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1、Consolidated financial statements as of December 31,2024Consolidated financial statements as of December 31,20241Consolidated financial statements1.Consolidatedincomestatement22.Consolidatedstatementofcomprehensivegainsandlosses33.Consolidatedbalancesheet44.Consolidatedstatementofchangesinequity55.C

2、onsolidatedcashflowstatement66.Notestotheconsolidatedfinancialstatements77.Consolidatedcompanies678.Companiesnotincludedinthescopeofconsolidation759.StatutoryAuditorsreportontheconsolidatedfinancialstatements76As table totals are based on unrounded figures,there may be discrepancies between these to

3、tals and the sum of their rounded component figures.This document is a free translation into English of the original French“Comptes consolids”,hereafter referred to as the“Consolidated financial statements”.It is not a binding document.In the event of a conflict in interpretation,reference should be

4、 made to the French version,which is the authentic text.2Consolidated financial statements as of December 31,2024Consolidated fnancial statementsConsolidated income statement1.Consolidated income statement(EUR millions,except for earnings per share)Notes 202420232022Revenue2425 84,68386,15379,184Cos

5、t of sales (27,918)(26,876)(24,988)Grossmargin 56,76559,27754,196Marketing and selling expenses (31,000)(30,767)(28,150)General and administrative expenses (6,228)(5,721)(5,033)Income/(Loss)from joint ventures and associates8 28 737Profitfromrecurringoperations2425 19,56522,79621,050Other operating

6、income and expenses26(664)(242)(54)Operatingprofit 18,90122,55420,996Cost of net financial debt (439)(363)(15)Interest on lease liabilities (510)(393)(254)Other financial income and expenses 149(170)(632)Netfinancialincome/(expense)27(800)(926)(901)Income taxes28(5,193)(5,707)(5,393)Netprofitbeforem

7、inorityinterests 12,90815,92114,702Minority interests18 7,700 9,6178,905Netprofit,Groupshare 5,2086,3045,797BasicGroupshareofnetearningspershare(EUR)29 28.8734.9432.13Number of shares on which the calculation is based 180,410,580 180,410,580180,410,580DilutedGroupshareofnetearningspershare(EUR)29 28

8、.8634.9332.11Number of shares on which the calculation is based 180,410,580 180,410,580180,410,580Consolidated financial statements as of December 31,20243Consolidated fnancial statementsConsolidated statement of comprehensive gains and losses2.Consolidated statement of comprehensive gains and losse

9、s(EUR millions)Notes 202420232022Netprofitbeforeminorityinterests 12,90815,92114,702Translation adjustments 1,470(1,083)1,311Amounts transferred to income statement (25)(21)(32)Tax impact (4)16.5,18 1,445(1,104)1,275Change in value of hedges of future foreign currency cash flows 11 47728Amounts tran

10、sferred to income statement (230)(523)290Tax impact 50 13(73)(169)(33)245Change in value of the ineffective portion of hedging instruments(including cost of hedging)(357)(237)(309)Amounts transferred to income statement 253 362340Tax impact 26(29)(11)(78)9621Gainsandlossesrecognizedinequity,transfer

11、abletoincomestatement 1,198(1,041)1,542Change in value of vineyard land6 23 53(72)Amounts transferred to consolidated reserves Tax impact (2)(11)18 2141(53)Employee benefit obligations:Change in value resulting from actuarial gains and losses 73 30301Tax impact (22)(7)(77)5123223Gainsandlossesrecogn

12、izedinequity,nottransferabletoincomestatement 7264170Totalgainsandlossesrecognizedinequity 1,270(977)1,712Comprehensiveincome 14,17814,94416,414Minority interests 8,469 9,0369,941Comprehensiveincome,Groupshare 5,7095,9086,4734Consolidated financial statements as of December 31,2024Consolidated fnanc

13、ial statementsConsolidated balance sheet3.Consolidated balance sheetAssets(EUR millions)Notes Dec.31,2024Dec.31,2023Dec.31,2022Brands and other intangible assets3 25,417 24,72424,565Goodwill4 18,776 22,49223,250Property,plant and equipment6 29,253 26,69722,414Rightofuse assets7 16,613 15,67314,609In

14、vestments in joint ventures and associates8 1,343 9911,066Noncurrent available for sale financial assets9 1,632 1,3631,109Other noncurrent assets10 1,106 1,0171,187Deferred tax28 4,545 3,9923,661Noncurrentassets 98,68696,95091,861Inventories and work in progress11 23,669 22,95220,319Trade accounts r

15、eceivable12 4,730 4,7284,258Income taxes 986 533375Other current assets13 8,512 7,7907,550Cash and cash equivalents15 9,760 7,9217,588Currentassets 47,65743,92340,090Totalassets 146,343140,873131,951Liabilities and equity(EUR millions)Notes Dec.31,2024Dec.31,2023Dec.31,2022Equity,Group share16.1 24,

16、294 21,52719,038Minority interests18 42,558 38,76635,276Equity 66,85260,29354,314Longterm borrowings19 12,091 11,22710,380Noncurrent lease liabilities7 14,860 13,81012,776Noncurrent provisions and other liabilities20 3,820 3,8443,866Deferred tax28 6,948 6,6166,553Purchase commitments for minority in

17、terests shares21 8,056 11,91912,489Noncurrentliabilities 45,77547,41646,064Shortterm borrowings19 10,866 10,6969,375Current lease liabilities7 2,972 2,7282,632Trade accounts payable22.1 8,630 9,0498,788Income taxes 1,234 1,1501,224Current provisions and other liabilities22.2 10,014 9,5419,554Current

18、liabilities 33,71633,16431,573Totalliabilitiesandequity 146,343140,873131,951Consolidated financial statements as of December 31,20245Consolidated fnancial statementsConsolidated statement of changes in equity4.Consolidated statement of changes in equity(EUR millions)Number ofsharesSharecapitalShare

19、premiumaccountChristianDiortreasurysharesCumulativetranslationadjustmentRevaluationreservesNet profitand otherreservesTotalequityAvailableforsalefinancialassetsHedges offutureforeigncurrency cashflowsandcost ofhedgingVineyardlandEmployeebenefitcommitmentsGroup shareMinorityinterestsTotalNotes 16.216

20、.116.316.5 18 AsofDecember31,2021180,507,516361194(17)579(98)484(12)13,88015,37230,995 46,367Gains and losses recognized in equity 506 103(18)856761,0361,712 Net profit 5,7975,7978,90514,702 Comprehensiveincome506103(18)855,7976,4739,941 16,414Expenses related to bonus share and similar plans 535379

21、132(Acquisition)/disposal of Christian Dior shares Capital increase in subsidiaries 2828 Interim and final dividends paid (2,165)(2,165)(3,905)(6,070)Changes in control of consolidated entities 331013 Acquisition and disposal of minority interests shares 2(1)22(536)(531)(1,068)(1,599)Purchase commit

22、ments for minority interests shares (166)(166)(804)(970)AsofDecember31,2022180,507,516361194(17)1,08744687516,86619,03835,276 54,314Gains and losses recognized in equity (441)24138(396)(581)(977)Net profit 6,3046,3049,61715,921 Comprehensiveincome(441)241386,3045,9089,036 14,944Expenses related to b

23、onus share and similar plans 474770117(Acquisition)/disposal of Christian Dior shares Capital increase in subsidiaries 1919 Interim and final dividends paid (2,255)(2,255)(4,153)(6,408)Changes in control of consolidated entities 1010 Acquisition and disposal of minority interests shares 62(970)(962)

24、(1,073)(2,035)Purchase commitments for minority interests shares (249)(249)(419)(668)AsofDecember31,2023180,507,516361194(17)652284838319,74321,52738,766 60,293Gains and losses recognized in equity 569(95)720501 769 1,270 Net profit 5,2085,208 7,700 12,908 Comprehensiveincome569(95)7205,2085,7098,46

25、9 14,178Expenses related to bonus share and similar plans 7878 113 191(Acquisition)/disposal of Christian Dior shares Capital increase in subsidiaries 33 33 Interim and final dividends paid (2,345)(2,345)(4,327)(6,672)Changes in control of consolidated entities 111 111 Acquisition and disposal of mi

26、nority interests shares 21(483)(480)(217)(697)Purchase commitments for minority interests shares (195)(195)(390)(585)AsofDecember31,2024180,507,516361194(17)1,223(67)49110322,00624,29442,55866,8526Consolidated financial statements as of December 31,2024Consolidated fnancial statementsConsolidated st

27、atement of changes in equity5.Consolidated cash flow statement(EUR millions)Notes 202420232022I.OPERATINGACTIVITIES Operating profit 18,901 22,55420,996(Income)/Loss and dividends received from joint ventures and associates8 29 4226Net increase in depreciation,amortization and provisions 4,567 4,144

28、3,219Depreciation of rightofuse assets7.1 3,228 3,0313,007Other adjustments and computed expenses 488(260)(483)Cashfromoperationsbeforechangesinworkingcapital 27,21229,51126,765Cost of net financial debt:interest paid (354)(453)(73)Lease liabilities:interest paid (483)(356)(240)Tax paid (5,531)(5,72

29、9)(5,603)Change in working capital15.2(1,925)(4,577)(3,019)Netcashfrom/(usedin)operatingactivities 18,91918,39717,830II.INVESTINGACTIVITIES Operating investments15.3(5,531)(7,478)(4,969)Purchase and proceeds from sale of consolidated investments2.4(438)(721)(809)Dividends received 9 57Tax paid relat

30、ed to noncurrent available for sale financial assets and consolidated investments Purchase and proceeds from sale of noncurrent available for sale financial assets9(579)(116)(149)Netcashfrom/(usedin)investingactivities (6,539)(8,310)(5,920)III.FINANCINGACTIVITIES Interim and final dividends paid15.4

31、(6,982)(6,849)(6,465)Purchase and proceeds from sale of minority interests2.4(784)(2,051)(2,010)Other equityrelated transactions15.4 35 1512Proceeds from borrowings19 3,595 5,9903,774Repayment of borrowings19(3,676)(3,968)(3,891)Repayment of lease liabilities7.2(2,915)(2,818)(2,751)Purchase and proc

32、eeds from sale of current available for sale financial assets14(1)144(1,165)Netcashfrom/(usedin)financingactivities (10,728)(9,536)(12,495)IV.EFFECTOFEXCHANGERATECHANGES 80(273)55Netincrease/(decrease)incashandcashequivalents(I+II+III+IV)1,734278(530)Cashandcashequivalentsatbeginningofperiod15.1 7,6

33、667,3887,918Cashandcashequivalentsatendofperiod15.1 9,3997,6667,388Totaltaxpaid (5,825)(6,150)(5,959)AlternativeperformancemeasureThe following table presents the reconciliation between“Net cash from operating activities”and“Operating free cash flow”for the fiscal years presented:(EUR millions)20242

34、0232022Net cash from operating activities18,919 18,39717,830Operating investments(5,531)(7,478)(4,969)Repayment of lease liabilities(2,915)(2,818)(2,751)Operatingfreecashflow(a)10,4738,10110,110(a)Under IFRS 16,fixed lease payments are treated partly as interest payments and partly as principal repa

35、yments.For its own operational management purposes,the Group treats all lease payments as components of its“Operating free cash flow”,whether the lease payments made are fixed or variable.In addition,for its own operational management purposes,the Group treats operating investments as components of

36、its“Operating free cash flow”.Consolidated financial statements as of December 31,20247Consolidated fnancial statementsNotes to the consolidated fnancial statements6.Notes to the consolidated financial statementsNote 1.Accounting policies .8Note 2.Changes in ownership interests in consolidated entit

37、ies .17Note 3.Brands,trade names and other intangible assets .19Note 4.Goodwill .21Note 5.Impairment testing of intangible assets with indefinite useful lives .22Note 6.Property,plant and equipment .23Note 7.Leases .26Note 8.Investments in joint ventures and associates .30Note 9.Noncurrent available

38、 for sale financial assets .30Note 10.Other noncurrent assets .31Note 11.Inventories and work in progress .31Note 12.Trade accounts receivable .32Note 13.Other current assets .33Note 14.Current available for sale financial assets .33Note 15.Cash and change in cash .33Note 16.Equity .35Note 17.Bonus

39、share and similar plans .37Note 18.Minority interests .38Note 19.Borrowings .40Note 20.Provisions and other noncurrent liabilities .43Note 21.Purchase commitments for minority interests shares .44Note 22.Trade accounts payable and other current liabilities .44Note 23.Financial instruments and market

40、 risk management .45Note 24.Segment information .51Note 25.Revenue and expenses by nature .54Note 26.Other operating income and expenses .56Note 27.Net financial income/(expense).57Note 28.Income taxes .58Note 29.Earnings per share .60Note 30.Provisions for pensions,contribution to medical costs and

41、 other employee benefit commitments .61Note 31.Offbalance sheet commitments .63Note 32.Exceptional events and litigation .64Note 33.Relatedparty transactions .65Note 34.Subsequent events .668Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolid

42、ated fnancial statementsNote 1.Accounting policies1.1 General framework and environmentThe consolidated financial statements for fiscal year 2024 were established in accordance with the international accounting standards and interpretations(IAS/IFRS)adopted by the European Union and applicable on De

43、cember 31,2024.These standards and interpretations have been applied consistently to the fiscal years presented.The consolidated financial statements for fiscal year 2024 were approved by the Board of Directors on January 28,2025.1.2 Changes in the accounting framework applicable to the GroupThe app

44、lication of standards,amendments and interpretations that took effect on January 1,2024 did not have a material impact on the Groups financial statements.1.3 Taking into account climate change risksThe Groups current exposure to the consequences of climate change is limited.As such,at this stage,the

45、 impact of climate change on the financial statements is not material.As part of the LIFE 360 program,which puts the environmental strategy into practice,the Group via LVMH,which comprises all of the Groups operating activities has launched a plan to transform its value chains.The implementation of

46、this program is reflected in the financial statements in the form of operating investments,research and development expenses and corporate philanthropy expenses.In addition,profit from recurring operations in particular will be affected by changes in raw material prices;production,transport and dist

47、ribution costs;and costs related to the endoflife phase of its products.The shortterm effects have been incorporated into the Groups strategic plans,which form the basis for conducting impairment tests on intangible assets with indefinite useful lives(see Note 5).The longterm effects of these change

48、s are not quantifiable at this stage.1.4 Firsttime adoption of IFRSThe first accounts prepared by the Group in accordance with IFRS were the financial statements for the year ended December 31,2005,with a transition date of January 1,2004.IFRS 1 allowed for exceptions to the retrospective applicatio

49、n of IFRS at the transition date.The procedures implemented by the Group with respect to these exceptions include the following:business combinations:the exemption from retrospective application was not applied.The Christian Dior Group retrospectively restated acquisitions made since 1988,the date o

50、f the initial consolidation of LVMH,and all subsequent acquisitions were restated in accordance with IFRS 3.IAS 36 Impairment of Assets and IAS 38 Intangible Assets were applied retrospectively as of that date;foreign currency translation of the financial statements of subsidiaries outside the euroz

51、one:translation reserves relating to the consolidation of subsidiaries that prepare their accounts in foreign currency were reset to zero as of January 1,2004 and offset against“Other reserves”.1.5 Presentation of the financial statementsDefinitionsof“Profitfromrecurringoperations”and“Otheroperating

52、incomeandexpenses”The Groups main business is the management and development of its brands and trade names.“Profit from recurring operations”is derived from these activities,whether they are recurring or nonrecurring,core or incidental transactions.“Other operating income and expenses”comprises inco

53、me statement items,which due to their nature,amount or frequency may not be considered inherent to the Groups recurring operations or its profit from recurring operations.This caption reflects in particular the impact of changes in the scope of consolidation,the impairment of goodwill,and the impair

54、ment and amortization of brands and trade names.It also includes any significant amounts relating to the impact of certain unusual transactions,such as gains or losses arising on the disposal of fixed assets,restructuring costs,costs in respect of disputes,or any other nonrecurring income or expense

55、 that may otherwise distort the comparability of profit from recurring operations from one period to the next.Consolidated financial statements as of December 31,20249Consolidated fnancial statementsNotes to the consolidated fnancial statementsCashflowstatementNet cash from operating activities is d

56、etermined on the basis of operating profit,adjusted for noncash transactions.In addition:dividends received are presented according to the nature of the underlying investments,thus in“Net cash from operating activities”for dividends from joint ventures and associates and in“Net cash from financial i

57、nvestments”for dividends from other unconsolidated entities;tax paid is presented according to the nature of the transaction from which it arises,thus in“Net cash from operating activities”for the portion attributable to operating transactions;in“Net cash from financial investments”for the portion a

58、ttributable to transactions in available for sale financial assets,notably tax paid on gains from their sale;and in“Net cash from transactions relating to equity”for the portion attributable to transactions in equity,notably distribution taxes arising on the payment of dividends.1.6 Use of estimates

59、For the purpose of preparing the consolidated financial statements,the measurement of certain balance sheet and income statement items requires the use of assumptions,estimates or other forms of judgment.This is particularly true of the valuation of intangible assets(see Notes 1.16 and 5);the measur

60、ement of leases(see Notes 1.15 and 7)and purchase commitments for minority interests shares(see Notes 1.13 and 21);the determination of the amount of provisions for contingencies and losses,and uncertain tax positions(see Note 20)or for impairment of inventories(see Notes 1.18 and 11);and,if applica

61、ble,deferred tax assets(see Note 28).Such assumptions,estimates or other forms of judgment made on the basis of the information available or the situation prevailing at the date at which the financial statements are prepared may subsequently prove different from actual events.1.7 Methods of consolid

62、ationThe subsidiaries in which the Group holds a direct or indirect de facto or de jure controlling interest are fully consolidated.Jointly controlled companies and companies where the Group has significant influence but no controlling interest are accounted for using the equity method.Although join

63、tly controlled,those entities are fully integrated within the Groups operating activities.The Group discloses their net profit as well as that of entities using the equity method(see Note 8)on a separate line,which forms part of profit from recurring operations.When an investment in a joint venture

64、or associate accounted for using the equity method involves a payment tied to meeting specific performance targets,known as an earnout payment,the estimated amount of this payment is included in the initial purchase price recorded in the balance sheet,with an offsetting entry under financial liabili

65、ties.Any difference between the initial estimate and the actual payment made is recorded as part of the value of investments in joint ventures and associates,without any impact on the income statement.The assets,liabilities,income and expenses of the Wines and Spirits distribution subsidiaries held

66、jointly with the Diageo group are consolidated only in proportion to the Groups share of operations(see Note 1.27).The consolidation on an individual or collective basis of companies that are not consolidated(see“Companies not included in the scope of consolidation”)would not have a significant impa

67、ct on the Groups main aggregates.1.8 Foreign currency translation of the financial statements of entities outside the eurozoneThe consolidated financial statements are presented in euros;the financial statements of entities presented in a different functional currency are translated into euros:at th

68、e periodend exchange rates for balance sheet items;at the average rates for the period for income statement items.Translation adjustments arising from the application of these rates are recorded in equity under“Cumulative translation adjustment”.In the event of hyperinflation,IAS 29 is applied.1.9 F

69、oreign currency transactions and hedging of exchange rate risksTransactions of consolidated companies denominated in a currency other than their functional currencies are translated to their functional currencies at the exchange rates prevailing at the transaction dates.Accounts receivable,accounts

70、payable and debts denominated in currencies other than the entities functional currencies are translated at the applicable exchange rates at the fiscal yearend.Gains and losses resulting from this translation are recognized:within“Cost of sales”for commercial transactions;within“Net financial income

71、/(expense)”for financial transactions.Foreign exchange gains and losses arising from the translation or elimination of intraGroup transactions or receivables and payables denominated in currencies other than the entitys functional currency are recorded in the income statement unless they relate to l

72、ongterm intraGroup financing transactions,which can be considered equityrelated transactions.In the latter case,translation adjustments are recorded in equity under“Cumulative translation adjustment”.10Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to t

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

74、:for hedges that are commercial in nature:within“Cost of sales”for hedges of receivables and payables recognized in the balance sheet at the end of the period,within equity under“Revaluation reserves”for hedges of future cash flows;this amount is transferred to cost of sales upon recognition of the

75、hedged trade receivables and payables;for hedges relating to the acquisition of fixed assets:within equity under“Revaluation reserves”for hedges of future cash flows;this amount is transferred to the asset side of the balance sheet,as part of the initial cost of the hedged item when accounting for t

76、he latter,and then to the income statement in the event of the disposal or impairment of the hedged item;for hedges that are tied to the Groups investment portfolio(hedging the net worth of subsidiaries whose functional currency is not the euro):within equity under“Cumulative translation adjustment”

77、;this amount is transferred to the income statement upon the sale or liquidation(whether partial or total)of the subsidiary whose net worth is hedged;for hedges that are financial in nature:within“Net financial income/(expense)”,under“Other financial income and expenses”.Changes in the value of thes

78、e derivatives related to forward points associated with forward contracts,as well as in the time value component of options,are recognized as follows:for hedges that are commercial in nature:within equity under“Revaluation reserves”.The cost of the forward contracts(forward points)and of the options

79、(premiums)is transferred to“Cost of foreign exchange derivatives”within“Net financial income/(expense)”upon realization of the hedged transaction;for hedges that are tied to the Groups investment portfolio or financial in nature:expenses and income arising from discounts or premiums are recognized i

80、n“Borrowing costs”on a pro rata basis over the term of the hedging instruments.The difference between the amounts recognized in“Net financial income/(expense)”and the change in the value of forward points is recognized in equity under“Revaluation reserves”.Market value changes of derivatives not des

81、ignated as hedges are recorded within“Net financial income/(expense)”.See also Note 1.22 for the definition of the concepts of effective and ineffective portions.1.10 Fair value measurementFair value(or market value)is the price that would be obtained from the sale of an asset or paid to transfer a

82、liability in an orderly transaction between market participants.The assets and liabilities measured at fair value in the balance sheet are as follows:ApproachestodeterminingfairvalueAmountsrecordedatbalancesheetdateVineyard landBased on recent transactions in similar assets.See Note 1.14.Note 6Grape

83、 harvestsBased on purchase prices for equivalent grapes.See Note 1.18.Note 11DerivativesBased on market data and according to commonly used valuation models.See Note 1.23.Note 23Borrowings hedged against changes in value due to interest rate fluctuationsBased on market data and according to commonly

84、 used valuation models.See Note 1.22.Note 19Liabilities in respect of purchase commitments for minority interests shares priced according to fair valueGenerally based on the market multiples of comparable companies.See Note 1.13.Note 21Available for sale financial assetsQuoted investments:price quot

85、ations at the close of trading on the balance sheet date.Unquoted investments:estimated net realizable value,either according to formulas based on market data or based on private quotations.See Note 1.17.Note 9,Note 14Cash and cash equivalents(SICAV and FCP funds)Based on the liquidation value at th

86、e balance sheet date.See Note 1.20.Note 15No other assets or liabilities have been remeasured at market value at the balance sheet date.Consolidated financial statements as of December 31,202411Consolidated fnancial statementsNotes to the consolidated fnancial statements1.11 Brands and other intangi

87、ble assetsOnly acquired brands and trade names that are well known and individually identifiable are recorded as assets based on their market values at their dates of acquisition.Brands and trade names are chiefly valued using the forecast discounted cash flow method,or based on comparable transacti

88、ons(i.e.using the revenue and net profit coefficients employed for recent transactions involving similar brands)or stock market multiples observed for related businesses.Other complementary methods may also be employed:the relief from royalty method,involving equating a brands value with the present

89、 value of the royalties required to be paid for its use;the margin differential method,applicable when a measurable difference can be identified in the amount of revenue generated by a branded product in comparison with a similar unbranded product;and finally the equivalent brand reconstitution meth

90、od involving,in particular,estimation of the amount of advertising and promotion expenses required to generate a similar brand.Costs incurred in creating a new brand or developing an existing brand are expensed.Brands,trade names and other intangible assets with finite useful lives are amortized ove

91、r their estimated useful lives.The classification of a brand or trade name as an asset of finite or indefinite useful life is generally based on the following criteria:the brand or trade names overall positioning in its market expressed in terms of volume of activity,international presence and reput

92、ation;its expected longterm profitability;its degree of exposure to changes in the economic environment;any major event within its business segment liable to compromise its future development;its age.Amortizable lives of brands and trade names with finite useful lives range from 5 to 20 years,depend

93、ing on their anticipated period of use.Impairment tests are carried out for brands,trade names and other intangible assets using the methodology described in Note 1.16.Research expenditure is not capitalized.New product development expenditure is not capitalized unless the final decision has been ma

94、de to launch the product.Intangible assets other than brands and trade names are amortized over the following periods:rights attached to sponsorship agreements and media partnerships are amortized over the life of the agreements,depending on how the rights are used;development expenditure is amortiz

95、ed over 3 years at most;software and websites are amortized over 1 to 5 years.1.12 Changes in ownership interests in consolidated entitiesWhen the Group takes de jure or de facto control of a business,its assets,liabilities and contingent liabilities are estimated at their market value as of the dat

96、e when control is obtained;the difference between the cost of taking control and the Groups share of the market value of those assets,liabilities and contingent liabilities is recognized as goodwill.The cost of taking control is the price paid by the Group in the context of an acquisition,or an esti

97、mate of this price if the transaction is carried out without any payment of cash,excluding acquisition costs,which are disclosed under“Other operating income and expenses”.The difference between the carrying amount of minority interests purchased after control is obtained and the price paid for thei

98、r acquisition is deducted from equity.Goodwill is accounted for in the functional currency of the acquired entity.Goodwill is not amortized but is subject to annual impairment testing using the methodology described in Note 1.16.Any impairment expense recognized is included within“Other operating in

99、come and expenses”.1.13 Purchase commitments for minority interests sharesThe Group has granted put options to minority shareholders of certain fully consolidated subsidiaries.Pending specific guidance from IFRSs regarding this issue,the Group recognizes these commitments as follows:the value of the

100、 commitment at the balance sheet date appears in“Purchase commitments for minority interests shares”,as a liability on its balance sheet;the corresponding minority interests are canceled;for commitments granted prior to January 1,2010,the difference between the amount of the commitments and canceled

101、 minority interests is maintained as an asset on the balance sheet under goodwill,as are subsequent changes in this difference.For commitments granted as from January 1,2010,the difference between the amount of the commitments and minority interests is deducted from equity,under“Other reserves”.This

102、 recognition method has no effect on the presentation of minority interests within the income statement.12Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements1.14 Property,plant and equipmentWith the exception of vineya

103、rd land,the gross value of property,plant and equipment is stated at acquisition cost.Vineyard land is recognized at the market value at the balance sheet date.This valuation is based on official published data for recent transactions in the same region.Any difference compared to historical cost is

104、recognized within equity in“Revaluation reserves”.If the market value falls below the acquisition cost,the resulting impairment is charged to the income statement.Buildings mostly occupied by third parties are reported as investment property,at acquisition cost.Investment property is thus not remeas

105、ured at market value.The depreciable amount of property,plant and equipment comprises the acquisition cost of their components less residual value,which corresponds to the estimated disposal price of the asset at the end of its useful life.Property,plant and equipment are depreciated on a straightli

106、ne basis over their estimated useful lives.For leased assets,the depreciation period cannot be longer than that used for the calculation of the lease liability.The estimated useful lives are as follows:buildings including investment property:20 to 100 years;machinery and equipment:3 to 25 years;leas

107、ehold improvements:3 to 10 years;producing vineyards:18 to 25 years.Expenses for maintenance and repairs are charged to the income statement as incurred.1.15 LeasesThe Group has applied IFRS 16 Leases since January 1,2019.The initial application was carried out using the“modified retrospective”appro

108、ach to transition.See Note 1.2 to the 2019 consolidated financial statements for details of this initial application procedure for IFRS 16 and the impact of its initial application on the 2019 financial statements.When entering into a lease,a liability is recognized in the balance sheet,measured at

109、the discounted present value of future payments of the fixed portion of lease payments and offset against a rightofuse asset depreciated over the lease term.The amount of the liability depends to a large degree on the assumptions used for the lease term and,to a lesser extent,the discount rate.The G

110、roups extensive geographic coverage means it encounters a wide range of different legal conditions when entering into contracts.The lease term generally used to calculate the liability is the term of the initially negotiated lease,not taking into account any early termination options,except in speci

111、al circumstances.When leases contain extension options,the term used for the calculation of the liability may include these periods,mainly when the anticipated period of use of the fixed assets,whether under a new or existing lease,is greater than the initial contractual lease term.The lease term to

112、 be used in accounting for lease liabilities when the underlying assets are capitalized even though the obligation to make lease payments covers a period of less than twelve months is consistent with the anticipated period of use of the invested assets.Most often,this involves leases for retail loca

113、tions that are automatically renewable on an annual basis.The standard requires that the discount rate be determined for each lease using the incremental borrowing rate of the subsidiary entering into the lease.In practice,given the structure of the Groups financing virtually all of which is held or

114、 guaranteed by LVMH SE this incremental borrowing rate is generally the total of the riskfree rate for the currency of the lease,with reference to its term,and the Groups credit risk for this same currency and over the same term.Leasehold rights and property,plant and equipment related to restoratio

115、n obligations for leased facilities are presented within“Rightofuse assets”and subject to depreciation under the same principles as those described above.The Group has implemented a dedicated IT solution to gather lease data and run the calculations required by the standard.Since the application of

116、IFRS 16 had a significant impact on the cash flow statement given the importance of fixed lease payments to the Groups activities,specific indicators are used for internal performance monitoring requirements and financial communication purposes in order to present consistent performance measures,ind

117、ependently of the fixed or variable nature of lease payments.One such alternative performance measure is“Operating free cash flow”,which is calculated by deducting capitalized fixed lease payments in their entirety from cash flow.The reconciliation between“Net cash from operating activities”and“Oper

118、ating free cash flow”is presented in the consolidated cash flow statement.1.16 Impairment testing of fixed assetsProperty,plant and equipment,intangible assets,and all leased fixed assets are subject to impairment testing whenever there is any indication that an asset may be impaired(particularly fo

119、llowing major changes in the assets operating conditions),and in any event at least annually in the case of intangible assets with indefinite useful lives(mainly brands,trade names and goodwill).When the carrying amount of assets with indefinite useful lives is greater than the higher of their value

120、 in use or market value,the resulting impairment loss is recognized within“Other operating income and expenses”,allocated on a priority basis to any existing goodwill.Consolidated financial statements as of December 31,202413Consolidated fnancial statementsNotes to the consolidated fnancial statemen

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

122、 a disposal transaction.Cash flows are forecast at Group level for each business segment,defined as one or several brands or trade names under the responsibility of a dedicated management team;in general,a business segment as defined above corresponds to a Maison within the Group.Smallerscale cashge

123、nerating units,such as a group of stores,may be distinguished within a particular business segment.The forecast data required for the discounted cash flow method is based on annual budgets and multiyear business plans prepared by the management of the business segments concerned.Detailed forecasts c

124、over a fiveyear period,which may be extended for brands undergoing strategic repositioning or whose production cycle exceeds five years.An estimated terminal value is added to the value resulting from discounted forecast cash flows,which corresponds to the capitalization in perpetuity of cash flows

125、most often arising from the last year of the plan.Discount rates are set for each business group with reference to companies engaged in comparable businesses.Forecast cash flows are discounted on the basis of the rate of return to be expected by an investor in the applicable business and an assessme

126、nt of the risk premium associated with that business.When several forecast scenarios are developed,the probability of occurrence of each scenario is assessed.1.17 Available for sale financial assetsAvailable for sale financial assets are classified as current or noncurrent based on their type.Noncur

127、rent available for sale financial assets comprise strategic and nonstrategic investments whose estimated period and form of ownership justify such classification.Current available for sale financial assets(presented in“Other current assets”;see Note 13)include temporary investments in shares,shares

128、of SICAVs,FCPs and other mutual funds,excluding investments made as part of daytoday cash management,which are accounted for as“Cash and cash equivalents”(see Note 1.20).Available for sale financial assets are measured at their listed value at the fiscal yearend date in the case of quoted investment

129、s,and in the case of unquoted investments at their estimated net realizable value,assessed either according to formulas based on market data or based on private quotations at the fiscal yearend date.Positive or negative changes in value are recognized under“Net financial income/(expense)”(within“Oth

130、er financial income and expenses”;see Note 27)for all shares held in the portfolio during the reported periods.By way of exception,changes in the value of noncurrent available for sale financial assets may be recognized within“Other items of comprehensive income,not transferable to income statement”

131、.At its level,Christian Dior integrates data from the LVMH Group without restatement.Regarding its own available for sale financial assets,as it is authorized to do under IFRS 9,Christian Dior reserves the right to choose,for each accounting item,the method for recognizing their change in market val

132、ue:either within“Net financial income/(expense)”or directly in equity.1.18 Inventories and work in progressInventories other than wine produced by the Group are recorded at the lower of cost(excluding interest expense)and net realizable value;cost comprises manufacturing cost(finished goods)or purch

133、ase price,plus incidental costs(raw materials,merchandise).Wine produced by the Group,including champagne,is measured on the basis of the applicable harvest market value,which is determined by reference to the average purchase price of equivalent grapes,as if the grapes harvested had been purchased

