HERMÈS...Development of Shang Xia project, in preparation for Paris store opening 9 HERMÈS – 1 st half 2013 RESULTS Petit h space 10 HIGHLIGHTS COMMUNICATION •4thedition

HERMÈS 1st half 2013 RESULTS

Presentation as of 30th August 2013

HERMÈS – 1st half 2013 RESULTS

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HIGHLIGHTS

HIGHLIGHTS

ACTIVITY

• Sales are up 14% at constant rates, and 11% at current rates

• Operating result increases by 14%, to reach € 584M. Operating margin reaches 33.1% of sales, from 32.1% in the first half 2012

• Net result amounts to € 382M versus € 335M as at 30th June 2012,

i.e a 14% increase

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HIGHLIGHTS

ACTIVITY

• Activity was robust in the Group’s own stores (+15% at

constant rates)

• Wholesale sales (+11% at constant rates) maintained a

sustained growth

• Currency fluctuations produced a negative impact of

about € 50M in sales (3 points in growth) mainly due to

the weakening of the Yen

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HIGHLIGHTS

ACTIVITY

• A handsome growth in all sectors, with the exception of

watches which were affected by the general downturn in the

watch industry

• A well-balanced growth in all regions

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HIGHLIGHTS

TREASURY

• Operating cash flow reaches € 476M, up 21%

• Restated net cash position amounts to € 647M as at 30th

June 2013

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HIGHLIGHTS

INVESTMENTS

• Investments amount to € 75M, mainly related to :

A continued increase in production capacities and to secure supply sources

The completion of the construction « Cité des Métiers » in Pantin

Developing the distribution network with five branches being opened or renovated

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HIGHLIGHTS

DISTRIBUTION NETWORK

• 2 concessions being taken back (Singapore airport and

United States)

• 3 renovations with enlargements in Asia, of which the store in

the Beijing China World

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Beijing China World store

HIGHLIGHTS

DEVELOPMENTS

• Opening of a space dedicated to Petit h in the rue de Sèvres

store

• Development of Shang Xia project, in preparation for Paris

store opening

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Petit h space

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HIGHLIGHTS

COMMUNICATION

• 4th edition of the « Saut Hermès » at the Grand Palais in Paris

• Event around the men’s universe in Miami

• « Festival des Métiers » in London, Beijing,

Shenyang and Düsseldorf


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549 620 649

701 721 813

875

1 075

1 306

1 591

1 767

84 97 109 118 128

135 125

195

291

335

382

0

50

100

150

200

250

300

350

400

450

500

0

200

400

600

800

1000

1200

1400

1600

1800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Consolidated turnover Net result

TURNOVER (in M€)

NET RESULT (in M€)

Over 1 year Over 2 years +11.0% +35.4% +13.9% +31.2%

Turnover

Net result

HALF YEAR TURNOVER AND NET RESULT


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As a % of TURNOVER

HALF YEAR CURRENT OPERATING PROFIT


0%

5%

10%

15%

20%

25%

30%

35%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

23,9% 24,4%26,4% 26,4%

24,8% 25,1%22,8%

28,3%

32,0% 32,1%33,1%

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ACTIVITY BY GEOGRAPHICAL

ZONE


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ACTIVITY BY GEOGRAPHICAL ZONE


(in M€) June 2013

change at constant rates

France 289.2 13.0%Europe (excl. France) 346.9 14.3%

EUROPE 636.1 13.7%

Japon 221.4 8.0%Asia-Pacific (excl. Japan) 591.2 16.9%

ASIA 812.6 14.0%

Americas 286.1 16.5%Others 32.4 22.3%

TOTAL 1,767.2 14.4%

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ACTIVITY BY GEOGRAPHICAL ZONE

France16%

Europe (excl. France)

20%

Japan13%

Asia Pacific (excl. Japan)

33%

America16%

Other2%


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ACTIVITY BY

SECTOR


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ACTIVITY BY SECTOR


(in M€) June 2013

change at constant rates

Leathergoods - Saddlery 779.9 9.9%Ready-to-wear & Fashion Accessories 395.6 20.8%

Silk & Textiles 201.7 12.9%

Perfumes 106.7 19.9%

Watches 74.9 -1.0%

Other Hermès sectors 94.7 39.6%

Tableware 28.9 5.2%

Other products 84.7 24.2%

TOTAL 1,767.2 14.4%

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ACTIVITY BY SECTOR

Leathergoods and Saddlery

44%

Ready-to-wear and Fashion accessories

22%

Silk and Textiles11%

Other Hermès sectors

5%

Perfumes 6%

Watches4%

Tableware2%

Other products 6%


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PROFIT AND LOSS ACCOUNT


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CONSOLIDATED INCOME STATEMENT


in M€ June 2013

% revenue

June 2012

% revenue

Revenue 1,767.2 1,591.4Cost of sales -554.0 -498.0Gross profit 1,213.2 68.6% 1,093.4 68.7%

Selling, marketing and administrative expenses -569.8 -516.2Other income and expense -59.3 -66.2Recurring operating income 584.1 33.1% 510.9 32.1%Other non-recurring income and expense - -OPERATING INCOME 584.1 33.1% 510.9 32.1%Change +14.3%

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CONSOLIDATED INCOME STATEMENT


in M€ June 2013

% revenue

June 2012

% revenue

OPERATING INCOME 584.1 33.1% 510.9 32.1%

Net financial income -8.2 -6.7Income tax expense -191.1 -164.1

-33.2% -32.5%Net income from associates 1.9 0.4Net income attributable to non-controlling interests -5.0 -5.3NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT 381.7 21.6% 335.1 21.1%

Change +13.9%

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INVESTMENTS


in M€ June 2013

Stores and distribution 36

Production and securing of supplies 19

Real estate and others (incl. "cité des métiers") 20

Investments 75

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RESTATED CASH FLOWS STATEMENT


in M€ June 2013

June 2012

Operating cash flows 476 393Change in working capital -155 -183Investments -75 -70Dividends paid -271 -738Other changes -49 13

Change in net cash position -74 -585Closing restated Net cash position 647 459

Opening restated Net cash position 721 1 044

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IFRS CASH FLOWS STATEMENT


in M€ June 2013

June 2012

Operating cash flows 476 393Change in working capital -155 -183Investments -95 -70Dividends paid -271 -738Other changes -45 24

Change in net cash position -90 -574Closing IFRS Net cash position 596 464

Opening IFRS Net cash position 686 1 038

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2013 OUTLOOK

2013 OUTLOOK

• Long-term strategy to be pursued.

• Alliance between creativity and exceptional craftsmanship.

• Control of our know-how.

• Reinforcement of the distribution network.

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HERMES - 2013 OUTLOOK

• Continued of the distribution network with around fifteen branches being opened or renovated.

• Completion of the construction of the Hermès Maison in Shanghai; opening is planned for mid 2014.

• Building of the « Maison des savoir-faire Jean-Louis Dumas », to be finalized end of 2014.

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Documents

HERMÈS...Development of Shang Xia project, in preparation for Paris store opening 9 HERMÈS – 1 st half 2013 RESULTS Petit h space 10 HIGHLIGHTS COMMUNICATION •4thedition