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Christian Dior SE

Earnings Release Jan 25, 2024

1200_iss_2024-01-25_ec7daa5d-d5f3-45f2-83b8-6049bb51c3e3.pdf

Earnings Release

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30 AVENUE MONTAIGNE PARIS

75008

2023: New record year for Christian Dior group

. Revenue: €86.2 billion

  • . Profit from recurring operations: €22.8 billion
  • . Growth higher in the fourth quarter than in the third quarter
  • . Major economic and social impact in France and around the world

Paris, January 25th , 2024

Christian Dior group recorded revenue of €86.2 billion in 2023, equating to organic growth of 13% with respect to 2022. All business groups reported strong organic revenue growth, with the exception of Wines & Spirits, which was faced with a high basis of comparison and high inventory levels. Europe, Japan and the rest of Asia achieved double-digit organic growth. In the fourth quarter, organic revenue growth came to 10%.

Profit from recurring operations stood at €22.8 billion for 2023, up 8%. The current operating margin remained stable with respect to 2022. Group share of net profit amounted to €6.3 billion, up 9%.

Highlights of 2023 include:

Another record year despite a disrupted environment

  • Strong organic revenue growth across all business groups except Wines & Spirits, and market share gains worldwide.
  • Double-digit organic revenue growth in Europe, Japan and the rest of Asia.
  • Negative currency impact in the second half of the year.
  • Growth in champagne driven by the value strategy and a transitional year for cognac after two years of strong growth.
  • Remarkable performance by the Fashion & Leather Goods business group, in particular Louis Vuitton, Christian Dior Couture, Celine, Fendi, Loro Piana, Loewe and Marc Jacobs, which gained market share worldwide and achieved record levels of revenue and profits.
  • Particularly strong momentum in fragrances and makeup across all regions, and ongoing global success of Dior's Sauvage, once again the world's best-selling fragrance in 2023.
  • Robust growth in jewelry and powerful creative momentum for all the Watches & Jewelry Maisons, in particular Tiffany, Bulgari and TAG Heuer.
  • Exceptional performance by Sephora, which confirmed its position as world leader in beauty retail.

2023 targets met under the LIFE 360 environmental program

  • New circular services launched at most Group Maisons; research and innovation program focused on new materials; environmental training center (LIFE Academy).
  • Tangible progress made towards targets for 2026 and 2030: 3.1 million hectares of flora and fauna habitat protected as of year-end 2023 (target: 5 million hectares by 2030); 63% improvement (up 16 points) in the proportion of renewable and low-carbon energy used in the Group's energy mix; 28% decrease in energy-related CO2 emissions with respect to 2019.
  • Launch of LIFE 360 Business Partners, a groundbreaking plan to assist suppliers and partners to accelerate the reduction of Scope 3 impacts, particularly in relation to raw materials and transport.

Major economic and social impact of the Group in France and around the world

  • More than 213,000 employees worldwide as of year-end 2023 (including nearly 40,000 employees in France).
  • France's largest private-sector recruiter.
  • Preserving and passing on skills and expertise in more than 280 professions of excellence in design, craftsmanship and customer experience, with over 2,700 apprentices trained by LVMH's IME (Institut des Métiers d'Excellence) program since its launch in 2014, more than 8,000 employees worldwide hired in these professions in 2023, and more than 3,500 positions to be filled in these professions at the Group's Maisons in France by year-end 2024.
  • Over €1 billion invested in France every year.
  • 118 production facilities and craft workshops in France, 26 in Italy.
  • More than €6 billion in corporate tax paid worldwide in 2023, around half of which in France.
  • Support for over 950 nonprofits and charitable foundations in 2023, with more than 65,000 Group employees taking part in a community involvement partnership.
In millions of euros 2022 2023 Change
2023/2022
Revenue 79
184
86
153
+9%
Profit from recurring operations 21
050
22
796
+8%
Net profit, Group share 5
797
6 304 +9%
Operating free cash flow 10
110
8
101
-20%
Net financial debt 8 867 10
548
+19%
Total equity 54
314
60
293
+11%

Financial highlights

Revenue by business group changed as follows:

In millions of euros 2022 2023 Change
2023/2022
Reported Organic*
Wines & Spirits 7
099
6
602
-7% -4%
Fashion & Leather Goods 38
648
42
169
+9% +14%
Perfumes & Cosmetics 7
722
8
271
+7% +11%
Watches & Jewelry 10
581
10
902
+3% +7%
Selective Retailing 14
852
17
885
+20% +25%
Other activities & eliminations 282 324 - -
Total 79
184
86
153
+9% +13%

* On a constant consolidation scope and currency basis. For the Group, the impact of changes in scope was nil; the impact of exchange rate fluctuations was -4%.