134、from third parties.Until the date of the harvest,the value of grapes is calculated on a pro rata basis,in line with the estimated yield and market value.Inventories are valued using either the weighted average cost or the FIFO method,depending on the type of business.Due to the length of the aging p

135、rocess required for champagnes,spirits(cognac,whisky and rum,in particular)and wines,the holding period for these inventories generally exceeds one year.However,in accordance with industry practices,these inventories are classified as current assets.Provisions for impairment of inventories are chief

136、ly recognized for businesses other than Wines and Spirits.They are generally required because of product obsolescence(end of season or collection,expiration date approaching,etc.)or lack of sales prospects.1.19 Trade accounts receivable,loans and other receivablesTrade accounts receivable,loans and

137、other receivables are recorded at amortized cost,which corresponds to their face value.Impairment is recognized for the portion of loans and receivables not covered by credit insurance when such receivables are recorded,in the amount of the losses expected upon maturity.This reflects the probability

138、 of counterparty default and the expected loss rate,measured using historical statistical data,information provided by credit bureaus,or ratings by credit rating agencies,depending on the specific case.The amount of longterm loans and receivables(i.e.those falling due in more than one year)is subjec

139、t to discounting,the effects of which are recognized under“Net financial income/(expense)”,using the effective interest method.14Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements1.20 Cash and cash equivalentsCash and

140、 cash equivalents comprise cash and highly liquid moneymarket investments subject to an insignificant risk of changes in value over time.Moneymarket investments are measured at their market value,based on price quotations at the close of trading and on the exchange rate prevailing at the fiscal year

141、end date,with any changes in value recognized as part of“Net financial income/(expense)”.1.21 ProvisionsA provision is recognized whenever an obligation exists towards a third party resulting in a probable disbursement for the Group,the amount of which may be reliably estimated.See also Notes 1.25 a

142、nd 20.If the date at which this obligation is to be discharged is in more than one year,the provision amount is discounted,the effects of which are recognized in“Net financial income/(expense)”using the effective interest method.1.22 BorrowingsBorrowings are measured at amortized cost,i.e.nominal va

143、lue net of issue premiums and issuance costs,which are charged over time to“Net financial income/(expense)”using the effective interest method.In the case of hedging against fluctuations in the value of borrowings resulting from changes in interest rates,both the hedged amount of borrowings and the

144、related hedging instruments are measured at their market value at the balance sheet date,with any changes in those values recognized within“Net financial income/(expense)”,under“Fair value adjustment of borrowings and interest rate hedges”.See Note 1.10 regarding the measurement of hedged borrowings

145、 at market value.Interest income and expenses related to hedging instruments are recognized within“Net financial income/(expense)”,under“Borrowing costs”.In the case of hedging against fluctuations in future interest payments,the related borrowings remain measured at their amortized cost while any c

146、hanges in value of the effective hedge portions are taken to equity as part of“Revaluation reserves”.Changes in value of nonhedging derivatives,and of the ineffective portions of hedges,are recognized within“Net financial income/(expense)”.Net financial debt comprises short and longterm borrowings,t

147、he market value at the balance sheet date of interest rate derivatives,less the amount at the balance sheet date of noncurrent available for sale financial assets used to hedge financial debt,current available for sale financial assets,cash and cash equivalents,in addition to the market value at tha

148、t date of foreign exchange derivatives related to any of the aforementioned items.1.23 DerivativesThe Group enters into derivative transactions as part of its strategy for hedging foreign exchange,interest rate and precious metal price risks.To hedge against commercial,financial and investment forei

149、gn exchange risk,the Group uses options,forward contracts,foreign exchange swaps and crosscurrency swaps.The time value of options,the forward point component of forward contracts and foreign exchange swaps,as well as the foreign currency basis spread component of crosscurrency swaps are systematica

150、lly excluded from the hedge relation.Consequently,only the intrinsic value of the instruments is considered a hedging instrument.Regarding hedged items(future foreign currency cash flows,commercial or financial liabilities and accounts receivable in foreign currencies,subsidiaries equity denominated

151、 in a functional currency other than the euro),only their change in value in respect of foreign exchange risk is considered a hedged item.As such,aligning the hedging instruments main features(nominal values,currencies,maturities)with those of the hedged items makes it possible to perfectly offset c

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

153、ased on market data and commonly used valuation models.Derivatives with maturities in excess of 12 months are disclosed as noncurrent assets and liabilities.1.24 Christian Dior and LVMH treasury sharesChristianDiortreasurysharesChristian Dior shares held by the Group are measured at their acquisitio

154、n cost and recognized as a deduction from consolidated equity,irrespective of the purpose for which they are held.In the event of disposal,the cost of the shares disposed of is determined by allocation category(see Note 16.3)using the FIFO method,with the exception of shares held under stock option

155、plans,for which the calculation is performed for each plan using the weighted average cost method.Gains and losses on disposal,net of income taxes,are taken directly to equity.Consolidated financial statements as of December 31,202415Consolidated fnancial statementsNotes to the consolidated fnancial

156、 statementsLVMHtreasurysharesPurchases and sales by LVMH of its own shares,as well as LVMH SE capital increases reserved for recipients of share subscription options,resulting in changes in the percentage held by the Christian Dior Group in LVMH,are accounted for in the consolidated financial statem

157、ents of the Christian Dior Group as changes in ownership interests in consolidated entities.As from January 1,2010,in accordance with the revised version of IFRS 3,changes in the Christian Dior Groups ownership interest in LVMH have been taken to equity.As this standard is applied prospectively,good

158、will recognized as of December 31,2009 has been maintained as an asset on the balance sheet.1.25 Pensions,contribution to medical costs and other employee benefit commitmentsWhen plans related to retirement bonuses,pensions,contributions to medical costs,or other employee benefit commitments entail

159、the payment by the Group of contributions to thirdparty organizations that assume sole responsibility for subsequently paying such retirement bonuses,pensions or contributions to medical costs,these contributions are expensed in the fiscal year in which they fall due,with no liability recorded on th

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

161、 are recognized as follows:the portion related to the cost of services rendered by employees and net interest for the fiscal year is recognized in profit from recurring operations for the fiscal year;the portion related to changes in actuarial assumptions and to differences between projected and act

162、ual data(experience adjustments)is recognized in gains and losses taken to equity.If this commitment is partially or fully funded by payments made by the Group to external financial organizations,these dedicated funds are deducted from the actuarial commitment recorded in the balance sheet.The actua

163、rial commitment is calculated based on assessments that are specifically designed for the country and the Group company concerned.In particular,these assessments include assumptions regarding discount rates,salary increases,inflation,life expectancy and staff turnover.1.26 Current and deferred taxTh

164、e tax expense comprises current tax payable by consolidated companies,deferred tax resulting from temporary differences,and the change in uncertain tax positions.Deferred tax is recognized in respect of temporary differences arising between the value of assets and liabilities for purposes of consoli

165、dation and the value resulting from the application of tax regulations.Deferred tax is measured on the basis of the income tax rates enacted at the balance sheet date;the effect of changes in rates is recognized during the periods in which changes are enacted.Future tax savings from tax losses carri

166、ed forward are recorded as deferred tax assets on the balance sheet and impaired if they are deemed not recoverable;only amounts for which future use is deemed probable are recognized.Deferred tax assets and liabilities are not discounted.Taxes payable in respect of the distribution of retained earn

167、ings of subsidiaries give rise to provisions if distribution is deemed probable.1.27 Revenue recognitionDefinitionofrevenueRevenue mainly comprises retail sales within the Groups store network(including ecommerce websites)and wholesale sales through agents and distributors.Sales made in stores owned

168、 by third parties are treated as retail transactions if the risks and rewards of ownership of the inventories are retained by the Group.Direct sales to customers are mostly made through retail stores in Fashion and Leather Goods and Selective Retailing,as well as certain Watches and Jewelry and Perf

169、umes and Cosmetics brands.The Group recognizes revenue when title transfers to thirdparty customers,which is generally at the time of purchase by retail customers.Wholesale sales mainly concern the Wines and Spirits businesses,as well as certain Perfumes and Cosmetics and Watches and Jewelry brands.

170、The Group recognizes revenue when title transfers to thirdparty customers.Revenue includes shipment and transportation costs rebilled to customers only when these costs are included in products selling prices as a lump sum.Sales of services,mainly involved in the Groups“Other activities”segment,are

171、recognized as the services are provided.Revenue is presented net of all forms of discount.In particular,payments made in order to have products referenced or,in accordance with agreements,to participate in advertising campaigns with the distributors,are deducted from related revenue.16Consolidated f

172、inancial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statementsProvisionsforproductreturnsPerfumes and Cosmetics companies and,to a lesser extent,Fashion and Leather Goods and Watches and Jewelry companies may accept the return of unsold or out

173、dated products from their customers and distributors.Retail sales,and in particular online sales,also result in product returns from customers.Where these practices are applied,revenue is reduced by the estimated amount of such returns,and a provision is recognized within“Other current liabilities”(

174、see Note 22.2),along with a corresponding entry made to inventories.The estimated rate of returns is based on historical statistical data.BusinessesundertakeninpartnershipwithDiageoA significant proportion of revenue for the Groups Wines and Spirits businesses is generated within the framework of di

175、stribution agreements with Diageo,generally taking the form of shared entities that sell and deliver both groups products to customers.The income statement and balance sheet of these entities is apportioned between the Group and Diageo based on distribution agreements.According to those agreements,t

176、he assets,liabilities,income and expenses of such entities are consolidated only in proportion to the Groups share of operations.1.28 Advertising and promotion expensesAdvertising and promotion expenses include the costs of producing advertising media,purchasing media space,manufacturing samples,pub

177、lishing catalogs and,in general,the cost of all activities designed to promote the Groups brands and products.Advertising and promotion expenses are recorded within marketing and selling expenses upon receipt or production of goods or upon completion of services rendered.1.29 Bonus share and similar

178、 plansThe expected gain for bonus share plans is calculated on the basis of the closing share price on the day before the Board of Directors meeting at which the plan is instituted,less the amount of dividends expected to accrue during the vesting period.For any bonus share plans subject to performa

179、nce conditions,the expense for the fiscal year includes provisional allocations for which the conditions are deemed likely to be met.For all plans,the amortization expense is apportioned on a straightline basis in the income statement over the vesting period,with a corresponding impact on reserves i

180、n the balance sheet.For any cashsettled compensation plans indexlinked to the change in the LVMH share price,the gain over the vesting period is estimated at each balance sheet date based on the LVMH share price at that date and is charged to the income statement on a pro rata basis over the vesting

181、 period,with a corresponding balance sheet impact on provisions.Between that date and the settlement date,the change in the expected gain resulting from the change in the LVMH share price is recorded in the income statement.For the LVMH Shares plan,the fair value of the benefit granted to employees(

182、discount and matching employer contribution)is calculated on the basis of the share price on the date the shares are allocated.1.30 Earnings per shareEarnings per share are calculated based on the weighted average number of shares outstanding during the fiscal year,excluding treasury shares.Where ap

183、plicable,diluted earnings per share are calculated based on the weighted average number of shares before dilution.Dilutive instruments issued by subsidiaries are also taken into consideration for the purposes of determining the Groups share of net profit after dilution.Consolidated financial stateme

184、nts as of December 31,202417Consolidated fnancial statementsNotes to the consolidated fnancial statementsNote 2.Changes in ownership interests in consolidated entities2.1 Fiscal year 2024PartnershipwithAccortodevelopOrientExpressIn June 2024,LVMH and Accor entered into a strategic partnership to acc

185、elerate the development of Orient Express,in particular through the operation of trains,hotels and sailing ships.OtherIn January 2024,LVMH acquired a majority stake in Nuti Ivo SpA,an Italian company founded in 1955,specializing in leatherworking.Throughout the year,LVMH acquired majority stakes,for

186、 nonmaterial amounts,in companies specializing in a range of different craft expertise,including leatherworking,jewelry,metal parts and watch movements.In June 2024,LVMH acquired the entire share capital of Swiza,the owner of highend Swiss clock manufacturer LEpe 1839.In June 2024,LVMH acquired an a

187、dditional 10%stake in Maison Francis Kurkdjian.In September 2024,LVMH sold 100%of OffWhite.In October 2024,LVMH acquired the entire share capital of weekly magazine Paris Match,one of Frances most highprofile press publications,launched in March 1949,and acquired an additional 5%stake in Sephoras Mi

188、ddle East business.Equity investments newly consolidated in 2024 did not have a significant impact on revenue or profit from recurring operations for the fiscal year.2.2 Fiscal year 2023MinutyIn January 2023,Mot Hennessy took a majority stake in the share capital of Minuty SAS and acquired control o

189、f the companys winegrowing assets.Chteau Minuty is renowned worldwide for its ros wine,which has been a Grand Cru Class since 1955,and is located in Gassin on the peninsula of SaintTropez(France).Starboard&OnboardCruiseServicesIn December 2023,LVMH sold an 80%stake in Cruise Line Holdings Co.the hol

190、ding company of the Starboard&Onboard Cruise Services businesses to a group of private investors.OtherIn September 2023,LVMH acquired a majority stake in the Platinum Invest group,a French high jewelry manufacturer,in order to reinforce its production capacity,in particular for Tiffany.In September

191、2023 and November 2023,Thlios acquired all the shares in the companies that own the iconic French and American eyewear brands Vuarnet and Barton Perreira,respectively.LVMH Mtiers dArt acquired a majority stake in Spanish tannery Verdeveleno in October 2023,and in December 2023 it acquired all the sh

192、ares in Menegatti,an Italian company specializing in the production of metal parts.In May 2023,LVMH entered into an agreement to acquire a majority stake in Nuti Ivo SpA.Equity investments newly consolidated in 2023 did not have a significant impact on revenue or profit from recurring operations for

193、 the fiscal year.18Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements2.3 Fiscal year 2022JosephPhelpsIn August 2022,the Group acquired the entire share capital of Joseph Phelps,a California estate offering a collectio

194、n of Napa Valley and Sonoma Coast red wines.The price paid,which totaled 587 million US dollars(587 million euros),was mainly allocated to the Joseph Phelps brand,in the amount of 169 million euros,and to producing vineyards for 119 million euros.Final goodwill came to 186 million euros.SephoraIn Oc

195、tober 2022,Sephora disposed of all its shares in its Russian subsidiary.OffWhiteIn September 2022,LVMH acquired an additional 40%stake in OffWhite,bringing its ownership interest to 100%.PedemonteIn November 2022,LVMH announced the acquisition of Pedemonte Group,a jewelry manufacturer with locations

196、 in Italy and France,from the Equinox III SLP SIF investment fund.This equity investment was consolidated in 2023.Equity investments newly consolidated in 2022 did not have a significant impact on revenue or profit from recurring operations for the fiscal year.2.4 Impact on net cash and cash equival

197、ents of changes in ownership interests in consolidated entities(EUR millions)202420232022Purchase price of consolidated investments and of minority interests shares(1,474)(2,918)(3,147)Positive cash balance/(net overdraft)of companies acquired91 8014Proceeds from sale of consolidated investments164

198、69334(Positive cash balance)/net overdraft of companies sold(3)(2)(20)Impactofchangesinownershipinterestsinconsolidatedentitiesonnetcashandcashequivalents(1,223)(2,771)(2,819)Of which:Purchase and proceeds from sale of consolidated investments(438)(721)(809)Purchase and proceeds from sale of minorit

199、y interests(784)(2,051)(2,010)In 2024,the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities primarily arose from the acquisition of controlling interests in Orient Express,Paris Match,Nuti Ivo and Swiza,partially offset by the disposal of OffWhite.It

200、also included the cash impact of acquisitions of LVMH shares by Group companies and the impact of the LVMH liquidity contract.In 2023,the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities arose in particular from the acquisitions of Minuty,Platinum In

201、vest,Barton Perreira and Vuarnet.In addition to the net cash impact of the purchase and sale of consolidated investments,the Group may take on the borrowings of entities acquired(see Note 19).In most cases,such borrowings are repaid to thirdparty lenders.It also included the cash impact of LVMH shar

202、e buyback programs,the main purpose of which is to retire the shares purchased.In 2022,the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities arose in particular from the acquisition of Joseph Phelps.It also included the cash impact of LVMH share buyba

203、ck programs.Consolidated financial statements as of December 31,202419Consolidated fnancial statementsNotes to the consolidated fnancial statementsNote 3.Brands,trade names and other intangible assets(EUR millions)Dec.31,2024Dec.31,2023Dec.31,2022GrossAmortizationandimpairmentNetNetNetBrands21,805(8

204、10)20,995 20,62520,685Trade names4,205(1,737)2,467 2,3362,410License rights50(42)8 1217Software,websites4,398(3,168)1,230 1,035926Other1,793(1,077)716 717528Total32,251(6,834)25,41724,72424,5653.1 Changes during the fiscal yearThe carrying amounts of brands,trade names and other intangible assets ch

205、anged as follows during the fiscal year:Grossvalue(EUR millions)BrandsTradenamesSoftware,websitesOtherintangibleassetsTotalAsofDecember31,202321,4383,9723,9461,61630,972Acquisitions393444837 Disposals and retirements(2)(322)(87)(411)Changes in the scope of consolidation(91)412639 Translation adjustm

206、ent4592338110783 Reclassifications297(267)30 AsofDecember31,202421,8054,2054,3981,84332,251Amortizationandimpairment(EUR millions)BrandsTradenamesSoftware,websitesOtherintangibleassetsTotalAsofDecember31,2023(813)(1,636)(2,912)(888)(6,248)Amortization expense(7)(511)(295)(813)Impairment expense20(3)

207、117 Disposals and retirements232287411 Changes in the scope of consolidation(3)(12)(14)Translation adjustment(12)(101)(60)(6)(180)Reclassifications(2)(5)(7)AsofDecember31,2024(810)(1,737)(3,168)(1,119)(6,834)CarryingamountasofDecember31,202420,9952,4671,23072425,417Translation adjustments mainly rel

208、ated to brands and trade names recognized in US dollars,based on fluctuations in the US dollartoeuro exchange rate between January 1 and December 31,2024.20Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements3.2 Changes

209、 during prior fiscal yearsThe carrying amounts of brands,trade names and other intangible assets changed as follows during prior fiscal years:Carryingamount(EUR millions)BrandsTradenamesSoftware,websitesOtherintangibleassetsTotalAsofDecember31,202120,0132,28584953623,684Acquisitions319366685 Disposa

210、ls and retirements(1)(1)Changes in the scope of consolidation187(1)6192 Amortization expense(7)(425)(171)(603)Impairment expense(11)(4)(1)(16)Translation adjustment5021252012660 Reclassifications168(203)(35)AsofDecember31,202220,6852,41092654424,565Acquisitions3526481,000 Disposals and retirements C

211、hanges in the scope of consolidation110113124 Amortization expense(7)(454)(258)(719)Impairment expense3(1)2 Translation adjustment(163)(75)(16)2(252)Reclassifications223(220)3 AsofDecember31,202320,6252,3361,03572924,7243.3 Brands and trade namesThe breakdown of brands and trade names by business gr

212、oup is as follows:(EUR millions)December31,2024Dec.31,2023Dec.31,2022GrossAmortization andimpairmentNetNetNetWines and Spirits3,577(164)3,413 3,3623,267Fashion and Leather Goods5,347(316)5,030 5,2165,225Perfumes and Cosmetics1,397(100)1,298 1,3001,309Watches and Jewelry10,969(105)10,864 10,45810,594

213、Selective Retailing4,157(1,690)2,467 2,3362,410Other activities563(173)390 290290Brandsandtradenames26,009(2,547)23,46222,96123,095The brands and trade names recognized are those that the Group has acquired.As of December 31,2024,the principal acquired brands and trade names were:Wines and Spirits:H

214、ennessy,Mot&Chandon,Dom Prignon,Veuve Clicquot,Krug,Chteau dYquem,Belvedere,Glenmorangie,Newton Vineyard,Bodega Numanthia,Chteau dEsclans,Armand de Brignac,Joseph Phelps and Chteau Minuty;Fashion and Leather Goods:Louis Vuitton,Fendi,Celine,Loewe,Givenchy,Kenzo,Berluti,Pucci,Loro Piana and Rimowa;Pe

215、rfumes and Cosmetics:Parfums Christian Dior,Guerlain,Parfums Givenchy,Make Up For Ever,Benefit Cosmetics,Fresh,Acqua di Parma,KVD Vegan Beauty,Fenty,Ole Henriksen,Maison Francis Kurkdjian and Officine Universelle Buly 1803;Watches and Jewelry:Tiffany,Bulgari,TAG Heuer,Zenith,Hublot,Chaumet,Fred,LEpe

216、 1839 and Repossi;Selective Retailing:DFS Galleria,Sephora and Le Bon March;Other activities:the publications of the media group Les EchosInvestir,the Le Parisien-Aujourdhui en France daily newspaper,Paris Match magazine,the Royal Van LentFeadship brand,La Samaritaine,the hotel group Belmond and the

217、 Cova pastry shop brand.Consolidated financial statements as of December 31,202421Consolidated fnancial statementsNotes to the consolidated fnancial statementsThese brands and trade names are recognized in the balance sheet at their value determined as of the date of their acquisition by the Group,w

218、hich may be much less than their value in use or their market value as of the closing date for the Groups consolidated financial statements.This is notably the case for the brands Louis Vuitton,Christian Dior Couture,Veuve Clicquot and Parfums Christian Dior,and the trade name Sephora,with the under

219、standing that this list must not be considered exhaustive.See also Note 5 for the impairment testing of brands,trade names and other intangible assets with indefinite useful lives.Note 4.Goodwill(EUR millions)December31,2024Dec.31,2023Dec.31,2022GrossImpairmentNetNetNetGoodwill arising on consolidat

220、ed investments19,290(1,752)17,538 16,81016,351Goodwill arising on purchase commitments for minority interests shares1,239 1,239 5,6826,899Total20,529(1,752)18,77622,49223,250Changes in net goodwill during the fiscal years presented break down as follows:(EUR millions)202420232022GrossImpairmentNetNe

221、tNetAsofJanuary124,195(1,703)22,49223,25024,371Changes in the scope of consolidation156 156 713604Changes in purchase commitments for minority interests shares(4,378)(4,378)(1,235)(2,204)Changes in impairment(12)(12)(27)Translation adjustment556(37)519(236)506AsofDecember3120,529(1,752)18,77622,4922

222、3,250See Note 21 for goodwill arising on purchase commitments for minority interests shares.Changes in the scope of consolidation mainly resulted from the acquisition of Swiza and Nuti Ivo,the investment in Orient Express,and various acquisitions carried out in prior periods but that had not yet bee

223、n consolidated as of December 31,2023,partially offset by the disposal of OffWhite.See Note 2.Translation adjustments mainly related to goodwill recognized in US dollars,based on fluctuations in the US dollartoeuro exchange rate between January 1 and December 31,2024.In 2023,changes in the scope of

224、consolidation mainly resulted from the acquisitions of Minuty,Platinum Invest,Barton Perreira and Vuarnet.See Note 2.In 2022,changes in the scope of consolidation mainly arose from the acquisition of Joseph Phelps as well as the consolidation of acquisitions made prior to 2022,in particular Officine

225、 Universelle Buly and Feelunique,and from Sephoras disposal of its subsidiary in Russia.See Note 2.22Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statementsNote 5.Impairment testing of intangible assets with indefinite use

226、ful livesBrands,trade names and other intangible assets with indefinite useful lives as well as the goodwill arising on acquisition were subject to annual impairment testing.No significant impairment expenses were recognized in respect of these items during the course of fiscal year 2024.As describe

227、d in Note 1.16,these assets are generally valued on the basis of the present value of forecast cash flows determined in the context of multiyear business plans drawn up each fiscal year.The consequences of the macroeconomic environment continue to disrupt the commercial operations of certain Maisons

228、 and vary by geographic region and business group.However,the Group believes that these disruptions are not likely to affect the achievement of objectives set in multiyear business plans.The main assumptions used to determine these forecast cash flows are as follows:Businessgroup(as%)202420232022Dis

229、countrateAnnualgrowthrateforrevenueduringtheplanperiodGrowthratefortheperiodaftertheplanPosttaxdiscountrateAnnualgrowthrateforrevenueduringtheplanperiodGrowthratefortheperiod aftertheplanPosttaxdiscountrateAnnualgrowthrateforrevenueduringtheplanperiodGrowth ratefor theperiod afterthe planPosttaxPret

230、axWines and Spirits6.9 to 7.4 9.3 to 10.0 4.8 2.0 6.9 to 10.96.32.57.1 to 11.98.22.0Fashion and Leather Goods8.3 to 9.1 11.2 to 12.3 8.2 2.8 8.6 to 8.810.13.39.6 to 11.09.42.0Perfumes and Cosmetics8.3 to 8.9 11.2 to 12.0 7.2 2.7 8.5 to 9.110.13.08.3 to 8.510.92.0Watches and Jewelry8.3 to 8.9 11.2 to

231、 12.0 6.1 2.5 8.6 to 9.110.43.08.8 to 9.08.82.0 to 2.5Selective Retailing9.4 to 10.0 12.7 to 13.5 6.1 1.5/2.0 9.0 to 9.58.42.59.7 to 9.89.52.0Other8.8 to 9.3 11.9 to 12.6 5.5 1.5 to 2.6 8.7 to 9.33.52.08.5 to 9.74.72.0Plans generally cover a fiveyear period,but may be prolonged up to ten years in th

232、e case of brands for which the production cycle exceeds five years or brands undergoing strategic repositioning.Annual growth rates applied for the period not covered by the plans are based on market estimates for the business groups concerned.As of December 31,2024,the intangible assets with indefi

233、nite useful lives that are the most significant in terms of their carrying amounts and the criteria used for impairment testing are as follows:(EUR millions)BrandsandtradenamesGoodwillTotalPosttax discountrate(as%)Growthrate fortheperiod aftertheplan(as%)PeriodcoveredbytheforecastcashflowsLouis Vuit

234、ton2,0606302,690 8.92.85 yearsLoro Piana1,3001,0482,348 8.92.85 yearsFendi7134171,129 8.92.85 yearsTiffany(a)7,0278,24215,269 8.72.510 yearsBulgari2,1001,5473,647 8.92.55 yearsTAG Heuer(a)1,3182501,568 8.92.510 yearsDFS(a)2,2032,203 10.02.010 yearsSephora265717981 9.41.55 yearsBelmond(a)126792918 9.

235、31.510 yearsHennessy1,067471,114 6.92.05 years(a)These Maisons are considered to be undergoing strategic repositioning,based on a 10year business plan.Consolidated financial statements as of December 31,202423Consolidated fnancial statementsNotes to the consolidated fnancial statementsAs of December

236、 31,2024,three Maisons disclosed intangible assets with a carrying amount close to their recoverable amount.Impairment tests relating to intangible assets with indefinite useful lives in these Maisons have been carried out based on value in use.The amount of these intangible assets as of December 31

237、,2024 and the impairment loss that would result from a 1.5point increase in the posttax discount rate,a 1.0point decrease in the growth rate for the period not covered by the plans,or a 4.0point decrease in the annual growth rate for revenue compared to rates used as of December 31,2024,break down a

238、s follows:(EUR millions)AmountofintangibleassetsconcernedasofDecember31,2024Amountofimpairmentif:Posttaxdiscountrateincreasesby1.5pointsAnnualgrowthrateforrevenuedecreasesby4pointsGrowthrate fortheperiodaftertheplansdecreasesby1.0pointWatches and Jewelry(a)16,837(4,044)(5,161)(1,360)Selective Retail

239、ing(b)2,203(142)(119)Total19,040(4,186)(5,280)(1,360)(a)Concerns Tiffany and TAG Heuer.(b)Concerns DFS.The Group considers that changes in excess of those mentioned above would entail assumptions at a level not deemed relevant in view of the current economic environment and medium to longterm growth

240、 prospects for the business segments concerned.Moreover,a fourpoint decrease in the average growth rate for revenue over the plan period is a pessimistic assumption with a very low probability of occurrence.As of December 31,2024,the gross and net values of brands,trade names and goodwill giving ris

241、e to amortization and/or impairment charges in 2024 were 588 million euros and 287 million euros,respectively(51 million euros and 16 million euros as of December 31,2023).Impairment and amortization expenses recognized during fiscal year 2024 in respect of intangible assets with indefinite useful l

242、ives amounted to a net reversal of 1 million euros.See Note 26.Note 6.Property,plant and equipment(EUR millions)December31,2024Dec.31,2023Dec.31,2022GrossDepreciation andimpairmentNetNetNetLand7,995(24)7,971 7,3934,947Vineyard land and producing vineyards(a)3,179(141)3,038 2,9482,729Buildings8,901(3

243、,417)5,484 5,1604,720Investment property378(57)321 318437Leasehold improvements,machinery and equipment23,472(15,744)7,728 6,6535,773Assets in progress2,394(74)2,320 2,0801,809Other property,plant and equipment3,017(626)2,391 2,1452,000Total49,336(20,083)29,25326,69722,414Of which:Historical cost of

244、 vineyard land1,030-1,030 924760(a)Almost all of the carrying amount of“Vineyard land and producing vineyards”corresponds to vineyard land.24Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements6.1 Changes during the fis

245、cal yearChanges in property,plant and equipment during the fiscal year broke down as follows:Grossvalue(EUR millions)VineyardlandandproducingvineyardsLandandbuildingsInvestmentpropertyLeaseholdimprovements,machineryandequipmentAssetsinprogressOtherproperty,plantandequipmentTotalStoresandhotelsProduc

246、tion,logisticsOtherAsofDecember31,20233,08415,63137014,3094,2452,3262,1252,74344,833Acquisitions2864621,2102301752,1692564,716 Change in the market value of vineyard land2323 Disposals and retirements(9)(73)(747)(91)(172)(2)(57)(1,151)Changes in the scope of consolidation23(3)676432138 Translation a

247、djustment34214536659503830796 Other movements,including transfers1845411,001249194(1,979)44(18)AsofDecember31,20243,17916,89637816,1354,7592,5782,3943,01749,336Depreciationandimpairment(EUR millions)VineyardlandandproducingvineyardsLandandbuildingsInvestmentpropertyLeaseholdimprovements,machineryand

248、equipmentAssetsinprogressOtherproperty,plantandequipmentTotalStoresandhotelsProduction,logisticsOtherAsofDecember31,2023(136)(3,077)(52)(9,753)(2,899)(1,575)(45)(598)(18,136)Depreciation expense(9)(399)(5)(1,537)(291)(225)(84)(2,549)Impairment expense(2)(80)(1)(6)(29)1(117)Disposals and retirements3

249、6874487172561,130 Changes in the scope of consolidation(6)4(48)(4)(1)(56)Translation adjustment(1)(41)(1)(243)(23)(39)(1)(5)(353)Other movements,including transfers17(69)(9)5116(2)AsofDecember31,2024(141)(3,441)(57)(10,934)(3,183)(1,626)(74)(626)(20,083)CarryingamountasofDecember31,20243,03813,45532

250、15,2011,5769512,3202,39129,253“Other property,plant and equipment”included in particular the works of art owned by the Group.As of December 31,2024,purchases of property,plant and equipment mainly included investments by the Groups Maisons notably Louis Vuitton,Christian Dior Couture,Tiffany and Sep

251、hora in their retail networks.They also included investments by the champagne houses,Hennessy and Parfums Christian Dior in their production equipment,as well as investments relating to the Groups hotel activities.In addition,buildings were acquired in Tokyo and Paris by the Groups holding companies

252、 and Maisons,mainly in order to operate stores in them.Translation adjustments on property,plant and equipment mainly related to fixed assets recognized in US dollars and pounds sterling,based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and De

253、cember 31,2024.The market value of investment property,according to appraisals by independent third parties,was at least 0.6 billion euros as of December 31,2024.The valuation methods used are based on market data.Consolidated financial statements as of December 31,202425Consolidated fnancial statem

254、entsNotes to the consolidated fnancial statements6.2 Changes during prior fiscal yearsChanges in property,plant and equipment during prior fiscal years broke down as follows:Carryingamount(EUR millions)VineyardlandandproducingvineyardsLandandbuildingsInvestmentpropertyLeaseholdimprovements,machinery

255、andequipmentAssetsinprogressOtherproperty,plantandequipmentTotalStoresandhotelsProduction,logisticsOtherAsofDecember31,20212,6238,2723233,3981,1525641,3021,90919,543Acquisitions261,0621159092041611,7701524,398 Disposals and retirements1(1)(2)(2)(4)(51)(60)Depreciation expense(7)(292)(6)(1,260)(240)(

256、185)(66)(2,056)Impairment expense(1)(49)(10)1(1)(2)(62)Change in the market value of vineyard land(72)(72)Changes in the scope of consolidation11983522237239 Translation adjustment349440861314137 Other movements,including transfers39541772119112(1,274)38347 AsofDecember31,20222,7299,6674373,8531,263

257、6571,8092,00022,414Acquisitions832,55321,1632181822,4491766,824 Disposals and retirements(12)(4)(110)(3)(3)(3)(6)4(136)Depreciation expense(9)(331)(6)(1,335)(264)(194)(71)(2,209)Impairment expense(1)(6)(5)(2)(45)(1)(60)Change in the market value of vineyard land5353 Changes in the scope of consolida

