Hermès - Registration Document 2016

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OVERVIEW OF THE GROUP

ACTIVITY BY SECTOR

Finally, a new sizewas launched: a new smaller addition to themaxi-twilly family. With its reduced length and two faces printed with designs from the scarf and tie collections, it has bothmasculine and feminine aspects. Men’s silk Season after season, the 7 cm tie features in the collections. It is now available on silk twill printed with classic or whimsical motifs, and on heavy woven silk. In a nod to this year’s theme, it is also enhanced by new floral micro-designs printed on silk twill. The 100 scarf continues to be the classic size for the men’s collection, and is available in a range of materials and designs. Silk and cotton for the summer, cashmere and silk for the winter, it provides ample inspira- tion for new equestrian, graphic or figurative ideas, such as the And the Winner is, design, featuring a pinball machine fully outlined in ballpoint pen, or the Grrrrr!, design, with a surprising close-up image of a bear. The cashmere and silk diamond-shaped wrap scarf returns for the win- ter, either plain or printed with the Quadrige design, unframed and bold. OTHER HERMÈS SECTORS The other Hermès sectors include Jewellery, the Art of Living and La Table Hermès. In 2016, they achieved revenue of €336million, representing a 2% rise at constant exchange rates and accounting for 6% of the Group’s total revenue. Jewellery 2016 saw the launch of the fourth fine jewellery collection, celebrating fifteen years of Pierre Hardy’s collaboration with Hermès. To write this new chapter, Pierre Hardy worked around the concept of time, a theme dear to the house. Three new pieces were launched: Ombres et Lumière , a river of pearls in subtle shades, from deep grey to pearly white, symbolising grains of sand passing through an hour- glass, Attelage céleste , a graphic piecemade of yellow gold and coloured stones reminiscent of a sundial and the mechanics of time, and Feux du Ciel , whose rows of fine colourful stones evoke the fleeting, elusive beauty of sunrises and sunsets. This collection was unveiled to the international press in July, at the Faubourg Saint-Honoré store, in a futuristic setting created by French artist and architect Didier Faustino. Named HB-IV Continuum , this event showcased the spirit of continuity which characterises the unique style of Hermès jewellery, exhibiting the new gold and, for the first time, silver, pieces next to the fine jewellery collection. The exhibition opened to the public in September. The silver Chaîne d’ancre breaks away fromconvention: transgressing all codes, it takes on a punk look, with the addition of a safety pin. Its pure, precise lines are larger than life and some are enhanced by rose gold on chains with multiple links. It demonstrates once again the Hermès agility in giving a new twist to items to bring out all of their beauty. 1.3.4.2 1.3.5 1.3.5.1

Winter sees a contrast between a palette of whites and a range of warm tones, rosewood, tobacco and burgundy. Heels are in a range of shapes, pyramid, straight or semi-wedge. Court shoes or boots are made with Tuscan calfskin, a structured, transparent leather which gains a patina over time. The Equator “tattoo” print is transferred to leather and silk via silkscreen printing, giving an assured silhouette. The men’s collection lets the nature of the leathers shine, playing with the different grains and matte and glossy finishes. In summer, the style is relaxed: loafers and brogues with eyelets allow for freedom of move- ment and spontaneity. Sports shoes combine supple, light materials and contrasting colours, highlighting the summer ambiance: yellow, sky blue, navy. For winter, lace-up boots with a thick rubber sole combine comfort and style. The stirrup-bar buckle on a brogue gives a nod to the equestrian heritage of the house, while the sports shoes stay true to form with a two-colour construction in supple suede goat leather on a sleek rubber and leather sole. SILK AND TEXTILES Silk and Textiles represent Hermès’ third largest sector, accounting for 10% of sales. In 2016, this business line achieved revenue of €515 million, a slight decrease of 1%. Women’s silk In 2016, inspired by this year’s theme “ La nature au galop ”, women’s silk inspired new designers, such as the South African potter’s collective Ardmore Artists, with La Marche du Zambèze , or the Brazilian illustrator Filipe Jardim, with Modernisme tropical. It also paid homage to the pain- ter Robert Dallet, incomparable painter of the animal kingdom, with the Panthera Pardus and Dans l’atelier de Robert Dallet scarves. As always, silk was a remarkable canvas for bringing different artistic expressions to life. Focussing on colour, with an invitation to “colour-in” on the Mythiques Phœnix and Les Légendes de l arbre scarves, which are half multicoloured and half monochrome. Focussing on design, reworked in positive or negative monochrome on the “tattoo” scarves Jungle Love and Flamingo Party . And focussing on the material itself, with the Abeilles printed silk twill used for these last two motifs. This pre- cious material, a historic speciality of the weavers of Lyon, is decorated with small woven jacquard designs. In addition to the “tattoo” scarves, it returns to the collection with a washed silk diamond-shaped wrap scarf available in two sizes and a range of plain shades, as well as a bow tie and a maxi-twilly scattered with polka dots. For autumn-winter, the plain collection explores the artisanal expertise and natural materials of faraway lands: Mongolian camel wool is com- bined with cashmere in a soft stole finished with leather, while the giant cashmere and silk Plume scarf is woven with a graphic motif inspired by the ikat technique. 1.3.4 1.3.4.1

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL