Hermes International : 2024 Universal Registration Document (2024 URD, including the annual financial report)

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PRESENTATION OF THE GROUP AND ITS RESULTS 9 1.1 Six generations of craftspeople 10 1.2 Group governance 13 1.3 Strategy 14 1.4 Simplified organisation chart and Group locations 17 1.5 Key financial and non - financial figures 24 1.6 Revenue and activity by métier 27 1.7 Revenue and activity by geographical area 36 1.8 Comments on the consolidated financial statements 40 1.9 Significant events since the end of the financial year 41 1.10 Outlook 42 1.11 Fondation d'entreprise 44 CORPORATE SOCIAL RESPONSIBILITY AND NON ‐ FINANCIAL PERFORMANCE 47 2.1 Sustainability information 48 2.2 Report on the certification of sustainability information 196 2.3 Duty of care 201 2.4 Cross - reference tables and additional information 204 CORPORATE GOVERNANCE 223 Supervisory Board report on corporate governance 225 3.1 The company's corporate governance code 225 3.2 Ambitious and balanced governance 229 3.3 Administrative and management bodies 232 3.4 Organisation of the Supervisory Board 243 3.5 Functioning of the Supervisory Board 281 3.6 Specialised committees 291 3.7 Evaluation of the Supervisory Board and committees 299 3.8 Compensation and benefits of Corporate Officers 302 3.9 Other information 324 3.10 Other information from the Executive Management report 330 RISK FACTORS AND MANAGEMENT 333 4.1 Risk factors 334 4.2 Insurance policy and risk hedging 357 4.3 Risk management, internal control and internal audit 358 CONSOLIDATED FINANCIAL STATEMENTS 369 5.1 Consolidated income statement 370 5.2 Consolidated statement of comprehensive income 370 5.3 Consolidated balance sheet 371 5.4 Consolidated statement of changes in equity 372 5.5 Consolidated statement of cash flows 373 5.6 Notes to the consolidated financial statements 374 5.7 Statutory Auditors' report on the consolidated financial statements 413 PARENT COMPANY FINANCIAL STATEMENTS 419 6.1 Income statement 420 6.2 Balance sheet 421 6.3 Changes in equity 422 6.4 Statement of cash flows 422 6.5 Notes to the financial statements 423 6.6 Statutory Auditors' report on the financial statements 438 6.7 Table of results over the last five years 442 6.8 Information on payment terms 443 6.9 Other information on the parent company financial statements 444 INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL 447 7.1 Presentation of Hermès International 448 7.2 Information on share capital and shareholders 457 7.3 Dividend policy 469 7.4 Stock market information 470 7.5 Shareholder information 474 COMBINED GENERAL MEETING OF 30 APRIL 2025 479 8.1 Agenda 480 8.2 Explanatory statements and draft resolutions 482 8.3 Supervisory Board report to the Combined General Meeting of 30 April 2025 520 8.4 Statutory Auditors' reports 522 ADDITIONAL INFORMATION 533 9.1 Persons responsible for the universal registration document 534 9.2 Persons responsible for auditing the financial statements 535 9.3 Consultation of regulatory information 535 9.4 Information included by reference 536 9.5 Cross - reference tables 538 9.6 Glossary 553 The French language version of this Document d'Enregistrement Universel (universal registration document) was filed on 27 March 2025 with the French Financial Markets Authority (Autorité des Marchés Financiers), as the competent authority under Regulation (EU) 2017/1129, without prior approval in accordance with Article 9 of said Regulation. This Document d'Enregistrement Universel (Universal Registration Document) may be used for the purposes of a public offer of financial securities or the admission of financial securities to trading on a regulated market only if supplemented by a transaction note and, if applicable, a summary and all amendments to the Document d'Enregistrement Universel (Universal Registration Document). The group of documents then formed is approved by the French Financial Markets Authority in accordance with Regulation (EU) 2017/1129. MESSAGE FROM THE EXECUTIVE MANAGEMENT When the Faubourg is a refuge The year 2024 ended with results that bear witness to the robustness of our business model. This is something we can be proud of, and we would like to thank all our employees who have once again contributed to this success. 2024 was also a pivotal year. Today, the news is full of geopolitical complexity and one major climate crisis after another, highlighting the fragility of what we have previously taken for granted. When times become more uncertain, refuges offer welcome relief. Our customers, both loyal and new, have appreciated the continuity of our approach oriented around creativity, uncompromising quality, and preserving and passing on know - how, all of which provides a guarantee of durability and authenticity. Hermès' recruitment initiatives - creating 2,300 jobs, around 1,300 of them in France - its commitment to training - with its 10 Écoles Hermès des savoir - faire - and to raising awareness - with the Manufacto programme run by the Fondation d'entreprise Hermès in 96 schools - all contribute to job creation, to safeguarding and promoting craftsmanship, and to regional development. The house continued to follow its path in 2024, reaffirming the uniqueness of its integrated business model with the opening of the Maroquinerie de Riom leather workshop in September and the laying of foundation stones for future leather workshops in Loupes (Gironde) and L'Isle - d'Espagnac (Charente). The pace of store openings and the enhancement of the distribution network continued unabated, with new stores in Lille, Atlanta and Shenzhen marking the second half - year, following those in Princeton, Lee Gardens in Hong Kong, and Nantes earlier in the year. The group has also strengthened its vertical integration with the acquisition of the Dubai and Abu Dhabi concessions. 4 The creative abundance that thrives in all our métiers is testament to the talent and inspiration of our artistic directors. We would like to mention the successful launch of Barénia, the new women's perfume by Christine Nagel, as well as the warmly - received eighth haute bijouterie collection designed by Pierre Hardy, and the success of the ready - to - wear collections by Nadège Vanhée and Véronique Nichanian. Charlotte Macaux Perelman and Alexis Fabry brought the home universe to life at Milan Design Week and throughout the year at presentations of the Tressages équestres dinner service. 2024 also brought success for our partner riders Jessica von Bredow - Werndl, Simon Delestre and Ben Maher in a thrilling competition at Versailles in the summer! In a world of algorithms driven by technological acceleration, where uses are constantly evolving, emotion endures and humanity resists, imposing its desire for the beautiful, the good and the lighthearted as well as the sustainable. Perhaps this is what we should remember about 2024. So it is with confidence that we look forward to 2025 and continue on our path, inspired by the theme Drawn to craft - a theme that combines the imagination of childhood with the precision of craftsmanship in a language that is resolutely human, timeless and universal. Axel Dumas Henri - Louis Bauer EXECUTIVE REPRESENTATIVE OF ÉMILE HERMÈS SAS, CHAIRMAN EXECUTIVE CHAIRMAN 5 HIGHLIGHTS 2024 The Group's consolidated revenue amounted to €15.2 billion in 2024, up by 15% at constant exchange rates and by 13% at current exchange rates compared to 2023. Recurring operating income reached €6.2 billion (40.5% of sales) and net profit (group share) reached €4.6 billion (30.3% of sales). In the fourth quarter, sales reached €4.0 billion, increasing by 18% at constant exchange rates and current exchange rates. All the geographical areas confirmed solid growth, with a strong performance of the Americas in particular. Axel Dumas, Executive Chairman of Hermès, said: "In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house's teams, whom I thank warmly. While preserving the group's major balances and its responsibility as an employer, the house is staying the course, attached more than ever to its fundamental values of quality, creativity and savoir-faire." Sales by geographical area at the end of December (at constant exchange rates, unless otherwise indicated) At the end of December 2024, all the geographical areas posted growth. Hermès continued the qualitative development of its exclusive distribution network. Asia excluding Japan (+7%) recorded a remarkable increase, thanks to solid sales in all the countries in the area. Growth reached 9% in the fourth quarter, despite the downturn in traffic in Greater China since the end of the first quarter. In China, the store in Shenyang's MixC mall reopened in December after expansion work, following the Shenzhen Luohu store in October and the Beijing SKP store in May. In Singapore, the newly renovated and extended Takashimaya store also reopened in October. Japan (+23%) achieved a regular and sustained growth, driven by the loyalty of local clients. A new store was opened in the Ginza district of Tokyo in June, following the Azabudai Hills store which opened in February. The Americas (+15%) confirmed excellent growth in 2024. In the United States, the Atlanta store reopened in October after being renovated and expanded, following the April inauguration of the store in Princeton, New Jersey. An event showcasing the petit h creations was staged in New York's Madison store in October. Europe excluding France (+19%) and France (+13%) both performed well, supported by robust demand and the loyalty of local clients, as well as dynamic tourist flows. In November, a new store was inaugurated in Lille, after the June reopening of the renovated and expanded store in Nantes. The newly renovated and extended store in Naples reopened in December. Sales by sector at the end of December (at constant exchange rates, unless otherwise indicated) At the end of December 2024, all métiers except Watches posted solid growth, supported by the house's value strategy. Leather Goods and Saddlery (+18%) achieved a remarkable