Hermes International Sca · EURONEXT:RMS
Hermes International Sca — Hermès International — Shareholder Meeting (April 2025)
54 slides from Hermes International Sca's shareholder meeting presentation, Apr 30, 2025
Slide 1: Combined General Meeting 30 April 2025
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Slide 2: 2024 Highlights and Strategy
2024 HIGHLIGHTS AND STRATEGY
Slide 3: Strength of Hermès' craftsmanship model in a more uncertain context
2024 HIGHLIGHTS AND STRATEGY Strength of Hermès’ craftsmanship model in a more uncertain context Employment and Revenue Quality and durability responsibility €15.2bn Regional revitalisation +15% at constant Exceptional materials 60 production and exchange rates Products designed to last training sit
Slide 4: Bold creation
2024 HIGHLIGHTS AND STRATEGY Bold creation • Enrichment of the leather goods collection with the models Haut à Courroies en selle, Della Cavalleria Élan and Arçon • Successful women’s and men’s ready-to-wear collections • Dynamic formats and designs of the silk collections • Successful launch of the
Slide 5: Development of production capacities
2024 HIGHLIGHTS AND STRATEGY Leather goods Development of workshop projects 4 production capacities ongoing 2025 to 2028 • Leather goods workshop openings: › Riom (Puy-de-Dôme) in September 2024 › 3 ongoing leather goods workshop projects: L’Isle-d’Espagnac (Charente) scheduled in 2025, Loupes (Giro
Slide 6: Strong vertical integration and local anchoring
2024 HIGHLIGHTS AND STRATEGY Strong vertical integration and local anchoring Production and training sites 60 in France Local production 74% of objects are made in France Vertical integration 55% of objects made in exclusive and in-house workshops 6
Slide 7: An exclusive and integrated distribution network
2024 HIGHLIGHTS AND STRATEGY An exclusive and integrated distribution network • Strengthening of the multilocal and omnichannel distribution network • Opening of new stores: › Princeton (United States) › Wuxi (China) › Tokyo Toranomon Azabudai and Ginza Mitsukoshi (Japan) • Expansion and renovation
Slide 8: Evolution of the number of stores
2024 HIGHLIGHTS AND STRATEGY Evolution of the number of stores Expansions 294 293 and renovations 15-20 on averageper year Strengthening the network Omnichannel and multilocal Concessionnaries Branches 8
Slide 9: A singular communication
2024 HIGHLIGHTS AND STRATEGY A singular communication • Presenting Hermès in an authentic and unconventional manner: › Mystery at the Grooms’ in Shanghai › The Kiosque du Monde d’Hermès notably in Aspen, Barcelona, Shanghai and Tokyo › Hermès in the Making in Mexico City, Seoul and Zurich › On the W
Slide 10: Responsible and Sustainable Development
Slide 11: A sustainable and responsible business model
RESPONSIBLE AND SUSTAINABLE DEVELOPMENT A sustainable and responsible business model PEOPLE AT THE HEART ENVIRONMENTAL LOCAL OF OUR VALUES STRATEGY ANCHORING SHARING VALUE CLIMATE COMMITMENT CREATION OF LOCAL JOBS > €500m of which €235m €4,500 -63.7% -50.5% 71% +7,000 Presence in incentive schemes e
Slide 12: People at the heart of our values
RESPONSIBLE AND SUSTAINABLE DEVELOPMENT People at the heart of our values • Acceleration of job creation and sharing value › 25,000 employees, including 62% in France at the end of December 2024 Turnover rate › Profit-sharing of €235 million in France for 2024 (+13% vs 6% 2023) of group employees •
Slide 13: Continuation of job creation
RESPONSIBLE AND SUSTAINABLE DEVELOPMENT Continuation of job creation Workforce +2,300 2x employees in 2024 +1,300 in France in 10 years More than 60% in France 25,185 22,879 20,296 9,629 France focus 18,137 16,959 8,583 15,500 16,017 7,508 employees 14,821 13,919 6,837 62% of the 13,271 6,328 workfo
Slide 14: Workforce breakdown by sector and by region
RESPONSIBLE AND SUSTAINABLE DEVELOPMENT Workforce breakdown by sector and Local anchoring 49% by region workforce outside major urban areas in France Support functions 15% Japan Sales 4% 39% Americas 7% Young employees Europe 21% (excl. France) France under the age of 30 12% 62% Asia-Pacific (excl.
