Hermès // 2021 Universal Registration Document

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

WATCHES 1.6.6 With consolidated revenue of €337 million in 2021, an increase of 73% at constant exchange rates, the Watches division accounts for 4% of the Group’s sales. Established in Biel in 1978, Hermès has become a genuine watchmaker in 43 years, employing more than 300 people in its manufacturing division in Switzerland. Hermès now manufactures almost all of its watches, movements and components in-house. Its creativity remains Parisian in nature and affirms its unique style, which is invigorated by the other métiers in the House. Its savoir-faire increasingly gives Hermès a singular voice in the watch industry. In 2021, sales growth was particularly strong in Hermès stores, thanks to the dynamism of the Asian and American markets. Sales to external watch retailers remained stable, despite the low level of traffic at airport points of sale. Hermès continued to reduce the number of these retailers this year in order to make its distribution even more selective. In April, during the second digital edition of the Watches and Wonders show in Geneva, held at the Bâtiment des Forces Motrices, Hermès wanted to have a physical presence despite the still tense health context. The métier teams were able to receive European journalists and Swiss customers. They also organized numerous live conferences to present the news to journalists in multiple countries and answer their questions. Hermès once again powerfully expressed the originality of its voice within the restricted circle of haute horlogerie players, by affirming its territory of expression: a unique relationship with time, full of fantasy and emotion, a time with which we play without wanting to control it. This message was supported by the Le Temps, un objet Hermès print and digital advertising campaign. The year 2021 was marked by several major product launches, which met with strong and immediate commercial success. In April, the Salon de Genève was an opportunity to present the new Hermès H08 men’s line, with its resolutely contemporary sporting spirit, anchored in the world of Véronique Nichanian. Comfortable, light, recognisable by its unique design combining technological materials, surface effect and atypical shapes, it is a companion object for every moment of the day. It is available in three case variations (titanium, two-tone DLC titanium, graphene and ceramic composite), combined with three strap materials (titanium, technical strap and rubber) in different colours. New versions of two Arceau complications confirmed their success in 2021. The Arceau L’heure de la Lune watch offers a quirky take on the classic moon-phase complication, by reversing the usual relationship between the functions of the watch and the complication. As for the Arceau Tourbillon Répétition minutes , it shows the movement through the dial cut into the shape of a horse’s head, a motif that can also be found on the back of the bridges and plates.

The feminine lines have also been expanded, in particular the Faubourg line, a true watchmaking jewel, which has seen spectacular growth. Its new expression Faubourg Polka had a very promising launch at the Watches and Wonders trade show. As for the Nantucket feminine line, it has been enhanced with a metal bracelet in steel or rose gold, offering a very feminine and elegant alternative to the traditional leather bracelet. Sales also benefited from the strong results worldwide of the indispensable Cape Cod and Heure H lines, whose constant renewal attracts a growing number of enthusiasts: they have been able to discover precious, technically innovative and occasionally bejewelled expressions of these emblematic and imaginative lines. Finally, the collection of exceptional pieces developed by Hermès confirmed its great success once again this year, with watches showcasing the House’s artistic métiers and watchmaking and jewellery savoir-faire ( i.e. Faubourg , Klikti , Arceau , Médor , etc.). 1.6.7 In 2021, Other products generated revenue of €279 million, representing a 29% increase at constant exchange rates and accounting for 3% of the Group’s total revenue. One of the highlights was the re-release of a legendary work, the vase-sculpture presented in 1937 at the Universal Exhibition in Paris, signed by Jean Sala, author of numerous Art Deco pieces and whose personality marked the production unit in the 1930s. A true technical achievement, this vase is now kept in the collections of the National Museum of Decorative Arts. Saint-Louis repeated the feat by reissuing it in 18 numbered copies. More than 10 craftspeople are needed to blow and hand carve this majestic sculpture made in four parts, entirely covered with a network of cuts whose graphic lines capture the light. The lighting offer is another heritage area of the crystal works, since the first chandeliers appeared at Saint-Louis in the mid-nineteenth century, in response to special orders from the Royal Courts. Since then, the production unit continues to revisit its classics. Thus the Royal collection, which offers more than 50,000 customisation possibilities (sizes, decorations, colours), this year welcomed a new option: a large illuminated bowl to diffuse the light in all directions. Customers were able to discover these new products, alongside the 2021 editions of vintage paperweights, during virtual presentations filmed in the heart of the production unit. OTHER PRODUCTS AND BRANDS CRISTALLERIES SAINT-LOUIS 1.6.7.1 In 2021, Saint-Louis gave centre stage to the exceptional pieces of its portfolio and continued to expand its lighting offer.

32 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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