MESSAGE FROM THE EXECUTIVE MANAGEMENT | 5 |
HIGHLIGHTS 2021 | 6 |
1. PRESENTATION OF THE GROUP AND ITS RESULTS | 9 |
1.1 SIX GENERATIONS OF CRAFTSPEOPLE | 10 |
1.2 GROUP GOVERNANCE | 13 |
1.3 STRATEGY | 14 |
1.4 SIMPLIFIED ORGANIZATION CHART AND GROUP LOCATIONS | 17 |
1.4.1 SUMMARY DESCRIPTION OF THE GROUP AS AT 31 DECEMBER 2021 | 17 |
1.4.2 PRODUCTION SITES | 18 |
1.4.3 DISTRIBUTION NETWORK | 20 |
1.4.4 REAL ESTATE | 23 |
1.5 KEY FINANCIAL FIGURES | 24 |
1.5.1 REVENUE BY MÉTIER FOR 2021 (2020) | 24 |
1.5.2 REVENUE BY GEOGRAPHICAL AREA FOR 2021 (2020) | 24 |
1.5.3 KEY CONSOLIDATED DATA | 24 |
1.6 REVENUE AND ACTIVITY BY MÉTIER | 26 |
1.6.1 LEATHER GOODS & SADDLERY | 26 |
1.6.2 READY-TO-WEAR AND ACCESSORIES | 28 |
1.6.3 SILK AND TEXTILES | 29 |
1.6.4 OTHER HERMÈS SECTORS | 30 |
1.6.5 PERFUME AND BEAUTY | 31 |
1.6.6 WATCHES | 32 |
1.6.7 OTHER PRODUCTS AND BRANDS | 32 |
1.6.8 GROUP PARTNERSHIPS | 35 |
1.7 REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA | 35 |
1.7.1 EUROPE | 35 |
1.7.2 ASIA-PACIFIC | 36 |
1.7.3 AMERICAS | 37 |
1.7.4 DIGITAL STRATEGY | 37 |
1.8 COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS | 38 |
1.8.1 INCOME STATEMENT | 38 |
1.8.2 CASH FLOWS AND INVESTMENTS | 39 |
1.8.3 FINANCIAL POSITION | 39 |
1.9 SIGNIFICANT EVENTS SINCE THE END OF THE FINANCIAL YEAR | 40 |
1.10 OUTLOOK | 41 |
1.11 FONDATION D’ENTREPRISE | 42 |
2. CORPORATE SOCIAL RESPONSIBILITY | 45 |
2.1 BUSINESS MODEL | 47 |
2.1.1 CONCRETE LONG-TERM COMMITMENTS | 52 |
2.1.2 AN AMBITIOUS AND STRUCTURING CSR STRATEGY | 53 |
2.1.3 MATERIALITY ANALYSIS | 54 |
2.1.4 ANALYSIS OF NON-FINANCIAL RISKS | 56 |
2.1.5 CSR STRATEGY | 57 |
2.1.6 GOVERNANCE OF THE CSR APPROACH | 61 |
2.2 PEOPLE: TEAMS | 67 |
2.2.1 FULFILMENT AND WELL-BEING | 70 |
2.2.2 DIVERSITY AND INCLUSION | 79 |
2.3 PEOPLE: SAVOIR-FAIRE | 89 |
2.3.1 GENERAL INFORMATION ABOUT EMPLOYEES | 92 |
2.3.2 ACQUISITION, ENRICHMENT AND TRANSMISSION | 92 |
2.3.3 PRESERVATION OF CRAFTSMANSHIP HERITAGE | 100 |
2.4 THE PLANET: RAW MATERIALS | 109 |
2.4.1 ECODESIGN AND CIRCULAR ECONOMY | 112 |
2.4.2 SUPPLY CHAINS | 117 |
2.5 THE PLANET: ENVIRONMENT | 129 |
2.5.1 ENVIRONMENTAL ACTIONS FRAMEWORK | 132 |
2.5.2 RESOURCE MANAGEMENT | 133 |
2.5.3 REDUCE THE FOOTPRINT AND CONTROL WASTE AND DISCHARGES | 139 |
2.5.4 CLIMATE CHANGE | 144 |
2.5.5 BIODIVERSITY | 154 |
2.6 COMMUNITIES: SUPPLIERS & PARTNERS | 167 |
2.6.1 SUPPORT AND CONTROL | 170 |
2.6.2 RESPONSIBLE PRACTICES WITH SOCIALLY SUPPORTED ORGANISATIONS | 176 |
2.7 COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY | 181 |
2.7.1 REGIONAL RESPONSIBILITY IN FRANCE | 184 |
2.7.2 SOCIALLY RESPONSIBLE COMPANY | 186 |
2.8 ETHICS – COMPLIANCE | 198 |
2.8.1 PROMOTING ETHICS | 198 |
2.8.2 THE FIGHT AGAINST CORRUPTION | 202 |
2.8.3 PERSONAL DATA PROTECTION | 205 |
2.8.4 DUTY OF CARE | 206 |
2.9 REPORT BY ONE OF THE STATUTORY AUDITORS, APPOINTED AS AN INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED NON-FINANCIAL INFORMATION STATEMENT INCLUDED IN THE MANAGEMENT REPORT | 212 |
2.10 REASONABLE ASSURANCE REPORT BY ONE OF THE STATUTORY AUDITORS ON A SELECTION OF ENVIRONMENTAL AND SOCIAL INFORMATION PUBLISHED IN THE MANAGEMENT REPORT OF | 217 |
3.CORPORATE GOUVERNANCE | 221 |
SUPERVISORY BOARD CORPORATE GOVERNANCE REPORT | 223 |
3.1 THE COMPANY’S CORPORATE GOVERNANCE CODE | 223 |
3.1.1 CORPORATE GOVERNANCE PRINCIPLES APPLIED | 223 |
3.1.2 PROVISIONS OF THE AFEP-MEDEF CORPORATE GOVERNANCE CODE NOT APPLIED AND THOSE NEWLY COMPLIED WITH | 223 |
3.2 AMBITIOUS AND BALANCED GOVERNANCE | 226 |
3.2.1 ORGANISATIONAL STRUCTURE OF HERMÈS INTERNATIONAL AS AT 31 DECEMBER 2021 | 226 |
3.2.2 TWO TYPES OF PARTNERS | 227 |
3.2.3 GOVERNANCE BY NATURE DISSOCIATED | 228 |
3.3 ADMINISTRATIVE AND MANAGEMENT BODIES | 229 |
3.3.1 THE ACTIVE PARTNER AND ITS EXECUTIVE MANAGEMENT BOARD | 229 |
3.3.2 EXECUTIVE MANAGEMENT | 230 |
3.3.3 GOVERNING BODIES | 234 |
3.3.4 NON-DISCRIMINATION AND DIVERSITY POLICY | 238 |
3.3.5 SUCCESSION PLAN FOR SENIOR EXECUTIVES | 240 |
3.4 ORGANISATION OF THE SUPERVISORY BOARD | 241 |
3.4.1 KEY DATA ON THE SUPERVISORY BOARD AS AT 31 DECEMBER 2021 | 241 |
3.4.2 APPLICABLE PRINCIPLES | 242 |
3.4.3 DIVERSITY POLICY APPLIED WITHIN THE SUPERVISORY BOARD | 244 |
3.4.4 SUCCESSION PLAN FOR THE CHAIRMAN OF THE SUPERVISORY BOARD | 246 |
3.4.5 COMPOSITION OF THE SUPERVISORY BOARD | 247 |
3.4.6 INDEPENDENCE OF THE MEMBERS OF THE SUPERVISORY BOARD | 251 |
3.4.7 SUPERVISORY BOARD ETHICS | 253 |
3.4.8 INFORMATION ON SITTING MEMBERS OF THE SUPERVISORY BOARD | 256 |
3.5 FUNCTIONING OF THE SUPERVISORY BOARD | 276 |
3.5.1 ROLE OF THE SUPERVISORY BOARD | 276 |
3.5.2 MEETINGS OF THE SUPERVISORY BOARD AND THE JOINT COUNCIL | 277 |
3.5.3 INFORMATION AND TRAINING OF THE SUPERVISORY BOARD | 278 |
3.5.4 MAIN DUTIES OF THE SUPERVISORY BOARD AND WORK CARRIED OUT IN 2021 | 281 |
