HERMES_REGISTRATION_DOCUMENT_2017

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OVERVIEW OF THE GROUP

PROPERTY

PROPERTY

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Saint-Junien, inHaute-Vienne, together with the new leather goods site in Normandy located in the Val de Reuil municipality, were opened in 2017. Finally, work on our third leather goods unit in Allenjoie, in the Pays de Montbéliard, was completed at the end of the year. Hermèsproductsaresoldworldwide via anetworkof304exclusivestores (a detailed list is given on page 27 to 30). Of the 304 Hermès exclusive retail stores throughout the world, 212 are operated as branches. Most of these are rented under long-term commercial leases intended pri- marily to ensure the continuity of operations over time. The Group also owns the buildings that house certain stores, including those in Paris, Ginza in Tokyo, Dosan Park in Seoul, The Galleria in Hong Kong, Beverly Hills in the US and in Geneva, Switzerland. Furthermore, the Group owns a commercial and office building in London which was acquired in 2009 and is let to an external tenant. The distribution of branches by geogra- phical area is as follows: 71 in Europe (including 14 in France), 41 in the Americas (including 26 in the USA), 94 in Asia (including 31 in Japan), and 6 in Oceania.

In Paris, the Group now occupies office surface of approximately 27,000 m 2 mainly near its historical registered office of 24, rue du Faubourg-Saint-Honoré and 19-21, rue Boissy-d’Anglas, which it owns. Staff are also assigned to office premises in rue de la Ville-l’Évêque and rue d’Anjou, rented to third parties under commercial leases, and on a site located at rue du Faubourg-Saint-Antoine, which also houses a leather goods workshop. In Bobigny, in 2017, theGroup opened a newbuilding on the logistics site that it owns, increasing its surface area from 21,000 m 2 to 28,500 m ² . In Pantin, Hermès occupies 83,000 m ² of manufacturing premises and office space in the town centre, most of which it owns, including the Jean- Louis Dumas Space, which opened in 2015 and the Cité des métiers, completed the year before and which won the prix de l’équerre d’argent 2014. With regards to the production sites, the Group is the owner of 42 of the 52 units that it operates. (please refer to page 32 for a detailed list). A new leather goods workshop, located in the glove-making town of 2017 marks the tenth year of activities of the Fondation d’entreprise Hermès. In creating the Foundation in 2008, the house’s Senior Executives wanted to reinforce the impact of its sponsorship programme while ensuring its durability. Expand it, definitely, but how? The issue was to delineate our areas of intervention and equally the way in which we take action. Promoting savoir-faire, supporting creativity and encouraging the transfer of knowledge therefore became imperatives for us, while we decided to prioritise training in our métiers and the implementation of inventive and innovative projects in each of these areas. We are per- petuating the humanist values of Hermès by offering responses to the needs that we identify and that serve the public interest. Gradually, the shape of the Foundation and its methods of action were clarified, which led us to prepare very focused programmes that we designed and, for some of them too, became the operators on the ground. For several years we have been giving thought to the actions we could take to promote craftsmanship within the Company and notably among the youngest generations. In2016, wewere therefore able to put in place our Manufacto programme, “la fabrique des savoir-faire” for which the agreement of the Paris board of education was decisive. The success of this first edition supported our wish to continue it in years to come. 1.7 FONDATION D’ENTREPRISE

Experiencing the “pleasure of doing” acts as a driver for discovering the métiers of craftsmanship while being a school for expression. In parallel, the third edition of the Skills Academy , dedicated to metal working, again brought together a large audience around the contemporary challenges related to expertise in the material. By addressing schools and profes- sional audiences, each of these programmes expresses our belief that craftsmanship represents amétier that is both able to thrive and focused on the future. Although it is undeniably handed down as our heritage, savoir-faire is also undergoing constant change and is attentive to inno- vation: it forms a de facto part of the contemporary world. In a complementary way, the Foundation is involved in the field of artis- tic creation. The cornerstone of our activity is encouraging freedom of expression by giving artists the time to create the methods that serve their purpose and by giving the public access to a sensitive, critical and political understanding. We have chosen to support contemporary forms – those that will be tomorrow’s cultural heritage – by supporting the creation of new works. Whether it be New Settings, the Foundation’s exhibitions, artists’ residential programmes or Immersion, a Franco American photographic commission, all four programmes engage artists inworking in environments that change the placeswhere they are carried out. Taking artistic risks –whether on the stage of a theatre or production

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL