Slide 1: Hermès 2020 Full year results
HERMES 2020 Full year results aerhy HERMES PARIS 19 FEBRUARY 2021
Slide 2: Responsibility, Solidarity and Commitment
RESPONSIBILITY, SOLIDARITY AND COMMITMENT ▪ Responsibility towards its employees ➢ Protecting employees’ health by implementing strict safety measures ➢ Maintaining jobs and basic salaries of its 16,600 employees worldwide ▪ Solidarity towards the community ➢ Donation of €20 million to the AP-HP (As
Slide 3: A Solid, Unique and Agile Artisanal Model
A SOLID, UNIQUE AND AGILE ARTISANAL MODEL ▪ Quality requirement, creativity and innovation at the heart of the model ▪ A permanent quest for the excellence of objects, designed to last, to be transmitted and to be repaired ▪ An integrated (>60%) and local (80%) production in France, the mastery of u
Slide 4: Activity
ACTIVITY
Slide 5: Activity
ACTIVITY ▪ Revenue amounted to €6.4 billion, a decrease limited to 6% at constant exchange rates and 7% at current exchange rates ▪ The revenue generated in the group's stores (-2% at constant exchange rates) returned to growth in the second semester after an acceleration in the 4th quarter and a re
Slide 6: Revenue by geographical area
Revenue by geographical area
Slide 7: Revenue by Geographical Area
REVENUE BY GEOGRAPHICAL AREA Change at in €M 2020 constant rates France 620 (28.6)% Europe (excl. France) 953 (20.0)% EUROPE 1,573 (23.6)% Japan 834 (3.7)% Asia-Pacific (excl. Japan) 2,915 14.4% ASIA 3,749 9.9% Americas 959 (20.5)% Others 108 (9.9)% TOTAL 6,389 (6.0)% HERMÈS 2020 RESULTS / 7
Slide 8: Revenue by Geographical Area
REVENUE BY GEOGRAPHICAL AREA HERMÈS 2020 RESULTS / 8
Slide 9: Revenue by sector
Revenue by sector
Slide 10: Revenue by Sector
REVENUE BY SECTOR Change at in €M 2020 constant rates Leather Goods and Saddlery 3,209 (4.8)% Ready-to-wear and accessories 1,409 (9.2)% Silk and textiles 452 (22.8)% Other Hermès sectors 643 23.9% Perfumes 263 (19.0)% Watches 196 2.3% Other products 218 (15.3)% TOTAL 6,389 (6.0)% HERMÈS 2020 RESULT
Slide 11: Revenue by Sector
REVENUE BY SECTOR HERMÈS 2020 RESULTS / 11
Slide 12: Highlights
HIGHLIGHTS
Slide 13: Results and Treasury
RESULTS A N D T R E A S U R Y ▪ Operating income amounted to €2.1 billion, after a strong improvement in the second half ▪ Operating profitability reached 32.4% of sales ▪ Consolidated net profit (group share) was €1.4 billion (-9%) ▪ Restated net cash of €4.9 billion compared to €4.6 billion as of
Slide 14: Creation
CREATION ▪ Successful launch of the 16th Hermès métier: Beauty ▪ Enrichment of the leather goods collection with the Chaîne d’ancre and Birkin cargo models, and the sac à malice Space ▪ Presentation of women’s and men’s ready-to-wear collections with a new digital format for the men’s Spring- Summer
Slide 15: Production
PRODUCTION ▪ First stone of the Louviers leather workshop (Eure) in September ▪ Building work continuing at the Guyenne leather workshop in Gironde and the Montereau leather workshop in Seine-et- Marne, for inaugurations scheduled in 2021 ▪ A new site scheduled in the Ardennes region, by 2023 and an
Slide 16: Distribution Network
DISTRIBUTION NETWORK ▪ Reinforcement of the relationship with local customers and support to the digitalisation of uses ▪ Services innovation at each step of the purchasing experience ▪ Worldwide success of the e-commerce ▪ Opening of new digital platforms in Asia and in the Middle East HERMÈS 2020
Slide 17: Distribution Network
DISTRIBUTION NETWORK ▪ Investments continuing in the distribution network ▪ Extension of the network and opening of new territories: ➢ Moscow (Russia), Osaka (Japan), Madrid (Spain) ▪ Store extensions and renovations: ➢ Sydney (Australia), Guangzhou and Dalian (China), Tokyo and Sendai Fujisaki (Jap
Slide 18: Communication
