HERMÈS - 2020 Universal registration document

PRESENTATION OF THE GROUP AND ITS RESULTS STRATEGY

Hermès, present in 45 countries, has an omnichannel network that is geographically balanced, with measured development and a constant search for prime locations.

The vertical integration and sustainable relationships with its partners ensure rigorous traceability of its supply chains, strict control of its supplies and reinforce the House’s responsible development strategy with regard to materials, techniques and savoir-faire . THE DYNAMICS OF AN EXCLUSIVE DISTRIBUTION NETWORK The omnichannel offer has been further developed this year in the exclusive and geographically balanced distribution network. This in-house distribution model, with Hermès’ own network of stores and e-commerce sites, proved its effectiveness during the crisis. The House’s tools have been adapted to a transformed customer relationship in order to respond to rapid changes in demand, and thus maintain a special relationship with customers. 2020 saw the widespread rollout of an omnichannel service relationship that enabled business continuity. The exclusive distribution network, consisting primarily of branches run by the Group around the Hermès brand, is the third pillar of Hermès’ strategy. Each of the 306 stores across the world offers a personalised selection of objects, to exceed the specific expectations of its customers and offer a distinct purchasing experience in each and every store. Each store enables its customers to explore and discover the most beautiful products, and extends the House’s lustre worldwide. The importance of e-commerce and the digital ecosystem has been confirmed in the face of the Covid-19 crisis. For the past five years, Hermès has made the strategic choice of ramping up online sales, with the successful rollout of its new proprietary platform worldwide, the attraction and retention of new customers, and the development of services and initiatives. This strategy supports the House’s customers and accelerates the digitisation of uses. This digital flagship is designed like any Hermès store with its spirit of fantasy, authenticity and diversity, its windows, its products, its services and its stories gathered in a single virtual place. Customers are placed at the core of the multi-channel integrated network, so as to best meet their expectations and offer them a unique experience. Hermès is appreciated by a loyal local clientele in each country where it operates, whose desire for the objects of the House enabled it to resist the interruptions of international travel. Across the world, Hermès stores are veritable "homes for Hermès objects", offering customers a unique experience, complementary to its website hermes.com. This offer is backed by innovative services aimed at welcoming and serving customers in the best possible manner at all times. The House also hosts special occasions that strengthen the bonds among Hermès’ stakeholders, revolving around events in the world and dynamic and animated set designs. Each opening or reopening is an opportunity for the House to bring together customers that value its creativity and savoir-faire . Hermès’s unique communication ensures the strength of the House’s influence in France and around the world. It has adapted this year and invented new formats to maintain its presence in a difficult context while nurturing the link with customers, with agility and creativity, and through hybrid communication strategies.

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AN ENTREPRENEURIAL SPIRIT AND FREEDOM OF PURCHASE The entrepreneurial spirit has been at the heart of Hermès since its creation, never leaving its side and guiding all facets of the Company’s development. It is illustrated by its abundant creativity, a capacity for constant innovation, new métiers , new production workshops and store openings. An entrepreneurial and innovative spirit underlies the creation of every object. The strategy offers store managers freedom of purchase, to meet the specific needs of their customers. Two podiums are organised every year, presenting the fall-winter and the spring-summer collections. These bring together all store and country managers, managers of the different métiers as well as designers, to present all collections to the sales teams in all regions of the world. They are thus responsible for their own collections and make their store unique with a special mix of products. The presentation of the collections adapted to new formats this year, turning to digital presentations of the collections. This freedom means that in each country where Hermès is present, the Group’s customers are presented with a diversified and unique mix of products resulting from this flurry of creativity, blending iconic products and the House’s new references, created by its designers, artists, colourists and Artistic Directors, to best meet local expectations and dedicated to the elegance of its customers. AN INDEPENDENT HOUSE Hermès continues to assert its independence, underpinned by a strong family-based shareholding structure, committed to retaining most of its production in France and perpetuating its savoir-faire to serve creativity and its long-term vision. This independence, and the House’s financial strict management, made it possible to continue operational investments in 2020, both in production capacities and in the network and cross-functional projects, in order to preserve the House’s long-term performance and value creation. Economic and financial independence, debt-free, has enabled the House to maintain the jobs and basic salaries of its 16,600 employees all over the world, without the use of public subsidies. Committed to the community, Hermès donated €20 million to AP-HP (the Parisian public hospital system), and its subsidiaries in all geographical areas took action locally, with the manufacture of hydroalcoholic gel by Hermès Parfum on the Vaudreuil site, as well as donations of masks and equipment for caregivers. Finally, the Executive Chairmen waived the increase in their compensation and the dividend awarded in 2020 was maintained at the same level as that paid in 2019.

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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