HERMÈS - 2019 Universal Registration Document

OVERVIEW OF THE GROUP ACTIVITY BY MÉTIER

PERFUMES 1.5.5 In 2019, the Perfumes segment was boosted with the launch of two new arrivals: Un Jardin sur la Lagune and Twilly d’Hermès Eau Poivrée . This métier generated revenue of €326 million, up by 4% at constant exchange rates, representing 5% of the Group’s sales. In the first half of the year, Un Jardin sur la Lagune enriched the collection of Parfums-Jardins, which celebrates the meeting between a place, the annual Hermès theme and the perfumer’s inspiration. Christine Nagel’s first Parfum-Jardin Un Jardin sur la Lagune is a journey across the water to Venice. It tells the story of the largest private garden in Venice, the Giardino Eden. This garden, first dreamed up and then created on the lagoon, cradled by the sea winds, has been captured in a woody fragrance, serene and tender, blending samphire and pittosporum, Madonna Lily and magnolia. For the launch, this garden was specially opened to the international press. In the second half of the year, the women’s fragrance collection welcomed a newcomer: Twilly d’Hermès Eau Poivrée . An olfactory tapestry entwining three materials: like the first, Twilly , revisited and refreshed by Christine Nagel to reveal the zest of the “Hermès girls”. Sharp and vibrant pink berry pepper, a heart of rose with all the freshness of adolescence and a racy and mesmerising patchouli create an irreverent and sensual peppery fragrance. A new and different link to Twilly , reinforced by its second limited edition: Charming Twilly . These two new additions complemented the vitality of the men’s collection. An entirely new marketing campaign for the key fragrance line Terre d’Hermès was launched, expressing a respectful, profound and authentic relationship between man and the earth through the new concept L’eau de la terre . With consolidated revenue of €193 million in 2019, the Watch division represents 3% of Group sales. A genuine watchmaker employing over 300 people in its manufacturing workshop in Switzerland, Hermès now makes the vast majority of its watches and components in-house. Its creativity remains French in nature and affirms its unique style, which is invigorated by the other métiers in the House. Its savoir-faire increasingly gives Hermès a singular voice in the watch industry. In 2019, for the third consecutive year, the network of Hermès stores saw strong growth in watch sales, particularly across all the Asian markets. At the same time, Hermès continued to rein in the number of “external” watch retailers, to make its distribution even more selective. In January, for its second participation in Geneva’s Salon International de la Haute Horlogerie (SIHH), Hermès once again forcefully expressed the originality of its voice within the closed circle of Haute Horlogerie by affirming its field of expression, namely a singular relationship with time, stamped with fantasy and emotion, time that Hermès invites customers to play with but never seek to control. The advertising campaign “Time, WATCHES 1.5.6

an Hermès Object” illustrates this message, with the innovative digital campaign run in the autumn to share “time differences” between talented artists and Instagrammers. 2019 was also distinguished by two major launches that caught the imagination, attracted the attention of the press and specialists alike and seduced a great many customers: the Galop d’Hermès watch enhanced the women’s collection and Arceau watch "L’heure de la lune" was the most talked-about complication timepiece in the men’s collection. The Galop d’Hermès line is the fruit of a collaboration between Hermes and young American designer Ini Archibong, renowned in the world of design objects and lights. Drawing inspiration from the House’s harness collections, he designed a contemporary watch with aerodynamic curves that plays with light. A watch that is feminine, elegant and determined all at once, like the woman for whom it is designed. Since its launch in the middle of the year, this line has achieved growing success across markets worldwide. The Arceau "L’heure de la lune" watch offers a quirky take on the classic “moon-phase” complication. Wishing to restore this celestial body to its central place in the dial, Hermès made it the “main character” of the piece, while offering a unique perspective: the classical functions – hour, minute, date – become the satellites, gravitating above two fixed representations of the Moon, seen from both the northern and southern hemispheres. The latter is adorned with an image of a mischievous Pegasus. This new Hermès complication was hailed by many specialists and received the Grand Prix de l’Horlogerie de Genève (GPHG) horology prize in November in the “calendars and astronomy” category. Sales in the network of stores benefited from the worldwide success of the two maiden lines, Cape Cod and Heure H , and the new impetus given to the Arceau line. The Cape Cod family was expanded with new models introduced throughout the year: they enabled admirers of the range to discover the more luxurious, technically innovative and occasionally bejewelled expressions of this line, which is both graphical and brimming with poetry. The collection of “exceptional pieces” developed by Hermès confirmed its success once again, using its art métiers to create jewellery watches ( Faubourg , Klikti , Arceau , Médor , etc.), which showcase the House’s savoir-faire in jewellery through original designs. 1.5.7 In 2019, Other Products generated revenue of €258 million, representing a 7% rise at constant exchange rates and accounting for 3% of the Group’s total revenue. OTHER PRODUCTS AND BRANDS

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CRISTALLERIE SAINT-LOUIS

1.5.7.1

Saint-Louis continues to give priority to the development of lighting by leveraging two strengths, i.e. semi-bespoke and bespoke, and by diversifying the types of lighting with a modular system, chandeliers of different sizes and a portable lamp, in order to meet all needs.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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