HERMÈS - 2020 Universal registration document

1

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

PETIT H

On 23 December 2020, Exor’s investment in Shang Xia through a reserved capital increase, allowed it to become the majority shareholder in this company. Shang Xia was deconsolidated from that date. Hermès, which successfully supported Shang Xia throughout the first phase of its development, will remain a major shareholder alongside Exor and Shang Xia’s founder, Jiang Qiong Er. In July 2020, true to its vertical integration strategy, Hermès acquired 100% of J3L in order to secure its supplies. The J3L group specialises in the development, manufacture and sale of high-end metal parts. The quality of its productions has always been recognised as a benchmark. The most commonly manufactured items are clasps, belt buckles, carabiners, padlocks, bracelets, earrings, press studs and eyelets. They are intended to be positioned on handbags, wallets, shoes, belts or bracelets. The J3L group supports all of the House’s métiers , from the design phase to the production of finished pieces. At the same time, J3L maintains its business with external customers, with the aim of developing it in the future. The manufacture of metal parts requires different savoir-faire . The machining or stamping of the material first makes it possible to obtain raw parts. Polishing then gives them an exceptionally smooth surface, without streaks or scratches. This surface can then be treated with a thin layer of precious metal: white, yellow or rose gold, silver or palladium depending on the designer’s choice. Finally, the complex pieces and clasps have to be assembled, certain jewels lacquered, and a final touch J3L 1.6.7.9

1.6.7.7

Petit h offers a unique creative approach by providing invited designers and our craftspeople with materials and objects no longer used by other Hermès métiers. These materials, gathered together in the same workshop, are given a new lease of life thanks to the creativity of these artists and the exceptional savoir-faire of our craftspeople. We call this reverse creation. This creative approach resonates through its original distribution method: a permanent space in a Paris store, a presence in the e-commerce site, and pop-up sales organised in Hermès stores throughout the world. In 2020, its usual home port of the rue de Sèvres being reserved for major renovation work, petit h was installed in the Faubourg Saint-Honoré at the end of January and was able to reveal its many facets at the heart of this flagship. In March, petit h set off to warm up the Russian winter by taking the stage with its audacious creations for the first time at Gum in Moscow, in a scenography of constructivist and avant-garde compositions. In November, to celebrate the 30th year of the Taiwanese subsidiary, the joyful and inventive spirit of petit h unfolded in Taipei at the Bellavita store, through a journey of glass balls with a thousand surprises where its astonishing materials interacted. Finally, an original piece combining savoir-faire and materials of excellence, the Chaise Arçon was presented at the Musée des arts décoratifs in Paris in October, during the “ Luxes ” exhibition. The health crisis at the beginning of the year had a significant impact on Shang Xia’s business due to the temporary closure of stores. A number of initiatives boosted sales in China, such as the launch of the Chao trainers and ready-to-wear capsule, online promotion by influencers and the creation of two pop-up spaces in the busy shopping centres of Shenyang MIXC and Shanghai Plaza 66. A large new tea table and carbon fibre armchairs with rounded backs were developed in line with the existing carbon fibre tea table and chairs, and confirmed their success. The second half of the year was also marked by the opening of three new permanent stores at the Peninsula hotel in Beijing, in the Hangzhou Tower shopping centre and at the Taikoo Li in Chengdu, the first Shang Xia space in south-west China. This split-level store combines a fashion space, a lifestyle space and a tea room. This new sales concept, which is set to become a reference, will contribute, alongside other stores and pop-up stores, to supporting the increase in brand awareness. SHANG XIA 1.6.7.8

of brightening added to ensure the items really shine. This activity is now integrated within the Hermès Group.

PARTNERSHIPS

1.6.8

PERRIN & FILS

1.6.8.1

Holding Textile Hermès has a 39.5% stake in the share capital of Perrin & Fils. The Perrin Group specialises in weaving for a range of sectors as diverse as lingerie, furnishing fabrics, ready-to-wear and accessories.

VAUCHER MANUFACTURE FLEURIER

1.6.8.2

La Montre Hermès holds a 25% share in the capital of Vaucher, the traditional watchmaking production unit. Located in the heart of traditional watchmaking territory, between Neuchâtel in Switzerland and the French border, the Vaucher production unit perpetuates superior savoir-faire and produces high-end and prestige watch movements.

34 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL