Hermès International

Quarterly Report • Jul 25, 2024

HALF - YEAR

FINANCIAL REPORT

June 2024

KEY FIGURES	3
Key consolidated data for the first half of 2024	3
HALF‑YEAR BUSINESS REPORT	5
2.1 Half‑year highlights	5
2.2 First‑half revenue and activity	5
2.2.1 Sales by geographical area at the end of June	5
2.2.2 Sales by métier at the end of June	6
2.3 Comments on the condensed consolidated half‑year financial statements	7
2.3.1 Income statement	7
2.3.2 Cash flows and investments	8
2.3.3 Financial position	8
2.4 Outlook	9
2.5 Risks and uncertainties	9
2.6 Related‑party transactions	9
CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS AT 30 JUNE 2024	11
3.1 Consolidated income statement	11
3.2 Consolidated statement of comprehensive income	11
3.3 Consolidated balance sheet	12
3.4 Consolidated statement of changes in equity	13
3.5 Consolidated statement of cash flows	14
3.6 Notes to the condensed interim consolidated financial statements	15
STATUTORY AUDITORS' REVIEW REPORT ON THE
HALF‑YEAR FINANCIAL INFORMATION	29
STATEMENT BY THE PERSONS RESPONSIBLE FOR THE HALF‑YEAR FINANCIAL REPORT	33

This document is a free translation into English of the original French "Rapport financier semestriel". It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

KEY FIGURES

KEY CONSOLIDATED DATA FOR THE FIRST HALF OF 2024

In millions of euros	H1 2024	H1 2023	Financial year 2023
Revenue	7,504	6,698	13,427
Growth at current exchange rates vs. n‑1	12%	22%	16%
1 Growth at constant exchange rates vs. n‑1	15%	25%	21%
2 Recurring operating income	3,148	2,947	5,650
in % of revenue	42.0%	44.0%	42.1%
Operating income	3,148	2,947	5,650
in % of revenue	42.0%	44.0%	42.1%
Net income attributable to owners of the parent	2,368	2,226	4,311
in % of revenue	31.6%	33.2%	32.1%
Operating cash flows	2,829	2,615	5,123
Operating investments	319	249	859
3 Adjusted free cash flows	1,776	1,720	3,192
Equity attributable to owners of the parent	15,052	13,249	15,201
4 Net cash position	9,477	9,326	10,625
5 Restated net cash position	10,033	9,848	11,164
6 Headcount (in number of people)	23,242	20,607	22,037

(1) Growth at constant exchange rates is calculated by applying, for each currency, the average exchange rates of the previous period to the revenue for the period.

Recurring operating income is one of the main performance indicators monitored by Group Management. It corresponds to operating income excluding non‑recurring items having a significant impact that may affect understanding of the Group's economic performance. (2)

Adjusted free cash flows are the sum of cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS 16 (aggregates in the consolidated statement of cash flows). (3)

Net cash position includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short‑term borrowings and financial liabilities on the liabilities side. Net cash position does not include lease liabilities recognised in accordance with IFRS 16. (4)

Restated net cash position corresponds to net cash position plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities. (5)

(6) Headcount corresponds to employees on permanent employment contracts and those on fixed‑term contracts of more than nine months.

HALF‑YEAR BUSINESS REPORT

2.1 HALF‑YEAR HIGHLIGHTS

The Group's consolidated revenue in the first half of 2024 amounted to €7.5 billion, up 15% at constant exchange rates and 12% at current exchange rates compared to the same period in 2023. All the geographical areas recorded double‑digit growth. Recurring operating income was €3.1 billion (42% of sales) and net profit (group share) reached €2.4 billion (32% of sales).

In the second quarter, sales reached €3.7 billion, up 13% at constant exchange rates. In a more challenging context, all the regions

continued to show remarkable momentum, with the exception of Asia due to an inflection in traffic in Greater China. This growth relies on the loyalty of our customers all over the world.

Axel Dumas, Executive Chairman of Hermès, said: "The solid first‑half results, in a more complex economic and geopolitical context, reflect the strength of Hermès' model. The Group is confident in the future and is continuing to invest, to pursue its vertical integration projects and to create new jobs, while remaining true to its values."

2.2 FIRST‑HALF REVENUE AND ACTIVITY

2.2.1 SALES BY GEOGRAPHICAL AREA AT THE END OF JUNE

(At constant exchange rates, unless otherwise indicated)

				Change vs. 2023
In millions of euros	H1 2024		published	at constant exchange rates
France	680	593	15%	15%
Europe (excluding France)	970	836	16%	18%
Japan	693	636	9%	22%
Asia‑Pacific (excluding Japan)	3,521	3,297	7%	10%
Americas	1,329	1,185	12%	13%
Other (Middle East)	311	151	105%	105%
CONSOLIDATED REVENUE	7,504	6,698	12%	15%

At the end of June 2024, all the geographical areas posted solid growth, despite a particularly high comparison basis in the second quarter in Asia. The exclusive distribution network continued to develop, with store openings and expansions.

• Asia excluding Japan (+10%) posted growth in all the countries of the region. As a reminder, performance in the second quarter of 2023 was exceptional, following the lifting of health measures in China. The House's value strategy supported activity, despite a downturn in traffic in Greater China observed after the Chinese New Year in the first quarter. In June, the Lee Gardens store in Hong Kong reopened after expansion, after the reopening in May of the renovated Beijing SKP store in China. In April, the Mumbai Jio World Plaza store opened its doors, the House's third address in India. s
• Japan (+22%) continued its strong growth, thanks to its local clients. A new store was inaugurated in the Ginza district of Tokyo in June, following the Azabudai Hills store in February. s
• The Americas (+13%) confirmed their sustained growth, thanks to the continued solid momentum in the United States. A new store was inaugurated in Princeton, New Jersey, in April. The second chapter of the women's fall‑winter 2024 collection was unveiled in June in New York with the Manhattan Rocabar event. s
• Sales in Europe excluding France (+18%) and France (+15%) were particularly robust, thanks to the loyalty of local customers and dynamic tourist flows. In France, the Nantes store reopened in June after being renovated and expanded. s

2.2.2 SALES BY MÉTIER AT THE END OF JUNE

(At constant exchange rates, unless otherwise indicated)

				Change vs. 2023
In millions of euros	H1 2024		published	at constant exchange rates
1 Leather Goods & Saddlery	3,215	2,780	16%	19%
2 Ready‑to‑wear and Accessories	2,162	1,922	12%	15%
Silk and Textiles	436	444	(2)%	1%
3 Other Hermès sectors	967	836	16%	19%
Perfume and Beauty	259	249	4%	5%
Watches	308	317	(3)%	0%
4 Other products	157	150	5%	7%
CONSOLIDATED REVENUE	7,504	6,698	12%	15%

(1) The "Leather Goods & Saddlery" métier includes women's and men's bags, travel items, small leather goods and accessories, saddles, bridles and all the equestrian objects and clothing.

(2) The "Ready‑to‑wear and Accessories" métier includes Hermès Ready‑to‑wear for men and women, belts, costume jewellery, gloves, hats and shoes.

(3) The "Other Hermès sectors" include Jewellery and Hermès home products (Art of Living and Hermès Tableware).

(4) The "Other products" include the production activities carried out on behalf of non‑group brands (textile printing, tanning…), as well as John Lobb, Saint‑Louis and Puiforcat.

At the end of June 2024, the métiers showed solid growth, despite a more complex context.

• The Leather Goods & Saddlery métier (+19%) posted a remarkable performance, thanks to the increase in production capacities and particularly sustained demand. The collections have been enriched with new formats, including the Della Cavalleria Élan and the Kelly Mini clouté models in particular. The travel universe unfolds around an R.M.S. Cargo suitcase and weekend bags. The increase in production capacities continues with the opening of the Riom (Puy‑de‑Dôme) leather goods production site in September 2024 and the laying of the first stone for two new leather goods production sites: Isle‑d'Espagnac (Charente) in April and Loupes (Gironde) in May, which will open in 2025 and 2026 respectively. They will reinforce the nine centres of expertise located across the national territory. Hermès is developing employment and training and continues to strengthen its anchoring in France. s
• The Ready‑to‑wear and Accessories sector (+15%) pursued its strong momentum. The men's spring‑summer 2025 fashion show held at Palais d'Iéna in June was very well received. The shoes and fashion accessories displayed designs combining the House's extensive expertise with boundless creativity. s
• The Silk and Textiles sector (+1%) posted growth despite a high comparison basis in the second quarter, thanks to the diversity of creations, materials and formats in both the women's and men's collections. s
• The Perfume and Beauty sector (+5%) continued its development. The new creation Oud Alezan joined the Hermessence collection in February, and the H24 men's line was enriched with Herbes Vives in April, two refillable creations. In June, the Bain Hermès celebrated 10 years with the renewal of the whole collection, Cologne and Parfum‑Jardin, around a sustainable range now made of glass. s
• The Watches métier was stable and successfully unveiled at the Geneva Watches & Wonders exhibition held in mid‑April Hermès Cut, a new line with a sporty spirit featuring a manufacture movement. s
• The Other Hermès sectors (+19%) which include Jewellery and the Home universe, pursued their strong growth, illustrating the singularity and creativity of the House, in particular with the launch of the eighth Haute Bijouterie collection Les formes de la couleur in June, at the Musée des Arts Décoratifs in Paris. The Home universe collections, presented at the Milan Design Week, were very well received, highlighting the singularity of the exceptional savoir‑faire of the House. s

2.3 COMMENTS ON THE CONDENSED CONSOLIDATED HALF‑YEAR FINANCIAL STATEMENTS

2.3.1 INCOME STATEMENT

	In millions of euros

In millions of euros	H1 2024	H1 2023
Revenue	7,504	6,698
Cost of sales	(2,206)	(1,863)
Gross margin	5,298	4,834
Sales and administrative expenses	(1,682)	(1,485)
Other income and expenses	(467)	(403)
Recurring operating income	3,148	2,947
Other non‑recurring income and expenses	-	-
Operating income	3,148	2,947
Net financial income	141	75
Net income before tax	3,289	3,021
Income tax	(927)	(831)
Net income from associates	16	43
CONSOLIDATED NET INCOME	2,378	2,234
Non‑controlling interests	(10)	(8)
NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT	2,368	2,226
Basic earnings per share (in euros)	22.61	21.29
Diluted earnings per share (in euros)	22.58	21.26

In the first half of 2024, the Group's consolidated revenue amounted to €7.5 billion, up 15% at constant exchange rates and 12% at current exchange rates compared to the first half of 2023.

The gross margin rate reached 71%, down 1.6 points. As a reminder, the margin rate for the first half of 2023 benefited from the positive impact of foreign exchange hedges, a leverage effect on fixed production costs and particularly high collection turnover rates.

Sales and administrative expenses, which represent €1.7 billion vs. €1.5 billion at the end of June 2023, include in particular €0.3 billion in communication expenses, as they did in the previous half. Other sales and administrative expenses, which mainly include the salaries of sales and support staff as well as variable rents, amounted to €1.4 billion compared to €1.2 billion.

Other income and expenses amount to €0.5 billion vs. €0.4 billion at the end of June 2023. They include depreciation and amortisation of €0.3 billion, half of which relates to property, plant and equipment and intangible assets and the other half to right‑of‑use assets.

Recurring operating income amounted to €3.1 billion, compared to €2.9 billion in the first half of 2023, a rise of 7%. Recurring operating profitability amounted to 42% of sales, compared with 44% at the end of June 2023.

Net financial income amounted to €0.1 billion. It mainly includes the cost of foreign exchange hedges, interest on lease liabilities and interest payments on cash which, in line with the rise in interest rates, amounted to €0.2 billion.

The estimated tax rate for 2024 is 28%, a similar rate to 2023.

After taking into account the net income from associates and non‑controlling interests, consolidated net income attributable to owners of the parent amounted to €2.4 billion compared to €2.2 billion in the first half of 2023, i.e. an increase of 6%.

2.3.2 CASH FLOWS AND INVESTMENTS

In millions of euros	H1 2024	H1 2023
Operating cash flows	2,829	2,615
Change in working capital requirements	(584)	(509)
Cash flows related to operating activities	2,244	2,106
Operating investments	(319)	(249)
Repayment of lease liabilities	(149)	(137)
1 Adjusted free cash flows	1,776	1,720
Investments in financial assets	(247)	(97)
Dividends paid	(2,650)	(1,384)
Treasury share buybacks net of disposals (excluding liquidity contract)	(0)	4
Other movements	(27)	(140)
Change in net cash position	(1,147)	103
Net cash position at the end of the period	9,477	9,326
Net cash position at the beginning of the period	10,625	9,223

(1) Alternative performance indicators defined and reconciled in note 3 to the consolidated financial statements.

