HERMÈS - 2018 Registration document

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Overview of the group

Activity by métier

In the first half, Eau de Citron Noir cast fresh light on the Colognes col- lection, emblematic of Hermès’ lifestyle perfume. Inspired by the univer- sality of Hermès’ founding Cologne, Eau d’Orange Verte , Christine Nagel was eager to revisit the classical theme of Cologne in a contemporary, fiery and elegant style. The black lemon, smoky and racy, has emergedas the summit of its composition, giving Eau de CitronNoir a singular stamp, a surprisingly enduring freshness that was an immediate hit. In the second half, the Terre d’Hermès men’s fragrance acquired a new variant. With Terre d’Hermès Eau Intense Vétiver, Christine Nagel has breathed extraordinary force into Terre d’Hermès , revealing a vetiver that had previously been almost hidden. With careful refining, the original balance of Terre , woody and mineral, has found a new accord, woody and plant-based. This other Terre d’Hermès was given an international launch at the Observatoire de Paris. These two new products mirrored the vitality of the women’s collections, especially Twilly d’Hermès , the key pillar, whose vitality remains infec- tious. The girls of Hermès were able to seize the first limited edition of Charming Twilly , their new lucky charm, and to discover Le Bain Twilly , whose bubbles are as impertinent as the perfume. With consolidated revenue of €169million in 2018, Watches represents 3% of Group sales. For the second year in a row, the Hermès store network enjoyed stellar growth in 2018, particularly in Asia. At the same time, Hermès continued to rein in the number of “external” watch retailers, tomake its distribution even more selective. Sales in the network of directly owned stores benefited from the world- wide success of the two maiden lines, Cape Cod and Heure H , and the new impetus given to the Arceau line, which celebrated its 40th anniver- sary this year. The Cape Cod family, rounded out by its Nantucket version, has enjoyed spectacular growth since its relaunch in 2016 and the profound rejuve- nation of the line, 25 years after its creation by Henri d’Origny, who saw in it “a square in a rectangle, in the shape of an anchor chain”. In 1997, Martin Margiela seized on this emblematic line, giving it the “double turn” strap that has becomeemblematic of Hermèswatches. Themodels launched in2018enabled enthusiasts to discover technically innovative expressions in this line, more precious, more like jewellery, both graphic and dripping with fantasy. The Heure H line once again enjoyed strong growth, driven by the great success of models encrusted with white or black lacquer, which have grown in number. Hermès made its debut at Geneva’s Salon International de la Haute Horlogerie (SIHH) in January 2018, after many years of presence at Baselworld. Hermès was able to express forcefully the originality of its voice within the closed circle of Haute Horlogerie by affirming its field of expression, namely a singular relationship with time, stamped with fantasy and emotion, time that Hermès invites customers to play with but never seeks to control. 1.4.6 WATCHES

1.4.4.1 Jewellery In July 2018, Hermès opened a new chapter in the history of Haute Bijouterie , Enchaînements libres , which pursues the telling of a singular jeweller’s vision striking the perfect balance between innovation and tradition in a stylistic statement centred on the metal and the shape. With Enchaînements libres , Pierre Hardy challenges and disrupts the chain, a key part of Hermès’ history. Reinventing the art of chain-maker for the House, he works the chain in anamorphosis, playing with scale and rendering every detail sublime. Designed to articulate, twist and come to life, links reveal the disturbing sensuality of themetal as it bends to the body. Powerful and precious, the chain becomes an emblem. The collection was unveiled to the press in a dance performance choreo- graphed by Christian Rizzo, then shown to the general public at the Faubourg Saint-Honoré store in September, through a set of metal and rocks representing the jewel’s two raw materials. The House universe continued to grow in 2018, with an artistic vision built on a balance between strictness and fantasy, associating the wealth of drawings and colours with the purity of lines. The dialogue between form and function, and the prodigious quality of the materials and savoir-faire used characterise this extensive universe combining fur- niture, lighting, plaids, decorative objects, tableware, birth gifts, beach fabrics, furnishing fabrics and wallpapers. As it has every year since 2011, the House universe took centre stage during Design Week in Milan in a spectacular staging consisting of seve- ral colourful pavilions that presented all of the new collections deve- loped under the auspices of Deputy Artistic Directors Charlotte Macaux- Perelman and Alexis Fabry. Winning particular accolades were the new porcelain service, A Walk in the Garden , developed in collaboration with Nigel Peake, one of Hermès’ long-standing creative partners, the Toluca , Orizaba and Colima plaids, transpositions on fabric of drawings by Mexican artist Miguel Castro, and the collections of Périmètre porce- lain and Pli’H flanged leather objects, whose pure lines are a fresh take on historical materials and savoir-faire. Two major spaces were dedicated to the House in the new stores, Landmark Prince’s in Hong Kong and Dubai Mall, opened earlier this year. The Home universe was in the spotlight in the second half of the year, with a series of events for the press and influencers, architects and interior designers, but also the general public, held successively in Taiwan, Dubai and Seoul. PERFUMES In 2018, the growth of the Perfumes business was driven by the launch of two striking new products: Eau de Citron Noir and Terre d’Hermès Eau Intense Vétiver . This métier had revenue of €312 million, up by 9% at constant exchange rates, representing 5% of the Group’s revenue. 1.4.5 1.4.4.2 The Art of living and the Art of Hermès Tableware

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL