HERMÈS - 2019 Universal Registration Document

OVERVIEW OF THE GROUP ACTIVITY BY MÉTIER

PETIT H

The exotic skins segment, significantly improved the quality of its supplies of crocodilian skins, in particular the Porosus , reaping the benefits of several years of investments and perfecting its savoir-faire . An initiative for optimising the use of materials also bore fruits in 2019 through joint team work with the Group’s craftsmanship division leading to substantial growth in certain lines of products and the strong comeback of finishings such as the Himalaya crocodile. The Cuneo tannery successfully launched a skin trimming activity. The segment has also finalised the industrialisation of its “chrome-free” finishings in all European exotic skin tanneries and complemented its offering in these materials. The significant growth in the sale of lizard skins during the financial year is also worthy of note. The Tanneries division undertakes to offer the best guarantees of a responsible organisation in line with Hermès’s ethical and sustainable development values. Hence, it only sells exotic skins where the source is perfectly traced and audited, and refrains from dealing in certain species or sectors, if necessary. As regards calfskin, the division ensures the traceability of individual skins so as to guarantee the compliance of its supplies. It also supports external initiatives and scientific partnerships aimed at improving standards in each channel. In this way, the Tanneries division is consolidating its actions and investments in line with its objectives: to assert its position of excellence in the precious skins market by securing its supplies, optimising its production capacity, developing savoir-faire , respecting the environment and animal welfare, and by focusing on innovation, creativity and excellence in its sectors. The creation and manufacture of exclusive bespoke objects has been central to the Hermès story since its very beginnings. Today, this service is performed by Hermès Horizons, which regularly explores new creative visions, exceptional materials and savoir-faire , to bring its customers’ dreams to life. Fantasy, technicity and wonderment are an everyday feature in the Pantin and Faubourg Saint-Honoré workshops, where exclusive stories in leather goods or the interior design of vintage cars or yachts are written, but also, on occasion, unexpected objects such as jukeboxes, surfboards, canoes or aircraft interiors. This burgeoning activity, which is available to customers in all Hermès stores, builds on the creative wealth of the House and the virtuosity of our craftsmen’s hands. It is also an opportunity to explore new territories in objects, creation, materials and savoir-faire . HERMÈS HORIZONS 1.5.7.6

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What defines petit h is first and foremost a process of reverse creation: drawing inspiration from a material to imagine new objects. Petit h offers an array of artists and creators working in the same workshop left over materials and objects from the Hermès Group’s manufacturing workshops and brands (Puiforcat, Cristallerie Saint-Louis, John Lobb, Le Crin, Verel de Belval, Créations Métaphores, etc.). Thanks to this unprecedented artistic and pluralistic take on exceptional materials, backed up by the complete mastery of savoir-faire in excellence of the craftsmen and women in its workshop, petit h creates unexpected objects while using resources destined to be excluded from production. This singular creative approach finds its resonance in original and inventive distribution, off the beaten path, with sales that are experiences in themselves. Thus in 2019, petit h took to the road as it does each year to meet Hermès customers all over the world, with two pop-up sales. In spring, the Chengdu store in China was home to a leather family of pandas, the city’s animal symbol, in a setting of light made in paper, cartons and bamboo inspired by the warm alleyways of the historic district. In late November, in the garden city of Singapore, customers were invited to discover “Planet petit h”. Over two floors with contrasting worlds, with a mineral landscape providing the backdrop to organic forms and a futuristic capsule surrounded by lush vegetation, characteristic of Singapore, visitors were treated to a fun encounter with one-of-a-kind creations. A nomad by nature, petit h nevertheless maintains a permanent home in Paris, in the entrance of the Hermès store in the Rue de Sèvres. Six times a year, stories of surprising objects are told. In 2019, Shang Xia celebrated its 10th anniversary, a milestone for this house which revitalize traditional Chinese culture while bringing innovations. During the year, Shang Xia launched new collections, presented brand events and enhanced its global recognition. Exploring the themes of life, vitality and revival, Shang Xia created a series of new products reflecting a more playful, more youthful and more dynamic approach. Like the Da Tian Di Mahjong Table, Treasure boccaro teapots, the Lan Yue bamboo weaving handbag, or simply a metal box or a carbon fibre table. In August, the first Shang Xia store opened in Shenzhen in MixC Mall, exhibiting works combining traditional craftsmanship and contemporary aesthetic. Following the Musée des arts décoratifs in Paris, the musée Guimet and the British Museum, London’s Victoria and Albert Museum welcomed to its permanent collections an iconic piece from Shang Xia, the Lan Yue handbag in woven bamboo. The museum has also decided to include other creations in the future. SHANG XIA 1.5.7.8

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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