Profit
from
recurring operations
by business group changed as follows:
---------------------------------------- -- --------------------------------------- --
In millions of euros 2022 2023 Change
2023/2022
Wines & Spirits 2
155
2
109
-2%
Fashion & Leather Goods 15
709
16
836
+7%
Perfumes & Cosmetics 660 713 +8%
Watches & Jewelry 2
017
2
162
+7%
Selective Retailing 788 1
391
+76%
Other activities & eliminations (279) (415) -
Total 21
050
22
796
+8%

Wines & Spirits: Contrasting trends across different markets following an exceptional year in 2022

The Wines & Spirits business group saw a revenue decline (-4% organic) in 2023, faced with a particularly high basis of comparison. Profit from recurring operations was down 2%. Driven by its value strategy, the champagne business posted growth, with a good performance in Europe and Japan offsetting the effects of an unfavorable macroeconomic environment in the United States. Hennessy cognac was affected by a mixed recovery in China and by the post-Covid normalization of demand in the United States, while efforts continued to maintain optimal inventory levels among retailers. In Provence rosé wines, LVMH acquired the prestigious Minuty estate, the second-largest market player after Château d'Esclans, which also continued its international development.

Fashion & Leather Goods: Exceptional performances by Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe, Rimowa and Marc Jacobs

The Fashion & Leather Goods business group achieved organic revenue growth of 14% in 2023. Profit from recurring operations was up 7%. Louis Vuitton had an excellent year, once again buoyed by the creativity and quality of its products, and by its strong ties to art and culture. Many new designs were unveiled, including the GO-14 leather goods line and the new Tambour watch, a fusion of Swiss watchmaking expertise and Louis Vuitton's Parisian elegance. Nicolas Ghesquière, who celebrated his 10th anniversary designing the Maison's Women's collections and renewed his contract for a further five years, continued to captivate audiences with his boundless creativity. Set on the stage of the Pont-Neuf bridge in Paris in July, the first fashion show of the new Creative Director of Menswear Pharrell Williams sparked enthusiasm worldwide. Christian Dior Couture continued to deliver remarkable growth in all its product lines. Giving center stage to excellent craftsmanship, fashion shows curated by Maria Grazia Chiuri and Kim Jones reinvented the magic of the Dior name, season after season. Victoire de Castellane's creative verve was once again on full display in her new high jewelry collection, Les Jardins de la Couture. The year ended on a high note, with a spectacular Dior display at Saks Fifth Avenue in New York, whose facade was bedecked with a captivating "Carousel of Dreams" and 24 enchanting window displays. Celine continued to enhance its desirability, driven by the success of Hedi Slimane's designs and fashion shows. Loewe's robust growth continued to be driven by J.W. Anderson's bold, creative leadership and by the success of the latest new leather goods designs. Loro Piana confirmed its superb momentum and its leadership position in ultra-premium, sophisticated luxury. Fendi expanded its retail network. Rimowa, Marc Jacobs and Berluti all turned in an excellent performance.

Perfumes & Cosmetics: Excellent momentum in fragrances and makeup

The Perfumes & Cosmetics business group posted organic revenue growth of 11% in 2023 thanks to its highly selective retail policy and dynamic innovation strategy, backed by the scientific excellence of LVMH's research center. Profit from recurring operations was up 8%. Parfums Christian Dior achieved a remarkable performance, extending its lead in its key markets. Fragrances were once again buoyed by the success of iconic scents Sauvage, Miss Dior and J'adore, which was enriched with Francis Kurkdjian's latest creation, L'Or de J'adore. Makeup (with Dior Addict) and skincare (with Prestige and L'Or de Vie) also contributed to the Maison's growth. Guerlain continued to grow, driven by the popularity of its Aqua Allegoria line and its L'Art et la Matière high-end fragrance collection, as well as the excellent response to its Terracotta Le Teint makeup. Parfums Givenchy benefited from its fragrances' ongoing success. Benefit was buoyed by its The Porefessional skincare line, while Fenty Beauty posted robust growth, driven in particular by one of its latest innovations in mascara.

Watches & Jewelry: Rapid growth in jewelry and further innovation in watches

The Watches & Jewelry business group recorded organic revenue growth of 7% in 2023. Profit from recurring operations was up 7%. Tiffany & Co. embarked on a new chapter in its history with the reopening of "The Landmark" in New York. Substantially raising the bar for jewelry retail worldwide, the spectacular transformation of this legendary flagship store was exceptionally well received. The new Lock collection, which continued to be rolled out worldwide, was a huge success, and Blue Book: Out of the Blue – the new high jewelry collection designed by Creative Director for Jewelry Nathalie Verdeille – was unveiled. Bulgari posted strong growth, driven by high jewelry, in particular the success of the Mediterranea collection. Its iconic Serpenti line, which celebrated its 75th anniversary, turned in a remarkable performance, both in jewelry and in women's watches, taking home awards at the Geneva Watchmaking Grand Prix. Chaumet continued to channel its powerful creativity through a new high jewelry line and held its A Golden Age: 1965-1985 retrospective exhibition in the historic salons of its 12 place Vendôme location. Fred inaugurated its Fred: Jewelry Designer exhibition in South Korea, where it was a major success. In watchmaking, highlights of the year included TAG Heuer's achievement of record-breaking revenue and its celebration of the 60th anniversary of its Carrera collection, along with Hublot's appointment as the official timekeeper for the FIFA Women's World Cup in Australia.

Selective Retailing: Exceptional performance by Sephora; DFS growth supported by the recovery in international travel

The Selective Retailing business group posted organic revenue growth of 25% in 2023. Profit from recurring operations was up 76%. Sephora achieved another historic year, both in terms of sales and profit, continuing to gain market share through its distinctive, innovative range of products and services. Momentum was particularly strong in North America, Europe and the Middle East. The expansion of its store network continued, with the highly successful opening of its first two stores in the United Kingdom and the thriving collaboration with Kohl's in the United States. Another major event during the year was the reopening of its Champs-Élysées flagship store in Paris, whose renovation reflected Sephora's sustainability strategy, aimed at reducing the energy consumption of its sales floor area by 50%. DFS benefited from the gradual recovery in international travel and, in particular, from the return of tourists to flagship destinations Hong Kong and Macao. The Maison announced its plans to open a new Galleria on the island of Hainan in China by 2026. Le Bon Marché, which is growing steadily, continued to develop innovative concepts and benefit from a loyal French customer base as well as the return of international travelers.

Confidence for 2024

While the geopolitical and macroeconomic environment remains uncertain, the Christian Dior group is confident in its ability to continue to grow in 2024, in the highly distinctive quality and creativity that its products offer its customers, as well as in the professionalism of its management, to stand out and gain market share. The Group will pursue its brand development-focused strategy, underpinned by continued innovation and investment as well as an extremely exacting quest for desirability and quality in its products and their highly selective distribution.

Driven by the agility of its teams, their entrepreneurial spirit and its well-diversified presence across the geographic areas in which its customers are located, the Group therefore enters 2024 with confidence and once again sets an objective of reinforcing its global leadership position in luxury goods.

Dividend for 2023

At the Shareholders' Meeting on April 18, 2024, Christian Dior will propose a dividend of €13 per share. An interim dividend of €5.50 per share was paid on December 6, 2023. The final dividend of €7.50 per share will be paid on April 25, 2024.

The Board of Directors met on January 25 to approve the financial statements for fiscal year 2023. Audit procedures have been carried out and the audit report is being issued.

This press release is available at www.dior-finance.com.

"This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in Christian Dior's Annual report which is available on the website (www.dior-finance.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect Company's views as of the date of this document, and Christian Dior does not undertake to revise or update these forward looking statements. The forward looking statements should be used with caution and circumspection and in no event can the Company and its Management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in Christian Dior or an invitation or inducement to engage in any other investment activities."

APPENDIX

Financial statements for 2023 are included in the PDF version of the press release.

Revenue by business group and by quarter

Full-year 2023 Wines &
Spirits
Fashion &
Leather
Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other activities
& eliminations
Total
First quarter 1 694 10 728 2 115 2 589 3 961 (52) 21 035
Second quarter 1 486 10 434 1 913 2 839 4 394 140 21 206
First half 3 181 21 162 4 028 5 427 8 355 87 42 240
Third quarter 1 509 9 750 1 993 2 524 4 076 113 19 964
First nine months 4 689 30 912 6 021 7 951 12 431 201 62 205
Fourth quarter 1 912 11 257 2 250 2 951 5 454 124 23 948
Total 2023 6 602 42 169 8 271 10 902 17 885 324 86 153

Revenue for 2023 (in millions of euros)

Revenue for 2023 (organic change versus same period in 2022)

Full-year 2023 Wines &
Spirits
Fashion &
Leather
Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other activities
& eliminations
Total
First quarter +3% +18% +10% +11% +28% - +17%
Second quarter -8% +21% +16% +14% +25% - +17%
First half -3% +20% +13% +13% +26% - +17%
Third quarter -14% +9% +9% +3% +26% - +9%
First nine months -7% +16% +12% +9% +26% - +14%
Fourth quarter +4% +9% +10% +3% +21% - +10%
Total 2023 -4% +14% +11% +7% +25% - +13%

Revenue for 2022 (in millions of euros)

Full-year 2022 Wines &
Spirits
Fashion &
Leather
Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other activities
& eliminations
Total
First quarter 1 638 9 123 1 905 2 338 3 040 (41) 18 003
Second quarter 1 689 9 013 1 714 2 570 3 591 149 18 726
First half 3 327 18 136 3 618 4 909 6 630 109 36 729
Third quarter 1 899 9 687 1 959 2 666 3 465 79 19 755
First nine months 5 226 27 823 5 577 7 575 10 095 189 56 485
Fourth quarter 1 873 10 825 2 145 3 006 4 757 93 22 699
Total 2022 7 099 38 648 7 722 10 581 14 852 282 79 184

Alternative performance measures

For the purposes of its financial communications, in addition to the accounting aggregates defined by IAS/IFRS, Christian Dior uses alternative performance measures established in accordance with AMF position DOC-2015-12.

The table below lists these performance measures and the reference to their definition and their reconciliation with the aggregates defined by IAS/IFRS, in the published documents.

Performance measures Reference to published documents
Operating free cash flow AR (condensed consolidated financial statements, consolidated cash flow statement)
Net financial debt AR (Notes 1.22 and 19 to the condensed consolidated financial statements)
Gearing AR (Part 7, "Comments on the consolidated balance sheet")
Organic growth AR (Part 1, "Comments on the consolidated income statement")

AR: Annual Report as of December 31, 2023

This document is a free translation into English of the original French financial release dated January 25 th, 2024. It is not a binding document.

In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

1. Consolidated income statement

(EUR millions, except for earnings per share) 2023 2022 2021
Revenue
Cost of sales
86,153
(26,876)
79,184
(24,988)
64,215
(20,355)
Gross margin 59,277 54,196 43,860
Marketing and selling expenses
General and administrative expenses
Income/(loss) from joint ventures and associates
(30,767)
(5,721)
7
(28,150)
(5,033)
37
(22,306)
(4,427)
13
Profit from recurring operations 22,796 21,050 17,139
Other operating income and expenses (242) (54) 4
Operating profit 22,554 20,996 17,143
Cost of net financial debt
Interest on lease liabilities
Other financial income and expenses
(363)
(393)
(170)
(15)
(254)
(632)
40
(242)
254
Net financial income/(expense) (926) (901) 52
Income taxes (5,707) (5,393) (4,531)
Net profit before minority interests 15,921 14,702 12,664
Minority interests 9,617 8,905 7,718
Net profit, Group share 6,304 5,797 4,946
Basic Group share of net earnings per share (EUR)
Number of shares on which the calculation is based
34.94
180,410,580
32.13
180,410,580
27.41
180,410,580
Diluted Group share of net earnings per share (EUR)
Number of shares on which the calculation is based
34.93
180,410,580
32.11
180,410,580
27.40
180,410,580