performance, thanks to the increase in production capacities and particularly strong demand. The collections were enhanced in particular with the Arçon and Hermès Della Cavalleria Élan models. The travel universe unfolded around an R.M.S. Cargo suitcase and weekend bags. The increase in production capacities continued with the September opening of the twenty-third leather goods workshop in Riom (Puy-de-Dôme). Three new workshops will open in the coming three years: L'Isle-d'Espagnac (Charente) in 2025, Loupes (Gironde) in 2026 and Charleville-Mézières (Ardennes) in 2027. Hermès continues to develop both employment and training in its nine regional centres of expertise located across the national territory. The Ready-to-wear and Accessories sector (+15%) continued its solid momentum thanks to the success of the ready-to-wear and shoe collections, blending the house's abundant know-how with its boundless creativity. The men's and women's spring-summer 2025 collections, unveiled at the Palais d'Iéna in June and at the Garde Républicaine in September respectively, were very well received. 6 HIGHLIGHTS 2024 The Silk and Textiles sector (+4%) benefited from the diversity of creations, materials and formats in both the women's and men's collections. Perfume and Beauty (+9%) achieved steady growth. The Perfume collections were enhanced in September with the new women's perfume Barénia , named after a natural heritage leather of the house. It is meeting with great success worldwide, alongside classics such as Terre d'Hermès and new creations including Hermessence Oud Alezan and H24 Herbes Vives . The Beauty division continued to expand with the launch of the collection Trait Hermès eye and lip liners. The Watches business line (-4%), penalised by a more challenging context and a high comparison basis, continues its development, displaying singular creativity and remarkable watchmaking know-how. The new complication model Arceau Duc Attelé , the launch of Hermès Cut and the iconic Hermès H08 and Kelly lines have met with great success. The Other Hermès sector (+17%) which include Jewellery and the Home universe, recorded strong growth. The eighth Haute Bijouterie collection, Les formes de la couleur , was presented in Paris, Beijing and Taipei. Solid results Recurring operating income amounted to €6.2 billion, up by 9% from €5.7 billion in 2023. Despite the negative impact of currency hedging, recurring operating profitability reached 40.5% compared to 42.1% in 2023, an exceptionally high level. Consolidated net profit group share grew by 7% to €4.6 billion, representing a net profitability of 30.3% compared to 32.1% last year. The cash flow from operating activities amounted to €5.1 billion and increased by 19%, thanks to a smaller increase in working capital requirements. After operational investments (€1.1 billion) and repayment of lease liabilities, the adjusted free cash flow reached €3.8 billion compared to €3.2 billion last year. After distribution of the ordinary and extraordinary dividend of €2.6 billion, the restated net cash position amounted to €12.0 billion at the end of December 2024 compared to €11.2 billion at the end of 2023. A sustainable and responsible model The Hermès group continued to recruit, increasing its workforce by around 2,300 people, including around 1,300 in France. At the end of 2024, the group passed the 25,000 employees milestone, including 15,556 in France. Over the past three years, Hermès has created around 7,600 jobs, including 60% in France. In line with its ambitions to promote diversity, Hermès reaffirms its commitment to the inclusion of people with disabilities. As a result, the direct employment rate has reached 7.12% in France, doubling in 5 years. True to its commitment as a responsible employer and its willingness to share the fruits of growth with all those who contribute to it daily, Hermès will be giving out a bonus of €4,500 to all its employees worldwide at the beginning of the year in respect of 2024. Hermès also strengthens its commitments to education and the transmission know-how, particularly with the deployment of the École Hermès des savoir-faire, which has extended its training programs to all 10 training schools in France. The company confirms its commitment to local anchoring by promoting local know-how and employment. In line with its commitments to fight climate change, the Hermès group has continued its actions in accordance with its 2030 targets, validated by the Science Based Target initiative (SBTi). Since 2018, the reduction in emissions from scopes 1 and 2 has been 63.7% in absolute terms, and 50.5% in intensity for scope 3. The sustainable and responsible dimension of the house's craftsmanship model was rewarded in July with the Grand Prix in all categories at the Transparency Awards, an 11-point increase in the S&P ESG rating agency's evaluation, and by the inclusion in the CDP's "A-list" for the third year in a row. These results reflect the house's commitments and values.

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