3.5.5 ETHICS AND COMPLIANCE – PERSONAL DATA PROTECTION | 282 |
3.5.6 CORPORATE SOCIAL RESPONSIBILITY (CSR) | 283 |
3.5.7 COMPENSATION AND REIMBURSEMENT OF EXPENSES | 283 |
3.6 SPECIALISED COMMITTEES | 284 |
3.6.1 APPLICABLE PRINCIPLES | 284 |
3.6.2 CAG-CSR COMMITTEE | 285 |
3.6.3 AUDIT AND RISK COMMITTEE | 288 |
3.7 EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES | 290 |
3.7.1 METHODOLOGY | 290 |
3.7.2 CHANGES SINCE THE LAST EVALUATIONS | 291 |
3.7.3 ANNUAL DISCUSSION IN 2021 ON THE FUNCTIONING OF THE BOARD | 292 |
3.8 COMPENSATION AND BENEFITS OF CORPORATE OFFICERS | 293 |
3.8.1 COMPENSATION POLICY FOR THE EXECUTIVE CHAIRMEN (EXECUTIVE CORPORATE OFFICERS) AND MEMBERS OF THE SUPERVISORY BOARD (NON-EXECUTIVE CORPORATE OFFICERS) | 293 |
3.8.2 OVERVIEW OF COMPENSATION AND BENEFITS OF ALL KINDS FOR CORPORATE OFFICERS | 303 |
3.8.3 ALLOCATION OF FREE SHARES AND STOCK OPTIONS | 308 |
3.8.4 TABLES DRAWN UP IN ACCORDANCE WITH AMF POSITION-RECOMMENDATION DOC 2021-02 (§ 13.3) OF 5 JANUARY 2022 ON THE PRESENTATION OF COMPENSATION | 309 |
3.9 OTHER INFORMATION | 315 |
3.9.1 AGREEMENTS | 315 |
3.9.2 CAPITAL STRUCTURE AND FACTORS LIABLE TO AFFECT THE OUTCOME OF A PUBLIC OFFERING | 318 |
3.9.3 SPECIAL CONDITIONS FOR ATTENDING GENERAL MEETINGS | 319 |
3.9.4 SUMMARY TABLE OF THE USE OF FINANCIAL DELEGATIONS OF AUTHORITY | 321 |
3.10 OTHER INFORMATION FROM THE EXECUTIVE MANAGEMENT REPORT | 324 |
3.10.1 INTERESTS OF CORPORATE OFFICERS AND EXECUTIVE COMMITTEE MEMBERS IN THE SHARE CAPITAL | 324 |
3.10.2 DECLARATIONS CONCERNING CORPORATE OFFICERS AND THE EXECUTIVE COMMITTEE | 325 |
4. RISK FACTORS AND MANAGEMENT | 327 |
4.1 RISK FACTORS | 328 |
4.1.1 RISKS RELATED TO STRATEGY AND OPERATIONS | 330 |
4.1.2 INDUSTRIAL RISKS | 335 |
4.1.3 LEGAL AND REGULATORY RISKS | 339 |
4.1.4 RISKS RELATED TO SOCIAL, SOCIETAL AND ENVIRONMENTAL RESPONSIBILITY | 340 |
4.1.5 FINANCIAL RISKS | 344 |
4.2 INSURANCE POLICY AND RISK HEDGING | 347 |
4.3 RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT | 348 |
4.3.1 A DEMANDING CONTROL ENVIRONMENT | 348 |
4.3.2 COMMITTED PARTIES RESPONSIBLE FOR RISK MANAGEMENT AND CONTROL | 348 |
4.3.3 A CONTROLLED RISK MANAGEMENT SYSTEM | 351 |
4.3.4 A MATURE INTERNAL CONTROL SYSTEM | 352 |
4.3.5 AN AGILE INTERNAL AUDIT SYSTEM | 355 |
5. CONSOLIDATED FINANCIAL STATEMENTS | 359 |
5.1 CONSOLIDATED INCOME STATEMENT | 360 |
5.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 360 |
5.3 CONSOLIDATED BALANCE SHEET | 361 |
5.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 362 |
5.5 CONSOLIDATED STATEMENT OF CASH FLOWS | 363 |
5.6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 364 |
5.7 5.7 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS | 404 |
6. PARENT COMPANY FINANCIAL STATEMENTS | 411 |
6.1 INCOME STATEMENT | 412 |
6.2 BALANCE SHEET | 413 |
6.3 CHANGE IN EQUITY | 414 |
6.4 STATEMENT OF CASH FLOWS | 414 |
6.5 NOTES TO THE FINANCIAL STATEMENTS | 415 |
6.6 TABLE OF RESULTS OVER THE LAST FIVE YEARS | 430 |
6.7 INFORMATION ON PAYMENT TERMS | 431 |
6.8 OTHER INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS | 432 |
6.8.1 INFORMATION ON BRANCHES | 432 |
6.8.2 INFORMATION ON THE AMOUNT OF INTER-COMPANY LOANS | 432 |
6.8.3 EQUITY INVESTMENTS IN COMPANIES HAVING THEIR REGISTERED OFFICE IN FRANCE (ARTICLE L. 233-6 OF THE FRENCH COMMERCIAL CODE (CODE DE COMMERCE)) | 432 |
6.9 STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS | 433 |
7. INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL | 439 |
7.1 PRESENTATION OF HERMÈS INTERNATIONAL | 440 |
7.1.1 GENERAL INFORMATION ABOUT HERMÈS INTERNATIONAL | 440 |
7.1.2 ROLE OF HERMÈS INTERNATIONAL | 440 |
7.1.3 COMMENTED ARTICLES OF ASSOCIATION OF HERMÈS INTERNATIONAL | 440 |
7.1.4 SIMPLIFIED ORGANISATION CHART AND MAIN SUBSIDIARIES | 448 |
7.1.5 PRINCIPAL FLOWS BETWEEN HERMÈS INTERNATIONAL AND THE MAIN SUBSIDIARIES | 449 |
7.1.6 HERMÈS GROUP TAX POLICY | 449 |
7.1.7 INVESTMENTS | 449 |
7.2 INFORMATION ON SHARE CAPITAL AND SHAREHOLDERS | 450 |
7.2.1 INFORMATION ON SHARE CAPITAL | 450 |
7.2.2 INFORMATION ON SHAREHOLDERS | 450 |
7.2.3 TRANSACTIONS PERFORMED BY CORPORATE OFFICERS AND THOSE CLOSE TO THEM ON THE SHARES OF THE COMPANY | 457 |
7.2.4 STOCK MARKET ETHICS CODE | 458 |
7.2.5 MATERIAL CONTRACTS, SHAREHOLDER PACTS AND AGREEMENTS | 459 |
7.3 DIVIDEND POLICY | 461 |
7.3.1 PRINCIPLES | 461 |
7.3.2 PROPOSAL SUBMITTED TO THE 2022 GENERAL MEETING | 461 |
7.4 STOCK MARKET INFORMATION | 462 |
7.4.1 SUMMARY OF STOCK MARKET INFORMATION | 462 |
7.4.2 HISTORY OF MONTHLY TRANSACTIONS | 462 |
7.4.3 HERMÈS SHARE PRICE HISTORY | 463 |
7.5 SHAREHOLDER INFORMATION | 466 |
7.5.1 RELATIONS WITH SHAREHOLDERS | 466 |
7.5.2 SECURITIES SERVICE | 466 |
7.5.3 DOCUMENTS AVAILABLE TO THE PUBLIC | 466 |
7.5.4 BECOMING A HERMÈS INTERNATIONAL SHAREHOLDER | 466 |
7.5.5 DIALOGUE WITH SHAREHOLDERS AND THE FINANCIAL COMMUNITY IN 2021 | 467 |
7.5.6 FINANCIAL CALENDAR FOR 2022 | 468 |
7.5.7 REGULATED INFORMATION | 468 |
7.5.8 OBLIGATIONS OF DECLARATION OF THRESHOLD CROSSINGS AND NOMINATIVE REGISTRATION | 468 |
8. COMBINED GENERAL MEETING OF 20 APRIL 2022 | 471 |
8.1 AGENDA | 472 |
8.1.1 ORDINARY BUSINESS | 472 |
8.1.2 EXTRAORDINARY BUSINESS | 473 |
8.2 EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS | 474 |
8.2.1 ORDINARY BUSINESS | 474 |
8.2.2 EXTRAORDINARY BUSINESS | 490 |
8.3 SUPERVISORY BOARD REPORT TO THE COMBINED GENERAL MEETING OF 20 APRIL 2022 | 496 |
8.4 STATUTORY AUDITORS’ REPORTS | 498 |
8.4.1 STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS | 498 |
8.4.2 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS | 498 |
8.4.3 STATUTORY AUDITORS’ SPECIAL REPORT ON RELATED-PARTY AGREEMENTS | 499 |
8.4.4 REPORT BY ONE OF THE STATUTORY AUDITORS, DESIGNATED AS AN INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION CONTAINED IN THE MANAGEMENT REPORT | 501 |
8.4.5 STATUTORY AUDITORS’ REPORT ON THE SHARE CAPITAL REDUCTION (SEVENTEENTH RESOLUTION) | 501 |
8.4.6 STATUTORY AUDITORS’ REPORT ON THE AUTHORISATION TO GRANT SHARE PURCHASE OPTIONS (EIGHTEENTH RESOLUTION) | 502 |
8.4.7 STATUTORY AUDITORS’ REPORT ON THE AUTHORISATION TO GRANT EXISTING SHARES FREE OF CONSIDERATION (NINETEENTH RESOLUTION) | 503 |
9. ADDITIONAL INFORMATION | 505 |
9.1 9.1 PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT | 506 |
9.1.1 NAME AND FUNCTION OF PERSONS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THE UNIVERSAL REGISTRATION DOCUMENT | 506 |
9.1.2 CERTIFICATION BY THE PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT | 506 |
9.2 PERSONS RESPONSIBLE FOR AUDITING THE FINANCIAL STATEMENTS | 507 |
9.3 CONSULTATION OF REGULATORY INFORMATION | 507 |
9.4 INFORMATION INCLUDED BY REFERENCE | 507 |
9.5 CROSS REFERENCE TABLES | 510 |
9.5.1 CROSS-REFERENCE TABLE FOR THE ANNUAL FINANCIAL REPORT | 513 |
9.5.2 CROSS-REFERENCE TABLE FOR THE MANAGEMENT REPORT | 514 |
9.5.3 CROSS-REFERENCE TABLE FOR THE SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE | 517 |
9.5.4 CROSS-REFERENCE TABLE FOR THE UNIVERSAL REGISTRATION DOCUMENT | 519 |
9.5.5 CROSS-REFERENCE TABLE FOR THE NON-FINANCIAL PERFORMANCE STATEMENT | 525 |
9.5.6 TCFD CROSS-REFERENCE TABLE | 526 |
9.6 GLOSSARY | 527 |