HERMÈSresults+presentation.pdfHIGHLIGHTS ACTIVITY • A handsome growth in all sectors, with the exception of watches which were affected by the general downturn in the watch industry

HERMÈS 2013 RESULTS

Presentation as of 20th March 2014

HERMÈS – 2013 RESULTS

2

HIGHLIGHTS

HIGHLIGHTS

ACTIVITY AND RESULT

• Sales are up 8 % at current rates, and 13 % at constant rates

• Operating profit increases by 9 % and operating margin reaches

32.4 % of sales, (32.1 % in 2012)

• Net result, after taking into account a higher tax charge, is up 7 %

3


HIGHLIGHTS

ACTIVITY

• Activity was driven by the Group’s stores (+13 % at constant

rates) in all geographical zones(Japan included)

• Retail sales growth remained strong in the 2nd half (+12% versus

+15% in the 1st half)

• Negative currency impact amounted to approximately - 180 M€

on sales (- 5 points), mainly due to the weakening of the Yen

4


HIGHLIGHTS

ACTIVITY

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

watches which were affected by the general downturn in the

watch industry

• All geographical zones contributed to growth

5


HIGHLIGHTS

TREASURY

• Operating cash flow reached 1 016 M€, up 15 %

• Restated net cash position reached 1 091 M€ as at 31st

December 2013

6


HIGHLIGHTS

INVESTMENTS

• Investments amount to 232 M€, mainly related to :

Renforcing production capacities and securing supplies

Completion of « Cité des Métiers » construction in Pantin

Developing the distribution network with the opening or

renovation of fourteen branches

7


HIGHLIGHTS

DISTRIBUTION NETWORK

• 3 branches were opened (Ningbo in China, Nagoya Mitsubichi in Japan and

Harrod’s Jewellery / Watches in London)

• 3 concessions were converted (Singapore Airport and United States)

• 8 renovations with extensions, of which the Beijing China World store,

Beverly Hills and Milan

8


Beijing China World store Beverly Hills store

HIGHLIGHTS

DEVELOPMENTS

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

store

• Opening of Shang Xia store in Paris

9


Petit h space Shang Xia store

10

HIGHLIGHTS

COMMUNICATION

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

• 3 events around the men’s universe in Miami, Frankfurt, Seoul

• Event around the women’s universe « Mouvement Féminin » in Paris

• 7 « Festival des Métiers » in Beijing, Shen Yang, Hangzhou, London,

Düsseldorf, Toronto and Luxemburg

• « Leather forever » exhibition in Madrid


Saut Hermès « Festival des Métiers » - Beijing

11

ACTIVITY BY

GEOGRAPHICAL

ZONE


12

ACTIVITY BY GEOGRAPHICAL ZONE


(in M€)December

2013

change at

constant rates

France 613,1 10,4%

Europe (excl. France) 737,0 12,9%

EUROPE 1 350,1 11,7%

Japan 463,2 6,5%

Asia-Pacific (excl. Japan) 1 248,1 16,4%

ASIA 1 711,2 13,1%

Americas 627,4 14,2%

Others 66,1 26,0%

TOTAL 3 754,8 13,0%

13

ACTIVITY BY GEOGRAPHICAL ZONE


14

ACTIVITY

BY

SECTOR


15

ACTIVITY BY SECTOR


(in M€)December

2013

change at

constant rates

Leathergoods - Saddlery 1,633.8 8.8%

Ready-to-wear & Fashion

Accessories 843.1 17.9%

Silk & Textiles 453.9 11.5%

Perfumes 209.7 14.8%

Watches 167.2 1.0%

Other Hermès sectors 216.4 36.5%

Tableware 61.2 4.4%

Other products 169.6 29.0%

TOTAL 3,754.8 13.0%

16

ACTIVITY BY SECTOR


17

PROFIT

AND LOSS

STATEMENT


18

CONSOLIDATED INCOME STATEMENT


in M€December

2013

%

revenue

December

2012

%

revenue

Revenue 3,754.8 3,484.1

Cost of sales -1,170.3 -1,110.8

Gross profit 2,584.4 68.8% 2,373.3 68.1%

Selling, marketing and administrative expenses -1,215.3 -1,130.8

Other income and expense -151.1 -123.8

Recurring operating income 1,218.0 32.4% 1,118.6 32.1%

Other non-recurring income and expense - -

OPERATING INCOME 1,218.0 32.4% 1,118.6 32.1%

Change +8.9%


RECURRING OPERATING INCOME

19

0%

5%

10%

15%

20%

25%

30%

35%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

27.1% 26.8% 26.9% 26.5% 25.5% 25.5%

24.2%

27.8%

31.2% 32.1% 32.4%

20

CONSOLIDATED INCOME STATEMENT


in M€December

2013

%

revenue

December

2012

%

revenue

OPERATING INCOME 1,218.0 32.4% 1,118.6 32.1%

Net financial income -23.5 -18.6

Income tax expense -397.6 -349.1-33.3% -31.7%

Net income from associates 2.0 -0.4

Net income attributable to non-controlling interests -8.6 -10.6

NET INCOME ATTRIBUTABLE TO OWNERS OF

THE PARENT790.3 21.0% 739.9 21.2%

Change +6.8%


21

REVENUE

(in M€)

REVENUE AND NET RESULT

Revenue

Net result

Over 1 year Over 2 years

+7.8 % +32.1 %

+13.0 % +31.5 % NET RESULT

(in M€)

3 755

3 484

2 841

2 401

1 914

1 765

1 3311 230

1 4271 515

1 625

790740

594

422

289290

268

217 214247

288

0

400

800

1200

1600

2000

2400

2800

3200

3600

4000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

100

200

300

400

500

600

700

800

900

1000

Consolidated turnover Net result

22

INVESTMENTS


in M€ December

2013

Stores and distribution 95

Production and securing of supplies 83

Real estate and others ( incl . " cité des métiers " ) 54

Investments 232

23

IFRS CASH FLOW STATEMENT


in M€December

2013

December

2012

Operating cash flows 1,016 885

Change in working capital -74 -152

Investments -283 -398

Dividends paid -273 -742

Other changes -50 54

Change in net cash position 336 -352

Closing IFRS Net cash position 1,022 686

Opening IFRS Net cash position 686 1,038

24

RESTATED CASH FLOW STATEMENT


in M€December

2013

December

2012

Operating cash flows 1,016 885

Change in working capital -74 -152

Investments -232 -370

Dividends paid -273 -742

Other changes -67 56

Change in net cash position 370 -323

Closing restated Net cash position 1,091 721

Opening restated Net cash position 721 1,044

25

2014 OUTLOOK

LONG-TERM STRATEGY TO BE PURSUED

• Alliance between creativity and exceptional craftsmanship.

• Control of our know-how.

• Reinforcement of the distribution network.

26

HERMÈS – OUTLOOK

• Development of growth relays

• Strengthening of production capacities and vertical

integration

• Building of the « Maison des savoir-faire Jean-Louis

Dumas », to be completed end of 2014.

• Development of the distribution network to be pursued

with around twenty branches being opened or renovated.

• Completion of the construction of the Hermès Maison in

Shanghai which opening is planned for september 2014.

27

HERMÈS – OUTLOOK

28

Documents

HERMÈSresults+presentation.pdfHIGHLIGHTS ACTIVITY • A handsome growth in all sectors, with the exception of watches which were affected by the general downturn in the watch industry