HERMÈS - 2020 Universal registration document

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MESSAGE FROM THE EXECUTIVE MANAGEMENT5
HIGHLIGHTS 20206
1. PRESENTATION OF THE GROUP AND ITS RESULTS9
1.1 SIX GENERATIONS OF CRAFTPEOPLE10
1.2 GROUP GOVERNANCE13
1.3 STRATEGY14
1.4 SIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS17
1.4.1 SUMMARY DESCRIPTION OF THE GROUP AS AT 31 DECEMBER 202017
1.4.2 PRODUCTION SITES18
1.4.3 DISTRIBUTION NETWORK20
1.4.4 REAL ESTATE23
1.5 KEY FINANCIAL FIGURES24
1.5.1 REVENUE BY SECTOR IN 2020 VS. 201924
1.5.2 BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA 2020 VS. 201924
1.6 REVENUE AND ACTIVITY BY MÉTIER26
1.6.1 LEATHER GOODS & SADDLERY26
1.6.2 READY-TO-WEAR AND ACCESSORIES28
1.6.3 SILK AND TEXTILES29
1.6.4 OTHER HERMÈS SECTORS30
1.6.5 PERFUMES30
1.6.6 WATCHES31
1.6.7 OTHER PRODUCTS AND BRANDS32
1.6.8 PARTNERSHIPS34
1.7 REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA35
1.7.1 EUROPE35
1.7.2 ASIA-PACIFIC36
1.7.3 AMERICAS37
1.7.4 OTHER AREAS37
1.7.5 DIGITAL STRATEGY37
1.8 COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS38
1.8.1 INCOME STATEMENT38
1.8.2 CASH FLOWS AND INVESTMENTS39
1.8.3 FINANCIAL POSITION39
1.9 SIGNIFICANT EVENTS SINCE THE END OF THE FINANCIAL YEAR39
1.10 OUTLOOK40
1.11 FONDATION D'ENTREPRISE42
2. CORPORATE SOCIAL RESPONSIBILITY45
2.1 BUSINESS MODEL47
2.1.1 A FRENCH MODEL OF CRAFTSMANSHIP52
2.1.2 CONTRIBUTIVE, SOLID AND SUSTAINABLE GROWTH54
2.1.3 STRUCTURING CSR AMBITIONS55
2.2 PEOPLE: TEAMS61
2.2.1 EMPLOYEE DEVELOPMENT AND WELL-BEING65
2.2.2 SOCIETAL COMMITMENTS80
2.2.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGS)88
2.3 PEOPLE: SAVOIR-FAIRE91
2.3.1 ACQUISITION, ENRICHMENT AND TRANSMISSION93
2.3.2 PRESERVATION AND SUSTAINABILITY102
2.3.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGS)106
2.4 PLANET: RAW MATERIALS108
2.4.1 RAW MATERIALS110
2.4.2 SUPPLY CHAINS114
2.4.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGS)122
2.5 PLANET: ENVIRONMENT125
2.5.1 RESOURCES AND WASTE MANAGEMENT129
2.5.2 CLIMATE CHANGE141
2.5.3 BIODIVERSITY153
2.5.4 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGS)160
2.6 COMMUNITIES: SUPPLIERS & PARTNERS163
2.6.1 SUPPORT AND CONTROL166
2.6.2 RESPONSIBLE PRACTICES175
2.6.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGS)180
2.7 COMMUNITIES: STAKEHOLDERS AND LOCAL INTEGRATION182
2.7.1 REGIONAL RESPONSIBILITY IN FRANCE184
2.7.2 RESPONSIBLE COMPANY186
2.7.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGS)197
2.8 ETHICS – COMPLIANCE198
2.8.1 PROMOTING ETHICS198
2.8.2 THE FIGHT AGAINST CORRUPTION204
2.8.3 PERSONAL DATA PROTECTION207
2.8.4 DUTY OF VIGILANCE208
2.8.5 CONTRIBUTION TO THE UN'S SUSTAINABLE DEVELOPMENT GOALS (SDGS)212
2.9 REPORT BY ONE OF THE STATUTORY AUDITORS, APPOINTED AS AN INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED NON-FINANCIAL INFORMATION STATEMENT INCLUDED IN THE MANAGEMENT REPORT213
3. CORPORATE GOVERNANCE219
AMBITIOUS AND BALANCED GOVERNANCE221
SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE226
3.1 THE COMPANY’S CORPORATE GOVERNANCE CODE226
3.1.1 CORPORATE GOVERNANCE PRINCIPLES APPLIED226
3.1.2 PROVISIONS OF THE AFEP-MEDEF CORPORATE GOVERNANCE CODE NOT APPLIED AND THOSE NEWLY COMPLIED WITH226
3.2 ADMINISTRATIVE AND MANAGEMENT BODIES229
3.2.1 THE ACTIVE PARTNER AND ITS EXECUTIVE MANAGEMENT BOARD229
3.2.2 EXECUTIVE MANAGEMENT229
3.2.3 GOVERNING BODIES234
3.2.4 NON-DISCRIMINATION AND DIVERSITY POLICY238
3.2.5 SUCCESSION PLAN FOR SENIOR EXECUTIVES239
3.3 ORGANISATION OF THE SUPERVISORY BOARD240
3.3.1 APPLICABLE PRINCIPLES240
3.3.2 DIVERSITY POLICY APPLIED WITHIN THE SUPERVISORY BOARD242
3.3.3 SUCCESSION PLAN FOR THE CHAIRMAN OF THE SUPERVISORY BOARD244
3.3.4 COMPOSITION OF THE SUPERVISORY BOARD245
3.3.5 INDEPENDENCE OF THE MEMBERS OF THE SUPERVISORY BOARD248
3.3.6 SUPERVISORY BOARD ETHICS250
3.3.7 INFORMATION ON SITTING MEMBERS OF THE SUPERVISORY BOARD253
3.4 FUNCTIONING OF THE SUPERVISORY BOARD274
3.4.1 ROLE OF THE SUPERVISORY BOARD274
3.4.2 INFORMATION AND TRAINING OF THE SUPERVISORY BOARD275
3.4.3 MAIN DUTIES OF THE SUPERVISORY BOARD AND WORK CARRIED OUT IN 2020279
3.4.4 ETHICS AND COMPLIANCE – PERSONAL DATA PROTECTION281
3.4.5 CORPORATE SOCIAL RESPONSIBILITY (CSR)281
3.4.6 COMPENSATION AND REIMBURSEMENT OF EXPENSES281
3.5 SPECIALISED COMMITTEES282
3.5.1 APPLICABLE PRINCIPLES282
3.5.2 CAG-CSR COMMITTEE283
3.5.3 AUDIT AND RISK COMMITTEE285
3.6 EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES288
3.6.1 METHODOLOGY288
3.6.2 LAST FORMAL EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES IN 2019288
3.6.3 ANNUAL DEBATE ON THE FUNCTIONING OF THE BOARD289
3.7 COMPENSATION AND BENEFITS OF CORPORATE OFFICERS291
3.7.1 COMPENSATION POLICY FOR THE EXECUTIVE CHAIRMEN (EXECUTIVE CORPORATE OFFICERS) AND MEMBERS OF THE SUPERVISORY BOARD (NON-EXECUTIVE CORPORATE OFFICERS)291
3.7.2. OVERVIEW OF COMPENSATION AND BENEFITS OF ALL KINDS FOR CORPORATE OFFICERS301
3.7.3 ALLOCATION OF FREE SHARES AND STOCK OPTIONS305
3.7.4 TABLES DRAWN UP IN ACCORDANCE WITH AMF POSITION-RECOMMENDATION NO. DOC 2021-02 (§ 13.3) OF 8 JANUARY 2021 ON THE PRESENTATION OF COMPENSATION306
3.8 OTHER INFORMATION312
3.8.1 AGREEMENTS312
3.8.2 CAPITAL STRUCTURE AND FACTORS LIABLE TO AFFECT THE OUTCOME OF A PUBLIC OFFERING315
3.8.3 SPECIAL CONDITIONS FOR ATTENDING GENERAL MEETINGS316
3.8.4 SUMMARY TABLE OF THE USE OF FINANCIAL DELEGATIONS OF AUTHORITY317
3.9 OTHER INFORMATION FROM THE EXECUTIVE MANAGEMENT REPORT319
3.9.1 INTERESTS OF CORPORATE OFFICERS AND EXECUTIVE COMMITTEE MEMBERS IN THE SHARE CAPITAL319
3.9.2 DECLARATIONS CONCERNING CORPORATE OFFICERS AND THE EXECUTIVE COMMITTEE320
4. RISKS AND CONTROL323
4.1 RISK FACTORS324
4.1.1 RISKS RELATED TO STRATEGY AND OPERATIONS326
4.1.2 INDUSTRIAL RISKS331
4.1.3 LEGAL AND REGULATORY RISKS335
4.1.4 RISKS RELATED TO SOCIAL, SOCIETAL AND ENVIRONMENTAL RESPONSIBILITY336
4.1.5 FINANCIAL RISKS340
4.2 INSURANCE POLICY AND RISK HEDGING343
4.3 RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT344
4.3.1 CONTROL ENVIRONMENT344
4.3.2 PARTIES RESPONSIBLE FOR RISK MANAGEMENT AND INTERNAL CONTROL344
4.3.3 RISK MANAGEMENT SYSTEM346
4.3.4 INTERNAL CONTROL SYSTEM347
4.3.5 INTERNAL AUDIT SYSTEM350
5. CONSOLIDATED FINANCIAL STATEMENTS353
5.1 CONSOLIDATED INCOME STATEMENT354
5.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME354
5.3 CONSOLIDATED BALANCE SHEET355
5.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY356
5.5 CONSOLIDATED STATEMENT OF CASH FLOWS357
5.6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS358
5.7 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS398
6. PARENT COMPANY FINANCIAL STATEMENTS405
6.1 INCOME STATEMENT FOR 2020406
6.2 BALANCE SHEET AT 31 DECEMBER 2020407
6.3 CHANGE IN EQUITY IN 2020408
6.4 STATEMENT OF CASH FLOWS FOR 2020408
6.5 NOTES TO THE FINANCIAL STATEMENTS409
6.6 TABLE OF SUBSIDIARIES AND AFFILIATES420
6.6.1 DETAILED INFORMATION ON SUBSIDIARIES IN WHICH THE GROSS VALUE OF SECURITIES HELD EXCEEDS 5% OF THE SHARE CAPITAL OF HERMÈS INTERNATIONAL420
6.6.2 TOTAL EQUITY AND NET INCOME OF SUBSIDIARIES420
6.7 TABLE OF RESULTS OVER THE LAST FIVE FINANCIAL YEARS421
6.8 INFORMATION ON PAYMENT TERMS422
6.9 OTHER INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS423
6.9.1 INFORMATIONS SUR LES SUCCURSALES423
6.9.2 INFORMATION SUR LE MONTANT DES PRÊTS INTERENTREPRISES423
6.9.3 PRISES DE PARTICIPATION DANS DES SOCIÉTÉS AYANT LEUR SIÈGE SOCIAL EN FRANCE (ART. L.233-6 DU CODE DE COMMERCE)423
6.10 STATUTORY AUDITORS’ REPORT ON THE ANNUAL FINANCIAL STATEMENTS424
7. INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL429
7.1 PRESENTATION OF HERM.S INTERNATIONAL AND ÉMILE HERMÈS SARL430
7.1.1 PRESENTATION OF HERMÈS INTERNATIONAL430
7.1.2 PRÉSENTATION D’ÉMILE HERMÈS SARL − ASSOCIÉ COMMANDITÉ440
7.2 INFORMATION ON SHARE CAPITAL AND SHAREHOLDERS441
7.2.1 INFORMATION ON SHARE CAPITAL441
7.2.2 INFORMATION ON SHAREHOLDERS441
7.2.3 TRANSACTIONS PERFORMED BY CORPORATE OFFICERS AND THOSE CLOSE TO THEM ON THE SHARES OF THE COMPANY447
7.2.4 STOCK MARKET ETHICS CODE448
7.2.5 SHAREHOLDER PACTS AND AGREEMENTS449
7.3 DIVIDEND POLICY453
7.3.1 PRINCIPLES453
7.3.2 REVISION OF THE 2020 DIVIDEND DISTRIBUTION PROPOSAL453
7.3.3 PROPOSAL TO BE SUBMITTED TO THE 2021 GENERAL MEETING453
7.4 STOCK MARKET INFORMATION454
7.4.1 SUMMARY OF STOCK MARKET INFORMATION454
7.4.2 HISTORY OF MONTHLY TRANSACTIONS454
7.4.3 HERMÈS SHARE PRICE HISTORY455
7.5 SHAREHOLDER INFORMATION458
7.5.1 RELATIONS WITH SHAREHOLDERS458
7.5.2 SECURITIES SERVICE458
7.5.3 DOCUMENTS AVAILABLE TO THE PUBLIC458
7.5.4 HOW TO BECOME A HERMÈS INTERNATIONAL SHAREHOLDER458
7.5.5 DIALOGUE WITH SHAREHOLDERS IN 2020458
7.5.6 2021 FINANCIAL CALENDAR459
7.5.7 CROSSING OF THRESHOLDS AND NOMINATIVE REGISTRATION REQUIREMENTS459
8. COMBINED GENERAL MEETING OF 4 MAY 2021463
8.1 AGENDA464
8.1.1 ORDINARY BUSINESS464
8.1.2 EXTRAORDINARY BUSINESS465
8.2 EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS466
8.2.1 ORDINARY BUSINESS466
8.2.2 EXTRAORDINARY BUSINESS481
8.3 REPORT OF THE SUPERVISORY BOARD TO THE COMBINED GENERAL MEETING OF 4 MAY 2021497
8.4 STATUTORY AUDITORS’ REPORTS499
8.4.1 STATUTORY AUDITORS’ REPORT ON THE ANNUAL FINANCIAL STATEMENTS499
8.4.2 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS499
8.4.3 STATUTORY AUDITORS’ SPECIAL REPORT ON RELATED-PARTY AGREEMENTS499
8.4.4 REPORT BY ONE OF THE STATUTORY AUDITORS, DESIGNATED AS AN INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION CONTAINED IN THE MANAGEMENT REPORT501
8.4.5 STATUTORY AUDITORS’ REPORT ON THE SHARE CAPITAL REDUCTION (SEVENTEENTH RESOLUTION)501
8.4.6 REPORT OF THE STATUTORY AUDITORS ON THE ISSUANCE OF SHARES AND/OR OTHER SECURITIES GIVING ACCESS TO THE SHARE CAPITAL WITH OR WITHOUT PREEMPTIVE SUBSCRIPTION RIGHTS (NINETEENTH, TWENTIETH, TWENTY-SECOND AND TWENTY-THIRD RESOLUTIONS)502
8.4.7 STATUTORY AUDITORS’ REPORT ON THE ISSUANCE OF SHARES AND/OR ANY OTHER SECURITIES GIVING ACCESS TO THE SHARE CAPITAL RESERVED FOR THE MEMBERS OF A COMPANY OR GROUP SAVINGS PLAN WITH PREEMPTIVE SUBSCRIPTION RIGHTS CANCELLED (TWENTY-FIRST RESOLUTION)504
9. ADDITIONAL INFORMATION507
9.1 PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT508
9.1.1 NAMES AND POSITIONS OF PERSONS RESPONSIBLE FOR INFORMATION CONTAINED IN THE UNIVERSAL REGISTRATION DOCUMENT508
9.1.2 CERTIFICATION OF PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT508
9.2 STATUTORY AUDITORS509
9.3 CONSULTATION OF REGULATORY INFORMATION509
9.4 INFORMATION INCLUDED BY REFERENCE509
9.5 CROSS REFERENCE TABLES511
9.5.1 CROSS-REFERENCE TABLE FOR THE ANNUAL FINANCIAL REPORT515
9.5.2 CROSS-REFERENCE TABLE FOR THE MANAGEMENT REPORT516
9.5.3 CROSS-REFERENCE TABLE FOR THE SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE519
9.5.4 CROSS-REFERENCE TABLE FOR THE UNIVERSAL REGISTRATION DOCUMENT521
9.5.5 CROSS-REFERENCE TABLE FOR THE STATEMENT OF NON-FINANCIAL PERFORMANCE527
9.6 GLOSSARY528

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