PERFORMANCE OF THE CRAFTSMANSHIP
AND ENTREPRENEURSHIP MODEL
QUALITY AND CREATIVITY AND
DURABILITY SAVOIR-FAIRE
Exceptional materials >80 REVENUE Abundant creativity
Products designed to last
€13.4 BILLION A unique style >50,000 references
Craftspeople >7,000 +21% at constant Unique know-how and
Repairs in workshops >200,000 exchange rates innovation
4 diplomas awarded, including a
CFA in leather goods
21 Best Craftspeople in France
OPERATING
INVESTMENTS
INTEGRATION AND
€1.9 BILLION EMPLOYMENT AND
over 3 years of which RESPONSIBILITY
EXCLUSIVITY
above 60% in France
Job creation
Strong vertical integration
> 22,000 employees of
55% of objects made in in-house
which 13,700 in France
and exclusive workshops JOB CREATION
Local anchoring X2 IN 10 YEARS Sharing value
74% of objects produced in France 64% in France Exceptional bonus of €4,000
18,000 shareholder employees
Multi-local and exclusive following the 6th free share plan
distribution network
294 stores in 45 countries
2023 Full-Year Results 2
ABUNDANT CREATIVITY AND
UNIQUE KNOW-HOW
• Enrichment of the leather goods collection with the models Arçon,
Della Cavalleria Élan or the Haut à Courroies Multipockets bag
• Successful Women’s and Men’s Ready-to-Wear collections
• Format and design dynamics of the silk collections
• Presentation of the Chaîne d’ancre jewellery collection
• New versions of the Hermès H08 watch
• Launch of the 5th chapter of Beauty, Le Regard Hermès
• Successful launches of the Un Jardin à Cythère and Tutti Twilly perfumes
2023 Full-Year Results 4
DEVELOPMENT OF PRODUCTION
CAPACITIES (1/2)
• Two leather goods workshop openings:
› Louviers (Eure) and la Sormonne (Ardennes), E4C2-certified
› Expansion of the Saint-Junien (Haute-Vienne) glove and leather goods workshop
• Four ongoing leather goods workshop projects:
› 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
2023 Full-Year Results 5
DEVELOPMENT OF PRODUCTION
CAPACITIES (2/2)
• Strengthening of capacity investments in all the métiers:
› A new printing line in the Textile division of the Pierre-Bénite site
› Development of the Hermès Manufacture des Métaux company, specialised
in metal pieces
› Expansion of the Hermès Perfume & Beauty site in Normandy
› Beyrand site expansion project for Tableware
• Securing supply:
› Acceleration of vertical integration projects in all the métiers
› Acquisition of minority interests in some of our historical partners
2023 Full-Year Results 6
EXCLUSIVITY: AN INTEGRATED
AND OMNICHANNEL DISTRIBUTION
NETWORK (1/2)
• Continued operating investments in the multi-local distribution network
• Opening of new stores:
› Naples, Aspen and Los Angeles Topanga (United States)
› Tianjin and Chengdu (China)
• Expansion and renovation of stores:
› Chicago and Las Vegas Bellagio (United States)
› Vienna (Austria), Bordeaux (France) and Crans-Montana (Switzerland)
› Beijing Peninsula (China), the Shilla Hotel in Seoul (Korea), Sapporo and
Kyoto Takashimaya (Japan)
2023 Full-Year Results 7
EXCLUSIVITY: AN INTEGRATED
AND OMNICHANNEL DISTRIBUTION
NETWORK (2/2)
• A solid performance of e-commerce sales worldwide:
› Opening of the new digital platform in Brazil
› New omnichannel services and a wider range of products available
• Strengthening of the supply chain in all geographical areas
• Strong growth of travel retail
2023 Full-Year Results 8
SINGULAR COMMUNICATION
• Presenting Hermès in an authentic and unconventional manner:
› Hermès in the Making in Lille, Chicago and Bangkok
› On the Wings of Hermès in Los Angeles, Hong Kong and Shanghai
› Héritage In Motion in São Paulo
› Le Kiosque du Monde d’Hermès notably in Lisbon and Hong Kong
› Saut Hermès at the Grand Palais Éphémère in Paris
• Rediscovering the 16 métiers of the house:
› Please Check In in Seoul
› Men’s universe in Aspen and women’s universe in Beijing
› Parade event around Homeware in Seoul
› petit h in Beijing and Osaka
› Silk events: Brides de Galaxy in London, Par un beau soir de carrés
in Brussels
› Pony Dance event in Athens, Panama City and Manila
2023 Full-Year Results 9
A SUSTAINABLE AND RESPONSIBLE
BUSINESS MODEL
PEOPLE AT THE LOCAL ANCHORING
HEART OF OUR
VALUES Responsible real estate standard:
2 leather goods workshops
Acceleration of job creation E4C2-certified
and sharing value Systemic alignment of new
projects
Rate of people with disabilities >6%
60 production and training
sites in France
CLIMATE STRATEGY
PRESERVATION OF
NATURAL RESOURCES
Reduction in greenhouse gas
emissions between 2018 and 2030
(validated by SBTi): Initiation of SBTN process
-50.4% in absolute value
scopes 1&2 Responsible supply chains: process
-58.1% in intensity scope 3 leading to certification for 44
purchasing sectors by 2024
100% renewable electricity in 2025
in our own operations Circular economy
2023 Full-Year Results 11
HERMÈS: SOCIALLY RESPONSIBLE
• Acceleration of job creation and sharing value:
› 22,040 employees, including 62% in France at the end of December 2023,
an increase of 2,400 employees, including 1,400 in France
› 6th free share plan, enabling all employees to become shareholders, and
worldwide bonus in respect of 2023
• Transmission of savoir-faire and local anchoring:
› Deployment of the École Hermès des savoir-faire in 8 regional training centres
in France with diploma courses (Leather goods, Cutting and Stitching)
• Commitment to diversity and inclusion:
› 6.85% rate of directly employed people with disabilities in France and Signature of
the 3rd Group Disability Agreement
› Gender equality Index in France: 95/100
› Group agreement on work-life balance (caregivers, parenthood and vulnerabilities)
2023 Full-Year Results 12
COMMITMENTS TO CLIMATE AND
PRESERVATION OF RESOURCES
• In line with the climate trajectory below 1.5°C (validated by SBTi):
› Reduction by 30% of scopes 1 and 2 emissions in absolute value in 2023 vs 2022
› Publication of the Climate Transition Plan
› Standard for high environmental and social performance real estate
• Preservation of natural resources:
› Initiation of the Science Based Targets for Nature (SBTN) process to set scientific targets
for Nature
› Publication of the Forests policy
› Water management: -62% in industrial water consumption intensity over 10 years,
in line with the target of -5% per year in intensity
• Strengthening circular economy principles:
› Life Cycle Analysis on 100% of the House’s most emblematic products by 2025
› >80% of leather goods division’s suppliers LWG (Leather Working Group) certified
› Engagement for eco-design, reusing and recycling across our entire value chain
2023 Full-Year Results 13
SOCIAL, SOCIETAL AND ENVIRONMENTAL
PERFORMANCE RECOGNISED
GLOBAL EVALUATIONS THEMATIC EVALUATIONS
AA « A List »
Climate A / Water A
2022
#2 Textiles and Grand Prix
Apparel Emploi 2023
for the 3rd time
Transparency Award « CAC
Advanced
Awards Large 60 »
2023 Full-Year Results 14
ACTIVITY
• Sales in 2023 reached €13.4 billion, (+21% at constant exchange
rates and +16% at current exchange rates)
• All the regions posted solid performances, with consistent
growth around 20%
• Strong momentum in all the métiers with double-digit growth
• Sales in the 4th quarter amounted to €3.4 billion (+17.5% at
constant exchange rates and +12.5% at current exchange rates),
thanks to sustained activity in the United States as well as in Asia
2023 Full-Year Results 16
REVENUE BY GEOGRAPHICAL AREA
Change at
in €m 2023 constant rates
France 1,274 20%
Europe (excl. France) 1,818 20%
EUROPE 3,093 20%
Japan 1,260 26%
Asia-Pacific (excl. Japan) 6,273 19%
ASIA 7,533 20%
Americas 2,502 21%
Other 299 44%
TOTAL 13,427 21%
2023 Full-Year Results 18
REVENUE BY GEOGRAPHICAL AREA
Other France
Japan 2% / 2% 9% / 9%
10% / 10%
Europe
(excl. France)
13% / 13%
2023 / 2022
Asia-Pacific
(excl. Japan)
47% / 48% Americas
19% / 18%
2023 Full-Year Results 19
REVENUE BY SECTOR
Change at
in €m 2023 constant rates
Leather Goods and Saddlery 5,547 17%
Ready-to-wear and Accessories 3,879 28%
Silk and Textiles 932 16%
Other Hermès sectors 1,653 26%
Perfume and Beauty 492 12%
Watches 611 23%
Other products 313 5%
TOTAL 13,427 21%
2023 Full-Year Results 21
REVENUE BY SECTOR
Watches Other products
5% / 4% 2% / 3%
Perfume and Beauty
4% / 4%
Other Hermès sectors
12% / 12%
Leather Goods and Saddlery
41% / 43%
2023 / 2022
Silk and Textiles
7% / 7%
Ready-to-wear and Accessories
29% / 27%
2023 Full-Year Results 22
OUTSTANDING SALES AND RESULTS IN 2023
In €m In €m
Sales CAGR over 10 years +13.6%
Net income CAGR over 10 years +18.5%
2023 Full-Year Results 24
CONSOLIDATED INCOME STATEMENT
% %
in €m 2023 revenue 2022 revenue
Revenue 13,427 11,602
Cost of sales (3,720) (3,389)
Gross margin 9,708 72.3% 8,213 70.8%
Communication (607) (4.5)% (525) (4.5)%
Other sales and administrative expenses (2,561) (19.1)% (2,155) (18.6)%
Other income and expenses (889) (6.6)% (836) (7.2)%
Recurring operating income 5,650 42.1% 4,697 40.5%
Other non-recurring income and expenses
Operating income 5,650 42.1% 4,697 40.5%
Change y-o-y +20%
2023 Full-Year Results 26
RECURRING OPERATING PROFITABILITY EVOLUTION
in % of revenue
* Before IFRS16
2023 Full-Year Results 27
CONSOLIDATED INCOME STATEMENT
% %
in €m 2023 revenue 2022 revenue
Operating income 5,650 42.1% 4,697 40.5%
Net financial income 190 (62)
Income tax (1,623) (1,305)
In % of income before tax 27.8% 28.2%
Net income from associates 105 50
Non-controlling interests (12) (13)
Net income attributable to owners of the parent 4,311 32.1% 3,367 29.0%
Change y-o-y +28%
2023 Full-Year Results 28
NET PROFITABILITY EVOLUTION
in % of revenue
* 22,7% restated for the capital gain on the disposal of the Galleria in Hong Kong in 2018
** 20,3% restated for a non-current gain relating to the deconsolidation of Shang Xia in 2020
2023 Full-Year Results 29
OPERATING INVESTMENTS
Production and divisions
€208 million Stores and distribution
€258 million
Total
€859 million
Real estate and group projects
€392 million
2023 Full-Year Results 31
RESTATED CASH-FLOW STATEMENT
in €m 2023 2022
Operating cash flows 5,123 4,111
Change in working capital (794) 73
Cash flows related to operating activities 4,328 4,185
Operating investments (859) (518)
Repayment of lease liabilities (277) (261)
Adjusted free cash flow 3,192 3,405
Financial investments (316) (21)
Dividends paid (1,386) (852)
Treasury share buybacks net of disposals (132) (116)
Other changes 65 257
Change in net cash position 1,422 2,672
Closing restated net cash position 11,164 9,742
Opening restated net cash position 9,742 7,070
2023 Full-Year Results 32
SIMPLIFIED BALANCE SHEET
in €bn Assets Liabilities
20.5 20.5
17.5 17.5
Non-current assets
Inventories
Other current assets Shareholders’ equity
Cash
Non-current liabilities
Current liabilities
2023 Full-Year Results 34
EVOLUTION OF THE
DIVIDEND PER SHARE
Exceptional dividend + €5.00 + €5.00 + €10.00
In € per share
Ordinary dividend
For the period
In € per share
* Subject to approval by the General Meeting of 30 April 2024, including €3.5 interim dividend paid on 15 February 2024
2023 Full-Year Results 35
OUTLOOK
• In the medium-term, despite economic, geopolitical and monetary
uncertainties around the world, the house confirms an ambitious goal
for revenue growth at constant exchange rates
• The group has moved into 2024 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
2023 Full-Year Results 37
2024: IN THE SPIRIT OF THE FAUBOURG,
AT THE HEART OF THE HOUSE
• Accelerating job creation in France and worldwide
• Opening of the leather goods factory in Riom (Puy-de-Dôme)
• Store openings and expansions, notably in Princeton (United States),
Wuxi and Shenzhen MixC (China) and Lille (France)
• Continued strategic investments in production capacities in all the métiers
and further upstream and downstream vertical integration, including the
strengthening of its relationship with the historical partner in the Middle East
• Amplification of actions within the value chain in line with commitments
against climate change and to preserve natural resources
• Launch of the table service Tressages équestres
• 14th edition of the Saut Hermès at the Grand Palais Éphémère in Paris in March
2023 Full-Year Results 38
