HERMÈS - 2019 Universal Registration Document

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OVERVIEW OF THE GROUP ACTIVITY BY MÉTIER

BOOTMAKER JOHN LOBB

This approach was illustrated in particular in 2019 through new creations of the Folia collection, designed by Noé Duchaufour-Lawrance. This global art of living depicted through crystal glassworks has been presented at a number of international trade shows, including Euroluce, Milan, where Saint-Louis displayed its lighting in the Fiera, and, for the first time, in the heart of the city in the Brera district, where open days and festive meetings were organised for the international press, distributors and special guests. Cristallerie Saint-Louis also participated in the Shanghai Design Fair and the ICFF trade fairs in New York and Downtown Design in Dubai. The opening of three new points of sale in Kazakhstan, in Shanghai and New Delhi is part of its international expansion. In parallel, the gift offering has been enriched with small lights, decorations, glasses sold as single pieces or in gift boxes, exceptional pieces, and a new category of products has been added: games, combining usage and decoration. Unique pieces of the Comète collection, sculpted by the Meilleurs Ouvriers de France from the Cristallerie, were part of a travelling exhibition in six countries during the year. The “Prestige” version of the Jeu d’échec , in limited edition of 28 numbered copies, is in itself an exception item. This gift offering is also enriched through exclusive and local collaborations, such as the Galerie des Rois gift box developed with the château of Versailles and the Midnight Supper gift box created with St. Regis New York hotel. In 2019, the silversmith Puiforcat continued to enrich its contemporary offering revolving around gastronomy and usage by unveiling Granville , a collection of spice mills with sleek, architectural contours, bringing together cooking and dining. The Couteaux d’Orfèvre collection, developed a few years ago in partnership with Michelin-starred chef Pierre Gagnaire, has been revived with a new finish in wood and the addition of knives specifically designed for cheese tasting. To present these pieces to the press, influencers and its customers, the House designed an original concept in the form of a tasting session which perfectly illustrated the usage function of its creations. Organised successively in Paris, New York and Shanghai, in partnership with local chefs and cooks, guests could touch and feel these creations over a meal while sharing their experience on social media. The opening of a new point of sale in Almaty in Kazakhstan, in partnership with Cristallerie Saint-Louis, and the refurbishment of the Puiforcat space in Harrods in London, were other key events of the year. The Paris store was in the spotlight when Puiforcat’s Art Déco heritage was showcased during the Modern Maharaja exhibition at the Musée des Arts Décoratifs. A key event which brought together prescribers, architects and home decorators. At the workshop, the team conducted a number of projects throughout the year aiming in particular to perpetuate savoir-faire and to optimise the logistics division. Various actions relating to the restructuring of the workshop, industrial investments and better quality control have been initiated in order to perpetuate Puiforcat’s long-standing reputation of excellence. PUIFORCAT 1.5.7.2

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In 2019, John Lobb focused on its new strategy of going back to basics, which put simply is as follows: John Lobb is a maker of high quality British shoes for formal wear and for men. This strategy is implemented by showcasing the timeless classics such as William , Lopez and City , in collections, in stores and in communication campaigns. The new communication material shows shoes worn in everyday life in cities. The bespoke workshop located on rue de Mogador, in Paris, has expanded beyond its usual boundaries to set up in an immaculate space in Soho, New York. Four craftsmen have, for the first time, showcased their exceptional footwear savoir-faire to curious and passionate customers. Holding Textile Hermès groups together and coordinates under one structure all savoir-faire relating to textile production: from creation to sewing, encompassing weaving, engraving, printing, dyeing and finishing. It serves the Group’s different métiers , as well as external markets such as clothing and interior decoration, in particular with the brands Bucol, Créations Métaphores, Verel de Belval and Le Crin. 2019 was marked by the consolidation of Silk and Textiles sales, and the continued growth of business generated from other Hermès divisions. At the operational level, this year also saw an increase in printing capacity, the active management of skills and the start of construction of new buildings. TEXTILES 1.5.7.4 The tanning division handles the purchase, tanning, finishing and sale of precious leather for high-quality fashion, leather goods and watch-making brands and creations. In 2019, as in previous years, the high-end market saw sustained demand for exotic hides and calfskin, in particular for leather goods and shoes. As a result, the division has witnessed an increase in volume, both from the House itself and from certain players in the luxury sector. This year, the tanning division launched its new website, promoting its exotic leather ranges, and revamped the websites of its two calfskin tanneries. More specifically, the calfskin sector further intensified its reorganisation and the development of synergies within the division. It also continued its initiatives for improving the quality of supply chains and tanning processes, and for the development of materials for Maison Hermès. Demand for Togo and Grain Madame calfskins thus increased, and the division witnessed growth in respect of smooth Box leather for belts. The calfskin sector is accordingly continuing to develop to serve the House. It is also expanding in the leather goods segment in its other markets, with new collections that have met with increasing interest from its customers. Furthermore, the Tanneries du Puy has kicked off its ambitious refurbishment programme, which will be conducted over the next five years. TANNING AND PRECIOUS LEATHERS 1.5.7.5

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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