Hermès - Registration Document 2016

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Corporate social responsability

Environment

Energy The power consumption of the division rose 97%. The increase was attri- butableexclusivelytotheinclusioninthereportingscopeofLesTanneries du Puy, which accounted for half of the division’s energy consumption.

The average ratio of energy consumption to revenue was stable on the scope of exotic tanneries and the Annonay tannery. However, there was a slight increase on two exotic leather tanneries (Montereau and Vivoin) due to the expansion of machinery fleets, new buildings and improve- ments to capture and ventilation systems on work premises.

Textiles 2016 was marked by a sharp increase in production volumes in the second half of the year. Revenue was up 3.1% over the full year compared with 2015. Despite this growth, total energy consumption was broadly stable, and water consumption showed a pronounced improvement.

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Water in cubic metres

260,000 241,000 199,000 215,800 198,478 238,760 269,232 275,995 256,534 210,577 9,678 10,075 9,267 9,520 9,694 11,673 12,586 14,050 13,034 12,856 21,897 22,254 20,443 22,810 21,000 26,324 27,115 27,175 25,407 26,016

Electricity in megawatt hours

Gas in megawatt hours

Water The Silk division’s water consumption was down 16% compared with 2015. Several measures were taken on the various sites to obtain this outcome: replacement of obsolete machinery, optimisation of pro- cesses, detailed monitoring of consumption by area, etc. Water mana- gement of facilities has become a concern shared by all workshops. At

SIEGL, a water recycling process via the lagoon contributes significantly to the improved results. Energy Despite a colder winter than in 2015 and an increase in business, the subsidiary’s energy consumption was virtually stable (+1%).

Crystal The production unit’s 2016 business volumes were stable in value, with improved performance ratios in terms of production volumes, despite the interruption of the melting process during the construction of a new tank furnace.

2011

2012

2013

2014

2015

2016

Water in cubic metres

17,991

12,992

15,850

15,235

11,662

10,578

104

74

85

87

88

68

Water/output in litres per item Electricity in megawatt hours Gas in megawatt hours Fuel oil in megawatt hours

8,985

8,563

8,797

8,584

8,578 27,020 189.5

7,534

32,488

32,474

34,428

31,296

27,303

123

93

101

142

95.6

Water Water consumption fell sharply in 2016 (-9% compared with 2015). Several events combine to explain this outcome: the interruption of the melting process during site development work in the workshop and the construction of the tank furnace, meaning that work was reduced to two workstations rather than three. The shutdown of the previous tank fur- nace, whose water consumption had increased significantly at the end of the season, was another factor in the saving.

Energy Overall energy consumption was comparable with that of 2015. Electricity consumption decreased slightly, mainly following the decom- missioning of the former tank furnace inOctober 2016. The shareof elec- tricity consumptionattributable to the new furnace is less than that of the previous one. The efficiency of natural gas facilities installed in2014and 2015 (pot furnace, centralised heating, etc.) was confirmed this year. The gradual replacement of openings by new equipment will contribute to tighter control of gas consumption. Thereductionin“fueloil”consumptionyearonyearisattributablethefact that back-up radiators were used during the first two months of 2015. The replacement of the fleet of forklifts by electric models in 2016 also contributed to the reduction.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL