#1' 20 Analyst Day 8 December 2021 HERMÈS PARIS HD P#2D H Hermès: the dynamics of the business model Éric du Halgouët, Executive Vice-President Finance HERMES PARIS Analyst Day#3Summary 1. Uniqueness and performance of the craftmanship business model 2. An exclusive and geographically balanced distribution network 3. A singular communication 4. Agility and entrepreneurial spirit at the heart of the métiers HERMES PARIS Analyst Day#4Uniqueness and performance of the craftmanship business model HERMES PARIS Analyst Day#5A long-term strategy based on strong pillars (1/2) • Hermès women and men at the heart of the model • An authentic artisanal model Best quality and excellence of our objects Control and transmission of unique know-how Vertical integration and strong regional anchors "Made in France" The power of creation The freedom to reinvent and to innovate A strong creativity and a radical style true to its origins Desirable objects that can be repaired Analyst Day 8 December 2021/ 5 -#6F A long-term strategy based on strong pillars (2/2) • A multi local dynamic The diversity of regions The proximity and loyalty of our customers The freedom of purchase • Reinforced resilience Financial independence and robustness Sound and rigorous financial management A strategic vision of investment projects Analyst Day - 8 December 2021 / 6#7MES M PARRON PLAT TUR MES ffum A strong and resilient growth path In €m 4,400- 4,000 3,500 3,000 - 2,500 2,000 1,500 1,DD 12 1,306 201 2011 1,591 335 2012 Revenue: +12.5% CAGR over 10 years 1,767 First half revenue and net income 382 2013 1,902 412 2014 482 2015 2,440 545 -Revenue 2016 2,713 605 2017 2,853 Nel income 706 Net income: +15.0% CAGR over 10 years 3,284 2018 754 2019 2,488 335 2020 4,235 - 1,174 2021 In €m -2,0KID 1,800 1,000 1.400 1,200 1,000 800 - 600 700 (1 Analyst Day 8 December 2021/ 7#8In % of revenue * 31.2 2011 32.1 Annual operating profitability 32.5 31.5 31.8 A solid operating performance. 32.6 34.6 34.8 34.0* Recurring operating profitability after application of IFRS 16 * 31.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 In % of revenue 32.1 33.1 First half operating profitability 32.6 2012 2013 2014 32.5 2015 33.9 34.3 * 34.9 * 34.8 * 21.5 * 40.7 2016 2017 2018 2019 2020 2021 Analyst Day - 8 December 2021 / 8#9ONE WA ONE INN HERMES TAL ANAYBAYTAY YWNWM HERMES Continued operating investments in €M Stores and distribution Production and divisions Real estate and Group projects Operating investments H1 2021 97 56 61 214 FY 2020 195 124 129 448 FY 2019 263 107 108 478 Analyst Day - 8 December 2021 / 9#10In €m Strong generation of cash 1,212 2016 Annual adjusted free cash flow 1,447 ill 1,340 2017 2018 1,406 2019 995 2020 €1.2 bn adjusted free cash flow H1 2021 Analyst Day 8 December 2021 / 10 -#11Strong net cash and financial structure In millions € 6,568 4,562 Equity and net cash FY 2019 1.21x 7,380 4,904 FY 2020 Equity attributable to owners of parent 8,024 5,521 H1 2021 Restated net cash Analyst Day - 8 December 2021 / 11#12An exclusive and geographically balanced distribution network HERMES PARIS Analyst Day#13HERMES HERMES HERMES 111 SOCA A balanced, exclusive and controlled omnichannel network • A balanced and diversified network, with a strong adaptation capacity: 306 exclusive stores in 45 countries E-commerce in 28 countries. Around 6,000 people involved in retail activities ● Singularity of our stores: Best locations Density, intensity and colours Singular style of the house meeting the local culture • Customers at the centre of the omnichannel network: Space for our collections and for all the métiers Services and ultimate comfort for our customers Analyst Day 8 December 2021 / 13 -#14AA = hermes.com < L'OBJET FAIT LE LIEN Avec l'insolence, la force du ciel et du vent, l'objet Hermès continue son. odyssée il prolonge les corps et laisse se déployer l'exaltation et l'énergie qui nous lient. Découvrez 8 n Online strategy, central to an omnichannel approach • Towards €1 billion of sales • 28 countries covered and new launches in 2021 • Most of the products are available online • More than 75% of the e.com customers are new clients ● Recruiting segments: jewellery accessories, silk, perfumes Continuing the development of omni-channel services: Store locator, product locator, e.reservation Web-to-shop, click-in-store Shared stocks Analyst Day - 8 December 2021/ 14#15An exclusive and geographically balanced distribution network IN MILLION € / CHANGE AT CONSTANT EXCHANGE RATES France Europe (excl. France) Japan Asia-Pacific (excl. Japan) Americas Other Total Q3 2021 246 383 241 1,073 393 32 2,367 VAR. 2021 / 2019 + 13% + 23% + 16% + 67% + 40% + 24% + 40% 9M 2021 587 904 710 3,226 1,061 114 6,602 VAR. 2021 / 2019 - 6% + 7% + 20% + 69% + 30% + 27% - + 35% Analyst Day 8 December 2021 / 15#16Revenue by geographical areas (9 months 2021/2019) Americas 16% / 17%. Asia-Pacific (excl.. Japan) 49% / 39% Other 2% / 2% France _9% / 12% Europe (excl. France) 13% / 17% Japan 11% / 13% Analyst Day - 8 December 2021 / 16#17A singular communication HERMES PARIS Analyst Day#18HERME 474267 A coherent and singular communication strategy responding to multiple needs • One house • Three levels of communication: Corporate Products Events • Sixteen métiers Analyst Day 8 December 2021 / 18 -#19<< Le pas de côté » or cultivating the sidestep • 2/3 of communication investments in events, press and public relations and 1/3 in paid media Nourishing an authentic relationship with press and influence (no paid or under-contract influencers and ambassadors) • A multi-local communication approach, to understand and be close to the local cultures of the 45 markets Analyst Day 8 December 2021 / 19 -#20HEHAD Highest quality requirements at every stage of the communication strategy ● Maintaining an active and international network of creative partners Remaining loyal to long-term, high quality, trusted partners Continuously integrating solid, innovating and new expertises, ranging from creation to media activation Analyst Day - 8 December 2021 / 20#21Agility and entrepreneurial spirit at the heart of the métiers HERMES PARIS Analyst Day#22Leather goods • The fundamentals: 1/2 The mastery of manual gestures and the approach of one man, one bag The craftsman signs the bag with his mark Excellence without compromising on materials and know-how quality Reinforcement of capacities around the strategic regional centres Preservation of know-how and renewal of technical expertise with constant innovation (leather, metal parts, etc.) Continued investment in training Analyst Day - 8 December 2021/ 22#23Leather goods • Creation and Durability: ■ ■ ■ ■ The iconic women's bags: Kelly, Birkin, Constance and the other successes: Picotin, Évelyne, Lindy, Herbag, Bolide, 24/24, Verrou Small leather goods Launch of rolling luggage Innovation - R&D Sustainable development (reparability of objects, optimisation of material’s use, highest sourcing standards...) Hermès Horizons: custom-made, unique creations 2/2 Equestrian métier: technical expertise in saddlery-making, exploring new territories petit h: a playful dialogue around sustainability and reinvention, object creation and the reuse of materials O Analyst Day 8 December 2021 / 23 -#24HERMES SINNE SZWHTH *** H24 HERMES HERMES Samdat HERMES PARIS Perfume and Beauty • Perfume ■ Beauty Men's universe: continued desirability of Terre d'Hermès and setting up of H24 Women's universe: continue to build Twilly d'Hermès line and visibility on Eau des Merveilles offer Art of living: keep growing our Garden-perfume & Colognes collections Exclusive: Hermessence collection. Setting up of Rouge Hermès, seasonal limited edition and launch in China over summer 2021 Momentum on Hermès Beauty métier through the launches of Rose Hermès and Les Mains Hermès (2021) O Analyst Day - 8 December 2021/ 24#2510 HERMES PARIS G 11 ·23 21.1 Watches • Hermès' watches exhibiting know-how, emotion and value. • A distinctive style and products carrying unconventional complications such as Arceau Le temps suspendu, or more recently Arceau L'heure de la lune • The feminine offer 3 "pillars" (Cape Cod, Heure H, Arceau) 3 "icons" (Galop d'Hermès, Kelly, Medor) Precious lines (Faubourg, Klikti) and exceptional pieces • The masculine offer Arceau, Slim d'Hermès, Hermès H08, Carré H ● • Priority given to Hermès retail network while developing strategic partnerships externally High growth dynamic worldwide over the last five years, especially in Asia Analyst Day - 8 December 2021 / 25#26Home universe • House textile: variety and wealth of materials and hues • Furniture and lighting: precision of the lines, strength of the designs • Tableware: richness of the patterns, drawings and colours Decorative objects: diversity of the materials and of the associated know-how • Children universe: a playful field Analyst Day - 8 December 2021/ 26#27Silk and Textiles • The Hermès identity: design, colour and material Key distinctive know-how ● • Innovation with novelties on design (double face scarf) and new easy-to- wear formats (triangle, rectangle): Women's silk: twilly, gavroche, carré 70, carré 90, maxi sizes and success of cashmere Men's silk: strengthening of the ties offer and extending the offer to accessories (scarves, pocket squares, losanges etc.) Analyst Day 8 December 2021/ 27 -#28AGEN GETY Jewellery • 3 territories with unique identities: Gold jewellery Silver jewellery High jewellery (image and know-how) ■ Strengthening of our identity and development of our visibility: Power of icons (anchor chain, Kelly) Training of sales associate Consolidation of production capacities ■ POD Analyst Day 8 December 2021 / 28 -#29Ready-to-wear and Accessories • Women's ready-to-wear: collections by Nadège Vanhée-Cybulski • Men's ready-to-wear: collections by Véronique Nichanian • Fashion accessories: shoes, jewellery accessories, belts, etc. Events: HermèsFit with fashion accessories turning into offbeat companions for sport (New York, Paris) A showcase of women's ready-to-wear spring/summer 2022 collection (Los Angeles) Analyst Day 8 December 2021/ 29 -#30All métiers up double-digit vs 2019 IN MILLION € /CHANGE AT CONSTANT EXCHANGE RATES Leather Goods & Saddlery Ready-to-wear & Accessories Silk & Textiles Other Hermès sectors Perfumes Watches Other products Total Q3 2021 1,077 610 159 273 104 83 61 2,367 VAR. 2021 / 2019 + 32% + 49% + 19% + 110% + 20% + 73% + 40% 9M 2021 3,076 1,635 433 736 288 242 193 6,602 VAR. 2021 / 2019 - + 27% + 43% + 10% + 98% + 18% + 77% + 11% + 35% Analyst Day 8 December 2021/ 30#31A stable balance of métiers (9 months 2021/2019) Other Hermès. sectors 11%/ 8% Silk & Textiles. 6% / 8% Perfumes & Beauty 4% / 5% Ready-to-wear & Accessories 25% / 23% ORD Watches 4% / 3% Other Products 3% / 3% Leather Goods & Saddlery 47% / 50% Analyst Day - 8 December 2021/ 31#32169 UNT Outlook Our highly integrated craftsmanship model and balanced distribution network, as well as the creativity of our collections and our customers' loyalty, give us confidence in the future • 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 a singular communication Analyst Day - 8 December 2021/ 32#33땁 T HD HD T Hermès Leather & Saddlery, A unique and constantly reinvented expertise Guillaume de Seynes, Executive Vice-President Manufacturing Division and Equity Investments HERMES PARIS Analyst Day#34Summary 1. An artisanal and integrated production model 2. Leather & Saddlery: modern manufacturing 3. A métier supporting durability 4. A singular and plural creation HERMES PARIS Analyst Day#35An artisanal and integrated production model HERMES PARIS Analyst Day#36Hermès, modern manufacturing An artisanal and sustainable business model Exceptional expertise • Vertical integration of manufacturing Manufacturing and savoir-faire evolving with agility and innovation • Longstanding relationships with partners, consolidated by the acquisition of historical suppliers, particularly in Textiles and Silk ■ Longevity, loyalty and trust Lasting relationships 6,300 artisans at the end of 2020 > 60% of objects made in our internal and exclusive workshops 80% of production in France Analyst Day - 8 December 2021 / 36#37Sustained development of production sites 64 production sites, including 51 in France in 9 regions, organised into centres of expertise Between 2010 and 2020, 10 leather goods workshops launched in France, i.e. one a year on average Production activities increased in the Silk and Textiles sector • Investments in production workshops, particularly: Watches ■ Tableware ■ Shoes ■ : 5,600 artisans in France at the end of 2020 51 manufactures and production sites in France > 1/4 of operational CAPEX dedicated to production Analyst Day - 8 December 2021 / 37#38Saint-Vincent-de-Paul Leather goods workshop/ Saddlery/ Glove-making Tanneries/Tawery Perfumes Textiles Metal parts Vivoin Val-de-Reuil Louviers Challes Saint-Junien Montbron Le Vaudreuil Chabris Roye Bobigny Paris Pantin Saint-Just- le-Martel Nontron Crystal Silversmith Puiforcat Porcelain and Enamel Bootmaker John Lobb Logistics Bogny-sur-Meuse Champigny-sur-Marne Riom Sayat Montereau Bussières Charleville-Mézières Pierre-Bénite Châtillon-le-Duc Irigny Bourgoin-Jallieu Annonay Le-Puy-en-Velay Strong local integration Saint-Louis-lès-Bitche Héricourt Allenjole Seloncourt Bonnétage Belley Aix-les-Bains Fitilieu Les Abrets Le Grand-Lemps Engagement in regions with strong manufacturing expertise working towards centres of expertise Regional centres of expertise contributing to local vitality and economic growth • An employer committed and responsible to its stakeholders Analyst Day - 8 December 2021 / 38#39Integrated production, from supply to the distribution network • Secure supplies •Rigorous traceability of raw materials and strict control of supply chain Quality demanded from suppliers: ■ ■ I Good practices shared with a view to industry advancement Securing supplies in the aim of maintaining unique know-how Consolidated audit policy for all raw material suppliers. Supplier Audit Committee founded in 2019 • Solidarity with our partners and suppliers during times of crisis 20 years average relationship for the