Slide 15: Commitments to climate and preservation of natural resources
RESPONSIBLE AND SUSTAINABLE DEVELOPMENT Commitments to climate Renewable electricity and preservation of 98% natural resources worldwide • Continuation of the climate trajectory towards 2030 and in line with the targets validated by SBTi › Reduction by 63.7% of scopes 1 and 2 emissions in absolute v
Slide 16: Close to the territories and communities
RESPONSIBLE AND SUSTAINABLE DEVELOPMENT Suppliers Close to the territories and 19 years average length communities of relationship (Top 50) • Supporting and accompanying our suppliers: › Publication of responsible purchasing policy › Sustainable development of supply chains and support Supply chain
Slide 17: Fondation d'entreprise Hermès and philanthropic actions
RESPONSIBLE AND SUSTAINABLE DEVELOPMENT Fondation d’entreprise Hermès and philanthropic actions Fondation • Fondation d’entreprise Hermès: deployment of its programs through four pillars: artistic creation, transmission of savoir-faire, €61m 2023-2028 budget preservation of biodiversity and solidari
Slide 18: 2024 Activity
2024 ACTIVITY
Slide 19: Revenue reached €15.2 billion
2024: ACTIVITY Revenue reached €15.2 billion EVOLUTION 2024/2023 AT CURRENT EXCHANGE RATES +15% AT CONSTANT EXCHANGE RATES +13% 19
Slide 20: Revenue by geographical area
2024: ACTIVITY Revenue by geographical area Changes at constant exchange rates IN € MILLION 2024 2024 / 2023 FRANCE 1,447 +13% EUROPE (EXCL. FRANCE) 2,147 +19% JAPAN 1,437 +23% ASIA-PACIFIC (EXCL. JAPAN) 6,648 +7% AMERICAS 2,865 +15% OTHER (MIDDLE EAST) 627 +110% TOTAL 15,170 +15% 20
Slide 21: Revenue by geographical area
2024: ACTIVITY Revenue by geographical area Japan France 9% / 10% 10% / 9% Europe (excl. France) 14% / 13% 2024 / 2023 Asia-Pacific (excl. Japan) Americas 44% / 47% 19% / 19% Other (Middle East) 21 4% / 2%
Slide 22: Revenue by sector
2024: ACTIVITY Revenue by sector Changes at constant exchange rates IN € MILLION 2024 2024 / 2023 LEATHER GOODS & SADDLERY 6,457 +18% READY-TO-WEAR & 4,405 +15% ACCESSORIES SILK & TEXTILES 950 +4% OTHER HERMÈS SECTORS 1,909 +17% PERFUME AND BEAUTY 535 +9% WATCHES 577 -4% OTHER PRODUCTS 337 +9% TOTAL
Slide 23: Revenue by sector
2024: ACTIVITY Revenue by sector Watches Other products 4% / 5% 2% / 2% Perfume and Beauty 4% / 4% Other Hermès sectors 12% / 12% Leather Goods & Saddlery Silk & Textiles 2024 / 2023 43% / 41% 6% / 7% Ready-to-wear & Accessories 29% / 29% 23
Slide 24: 2024 Consolidated Financial Statements
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Slide 25: Revenue and net income evolution
2024: CONSOLIDATED FINANCIAL STATEMENTS Revenue and net income evolution IN € MILLION Sales CAGR over 10 years: +13.9% Net income CAGR over 10 years: +18.3% Revenue Net income 25
Slide 26: Consolidated income statement
2024: CONSOLIDATED FINANCIAL STATEMENTS Consolidated income statement IN € MILLION 2024 2023 % REVENUE 15,170 13,427 +13% COST OF SALES (4,511) (3,720) GROSS MARGIN 10,660 9,708 IN % OF SALES 70.3% 72.3% COMMUNICATION (637) (607) OTHER SALES AND ADMINISTRATIVE EXPENSES (2,932) (2,561) OTHER INCOME A
Slide 27: Recurring operating profitability amounted to 40.5% of revenue
2024: CONSOLIDATED FINANCIAL STATEMENTS Recurring operating profitability amounted to 40.5% of revenue IN % OF REVENUE * Recurring operating profitability before application of IFRS 16 27
Slide 28: Consolidated income statement
2024: CONSOLIDATED FINANCIAL STATEMENTS Consolidated income statement IN € MILLION 2024 2023 % OPERATING INCOME 6,150 5,650 +9% NET FINANCIAL INCOME 283 190 INCOME TAX (1,845) (1,623) IN % OF INCOME BEFORE TAX 28.7% 27.8% NET INCOME FROM ASSOCIATES 44 105 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING I
Slide 29: Net profitability amounted to 30.3% of revenue
2024: CONSOLIDATED FINANCIAL STATEMENTS Net profitability amounted to 30.3% of revenue IN % OF REVENUE 29
Slide 30: Operating investments
2024: CONSOLIDATED FINANCIAL STATEMENTS Operating investments Production and divisions €212 million Total Stores and distribution €1,067 million €611 million Real estate and group projects €244 million 30
Slide 31: Restated cash flow statement
2024: CONSOLIDATED FINANCIAL STATEMENTS Restated cash flow statement IN € MILLION 2024 2023 OPERATING CASH FLOWS 5,378 5,123 CHANGE IN WORKING CAPITAL (239) (794) CASH FLOW RELATED TO OPERATING ACTIVITIES 5,139 4,328 OPERATING INVESTMENTS (1,067) (859) REPAYMENT OF LEASE LIABILITIES (305) (277) ADJU
Slide 32: Simplified balance sheet
2024: CONSOLIDATED FINANCIAL STATEMENTS Simplified balance sheet IN € BILLION 23.1 23.1 20.5 20.5 Non-current assets Inventories Other current assets Equity Cash Non-current liabilities Current liabilities 32
Slide 33: 2025 Revenue
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Slide 34: 1st Quarter 2025
2025: REVENUE 1st Quarter 2025 • Solid sales growth at the end of March, revenue amounted to €4.1 billion (+9% at current exchange rates and +7% at constant exchange rates) in a more uncertain context. • All the geographical areas posted growth, and the exclusive distribution network continued its d
Slide 35: Outlook
