Hermès International Société

Ladies and gentlemen, welcome to the Hermès 2024 full year results presentation. I'm now going to give the floor to Mr. Axel Dumas, Executive Chairman of Hermès International, and Eric Duhalguet, Executive VP Finance. Over to you.

Good morning, everybody. Thank you for joining us for the publication of the 2024 annual results. We are delighted to welcome you once again to our Sèvres store. I'm happy to present to you the results of the group in a more unpredictable economic and geopolitical context. The results of this year show the strength of the AMAS model as well as the agility and the commitment of its teams that I warmly thank. This model is based on a vertical integration with a strong local presence. It testifies to the strong desirability of our creations in all the , all the divisions supported by artistic directors, a very demanding quality, preservation, and transmission of our know-how. Longstanding and new customers were present everywhere in the world. In 2024, the house stayed its course, maintaining its equilibria. attached more than ever to the respect of its values. We pursued strategic investments in our production capacity to secure our supply chain and prepare the future, as well as in our network everywhere in the world to accompany the dynamism of the sale in the long term of the house. In all, over three years, Hermès strengthened its operational investments by 2.5 billion, of which more than 60% in France. We continue to strengthen our teams. The House went beyond the threshold of 25,000 people at the end of December, of which 62% are in France. Faithful to its responsible employer commitment and the will to share the fruit of its growth with those who contribute every day to it, Hermès will be distributing at the beginning of the year a bonus of €4,500 to all its employees worldwide in 2024. 2024 is also the victory of our partner horse riders in Versailles at the heart of summer. So much emotion with five Olympic medals for the Hermès saddle. That has now come to the salient. Carried forward by the theme of 2024, the Faubourg spirit, the creative teams of the 16 divisions headed by Pierre-Alexis Dumas gave free rein to their inventiveness. Let's give you a few examples. In the leather collections, alongside the iconic models, new models such as the Haut-Acohois, Ancel, or Arsene met with great success. To be noted also the creation of Hermes Horizons dedicated to the making of bespoke objects. The collection of women and men's ready-to-wear received a beautiful welcome all over the world. And the successful launch of the new feminine fragrance Berenia created by Christine Nagel. The eighth collection of haute bijouterie called the Forme de la Couleur imagined by Pierre Hardy was revealed end of June in Paris and presented in Beijing and in Taipei. It met with great success. Great success also for the home division with the Milan Fair as well as the dinner set. And let us emphasize the launch of the Apple Watch 10th series. We thus celebrated 10 years of our beautiful adventure with Apple and success of Technocraft. In order to strengthen our vertical integration, we pursue investments in our production capacity. In 2024, we inaugurated our 23rd leather workshop in Riom in the Puy-de-Dôme in the former tobacco manufacturing factory. In 2025, we'll be inaugurating a new leather workshop in Lille-des-Pagnac in Charente and work is being pursued in two other sites, Loupe in Gironde and Charleville-Mézières in the Ardennes which will open 2026 and 2027. The capacity-rated investments continue in all other divisions with namely projects in Normandy for perfume and beauty and Limoges for tableware. Hermès also pursued its invests in logistics centers, the digital and information systems to accompany the development of the group. Finally, securing supplies is something that we continue with historical and long-standing partners of Hermès. Hermès thus continues to strengthen and expand these sectors of excellence in all the divisions founded on long-term relations. Let us now come to the exclusive retail network, integrated network. True to our desire for balance of geographical areas and multi-local approach, we've extended our network to have our collections come close to local customers. New addresses have been inaugurated in the U.S. in Princeton in New Jersey or Asia with the opening of Wuxi in China and two openings in Tokyo in Japan. Amongst the extensions and renovations of stores, I would like to mention Lille and Nantes in France, Atlanta in the USA, Oregon, Shenyang, Shenzhen in Beijing, SKP in China. The creation of Hermès expresses itself also through its 17th division of Hermès, that of communication. In the second half of 2024, we've continued to talk about the universe of Hermès in an offbeat and joyful manner for the public, mystery at the grooms that took place first in Shanghai with the event Hermès and the Making in Mexico, Seoul and Zurich, where nearly 60,000 visitors had an exchange with artisans and craftsmen ten divisions and discovered how objects are made. And finally, Petitage went to Hong Kong and New York to reveal his joyful, unexpected and unique creations with the approach of reuse of materials that are asleep.

Now let's talk about our commitment to sustainable development. First of all, in keeping with our social model, we paid out 350 million euros in 2024. That includes the exceptional bonus and incentives and profit sharing in France. Hermès continued to reinforce inclusivity and diversity programs. We now have 48% of women in the top 100 of our highest executive positions. To guarantee an inclusive work environment, Hermès recruits and retains people with disability, a total of 7.12% in France. We continue to roll out our environmental strategy. Our decarbonisation plan was deployed to all the divisions and led to a 64% reduction in Scope 1 and Scope 2 emissions compared to 2018. and a 50% drop in intensity for scope-free over the same period of time. Nature is a source of exceptional material and lies at the heart of our model. We continue with our science-based targets for nature initiative to set scientific objectives to preserve biodiversity. We remain committed to supporting our local footprint by drawing on local know-how and local employment, especially in France. We sped up job creation in 2024. with the recruitment of 2,300 new people, 1,300 in France. And in other words, that is 7,000 new jobs across three years, which I'm particularly proud of. To keep up with the growth of our business and to train employees to master our know-how, we continue to roll out our in-house training programs through the Ecole des Savoir-Faire Hermès and its professional training programs across 10 regions. We have also made progress in the non-financial area. For example, the AA rating by MSCI, our presence on the A list of CDP, which puts us among the best environmentally performing companies around the world. The the Grand Prize Emploi France for the first time that we've received from the Impact Rating Agency and the Grand Prize for Employer for People with Disability. And then the Transparency Award which rewards our financial information in the regulation, regulated information. Now, for our activity in 2024, our performance was solid. Our revenue in 2024 reached 15.2 billion euros, up 15% at constant exchange rate and up 13% at current exchange rates. For Q4, the revenue stands at 4 billion euros, up 18% at constant and current exchange rates, with good performance in America and robust growth in the other regions.