Hermès // 2021 Universal Registration Document

PRESENTATION OF THE GROUP AND ITS RESULTS OUTLOOK

OUTLOOK 1.10 AFR

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sites and will become the House’s 23 rd and 24 th leather goods workshops. The House’s other métiers will continue to use their extensive savoir-faire to design and create exceptional objects. True to its commitment as a responsible employer, Hermès will strengthen its teams in all areas in 2022, and the Group will step up its efforts in terms of social, societal and environmental performance. Hermès will pursue its commitment to the development of its employees, their well-being, and the consideration of diversity in its activities. The enhancement and transmission of savoir-faire will remain at the heart of the priorities of the métiers , by capitalizing in particular on the internal apprentice training centre (CFA) dedicated to leather goods workers. The control of supply chains, guaranteeing the quality of our materials, will be strengthened by the implementation of detailed “CSR briefs” on social, environmental and ethics issues. Through the use of life cycle analysis, eco-design, materials optimisation, the circular economy and recycling of unsold items, the Group will also continue its efforts in favour of a more careful use of resources and waste management. More broadly, the Group will intensify its work to promote biodiversity, by capitalizing on the results of its impact analysis using the Global Biodiversity Score (GBS) method. Hermès will pursue its work in favour of animal well-being, with the roll-out of a formal charter with its partners in 2021. With ambitious carbon targets the Group will continue to develop numerous operational projects, both within its sites (industrial equipment, real estate) and with its partners, in line with the recommendations of the TCFD. At the same time, Hermès will increase its contribution to the implementation of carbon offset systems consistent with a net zero carbon target in 2050, supported by Livelihoods’ long-term projects. Hermès will strengthen its role as a socially responsible company alongside its suppliers, which it will continue to support and with the communities in which it operates, whether through site openings, job creation, the development of vocational training centres for its craftsmanship métiers , and contributions to the social and cultural life of the regions. Relations with all stakeholders will be developed. For 2022, it is still difficult to assess the impacts of the Covid-19 pandemic. The highly integrated craftsmanship model and balanced distribution network, as well as the creativity of the collections and the loyalty of customers allow the Group to approach the future with confidence. In the medium term, despite the economic, geopolitical and monetary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates. Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over savoir-faire and singular communication.

In an uncertain environment, Hermès has shown its solidity and performance, with exceptional results in 2021. Asia and America recorded the strongest growth, both compared to 2020 and 2019, and Europe returned to growth in the second half compared to 2019. The loyalty of its local customers resulted in strong momentum across all métiers. Hermès, firmly rooted and inspired by its heritage, is supported by its craftsmanship, its creative freedom and innovation, its attachment to savoir-faire and entrepreneurial spirit. 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. Strengthened by the ongoing dialogue between creation and excellence in savoir-faire, the House will continue to blossom, affirming the uniqueness of its style. The year 2022 will be marked by the development of new collections based on the most beautiful materials and an abundant and innovative creativity that is constantly renewed. Among the new products, the Perfume and Beauty métier will launch Plein Air , its fourth sphere being applied to foundation, Hermès Maison will present the Soleil d’Hermès tableware, and Jewellery will reveal the seventh haute joaillerie collection. Watches will also propose a new watch complication, Arceau , the time traveller. The integrated and exclusive distribution network will continue to strengthen its omnichannel offering. Hermès has been able to flexibly support the digitisation of uses, while continuing to nurture ties with its particularly loyal local customers, with reinvented formats. The qualitative development of the store network will continue in 2022, with projects to open, expand or renovate the Flagship stores at 706 Madison in New York (United States), Barcelona (Spain), Korea, Shanghai and Wuhan (China) and Doha (Qatar). Priority will be given to expansions and renovations, in some 20 stores around the world. The House will develop its digital strategy, via an increasingly broad range of online products and services, with the aim of increasing traffic and attracting new customers. Faced with the House’s particularly strong momentum, the development of production capacities will continue across all métiers, and in particular in Silk, with the expansion of the Pierre-Bénite textile production site near Lyon, in Jewellery or Home. The high demand for Leather Goods & Saddlery will be supported by the ramp-up of new sites as part of regional expertise hubs. With more than 4,300 leather goods craftspeople in France today, the Group will continue its objective of opening an average of one new production unit per year, representing around 300 new employees. Following the inauguration of the Guyenne and Montereau production units in 2021, three other sites are under development in Louviers (Eure), Tournes and Cliron (Ardennes) and Riom (Puy-de-Dôme, where recruitment and training are ongoing. Two new projects for 2025 and 2026, located in L’Isle-d’Espagnac (Charente) and Loupes (Gironde), join the above three

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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