of brands based on very strict criteria in terms of product formulation and environmental impact.

Growth was driven by the store network thanks to ambitious renovations and a flurry of innovations to further enhance the customer experience, including new AI-powered diagnostic tools to help sales associates make better recommendations to customers, promotional events with partner brands and the continued rollout of the omnichannel strategy. More than

Selective Retailing

120 directly operated stores were opened in 2024, including a number of flagship stores, most notably in Florence, Italy. Sephora continued its successful partnership with Kohl's in the United States, with major benefits for both companies. Meanwhile, online sales accounted for nearly one-quarter of its revenue, with specific investment in the web app. Sephora continued to innovate to inspire its community of 70 million loyal customers - the largest in the beauty sector worldwide. The global rollout of the Sephoria event continued.

The Maison renewed its involvement with the Rare Beauty brand to coincide with World Mental Health Day and published its first impact report setting out its environmental and social commitments around the world. Lastly, as part of LVMH's partnership with the Paris Olympic and Paralympic Games, 2024 was an exceptional year for Sephora as a partner of the Torch Relay and the official makeup partner for the Champions Park and Club France.

DFS saw business activity remain below its 2019 pre-Covid level, with marked differences between its various destinations. Strong growth in Japan and at US airports was not enough to make up for declining sales at key destinations such as Hong Kong and Macao, affected by the impact of China's economic slowdown on Chinese customers' buying behavior. DFS undertook a series of structural initiatives to boost its competitiveness, streamlining operations and reallocating resources to the most profitable regions to secure its long-term growth potential. Highlights of the year included the official opening of the Lombok Airport store in Indonesia and the launch of the Galleria project at Yalong Bay on the island of Hainan. In Paris, La Samaritaine was transformed into an enchanting winter garden for the end-of-year holiday season.

Buoyed by its loyal Parisian clientele and an increasing number of domestic and international customers, revenue at Le Bon Marché continued to grow, driven by the department store's differentiation strategy, with its exclusive, innovative concepts and continuously renewed selection of products and services. Business was spurred by a rich array of cultural events. Act 1 of the Aux Beaux Carrés: Travaux in situ exhibition by French artist Daniel Buren was a beginning-of-the-year highlight, followed by Act 2 held during the Olympic Games. Just before the summer, for the Tous Fadas sur la Rive Gauche exhibition, Le Bon Marché and La Grande Épicerie de Paris charted a course for Marseille and southern France to celebrate the historic port city's tradition of craftsmanship and the Provençal way of life. Starting in September, Le Bon Marché hosted the Paris Paris exhibition, showcasing the work of Paris-based designers; after nightfall, the store became the stage for Entre Chiens et Louves, an exclusive show blending theater, dance and circus performance, which returned after a highly successful run in 2023.

‌Other activities‌

Outlook Sephora will continue to implement its strategy focused on an exacting selection of brands and products; an enhanced customer experience, both online and in-store; closer ties with its community of loyal customers; and ongoing employee training and engagement initiatives, in particular for the 40,000 customer-facing employees at its stores. The Maison is maintaining its target of growing its market share in existing regions while continuing to develop its recently launched markets, in particular the United Kingdom. It will continue to invest in digital and other technology to offer customers the best omnichannel experience in prestige beauty, including artificial intelligence pilot projects promoting excellence in the workforce and customer relations. Sephora will also uphold its

Other activities

"Other activities" include, in particular, the Les Echos group, which comprises leading French business and cultural news publications; Royal Van Lent, the builder of high-end yachts

firm commitment to diversity, equity and inclusion, which are at the heart of its corporate purpose and its core values, with initiatives focused on both its employees and its communities. In the absence of a strong upturn in its market in the near term, DFS will continue to streamline operations to drive a significant uplift in profitability. It has been announced that the Galleria in Venice will cease operations in 2025. Investments will be focused on the Yalong Bay project, expansion at flagship destinations in Asia and the ongoing elevation of the customer experience. Beyond its exclusive selection and customer experience, Le Bon Marché will continue to assert its singularity by cultivating its unique cultural dimension, which makes the department store a compelling destination in its own right. In January 2025, the tenth edition of the store's Carte Blanche art series will feature the Le La Serpent exhibition by Brazilian artist Ernesto Neto.

marketed under the brand name Feadship; and Cheval Blanc and Belmond, which operate a collection of exceptional hotels and hospitality activities.

‌Risk factors and management

Risk factors
26
1. Operational and business risks 27
2. Risks related to the external environment 31
3. Financial risks 35
Insurance policy 37
1. Property and business interruption insurance 37
2. Transportation insurance 37
3. Third-party liability 37
4. Coverage for special risks 38
Assessment and control procedures in place 38
1. Organization 38
2. Information and communication systems 42
3. Internal and external accounting control procedures 43
4. Formalization and monitoring of risk management and internal control systems 43
5. Fraud prevention and detection 44

‌Risk factors‌

The risk factors to which the Christian Dior Group is exposed, the occurrence of which could jeopardize its ability to carry on its normal business activities and to execute its strategy, are presented under the following three headings:

operational and business risks;
risks related to the external environment;

financial risks.

Only major risks, classified as such based on their probability of occurrence and their adverse impact on the Group are presented below. Risk magnitude was assessed after taking into account the preventive measures and risk management procedures put in place by the Group. The severity of the risks has been rated on a scale from 3 (moderate risk) to 1 (critical risk).

Type of risk	Risk description	Degree of severity (a)	See §
Operational	Risks related to products or communication at odds with the Maisons' image	1	1.1.1
and business risks	Risks related to access to and pricing of raw materials	2	1.1.2
	Risks related to cybersecurity	2	1.1.3
	Risks related to talent management and the loss of strategic competencies	3	1.1.4
Risks related	Risks related to the geopolitical and economic environment	1	1.2.1
to the external	Risks related to climate change	1	1.2.2
environment	Risks related to business interruptions	2	1.2.3
	Risks related to counterfeiting and parallel retail networks	2	1.2.4
	Risks related to legal and regulatory compliance	2	1.2.5
Financial risks	Foreign exchange risks	1	1.3.1
	Risks related to liquidity and interest rate fluctuations	3	1.3.1
	Risks related to tax policy	3	1.3.2

(a) 1: Critical; 2: Major; 3: Moderate.

Moreover, the impacts, risks and opportunities arising from the Group's business model are set out in the "Sustainability Report - General information", §3.3.3.

‌Operational and business risks
Operational risks are mainly present - and managed - at the level of LVMH and its subsidiaries.
Risk factors and management
Risk factors
1. Risks related to products or communication at odds with the Maisons' image
  Risk description Risk management
  The renown and reputation of the Group's brands rests on the quality and exclusiveness of its products, their distribution networks and the marketing strategy applied. Products, production methods, distribution networks or marketing methods not in line with brand image could affect brand awareness and adversely impact revenue. The net value of brands, trade names and goodwill recorded in the Group's balance sheet as of December 31, 2024 amounted to 42.2 billion euros, compared with 45.5 billion euros as of year-end 2023.
  Circulation of information prejudicial to the Group in the media or on social media.
  Inappropriate conduct by brand ambassadors, employees, distributors or Group suppliers, and breaches of compliance rules (Sapin II Act, GDPR, etc.).
  - The Group is constantly vigilant with regard to the inappropriate use by third parties of its brand names, in particular through the systematic registration
    of brands and main product names and communications to limit the risk of confusion between the Group's brands and others with similar names.
  - The Group supports and develops the reputations of its Maisons by working with seasoned and innovative professionals in various fields (creative directors,
    oenologists, cosmetics research specialists, etc.), with the involvement of the most senior executives in strategic decision-making processes (collections, distribution and communication). In this regard, the Group's key priority is to respect and bring to the fore each Maison's unique characteristics.
  - The Group supervises media appearances made by senior executives and spokespeople of the Group and the Maisons by defining guidelines and best
    practices for each interview, ensuring the Group and the Maisons' reputations are preserved.
  - At every stage in the production process, the Group implements an exacting control and quality audit process and selects its subcontractors based on the most
    stringent product quality and production method standards.
  - Lastly, the Group is introducing a strict approval process for its advertising spending (visual, types of medium, media, etc.).
  - The Group constantly monitors the media and social networks through specialized service providers. These vendors work with media platforms, publishers or editors
    to correct information that may be inaccurate or detrimental to the Group or the specific Maison's image as quickly as possible. These monitoring practices are supplemented by internal and external teams working to detect these risks and undertake the necessary corrective measures with the appropriate departments (legal, digital, purchasing, media, press, social media, etc.). Additionally, the Group regularly maintains its crisis management system.
  - Initiatives pursued by the Group aim to promote an environment and a legal framework suited to the digital world, prescribing the responsibilities of all those
    involved and instilling a duty of vigilance with regard to unlawful acts online to be shared by all actors at every link in the digital value chain.
  - Employees and the Maisons are made aware of the ethical rules in force at the Group through codes of conduct, charters and other guidelines including the
    Christian Dior and LVMH Codes of Conduct, the Christian Dior and LVMH Business Partner & Supplier Codes of Conduct and the LVMH Charter on Working Relations with Fashion Models. Additional arrangements have been put in place to provide guidance on how to interpret and apply these principles (see "Sustainability Report - Social", §2.2).
  - The Group's distribution agreements include strict guidelines on these matters, which are also regularly monitored by the Maisons through on-site audits.
  - LVMH has also implemented a responsible supply chain management approach.

Risks related to access to and pricing of raw materials
Risk description Risk management
The Group is heavily dependent on rare and precious raw materials and natural resources that are often difficult to access. They are essential to the design of its products.
These resources are threatened by climate change, which is affecting natural ecosystems and local communities. Likewise, the Group's performance is at risk of being affected by fluctuations in the price of raw materials (grapes, leather, cotton, gold) and other constituents of cost prices such as energy (oil, gas and electricity), labor and other inputs.
- Just as for its strategic expertise, the Group has adopted a policy of sourcing a portion of its strategic raw materials in-house (Champagne vineyards, investments
  made by LVMH Métiers d'Art in Fashion and Leather Goods).
- The quality and consistency of supplies of strategic raw materials depend in particular on the Group's ability to protect plant and animal resources and
  associated ecosystems. With this in mind, LVMH has developed traceability and biodiversity strategies as part of its LIFE 360 program. In this way, the Group is engaged in a process of continuous improvement with regard to its ability to trace materials back to their source, so as to gain a better understanding of supply risks.
- The Group also has a policy of achieving certification of all supplies of strategic raw materials by 2026, selecting those standards that reflect the highest social
  and environmental practices, such as protecting ecosystems and working against deforestation and climate change. LVMH works with sector-specific initiatives such as Textile Exchange and the Leather Working Group to ensure that standards are always rising.
- The Group has also kicked off an ecosystem protection program with a goal of covering 5 million hectares by 2030, in particular through an ambitious plan to
  roll out regenerative agriculture across its supply chains.
- In 2019, the LVMH Group adopted a specific charter, which is currently being revised, that sets out requirements applicable to supplies of raw materials of
  animal origin.
- The Group is pursuing an ambitious policy of having its suppliers undergo environmental and social audits, with the aim of building long-term partnerships.
- Since 1996, industry agreements have established a qualitative reserve in order to cope with variable harvests and secure grape supplies in the Champagne region
  (see the "Business overview, highlights and outlook" section, §1.3.1).
- The Maisons seek to build long-standing partnerships with their suppliers. The Perfumes and Cosmetics Maisons do so via the Research & Development
  Department, the Fashion and Leather Goods Maisons forge partnerships with farmers, and the Wines and Spirits business group enter into multi-year sourcing agreements for grapes and eaux-de-vie.
- The Group has secured the precious metals component of its production costs for Watches and Jewelry, either by purchasing hedges from banks or by negotiating
  the forecast price of future deliveries of alloys with precious metal refiners or producers.
- The geopolitical environment could disrupt supply chains. Against this volatile backdrop, the Group's teams have worked to increase the flexibility of supplies of

the most sensitive and critical materials and products by implementing regional solutions.

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Christian Dior SE published this content on May 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2025 at 14:39 UTC.

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08/07	LVMH veteran Michael Burke to head US and other operations	RE
02/07	European Equities Close Mostly Higher Wednesday; Euro Area Unemployment Rises	MT

LVMH veteran Michael Burke to head US and other operations	08/07	RE
European Equities Close Mostly Higher Wednesday; Euro Area Unemployment Rises	02/07	MT
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Louis Vuitton shows India-flavored fashions at Pompidou Centre	25/06	RE
Cyber threats disrupt global firms in US, UK and EU	20/06	RE
Cyber threats disrupt global firms in US, UK and EU	20/06	RE
LVMH Slump Heaps Pressure on Arnault	20/06	MT
New World Development Secures Louis Vuitton Megastore Deal	18/06	MT
Stagwell Announces the Launch of Unreasonable Studios	16/06	CI
Dior Appoints Jonathan Anderson as Artistic Director	02/06	RE
Dior appoints Jonathan Anderson as design chief for women's wear and haute couture	02/06	RE
Dior's Creative Director of Women's Collections Steps Down -- Update	29/05	DJ
Dior: Maria Grazia Chiuri Steps Down as Artistic Director	29/05	RE
Dior's Maria Grazia Chiuri Steps Down as Artistic Director of Women's Collections	29/05	DJ
Louis Vuitton holds fashion show at France's Palais des Papes	23/05	RE
Arnault (LVMH) Urges EU to Take More "Constructive" Approach to Trade Talks with Trump	22/05	RE
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Europe must make concessions to Trump in trade talks, LVMH's Arnault says	22/05	RE
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Dior Settles Italian Probe Into Labor Practices	21/05	DJ
Stock finally up this year as Birkenstock raises targets	16/05
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