HERMÈS - 2018 Registration document

5 CONSOLIDATED FINANCIAL STATEMENTS AFR 237 5.1 Consolidated statement of profit or loss for 2018 238 5.2 Consolidated statement of comprehensive income for 2018 239 5.3 Consolidated statement of financial position as at 31 December 2018 240 5.4 Consolidated statement of changes in equity as at 31 December 2018 242 5.5 Consolidated statement of cash flows for 2018 244 5.6 Notes to the consolidated financial statements 246 5.7 Statutory auditors’ report on the consolidated financial statements 289

MESSAGE FROM THE EXECUTIVE MANAGEMENT

5 6

HIGHLIGHTS 2018

1 OVERVIEW OF THE GROUP

9

Stages of the Group’s history

11 15 16 18 26 32 35 35 36

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9

Group Governance

Key figures

Activity by métier AFR

Activity by geographic area AFR

Simplified Group organisational chart

Property

Fondation d’entreprise NFPS

6 PARENT COMPANY FINANCIAL STATEMENTS AFR

Risk factors AFR NFPS

295 296

1.10 Internal control and risk management procedures relating to the preparation and processing of accounting and financial information

Statement of profit or loss for 2018

6.1 6.2

Statement of financial position as at 31 December 2018

48

297 298 299 300 314 315 316 320

Changes in equity in 2018

6.3 6.4 6.5 6.6 6.7 6.8 6.9

Statement of cash flows for 2018 Notes to the financial statements

2 CORPORATE SOCIAL RESPONSIBILITY AFR NFPS 51 2.1 Business model 53 2.2 People: savoir-faire 61 2.3 People: teams 69 2.4 Planet: raw materials 85 2.5 Planet: environment 91 2.6 Communities: suppliers & partners 111 2.7 Communities: stakeholders and local integration 120 2.8 Report by one of the Statutory Auditors, appointed as independent third party, on the consolidated non-financial performance statement in the Management Report 127

List of investments in subsidiaries and associates as at 31 December 2018 Table of results over the last five financial years

Table of subsidiaries and associates

Information on due dates

6.10 Statutory auditors’ report on the annual financial statements

321

7 INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL

327

Presentation of Hermès International and Émile Hermès SARL Information on share capital and shareholders

7.1

329 340 355 356 360

3 CORPORATE GOVERNANCE

133

7.2 7.3 7.4 7.5

Supervisory Board’s report on corporate governance 135

3.1 3.2 3.3

Dividend policy

Ethics – Compliance NFPS

214

Stock market information Shareholder information

Other information from the executive management report

223

8 COMBINED GENERAL MEETING OF 4 JUNE 2019 363 8.1 Agenda 364 8.2 Purpose and draft resolutions 366 8.3 Supervisory Board report to the Combined General Meeting of 4 June 2019 393 8.4 Statutory Auditors’ reports 395

4 COMMENTS ON THE FINANCIAL YEAR AND OUTLOOK

227

Comments on the consolidated statement of profit or loss Comments on the summary consolidated statement of cash flows

4.1

228

4.2

229 231 231

Creation of value Exceptional events

4.3 4.4 4.5

9 ADDITIONAL INFORMATION

407

Information on the parent company financial statements, on accounts payable due dates, subsidiaries and associates

Persons responsible for the Registration Document AFR

9.1

408 409 409 409 410 417

232 234

Statutory Auditors AFR

9.2 9.3 9.4 9.5 9.6

Outlook

4.6

Regulatory information consultation Information incorporated by reference

Cross-reference tables

Glossary

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The sections of the Annual Financial Report are identified in the contents with the AFR pictogram. Elements constituting the statement of non-financial performance are clearly identified in the contents with the NFPS pictogram.