TRANSLATION OF THE FRENCH “RAPPORT ANNUEL” AS OF …

1 TRANSLATION OF THE FRENCH RAPPORT ANNUEL AS OF DECEMBER 31, 2017 Chairman s message 2 History 5 Executive and Supervisory Bodies Statutory Auditors as of December 31, 2017 6 Financial highlights 7 Business description and Spirits and Leather Goods and Cosmetics and Jewelry Retailing activities 24 Management report of the Board of Directors 25 Christian Dior Group 25 Management of non-financial and financial risks 47 Christian Dior parent company 73 Human resources 89 Environment

2 111 Board of Directors report on corporate governance governance of company officers of transactions in Christian Dior securities during the fiscal year by senior executives and related persons 156 Annexes 157 Board of Directors report on the draft resolutions of the financial statements for the fiscal year and of related- party agreements of the Board of Directors of senior executive officers proposed to the Shareholders Meeting to the Bylaws 178 Financial statements 179 Consolidated financial statements 179 Parent company financial statements.

3 Christian Dior 263 Resolutions for the approval of the Combined Shareholders Meeting of April 12, 2018 resolutions resolutions Auditors reports 300 Other information regarding the parent company regarding the capital of share capital and voting rights for financial instruments issued by Christian Dior 314 Statement by the company officer responsible for the Annual Report 319 Combined Shareholders Meeting April 12, 2018 This document is a free TRANSLATION into English of the original FRENCH Rapport annuel , hereafter referred to as the Annual Report . It is not a binding document. In the event of a conflict in interpretation, reference should be made to the FRENCH version, which is the authentic is a provisional TRANSLATION , which may be modified before final Report as of December 31, 2017 Annual Report as of December 31, 2017 Another record year2017 was, in all respects, another very successful year for the Christian Dior group: profitable, abundantly innovative, and full ofresponsible s success is the result of a long- term global visionBoosted by organic growth of 12%, our revenue comfortably exceeded the 40 billion- euro mark, while our profit from recurringoperations, which grew 15%, surpassed 8 billion results stem from the balance of our businesses and geographic footprint around the world: Europe, the United States and Asiaexperienced growth this year.

4 They are also driven by the dynamism of our Maisons, which, because they plan their development overthe very long term, have had a particularly busy year. They reflect two of the Group s hallmarks: yet again, our Maisons have beenfar- sighted and have sought perfection in their achievements this is at home at our MaisonsOur Group currently comprises over 70 Maisons, which are all especially the largest, of course very busy hubs of creativity and engagement. Louis Vuitton continues to demonstrate remarkable creative momentum. As a result of the popularity of its iconicproducts and the models designed in collaboration with Jeff Koons and Supreme, it has enjoyed outstanding success this year, whilestrictly controlling the quality and exclusivity of its Dior, the world s most famous FRENCH couture brand, celebrated its seventieth anniversary at the Mus e des Arts D coratifswith the Christian Dior: Designer of Dreamsexhibition, which was an extraordinary success, with more than 700,000 visitors in six Report as of December 31, 20172 Chairman s message3 Annual Report as of December 31, 2017 The principal Maisons in our Wines and Spirits business group enjoyed growth, even though supply constraints slowed growth in thesecond half for our cognacs.

5 In premium champagnes, the Dom P rignon P2 cuv es are unmatched worldwide because of their verylong cellar maturation and are increasingly , Bvlgari and our prestigious perfume houses, notably Parfums Christian Dior, continued to perform very synergies facilitated by our Group include the Fenty Beauty range: Rihanna created this brand and its products have beendeveloped by Kendo, our beauty incubator. They have enjoyed exceptional worldwide success, with sales driven by Sephora spowerful, far- reaching physical and digital retail would also like to reserve a particular mention for C line, which welcomed the extremely talented Hedi Slimane in 2018 and is aboutto venture into unexplored businesses and acquisitions in 2017 The integration process for Rimowa, which was acquired in January 2017, is virtually complete. These German suitcases are enduringfavorites for seasoned travelers because of their unique design and the unmatched quality of their manufacturing process.

6 They willbenefit from the development of air travel in coming Kurkdjian, a hugely talented master- perfumer, has joined us along with his Maison. We also acquired Colgin Cellars, a gem fromNapa Valley, which rounds out our portfolio of premium vineyards. Likewise, the purchase of Woodinville expands our range of investment in productionTo satisfy growing demand for our products in all our business groups and continually improve production methods, our Maisonshave increased their production capacities. After opening a new manufacturing workshop in Auvergne, central France, Louis Vuittonplans to open several more production facilities in France in 2018. Bvlgari has built itself a state- of- the- art manufacturing facility inValenza, , the inauguration of the Pont Neuf bottling plant, near Cognac, last October, is proof of both Hennessy s growth ambitionsand its confidence in the potential of the cognac vineyards. These investments also reflect our Maisons drive to improve the quality of our products and ensure that they are the most perfect expression of the terroirs from which they several years now, they have been supported by equally significant investment in the transmission of our Maisons ancestralknow- how they are the custodians of this expertise and have a duty to perpetuate it.

