#1لركي HERMES PARIS 2022 Full Year Results 17 February 2023 wa زرن#2A RESPONSIBLE CRAFTSMANSHIP BUSINESS MODEL INTEGRATION AND EXCLUSIVITY Strong vertical integration 55% of objects made in in-house and exclusive workshops Local anchoring 78% of objects produced in France Exclusive distribution 300 stores in 45 countries QUALITY AND DURABILITY Repairs in workshops 202,000 Craftspeople > 6,000 over 19,700 employees CREATIVITY AND SAVOIR-FAIRE Abundant creativity A unique style > 50,000 references Unique know-how Creation of an apprentice training centre (CFA) 30 Best Craftspeople in France 7 Living Heritage Companies JOB CREATION AND RESPONSIBILITY Job creation Workforce 2x in 10 years / 63% in France Regional regeneration 52 production sites in France Value-sharing Exceptional bonus of €4,000 12,000 shareholder employees Certifications Objective of certification of all sectors by 2024 Hermès 2022 Full Year Results | 2#3Highlights " D HERMES SELLIER D#4ABUNDANT CREATIVITY AND UNIQUE KNOW-HOW • Enrichment of the leather goods collection with the suitcase R.M.S, the models Kelly en désordre, Haut à Courroies rock and Getta Successful women's and men's Ready-to-Wear collections The Arceau, Le temps voyageur watch won two awards at the Grand Prix d'Horlogerie de Genève Launch of the 4th chapter of Beauty, Hermès Plein Air • New high-end jewellery collection, Les jeux de l'ombre • Successful launch of the H24 perfume Hermès 2022 Full Year Results 4.#5INTEGRATION : DEVELOPMENT OF PRODUCTION CAPACITIES Five new leather goods workshops will reinforce our nine regional centres of expertise: > Louviers (Eure) and la Sormonne (Ardennes) in 2023 > > Riom (Puy-de-Dôme), scheduled in 2024 L'Isle-d'Espagnac (Charente), scheduled in 2025 > Loupes (Gironde), scheduled in 2026 Strengthening of capacity investments in all métiers, notably: > Finalisation of building work in the Lyon Textile division of the Pierre-Bénite site > Development of J3L company, specialised in metal pieces > Extension of the perfume site of Le Vaudreuil Hermès 2022 Full Year Results | 5#6EXCLUSIVITY: AN INTEGRATED ANDOMNICHANNEL DISTRIBUTION NETWORK (1/2) Opening of new stores: > Madison 706 flagship in New York and Austin (United States) > Zhengzhou and Shanghai Qiantan (Mainland China) HERMES > Pangyo (Korea) Expansion and renovation of stores, notably: > > Strasbourg (France) and Barcelona (Spain) South Coast Plaza (United States) and Guadalajara (Mexico) > Doha Vendôme (Qatar) and Dubai (United Arab Emirates) > Hong Kong Pacific Place et Wuhan (Greater China) Hermès 2022 Full Year Results | 6#7EXCLUSIVITY: AN INTEGRATED ANDOMNICHANNEL DISTRIBUTION NETWORK (2/2) • Strong increase of travel retail and reopening in November of the Hong Kong International Airport store A sustained performance of the digital platform worldwide: > Extension to new customers (70%) > New omnichannel services • Strengthening of supply chain in all geographical areas Hermès 2022 Full Year Results | 7#8A SINGULAR COMMUNICATION Promoting creativity, know-how and the Hermès universe: ▪ La Fabrique de la légèreté in Tokyo and Paris La Villette ☐ ■ Hermès in the Making in Singapore, Austin and Kyoto HermèsFit in Los Angeles, Hong Kong and Sydney ■ Le Kiosque du Monde d'Hermès in London, Dubai and Toronto Rediscovering our 16 métiers: ■ Jewellery: Les jeux de l'ombre in Paris and New York ■ Silk: Kite Festival in Jakarta Beauty: Plein Air ☐ petit h stopovers in Dubai and Bangkok Hermès 2022 Full Year Results | 8#9M D Responsible and Sustainable Development#10JOB CREATION AND SHARING OF THE VALUE Workforce: 2x in 10 years +2,100 of which +1,400 17,600 in France 19,700 France 11,000 France 12,400 2021 2022 • Responsible employer: > > 19,700 employees (+2,100 people, of which +1,400 in France. in a logic of regional centres of expertise) Payment of an exceptional bonus of €4,000 to all employees • Transmission of know-how and training: > Further development of the École Hermès des savoir-faire: Charleville-Mézières (Ardennes) > Launch of the École des artisans de la vente • Promotion and inclusion of diversity: > #1 "Diversity Leaders" 2022 of the Financial Times Network of Diversity & Inclusion referents covering 100% of employees Hermès 2022 Full Year Results | 10#11COMMITTED FOR THE ENVIRONMENT • . . Deployment of the decarbonation plan on scopes 1, 2 and 3: > In line with the climate commitments for a trajectory below 1.5°C validated by the Science Based Target initiative (SBTi) Responsible management of the real estate portofolio: > > Creation and certification of a demanding responsible construction reference system by an independent third party Louviers, designed as the 1st positive energy leather goods workshop Protection of biodiversity: > 75% of leather goods workshops evaluated in 2022 according to the five factors of the IPBES* * > A diagnosis of 100% of industrial sites will be carried out in 2023 Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services Hermès 2022 Full Year Results 11.#12RECOGNITION OF THE EXCELLENCE OF THE ARTISANAL MODEL GLOBAL EVALUATIONS MSCI THEMATIC EVALUATIONS AA ✓ CDP DRIVING SUSTAINABLE ECONOMIES "A List" Climate: A- Water: A Forest: A-, B Top 3 #1 Textiles SUSTAINALYTICS and Apparel #1 Luxury V.E PART OF Moody's ESG Solutions Advanced HUMPACT Score Emploi "Diversity Leaders FINANCIAL TIMES "/ #1 Hermès 2022 Full Year Results | 12.#138 12 7 Activity 65#14ACTIVITY 2022 revenue reached €11.6 billion, up 29% at current exchange rates and 23% at constant exchange rates Remarkable sales growth in all the geographical areas Strong increase of wholesale activity (+26% at constant exchange rates) driven by the recovery in travel retail Sales in the 4th quarter amounted to €3.0 billion (+26% at current exchange rates and +23% at constant exchange rates) Change at constant rates Sales growth Q1 +27% Q2 +20% Q3 +24% Q4 +23% 2022 +23% Hermès 2022 Full Year Results | 14.#15SOLIDITY AND REGULARITY OF SALES In €bn 2.8 2.7 1.6 1.5 3.1 3.0 Group total 1.8 1.7 Other métiers 1.3 1.3 1.2 1.2 Leather Goods métier T1 12 T2 T3 T4 Hermès Résultats Annuels 2022 | 15#1612 659 Revenue by Geographical Area#17REVENUE BY GEOGRAPHICAL AREA Change at in ЄM 2022 constant rates France 1,064 27% Europe (excl. France) 1,536 18% EUROPE 2,600 22% Japan 1,101 20% Asia-Pacific (excl. Japan) 5,556 22% ASIA 6,657 22% Americas 2,138 32% Others 207 32% TOTAL 11,602 23% Hermès 2022 Full Year Results 17#18REVENUE BY GEOGRAPHICAL AREA Japan 10% 11% Asia-Pacific (excl. Japan) 48% / 47% Other France 2%/2% 9%/9% 2022 / 2021 Europe (excl. France) 13% / 15% Americas 18% / 16% Hermès 2022 Full Year Results 18#19Revenue by Sector#20H REVENUE BY SECTOR Change at in ЄM 2022 constant rates Leather Goods and Saddlery 4,963 16% Ready-to-wear and accessories 3,152 36% Silk and textiles 842 20% Other Hermès sectors 1,371 30% Perfume and Beauty 448 15% Watches 519 46% Other products 306 8% TOTAL 11,602 23% Hermès 2022 Full Year Results | 20#21REVENUE BY SECTOR Watches Other Products 4% 4% 3%/3% Perfume and Beauty 4% 4% Other Hermès sectors 12% / 11% Leather Goods and Saddlery 43% / 46% 2022 2021 Silk and Textiles 7% 7% Ready-to-wear and Accessories 27% / 25% Hermès 2022 Full Year Results | 21.#22Results#23ROBUST SALES AND RESULTS IN 2022 12,000 In €m 11,000 Sales CAGR over 10 years +12.8% 10,000 9,000 8,000 Net income CAGR over 10 years +16.4% 6,883 7,000 5,966 6,000 5,549 5,202 4,841 5,000 4,119 3,755 4,000 3,484 3,000 2,000 1,000 In Єm 5,000 11,602 4,500 4,000 8,982 3,500 3,367 3,000 6,389 2,500 2,445 2,000 1,500 1,528 1,405 1,385 1,221 1,100 1,000 973 859 740 790 500 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue Net income Hermès Résultats Annuels 2022 | 23#24Income Statement#25CONSOLIDATED INCOME STATEMENT % % in €M Revenue Cost of sales Gross margin Communication 2022 2021 revenue revenue 11,602 8,982 (3,389) (2,580) Other sales and administrative expenses 8,213 70.8% (525) (2,155) (18.6)% 6,402 71.3% (4.5)% (422) (4.7)% (1,716) (19.1)% Other income and expenses (836) (7.2)% Recurring operating income 4,697 40.5% (734) (8.2)% 3,530 39.3% Other non-recurring income and expenses Operating Income 4,697 40.5% 3,530 39.3% Change y-o-y +33% Hermès 2022 Full Year Results | 25#26RECURRING OPERATING PROFITABILITY EVOLUTION in % of revenue * Before IFRS16 34.6* 34.8 34.0 32.4* 32.6* 31.5* 31.8* 31.0 39.3 40.5 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Hermès 2022 Full Year Results | 26#27CONSOLIDATED INCOME STATEMENT % % TERRE D'HERMÈS EAU GIVREE in ЄM Operating income Net financial income Income tax Net income from associates 2022 2021 revenue revenue 4,697 40.5% 3,530 39.3% (62) (1,305) (96) (1,015) In % of income before tax 28.2% 29.5% 50 34 Net income attributable to non-controlling interests (13) (8) Net income attributable to owners of the parent 3,367 29.0% 2,445 27.2% Change y-o-y +38% Hermès 2022 Full Year Results | 27#28NET PROFITABILITY EVOLUTION in % of revenue * 23.6 22.0 21.0 21.2 20.9 20.1 22.2 ** 21.7 27.2 29.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 * 22,7% after restatement from the capital gains from the sale of the Galleria store in Hong-Kong in 2018 ** * 20,3% after restatement from the non-recurring profit related to the deconsolidation of Shang Xia in 2020 Hermès 2022 Full Year Results | 28#29Investments and Cash Flow ::0#3020.40 wwwww OPERATING INVESTMENTS Production and divisions €192 million Total * €518 million * €568 million, restated of the application of the IFRIC decision relating to software in SaaS mode Real estate and group projects €113 million Stores and distribution €214 million Hermès 2022 Full Year Results | 30#31KX36 RESTATED CASH FLOW STATEMENT in ЄM 2022 2021 Operating cash flows 4,111 3,060 Change in working capital 73 346 Cash flows related to operating activities 4,185 3,405 Operating investments (518) (532) Repayment of lease liabilities (261) (212) Adjusted free cash flow 3,405 2,661 Financial investments (21) (13) Dividends paid (852) (490) Treasury share buybacks (excl. liquidity contract) (116) (162) Other changes 257 170 Change in net cash position 2,672 2,166 Closing restated net cash position 9,742 7,070 Opening restated net cash position 7,070 4,904 Hermès 2022 Full Year Results | 31.#32EVOLUTION OF THE DIVIDEND PER SHARE Exceptional dividend + 5.00 € + 5.00 € In € per share 13.00 € Ordinary dividend For the period In € per share 4.55 € 4.55 € 4.55 € 4.10 € 3.75 € 3.35 € 2.95 € 2.70 € 8.00 € 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 *Ordinary dividend proposed for shareholders' approval at the 20th April 2023 General Meeting, including €3.5 interim dividend paid on 22nd February 2023 Hermès 2022 Full Year Results | 32.#3311 ===== Simplified Balance Sheet#34SIMPLIFIED BALANCE SHEET in €bn 17.5 Assets 5.6 Non-current assets 13.8 Liabilities 17.5 5.0 1.8 12.5 Inventories Other current assets 0.8 1.4 0.7 13.8 9.4 Shareholders equity Cash 9.2 2.0 6.7 1.9 Non-current liabilities 3.0 2.6 Current liabilities 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Hermès 2022 Full Year Results | 34#35छ Outlook छ#36OUTLOOK • 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 The group has moved into 2023 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients • 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 Hermès 2022 Full Year Results | 36#372023: ORANGE, THE COLOUR OF ASTONISHMENT HERMES PARIS Acceleration of job creation in France and abroad Continued strategic investments in production capacities in all the métiers, and opening of the leather goods workshops of Louviers (Eure) and la Sormonne (Ardennes) Store openings and expansions, notably: Chengdu and Beijing Peninsula (Mainland China), Naples (United States), Bordeaux (France) 13th edition of the Saut Hermès at the Grand Palais Éphémère in Paris in March Launch of the 5th chapter of Hermès Beauty around the eyes in the Autumn Start of the 4th mandate of the Fondation d'Entreprise Hermès (2023-2027) Hermès 2022 Full Year Results | 37#38H Questions & Answers#39گا لركي - HERMÈS PARIS زرن