HERMES_REGISTRATION_DOCUMENT_2017

COMMENTS ON THE FINANCIAL YEAR AND OUTLOOK

OUTLOOK

OUTLOOK

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the Constance , Halzan , Lindy and Verrou bags, will be sustained by the new sites coming up and projects to increase production capacity and to hire and train craftsmen. Following the site extensions in le Vaudreuil in Normandy and Saint-Junien in Limousin in 2017, the production unit in l’Allan will be opened in 2018, and those of Guyenne and Montereau should be completed by the year 2020. Meanwhile, the house’s other business lines will continue to draw on their know-how to design and produce exceptional objects, in line with Hermès traditions. True to its history of singular communication, Hermès will continue to devise rich and surprising events, whose impact will be enhanced by a series of media-wide campaigns. The events strategy will remain extre- mely dynamic with the Saut Hermès at the Grand Palais, events inspired by our universes (women, men and home), as well as Hermès at work and petit h sales events and celebrations for the opening and reopening of stores. In 2018, Hermès is celebrating the theme “Let’s play!.” Beyond more recreation, this guiding vision rewards us of the importance of enjoyment as a driver of creativity, innovation and agility. In the medium term, despite growing economic, geopolitical and mone- tary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates.

In a geopolitical and socio economic environment which has been cha- racterised for several years by great instability and volatility worldwide, Hermès’ unique model is very solid and strong year after year, with regular growth in its revenue over time. Hermès is proud of its long tradition, drawing on the excellence of its craftsmanship, a high degree of creativity and an exclusive distribution network. The Company continues to flourish, thanks to its attractive range of rich and diverse business lines. Thus, the Group launched a new Internet platform, firstly in Canada and the United States. It will also be available in the first half of 2018 in Europe, then in China at the end of the year, to offer a unique and original digital experience, bringing together, at a single point of entry, editorial content and products that reflect the diversity and originality of our crea- tions, the proficiency of our savoir-faire and which relay the major events of the Company. The qualitative development of our network will be pursued with the ope- ning of eight new stores, notably in Hong Kong, Palo Alto in the United States, Cancun in Mexico, Bangkok in Thailand and Xi’an in China. Priority will be given to extensions and renovation in over twenty stores around the world. In light of our particularly strong growth, Hermès will continue to increase its production capacities. The strong demand in Leather Goods & Saddlery, both for iconic bags and for other models such as

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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