HERMÈS - 2020 Universal registration document

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PRESENTATION OF THE GROUP AND ITS RESULTS REVENUE AND ACTIVITY BY MÉTIER

REVENUE AND ACTIVITY BY MÉTIER

1.6 AFR

Change

2020 Revenue in millions of euros

2019 Revenue in millions of euros

at current exchange rates

at constant exchange rates

2019 mix in %

2020 mix in %

Leather Goods & Saddlery Ready-to-wear and Accessories

3,209 1,409

50% 22%

3,414 1,574

50%

(6.0)%

(4.8)% (9.2)%

23% (10.5)%

Silk and Textiles

452 643 263 196 218

7%

592 525 326 193 258

9% (23.7)% (22.8)%

Other Hermès sectors

10%

7%

22.4%

23.9%

Perfumes Watches

4% 3% 4%

5% (19.2)% (19.0)%

3%

1.3%

2.3%

Other products

3% (15.7)% (15.3)%

CONSOLIDATED REVENUE

6,389

100%

6,883

100%

(7.2)%

(6.0)%

LEATHER GOODS & SADDLERY 1.6.1 Leather Goods & Saddlery, Hermès’ original métier , encompasses bags for men and women, clutches, briefcases, luggage, small leather goods, diaries and writing objects, saddles, bridles and a full range of equestrian products and clothing. The Leather Goods & Saddlery métier represents 50% of consolidated sales. In 2020, it generated €3,209 million in revenue. Hermès saddlery and leather goods articles are born of an alchemy of authentic materials, selected according to rigorous standards, and the skilled hands of the saddler-leather workers, who apply traditional savoir-faire passed down from generation to generation. The care taken by the craftpeople each day patiently crafting and fashioning the raw leather gives these unique objects a distinctive additional measure of personality. Today, they are made by over 4,089 saddler-leather craftpeople in 17 production units and workshops spread over Paris, Pantin and six regions across France. To meet continued high demand, Hermès will inaugurate three new leather goods workshops, in Gironde and Seine-et-Marne in 2021, and in Eure in 2022. Hermès also opened a temporary workshop in Charleville-Mézières (Ardennes) in March, the first step ahead of the construction of a new leather goods workshop planned for 2023, as well as in Riom (Puy-de-Dôme) in October, in anticipation of the opening of a new leather goods workshop in 2024. These openings were prepared in close collaboration with the various local stakeholders and regional administrative and economic development bodies. In this way, Hermès reaffirms its commitment to regions with a strong manufacturing savoir-faire , and its will to provide high-quality jobs. The House is also continuing to perfect the skills and savoir-faire of its craftpeople through a range of training and professional qualification programmes. These programmes are delivered within the dedicated in-house Hermès academy, and through a range of partnerships with training structures in the regions concerned.

WOMEN’S BAGS

1.6.1.1

Driven by the annual theme “Innovation in the Making”, the collections of bags and luggage showcase the House’s creativity, brandishing the finest materials and displaying its unique savoir-faire . Women’s bags collections, always exhibiting an abundance of creativity, offer new items that explore a variety of writings and uses. New looks appear, the result of ingenious construction. The Hermès Della Cavalleria bag is thus distinguished by its astonishing assembly, highlighting the work in following a curve, and by its horse bit-shaped clasp, a new equestrian-inspired signature whose forms perfectly match the gentle curves of the leather. The New Drag bag, inspired by a travel bag with its wide shoulder strap, introduces a new spirit to a feminine bag combining refinement and sport-chic allure. Unexpected, the Chaîne d’Ancre bag is a small tote bag carried by hand, made up of a farandole of intertwined leather links to create an openwork space in which a silk pouch is placed. For a day-to-day look, the Cabassellier is a light new signature tote bag, with clean lines, giving pride of place to its material. The great classics continue to adapt to current uses with new approaches, such as the Birkin Cargo with an adventurous look, transformed by the addition of numerous exterior pockets and the use of a supple and light Goéland fabric. New ways of carrying respond to a constant search for freedom of movement. The In the Loop belt bag, whose soft fabric conjures up the quilted link of a Chaîne d’Ancre , can be carried in a variety of ways with its clever adjustable and removable shoulder strap. The mixed Émile Hermès bag, a small travel bag with a long format that can be worn across the back or on the shoulder, is a contemporary illustration of Hermès’ travel culture. Buoyed by its success, the 24/24 line accommodates a small format whose shoulder strap system allows it to be carried on the shoulder, across the body, at the waist and even on the back. Elsewhere, the evening offer opens up a new chapter with two creations. The small, refined Hermès Minuit au Faubourg bag is crafted around a clasp with a remarkable mechanism, inspired by the techniques of watchmaking.

26 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL