HERMÈS - 2019 Universal Registration Document

1

OVERVIEW OF THE GROUP

ACTIVITY BY MÉTIER

1.5 AFR

Changes

2019 Revenue in millions of euros

2018 Revenue in millions of euros

At current exchange rates

At constant exchange rates

2019 mix in%

2018 mix in%

Leather Goods & Saddlery Ready-to-wear and Accessories

3,414 1,574

50% 23%

2,976 1,310

50% 22%

14.7% 20.1% 10.3% 23.6%

11.3% 17.1%

Silk and Textiles

592 525 326 193 258

9% 7% 5% 3% 3%

537 425 312 169 238

9% 7% 5% 3% 4%

7.5%

Other Hermès sectors

20.4%

Perfumes Watches

4.6%

4.1%

14.7%

11.6%

Other products

8.5%

7.0%

CONSOLIDATED REVENUE

6,883

100.0%

5,966

100%

15.4%

12.4%

LEATHER GOODS & SADDLERY 1.5.1 Leather Goods and Saddlery, Hermès’ original métier , encompasses bags for men and women, clutches, briefcases, luggage, small leather goods, diaries and writing objects, saddles, bridles and a full range of equestrian products and clothing. The Leather Goods and Saddlery métier represents 50% of consolidated sales. In 2019, it generated €3,414 million in revenue. Saddlery and leather goods articles are born of an alchemy of authentic materials, selected according to rigorous standards, and the skilled hands of the saddler-leather workers, who apply traditional know-how passed down from generation to generation. The time spent by the craftsmen each day patiently crafting and fashioning the raw leather gives these unique objects a distinctive additional measure of soul. Today, they are made by over 3,800 saddler-leather workers in 17 production units and workshops spread over Paris, Pantin and various regions across France. To meet an ever increasing demand, Hermès inaugurated a new workshop in May located in Fitilieu (Isère), to which is attached a training school in saddler-leather goods métiers . The construction of two other leather workshops in Gironde and Seine-et-Marne has started and will be completed in 2020. Hermès also opened a temporary workshop in Louviers (Eure) in September, as a first step to the construction of a new leather workshop scheduled for 2021. These openings were prepared in close collaboration with the various local stakeholders and regional administrative and economic development bodies. In this way, Hermès reaffirms its commitment to regions with a strong manufacturing expertise, and its will to provide quality jobs. The House is also continuing to perfect the craftsmen skills and expertise through a range of training and professional qualification programmes. These programmes are delivered within the dedicated in-house Hermès academy, and through a range of partnerships with training structures in the regions concerned.

BAGS AND LUGGAGE

1.5.1.1

Inspired by the year’s theme “In the pursuit of dreams !”, the bags and luggage collections took creativity to new heights, showcasing the raw materials, savoir-faire and functionality that are synonymous with the House. Women’s bags collections, inspired by everyday life and new uses, have invented new creative skills and enriched existing lines with new sizes and functionalities. A number of new styles emerged revolving around clasps, and silversmith savoir-faire . The Hermès Clic-H bag, with its clutch bag style, and pure and slender lines, owes its look to a leather-covered metal strip where the clasp is set and a clever system for fastening its detachable and adjustable shoulder strap. The Sacabar bag is a blend of casual good looks and structured construction: its clean lines and trapezoid shape contrast with the roundness of its leather-covered hinge, from which the flap opens, and with the design of its stick clasp, which operates thanks to an invisible fitting. A pair of metal sticks, slipped into leather loops, unveils the two faces of the Hermès Twins bag, a model inspired from the archives. It consists of two pouches that can be worn together or separately, carried in the hand, over the shoulder or at the waist, and can be mixed and matched with different materials and colours, for day time or evening use. The Hermès Transat bag, asymmetric in shape and inspired by a ship’s bow as it plunges us into the world of transatlantic cruises, offers an elegantly styled zipped bag: when open, this new “working bag” becomes a tote bag with a twist. The House’s equestrian roots inspired two new identities: the Bridado bag, easy to use, worn either over the shoulder or backpack style with a system of hooks and leather straps inspired by the equestrian world. It is adorned by a hot stamp logo in keeping with the world of saddlery. The Saut Hermès bag, a day-to-day pouch, is distinguished by its two-tone rod, recalling jumping poles. The flap pivots front and back on this rod offering two different ways of carrying it.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

20