7 Our Institut des M tiers d Excellence, now presentnot only in France and Switzerland, but also in Italy, welcomes large numbers of apprentices and offers 18 first- rate training digital activitiesThe Group already has a substantial e- commerce footprint: our online sales, which represent several billion euros, grew 30% in sales of e- commerce pioneer Sephora, for example, are surging all over the world and Sephora is the leading online specialtybeauty retailer in many countries, including the United States. Similarly, Louis Vuitton already boasts a remarkable online business,while preserving the brand s products are themselves increasingly connected: watchmaker TAG Heuer is capitalizing on the huge success of the connectedwatch in 2016 to accentuate this strategic focus and Louis Vuitton launched its own connected watch in prolong this innovation drive and further reinforce the presence and role of digital professionals among its ranks, the Grouplaunched a series of initiatives in 2017 designed to offer customers especially the young generations with high expectations in thisarea a premium digital service.

8 24 S vres, the digital platform of department store Le Bon March , immediately established itself as one of the best online shopping services, thanks to the quality of its product selection and its online portal. Similarly, Clos19, the digital ambassador of the art of hosting la fran aise, offers our wines and spirits, as well as an array of tasting experiences tocustomers in the United Kingdom, Germany and the United , the Group is investing in direct collaborations with startups at every level of the Group, notably thanks to the Vivatech tradefair co- organized by our subsidiary Les Echos, which has rapidly become a world class Report as of December 31, 20174 Our commitmentsOur philanthropic initiatives have enjoyed unprecedented success, since the Fondation Louis Vuitton s exhibition of the prestigiousShchukin collection, united for the first time since the October Revolution, attracted record attendance with more than million September, the Group celebrated 25 years of commitment to the environment by reinforcing its environmental performance , LVMH has made a firm commitment to fashion models by drawing up a groundbreaking.

9 Highly exacting charter that is nowapplied by our fashion we have done on three occasions since 2011, our Group and its Maisons will welcome you for the fourth edition of its open days,Les Journ es Particuli res LVMH, which will take place next October 12, 13 and optimistic for 2018I believe that our Group is therefore very well positioned to pursue harmonious growth. We cannot predict economic conditions in 2018 exactly, even though the first quarter should not see any major breaks with prior trends. Analysis of the world smacroeconomic situation reveals both significant growth potential and substantial risk factors. We are therefore cautiously optimisticfor the year ahead. We are cautious because the current particularly buoyant economic situation with very low interest rates, abundantliquidity, generally very high asset valuations and no major economic crisis in ten years, will not last are optimistic because the allure of our exceptional products will continue to grow in the long term and because the averagestandard of living in the countries where the Group is present will continue to rise in the coming years, even if we do experienceeconomic jolts in the short am confident in the ability of our designers and 145,000 employees worldwide to invent the products of tomorrow and ensure that they are of unrivalled quality.

10 The Group knows how to project itself into the future and invest for the long term. At every level,we are all entrepreneurs, driven by the aim of strengthening the Group s lead in all its markets over the next ten ARNAULTC hairman of the Board of Directors14th century1365 Clos des Lambrays16th century1593Ch teau d Yquem18th century1729 Ruinart1743Mo t & Chandon1765 Hennessy1772 Veuve Clicquot1780 Chaumet19th century1815 Ardbeg1817 Cova1828 Guerlain1832Ch teau Cheval Blanc1843 KrugGlenmorangie1846 Loewe1849 Royal Van Lent1852Le Bon March 1854 Louis Vuitton1858 Mercier1860 TAG HeuerJardin d Acclimatation1865 Zenith1870La Samaritaine1884 Bvlgari1895 Berluti1898 Rimowa20th century1908 Les Echos1916 Acqua di Parma1923La Grande picerie de Paris1924 Loro Piana1925 Fendi1936 Dom P rignonFred1944Le Parisien- Aujourd hui en France1945C line1946 Christian Dior1947 Parfums Christian DiorEmilio Pucci1952 GivenchyConnaissance des Arts1957 Parfums Givenchy1958 Starboard Cruise Services1959 Chandon1960 DFS1969 Sephora1970 KenzoCape Mentelle1972 Parfums Loewe1974 Investir- Le Journal des Finances1975 Ole