COMMUNICATION ▪ Further balance between physical presence and digital technology ➢ Men’s digital performance ➢ Women’s fashion show in Paris ▪ Initiatives and formats adapted to local sanitary contexts ➢ Window displays and Joyful days operation ➢ Petit h stop-off in Taiwan ▪ Extended paid media cam
Slide 19: Responsible and Sustainable Development
i) RESPONSIBLE AND SUSTAINABLE DEVELOPMENT G
Slide 20: Women and Men
WOMEN AND MEN ▪ A responsible employer: jobs maintained worldwide and special bonuses granted ▪ Workforce growth continuing, reaching 16,600 people at the end of 2020, including 10,383 in France ▪ Education and transmission ➢ École du cuir, internal schools in textile and tanning ➢ Partnerships with
Slide 21: Territorial Anchoring
TERRITORIAL ANCHORING ▪ 51 production sites organised around expertise hubs, located in 9 different regions in France and opening of new sites, that contribute to revitalising regions ▪ Solidarity with our partners and suppliers, continued investments and vertical integration ▪ Transmission of savoi
Slide 22: The Planet
THE PLANET ▪ Commitment of sustainable procurement reinforced with our suppliers ▪ Object durability and management of unsold stock ➢ Over 120,000 repairs ➢ Recycling in line with the principles of a circular economy and donations to not-for-profit organisations ▪ Reduction of CO2 emissions: ➢ In li
Slide 23: Results
RESULTS
Slide 24: Income statement
Income statement
Slide 25: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % in €M 2020 2019 revenue revenue Revenue 6,389 6,883 Cost of sales (2,013) (2,125) Gross margin 4,376 68.5% 4,758 69.1% Communication (279) (4.4)% (357) (5.2)% Other selling, marketing and administrative expenses (1,420) (22.2)% (1,459) (21.2)% Other income and expen
Slide 26: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % in €M 2020 2019 revenue revenue OPERATING INCOME 2,073 32.4% 2,339 34.0% Net financial income (86) (69) Income tax (613) (751) In % of income before tax 30.9% 33.1% Net income from associates 16 16 Net income attributable to non-controlling interests (4) (7) NET INC
Slide 27: Evolution of Net Profitability
EVOLUTION OF NET PROFITABILITY In % of revenue * ** (*) 22.7% after restatement from the capital gains from the Galleria store premises in Hong Kong in 2018 (**) 20.3% after restatement from the non-recurring profit related to the deconsolidation of Shang Xia in 2020 HERMÈS RESULTS 2020 / 27
Slide 28: Investments and cash flow
Investments and cash flow
Slide 29: Operating Investments
OPERATING INVESTMENTS in €M 2020 Stores and distribution 195 Production and divisions 124 Real estate and Group projects 129 Operating investments 448 HERMÈS 2020 RESULTS / 29
Slide 30: Restated Cash Flow Statement
RESTATED CASH FLOW STATEMENT in €M 2020 2019 Operating cash flows 1,993 2,063 Change in working capital (350) 24 Cash flows related to operating activities 1,642 2,087 Operating investments (448) (478) Repayment of lease liabilities (199) (203) Adjusted free cash flow 995 1,406 Financial investments
Slide 31: Evolution of the Dividend per Share
EVOLUTION OF THE DIVIDEND PER SHARE Exceptional dividend + 5.00 € In € per share * Ordinary dividend For the period In € per share * Ordinary dividend proposed for shareholders’ approval at the next General Meeting HERMÈS 2020 RESULTS / 31
Slide 32: Outlook
OUTLOOK
Slide 33: Outlook
OUTLOOK ▪ For 2021, the impacts of the COVID-19 epidemic are currently difficult to assess, as the scale, duration and geographic extent of the crisis evolve every day ▪ In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitiou
Slide 34: 2021: An Odyssey
2021: AN ODYSSEY ▪ Strengthening of our investments in production capacity and regional anchoring: inauguration of Guyenne (Gironde) and Montereau (Seine-et-Marne) leather goods workshops ▪ Development and diversification of our distribution network, with stores opening and extension as well as the
Slide 35: Questions and answers
Questions and answers
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