HERMÈS - 2018 Registration document

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Overview of the group

Activity by métier

ACTIVITY BY MÉTIER

1.4

REVENUE BY MÉTIER

Change

2018 (revenue in millions of euros)

2017 (revenue in millions of euros)

at current exchange rates

at constant exchange rates

2018 (mix in %)

2017 (mix in %)

Leather Goods & Saddlery

2,976 1,310

50% 22%

2,800 1,181

50% 21% 10%

6.3%

9.4%

Ready-to-wear and Fashion accessories

10.9%

14.1%

Silk and Textiles

537 425 312 169 238

9% 7% 5% 3% 4%

534 365 287 158 223

0.5%

3.2%

Other Hermès métiers

7% 5% 3% 4%

16.3%

19.6%

Perfumes Watches

8.4% 7.0% 6.5% 7.5%

8.9% 9.9% 7.9%

Other products

CONSOLIDATED REVENUE

5,966

100%

5,549

100%

10.4%

1.4.1 LEATHER GOODS & SADDLERY Leather Goods and Saddlery, Hermès’ original métier, encompasses 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. The Leather Goods and Saddlery métier represents 50%of consolidated sales. In 2018, it generated €2,976 million in revenue. 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 craftsmen each day patiently crafting and fashioning the raw leather gives these unique objects a distinctive additional measure of soul. Today, they are made by over 3,400 saddler-leather workers in 16 pro- duction units and workshops spread over Paris, Pantin and various regions across France. Tomeet sustained demand, Hermès inaugurated its third leather goods production unit in Franche-Comté in April 2018, and opened three new sites: a training workshop in Isère and two tem- porary workshops in Gironde and Seine-et-Marne in September 2018, the first step before the construction of new leather goods units in 2020. These openings were prepared in close collaboration with the various local stakeholders and regional administrative and economic develop- ment bodies. In this way, Hermès reaffirms its commitment to regions with a strong manufacturing expertise, and its will to provide quality jobs. TheHouse isalso continuing toperfect the craftsmenskillsandexpertise 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.

1.4.1.1 Bags and luggage Inspired by the year’s “Let’s play” theme, the bags and luggage collec- tions took creativity to newheights, showcasing the rawmaterials, savoir- faire and functionality that are synonymous with the House. Women’s bags collections were fashioned on three main themes. First, the offer of small structured bags with smart clasps, which more than anything express savoir-faire in leathercraft and the skills of the silvers- mith, continued to grow. The Mosaïque au 24 bag, for instance, stands out by its novel and striking construction, with two bellowswhose junction forms an inside pocket. Its ingenious clasp, inlaid in the flap and easily opened with a single click, is inspired by the mosaics decorating the floor of 24, Faubourg Saint-Honoré. The Hermès 2002 bag, a revamped reissue from a 1970s creation, embodies quintessentially Hermès ele- gance. Its clasp combines an ingenious mechanism with the simplest of gestures: simply tilt the central square to open it, and push on the flap to close it. It is treasure from the past, whose contemporary essence has endured nearly 50 years. New ideas have appeared in the casual world of everyday life. The 24/24 line has made a conspicuous entry into the collections. It seals the union of the structuredhandbag and the sport-chic universe. Combining flexibi- lity and style, it boasts verymeticulous construction: a clasp inspired by a reel, a sheathed and polished flap, a finely worked strap, a juxtaposition of materials and a pocket on the back. It is available in two sizes reflecting two attitudes, a large clutch model and a small model with a shoulder strap. Another accessory for everyday life, the Licol line takes its inspi- ration from the horse-riding halter, with its leather round and shoulder strap decorated with the Rocabar stripe. The line comprises bucket bags with restrained lines and clever construction, combining a squarebottom and a round body that showcases the flexibility of the leather to the full. The new Aline Mini clutch bag in Milo lamb also reflects this quest for functionality: light and delicate, it hangs close to the body like an extra jacket pocket and leaves your hands free.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL