Hermes International Sca · EURONEXT:RMS
Hermes International Sca — Hermès International — H1 2024 Earnings Presentation
35 slides from Hermes International Sca's earnings presentation, Jul 25, 2024
Slide 1: 2024 First-Half Results
25 Tnky 2024 2024 FIRST-HALF RESULTS ave HERMES — PARIS
Slide 2: Performance of the Responsible Craftsmanship Model
PERFORMANCE OF THE RESPONSIBLE CRAFTSMANSHIP MODEL CREATION AND VERTICAL SAVOIR-FAIRE INTEGRATION Haute Bijouterie 55% of objects made in in-house 8th collection: and exclusive workshops REVENUE Les formes de la couleur Local production €7.5 BILLION Leather Goods 74% of objects produced in France +1
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Slide 4: A Bold Creation
A BOLD CREATION • Enrichment of the leather goods collection with the models Della Cavalleria Élan and Kelly Mini clouté • Successful women's and men’s ready-to-wear collections • The Hermessence collection welcomed Oud Alezan in February and the H24 men’s line has been enriched with Herbes Vives in
Slide 5: Development of Production Capacities
DEVELOPMENT OF PRODUCTION CAPACITIES • Four leather goods workshop openings: › Riom (Puy-de-Dôme), inauguration in September 2024 › L’Isle-d’Espagnac (Charente), scheduled in 2025 › Loupes (Gironde), scheduled in 2026 › Charleville-Mézières (Ardennes), scheduled in 2027 • Strengthening of capacity i
Slide 6: Exclusivity: An Integrated and Omnichannel Distribution Network
EXCLUSIVITY: AN INTEGRATED AND OMNICHANNEL DISTRIBUTION NETWORK • Continued operating investments in the multi-local and omnichannel distribution network • Opening of new stores: › Princeton (United States) › Wuxi (China), Tokyo Toranomon Azabudai and Ginza Mitsukoshi (Japan) › Mumbai Jio World Plaz
Slide 7: Singular Communication
SINGULAR COMMUNICATION • Presenting Hermès in an authentic and unconventional manner: › The Kiosque du Monde d’Hermès in Aspen (United States), Abu Dhabi (United Arab Emirates), New Delhi (India), Barcelona (Spain), Manila (Philippines), Taipei (Taiwan) and Tokyo (Japan) › Hermès in the Making in Me
Slide 8: Responsible and Sustainable Development
RESPONSIBLE AND SUSTAINABLE DEVELGPMENT
Slide 9: A Sustainable and Responsible Business Model
A SUSTAINABLE AND RESPONSIBLE BUSINESS MODEL PEOPLE, AT THE HEART LOCAL OF OUR VALUES ANCHORING At the end of June 2024, +1,205 employees Responsible real estate standard for of which close to 600 in France 100% of new projects Bonus of €4,000 to all its employees Riom workshop: renovation and world
Slide 10: Social and Environmental Performance Recognised
SOCIAL AND ENVIRONMENTAL PERFORMANCE RECOGNISED GLOBAL EVALUATIONS THEMATIC EVALUATIONS 2024 2024 › MSCI AA Transparency Grand Prix › c Awards Toutes catégories › SUSTAINALYTICS Advanced 70/100 « A-list » › S Climate A / Water A Forest A-A- › VE Low risk 2024 Half-Year Results 10
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Slide 12: Activity
ACTIVITY • Revenue in the first half of 2024 reached €7.5 billion (+15% at constant exchange rates and +12% at current exchange rates) • All regions posted double-digit growth • All the business lines confirmed their robust momentum, despite a more complex environment • Sales in the second quarter r
Slide 13: Revenue by Geographical Area
REVENVE By GEGGRAPHICAL AREA
Slide 14: Revenue by Geographical Area
REVENUE BY GEOGRAPHICAL AREA Change at in €m June 2024 constant rates France 680 15% Europe (excl. France) 970 18% EUROPE 1 651 16% Japan 693 22% Asia-Pacific (excl. Japan) 3 521 10% ASIA 4 213 12% Americas 1 329 13% Other (Middle East) 311 105% TOTAL 7 504 15% 2024 Half-Year Results 14
Slide 15: Revenue by Geographical Area
REVENUE BY GEOGRAPHICAL AREA 2024 / 2023 Other France 4% / 2% 9% / 9% Americas Europe (excl. France) 18% / 18% 13% / 12% Japan 9% / 10% Asia-Pacific (excl. Japan) 47% / 49% 2024 Half-Year Results 15
Slide 16: Revenue by Sector
REVENVE By SECTGR
Slide 17: Revenue by Sector
REVENUE BY SECTOR Change at in €m June 2024 constant rates Leather Goods and Saddlery 3,215 19% Ready-to-wear and Accessories 2,162 15% Silk and Textiles 436 1% Other Hermès sectors 967 19% Perfume and Beauty 259 5% Watches 308 (0)% Other products 157 7% TOTAL 7,504 15% 2024 Half-Year Results 17
Slide 18: Revenue by Sector
REVENUE BY SECTOR 2024 / 2023 Watches Other products 4% / 5% 2% / 2% Perfume and Beauty 3% / 4% Other Hermès sectors 13% / 13% Leather Goods and Saddlery 43% / 41% Silk and Textiles 6% / 7% Ready-to-wear and Accessories 29% / 28% 2024 Half-Year Results 18
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Slide 20: Income Statement
INCOME STATEMENT
Slide 21: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % in €m June 2024 revenue June 2023 revenue Revenue 7,504 6,698 Cost of sales (2,206) (1,863) Gross margin 5,298 70.6% 4,834 72.2% Communication (272) (3.6)% (259) (3.9)% Other sales and administrative expenses (1,410) (18.8)% (1,226) (18.3)% Other income and expenses
Slide 22: Recurring Operating Profitability Evolution
RECURRING OPERATING PROFITABILITY EVOLUTION in % of revenue * * * * Before IFRS16 2024 Half-Year Results 22
Slide 23: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % in €m June 2024 revenue June 2023 revenue Operating income 3,148 42.0% 2,947 44.0% Net financial income 141 75 Income tax (927) (831) In % of income before tax 28.2% 27.5% Net income from associates 16 43 Non-controlling interests (10) (8) Net income attributable to
Slide 24: Net Profitability Evolution
NET PROFITABILITY EVOLUTION in % of revenue 2024 Half-Year Results 24
Slide 25: Outstanding Sales and Results in 2024
OUTSTANDING SALES AND RESULTS IN 2024 in €m in €m Sales CAGR over 10 years +14.7% Net income CAGR over 10 years +19.1% 2024 Half-Year Results 25
Slide 26: Investments and Cash Flow
INVESTMENTS AND CASH FLOW
Slide 27: Operating Investments
OPERATING INVESTMENTS Real estate and group projects €94 million Stores and distribution €133 million Total €319 million Production and divisions €91 million 2024 Half-Year Results 27
Slide 28: Restated Cash-Flow Statement
RESTATED CASH-FLOW STATEMENT in €m June 2024 June 2023 Operating cash flows 2,829 2,615 Change in working capital (584) (509) Cash flows related to operating activities 2,244 2,106 Operating investments (319) (249) Repayment of lease liabilities (149) (137) Adjusted free cash flow 1,776 1,720 Financ
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Slide 30: Simplified Balance Sheet
SIMPLIFIED BALANCE SHEET in €bn Assets Liabilities 20.5 20.5 20.5 20.5 Non-current assets Shareholders’ equity Inventories Other current assets Cash Non-current liabilities Current liabilities 2024 Half-Year Results 30
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Slide 32: Outlook
OUTLOOK • In a more complex economic and geopolitical context, the group continues the year 2024 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients • In the medium-term, despite the economic, g
Slide 33: 2024: In the Spirit of the Faubourg, at the Heart of the House
2024: IN THE SPIRIT OF THE FAUBOURG, AT THE HEART OF THE HOUSE • Job creation in France and worldwide • Opening of the leather goods workshop in Riom (Puy-de-Dôme) • Store expansions, notably in Singapore Takashimaya, Atlanta (United States), Shenzhen MixC (China) and Lille (France) 2023 • Accelerat
Slide 34: Questions and Answers
QUESTIONS AND ANSWERS
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