Hermès - Registration Document 2016

OVERVIEW OF THE GROUP

ACTIVITY BY SECTOR

ACTIVITY BY SECTOR

1.3

1

Changes

2016 CA in millions of euros

2015 CA in millions of euros

2016 mix in %

2015 mix in %

At current exchange rates

At constant exchange rates

Leather Goods and Saddlery Ready-to-wear and accessories

2,604 1,099

50% 21% 10%

2,274 1,101

47% 23% 11%

14.5% (0.1)% (1.1)%

14.0%

0.2%

Silk and textiles

515 336 262 158 228

521 332 241 163 208

(0.8)%

Other Hermès sectors

7% 5% 3% 4%

7% 5% 3% 4%

1.2% 8.5%

1.6% 8.5%

Perfumes Watches

(3.2)%

(3.2)% 10.1%

Other products

9.5% 7.5%

CONSOLIDATED REVENUE

5,202

100%

4,841

100%

7.4%

1.3.1 LEATHER GOODS AND SADDLERY Leather Goods and Saddlery, the original sector of Hermès, encom- passes bags for men and women, clutches, briefcases, luggage, small leather goods, diaries and writing objects, saddles, bridles and a full range of equestrian products and clothing. In2016, this activity represented50%of theGroup’s sales, with revenue of €2,604 million, an increase of 14% at constant exchange rates. Saddlery and leather goods articles are born of an alchemy of authen- tic materials, selected according to rigorous standards, and the skilled hands of the saddler-leather workers, who apply traditional know-how passed down from generation to generation. The time spent by the arti- sans each day patiently crafting and fashioning the raw leather gives these unique objects a distinctive additional measure of soul. Today, production is ensured by over 2,900 saddler-leather workers spread over 15 production units located in Paris, Pantin and various regions across France. In response to sustained demand, in 2016 Hermès began building three new leather goods workshops, in Franche- Comté, Normandy and Limousin. In this way, Hermès reaffirms its com- mitment to regions with a strong manufacturing expertise, and its will to provide quality jobs. These three choices of location have been prepared and implemented in close partnership with the various local stakehol- ders and regional administrative and economic development structures. The house is also continuing to perfect the artisans’ skills and expertise through a range of training and professional qualification programmes. These programmes are delivered within the dedicated in-house Hermès academy, and through a range of partnerships with training structures in the regions concerned.

1.3.1.1 Bags and luggage In 2016, the leather goods and saddlery collections sought a balance between contemporary spirit and a desire to reflect the roots of the house. The Verrou bag, the reinterpretation of a mini clutch created in 1938 by Robert Dumas, embodies the “everyday sublime” via its clasp inspired by a horsebox bolt. Available in two versions (daytime and nighttime), this structured bag with simple lines is the epitome of silversmithery, leathercraft and saddlery expertise. The Bâton de Craie line is inspired by a 1920s model. Its name refers to its shiny clasp of clean, precise design, a simple baton made of metal, horn, Dalmatian jasper or malachite, which slides through a leather loop. Both the bag and mini clutch versions of Bâton de Craie have a very pure silhouette and an inspired design, a series of curves and crisp lines. Everyday comfort and functionality continue to be reflected in several models designed for the active, urban wearer: a sporty-chic look with the City back back pack, whose slender, ergonomic format allows for freemovement, new, comfortable strapswith the cross bag and shoulder bag versions of the Cityslide line, or even the easy transport of essential items – laptop, tablet and smartphone – with the leather and felt wool Toodoo organiser. For women, the GR24 back pack combines comfort and appeal, while the Maxi box shopper, whose reinforced corners are inspiredbyretrotraveltrunks,providesgenerouscapacityandapractical shoulder strap. For those undertaking longer journeys, the new Wallago luggage line is available in several sizes. From the small 35 model, with its clever rear pocket which enables the user to slide it onto a wheeled suitcase, to the large 53 model which has a comfortable strap, all are designed to make the journey easier for every traveller. 2016 marked the début of a new material: the H Berlin canvas, which has threewaterproof layers on the outside, evoking car hoods at the start of the twentieth century. Both aspects are revealed on the Col Roulé

2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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