HERMES INTERNATIONAL : Activity Report 2023

Activity Report

Continuing to be astonished as a foundation for tomorrow's successes What a pleasure it is, having achieved some historic results, to be able to celebrate once again the success of the house's creations and innovations, the fruit of hard work by our teams all over the world. We would like to thank and congratulate them on their continued ability to surprise and amaze us, in keeping with the 2023 theme of Astonishment.

Because, yes, this success could almost be seen as a challenge issued to the uncertain economic and geopolitical context, and to the high tensions and profound transformations that some regions are currently experiencing. And yet, is it really surprising to want to treat oneself, to seek out companion objects designed to last and gain a patina, to want to dream and escape the grave times for a few moments?

Today, Hermès is a refuge. In our house of creations and new ideas, where quality is never compromised and the finest materials are always sought, we strive to remain true to our high standards as artisans and merchants.

Being astonished by the world

In 2023, we continued to expand and enhance our network of stores to receive our customers in the best possible surroundings. Our stores in Bordeaux (France), Chicago (USA), Vienna (Austria) and Zhengzhou (China) reflect the aesthetics of local materials, colours and designs. It is hardly surprising, then, to find stained glass windows in Vienna, even if they were created by a designer more accustomed to working on silk scarves and tableware. Are you familiar with shades of bleu Encre and rouge Casaque? Whether it's with the mascaras and eyeshadows of Le Regard or the women's and men's ready-to-wear collections, colour has been a

major theme of our product launches.

→

3

With the new Louviers and la Sormonne workshops, and the extension of the textiles site at Pierre-Bénite, we are maintaining our ambition to establish strong regional roots and centres of excellence for our crafts. Beautiful things are made in beautiful places, and everything is even more beautiful when our buildings are E4C2 certified 1. Being anchored in a place also means strengthening relationships with our long-term partners and making an active contribution to the expansion of these sectors.

To secure our supply chains and support the growth of all our métiers, we have continued to invest in increasing capacity and have accelerated our vertical integration projects, particularly in jewellery and shoes.

Confident in the relevance of our business model, we are maintaining and strengthening our commitment to environmental and social responsibility. As the source of our exceptional materials, nature is at the heart of our business model, and preserving it plays a central role in our CSR actions. Global warming and its impact on biodiversity, as well as the industrialisa- tion of raw materials, are areas of concern that we are addressing through our climate strategy, our concrete initiatives in terms of responsible supply chains, and our policies for preserving natural resources.

In order to establish scientific objectives for the preservation of biodiver- sity, the Group has committed the SBTN (Science Based Targets for Nature) initiative and is one of 120 companies worldwide to have done so.

Ranked 4th among SBF120 companies for the proportion of women in its management bodies, the house's social model is acclaimed. The École Hermès des savoir-faire, with its eight schools, is now able to award a certificate of professional qualification (CQP) in cutting and stitching in addition to the CAP vocational qualification in leatherwork. Trans- mission, training, development and job creation - more than 2,400 new employees were recruited in 2023 - are the watchwords of our approach to corporate citizenship and the expression of our human values. For the third time, the house was awarded the Grand Prix Emploi France by the

Humpact rating agency.

→

1. The leather goods production sites of Louviers and la Sormonne, inaugurated in 2023, are today the first two industrial buildings in France to be E4C2 certified, a label which assesses environmental performance according to energy consumption and carbon emissions. They reflect the responsible construction standard developed by the house, which is particularly demanding in terms of carbon footprint, air quality, local sourcing, biodiversity and environmental health, thus contributing to our objective of halving the carbon footprint per square metre built by 2030, compared to 2018.

4

Making a serious effort not to take ourselves too seriously

2023 was a busy year for events and opportunities to get together. In keeping with our tradition, we welcomed more than 52,000 visitors to the Hermès in the Making exhibition in Lille (France), Chicago (United States) and Bangkok (Thailand), and more than 35,000 visitors to the immersive La Fabrique de la légèreté exhibition in Taiwan, Los Angeles (United States), Hong Kong and Shanghai (China).

We come to the end of 2023 happy and proud of the work we have done, and with a promise to continue astonishing ourselves in 2024.

Axel Dumas, Executive Chairman Henri-Louis Bauer, Representative of Émile Hermès SAS, Executive Chairman

5

Inspired by a design from the 1970s,

this cuff presents a pure aesthetic that combines leather and metal.

Since 1837, Hermès has remained faithful to its artisan model and its humanist values. The freedom to create, the spirit of innovation, the constant search for beautiful materials, the transmission of savoir-faire of excellence, and the aesthetic of functionality all forge the singularity of Hermès, a house of objects created to last.

An independent, family-owned company which encompasses 16 métiers, Hermès is dedicated to keeping the majority of its production in France through its 60 production and training sites and to developing its network of 294 stores in 45 countries. The group employs 22,000 people world- wide, including 13,700 in France, of which nearly 7,000 are craftspeople 1. Axel Dumas, a sixth-generation family member, has been Hermès CEO since 2013.

Founded in 2008, the Fondation d'entreprise Hermès supports projects in the areas of artistic creation, education, training and the transmission of savoir-faire, biodiversity, and the preservation of the environment.

1. As of 31st December 2023.

7

Made from vintage silk, the Is This a Love Story?

scarf is a witty and colourful behind-the-scenes story set in a stable.

EXECUTIVE CHAIRMEN	EXECUTIVE COMMITTEE
AXEL DUMAS	AXEL DUMAS	WILFRIED GUERRAND
Executive Chairman	Executive Chairman	Executive Vice President
		Métiers, IT Systems
ÉMILE HERMÈS SAS	FLORIAN CRAEN	and Data
Executive Chairman	Executive Vice President	ÉRIC DU HALGOUËT
represented by	Sales and Distribution
HENRI-LOUIS BAUER	CHARLOTTE DAVID	Executive Vice President
	Finance
	Executive Vice President	SHARON MACBEATH
	Communication
		Group Human Resources
	PIERRE-ALEXIS DUMAS	Director
	Artistic Executive	GUILLAUME DE SEYNES
	Vice President
		Executive Vice President
	OLIVIER FOURNIER	Manufacturing Division
	Executive Vice President	and Equity Investments
	Corporate Development	AGNÈS DE VILLERS
	and Social Affairs
		Chairwoman and
	CATHERINE FULCONIS	Executive Vice President
	Executive Vice President	Hermès Perfume
	and Beauty
	Leather Goods-Saddlery
	and petit h

9

MANAGEMENT BODIES	SUPERVISORY BOARD
	ÉRIC DE SEYNES
	Chairman
	MONIQUE COHEN
	Vice Chairwoman
	DOMINIQUE SENEQUIER
	Vice Chairwoman
	DOROTHÉE ALTMAYER
	PRESCIENCE ASSOH 1
	CHARLES-ÉRIC BAUER
	ESTELLE BRACHLIANOFF
	MATTHIEU DUMAS
	BLAISE GUERRAND
	JULIE GUERRAND
	OLYMPIA GUERRAND
	RENAUD MOMMÉJA
	ANNE-LISE MUHLMEYER 1
	ALEXANDRE VIROS
	AUDIT AND RISK
	COMMITTEE
	MONIQUE COHEN
	Chairwoman
	CHARLES-ÉRIC BAUER
	ESTELLE BRACHLIANOFF
	RENAUD MOMMÉJA
	ALEXANDRE VIROS

1. Employee representative.

CAG-CSR COMMITTEE

DOMINIQUE SENEQUIER

Chairwoman

ESTELLE BRACHLIANOFF

MATTHIEU DUMAS

ACTIVE PARTNER

ÉMILE HERMÈS SAS Active Partner, represented by its Management Board:

HENRI-LOUIS BAUER

Executive Chairman

FRÉDERIC DUMAS

Vice Chairman

PASCALE MUSSARD

Vice Chairwoman

SANDRINE BREKKE

CAPUCINE BRUET

ALICE CHARBIN ÉDOUARD GUERRAND LAURENT E. MOMMÉJA JEAN-BAPTISTE PUECH GUILLAUME DE SEYNES

10