HERMES_REGISTRATION_DOCUMENT_2017

OVERVIEW OF THE GROUP

ACTIVITY BY SECTOR

1.3.7.5 Tanning and Precious Leathers. The tanning division handles the purchasing, tanning, dyeing and fini- shing of precious hides destined for high quality fashion and leather goods brands and manufacturers, as well as for the high-end watchma- king industry. In 2017, the division continued to increase its production and manage- ment potential of the Group métiers in its two sectors, exotic hides and calfskin. Les Tanneries du Puy have continued their major organisational and technical restructuring initiated in 2016, and major efforts were made to improve site security, workstations and manufacturing processes. A substantial programme of investments is planned for coming years. The development of synergies with the Tannerie d’Annonay has continued, particularly in the area of supplies and the development of tanning and new finishes. In 2017, the new exotic finishes from chrome-free tanning were very well received, particularly the pastel shades whichwere added to collections. The watchmaking sector has also shown significant interest in this type of tanning. New calfskin developments were also launched, such as “135 grain calfskin” which has enhanced the house’s belt collections or watchma- king leathers. The tanning division has therefore consolidated its work and invest- ments, in line with its objectives: to assert its position of excellence on the precious leathers market thanks to making supplies more stable, optimising production capacities, and developing expertise, innovation and creativity, while maintaining its exemplary behaviour in terms of adherence to ethical and environmental standards. Hermès Horizons With Hermès Horizons, Hermès is extending its traditional savoir-faire and sense of innovation to encompass all bespoke orders for private clients. This service brings together the finest and most technical mate- rials, utilising cutting-edge technology to create one-of-a-kind objects or fit out and upholster all types of vehicles. Many objects were made to order for clients from all over the world. Specially designed bags, personalised collectable items or items created from scratch all provided opportunities to demonstrate Hermès’ savoir-faire and creativity. In the field of mobility, Hermès Horizons has delivered a new project to fit out a private jet for an individual client and has continued to implement a project involving a 42-metre yacht. The “Mon Rêve Hermès” initiative, offering store managers the opportu- nity to imagine the dream object that they would like to offer their clients, took shape in the creation of four entertainment objectswhich have been on show in stores since the end of the year: a table football table, a ska- teboard, a longboard and a kite. Specialcreationsweredesignedforthereopeningofthestores inLondon (Sloan Street), New Delhi and Toronto. 1.3.7.6

1.3.7.7 Petit h A laboratory dreamt up by Pascale Mussard, petit h offers a unique crea- tive approach to different artists and creators by making available to them, under one roof, thematerials and objects left over by themanufac- turing workshops of Hermès Group and its brands (Puiforcat, cristallerie Saint-Louis, John Lobb, Le Crin, Verel de Belval, Créations Métaphores, etc.). With their involvement, these pieces of leather, silk, horsehair, ready-to-wear or furnishing fabrics, metal pieces and so on are are given a new lease of life by leather/saddlery artisans, silverware experts, desi- gners, master glass-makers and porcelain-makers, bootmakers, etc. This direct dialogue between ideas and artisans, using the material as a source of inspiration, leads to invention and unusual, innovative objects. This dynamic has in particular led this year to a new collaboration with the designer François Azambourg who created an original use for leather during glass blowing which was presented in June at the D’Days festival. Moreover, like each year, petit h went in pursuit of Hermès customers all over the world, with two flash sales. As a result, during the second quar- ter , petit h completely took over the old Hermès store in Rome for the first time. And at the end of November, petit h transformed the ground floor of the Maison Hermès in Seoul into an enchanted forest in which a life- sized leather tiger rubbed shoulders with rabbits, cockerels, monkeys and other animals. Nomadic by essence, petit h nevertheless retains a permanent home at the entrance to the store on rue de Sèvres, Paris, where a selec- tion of objects is presented throughout the year, with regular creative workshops open to all. Shang Xia The contemporaryChinese craftsmanshipcompany passedanewmiles- tone in its development. In fact, the year was marked by the opening of two concessions outside of China, inHongKong andOsaka inprestigious locations. As a result, fromNovember, Hong Kong clients have been able to visit a Shan Xia area in the Lane Crawford department store that is devoted to the company’s objects, furniture and fashion accessories. In December, Shang Xia entered the Japanese market with the opening of a pop-up shop in the Hankyu Department Store in Osaka, offering people the chance to discover the contemporary art of living in modern China. The brand has also continued to grow in China with the opening in October of a store in Shanghai in one of the most famous commercial furniture centres in the country. 2017 also saw the collections enhanced notably with the launch of the new Ming Yue bag, whose cube shape is evocative of the travel boxes used in ancient China to transport tea services. The collection of excep- tional objects welcomes the new family of In Heart furniture which mar- ries the use of traditional precious materials such as marble and ebony with a resolutely modern design. 1.3.7.8

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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