HERMÈS - 2020 Universal registration document

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PRESENTATION OF THE GROUP AND ITS RESULTS STRATEGY

the target of reducing scope 1 and 2 carbon emissions by 50% in absolute terms, as well as reducing the carbon intensity of scope 3 emissions, by the year 2030. Hermès includes responsibility and sustainability in all its actions and creations. As regards sustainable development, Hermès is determined to leave a positive global footprint, by paying the utmost attention to the performance of corporate social responsibility, in keeping with the House’s DNA and its craftsmanship model. Hermès’ objects are created, designed and made to last, using the most beautiful and robust natural materials and the best craftsmanship savoir-faire . A Hermès object acquires a beautiful patina over time and frequently improves with age. Craftsmanship of excellence means a piece that can be repaired. The House has therefore always had craftpeople dedicated to this activity, in France as well as abroad. Offering long-lasting, repairable objects that are made to be handed down is also a way to reduce the impacts of over-consumption and the wasting of resources, one of the principles to which Maison Hermès is particularly attached. There is a strong commitment to the creation of social value, both collectively through job creation in communities, and individually through free share awards, profit-sharing and an incentive scheme for employees. This is testimony to the Group’s desire to share the fruits of its growth with those who make it happen on a daily basis. Hermès’ commitment also implies strong signals from management. Hermès’ remarkable solidity is the result of this strategy, which is based on high standards, the transmission of unique savoir-faire , local anchoring and strong vertical integration. It reinforces the choices made in the past and encourages the Group to show initiative and innovation to forge the successes of tomorrow. This strategy is the result of the high standards of a House founded on craftsmanship and independence and driven by its exceptional savoir-faire to serve unbridled creativity. It hinges on historical savoir-faire while remaining resolutely forward-looking, through its accelerating transformations, its creativity and innovation, and its ability to understand and anticipate the aspirations of its customers today. The crisis we have been through has seen the affirmation of commitments with social and environmental responsibility, the digitisation of uses and the positive market dynamics in Asia. Taking into account these profound and lasting changes allows us to remain confident in the future. For Hermès, craftsmanship is a sustainable and human adventure, in a constantly changing world.

Hermès’ strong and sustained development is the result of prudent and rigorous management, and a resilient business model. These make it possible to preserve the uniqueness of the House, which has been part of the CAC 40 index since June 2018, in volatile contexts. This is achieved by maintaining the Group’s profitability, its high cash level, its operating cash flows, targeted and qualitative investments, and the security of its assets. Financial independence ensures that its long-term strategy is safeguarded.

VIRTUOUS AND RESPONSIBLE GROWTH UNDERPINNED BY HUMANIST VALUES

The majority of Hermès’ production takes place in France, at 51 production sites grouped to create regional clusters. Hermès’ strategy is to pursue this sustainable, responsible and social value-based growth model, with commitment to regions where there is a high level of manufacturing savoir-faire to create high-quality jobs. Hermès is a humanist company, deeply respectful of all those who, with their commitment, savoir-faire and passion, are working to make the House a success. In response to the crisis, Hermès employees acted with solidarity and commitment to overcome obstacles and move forward. Through its engagement with local authorities and communities where its production sites are located, Hermès contributes to revitalising regions, and provides working conditions that offer proximity and stable employment. Thanks to the Fondation d’entreprise Hermès, the Company is expanding its philanthropic actions in the public interest through artistic creation, education and transmission, solidarity and the preservation of biodiversity. In the face of the crisis, Hermès, as an economic player, has made a commitment to its ecosystem and its stakeholders, in particular by supporting partners and sectors, for example by maintaining and adapting orders, and sharing best practices in terms of health measures with its partners to help them return to business, as well as on climate and biodiversity issues. As a company that respects nature and inspires it, Hermès ensures the preservation of its resources and its impact on natural environments and local ecosystems. Hermès’ craftsmanship model leaves a careful environmental footprint. In its direct sphere of influence, biodiversity in particular is systematically taken into account in the construction of its production sites. In its indirect sphere, the Group has a positive impact on its supply chain, by preserving autonomous ecosystems and participating in global initiatives. The House’s high standards are confirmed and ensured in its subsidiaries, as well as in its objectives to combat global warming with

16 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL