HERMÈS - 2020 Universal registration document

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PRESENTATION OF THE GROUP AND ITS RESULTS OUTLOOK

OUTLOOK 1.10 AFR

attractiveness of its collections and the strength of its exclusive distribution network. The qualitative development of the store network will continue in 2021, with plans to open, expand or renovate the rue de Sèvres stores in Paris, Lyon, Zurich, Omotesando in Japan, Brisbane, Macau, Beijing and Detroit. Priority will be given to expansions and renovations, in some 20 stores around the world. The rollout of e-commerce will also continue in Thailand and Taiwan in 2021, with the opening of the new platform, already successfully rolled out in many countries, with growth both in traffic and conversion rates. It offers a single entry point for editorial content and products reflecting the diversity and originality of our creations, the mastery of our savoir-faire , and major events at the House. The smooth interface between stores and e-commerce sales will continue to be amplified by an omnichannel approach and the adaptation of the supply chain. In light of the House particularly strong momentum, Hermès will continue to increase its production capacities. The high demand for Leather Goods & Saddlery will be supported by the ramp-up of new sites and projects to increase production capacity. The inauguration of the Guyenne and Montereau production units is scheduled for 2021, the completion of the Louviers leather goods workshop in Normandy for 2022, and the Sormonne workshop in the Ardennes for 2023. A new project in Auvergne was announced, which will become the 22nd Leather Goods & Saddlery production site. The shoe production site in Italy is continuing its ramp-up, and the Pierre-Bénite Silk and Textiles site is being expanded. The House’s other métiers will continue to use their extensive savoir-faire to design and manufacture exceptional objects, making a harmonious contribution to the Company. True to its commitment as a responsible employer, Hermès has maintained the jobs and basic salaries of its employees all over the world, without using government subsidies, and distributed a bonus of €1,250 to all Group employees in 2021. The Group continues to recruit and increased its headcount in 2020 by 1,183 people, of whom almost half came from the integration of Hermès' former long-standing supplier, J3L. It will continue to strengthen its teams in 2021, particularly in France and Asia. This year, creativity, high standards and innovation will remain at the heart of Hermès’ communications strategy, in a renewed format in line with the theme for 2021: Odyssey . Faced with the economic, social and health uncertainties, the House will need to perform with agility in order to design and orchestrate events that make it possible for it to shine and to animate the link that Hermès has with all of its communities. True to its tradition, Hermès is keen to welcome its customers and associates when stores open and reopen (notably on rue de Sèvres in Paris, Tokyo, Milan and Beijing), but also during hybrid, physical or digital presentations of collections (in particular Ready-to-Wear during Fashion Weeks, the Home universe in Milan and Watches at the Geneva Grand Prix de l'Horlogerie ), or when it launches new formats in accessories ( Hermès Fit ) and savoir-faire ( Hermès In the Making ).

2020 was marked by an unprecedented health and economic crisis in scale, duration and geographic extent. In this uncertain environment, Hermès demonstrated its ability to adapt, thanks to the agility and robustness of its model, which resulted in a gradual improvement in results in the second half, driven by strong activity in the Group’s stores and by the dynamic market in Asia. In 2020, the Group’s consolidated revenue amounted to €6,389 million, a decrease limited to 6% at constant exchange rates and 7% at current exchange rates. Activity in the Group’s stores returned to growth in the second half of the year and ended the year with slightly down (-2%). During this crisis, Hermès, faithful to its humanist values and its commitments as a responsible employer, took action alongside its employees and local authorities, in particular by donating €20 million to AP-HP (the Parisian public hospital system), donations of masks and equipment for caregivers and the production of hydroalcoholic gel on the Perfumes site in Le Vaudreuil as well as by supporting its partners and suppliers. The House continued to invest in production capacities and in its distribution network in line with its omnichannel strategy, thanks to its financial independence. The House, firmly rooted and inspired by its heritage, is supported by the excellence of its craftsmanship, its creative freedom and innovation, its attachment to savoir-faire and entrepreneurial spirit. The crisis has accelerated several major issues related to social and environmental responsibility, the positive dynamics of the Asian market and the digitisation of lifestyles. Firmly believing that there can be no creation of economic value and long-term development without creation of social and societal value and without environmental responsibility, Hermès is committed to leaving a positive footprint on the world. Our objects are designed and manufactured to last, to be repaired and to be passed on. Creativity and innovation offer a capacity for permanent reinvention. With more than 60% integrated production, firmly rooted in France with 80% of the objects manufactured in the country, and an exclusive distribution network, Hermès has proved its flexibility. The House will continue to expand, affirming the uniqueness of its style and offering rich and innovative collections. 2021 will be marked by the development of new materials that renew and complement the work of the most beautiful materials, and by new objects. Among the new products, there will be the launch of RMS luggage. The new H24 fragrance for men and the H08 men’s watch will enrich the House’s offering. The Beauty métier , successfully launched in 2020 and will continue its roll-out with the launch of limited series of lipsticks and with Rose Hermès , a collection of natural blushers and natural pink lipsticks. These investments reinforce the Group’s commitment to the search for the finest materials in a responsible approach. The exclusive and geographically balanced distribution network expanded its omnichannel offering this year. Hermès has been able to flexibly support the digitisation of uses, while continuing to nurture ties with its particularly loyal local customers. The Group’s performance reflects the

40 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL