#12022 First Half Results H H HERMÈS PARIS H нн H 29 July 2022 H нн Н Н НН Н H нн н H Т H H H НН#2A DYNAMIC, STRONG AND RESPONSIBLE BUSINESS MODEL Abundant creativity, a unique style and exceptional savoir-faire at the service of our 16 métiers Quality and durability at the heart of the model since its origin ● A strong commitment to job creation, revitalisation of territories and protection of know-how A responsible and committed approach to our customers, employees and partners ● A strong and growing local customer base that benefits from an exclusive omnichannel distribution network 2022 Half Year Results | 2#3= Activity D#4ACTIVITY ● Revenue in the first half of 2022 reached €5.5 billion (+29% at current rates and +23% at constant rates) Activity in the group's stores (+23%) rose sharply, all the geographical areas posted strong growth with good resilience from Asia despite the sanitary situation in China Wholesale activity (+25%) was driven by the recovery in travel retail Sales in the second quarter reached €2.7 billion (+26% at current exchange rates, and +20% at constant exchange rates), with a high level of activity in all business lines 2022 Half Year Results | 4#5= Revenue by geographical area#6N SANTIAGO-V S.GEORGIA .Y.C.-S 8 L Sorms 9 TOKYO RIO 10 G V AZORES 11 + DRESSAGE 12 HERMES PARIS E C AIV BANGKOK REVENUE BY GEOGRAPHICAL AREA in €m France Europe (excl. France) EUROPE Japan Asia-Pacific (excl. Japan) ASIA Americas Other TOTAL June 2022 480 696 1,176 546 2,665 3,211 982 106 5,475 Change at constant rates 41% 34% 37% 20% 15% 16% 34% 28% 23% 2022 Half Year Results | 6#7REVENUE BY GEOGRAPHICAL AREA 2022/2021 Other France 9% / 8% 2% / 2% O Americas 18% / 16% Asia-Pacific (excl. Japan) 49% / 51% Europe (excl. France) 12% 12% Japan 10% / 11% Résultats Semestriels 2022 | 7#8Revenue by sector |||#9REVENUE BY SECTOR in Em Leather Goods and Saddlery Ready-to-wear and accessories Silk and textiles Other Hermès sectors Perfume and Beauty Watches Other products TOTAL June 2022 2,358 1,458 372 648 230 262 146 5,475 Change at constant rates 12% 36% 29% 33% 23% 55% 9% 23% 2022 Half Year Results | 9#10REVENUE BY SECTOR 2022/2021 Parfume and Beauty 4% / 4% Other Hermès sectors 12% / 11% Silk and Textiles 7% / 7% Ready-to-wear and Accessories 26% / 24% Watches Other products 5%/4% 3% / 3% Leather Goods and Saddlery 43% / 47% 2022 Half Year Results | 10#11Highlights MEND 11 O 97 0#12~ NETI Ⓒ ABUNDANT CREATIVITY AND UNIQUE KNOW-HOW Enrichment of the leather goods collection with the suitcase R.M.S and the models HAC à Dos, Bolide Skate and Della Cavalleria Successful women's and men's ready-to-wear collections presented during the Paris Fashion Weeks, and fashion accessories collections • Great success of the new tableware Soleil d'Hermès and the collections of the house presented during the Milan Design Week 2022 ● A very nice welcome of the new watch Arceau Le temps voyageur at the Watches and Wonders fair end of March in Geneva Launch and success of the fourth chapter of Beauty, Hermès Plein Air and success of the collection of infused care oil for lips, Hermèsistible Successful launch of the perfume Terre d'Hermès Eau Givrée and the cologne Eau de Basilic Pourpre 2022 Half Year Results | 12#13DEVELOPMENT OF PRODUCTION CAPACITIES Five new leather goods workshops in the five coming years: > Louviers (Eure) and La Sormonne (Ardennes), scheduled in 2023 > Riom (Puy-de-Dôme), scheduled in 2024 L'Isle-d'Espagnac (Charente), scheduled in 2025 > Loupes (Gironde), scheduled in 2026 > Continuation of works at the Pierre-Bénite textile site, near Lyon Capacity investments strengthening in