Slide 1: Hermès 2018 Results
; HERMES g | 2018 RESULTS 20 MARCH 2019
Slide 2: Let's Play!
L E T ’ S P L AY ! • A corporate vision stamped with a spirit of independence around quality of know-how, innovation, ever-renewed creativity and the outstanding commitment of Hermès’ teams • Commitment to a model in which dynamic craftsmanship drives sustainable, profitable growth • Contemporary de
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Slide 4: Activity
AC T I V I T Y • 2018 revenue amounted to €5,966 million, up 10% at constant exchange rates. • Particularly healthy and balanced growth, primarily based on a volume increase. • Strong sales growth of 11% at constant exchange rates in Group stores, with all the geographical areas posting an increase.
Slide 5: Results
R ES U LT S • Recurring operating income up 6% to €2,045 million, and recurring operating profitability reached 34.3% of sales, close to the outstanding level achieved in 2017. • After inclusion of the €53 million net capital gain from the Galleria disposal in Hong Kong, operating income increased 9
Slide 6: Revenue and Net Result
R E V E N U E A N D N E T R ES U LT In €m In €m Revenue: +13.0% CAGR over 10 years Net result: +17.1% CAGR over 10 years HERMÈS 2018 RESULTS / 6
Slide 7: Treasury
T R EA S U RY • Free cash flow amounted to €1,4 billion, up 8%. • Net cash gained €553 million to reach €3,5 billion as at 31 December 2018 after payment of the ordinary dividend (€428 million) and an extraordinary dividend (€521 million). HERMÈS 2018 RESULTS / 7
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Slide 9: Women and Men
WO M E N A N D M E N +800 new hires in 2018 with more than 500 people in France, mainly in production and sales Employees worldwide (*) of which 8,846 in France HERMÈS 2018 RESULTS / 9
Slide 10: Production
P RO D U C T I O N • Ramp-up of the leather workshops in Normandy and Saint-Junien. • Opening of the Maroquinerie de l’Allan in April. • Start of work on the Guyenne and Montereau workshops, scheduled for completion in 2020. • A new workshop will be built in Louviers by 2021, ultimately creating 250
Slide 11: Creation
C R EAT I O N • Men’s and women’s ready-to-wear collections met with great success. • New bag and luggage collection with the Mosaïque au 24 bag, and enhancement of the classic Kelly, Birkin and Constance lines. • With spirit and lightness for Silk, with Jeu de soie, designed by Gianpaolo Pagni and
Slide 12: Communication
CO M M U N I C AT I O N Hermès rolls out its different languages in the course of its events : • Fast Forward Men for the men’s universe in Shanghai and Avec elle for the women’s universe in Tokyo • Hermès Carré Club in New York, Toronto, Singapore, Los Angeles and Milan for Silk • Enchaînements lib
Slide 13: Distribution Network
D I ST R I B U T I O N N E T WO R K • Store openings in Hong Kong, Palo Alto, Changsha, Istanbul Emaar, Cancun, Artz Pedregal, Xi’an, Chadstone in Australia and Icon Siam in Bangkok • Some twenty stores reopened after extension, namely: • Monaco, Nice, and Avenue George V in Paris • London Selfridge
Slide 14: Distribution Network
D I ST R I B U T I O N N E T WO R K • Launch of the new hermes.com digital platform in Europe and Australia in H1 2018. • Successful launch of hermes.cn in China at the end of October, opening online sales across the country. H E R M È S 2 0 1 8 R E S U L T S / 14
Slide 15: Activity
ACTIVITY
Slide 16: Revenue by Geographical Area
ef rA\EVENUE BY GEOGRAPHICAL AREA
Slide 17: Revenue by Geographical Area
R E V E N U E BY G EO G R A P H I C A L A R EA Change at in €M 2018 constant rates France 802 6.3% Europe (excl. France) 1,106 7.5% EUROPE 1,909 7.0% Japan 748 7.5% Asia-Pacific (excl. Japan) 2,142 13.7% ASIA 2,891 12.0% Americas 1,059 11.5% Others 108 17.8% TOTAL 5,966 10.4% H E R M È S 2 0 1 8 R E
Slide 18: Revenue by Geographical Area
R E V E N U E BY G EO G R A P H I C A L A R EA H E R M È S 2 0 1 8 R E S U L T S / 18
Slide 19: Revenue by Sector
REVENUE BY \ECTOR ae
Slide 20: Revenue by Sector
R E V E N U E BY S EC TO R Change at in €M 2018 constant rates Leather Goods and Saddlery 2,976 9.4% Ready-to-wear and accessories 1,310 14.1% Silk and textiles 537 3.2% Other Hermès sectors 425 19.6% Perfumes 312 8.9% Watches 169 9.9% Other products 238 7.9% TOTAL 5,966 10.4% H E R M È S 2 0 1 8 R
Slide 21: Revenue by Sector
R E V E N U E BY S EC TO R H E R M E S 2 0 1 8 R E S U L T S / 21
Slide 22: Revenue by Sector
R E V E N U E BY S EC TO R H E R M E S R E S U L T A T S 2 0 1 8 / 22
Slide 23: Income Statement
oO INCOME \TATEMENT S
Slide 24: Consolidated Income Statement
C O N S O L I DAT E D I N C O M E STAT E M E N T % % in €M 2018 revenue 2017 revenue Revenue 5,966 5,549 Cost of sales (1,791) (1,659) Gross margin 4,175 70.0% 3,890 70.1% Communication (298) (5.0)% (275) (5.0)% Other selling, marketing and administrative expenses (1,473) (24.7)% (1,381) (24.9)% Oth
Slide 25: Recurring Operating Profitability
R EC U R R I N G O P E R AT I N G P RO F I TA B I L I T Y In % of Revenue H E R M È S 2 0 1 8 R E S U L T S / 25
Slide 26: Consolidated Income Statement
C O N S O L I DAT E D I N C O M E STAT E M E N T % % in €M 2018 revenue 2017 revenue OPERATING INCOME 2,098 35.2% 1,922 34.6% Net financial income (35) (32) Income tax (670) (669) In % of income before tax 32.5% 35.4% Net income from associates 17 5 Net income attributable to non-controlling interes
Slide 27: Net Profitability
N E T P R O F I TA B I L I T Y In % of Revenue (*) (*) 22.7% restated from capital gain on the sale of the former Galleria store premises in Hong Kong H E R M È S 2 0 1 8 R E S U L T S / 27
Slide 28: Operating Investments
O P E R AT I N G I N V EST M E N T S in €M 2018 Photo homme Stores and distribution 151 Production and divisions 77 Real estate and Group projects 84 Operating investments 312 H E R M È S 2 0 1 8 R E S U L T S / 28
Slide 29: Restated Cash Flow Statement
R ESTAT E D C A S H F LOW STAT E M E N T in €M 2018 2017 Operating cash flows 1,683 1,580 Change in working capital 77 25 Cash flows related to operating activities 1,759 1,606 Operating investments (312) (265) Free Cash Flow 1,447 1,340 Net financial investments (8) (5) Dividends paid (958) (402) T
Slide 30: IFRS Cash Flow Statement
I F RS C A S H F LOW STAT E M E N T in €M 2018 2017 Operating cash flows 1,683 1,580 Change in working capital 77 25 Cash flows related to operating activities 1,759 1,606 Operating investments (312) (265) Free Cash Flow 1,447 1,340 Net financial investments (19) (137) Dividends paid (958) (402) Tre
Slide 31: Evolution of the Operating Cash Flows
E VO LU T I O N O F T H E O P E R AT I N G C A S H F LOW S In €m H E R M È S 2 0 1 8 R E S U L T S / 31
Slide 32: Evolution of Dividend per Share
E VO LU T I O N OF DIVIDEND PER SHARE Exceptional dividend In € per share + €5.00 + €5.00 Ordinary dividend for the period In € per share H E R M È S 2 0 1 8 R E S U L T S / 32
Slide 33: Evolution of Dividend per Share
E VO LU T I O N OF DIVIDEND PER SHARE Dividende exceptionnel + 5,00 € + 5,00 € En € par action Tableau en cours finance Dividende ordinaire au titre de l’exercice En € par action H E R M E S R E S U L T A T S 2 0 1 8 / 33
Slide 34: Outlook
O U T LO O K • Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication. • In the medium-term, despite growing economic, geopolitical and monetary uncertainties around the world, the G
Slide 35: 2019 Will Be the Year for Pursuing Dreams
2019 WILL BE THE YEAR FOR PURSUING DREAMS • In 2019, Hermès is celebrating dreams, our ability to unleash our imagination. • Hermès has already unveiled the new perfume Un Jardin sur la Lagune by Christine Nagel and the Arceau L’heure de la lune watch, reflecting its watch-making expertise, at the S
Slide 36: 2019 Will Be the Year for Pursuing Dreams
2019 WILL BE THE YEAR FOR PURSUING DREAMS • Hermès continues to open e-commerce platforms, in Japan at the end of H1 2019 and in Asia. • The network will grow in 2019 with stores in Orlando, in New York’s Meatpacking district, Xiamen in China and reopenings in Amsterdam, Waikiki, Vancouver and Stole
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