HERMÈS - 2020 Universal registration document

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

TANNERIES AND PRECIOUS LEATHERS

Optimizing the use of materials is also at the heart of the division’s objectives. As in 2019, joint teamwork with the craftsmanship division and the Group’s various métiers continued successfully. This made it possible to reduce supplies while maintaining activity comparable to 2019. In addition, in the same spirit, efforts to innovate and digitise the business are progressively improving knowledge of production parameters and response to customer demands for “finished products”. 2020 also marks the start of the first phase of renovation work at the Tanneries du Puy, which should be completed by the end of 2021. To develop its sales in Asia and more specifically in China, the division has created a sales subsidiary in Hong Kong, which will be operational in early 2021. Lastly, construction has started on a new breeding farm in Australia. It will launch its activity in 2021. This investment incorporates the lessons and savoir-faire of eight years of research and development of the best breeding standards, with in particular the introduction of new tanks and an optimised layout further improving breeding practices and conditions. This project also has a significant ambition in terms of sustainable development covering the resources used and the involvement of stakeholders. Despite the health crisis, the Tanneries division is thus consolidating its actions and investments in line with its objectives: to assert its position of excellence in the precious leathers market by securing its supplies, optimising its production capacity, developing its 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 craftpeople’s hands. It is also an opportunity to explore new territories in objects, creation, materials and savoir-faire . HERMÈS HORIZONS 1.6.7.6

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The Tanneries division handles the purchase, tanning, finishing and sale of precious leathers destined for the Hermès Groupand for high-quality brands and creations, mainly in the fashion, leather goods and watch-making industries. The division also includes integrated crocodile farming operations. The health crisis that marked 2020 led to the closure of tanning activities in the first half of the year, for a period of three weeks in France and seven weeks in Italy. The mobilisation of the teams and, the implementation of barrier measures enabled a rapid resumption of activities. Nevertheless, this crisis resulted in a sharp and significant slump in sales to external customers. In May, the division acquired 100% of Mégisserie Jullien, a specialist in goat leather. A long-standing partner of Maison Hermès for a century and with recognised savoir-faire in working skins to create shagreen, Jullien has particular expertise in the Mysore and Coromandel goats. This takeover is in line with the Hermès Group’s strategy of mastering excellence in savoir-faire and securing supplies. It also enables the Tanneries division to integrate an additional sector, with the aim of developing it and bringing it up to the highest sustainable development standards. Procurement quality initiatives continued throughout the year in the three sectors of calfskin, exotic leathers and goat leathers. The quality of crocodile supplies, particularly Porosus , continued to improve, thus reaping the benefits of several years’ efforts to invest in and improve savoir-faire . In the calf sector, joint initiatives with our partners were consolidated with a view to improving the quality of materials and animal welfare. The Tanneries division is committed to ensuring that it always acts responsibly, in line with Hermès’ ethical and sustainable development values. Hence, it only sells exotic hides where the source is perfectly traced and audited, and refrains from dealing in certain species or sectors, if necessary. In particular, in 2020 the division continued to implement unit traceability of calfskin to ensure the compliance of its supplies. It also supports external initiatives and scientific partnerships aimed at improving standards in each channel. True to its strategy of excellence and operational control, the division is continuing its actions to improve quality and develop its offer and new tanning processes. This year, Doublure calfskin, and Boreal and Satin crocodile skins joined the House’s collections. Similarly, a range of leathers tanned “without metal”, and boasting new finishes, continues to be developed and is attracting growing interest.

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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