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Slide 36: Outlook
Outlook • In the medium-term, despite economic, geopolitical and monetary uncertainties around the world, the house confirms an ambitious goal for revenue growth at constant exchange rates. • In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence, thanks
Slide 37: 2025: Drawn to craft
OUTLOOK 2025: Drawn to craft • Continued job creation in France and worldwide, and dynamic social policy • Opening of the leather goods factory in L’Isle-d’Espagnac (Charente) • Balanced development of the distribution network with new store openings and expansions, notably in Phoenix and Nashville
Slide 38: Presentation of the Main Resolutions
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Slide 39: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Dividend per share proposed by the Supervisory Board (4th) IN EUROS 2022 2023 2024 ORDINARY DIVIDEND 13.00 15.00* 16.00* EXCEPTIONAL DIVIDEND 10.00 10.00 * Including an interim dividend of €3.50 paid on 19 February 2025
Slide 40: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Effective compensation of corporate officers paid during or awarded for the financial year 2024 (7th to 10th) – Ex-post votes Resolutions Corporate Officers concerned Global ex-post vote 7th (information on the compensa
Slide 41: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Compensation policies for Executive Chairman (11th) – Ex-ante vote Compensation policy approved by the 2024 Shareholders’ Meeting without amendments › Within the limits determined in accordance with Article 17 of the Ar
Slide 42: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Annual global amount and compensation policy for the Supervisory Board members (12th) – Ex-ante vote Distribution criteria and compensation policy approved by the Shareholders’ Meeting both maintained: › An annual globa
Slide 43: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Re-election of three Supervisory Board members for a term of three years (13th to 15th) Mrs Julie Guerrand 43
Slide 44: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Election of Mrs Cécile Béliot-Zind as a Supervisory Board member (16th) • Chief Executif Officer of Bel group since 2022, after having held various marketing and management positions for more than 15 years within the Da
Slide 45: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Election of Mr Jean-Laurent Bonnafé as a Supervisory Board member (17th) • Director and Chief Executive Officer of BNP Paribas since 2011, after having previously managed the banking network in France and the retail ban
Slide 46: Resolutions relating to ordinary business
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary business • Election of Mr Bernard Émié as a Supervisory Board member (18th) • Chairman of BE Conseil, after having been Director General of External Security for almost 7 years, Bernard Émié had a diplomatic career which took him
Slide 47: Resolutions relating to ordinary and extraordinary businesses
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary and extraordinary businesses • Share buyback programme (6th) › Authorisation up to a maximum of 10% of share capital › Maximum amount that may be committed: €8 billion › Objectives: to manage the share through a liquidity contract
Slide 48: Resolutions relating to ordinary and extraordinary businesses
PRESENTATION OF THE MAIN RESOLUTIONS Resolutions relating to ordinary and extraordinary businesses • Renewal of the (financial) delegations of authority to the Executive Management for the purpose of issuing shares, securities giving access to the capital or debt securities › Incorporation of reserv
Slide 49: Supervisory Board's Report
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Slide 50: Statutory Auditor's Reports
STATUTORY TES] ) — AUDITOR'S REPORTS On the accounts for the financial year ending 3r December 2024 PricewaterhouseCoopers Audit Grant Thornton Audit
Slide 51: Statutory auditors' reports on the annual and consolidated financial statements
AUDITORS’ REPORTS Issued to the ordinary business Statutory auditors’ reports on the annual and consolidated financial statements Objective: › Obtain reasonable assurance that the financial statements and information present a true and fair view • Opinion on the consolidated financial statements: Ce
Slide 52: Statutory auditors' special report on related-party agreements
AUDITORS’ REPORTS Issued to the ordinary business (continuation) Statutory auditors’ special report on related-party agreements • Objective: › To inform you on the main terms and conditions of related-party agreements that have been disclosed to us, without commenting on their relevance or substance
Slide 53: Statutory auditors' reports on draft resolutions affecting share capital
AUDITORS’ REPORTS Issued to the extraordinary business Statutory auditors’ reports on draft resolutions affecting your company’s share capital • Capital reduction by the cancellation of shares purchased (19thresolution) • Authorisation to be given to Executive Management for the purpose of issuing s
Slide 54: Combined General Meeting April 2025
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