2. Consolidated statement of comprehensive gains and losses

(EUR millions) 2023 2022 2021
Net profit before minority interests 15,921 14,702 12,664
Translation adjustments (1,083) 1,311 2,178
Amounts transferred to income statement (21) (32) (4)
Tax impact - (4) 17
(1,104) 1,275 2,191
Change in value of hedges of future foreign currency cash flows(a) 477 28 281
Amounts transferred to income statement (523) 290 (303)
Tax impact 13 (73) 127
(33) 245 105
Change in value of the ineffective portion of hedging instruments (237) (309) (375)
Amounts transferred to income statement 362 340 237
Tax impact (29) (11) 33
96 21 (105)
Gains and losses recognized in equity, transferable to income statement (1,041) 1,542 2,191
Change in value of vineyard land 53 (72) 52
Amounts transferred to consolidated reserves - - -
Tax impact (11) 18 (12)
41 (53) 40
Employee benefit obligations: change in value resulting from actuarial gains and losses 30 301 251
Tax impact (7) (77) (58)
23 223 193
Gains and losses recognized in equity, not transferable to income statement 64 170 233
Gains and losses recognized in equity (977) 1,712 2,423
Comprehensive income 14,944 16,414 15,087
Minority interests 9,036 9,941 9,180
Comprehensive income, Group share 5,908 6,473 5,907

(a) In 2021, this amount includes 477 million euros relating to foreign exchange hedges implemented in anticipation of the acquisition of Tiffany shares and included in the value of the investment.

3. Consolidated balance sheet

Assets

(EUR millions) Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2021
Brands and other intangible assets 24,724 24,565 23,684
Goodwill 22,492 23,250 24,371
Property, plant and equipment 26,697 22,414 19,543
Right-of-use assets 15,673 14,609 13,699
Investments in joint ventures and associates 991 1,066 1,084
Non-current available for sale financial assets 1,363 1,109 1,363
Other non-current assets 1,017 1,187 1,054
Deferred tax 3,992 3,661 3,156
Non‑current assets 96,950 91,861 87,954
Inventories and work in progress 22,952 20,319 16,549
Trade accounts receivable 4,728 4,258 3,787
Income taxes 533 375 338
Other current assets 7,790 7,550 5,606
Cash and cash equivalents 7,921 7,588 8,122
Current assets 43,923 40,090 34,402
Total assets 140,873 131,951 122,356

Liabilities and equity

(EUR millions) Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2021
Equity, Group share 21,527 19,038 15,372
Minority interests 38,766 35,276 30,995
Equity 60,293 54,314 46,367
Long-term borrowings 11,227 10,380 12,165
Non-current lease liabilities 13,810 12,776 11,887
Non-current provisions and other liabilities 3,844 3,866 3,945
Deferred tax 6,616 6,553 6,302
Purchase commitments for minority interests' shares 11,919 12,489 13,677
Non‑current liabilities 47,416 46,064 47,976
Short-term borrowings 10,696 9,375 8,091
Current lease liabilities 2,728 2,632 2,387
Trade accounts payable 9,049 8,788 7,086
Income taxes 1,150 1,224 1,275
Current provisions and other liabilities 9,541 9,554 9,174
Current liabilities 33,164 31,573 28,013
Total liabilities and equity 140,873 131,951 122,356

4. Consolidated statement of changes in equity

(EUR millions) Number
of shares
Share
capital
Share
premium
account
Christian
Dior
treasury
shares
Cumulative
translation
adjustment
Revaluation reserves Net
profit
Total equity
Available
for sale
financial
assets
Hedges
of future
foreign
currency
cash flows
and cost
of hedging
Vineyard
land
Employee
benefit
commitments
and
other
reserves
Group
share
Minority
interests
Total
As of Dec. 31, 2020 180,507,516 361 194 (17) (278) - (116) 471 (86) 10,740 11,270 24,974 36,244
Gains and losses
recognized in equity 857 - 18 12 74 - 961 1,462 2,423
Net profit 4,946 4,946 7,718 12,664
Comprehensive income - - - 857 - 18 12 74 4,946 5,907 9,180 15,087
Expenses related to bonus
shares and similar plans
52 52 80 132
(Acquisition)/disposal of
Christian Dior treasury shares
- - - -
Capital increase in subsidiaries - - 12 12
Interim and final dividends paid (1,263) (1,263) (2,498) (3,761)
Changes in control
of consolidated entities
(18) (18) 373 355
Acquisition and disposal
of minority interests' shares
- - - 1 - (568) (567) (947) (1,514)
Purchase commitments
for minority interests' shares
(9) (9) (179) (188)
As of Dec. 31, 2021 180,507,516 361 194 (17) 579 - (98) 484 (12) 13,880 15,372 30,995 46,367
Gains and losses
recognized in equity
506 - 103 (18) 85 - 676 1,036 1,712
Net profit 5,797 5,797 8,905 14,702
Comprehensive income - - - 506 - 103 (18) 85 5,797 6,473 9,941 16,414
Expenses related to bonus
shares and similar plans
53 53 79 132
(Acquisition)/disposal of
Christian Dior treasury shares
- - - -
Capital increase in subsidiaries - - 28 28
Interim and final dividends paid (2,165) (2,165) (3,905) (6,070)
Changes in control
of consolidated entities
3 3 10 13
Acquisition and disposal
of minority interests' shares
2 - (1) 2 2 (536) (531) (1,068) (1,599)
Purchase commitments
for minority interests' shares
- (166) (166) (804) (970)
As of Dec. 31, 2022 180,507,516 361 194 (17) 1,087 - 4 468 75 16,866 19,038 35,276 54,314
Gains and losses
recognized in equity (441) - 24 13 8 - (396) (581) (977)
Net profit 6,304 6,304 9,617 15,921
Comprehensive income
Expenses related to bonus
- - - (441) - 24 13 8 6,304 5,908 9,036 14,944
shares and similar plans
(Acquisition)/disposal of
47 47 70 117
Christian Dior treasury shares - - - -
Capital increase in subsidiaries - - 19 19
Interim and final dividends paid (2,255) (2,255) (4,153) (6,408)
Changes in control
of consolidated entities
- - 10 10
Acquisition and disposal
of minority interests' shares
6 - - 2 - (970) (962) (1,073) (2,035)
Purchase commitments
for minority interests' shares
(249) (249) (419) (668)
As of Dec. 31, 2023 180,507,516 361 194 (17) 652 - 28 483 83 19,743 21,527 38,766 60,292

5. Consolidated cash flow statement

(EUR millions) 2023 2022 2021
I.
OPERATING ACTIVITIES
Operating profit 22,554 20,996 17,143
(Income)/loss and dividends received from joint ventures and associates 42 26 41
Net increase in depreciation, amortization and provisions 4,144 3,219 3,136
Depreciation of right-of-use assets 3,031 3,007 2,691
Other adjustments and computed expenses (260) (483) (400)
Cash from operations before changes in working capital 29,511 26,765 22,611
Cost of net financial debt: interest paid (453) (73) 68
Lease liabilities: interest paid (356) (240) (231)
Tax paid (5,729) (5,603) (4,239)
Change in working capital (4,577) (3,019) 426
Net cash from operating activities 18,397 17,830 18,636
II. INVESTING ACTIVITIES
Operating investments (7,478) (4,969) (2,664)
Purchase and proceeds from sale of consolidated investments (721) (809) (13,226)
Dividends received 5 7 10
Tax paid related to non-current available for sale financial
assets and consolidated investments - - -
Purchase and proceeds from sale of non-current available for sale financial assets (116) (149) (99)
Net cash from/(used in) investing activities (8,310) (5,920) (15,979)
III. FINANCING ACTIVITIES
Interim and final dividends paid (6,849) (6,465) (3,967)
Purchase and proceeds from sale of minority interests (2,051) (2,010) (1,117)
Other equity-related transactions 15 12 4
Proceeds from borrowings 5,990 3,774 251
Repayment of borrowings (3,968) (3,891) (6,763)
Repayment of lease liabilities (2,818) (2,751) (2,453)
Purchase and proceeds from sale of current available for sale financial assets 144 (1,165) (1,393)
Net cash from/(used in) financing activities (9,536) (12,495) (15,438)
IV. EFFECT OF EXCHANGE RATE CHANGES (273) 55 498
Net increase/(decrease) in cash and cash equivalents (I+II+III+IV) 278 (530) (12,283)
Cash and cash equivalents at beginning of period 7,388 7,918 20,201
Cash and cash equivalents at end of period 7,666 7,388 7,918
Total tax paid (6,150) (5,959) (4,465)

Alternative performance measure

The following table presents the reconciliation between "Net cash from operating activities" and "Operating free cash flow" for the fiscal years presented:

(EUR millions) 2023 2022 2021
Net cash from operating activities 18,397 17,830 18,636
Operating investments (7,478) (4,969) (2,664)
Repayment of lease liabilities (2,818) (2,751) (2,453)
Operating free cash flow (a) 8,101 10,110 13,518

(a) Under IFRS 16, fixed lease payments are treated partly as interest payments and partly as principal repayments. For its own operational management purposes, the Group treats all lease payments as components of its"Operating free cash flow", whether the lease payments made are fixed or variable. In addition, for its own operational management purposes, the Group treats operating investments as components of its "Operating free cash flow".

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