Annual Report as of December 31, 2023

Combined Shareholders' Meeting

April 18, 2024

Chairman's message � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

2

History � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

4

Executive and Supervisory Bodies;

Statutory Auditors as of December 31, 2023 � � � � � � � � � � � � � � � � �

5

Financial highlights � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

6

Management Report of the Board of Directors:

The Christian Dior group � � � � � � � � � � � � � � � � � � � � � � � � � � 9

1. Christian Dior's business model � � � � � � � � � � � � � � � � � � � � � � � � � �

9

2. Business overview, highlights and outlook, � � � � � � � � � � � � � � � 13

3.

Business and financial review � � � � � � � � � � � � � � � � � � � � � � � � � � �

35

4.

Ethics and responsibility � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

49

5.

Environment and sustainability � � � � � � � � � � � � � � � � � � � � � � � � � �

75

6.

Attracting and retaining talent � � � � � � � � � � � � � � � � � � � � � � � � �

119

7.

Outreach and giving back � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

141

8. Financial and operational risk management

and internal control � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

149

Management Report of the Board of Directors:

Christian Dior parent company � � � � � � � � � � � � � � � � � �

169

1.

Results of Christian Dior SE � � � � � � � � � � � � � � � � � � � � � � � � � � �

� 170

2.

Share ownership of the Company � � � � � � � � � � � � � � � � � � � � �

� 172

3.

Stock option and bonus share plans � � � � � � � � � � � � � � � � � � �

� 173

4. Summary of transactions in Christian Dior securities during the 2023 fiscal year by company officers and closely related persons (set forth in Article

L. 621-18-2 of the French Monetary and Financial Code) � � �

176

5.

Share buyback programs � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

177

Board of Directors' report

on corporate governance � � � � � � � � � � � � � � � � � � � � � � �

179

1.

Corporate governance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

180

2.

Compensation of company officers � � � � � � � � � � � � � � � � � � �

207

3. Summary of transactions in Christian Dior securities during the 2023 fiscal year by company officers and closely related persons (set forth in Article

L. 621-18-2 of the French Monetary and Financial Code) � � � 218

Consolidated financial statements � � � � � � � � � � � � � � 219

1. Consolidated income statement � � � � � � � � � � � � � � � � � � � � � � 220

2. Consolidated statement of comprehensive

gains and losses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

221

3.

Consolidated balance sheet � � � � � � � � � � � � � � � � � � � � � � � � � �

222

4.

Consolidated statement of changes in equity � � � � � � � � � �

223

5.

Consolidated cash flow statement � � � � � � � � � � � � � � � � � � � �

224

6.

Notes to the consolidated financial statements � � � � � � � �

225

7.

Consolidated companies � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

285

  1. Companies not included in the scope of consolidation � 293
  2. Statutory Auditors' report on the consolidated

financial statements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 294

Parent company financial statements:

Christian Dior � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 299

1.

Income statement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

300

2.

Balance sheet � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

301

3.

Cash flow statement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

302

4. Notes to the parent company financial statements � � � � 303

5. Subsidiaries and equity investments � � � � � � � � � � � � � � � � � � � 310 6. Company results over the last five fiscal years � � � � � � � � � � 311

7. Statutory Auditors' report on the parent

company financial statements � � � � � � � � � � � � � � � � � � � � � � � � � 312

8. Statutory Auditors' special report

on related-party agreements � � � � � � � � � � � � � � � � � � � � � � � � � � 316

General information regarding the parent company and its share capital;

stock market information � � � � � � � � � � � � � � � � � � � � � � � 319

1.

Information regarding the parent company � � � � � � � � � � � �

320

2.

Information regarding the capital � � � � � � � � � � � � � � � � � � � � � �

323

3.

Breakdown of share capital and voting rights � � � � � � � � � � �

324

4. Market for financial instruments issued

by Christian Dior � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

326

Statement by the person responsible

for the Annual Report� � � � � � � � � � � � � � � � � � � � � � � � � � � 331

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, 2023

Annual Report as of December 31, 2023 1

Chairman's message

Upward

After three exceptional years, without looking back, we must now think even bigger and with greater focus on the long term. In 2023, the Group extended its lead, protected its margins, increased its investments to prepare for the future and helped its Maisons grow around the world.

Our flagship Maisons have established their positions at the pinnacle of the finest craftsmanship, their names synonymous with the ultimate in prestige and international renown. They exert irresistible appeal, turn heads and inspire dreams; they are where creativity reaches its zenith, where the magnetic force of desirability is strongest. We devote all our energy to making these beacons shine ever more brightly across every continent.

Throughout the challenging period our world has experienced these past few years, the desirability of the products that our Maisons design and craft has continued ever upward among our customers, who have driven growth across the Group at unprecedented rates. It is because each of our 75 Maisons' products inspired joy and encapsulated beauty at a time when joy and beauty really mattered, that our Maisons were able to achieve this growth.

  • Annual Report as of December 31, 2023

Investing while reinforcing our margins

Our Group's record results in fiscal year 2023 reflect both the strength of our creative model and our investment capacity, built up to fuel our Maisons' vitality over both the short and the long term. With investments in production capacity and product quality; investments to raise awareness of our Maisons and reinforce their prestige; investments to boost our portfolio of standout properties and locations that underpin our brands' commercial appeal - rarely has the Group invested so much in reinforcing its strengths as it did in 2023. We stand by our convictions: we firmly believe in the long-term benefits that our business model brings to our Group and our environment.

The truer the Group remains to its guiding principles, the more responsive it can be to both the cyclical and transitory shocks that may buffet one or other of its business groups, or the economic regions where its activities are located. While these headwinds may have affected some of them in the past, the Maisons' teams have always drawn on their boundless adaptability and managed to curb their costs and protect their margins.

Remarkable dynamism across all our Maisons

Throughout 2023, all our business groups and Maisons - each in their own way and following their own inspiration - deepened, pushed the boundaries and transcended their creative legacy, reaching new milestones. Louis Vuitton once again revealed the full breadth of its untapped potential through Nicolas Ghesquière's designs, Pharrell Williams' groundbreaking shows and a fresh new range of timepieces. Christian Dior, whose Carousel of Dreams lit up the façade of the Saks Fifth Avenue department store in New York, showcasing Maria Grazia Chiuri and Kim Jones' creativity, continued its robust development. The Group's flagship jewelry and watches Maisons - Tiffany & Co., Bulgari, TAG Heuer - showed remarkable creative dynamism, as did their peers in Perfumes and Cosmetics, while Sephora posted its best-ever performance. Wines and Spirits, which had a mixed year, continued to pursue a value strategy, marrying tradition with innovation. Last year, they welcomed one of Provence's most renowned wine estates: Château Minuty. Lastly, many of our Maisons are contributing, each in their own area of expertise, to the Olympic and Paralympic Games that Paris is hosting in summer 2024, as part of a partnership LVMH has forged to support this unique opportunity to help France shine brightly on the world stage for all to see.

Looking to the future with confidence

Let's look to the future with confidence. While our past three years have sparkled like champagne, the years ahead hold the lasting promise and intensity of the finest wines. This commitment to stay firmly focused on the long term is something that our teams highly value and appreciate: the Group combines the status of a premier private-sector employer with one of the lowest staff turnover rates of large groups - especially in France. It is backed by one of the world's most ambitious training policies, with flagship initiatives like our Institut des Métiers d'Excellence (IME), which has trained 2,700 apprentices since 2014, as well as a range of other training programs available to nearly half of our 213,000 employees. Another of our long-term commitments is to sustainability, reflected in our lasting and growing support for environmental initiatives: under our groundbreaking LIFE 360 environmental program, for example, we have cut our CO2 emissions by almost one-third since 2019, and have substantially ramped up all the Group's initiatives to protect natural habitats, preserve biodiversity and take a circular economy approach to our use of resources. Our long-term commitment is also visible in our presence in local regions and communities, especially in France, where we have close to 120 production sites and where our Maisons are sources of initiative, prosperity and innovation, with a wide range of positive impacts.

Throughout its history, our Group has grown harmoniously, despite the prevailing geopolitical uncertainties. Although those uncertainties persist, our convictions regarding our Group's growth prospects and each Maison's potential remain unchanged. The Group will continue to cultivate the long term, nurturing balance in its business activities and geographical growth regions, investment, innovation and engagement. The Group remains a family group, under the aegis of a family that is fully invested in its future, which conveys - throughout all its Maisons - the drive to pass on values, carry on a legacy and look toward the future, which is so characteristic of entrepreneurial families.

The Group will therefore continue to give all its Maisons what they need to set the most elevated ambitions. If we are steadfast and determined, our Maisons that are already at the zenith of global luxury will undoubtedly be joined by many other Maisons in our Group, whose creativity and power to enchant grows by the day.

Bernard Arnault

Chairman of the Board of Directors

Annual Report as of December 31, 2023 3

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, 2023, Christian Dior thus held 41% 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

1952

Givenchy

Connaissance des Arts

16th century

1593

Château d'Yquem

1955

Château Galoupet

18th century

1729

Ruinart

1957

Parfums Givenchy

1743

Moët & Chandon

Repossi

1765

Hennessy

Vuarnet

1772

Veuve Clicquot

1959

Chandon

1780

Chaumet

1960

DFS

1969

Sephora

19th century

1803

Officine Universelle Buly

1970

Kenzo

1815

Ardbeg

1972

Perfumes Loewe

1817

Cova

1973

Joseph Phelps

1828

Guerlain

1974

Investir-Le Journal des Finances

1832

Château Cheval Blanc

1975

Ole Henriksen

1837

Tiffany & Co.

1976

Benefit Cosmetics

1843

Krug

Belmond

Glenmorangie

1977

Newton Vineyard

1846

Loewe

1980

Hublot

1849

Royal Van Lent

1983

Radio Classique

1852

Le Bon Marché

1984

Marc Jacobs

1854

Louis Vuitton

Make Up For Ever

1858

Mercier

1985

Cloudy Bay

1860

TAG Heuer

1988

Kenzo Parfums

Jardin d'Acclimatation

1991

Fresh

1865

Zenith

1992

Colgin Cellars

1870

La Samaritaine

1993

Belvedere

1884

Bulgari

1996

Terrazas de los Andes

1895

Berluti

1998

Bodega Numanthia

1898

Rimowa

1999

Cheval des Andes

20th century

1908

Les Echos

21st century

2006

Armand de Brignac

1914

Patou

Château d'Esclans

1916

Acqua di Parma

Maisons Cheval Blanc

1923

La Grande Épicerie de Paris

2007

Barton Perreira

1924

Loro Piana

2008

KVD Vegan Beauty

1925

Fendi

2009

Maison Francis Kurkdjian

1936

Dom Pérignon

2010

Woodinville

Fred

2013

Ao Yun

Minuty

2017

Fenty Beauty by Rihanna

1944

Le Parisien-Aujourd'hui en France

Volcán de mi Tierra

1945

Celine

2020

Eminente

1946

Christian Dior Couture

2022

Stella by Stella McCartney

1947

Parfums Christian Dior

Emilio Pucci

  • Annual Report as of December 31, 2023

Executive and Supervisory Bodies;

Statutory Auditors as of December 31, 2023

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(1)

Nicolas BAZIRE

Hélène DESMARAIS(1) (2)

Renaud DONNEDIEU de VABRES(2)

Ségolène GALLIENNE(2)

Christian de LABRIFFE(2)

Maria Luisa LORO PIANA

Advisory Board member

Jaime de MARICHALAR y SÁENZ de TEJADA(1)

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

represented by Guillaume Troussicot

Mazars

represented by Isabelle Sapet and Guillaume Machin

Appointment proposed at the Shareholders' Meeting of April 18, 2024

Statutory Auditor in charge of certifying sustainability information

Deloitte & Associés

represented by Guillaume Troussicot and Olivier Jan

 (1) Renewal proposed at the Shareholders' Meeting of April 18, 2024.  (2) Independent Director.

Annual Report as of December 31, 2023 5

Financial highlights

Key consolidated data

(EUR millions and as %)

2023

2022

2021

Revenue

86,153

79,184

64,215

Gross margin

59,277

54,196

43,860

Gross margin as a percentage of revenue

69%

68%

68%

Profit from recurring operations

22,796

21,050

17,139

Current operating margin as a percentage of revenue

26.5%

26.6%

26.7%

Net profit, before minority interests

15,921

14,702

12,664

Net profit, minority interests' share

9,617

8,905

7,718

Net profit, Group share

6,304

5,797

4,946

Cash from operations before changes in working capital

29,511

26,765

22,611

Operating investments

7,478

4,969

2,664

Operating free cash flow (a)

8,101

10,110

13,518

Equity, Group share

21,527

19,038

15,372

Minority interests

38,766

35,276

30,995

Total equity

60,293

54,314

46,367

Net financial debt (b)

10,548

8,867

9,521

Net financial debt/Total equity ratio

17.5%

16.3%

20.5%

  1. See the consolidated cash flow statement in the consolidated financial statements for the definition of "Operating free cash flow".
  2. Excluding "Lease liabilities" and "Purchase commitments for minority interests' shares" included in "Other non-current liabilities".

Data per share

(EUR)

2023

2022

2021

Earnings per share

Basic Group share of earnings per share

34.94

32.13

27.41

Diluted Group share of earnings per share

34.93

32.11

27.40

Dividend per share

Interim

5.50

5.00

3.00

Final

7.50

7.00

7.00

Gross amount paid for fiscal year (a)

13.00 (b)

12.00

10.00

  1. Gross amount excluding the impact of tax regulations applicable to recipients.
  2. For fiscal year 2023, amount proposed at the Shareholders' Meeting of April 18, 2024.

Information by business group

Change in revenue by business group

2023

2022

Change

2021

(EUR millions and as %)

Published

Organic (a)

Wines and Spirits

6,602

7,099

-7%

-4%

5,974

Fashion and Leather Goods

42,169

38,648

+9%

+14%

30,896

Perfumes and Cosmetics

8,271

7,722

+7%

+11%

6,608

Watches and Jewelry

10,902

10,581

+3%

+7%

8,964

Selective Retailing

17,885

14,852

+20%

+25%

11,754

Other activities and eliminations

324

281

-

-

19

Total

86,153

79,184

+9%

+13%

64,215

  1. On a constant consolidation scope and currency basis. For 2023, the net exchange rate impact was -4%, and the net impact of changes in the scope of consolidation was nil. 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 39.
  • Annual Report as of December 31, 2023

Profit from recurring operations by business group

2023

2022

2021

(EUR millions)

Wines and Spirits

2,109

2,155

1,863

Fashion and Leather Goods

16,836

15,709

12,842

Perfumes and Cosmetics

713

660

684

Watches and Jewelry

2,162

2,017

1,679

Selective Retailing

1,391

788

534

Other activities and eliminations

(415)

(279)

(463)

Total

22,796

21,050

17,139

Information by geographic region

Revenue by geographic region of delivery

2023

2022

2021

(as %)

France

8

8

6

Europe (excl. France)

17

16

15

United States

25

27

26

Japan

7

7

7

Asia (excl. Japan)

31

30

35

Other markets

12

12

11

Total

100

100

100

Revenue by invoicing currency

2023

2022

2021

(as %)

Euro

20

19

17

US dollar

28

30

28

Japanese yen

7

7

7

Hong Kong dollar

3

2

3

Other currencies

42

42

45

Total

100

100

100

Number of stores

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

France

550

518

522

Europe (excl. France)

1,213

1,108

1,203

United States

1,128

1,054

1,014

Japan

497

496

477

Asia (excl. Japan)

2,003

1,829

1,746

Other markets

706

659

594

Total

6,097

5,664

5,556

Annual Report as of December 31, 2023 7

  • Annual Report as of December 31, 2023

Attachments

Disclaimer

Christian Dior SE published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 10:17:22 UTC.