Operating cash flows amounted to €2.8 billion and were up 8% compared to the first half of 2023, a similar rate to that seen for operating income.

The change in working capital requirements at the end of June 2024 represented cash consumption of €(0.6) billion, similar to the first half of 2023. This is mainly the result of the increase in inventories. The change in cash related to operating activities thus amounted to €2.2 billion vs. €2.1 billion in the first half of 2023.

After taking into account operating investments (€0.3 billion) and repayment of lease liabilities recognised in accordance with IFRS 16, adjusted free cash flows were €1.8 billion vs. €1.7 billion in the first half of 2023.

Financial investments for the half‑year amounted to €0.2 billion and mainly concerned the acquisition of a majority interest in the retail activities in the United Arab Emirates.

€2.6 billion were distributed in respect of the ordinary dividend and the exceptional dividend.

Net cash amounted to €9.5 billion at the end of June 2024 compared with €10.6 billion as at 31 December 2023. After taking into account cash investments that do not meet the IFRS cash equivalent criteria, the restated net cash position amounted to €10.0 billion compared with €11.2 billion at 31 December 2023 (see alternative performance measures in note 3 to the consolidated financial statements).

2.3.3 FINANCIAL POSITION

The Hermès Group's consolidated balance sheet total at the end of June 2024 was €20.5 billion, stable compared to the end of 2023. Cash accounted for nearly 46% of total assets, and equity, which amounted to €15.1 billion, represented more than 74% of liabilities. The Group is thus consolidating a solid financial structure that allows it to maintain its independence and pursue its long‑term strategy.

2.4 OUTLOOK

In a more complex economic and geopolitical environment, the Group continues its development with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.

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.

2.5 RISKS AND UNCERTAINTIES

The Hermès Group's results are exposed to the risks and uncertainties set out in the 2023 universal registration document. The assessment

of these risks did not change during the first half of 2024 and no new risks have been identified at the date of publication of this report.

2.6 RELATED‑PARTY TRANSACTIONS

Information on the main related‑party transactions relating to the six months to 30 June 2024 is provided in note 13 to the condensed consolidated financial statements for the first half of 2024.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2024

3.1 CONSOLIDATED INCOME STATEMENT

In millions of euros	Notes	H1 2024	H1 2023
Revenue	4 and 5	7,504	6,698
Cost of sales		(2,206)	(1,863)
Gross margin		5,298	4,834
Sales and administrative expenses	5.3	(1,682)	(1,485)
Other income and expenses	5.4	(467)	(403)
Recurring operating income	4	3,148	2,947
Other non‑recurring income and expenses		-	-
Operating income	4	3,148	2,947
Net financial income	9.1	141	75
Net income before tax		3,289	3,021
Income tax		(927)	(831)
Net income from associates	8	16	43
CONSOLIDATED NET INCOME		2,378	2,234
Non‑controlling interests		(10)	(8)
NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT		2,368	2,226
Basic earnings per share (in euros)	11.6	22.61	21.29
Diluted earnings per share (in euros)	11.6	22.58	21.26

3.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In millions of euros	Notes	H1 2024	H1 2023
Consolidated net income		2,378	2,234
1 Changes in foreign currency adjustments		42	(115)
1 2 Hedges of future cash flows in foreign currencies	11.5	(17)	72
s change in fair value		34	123
s recycling through profit or loss		(51)	(51)
2 Assets at fair value	11.5	30	-
Employee benefit obligations: change in value linked to actuarial gains 2 and losses	6.1	(0)	(1)
Net comprehensive income		2,433	2,189
s attributable to owners of the parent		2,423	2,180
s attributable to non‑controlling interests		10	9

(1) Transferable through profit or loss.

(2) Net of tax.

3.3 CONSOLIDATED BALANCE SHEET

ASSETS

In millions of euros	Notes	30/06/2024	31/12/2023
Goodwill	7.1	241	72
Intangible assets	7.2	228	225
Right‑of‑use assets	7.3	1,821	1,716
Property, plant and equipment	7.2	2,455	2,340
Investment property		7	7
Financial assets	9.2	1,205	1,141
Investments in associates	8	211	200
Loans and deposits		83	70
Deferred tax assets		750	631
Other non‑current assets		45	37
Non‑current assets		7,046	6,438
Inventories and work‑in‑progress	5.5	2,780	2,414
Trade and other receivables		535	431
Current tax receivables		52	51
Other current assets		418	300
Financial derivatives	10	199	188
Cash and cash equivalents	3.3 and 9.3	9,478	10,625
Current assets		13,462	14,008
TOTAL ASSETS		20,507	20,447

LIABILITIES

In millions of euros	Notes	30/06/2024	31/12/2023
Share capital	11	54	54
Share premium		50	50
Treasury shares	11	(698)	(698)
Reserves		12,482	10,744
Foreign currency adjustments		231	189
Revaluation adjustments	11.5	565	553
Net income attributable to owners of the parent		2,368	4,311
Equity attributable to owners of the parent		15,052	15,201
Non‑controlling interests		26	2
Equity		15,078	15,203
Borrowings and financial liabilities due in more than one year	3.3	49	50
Lease liabilities due in more than one year	7.2	1,826	1,720
Non‑current provisions	12.1	33	31
Post‑employment and other employee benefit obligations due in more than one year	6.1	159	151
Deferred tax liabilities		3	2
Other non‑current liabilities		81	106
Non‑current liabilities		2,152	2,060
Borrowings and financial liabilities due in less than one year	3.3	1	1
Lease liabilities due in less than one year	7.2	305	289
Current provisions	12.1	126	134
Post‑employment and other employee benefit obligations due in less than one year	6.1	16	16
Trade and other payables		798	880
Financial derivatives	10	80	45
Current tax liabilities		738	586
Other current liabilities		1,213	1,233
Current liabilities		3,277	3,183
TOTAL EQUITY AND LIABILITIES		20,507	20,447

3.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Number of shares					Consolidated			Revaluation adjustments
In millions of euros		Share capital	Share premium	Treasury shares	reserves and net income attributable to owners of the parent	Actuarial gains and losses	Foreign currency adjustments	Financial investments	Hedges of future cash flows in foreign currencies	Equity attributable to owners of the parent	Non controlling interests	Equity
Notes	11	11		11		6.1		11.5	11.5			11
As at 1 January 2023	105,569,412	54	50	(674)	12,247	(85)	303	521	25	12,440	16	12,457
Net income	-	-	-	-	4,311	-	-	-	-	4,311	12	4,322
Other comprehensive income	-	-	-	-	-	10	(115)	-	7	(98)	1	(97)
Comprehensive income	-	-	-	-	4,311	10	(115)	-	7	4,213	13	4,225
Change in share capital and share premiums	-	-	-	-	-	-	-	-	-	-	-	-
Purchase or sale of treasury shares	-	-	-	(24)	(105)	-	-	-	-	(129)	-	(129)
Share‑based payments	-	-	-	-	104	-	-	-	-	104	-	104
Dividends paid	-	-	-	-	(1,376)	-	-	-	-	(1,376)	(10)	(1,386)
Other	-	-	-	-	(51)	-	-	-	-	(51)	(17)	(68)
As at 31 December 2023	105,569,412	54	50	(698)	15,130	(75)	189	521	32	15,201	2	15,203
Net income for the first half of 2024	-	-	-	-	2,368	-	-	-	-	2,368	10	2,378
Other comprehensive income for the first half of 2024	-	-	-	-	-	(0)	42	30	(17)	55	1	56
Comprehensive income for the first half of 2024	-	-	-	-	2,368	(0)	42	30	(17)	2,423	10	2,433
Change in share capital and share premiums	-	-	-	-	-	-	-	-	-	-	-	-
Purchase or sale of treasury shares	-	-	-	(0)	0	-	-	-	-	0	-	0
Share‑based payments	-	-	-	-	69	-	-	-	-	69	-	69
Dividends paid	-	-	-	-	(2,641)	-	-	-	-	(2,641)	(9)	(2,650)
Other	-	-	-	-	(0)	-	-	-	-	(0)	23	22
AS AT 30 JUNE 2024	105,569,412	54	50	(698)	14,925	(75)	231	551	14	15,052	26	15,078

As at 1 January 2023	105,569,412	54	50	(674)	12,247	(85)	303	521	25	12,440	16	12,457
Net income for the first half of 2023	-	-	-	-	2,226	-	-	-	-	2,226	8	2,234
Other comprehensive income for the first half of 2023	-	-	-	-	-	(1)	(116)	-	72	(45)	1	(45)
Comprehensive income for the first half of 2023	-	-	-	-	2,226	(1)	(116)	-	72	2,180	9	2,189
Change in share capital and share premiums	-	-	-	-	-	-	-	-	-	-	-	-
Purchase or sale of treasury shares	-	-	-	4	1	-	-	-	-	5	-	5
Share‑based payments	-	-	-	-	30	-	-	-	-	30	-	30
Dividends paid	-	-	-	-	(1,376)	-	-	-	-	(1,376)	(8)	(1,384)
Other	-	-	-	-	(31)	-	-	-	-	(31)	(22)	(53)
As at 30 June 2023	105,569,412	54	50	(670)	13,097	(86)	188	521	96	13,249	(5)	13,244

3.5 CONSOLIDATED STATEMENT OF CASH FLOWS

In millions of euros	Notes	H1 2024	H1 2023
Net income attributable to owners of the parent		2,368	2,226
Depreciation and amortisation of fixed assets, right‑of‑use assets and impairment losses	7.2 and 7.3	383	344
Foreign exchange gains/(losses) on fair value adjustments		(19)	62
Change in provisions		2	26
Net income from associates	8	(16)	(43)
Net income attributable to non‑controlling interests		10	8
Capital gains or losses on disposals and impact of changes in scope of consolidation		52	0
Deferred income tax expense		(5)	(25)
Accrued expenses and income related to share‑based payments		69	30
Dividend income		(16)	(12)
Other		(0)	(0)
Operating cash flows		2,829	2,615
Change in working capital requirements	5.5	(584)	(509)
CASH FLOWS RELATED TO OPERATING ACTIVITIES (A)		2,244	2,106
Operating investments	7.1	(319)	(249)
Acquisitions of consolidated shares		(218)	(73)
Acquisitions of other financial assets	9.2	(28)	(24)
Disposals of operating assets	7.1	0	0
Disposals of consolidated shares and impact of losses of control		-	-
Disposals of other financial assets	9.2	-	-
Change in payables and receivables related to investing activities		(80)	(12)
Dividends received		19	26
CASH FLOWS RELATED TO INVESTING ACTIVITIES (B)		(626)	(333)
Dividends paid	11.4	(2,650)	(1,384)
Repayment of lease liabilities	7.2	(149)	(137)
Treasury share buybacks net of disposals	11.3	(0)	4
Borrowing subscriptions		-	0
Repayment of borrowings		(1)	(0)
Other equity transactions		2	0
CASH FLOWS RELATED TO FINANCING ACTIVITIES (C)		(2,799)	(1,517)
Foreign currency translation adjustment (D)		33	(153)
CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D)	9.3	(1,147)	103
Net cash position at the beginning of the period	9.3	10,625	9,223
Net cash position at the end of the period	9.3	9,477	9,326

3.6 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

DETAILED CONTENTS
NOTE 1	ACCOUNTING PRINCIPLES AND POLICIES	16
NOTE 2	CHANGES IN SCOPE	16
NOTE 3	ALTERNATIVE PERFORMANCE MEASURES	16
NOTE 4	SEGMENT INFORMATION	18
NOTE 5	ITEMS RELATING TO OPERATING ACTIVITIES	19
NOTE 6	EMPLOYEE BENEFITS	21
NOTE 7	GOODWILL, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS, AND LEASES	22
NOTE 8	INVESTMENTS IN ASSOCIATES	24
NOTE 9	FINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION	25
NOTE 10	MANAGEMENT OF MARKET RISKS AND DERIVATIVES	26
NOTE 11	EQUITY – EARNINGS PER SHARE	26
NOTE 12	PROVISIONS FOR RISKS AND EXPENSES AND OFF‑BALANCE SHEET COMMITMENTS	27
NOTE 13	RELATED‑PARTY TRANSACTIONS	27
NOTE 14	EVENTS AFTER THE REPORTING PERIOD	27

NOTE 1 ACCOUNTING PRINCIPLES AND POLICIES

1.1 Basis of preparation

The Hermès Group's condensed interim consolidated financial statements were prepared in accordance with IAS 34 Interim Financial reporting as adopted by the European Union. As these are condensed financial statements, the accompanying notes do not include all the information required by IFRS (International Financial reporting Standards) for the preparation of full annual financial statements and should therefore be read in conjunction with the consolidated financial statements for financial year 2023. The standards adopted by the European Union may be consulted at https://eur‑lex.europa.eu/FR/ legal‑content/summary/international‑accounting‑standards‑adopted‑withinthe‑european‑union.html. The application of the texts entered into force on 1 January 2024 had no impact on Hermès' financial statements: amendments to IAS 1 - Classification of liabilities as current or non‑current and debt with covenants; amendments to IFRS 16 - Lease liabilities related to sale and leaseback; amendments to IAS 7 and IFRS 7 - Supplier finance arrangements.

The accounting policies and calculation methods used to prepare these condensed interim financial statements are the same as those used to prepare the financial statements for the year ended 31 December 2023 and described therein, with the exception of the income tax expense for the first half and the employee benefit obligation, which are measured separately (Note 1.2).

The condensed interim consolidated financial statements as presented were approved by the Executive Management on 25 July 2024 after review by the Audit and Risk Committee at its meeting of 24 July 2024.

The consolidated financial statements and notes to the consolidated financial statements are presented in euros. Unless otherwise stated, the values shown in the tables are expressed in millions of euros and rounded to the nearest million. As a result, in certain cases, the effects of rounding up/down can lead to a non‑significant difference in the totals or changes. In addition, the ratios and differences are calculated on the basis of the underlying amounts and not on the basis of rounded amounts.

1.2 Special features of the preparation of interim financial statements

The income tax expense (current and deferred) is calculated for the interim consolidated financial statements by applying the estimated average annual tax rate for the current financial year to the accounting income for the period. It stood at 28.2% for 2024, a similar rate to 2023 (27.8%).

The reform of international tax rules drawn up by the OECD, known as "Pillar II", which introduced a minimum tax of 15% on the profits made by multinational groups, came into force in France in 2024. Following analysis of the texts, in the current regulations and on the basis of the tax rates in force in the countries where the Group operates, the estimated amount of the "top‑up tax" for 2024 is not material. It is included in the projected average effective tax rate for the current financial year. Hermès applies the exemption to the recognition of deferred taxes resulting from the Pillar II reform provided for by IAS 12.

Barring a specific event, the post‑employment benefit obligation is not subject to an actuarial valuation in the first half. The expense recognised for the first half‑year is one‑half of the net expense calculated for financial year 2024 as a whole, based on the data and actuarial assumptions used as at 31 December 2023.

NOTE 2 CHANGES IN SCOPE

In line with its distribution network vertical integration strategy, the House has reinforced its relationship with its historical partner in the Middle East. Thus, in early 2024, Hermès became a majority shareholder alongside its partner in the retail activities located in the

United Arab Emirates. The latter remains the majority shareholder in the other countries of the region (Qatar, Kuwait, Bahrain). The impact of taking these stakes and the price paid are not material with regard to the Group's consolidated financial statements.

NOTE 3 ALTERNATIVE PERFORMANCE MEASURES

This note aims to present the main alternative performance measures ("APM") followed by Group management, and their reconciliation, where appropriate, with the aggregates of the IFRS consolidated financial statements.

3.1 Revenue growth at constant exchange rates

Revenue growth at constant exchange rates: calculated by applying, for each currency, the average exchange rates of the previous period to the revenue for the period. s

	H1 2024 at current exchange rates	H1 2024 at constant exchange rates	H1 2023	Change at current exchange rates	Change at constant exchange rates	Currency effect
Revenue (in millions of euros)	7,504	7,711	6,698	806	1,013	(207)
Change (in %)				12%	15%	(3)%

3.2 Recurring operating income

Recurring operating income: operating income exclusive of non‑recurring items with a significant impact that may affect understanding of the Group's economic performance. s

3.3 Net cash position and restated net cash position

• Net cash position: includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short‑term borrowings and financial liabilities on the liabilities side. Lease liabilities recognised in accordance with IFRS 16 are excluded from net cash position.
• s Restated net cash position: corresponds to net cash position plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities. s

Borrowings and financial liabilities on the balance sheet break down as follows:

In millions of euros	H1 2024	Financial year 2023
Bank overdrafts	1	1
Other financial liabilities	1	2
Put options granted to holders of non‑controlling interests	48	48
BORROWINGS AND FINANCIAL LIABILITIES ON THE BALANCE SHEET	50	51

The reconciliation of the net cash position and restated net cash position indicators with the consolidated balance sheet is presented below:

In millions of euros	H1 2024	Financial year 2023
Cash and cash equivalents	9,478	10,625
Bank overdrafts	(1)	(1)
NET CASH POSITION	9,477	10,625
Cash investments with maturity over three months from the date of acquisition	557	541
Financial liabilities	(1)	(2)
RESTATED NET CASH POSITION	10,033	11,164

3.4 Adjusted free cash flows

For management purposes, the Hermès Group sees all lease payments as items affecting operating activities. IFRS 16 considers fixed lease payments as the sum of the repayment of the principal portion of the lease liability and the payment of financial interests. Consequently, the Group follows the following APM:

Adjusted free cash flows: correspond to the cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS 16 (aggregates in the consolidated statement of cash flows). s

The reconciliation of this indicator with the Group's consolidated statement of cash flows presented in section 3.5 is as follows:

In millions of euros	H1 2024	H1 2023
Operating cash flows	2,829	2,615
+ Change in working capital requirements	(584)	(509)
- Operating investments	(319)	(249)
- Repayment of lease liabilities	(149)	(137)
ADJUSTED FREE CASH FLOWS	1,776	1,720

NOTE 4 SEGMENT INFORMATION

Given the Group's current structure, organised into geographical areas placed under the responsibility of operational Senior Executives in charge of applying the strategy defined by the Executive Committee (the principal operational decision‑maker), the Group has determined that the geographical areas constitute the operating segments with reference to the fundamental principle of IFRS 8.

Segment information is presented after eliminations and restatements.

Revenue by destination geographical area breaks down as follows:

	H1 2024
In millions of euros	France	Europe (excluding France)	Japan	Asia‑Pacific (excluding Japan)	Americas	Other (Middle East)	Unallocated	Total
Revenue	680	970	693	3,521	1,329	311	-	7,504
Recurring operating income	263	313	298	1,730	492	108	(55)	3,148
Recurring operating profitability	39%	32%	43%	49%	37%	35%	0%	42%
Other non‑recurring income and expenses	-	-	-	-	-	-	-	-
Operating income	263	313	298	1,730	492	108	(55)	3,148
Operating investments	165	31	12	42	40	2	26	319
Non‑current assets	1,339	546	202	1,011	904	249	2,045	6,296
Non‑current liabilities	288	282	86	573	624	30	266	2,149

"Unallocated" operating income includes expenses related to free share plans, unallocated central costs and internal billings.

All non‑current assets and liabilities included in the consolidated balance sheet are presented in the segment information, with the exception of deferred tax assets and liabilities. Non‑current assets

mainly comprise property, plant and equipment and intangible assets, right‑of‑use assets and financial assets. "Unallocated" non‑current assets mainly include financial investments (see note 9.2). Non‑current liabilities include lease liabilities.

	H1 2023
In millions of euros	France	Europe (excluding France)	Japan	Asia‑Pacific (excluding Japan)	Americas	Other (Middle East)	Unallocated	Total
Revenue	593	836	636	3,297	1,185	151	-	6,698
Recurring operating income	243	275	253	1,687	448	44	(5)	2,947
Recurring operating profitability	41%	33%	40%	51%	38%	29%	0%	44%
Other non‑recurring income and expenses	-	-	-	-	-	-	-	-
Operating income	243	275	253	1,687	448	44	(5)	2,947
Operating investments	135	23	4	35	29	-	24	249
Non‑current assets	1,010	431	189	864	891	34	1,737	5,156
Non‑current liabilities	260	301	80	430	627	-	316	2,013

NOTE 5 ITEMS RELATING TO OPERATING ACTIVITIES

5.1 Revenue by métier

In millions of euros	H1 2024	Mix	H1 2023	Change at current exchange rates	Change at constant exchange rates
Leather Goods & Saddlery	3,215	43%	2,780	16%	19%
Ready‑to‑wear and Accessories	2,162	29%	1,922	12%	15%
Silk and Textiles	436	6%	444	(2)%	1%
Other Hermès sectors	967	13%	836	16%	19%
Perfume and Beauty	259	3%	249	4%	5%
Watches	308	4%	317	(3)%	0%
Other products	157	2%	150	5%	7%
REVENUE	7,504	100%	6,698	12%	15%

5.2 Seasonality

The Group's activity has historically been balanced across the year. In 2023, 50% of the Group's revenue was generated during the first half of the year and 50% during the second half.

5.3 Sales and administrative expenses

In millions of euros	H1 2024	H1 2023
Communication	(272)	(259)
Other sales and administrative expenses	(1,410)	(1,226)
TOTAL	(1,682)	(1,485)

Other sales and administrative expenses include costs usually borne by the Company in the course of its operations and which are not related to production. These mainly include expenses for sales staff

and support functions, variable rent expenses and other administrative expenses (fees, insurance, travel, etc.).

5.4 Other income and expenses

In millions of euros Notes	H1 2024	H1 2023
Depreciation and amortisation of fixed assets	(175)	(155)
Amortisation of right‑of‑use assets	(164)	(137)
Sub‑total depreciation and amortisation	(339)	(293)
Impairment losses	(12)	(22)
Expenses related to free share plans and similar expenses 6.2	(93)	(59)
1 Net change in provisions	(14)	(20)
Other income and expenses	(10)	(9)
TOTAL	(467)	(403)

(1) Of which cost of pension plans and other long‑term benefits for €13 million in 2024 (€12 million in June 2023), see note 6.1.

Total depreciation and amortisation of fixed assets included in operating expenses ("Other income and expenses" and "Cost of sales") amounted to €205 million in the first half of 2024, compared with €183 million in the first half of 2023.

Total amortisation of right‑of‑use assets included in operating expenses ("Other income and expenses" and "Cost of sales") amounted to €165 million in the first half of 2024, compared with €139 million in the first half of 2023.

5.5 Working capital requirements

5.5.1 INVENTORIES AND WORK‑IN‑PROGRESS

In millions of euros	30/06/2024	31/12/2023
Retail, intermediate and finished goods	2,427	1,972
Raw materials and work‑in‑progress	1,368	1,299
Gross values	3,795	3,271
impairment	(1,015)	(856)
TOTAL	2,780	2,414
Net impairment gain/(loss) on retail, intermediate and finished goods inventories	(120)	(60)
Net impairment gain/(loss) on raw material and work‑in‑progress	(27)	(9)

No inventories were pledged as collateral to secure financial liabilities.

5.5.2 CHANGE IN WORKING CAPITAL REQUIREMENTS

In millions of euros	30/06/2024	31/12/2023
Inventories and work‑in‑progress	(327)	(662)
Trade and other receivables	(79)	(122)
Trade and other payables	(78)	42
Other receivables and payables	(101)	(53)
TOTAL	(584)	(794)

The "Other receivables and payables" item of the change in working capital requirement mainly includes tax and employee receivables and payables.

NOTE 6 EMPLOYEE BENEFITS

6.1 Post‑employment and other employee benefit obligations

6.1.1 INFORMATION BY TYPE OF PLAN

The provision shown in the balance sheet includes post‑employment defined‑benefit plans and other long‑term benefits:

In millions of euros	30/06/2024	31/12/2023
Defined‑benefit plans	156	151
Other long‑term benefits	19	16
PROVISIONS AT END OF PERIOD	176	167

6.1.2 RECONCILIATION OF RETIREMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS

In millions of euros	H1 2024	H1 2023
Provisions as at 1 January	167	196
Expense for the financial year	13	12
Benefits/contributions paid	(3)	(2)
Actuarial gains and losses recognised in other comprehensive income	-	-
Foreign currency adjustments	(4)	(6)
Other movements	3	0
PROVISIONS AS AT 30 JUNE	176	201

6.2 Share‑based payments

The total expense incurred in the first half of 2024 for all free share allocation plans (including social security contributions) was €93 million, compared with €59 million in the first half of 2023.

As a reminder, a free share allocation plan was decided by the Executive Management on 15 June 2023. The expense assumed under this plan impacts the first half of 2024 in full, compared to 15 days in the first half of 2023.

NOTE 7 GOODWILL, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS, AND LEASES

7.1 Goodwill

In the first half of 2024, Hermès acquired a majority interest in the retail activities located in the United Arab Emirates (see note 2). The purchase price allocation is provisional and resulted in the recognition

of goodwill of €164 million. The amount of goodwill shown in the consolidated balance sheet was €241 million as at 30 June 2024.