all business lines 2022 Half Year Results | 13#14HERMES AN INTEGRATED, OMNICHANNEL AND EXCLUSIVE DISTRIBUTION NETWORK (1/2) • Investments continuing in the multilocal distribution network Opening of new stores: > Austin, third store in Texas (United States) > Zhengzhou, first store in Henan (China) Expansion and renovation of stores: Costa Mesa in California (United States) > Doha Vendôme (Qatar) et Dubai (United Arab Emirates) Bangkok Kingpower (Thailand), Hong Kong Pacific Place and Macau One Central (Greater China) > > 2022 Half Year Results | 14#15000 220 T U TAIL $ AN INTEGRATED, OMNICHANNEL AND EXCLUSIVE DISTRIBUTION NETWORK (2/2) ● ● Strong increase of traffic and e-commerce sales worldwide An entry point to the Hermès universe for new customers (78%), complementary to the stores • New omnichannel services and an increasingly wide range of products available 2022 Half Year Results | 15#16A SINGULAR COMMUNICATION Revealing Hermès in an authentic and unconventional manner: HermèsFit in Bangkok ▪ Hermès in the Making in Turin and Detroit ▪ Saut Hermès at the Grand Palais éphémère ▪ The Fabrique de la légèreté in Tokyo ■ Renewing the pleasure of welcoming our customers to thank them for their loyalty: Techno-Équestre in Tokyo ▪ Kitchen dinner in Los Angeles Media campaigns: ▪ The Saddler's spirit ▪ Le teint prend l'air 2022 Half Year Results | 16#17Responsible and sustainable development#18SOCIALLY RESPONSIBLE COMMITMENTS FY 2021 + 800 including 575 in France 18 400 H1 2022 • At the end of June 2022, the group employed 18,400 people, including 11,500 in France, with an acceleration in job creation (>800 recruitments in the first half, of which 575 in France) • Announcement of a 2nd €100 gross increase per month in July in Europe, following the first January increase in France and the exceptional group bonus of €3,000 for the year 2021 • Direct employment rate of people with disabilities: 6.4% 2022 Half Year Results | 18#19INCREASING INTEGRATION OF NEW TALENTS 1.25% of total payroll dedicated to training Continuation of the deployment of the École Hermès des Savoir-Faire within the leather goods workshops: > Charleville-Mézières (Ardennes) in January 2022, after Fitilieu (Isère) in September 2021 Launch of the École des Artisans de la Vente in April 2022 › A school for service excellence, with people at its centre 2022 Half Year Results | 19#20A COMMITTED MODEL WITH A LIMITED FOOTPRINT 0 RESPONSIBLE EMPLOYER >800 Jobs created in H1 2022 LOCAL ANCHORING 78% Of objects are made in France CLIMATE 1.5°C Carbon trajectory commitment validated by SBTi TRANSPARENCY AWARDS #1 SBF 120, all categories DIVERSITY AND INCLUSION 6.4% Direct disability employment rate VERTICAL INTEGRATION 58% Objects made in in-house and exclusive workshops ENERGY TRANSITION 100% Green electricity in France ENGAGED WITH COMMUNITIES 400 Local actions and partnerships in 2021 GENDER EQUALITY 60% Women managers group LOCAL SUPPLIERS 66% Of purchases come from France (Top 50) DURABILITY 161,000 Repairs in workshops PARTNERSHIPS €3.8m Purchases from socially supported organisations 2022 Half Year Results | 20#21II || Results 8 U 11 11 "I 11#2211 11 11 11 11 Income statement#23CONSOLIDATED INCOME STATEMENT in €m Revenue Cost of sales Gross margin Communication Other sales and administrative expenses Other income and expenses Recurring operating income Other non-recurring income and expenses Operating income Change y-o-y % June 2022 revenue 5,475 (1,586) 3,889 71.0% (196) (3.6) % (982) (17.9) % (406) (7.4)% 2,304 42.1% 2,304 34% 42.1% % June 2021 revenue 4,235 (1,207) 3,028 71.5% (145) (3.4)% (790) (18.7)% (371) (8.8)% 