Hermès // CSR Extract 2023

CONTENTS

MESSAGE FROM THE EXECUTIVE MANAGEMENT

4

HIGHLIGHTS 2023

6

1

5

AFR

PRESENTATION OF THE GROUP AND ITS RESULTS

CONSOLIDATED FINANCIAL STATEMENTS

415 416 416 417 418 419 420

9

5.1 Consolidated income statement

1.1 Six generations of craftspeople

10 13 14 17 23 26 35 39 41 42 44

5.2 Consolidated statement of comprehensive income

1.2 Group governance

5.3 Consolidated balance sheet

1.3 Strategy

5.4 Consolidated statement of changes in equity 5.5 Consolidated statement of cash flows 5.6 Notes to the consolidated financial statements 5.7 Statutory Auditors’ report on the consolidated financial statements

1.4 Simplified organisation chart and Group locations 1.5 Key financial and non ‑ financial figures 1.6 Revenue and activity by métier 1.7 Revenue and activity by geographical area 1.8 Comments on the consolidated financial statements 1.9 Significant events since the end of the financial year

AFR AFR AFR AFR AFR AFR

460

6

PARENT COMPANY FINANCIAL STATEMENTS

AFR

1.10 Outlook

467 468 469 470 470 471 486 487

1.11 Fondation d’entreprise

6.1 Income statement

6.2 Balance sheet

2

6.3 Changes in equity

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE

NFPS

47 51 71 99

6.4 Statement of cash flows

6.5 Notes to the financial statements 6.6 Table of results over the last five years 6.7 Information on payment terms

2.1 Business model 2.2 People: teams 2.3 People: savoir ‑ faire

6.8 Other information on the parent company financial statements 6.9 Statutory Auditors’ report on the financial statements

2.4 The planet: raw materials 2.5 The planet: environment

113 153 201 217 248

488 489

2.6 Communities: suppliers & partners

2.7 Communities: stakeholders and transparency

2.8 Ethics – Compliance

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL

2.9 Report of one of the Statutory Auditors, appointed as independent third party, on the verification of the consolidated non ‑ financial statement 2.10 Reasonable assurance report from one of the Statutory Auditors on the Identified Sustainability Information of Hermès International’s non ‑ financial performance statement as at/ for the year ended December 31st, 2023

495 496 505 517 518 522

7.1 Presentation of Hermès International

262

7.2 Informations on share capital and shareholders

AFR

7.3 Dividend policy

7.4 Stock market information 7.5 Shareholder information

269

3

AFR AFR

CORPORATE GOVERNANCE

273 275 275 278 281 293 329 339 347 349 373

8

COMBINED GENERAL MEETING OF 30 APRIL 2024

Supervisory Board report on corporate governance

527 528 530

3.1 The Company’s corporate governance code 3.2 Ambitious and balanced governance 3.3 Administrative and management bodies 3.4 Organisation of the Supervisory Board 3.5 Functioning of the Supervisory Board

8.1 Agenda

8.2 Explanatory statements and draft resolutions 8.3 Supervisory Board report to the Combined General Meeting of 30 April 2024

551 553

8.4 Statutory Auditors’ reports

3.6 Specialised committees

3.7 Evaluation of the Supervisory Board and Committees 3.8 Compensation and benefits of Corporate Officers

9

ADDITIONAL INFORMATION

561

9.1 Persons responsible for the Universal Registration Document 9.2 Persons responsible for auditing the financial statements

AFR

3.9 Other information

562 563 563 564 566 581

3.10 Other information from the Executive Management report

AFR

380

9.3 Consultation of regulatory information 9.4 Information included by reference

4

RISK FACTORS AND MANAGEMENT

383 384 404 405

9.5 Cross ‑ reference tables

AFR

4.1 Risk factors

9.6 Glossary

4.2 Insurance policy and risk hedging

4.3 Risk management, internal control and internal audit

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.