258、tion8466(6)14111161 Translation adjustment(12)(126)(3)(139)(8)(10)(38)(12)(348)Other movements,including transfers33734(2)1,030127119(2,090)48(1)AsofDecember31,20232,94812,5533184,5561,3467502,0802,14526,697In 2023,purchases of property,plant and equipment mainly included investments by the Groups M

259、aisons notably Louis Vuitton,Christian Dior Couture,Tiffany and Sephora in their retail networks.They also included investments by the champagne houses,Hennessy and Louis Vuitton in their production equipment,as well as investments relating to the Groups hotel activities.In addition,buildings were a

260、cquired in Paris and London by the Groups holding companies and Maisons,mainly in order to operate stores in them.At the end of April 2023,Tiffanys iconic store on Fifth Avenue in New York reopened after several years of renovation.In 2022,purchases of property,plant and equipment mainly included in

261、vestments by the Groups Maisons notably Christian Dior Couture,Louis Vuitton,Tiffany and Sephora in their retail networks.They also included investments by the champagne houses,Hennessy and Louis Vuitton in their production equipment,as well as investments relating to the Groups hotel activities.In

262、the second half of 2022,an investment was made in several buildings in Paris,which resulted in particular in the Group acquiring full ownership of the premises serving as its headquarters,in which it had previously held a 40%stake,recognized under“Investments in joint ventures and associates”.The pr

263、eviously held stake was remeasured(see Note 26)and the corresponding investment(see Note 8)was reclassified under“Property,plant and equipment”at its new value.Changes in the scope of consolidation in 2022 mainly resulted from the acquisition of Joseph Phelps.See Note 2.3.26Consolidated financial st

264、atements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statementsNote 7.Leases7.1 Rightofuse assetsRightofuse assets break down as follows,by type of underlying asset:(EUR millions)December31,2024Dec.31,2023Dec.31,2022GrossDepreciation andimpairmentNetNetNe

265、tStores23,054(10,070)12,984 12,20611,202Offices3,754(1,453)2,300 2,2532,274Other1,567(524)1,043 896856Capitalizedfixedleasepayments28,375(12,048)16,32715,35514,332Leasehold rights929(643)286 317277Total29,304(12,691)16,61315,67314,609The carrying amounts of rightofuse assets changed as follows durin

266、g the fiscal year:Carryingamount(EUR millions)CapitalizedfixedleasepaymentsLeaseholdrightsTotalStoresOfficesOtherTotalAsofDecember31,202312,2062,25389615,35531715,673New leases entered into2,3462822752,903282,931 Changes in assumptions69810434837837 Leases ended or canceled(19)(1)(7)(26)(3)(29)Depre

267、ciation expense(2,587)(383)(160)(3,130)(56)(3,186)Impairment expense(47)13(5)(38)(4)(42)Changes in the scope of consolidation(1)877 Translation adjustment35837184132414 Other movements,including transfers27(4)(17)718 AsofDecember31,202412,9842,3001,04316,32728616,613“New leases entered into”involved

268、 store leases,in particular for Louis Vuitton,Christian Dior Couture,Tiffany and Sephora.They also included leases of office space,mainly for Louis Vuitton.Changes in assumptions mainly resulted from adjustments to estimated lease terms.These two types of changes led to corresponding increases in ri

269、ghtofuse assets and lease liabilities.Translation adjustments mainly related to leases recognized in US dollars and Hong Kong dollars,based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and December 31,2024.7.2 Lease liabilitiesLease liabilities

270、 break down as follows:(EUR millions)Dec.31,2024Dec.31,2023Dec.31,2022Noncurrent lease liabilities14,860 13,81012,776Current lease liabilities2,972 2,7282,632Total17,83216,53815,408Consolidated financial statements as of December 31,202427Consolidated fnancial statementsNotes to the consolidated fna

271、ncial statementsThe change in lease liabilities during the fiscal year breaks down as follows:(EUR millions)StoresOfficesOtherTotalAsofDecember31,202313,0832,54691016,538New leases entered into2,3212722752,868 Principal repayments(2,401)(335)(139)(2,875)Change in accrued interest176326 Leases ended

272、or canceled(21)(2)(8)(32)Changes in assumptions68610433824 Changes in the scope of consolidation(1)1111 Translation adjustment4084522475 Other movements,including transfers5(3)(6)(4)AsofDecember31,202414,0992,6331,10117,832The following table presents the contractual schedule of disbursements for le

273、ase liabilities as of December 31,2024:(EUR millions)AsofDecember31,2024TotalminimumfuturepaymentsMaturity:20253,399 20263,025 20272,583 20282,231 20291,829 Between 2030 and 20345,278 Between 2035 and 20391,281 Thereafter1,075 Totalminimumfuturepayments20,702Impact of discounting(2,869)Totalleaselia

274、bility17,8327.3 Breakdown of lease expenseThe lease expense for the fiscal year breaks down as follows:(EUR millions)202420232022Depreciation and impairment of capitalized fixed lease payments3,168 2,9802,950Interest on lease liabilities510 393254Capitalized fixed lease expense3,678 3,3733,204Variab

275、le lease payments2,509 2,7882,445Shortterm leases and/or lowvalue leases582 548458Other lease expenses3,091 3,3362,902Total6,7696,7106,107In certain countries,leases for stores entail the payment of both minimum amounts and variable amounts,especially for stores with lease payments indexed to revenu

276、e.As required by IFRS 16,only the minimum fixed lease payments are capitalized.“Other lease expenses”mainly relate to variable lease payments.For leases not required to be capitalized,there is little difference between the expense recognized and the payments made.28Consolidated financial statements

277、as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements7.4 Changes during prior fiscal yearsThe change in rightofuse assets during the previous fiscal years breaks down as follows,by type of underlying asset:Carryingamount(EUR millions)Capitalizedfixedleas

278、epaymentsLeaseholdrightsTotalStoresOfficesOtherTotalAsofDecember31,202110,6361,99177113,39830113,699New leases entered into2,7378051763,718363,754 Changes in assumptions160(171)716060 Leases ended or canceled(64)(18)(21)(102)(5)(107)Depreciation expense(2,452)(355)(129)(2,936)(61)(2,998)Impairment e

279、xpense(16)2(14)5(9)Changes in the scope of consolidation(46)(3)(20)(69)(68)Translation adjustment26225122991300 Other movements,including transfers(17)(1)(3)(22)(1)(23)AsofDecember31,202211,2022,27485614,33227714,609New leases entered into2,9006211643,686783,763 Changes in assumptions7534540838838 L

280、eases ended or canceled(99)(2)(100)(101)Depreciation expense(2,477)(377)(137)(2,991)(55)(3,046)Impairment expense4711415 Changes in the scope of consolidation(7)(2)(9)(9)Translation adjustment(335)(40)(23)(398)(399)Other movements,including transfers259(268)(3)(12)142 AsofDecember31,202312,2062,2538

281、9615,35531715,673The change in lease liabilities during the previous fiscal years breaks down as follows:(EUR millions)StoresOfficesOtherTotalAsofDecember31,202111,3092,19876814,275New leases entered into2,6987931653,656 Principal repayments(2,291)(302)(118)(2,711)Change in accrued interest102214 Le

282、ases ended or canceled(70)(18)(23)(111)Changes in assumptions147(172)7145 Changes in the scope of consolidation(47)(2)(26)(75)Translation adjustment2883016334 Other movements,including transfers(20)1(20)AsofDecember31,202212,0242,53085415,408New leases entered into2,8616021633,626 Principal repaymen

283、ts(2,338)(320)(118)(2,777)Change in accrued interest278237 Leases ended or canceled(142)(5)(1)(147)Changes in assumptions7504640835 Changes in the scope of consolidation(1)(9)(2)(11)Translation adjustment(352)(44)(24)(420)Other movements,including transfers254(262)(4)(12)AsofDecember31,202313,0832,5

284、4691016,538Consolidated financial statements as of December 31,202429Consolidated fnancial statementsNotes to the consolidated fnancial statements7.5 Offbalance sheet commitmentsOffbalance sheet commitments relating to leases with fixed lease payments break down as follows:(EUR millions)Dec.31,2024D

285、ec.31,2023Dec.31,2022Contracts commencing after the balance sheet date725 888872Lowvalue leases and shortterm leases293 286207Totalundiscountedfuturepayments1,0181,1741,078As part of the active management of its retail network,the Group negotiates and enters into leases with commencement dates after

286、 the balance sheet date.Obligations to make payments under these leases are reported as offbalance sheet commitments rather than being recognized as lease liabilities.In addition,the Group may enter into leases or concession contracts that have variable guaranteed amounts,which are not reflected in

287、the commitments above.7.6 Discount rateThe average discount rate for lease liabilities breaks down as follows for leases in effect as of December 31,2024:(as%)AveragerateforleasesineffectasofDecember31,2024Averagerateforleasesenteredintoin2024Euro2.2 3.2US dollar3.8 4.7Japanese yen0.8 1.5Hong Kong d

288、ollar3.8 4.2Other currencies3.5 3.8AverageratefortheGroup3.13.77.7 Termination and renewal optionsThe term used to calculate the lease liability is generally the contractual term of the lease.Special cases may exist where an early termination option or a renewal option is reasonably certain to be ex

289、ercised,and as such the lease term used to calculate the lease liability is reduced or extended,respectively.The table below presents the impact of these assumptions on lease liabilities recognized as of December 31,2024:(EUR millions)AsofDecember31,2024LeaseliabilitiesOf which:Impactofoptionsnottak

290、enintoaccount(a)Impact of early termination optionsImpact of renewal optionsRenewal optionsEarly termination optionsLease liabilities related to contracts:with options7,085(236)2,0011,845(844)without options10,747 Total17,832(236)2,0011,845(844)(a)The impact of options not taken into account present

291、ed in the table above was calculated by discounting future lease payments on the basis of the last known contractual term.30Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statementsNote 8.Investments in joint ventures and as

292、sociates(EUR millions)202420232022NetOf which:Joint arrangementsNetOf which:Joint arrangementsNetOf which:Joint arrangementsShareofnetassetsofjointventuresandassociatesasofJanuary1991495 1,0664961,084432Share of net profit/(loss)for the period28 18 74374Dividends paid(55)(11)(50)(9)(60)(9)Changes in

293、 the scope of consolidation379-63-3031Capital increases subscribed22 11 1152826Translation adjustment30 9(16)(6)158Impairment of goodwill and brands recognized by joint ventures and associates(67)(26)(98)-Other,including transfers15 2 85(69)3ShareofnetassetsofjointventuresandassociatesasofDecember31

294、1,343498 9914951,066496Changes in the scope of consolidation mainly resulted from the Groups additional investment previously presented within“Noncurrent available for sale financial assets”(see Note 9)in a company that is a joint shareholder of a commercial property complex,as well as the strategic

295、 partnership entered into with Accor to develop Orient Express.Impairment of goodwill and brands recognized by joint ventures and associates is presented within“Other operating income and expenses”in the consolidated income statement(see Note 26).As of December 31,2024,investments in joint ventures

296、and associates consisted primarily of the following:For joint arrangements:a 50%stake in the Chteau Cheval Blanc wine estate(Gironde,France),which produces the eponymous Saintmilion Grand Cru Class A;a 50%stake in hotel and rail transport activities operated by Belmond in Peru.For other companies:a

297、40%stake in L Catterton Management,an investment fund management company created in December 2015 in partnership with Catterton;a 49%stake in Stella McCartney,a Londonbased readytowear brand;a 30%stake in Phoebe Philo,a Londonbased readytowear brand;a 49%stake in Editions Assouline,a French publishi

298、ng house.Changes in the scope of consolidation in fiscal year 2022 mainly resulted from the acquisition of a controlling interest in Mongoual SA,a real estate company that owns an office building in Paris(France).Note 9.Noncurrent available for sale financial assets(EUR millions)202420232022AsofJanu

299、ary11,3631,1091,363Acquisitions638 212369Disposals at net realized value(50)(30)(98)Changes in market value(a)47 211(125)Changes in the scope of consolidation(376)(120)(410)Translation adjustment11(19)10AsofDecember311,6321,3631,109(a)Recognized within“Net financial income/(expense)”.Consolidated fi

300、nancial statements as of December 31,202431Consolidated fnancial statementsNotes to the consolidated fnancial statementsChanges in the scope of consolidation in 2024 related to the initial consolidation of various acquisitions carried out prior to December 31,2023 but that had not yet been consolida

301、ted as of that date,as well as the consolidation using the equity method of an investment that was previously classified as a noncurrent available for sale financial asset,following its development(see Note 8).In September 2024,LVMH and Remo Ruffini Chairman and CEO of Moncler entered into an invest

302、ment agreement under which LVMH plans to acquire,over a period of 19 months,up to 22%of the share capital and voting rights in Double R,the holding company that controls Moncler,owned by Mr.Ruffini.Double R will hold up to an 18.50%stake in Moncler.As of December 31,2024,securities to be consolidate

303、d constituted a relatively nonmaterial amount.Most of these investments will be consolidated in 2025.Note 10.Other noncurrent assets(EUR millions)Dec.31,2024Dec.31,2023Dec.31,2022Warranty deposits602 577554Derivatives(a)105 9997Loans and receivables271 243444Other127 9891Total1,1061,0171,187(a)See N

304、ote 23.Note 11.Inventories and work in progress(EUR millions)December31,2024Dec.31,2023Dec.31,2022GrossImpairmentNetNetNetWines and eaux-de-vie in the process of aging7,086(51)7,035 6,5825,932Other raw materials and work in progress5,354(981)4,373 4,5594,18712,440(1,032)11,40811,14110,120Goods purch

305、ased for resale3,091(334)2,757 2,6502,410Finished products11,749(2,245)9,504 9,1617,79014,840(2,579)12,26111,81110,200Total27,280(3,611)23,66922,95220,319The change in net inventories for the fiscal years presented breaks down as follows:(EUR millions)202420232022GrossImpairmentNetNetNetAsofJanuary1

306、26,124(3,172)22,95220,31916,549Change in gross inventories1,114 1,114 4,2304,169Impact of provision for returns(a)3 3(10)(17)Impact of marking harvests to market(43)(43)5424Changes in provision for impairment(834)(834)(986)(574)Changes in the scope of consolidation107(10)97(80)53Translation adjustme

307、nt431(55)376(571)129Other,including reclassifications(456)459 3(5)(13)AsofDecember3127,280(3,611)23,66922,95220,319(a)See Note 1.27.32Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statementsThe impact of marking harvests to

308、 market on Wines and Spirits cost of sales and value of inventory is as follows:(EUR millions)202420232022Impact of marking the fiscal years harvest to market(27)6240Impact of inventory sold during the fiscal year(16)(8)(16)Netimpactoncostofsalesforthefiscalyear(43)5424Netimpactonthevalueofinventory

309、asofDecember319313682See Notes 1.10 and 1.18 on the method of marking harvests to market.Note 12.Trade accounts receivable(EUR millions)Dec.31,2024Dec.31,2023Dec.31,2022Trade accounts receivable,nominal amount4,856 4,8434,369Provision for impairment(125)(115)(111)Netamount4,7304,7284,258The change i

310、n trade accounts receivable for the fiscal years presented breaks down as follows:(EUR millions)202420232022GrossImpairmentNetNetNetAsofJanuary14,843(115)4,7284,2583,787Changes in gross receivables(137)(137)695394Changes in provision for impairment(15)(15)(19)6Changes in the scope of consolidation85

311、(3)83 2742Translation adjustment35(1)34(217)49Reclassifications29 9 38(17)(20)AsofDecember314,856(125)4,7304,7284,258The trade accounts receivable balance is comprised essentially of receivables from wholesalers or agents,who are limited in number and with whom the Group maintains longterm relations

312、hips.As of December 31,2024,the breakdown of the nominal amount of trade accounts receivable and of provisions for impairment by age was as follows:(EUR millions)NominalamountofreceivablesImpairmentNetamountofreceivablesNot due:Less than 3 months4,071(59)4,012 More than 3 months120(9)1104,191(69)4,1

313、22Overdue:Less than 3 months502(8)494 More than 3 months163(49)114665(57)608Total4,856(125)4,730The present value of trade accounts receivable is identical to their carrying amount.Consolidated financial statements as of December 31,202433Consolidated fnancial statementsNotes to the consolidated fna

314、ncial statementsNote 13.Other current assets(EUR millions)Dec.31,2024Dec.31,2023Dec.31,2022Current available for sale financial assets(a)4,013 3,5573,614Derivatives(b)319 543462Tax accounts receivable,excluding income taxes2,029 1,8331,602Advances and payments on account to vendors281 326386Prepaid

315、expenses839 681613Other receivables1,031 850875Total8,5127,7907,550(a)See Note 14.(b)See Note 23.Note 14.Current available for sale financial assetsThe carrying amount of current available for sale financial assets changed as follows during the fiscal years presented:(EUR millions)202420232022AsofJa

316、nuary13,5573,6142,544Acquisitions1 171,525Disposals at net realized value(161)(360)Changes in market value(a)455 87(95)Changes in the scope of consolidation Translation adjustment Reclassifications AsofDecember314,0133,5573,614Of which:Historical cost of current available for sale financial assets3,

317、117 3,1473,275(a)Recognized within“Net financial income/(expense)”(see Note 27).Note 15.Cash and change in cash15.1 Cash and cash equivalents(EUR millions)Dec.31,2024Dec.31,2023Dec.31,2022Term deposits(less than 3 months)2,200 1,3961,088SICAV and FCP funds566 283287Ordinary bank accounts6,994 6,2416

318、,213Cashandcashequivalentsperbalancesheet9,7607,9217,588The reconciliation between cash and cash equivalents as shown in the balance sheet and net cash and cash equivalents appearing in the cash flow statement is as follows:(EUR millions)Dec.31,2024Dec.31,2023Dec.31,2022Cash and cash equivalents9,76

319、0 7,9217,588Bank overdrafts(361)(255)(200)Netcashandcashequivalentspercashflowstatement9,3997,6667,38834Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements15.2 Change in working capitalThe change in working capital bre

320、aks down as follows for the fiscal years presented:(EUR millions)Notes 202420232022Change in inventories and work in progress11(1,114)(4,230)(4,169)Change in trade accounts receivable12 137(695)(394)Change in customer deposits and balance of amounts owed to customers22.1 106 246Change in trade accou

321、nts payable22.1(664)4341,532Change in other receivables and payables (389)(107)8Changeinworkingcapital(a)(1,925)(4,577)(3,019)(a)Increase/(Decrease)in cash and cash equivalents.15.3 Operating investmentsOperating investments comprise the following elements for the fiscal years presented:(EUR million

322、s)Notes 202420232022Purchase of intangible assets3(837)(1,000)(685)Purchase of property,plant and equipment6(4,715)(6,807)(4,398)Change in accounts payable related to fixed asset purchases 29 324161Initial direct costs7 4(53)(27)Netcashusedinpurchasesoffixedassets (5,519)(7,536)(4,948)Net cash from

323、fixed asset disposals 21 13673Guarantee deposits paid and other cash flows related to operating investments (33)(78)(94)Operatinginvestments(a)(5,531)(7,478)(4,969)(a)Increase/(Decrease)in cash and cash equivalents.15.4 Interim and final dividends paid and other equityrelated transactionsInterim and

324、 final dividends paid comprise the following elements for the fiscal years presented:(EUR millions)202420232022Interim and final dividends paid by Christian Dior SE(2,345)(2,255)(2,165)Interim and final dividends paid to minority interests in consolidated subsidiaries(4,342)(4,172)(3,944)Tax paid re

325、lated to interim and final dividends paid(a)(294)(422)(356)Interimandfinaldividendspaid(6,982)(6,849)(6,465)(a)Tax paid related to interim and final dividends paid is exclusively related to intraGroup dividends;see Note 28.Other equityrelated transactions comprise the following elements for the fisc

326、al years presented:(EUR millions)Notes 202420232022Capital increases of subsidiaries subscribed by minority interests 35 1512Acquisition and disposal of Christian Dior shares16.3 Otherequityrelatedtransactions 351512Consolidated financial statements as of December 31,202435Consolidated fnancial stat

327、ementsNotes to the consolidated fnancial statementsNote 16.Equity16.1 Equity(EUR millions)Notes Dec.31,2024Dec.31,2023Dec.31,2022Share capital16.2 361 361361Share premium account 194 194194Christian Dior shares16.3(17)(17)(17)Cumulative translation adjustment16.5 1,223 6521,087Revaluation reserves 5

328、28 594547Other reserves 16,797 13,43811,068Net profit,Group share 5,208 6,3045,797Equity,Groupshare 24,29421,52719,03816.2 Share capitalAs of December 31,2024,the share capital consisted of 180,507,516 fully paidup shares(180,507,516 as of both December 31,2023 and December 31,2022),with a par value

329、 of 2 euros per share,including 176,474,116 shares with double voting rights(176,489,760 as of December 31,2023 and 130,155,394 as of December 31,2022).Double voting rights are attached to registered shares held for more than three years.16.3 Christian Dior sharesThe portfolio of Christian Dior shar

330、es is allocated as follows:(number of shares or EUR millions)December31,2024Dec.31,2023Dec.31,2022NumberAmountAmountAmountCoverage of share purchase option plans Coverage of bonus share and performance share plans Coverage of future plans96,936 17 1717ChristianDiorshares96,936171717No portfolio move

331、ments of Christian Dior shares took place during the fiscal year ended December 31,2024.36Consolidated financial statements as of December 31,2024Consolidated fnancial statementsNotes to the consolidated fnancial statements16.4 Dividends paid by the parent company,Christian Dior SEIn accordance with

332、 French regulations,dividends are taken from the profit for the fiscal year and the distributable reserves of the parent company,after deducting applicable withholding tax and the cost of treasury shares.As of December 31,2024,the distributable amount was 4,291 million euros;after taking into accoun

333、t the proposed dividend distribution in respect of the 2024 fiscal year,it was 2,937 million euros.(EUR millions)202420232022Interim dividend for the current fiscal year (2024:5.50 euros;2023:5.50 euros;2022:5.00 euros)992 992902Impact of treasury shares Grossamountdisbursedforthefiscalyear992992902Final dividend for the previous fiscal year (2023:7.50 euros;2022:7.00 euros;2021:7.00 euros)1,354 1