1,722 40.7% 1,722 40.7% 2022 Half Year Results | 23#24HALF YEAR RECURRING OPERATING PROFITABILITY EVOLUTION In % of revenue * 33.1* 2013 * Before IFRS16 2014 * 2015 33.9 * 32.6* 32.5 III II 34.3 2016 * 2017 34.9 34.8 2018 2019 21.5 2020 40.7 2021 42.1 2022 2022 Half Year Results | 24#25Ka CONSOLIDATED INCOME STATEMENT in €m Operating income Net financial income Income tax In % of income before tax Net income from associates Non-controlling interests Net income attributable to owners of the parent Change y-o-y June 2022 revenue 2,304 42.1% (35) (647) 28.5% 25 (6) 1,641 % 40% 30.0% % June 2021 revenue 1,722 40.7% (47) (511) 30.5% 13 (3) 1,174 27.7% 2022 Half Year Results | 25#26HALF YEAR NET PROFITABILITY EVOLUTION In % of revenue 21.6 27.7 23.0 21.6 ||| 11 LII 13.5 2013 2014 21.0 2015 22.3 2016 22.3 2017 24.8 2018 2019 2020 30.0 2021 2022 2022 Half Year Results | 26#27HALF YEAR REVENUE AND NET INCOME EVOLUTION in €m 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Sales CAGR over 10 years +13.2% Net income CAGR over 10 years +17.2% 1,591 335 2012 1,767 382 2013 1,907 412 2014 2,299 482 2015 2,440 545 2016 2,713 605 2017 - Revenue 2,853 706 2018 Net income 3,284 754 2019 2,488 335 2020 4,235 1,174 2021 5,475 1,641 2022 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 in €m 2022 Half Year Results | 27#28Investments and cash flow 0#29OPERATING INVESTMENTS in €m Stores and distribution Production and divisions Real estate and Group projects Operating investments June 2022 78 68 45 190 2022 Half Year Results | 29#30RESTATED CASH FLOW STATEMENT in €m Operating cash flows Change in working capital Cash flows related to operating activities Operating investments Repayment of lease liabilities Adjusted free cash flow Financial investments Dividends paid Treasury share buybacks net of disposals Other changes Change in net cash position Closing restated net cash position Opening restated net cash position June 2022 June 2021 2,001 (261) 1,740 (190) (128) 1,421 (10) (850) (115) 169 615 7,685 7,070 1,487 65 1,552 (214) (102) 1,236 (489) (162) 33 617 5,521 4,904 2022 Half Year Results | 30#31Simplified balance sheet D 4 - 1#32SIMPLIFIED BALANCE SHEET In €bn Non-current assets Inventories Other current assets Cash 15.1 5.2 1.6 0.9 7.3 Assets 13.8 5.0 1.4 0.7 6.7 30/06/2022 31/12/2021 Liabilities 15.1 10.3 2.1 2.7 13.8 9.4 1.9 2.6 30/06/2022 31/12/2021 Shareholders equity Non-current liabilities Current liabilities 2022 Half Year Results | 32#33Outlook O#34OUTLOOK ● ● For 2022, the impacts of the health context are still difficult to assess. Our highly integrated craftsmanship model and balanced distribution network, as well as the creativity of our collections and our customers' loyalty allow us to look to the future with confidence In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates 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 2022 Half Year Results | 34#352022:THE SADDLER'S SPIRIT ● ● ● • Store openings and expansions, notably: ● ● Acceleration of job creation in all our métiers and multilocal, in-house training and transmission of savoir-faire ● Strenghthening of investments in production capacities to support our 16 métiers > > > The new Flagship in New York, 706 Madison (United States) Qiantan Taikoo Li in Shanghai (China) Strasbourg (France), Barcelona (Spain), Wuhan Heartland 66 store (China) New digital platform in Brasil Presentation of Les jeux de l'ombre, a new haute bijouterie collection Continuation of programmes backed by the Fondation d'entreprise Hermès (Manufacto, Manuterra) 2022 Half Year Results | 35#36)))) Questions and answers I || ))))#37||