Top 50 Analyst Day 8 December 2021 / 39 -#40Leather & Saddlery: modern manufacturing ATA. HERMES PARIS Analyst Day#41Ambition to continue developing a unique artisanal model • Exceptional and uncompromising quality • Prolific creativity • Capturing the spirit of craftsmanship - handcrafted handbags - the artisan signs the bag with his/her mark • Creating items that are made to last, be repaired and passed down from generation to generation. • Agility and efficiency in production striving for creativity and constant innovation c. 50% of revenue in 2020 c. 300 people on human-sized sites Analyst Day - 8 December 2021 / 41#42Continued investments in response to strong demand Investments in production capacities: €124 M invested in production in 2020, primarily in Leather Goods • Leather goods workshop opened in 2021: June 2021: Montereau ■ September 2021: Guyenne Ongoing projects: 2022: Louviers (Eure), 20th leather goods workshop 2022: extension of the leather workshop in Saint-Junien (Limousin) 2023: Sormonne (Ardennes), 21st leather goods workshop 2024: Riom (Puy-de-Dôme), 22nd leather goods workshop 22 leather goods workshops by 2024 + 6/7% average annual volume Analyst Day - 8 December 2021 / 42#43Montbron Les Abrets 2015 Tanneries Du Puy Héricourt 2016 Development of production capacities continuing the principle of community engagement Val de Reuil 2017 20 Allan 2018 Fitilieu 2019 2020 J3L Mégisserie Jullien Guyenne Montereau 2021 Louviers + 2022 Sormonne 2023 Riom 2024 Analyst Day - 8 December 2021 / 43#44Expert artisans with exceptional savoir-faire • c. 4,300 leather workers by the end of 2021 • A very proactive training policy, aiming for the highest quality • Proficiency in skills and techniques: 18 months of initial training, tutorials in the training workshop then career-long training: nearly 5 years to gain full leather & saddlery expertise 9 years: average length of service 39 years: average age c. 1,800 artisans recruited since 2015 • Continue developing versatility and multi-skilling: train in a trade and not a task Ongoing learning and training to foster creativity and maintain long-term employability Wide-ranging expertise: more than 40 bag models Analyst Day - 8 December 2021 / 44#45Transfer of unique savoir-faire • Increasing innovative knowledge transfer via our 90 trainers and 200 tutors • Transfer in the workshops and schools: École du Cuir Collaboration with vocational training centres École Hermès des savoir-faire (CFA) in 2021, in liaison with the French Education Department, awarding a nationally recognized qualification ■ ■ • Guided by people-first values: Focus on men and women I Human-sized production sites Local recruitment during regional job creation Lifelong training to develop expertise, versatility and employability ■ ■ c. 90 trainers in the Leather Goods division 6,100 staff trained at Ecole du Cuir since 2011 Analyst Day - 8 December 2021 / 45#46Hermès, construire des parcours cousus main Talents Hermes PARIS HERMES artisans Tous Hermes m'a donné une chance même si je ne eochais pas toutes les cases. De maroquinière à directrice datter. Pai exercé divers métiers als in de la maison, en France et à étranger. O parcours sur mesure contribue aux liens de confiance très forta que j'ai tis avec les équipes Excellence of the savoir-faire • A unique area opening up to customers and the public: ■ Bagstage with Hermès (Paris, São Paulo, Singapore, Dubai) Hermès in the making (Copenhagen) Please check-in (Hong Kong) • The Tandem and Tilbury programmes, which enables artisans and sales assistants, and store managers and production site managers to swap jobs Analyst Day - 8 December 2021 / 46#47A métier supporting durability HERMES PARIS Analyst Day#48Responsible development policy Rigorous traceability of materials and strict control of supply and production channels: " • Sustainable approach meeting international standards: Supply of skins primarily from European farms Vertical integration, including for crocodile farms, with the highest quality standards Constant drive to improve with environmental and animal welfare experts ■ ■ ■ Quality standards and pursuit of the finest materials. Longstanding, trusted partnerships with a select number of suppliers Deliberate optimisation of materials, moving toward zero unrecycled waste: Cut of hides, choice of materials Reuse of leather losses (petit h, in-house training, charity...) ■ ■ 100% of leather goods articles made in France Analyst Day - 8 December 2021 / 48#49Certification of the sectors and materials Internal and external audits consolidated across all sectors Certifications by independent third parties: ■ ■ Member of the ICFA (International Crocodilian Farmers' Association) since 2016 ■ 2024 Target: 100% of certified leather and textile sectors Certification process launched in 2019 for farms that are ICFA founder members Member of the Leather Working Group (LWG) since February 2020 and member of the LWG Animal Welfare Group since October 2020 Ostrich channel - SAOBC (South African Ostrich Business Chamber): launch of site certifications in 2020 and target to certify the entire channel by 2022 2024 target to have 100% of our leather channels certified - Analyst Day 8 December 2021 / 49#50Creating beauty from beauty, a sustainable approach • Constructions to the highest standards: ■ Real estate CSR standard ■ Construction to E4C2 standards, with Louviers the first energy-plus leather goods workshop in 2022 Locations sought in urban areas with public transport • Decarbonation and energy improvement with a multi-year plan on the oldest sites and two initial projects launched in Pierre-Bénite and Aix-Les-Bains Investments in energy optimization and water treatment Analyst Day - 8 December 2021 / 50#51Repairability driving durability "A luxury product is one that can be repaired", Robert Dumas Reparability central to our design and manufacturing techniques • 88 craftspeople dedicated to repairs: 54 in France 34 internationally 88 craftspeople dedicated to repairs by the en of 2020, of which 34 artisans overseas Analyst Day - 8 December 2021 / 51#52A singular and plural creation QT HERMES PARIS Analyst Day#531 0 F Prolific creation constantly reinvented Hermès leather goods articles, with their style and quality, are designed to last, be passed down and repaired • The result of an alchemy between an essential style, excellence of materials and unrivalled expertise • A constant dialogue between design and manufacturing Every season, a balance between new launches and long-established models Success with younger generations, particularly thanks to new launches ● Analyst Day - 8 December 2021 / 53#54petit h: a workshop where materials, artists and artisans combine in a thousand and one different ways 63 Lameles de GUIR ZIP 20 m Analyst Day - 8 December 2021 / 54#55Hermès horizons: bespoke and exploration of new territories Analyst Day - 8 December 2021 / 55#56PINELT Hermès saddlery, serving its primary customer • Saddles combining expertise, athleticism and technicality at the highest levels • Increased internal development (Louviers), in addition to 24 Faubourg Saddle experts as close as possible to their customers, horse and rider • A family of partner riders who showcase our saddles in top-level sport: ■ ■ Two Olympic medal winners in Tokyo: Jessica von Bredow-Werndl (gold in team and individual dressage) and Jérôme Guéry (bronze in show jumping) Steve Guerdat, gold medallist at the London Games and three-time winner of the Show Jumping World Cup Analyst Day - 8 December 2021 / 56#57POD 7 An artisanal, responsible and sustainable business model Olivier Fournier, Executive Vice-President Corporate Development and Social Affairs HERMES PARIS Analyst Day#58Summary 1. The quality at the heart of Hermès craftsmanship model 2. Hermès women and men at the heart of the house's project 3. An artisanal production model respectful of the planet 4. Maintaining a sustainable model through strong vertical integration and local anchoring HERMES PARIS Analyst Day#59The quality at the heart of Hermès craftsmanship model HERMES PARIS Analyst Day#602021: une odyssée Uniqueness and performance of the craftsmanship model • Values of the artisanal model, inspired by the craftsman: Responsibility Authenticity Acting with urgency while taking the time to do things well Ⓡ Ⓡ I Creativity and innovation at the core of the craftsmanship model: Unique, handmaid and functional objects Quality, durable and repairable objects Objects that inspire desire beyond trends and circumstances Strong, agile and resilient craftmanship model: Freedom of creation Mastery and transmission of excellent know-how Freedom of purchase Balance of the exclusive distribution network Creative heritage Materials heritage Savoir-faire, heritage Retail heritage In 2021, the theme of the Odyssée has inspired the designers and artistic directors of the house Analyst Day - 8 December 2021 / 60#61EXECUTIVE COMMITTEE Shares key challenges with Sustainable Development Committee SUSTAINABLE DEVELOPMENT COMMITTEE Validates the strategy Conducts CSR governance Oversees CSR activities CSR governance GROUP SUSTAINABLE DEVELOPMENT DEPARTMENT Proposes and implements the CSR strategy Oversees the approach taken by all operating departments and subsidiaries Monitors accomplishments Coordinates the operation of various committees Assists local committees and manages cross-functional projects LOCAL SUSTAINABLE DEVELOPMENT COMMITTEES Initiate and track actions launched, and share them during regional meetings I Î GROUP OPERATIONS COMMITTEE Analyses and validates projects' technical and functional aspects SUPERVISORY BOARD 10% of the variable compensation of the Executive Chairmen is conditioned on a CSR criterion Assesses the level of achievement of the CSR criterion attached to the compensation of the Executive Chairmen Monitors non-financial performance indicators Is informed of exposure to CSR risk Analyst Day 8 December 2021 / 61 -#62Hermès women and men at the heart of the house's project HERMES PARIS Analyst Day#63The unique transmission of know-how, at the heart of excellence and quality • Strong agility and adaptation ● ● ● ● Preserve, transmit and enrich six generations of exceptional know-how The mastery and transmission of know-how: ■ École Hermès des Savoir-Faire: accredited by the French Education Department and will award a State-approved diploma in leatherworking expertise ■ 6,300 artisans, with 90% in France 107 in-house trainers (production, France) Accompanying the development of employees throughout their career, supporting the excellence and efficiency of their know-how and preserving their employability: All the métiers have their own school, training employees "Mosaïque": induction programme for all new employees "IFH" programme, dedicated to members of the Management Committees of the sites or subsidiaries Analyst Day - 8 December 2021 / 63#64Hermès women and men at the heart of the sustainability model. • More than 17,000 employees at the end of June 2021, acceleration in recruitment: ● ■ ● ■ Continuous improvement culture with training structured around four areas: culture of the house, management, expertise and personal development ■ • Employee share ownership plans, free share plans: ■ ■ The workforce doubled in the last 10 years Maintaining jobs and salaries worldwide during the sanitary crisis with no recourse to any government subsidies ■ 72% of employees completed at least one training session in 2020 c. 400,000 training hours in 2020 ■ Rankings: At the end of 2020, employee share ownership represented 1.09% of the capital Plans implemented in 2007, 2010, 2012, 2016 and 2019 Humpact Emploi France Outstanding Employment Award, 2021 Epoka-Harris Interactive Top Employer Award, 2021 8,366 2010 2011 9 years average employee length of service 2012 75% of employees have completed a wellbeing survey since 2018 2013 - 2014 2015 2016 2017 2018 16,600 2019 2020 Growth in the workforce from 2010 to 2020 Analyst Day 8 December 2021 / 64#65Les Artisans Rêve Professional equality, diversity and inclusion at the core • Commitment to workplace gender equality between women and men: Gender pay index: 92/100 in 2020 69% women on the Operations Committee 60% female managers in the group ● ● ■ Introduction of training on diversity and inclusion at group level: "Alterego" training programme on inclusion Unconscious bias training ■ Rankings: ■ ■ Hermès ranked 1st of the Financial Times Top 100 Diversity Leaders in 2021 Hermès 1st in the Capital ranking of France's 500 top employers in 2021 Objective of inclusion of people with disabilities: 92/100 gender pay in 2020 1st index of the Financial Times Top 100 Diversity Leaders 5.7% of employees with disabilities at the end of 2020 (France) Second Group Disability Agreement signed with all trade union coordinators in 2020 (first in 2017) Omega chart signed in March 2021 for the rehabilitation of injured French veterans Analyst Day - 8 December 2021 / 65#66An artisanal production model respectful of the planet HERMES PARIS Analyst Day#67WAY HERMÈS PARIS l'Odyssée du Faubourg Addressing climate change, with a low-emission artisanal production model • One of the lowest greenhouse gas emitters amongst France's CAC 40 companies: >100% Artisanal model, 80% French production - In 2020, group strategy validated with ambitious targets: ● Reduce greenhouse gas emissions by 50% by 2030 (baseline: 2018, in absolute value for scopes 1 and 2, in relative value for scope 3) Offset more than 100% of its carbon emissions in scopes 1 and 2, with ecological and social projects Use 100% renewable energy in its own operations by 2025 ● Increased efforts on transparency in line with TCFD recommendations in 2020 • CPD 2021 climate change score : A- • Investor in Livelihoods Funds since 2012 134% of scopes 1&2 in 2020 Signature of the third Livelihoods Fund in June 2021 of group's activities carbon emissions are offset (scope 1&2) -50% of GHG emissions by 2030 Science based approach of targets: pending approval of the Science Based Target Initiative (SBTi) concerning the compatibility of the group's carbon reduction trajectory with the Paris agreements Analyst Day 8 December 2021 / 67 -#68ANN An artisanal production model that enables a rational use of energy resources • Reduction in energy consumption: I Programme to defossilise the industrial sites Proactive programme of energy audits followed by action plans Energy efficiency: rollout of LED lighting since 2013 80% of group stores in 2020 Target 100% by 2023 I I 23 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Evolution of the intensity of industrial energy consumption from 2010 to 2020 in MWh per millions of euros -41.5% decrease in industrial energy intensity in ten years Analyst Day 8 December 2021 / 68 -#69FONTAINE CO An artisanal production model that enables a rational use of water resources • Reduction of industrial water consumption: ■ ■ Mainly used in tanneries and textile units Target: reduce industrial water use intensity by 5% per year • Textile: innovative solutions to increase recycling of water from washing equipment and monitor the impact of the actions carried out • Leather: Water management tools implementation, early identification of leaks Investment in equipment enabling lower water consumption • CDP 2021 water score: A- 91 -25.3% decrease in industrial water intensity consumption in 10 years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Evolution of the intensity of industrial water consumption from 2010 to 2020 in m³ per millions of euros + Inclusion of Les Tanneries du Puy in 2016 Analyst Day - 8 December 2021 / 69#70Sustainability criteria as a pillar of the house's real estate projects ● Sustainable Real Estate Guidelines aim to improve environmental performance on 5 criteria: Carbon Footprint: improving the energy performance of our buildings and the carbon footprint from the design phase Biodiversity: preservation of existing vegetation, green roofs, water recovery Local Sourcing: in new store projects, sourcing millwork and lighting equipments from local suppliers Air quality: improving the air renewal by implementing air filtration and pollutants measuring systems in offices Environmental issues: green works charter applied in all industrial projects Analyst Day - 8 December 2021 / 70#71HERMES Constant improvement in the use of recyclable and sustainable packaging . ● • Circular economy: The orange box is FSC-certified, 100% recyclable, made of recycled French cardboard Upcycling of the orange box: esthetic and robust, an iconic object Working group created in 2020, to reduce the use of plastics: target to stop the use of single-use plastics in 2025 The Beauty "métier" created a sustainable packaging: Lipstick packaging is in aluminum and rechargeable The external box containing the orange box is made of recycled cardboard • Commitment to work with the main cotton suppliers to switch all cotton supplies to organic cotton or GOTS for packaging Analyst Day - 8 December 2021 / 71#722 69 Canl ANMA solled suchen, E RAM 7x4277707 Respect for nature and biodiversity, sources of inspiration and creativity ● Biodiversity commitments: ● I • Ongoing inventory of biodiversity impacts: Act4Nature: pledge in 2018, renewed in 2020 Livelihoods: 130,000 million trees planted in 2020, 1 million project beneficiaries Fashion Pact: member since 2019 Global Biodiversity Score method with the collaboration of CDC Biodiversity and the WWF 96% of activities covered by the GBS study in 2020 Biodiversity strategy formalised in 2018 in line with the Act4Nature pledge • Some initiatives at the métiers level: ■ ■ 96% of activities covered by the GBS study in 2020 Leather: in 2020, good practice guide for the development of future leather workshops Textile: Study on silk with the University of Cambridge Institute for Sustainability Leadership. Glass: filtrating gardens in Saint-Louis Analyst Day - 8 December 2021 / 72#73Animal welfare, a requirement within the supply chain • Commitment to fundamental scientific principles of animal welfare: Five Freedoms ● ● Animal Welfare Committee launched in 2019, co-led by an independent expert Hermès animal welfare policy in finalisation process following years of work in the field and in collaboration with specialist NGOs 96% of hides from food industry by-products ● A control mechanism tailored to each sector: internal or external supply chain audits • Contribute to improving standards: Support for the initiative led by the International Crocodilian Farmers Association (ICFA) Development and promotion of "SAOBC standard 1001 Ostrich Production - requirements" Analyst Day - 8 December 2021 / 73#74ܒ G The sustainability of the object in the service of circularity ● ● Exceptional objects designed to last: ■ Use of the finest quality materials Eco-design: reuse and circularity of materials and products Production line losses: lean planning petit h ● ● ● Upcycling Circularity Committee created in 2020 ● 39,000 upcycled products marketed in 2020 Extend the products' lifespan: Cleaning and repair service available to customers all around the world 33 expatriate leather artisans for repairs 123,000 repairs all around the world in 2020 Exceptional sales to the public, regular sales to the staff Products donated to various partner charities Management of unsold stock: Low volumes: economic model based on the freedom of purchase and integrated production chain Analyst Day - 8 December 2021 / 74#75Maintaining a sustainable model through strong vertical integration and local anchoring HERMES PARIS Analyst Day#76Territorial anchoring and contribution to the economic, social and environmental development of the territories • Historical, local anchoring in a logic of respect for regional expertise: Production sites organised in centers of expertise Opening of new sites, contributing to the revitalisation of the regions 51 production sites in France, including 19 leather workshops in 2020, 13 production sites outside France in 6 countries I • Territorial responsibility: Development of production capacities contributing to job creation €20 million and €7 million donation to the AP-HP in 2020 and 2021 Responsible tax policy: group consolidated tax rate of 31% in 2020 Support of the European Chair in sustainable development and Climate Transition at Sciences Po Paris 33 33 45 80% of production sites are in France 31% group consolidated income tax rate in 2020 46 53 54 50 49 47 L 55 64 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ☐Nb production sites outside France ☐Nb production sites in France Analyst Day - 8 December 2021 / 76#77Strong vertical integration and local, sustainable sourcing ● Strong vertical integration: • Longstanding supplier relationships: Based on the mastery and excellence of savoir-faire Agility in a context of a health crisis Sustainable development I RWS Wool Twenty years average relationship (top fifty direct suppliers) Support for suppliers during the pandemic • Certification of activities: Animal sector 2024 group target to have 100% certified textile and leather supply channels, particularly: RDS Down feather LWG Leather ICFA Precious leather GOTS Coton Plant sector Master of Linen • Contribution to the development of the best standards in the sectors • Sector briefs for raw materials purchases published in 2021 for suppliers > 60% of products manufactured in our internal and exclusive workshops FSC Wood 56% of purchases made in France (Top 50 direct suppliers) PEFC Wood Mineral sector RJC Gold, silver, gems Chain of Custody Analyst Day - 8 December 2021 / 77#78(O Luc Quality and sustainability by supporting all our suppliers • Risks mapped at group level in 2020 The top fifty suppliers are all audited at least once in the following areas: environment, health and safety, human rights and fundamental freedoms, business continuity, finance, confidentiality, business ethics and anti-corruption. ● • Risk management and prevention involves: Training for buyers Concrete commitments from suppliers: 85% of direct procurement suppliers formally committed to social, environmental and ethical policies (handbook 1 & 2) 92% purchasing categories where risks were mapped in 2020 85% of direct suppliers are committed to ESG policies Analyst Day - 8 December 2021 / 78#79ESG rankings reflecting our sustainable strategy "Try harder approach", continuous improvement 2021 Rankings: MSCI: A Sustainalytics: #2nd best company in the clothing sector (72/100) Vigeo-Eiris: ● ● "Advanced" category Inclusion in the CAC 40 ESG index in September 2021 CDP: Climate change: A-, Water: A- Analyst Day 8 December 2021 / 79 -#802021 2022 FONDATION D'ENTREPRISE HERMÈS FONDATIONDENTREPRISEHERMES.ORG N AR NOS GESTES NOUS CREENT ET NOUS REVELENT APPRENDRE DU VIVANT Dossier de presse Programme de sensibilisation à la biodiversité pour le public scolaire 92 aina szyäl ACADEMIE DE BESANCON COMINGNONS DEVOR MANUTERRA Fondation d'entreprise Hermès « Our gestures define us and show who we are >> • Created in 2008 by Pierre-Alexis Dumas, presided by Olivier Fournier since 2016 and directed by Laurent Pejoux since 2021 • The Fondation d'entreprise Hermès is currently in its third mandate ● 40 million euros for the period 2018-2023 ● Four main pillars structure its action: Transmit, create, protect and encourage Carried out through several dedicated programmes • Two iconic projects: Manufacto Manuterra ■ 900 projects supported since its creation 40 million euros budget for the foundation in 2018-2023 Analyst Day - 8 December 2021 / 80#81F Thank you HD P