Hermès // 2021 Universal Registration Document

1

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

HERMÈS HORIZONS

Efforts to continuously improve the quality of supplies continued throughout the year in the three exotic leathers, calfskin and goatskin sectors. Procurement, particularly in porosus, is reaping the benefits of several years of investment and refinement of savoir-faire . In the calf sector, joint initiatives with Hermès partners to promote the quality of materials and animal welfare have been consolidated. Lastly, following the acquisition of the Mégisserie Jullien in 2020, the division took direct control of its goat leather purchasing at the beginning of the year. The Tanneries division is committed to ensuring that it always acts responsibly, in line with Hermès’ ethical and sustainable development values. Hence, it only sells exotic hides where the source is perfectly traced and audited, and refrains from dealing in certain species or sectors, if necessary. In 2021, the division continued to implement the unit traceability of calf hides. It has also developed a standard in the lizard sector with experts to ensure the compliance of its supplies. In addition, it supports external initiatives and scientific collaborations aimed at improving the standards of each sector that is subject to regular audits. True to its strategy of excellence and operational control, the division continues to adjust its offering and develop new tanning processes. Thus, this year, the Box coloured bag, the calfskin lining and the enhanced lizard offer have had significant success. Similarly, a range of leathers tanned without metal, boasting new finishes, is attracting growing interest. Finally, keen to broaden its offering and be ever more innovative, the division worked on the industrialisation of Sylvania , an innovative material based on the use of fungal threads. Optimising the use of materials is also at the heart of the division’s objectives. As in 2019 and 2020, joint teamwork with the craftsmanship division and the Group’s various métiers continued successfully. In the same vein, efforts to innovate and digitise the business are progressively improving knowledge of production parameters and facilitating the response to customer demand for finished products. In 2021, the first phase of the renovation of the Tanneries du Puy was completed. The renovation of the wastewater treatment plant on this site and the second phase of the renovation of the buildings are under study and will be carried out in the coming years. In the United States, the division relocated its raw hide inspection centre to Hammond, previously located in Lafayette. This provides better synergy with farms and more efficient logistical processing of flows between the United States and Europe. Lastly, in Australia, construction of the new farm began in 2020 and will continue in 2022. This investment incorporates the lessons and savoir-faire of eight years of research and development of the best breeding standards, with in particular the design of new tanks and an optimised layout. This project also has a significant ambition in terms of sustainable development, for optimization of resources and involvement of local stakeholders.

1.6.7.6

The creation and manufacture of exclusive bespoke objects have been central to the Hermès story since its very beginnings. Today, this service is performed by Hermès Horizons, which regularly explores new creative visions, exceptional materials and savoir-faire , to bring its customers’ dreams to life. Fantasy, technicity and wonderment are an everyday feature in the Pantin and Faubourg Saint-Honoré workshops, where exclusive stories in leather goods or the interior design of vintage cars or yachts are written, but also, on occasion, unexpected objects such as jukeboxes, bikes or paddle boards. This burgeoning activity, which is available to customers in all Hermès stores, builds on the creative wealth of the House and the virtuosity of our craftspeople’s hands. Petit h offers a unique design approach based on materials and objects no longer used by other Hermès sectors. These elements, grouped together in the same workshop, are made available to guest designers and the House’s craftspeople, who combine their talents and savoir-faire to offer them a new life. This is called reverse creation. This approach resonates through its original distribution method, based on a permanent space in a Paris store, a presence on the e-commerce site, and pop-up sales organised in Hermès stores throughout the world. In 2021, petit h moved temporarily to the Faubourg Saint-Honoré store for a period of eight months. The métier is illustrated by joyful and unique themes such as the new multi-material and multi-functional dog families (tray holder, umbrella holder, newspaper holder, etc.), but also creations around pommels, or the world of the hardware store. In September, a new page was turned with the installation of petit h in its new setting in the Hermès store on Rue de Sèvres. A unique place, with a mischievous and modular spirit, like a theatre stage with multiple sets, open to a large shop window, which transforms and surprises according to the creative proposals. The materials and savoir-faire of petit h are revealed around creations of earth or clay, crystal, leather, porcelain or silk. PETIT H 1.6.7.7 The J3L group specialises in the development, manufacture and sale of high-end metal parts. It supports all of the House’s business lines, from the design phase to the production of finished parts. 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. METAL PARTS (J3L) 1.6.7.8

34 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL