#1HERMES PARIS 2023 First Half Results 28 July 2023#2A RESPONSIBLE CRAFTSMANSHIP BUSINESS MODEL CREATIVITY AND L SAVOIR-FAIRE Creativity of the 16 métiers around the theme of the year, Astonishment Promotion and exploration of savoir-faire QUALITY AND DURABILITY Responsible sourcing More than 80 exceptional raw materials D 164 417 HERMES FOXANEX EXCEDE JOB CREATION AND RESPONSABILITY Workforce 2x in 10 years 62% in France Value-sharing INTEC INTEGRATION AND EXCLUSIVITY Local anchoring 3 leather goods workshops openings in 3 French regions Exclusive distribution network 2 store openings 5 expansions/renovations 2023 Half Year Results | 2#3Highlights#4A BOLD CREATION Enrichment of the leather goods collection with the models In-The-Loop, Maximors, Birkin Picnic and Hacados Successful women's and men's Ready-to-Wear collections • Presentation of new Chaîne d'ancre jewels • Launch of the Un Jardin à Cythère new perfume Presentation of the Home universe collections during the Milan Design Week • New chronograph version of the Hermès H08 watch ● ● 2023 Half Year Results | 4#5THE DEVELOPMENT OF PRODUCTION CAPACITIES ● Three leather goods workshops openings: > Louviers (Eure) La Sormonne (Ardennes) > Saint-Junien (Haute-Vienne) > Four leather goods workshops projects ongoing: Riom (Puy-de-Dôme), scheduled in 2024 L'Isle-d'Espagnac (Charente), scheduled in 2025 > Loupes (Gironde), scheduled in 2026 > Charleville-Mézières (Ardennes), scheduled in 2027 > Strengthening of capacity investments and vertical integration 2023 Half Year Results | 5#6AF |||||| HERMES CA H AN INTEGRATED, OMNICHANNEL AND EXCLUSIVE DISTRIBUTION NETWORK (1/2) • Investments continuing in the multilocal distribution network Opening of new stores: > Naples, fifth store in Florida (United States) > Aspen (United States) ● Expansion and renovation of stores: > Hamburg (Germany) Nanjing and Beijing Peninsula (China) Abu Dhabi (United Arab Emirates) > > 2023 Half Year Results | 6#7BOUCLES D'OREILLES CHAPEAUX HERMÈS IN THE MAKING À LILLE Aant des artisans at di modale d'entreprise durable et responsable d'esà ruraTechnologies ille, du au 15 juillet 2023, Islabledhibidas ACI HERMES FANS CHAUSSURES FERME Rocais a capovatione HERMES CEINTURES HERMES MAKING THE BRACELETS LÈVRES ONDO THILLY ET AUTRES PEILTS FORMATS SOTE FEMININE Pa AN INTEGRATED, OMNICHANNEL AND EXCLUSIVE DISTRIBUTION NETWORK (2/2) Strong momentum of e-commerce sales worldwide Opening of the new digital platform in Brazil Traffic increase and entry point to the Hermès universe for new clients, complementary to the stores • New omnichannel services and a wider range of products available ● 2023 Half Year Results | 7#8BB Al A SINGULAR COMMUNICATION ● Revealing Hermès in an authentic and unconventional manner Saut Hermès at the Grand Palais éphémère in Paris › HermèsFit in Singapore On the Wings of Hermès in Taipei Le Kiosque du Monde d'Hermès notably in Barcelona, Austin and Strasbourg > Hermès in the Making in Lille > > Rediscovering the 16 métiers of the house > Silk event, Kite Festival in Dubai, Buenos Aires and Busan Men universe in Tokyo and women universe in Shanghai > petit h in Osaka Home universe, Hermès Parade in Seoul > Jewellery event, Chaîne d'ancre at the Faubourg store in Paris > > 2023 Half Year Results | 8#9Responsible and sustainable development#10ARTISANAL AND RESPONSIBLE BUSINESS MODEL PEC PEOPLE, AT THE HEART OF OUR VALUES Acceleration of job creation Maintain the rate of employees with disabilities in France > 6% HERMES 890 CLIMATE STRATEGY Reduction of emissions between 2018 and 2030 (validated by SBTi): - 50.4% in absolute value scopes 1&2 - 58.1% in intensity scope 3 100% renewable energy by 2030 FLOC LOCAL ANCHORING Sustainable real estate standards: 2 new E4C2-certified leather goods workshops 54 production sites in France RESPONSIBLE SECTORS Renewal of the Jewellery and Watches certification (RJC COP) 100% of suppliers aligned with the CSR brief by 2024 2023 Half Year Results | 10#11HERMÈS SOCIALLY RESPONSIBLE ● Dynamic job creation At the end of June 2023, the group employed 20,607 people, including 12,875 in France, with an acceleration in job creation > >900 recruitments in the first semester, of which >500 in France > Value-sharing A 6th free share plan for all employees announced in June Training > École Hermès des savoir-faire: extension to the Guyenne site > Launch of a certified training course on the profession of cutter Commitment for diversity and inclusion > Direct employment rate of people with disabilities: 6.85% 2023 Half Year Results | 11#12ALL IMPLEMENTATON OF THE CLIMATE STRATEGY ● ● Sustainable real estate standards: > Standards for high environmental and social performance real estate > Louviers & la Sormonne: France's first E4C2-certified industrial buildings Protection of biodiversity: Measuring our impact on biodiversity throughout the value chain Process SBTN (Science Based Targets for Nature) launched with scientific targets aligned with global limits for freshwater, land use, oceans and biodiversity > > Energy sobriety: > Control energy consumption: energy intensity divided by 2 in ten years > Exceeded target of -10% energy consumption for industrial sites and -11% for stores and tertiary sites > 100% renewable electricity in France 2023 Half Year Results | 12#13Activity HUNTSMARAKS#14ACTIVITY . Revenue in the first half of 2023 reached €6.7 billion (+25% at constant rates and +22% at current rates) All the regions posted strong growth of 20% or above and all the business lines confirmed their solid momentum Sales increased considerably both in the group's stores (+25%) and in wholesale activities (+26%) Sales in the second quarter reached €3.3 billion (+28% at constant rates and +22% at current rates), with an exceptional performance in Asia which benefitted from a favourable comparison basis 2023 Half Year Results | 14#15Revenue by geographical area#16REVENUE BY GEOGRAPHICAL AREA in €m France Europe (excl. France) EUROPE Japan Asia-Pacific (excl. Japan) ASIA Americas Other TOTAL June 2023 593 836 1,428 636 3,297 3,932 1,185 151 6,698 Change at constant rates 24% 22% 22% 26% 28% 27% 20% 42% 25% 2023 Half Year Results | 16#17REVENUE BY GEOGRAPHICAL AREA 2023/2022 Other France 2%/2% 9%/9% O Americas 18% / 18% Asia-Pacific (excl. Japan) 49 % / 49 % Europe (excl. France) 12% / 12% Japan 10%/10% 2023 Half Year Results | 17#18Revenue by sector#19OMA S 9 10 9 E 1 REVENUE BY SECTOR in €m Leather Goods and Saddlery Ready-to-wear and accessories Silk and textiles Other Hermès sectors Perfume and Beauty Watches Other products TOTAL June 2023 2,780 1,922 444 836 249 317 150 6,698 Change at constant rates 21% 35% 22% 32% 10% 24% 4% 25% 2023 Half Year Results | 19#20REVENUE BY SECTOR 2023/2022 Perfume and Beauty 4 % / 4% Other Hermès sectors 13 % / 12 % Silk and Textiles 7%/7% Ready-to-wear and Accessories 28 % / 26% Watches Other Products 5%/5% 2% / 3% Leather Goods and Saddlery 41% / 43 % 2023 Half Year Results | 20#21Results#22Income 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 2023 revenue 6,698 (1,863) 4,834 72.2% (259) (3.9)% (1,226) (18.3) % (403) (6.0)% 2,947 44.0% 2,947 44.0% +28% % 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 42.1% 2023 Half Year Results | 23#24HALF YEAR RECURRING OPERATING PROFITABILITY EVOLUTION in % of revenue 32.6 32.5 11 2014 *Avant IFRS16 2015 33.9 2016 ★ 34.3 * 2017 34.9 2018 34.8 2019 21.5 2020 40.7 2021 42.1 2022 44.0 2023 2023 Half Year Results | 24#25UN JARDIN A CYTHERE HERMES PARIS 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 2023 revenue 44.0% 2,947 75 (831) 27.5% 43 (8) % 2,226 +36% 33.2% % June 2022 revenue 2,304 42.1% (35) (647) 28.5% 25 (6) 1,641 30.0% 2023 Half Year Results | 25#26HALF YEAR NET PROFITABILITY EVOLUTION in % of revenue 21.6 2014 21.0 2015 22.3 2016 22.3 2017 24.8 2018 23.0 2019 13.5 2020 27.7 2021 30.0 2022 33.2 2023 2023 Half Year Results | 26#27HALF YEAR REVENUE AND NET INCOME EVOLUTION in €m 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Sales CAGR over 10 years +14.3% Net income CAGR over 10 years +19.3% 1,767 382 2013 1,907 412 2014 2,299 482 2015 2,440 545 2016 2,713 605 2017 2,853 -Revenue 706 2018 3,284 754 2019 -Net income 2,488 335 2020 4,235 1,174 2021 5,475 1,641 2022 6,698 2,226 2023 3,000 2,500 2,000 1,500 1,000 500 in €m 2023 Half Year Results | 27#28Investments and cash flow#29OPERATING INVESTMENTS Production and divisions €81 million Total €249 million Real estate and group projects €79 million Stores and distribution €89 million 2023 Half Year Results | 29#30RDA RESTATED 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 2023 June 2022 2,615 (509) 2,106 (249) (137) 1,720 (92) (1,384) (138) 106 9,848 9,742 2,001 (261) 1,740 (190) (128) 1,421 (10) (850) (115) 169 615 7,685 7,070 2023 Half Year Results | 30#31Simplified balance sheet#32SIMPLIFIED BALANCE SHEET in €bn 18.3 Non-current assets 5.7 Inventories 2.1 Other current assets 1.1 Cash 9.3 Assets 17.5 5.6 1.8 0.8 9.2 30/06/2023 31/12/2022 Liabilities 18.3 13.2 2.0 3.0 17.5 12.5 Shareholders equity 2.0 Non-current liabilities 3.0 Current liabilities 30/06/2023 31/12/2022 2023 Half Year Results | 32#33Outlook#34OUTLOOK The group continues the year 2023 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients • 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 2023 Half Year Results | 34#352023: ORANGE, THE COLOUR OF ASTONISHMENT Acceleration of job creation • Continued investments in production capacities and vertical integration Store openings and expansions, notably: > Los Angeles Topanga and Chicago (United States) Chengdu and Beijing SKP (Mainland China) Bordeaux (France) and Vienna (Austria) ● > > • Launch of the 5th chapter of Hermès Beauty around the eyes in September • Continuation of programmes backed by the Fondation d'entreprise Hermès: Manufacto and Manuterra to be rolled out in other academies and other countries 2023 Half Year Results | 35#36Questions and answers V#37VERO HERMES HERMES PARIS