7.2 Intangible assets and property, plant and equipment

7.2.1 INTANGIBLE ASSETS

			Exchange rate		30/06/2024
674	35	(1)	(1)	9	717
140	1	(0)	(1)	1	141
26	25	-	(0)	(16)	35
839	62	(1)	(2)	(6)	892
480	49	(1)	(1)	0	528
113	3	(0)	(0)	(0)	116
21	0	-	(0)	(0)	21
614	53	(1)	(1)	(0)	664
225	9	0	(0)	(5)	228
	31/12/2023	Increases	Decreases	impact	Other

7.2.2 PROPERTY, PLANT AND EQUIPMENT

In millions of euros	31/12/2023	Increases	Decreases	Exchange rate impact	Other	30/06/2024
Land	348	0	-	(7)	2	343
Buildings	1,318	17	(3)	(9)	79	1,401
Industrial machinery, plant and equipment	526	17	(1)	(1)	20	560
Store fixtures and furnishings	1,551	22	(19)	15	83	1,652
Other property, plant and equipment	631	16	(10)	(1)	20	657
Fixed assets under construction	385	186	-	2	(165)	408
TOTAL GROSS VALUES	4,759	257	(33)	(1)	39	5,021
Depreciation of buildings	549	24	(2)	(7)	1	565
Depreciation of machinery, plant, and equipment	315	19	(1)	(1)	3	334
Depreciation of store fixtures and furnishings	888	83	(19)	7	13	972
Depreciation of other property, plant and equipment	378	27	(9)	1	1	397
Impairment losses	290	12	(1)	0	(2)	299
TOTAL DEPRECIATION AND IMPAIRMENT	2,419	164	(33)	0	16	2,566
TOTAL NET VALUES	2,340	93	(0)	(1)	23	2,455

Investments made during the first half of 2024 mainly include the opening and renovation of stores and capital expenditure to expand production capacity.

Impairment losses mainly relate to production lines and stores deemed not to be sufficiently profitable. It is noted that the cash‑generating units on which impairment losses have been recognised are not individually material when compared with the Group's overall business.

7.3 Leases

7.3.1 RIGHT‑OF‑USE ASSETS

The breakdown of right‑of‑use assets by nature of the underlying asset is as follows:

In millions of euros	Net at 31/12/2023	Gross	Amortisation and impairment	Net at 30/06/2024
Stores	1,266	2,337	1,017	1,320
Offices and other	450	720	220	501
TOTAL	1,716	3,058	1,237	1,821

The change in right‑of‑use assets during the half‑year is as follows:

In millions of euros

In millions of euros	Stores	Offices and other	2024
Net amount of right‑of‑use assets as at 1 January	1,266	450	1,716
Implementation of new leases and revisions	120	89	208
Amortisation and impairment	(123)	(42)	(165)
Expiry and early termination of leases	(1)	(1)	(2)
Exchange rate impact	20	3	23
Other movements and reclassifications	39	1	40
NET AMOUNT OF RIGHT‑OF‑USE ASSETS AS AT 30 JUNE	1,320	501	1,821

7.3.2 LEASE LIABILITIES

In millions of euros	2024
Lease liabilities as at 1 January	2,009
Implementation of new leases and revisions	208
Expiry and early termination of leases	(3)
Repayments	(149)
Exchange rate impact	31
Other movements and reclassifications	35
LEASE LIABILITIES AS AT 30 JUNE	2,131

NOTE 8 INVESTMENTS IN ASSOCIATES

In millions of euros	H1 2024	H1 2023
Investments in associates as at 1 January	200	54
Impact of consolidation scope changes	0	5
Net income from associates	16	43
Dividends paid	(4)	(14)
Exchange rate impact	(0)	(1)
Other	(2)	(28)
INVESTMENTS IN ASSOCIATES AS AT 30 JUNE	211	58

The "Other" line includes, where appropriate, the reclassification to "Provisions" of the Group share in the losses of associates, when this exceeds the carrying amount of the investments concerned.

NOTE 9 FINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION

9.1 Net financial income

In millions of euros	H1 2024	H1 2023
Income from cash and cash equivalents	206	132
Gross borrowing cost	3	3
s of which net income/(loss) on interest and exchange rate hedging instruments	3	3
Net borrowing cost	209	135
Interest expense on lease liabilities	(29)	(25)
Other financial income and expenses	(40)	(35)
s of which cost of cash flow hedges	(53)	(49)
s of which ineffective portion of cash flow hedges	(2)	2
TOTAL	141	75

9.2 Financial assets

In millions of euros	31/12/2023	Increases	Decreases	Exchange rate impact	Other	30/06/2024
Financial investments and accrued interest	1,088	15	(1)	-	33	1,134
Liquidity contract	18	1	-	-	-	20
Other financial assets	122	17	(0)	(0)	(0)	138
TOTAL GROSS VALUES	1,229	33	(1)	(0)	33	1,292
Impairment	88	-	(0)	(0)	-	88
TOTAL NET VALUES	1,141	33	(1)	(0)	33	1,205

9.3 Net cash position

The Hermès Group's policy is to maintain a positive treasury position and to have cash available in order to be able to finance its growth strategy independently.

Hermès International's treasury department directly manages the Group's cash surpluses and needs. It follows a prudent policy aimed at avoiding any risk of capital loss and maintaining a satisfactory liquidity position.

Cash surpluses are invested mainly in money‑market mutual funds, repos and cash equivalents (term accounts, term deposits) with a sensitivity of less than 0.5% and a recommended investment period of less than three months.

Net cash position is distributed as follows:

In millions of euros	30/06/2024	31/12/2023
Financial assets	10,035	11,167
Liquidities	1,751	1,386
Marketable securities	7,727	9,240
Cash investments with maturity at outset over three months	557	541
1 Financial liabilities	2	2
Medium and long‑term financial liabilities	1	2
Bank overdrafts	1	1
RESTATED NET CASH POSITION	10,033	11,164

(1) Excluding commitments to buy out non‑controlling interests.

The gains and losses generated through disposal of marketable securities during the half‑year and recorded through profit or loss amounted to €48 million. Unrealised gains or losses on the outstanding portfolio as at 30 June 2024 stood at €16 million.

NOTE 10 MANAGEMENT OF MARKET RISKS AND DERIVATIVES

The Hermès Group's results are exposed to the risks and uncertainties set out in the 2023 universal registration document. The assessment of these risks did not change during the first half of 2024 and no new

risks have been identified at the date of publication of this report. The Group's foreign exchange policy is based on the management principles described in the 2023 universal registration document.

The net position of financial instruments on the balance sheet is as follows:

In millions of euros	30/06/2024	31/12/2023
Net financial derivative assets	199	188
Net financial derivative liabilities	(80)	(45)
NET POSITION OF FINANCIAL DERIVATIVES	119	143

As at 30 June 2024, the valuation methods for financial instruments were identical to those used as at 31 December 2023.

NOTE 11 EQUITY – EARNINGS PER SHARE

11.1 Share capital

As at 30 June 2024, Hermès International's share capital consisted of 105,569,412 fully paid‑up shares with a par value of €0.51 each, of which 838,858 treasury shares.

11.2 Capital management

The Group's objectives, policies and procedures in the area of capital management are in keeping with sound management principles designed to ensure that operations are well‑balanced financially and to minimise the use of debt. As its surplus cash position gives it some flexibility, the Group does not use prudential ratios such as "return on equity" in its capital management. During the current financial year, the Group made no change in its capital management policy and objectives.

11.3 Treasury shares

Treasury shares are recorded at acquisition cost and deducted from equity. Gains or losses on the disposal of these shares are recognised directly in equity, with no impact on profit or loss in the financial year.

During the first half of 2024, the following treasury share movements occurred:

• s sale of 65 shares as part of the liquidity contract;
• delivery of 192 free shares reserved to Hermès Group employees under employee shareholding plans. s

It is specified that no shares are reserved for issuance under options or agreements to sell shares.

11.4 Dividends

The General Meeting called to approve the financial statements for the year ended 31 December 2023 approved, on 30 April 2024, the payment of an ordinary dividend of €15.00 per share for the financial year and the payment of an exceptional dividend of €10.00 per share.

Taking into account the interim cash dividend of €3.50 per share paid on 15 February 2024, a balance of €21.50 was paid in cash on 6 May 2024.

The ordinary and exceptional dividends paid in 2024 thus amounted to €2,618 million.

11.5 Income and expenses recognised in comprehensive income

Movements in derivatives (hedges of future cash flows in foreign currencies) and financial investments break down as follows (after tax):

In millions of euros	H1 2024	H1 2023
Revaluation adjustments as at 1 January	553	546
Amount transferred to equity in the financial year in respect of derivatives	(69)	(23)
Revaluation of derivatives	34	123
Revaluation of financial investments	30	-
Other deferred foreign exchange gains/(losses) recognised in comprehensive income	17	(28)
REVALUATION ADJUSTMENTS AS AT 30 JUNE	565	617

11.6 Earnings per share

The calculation and reconciliation of basic earnings per share and diluted earnings per share is as follows:

	H1 2024	H1 2023
Numerator (in millions of euros)
Net income attributable to owners of the parent	2,368	2,226
Denominator (in number of shares)
Average number of shares outstanding during the period	105,569,412	105,569,412
Average number of treasury shares during the period	(816,978)	(1,030,147)
Average number of shares before dilution	104,752,435	104,539,265
BASIC EARNINGS PER SHARE (in euros)	22.61	21.29
Dilutive effect of free share allocation plans	128,247	158,649
Average number of shares after dilution	104,880,681	104,697,914
DILUTED EARNINGS PER SHARE (in euros)	22.58	21.26
Average share price (in euros)	€2,184	€1,825

NOTE 12 PROVISIONS FOR RISKS AND EXPENSES AND OFF‑BALANCE SHEET COMMITMENTS

12.1 Provisions

In millions of euros	31/12/2023	Allocations	Reversals	Exchange rate impact	Other and reclassifications	30/06/2024
Current provisions	134	7	(13)	(1)	(1)	126
Non‑current provisions	31	0	(4)	(0)	5	33
TOTAL	166	7	(17)	(1)	4	159

Current provisions concern provisions for risks, disputes and litigation, as well as provisions to cover the share of the negative net position of associates (see note 8). Non‑current provisions mainly include provisions for restoration.

Other movements correspond essentially to provisions for restoration costs, established or revised during the financial year in return for the right‑of‑use asset, which is amortised over the term of the leases (see note 7.3).

Reversals used amounted to €11 million.

12.2 Off‑balance sheet commitments

There was no material change in off‑balance sheet commitments during the half‑year.

NOTE 13 RELATED‑PARTY TRANSACTIONS

Relations between the Hermès Group and related companies during the first half of 2024 were comparable with those of financial year 2023. Specifically, no unusual transaction, by its nature or amount, was carried out during the period.

NOTE 14 EVENTS AFTER THE REPORTING PERIOD

No significant events have occurred since the closing date as at 30 June 2024.

STATUTORY AUDITORS' REVIEW REPORT ON THE HALF‑YEAR FINANCIAL INFORMATION

This is a free translation into English of the statutory auditors' review report on the half‑yearly financial information issued in French and is provided solely for the convenience of English‑speaking users. This report includes information relating to the specific verification of information given in the Group's half‑yearly management report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

For the period from January 1, 2024 to June 30, 2024

To the Shareholders,

In compliance with the assignment entrusted to us by General Meeting and in accordance with the requirements of article L. 451‑1‑2 III of the French Monetary and Financial Code ("Code monétaire et financier"), we hereby report to you on:

• the review of the accompanying condensed half‑yearly consolidated financial statements of Hermès International, for the period from January 1, 2024 to June 30, 2024 ; s
• s the verification of the information presented in the half‑yearly management report.

These condensed half‑yearly consolidated financial statements are the responsibility of the Executive Management. Our role is to express a conclusion on these financial statements based on our review.

1. CONCLUSION ON THE FINANCIAL STATEMENTS

We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half‑yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 standard of the IFRSs as adopted by the European Union applicable to interim financial information.

2. SPECIFIC VERIFICATION

We have also verified the information presented in the half‑yearly management report on the condensed half‑yearly consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the condensed half‑yearly consolidated financial statements.

Neuilly‑sur‑Seine, July 25, 2024

The Statutory Auditors

Grant Thornton Audit Christophe BONTE

PricewaterhouseCoopers Audit Amélie WATTEL

STATUTORY AUDITORS' REVIEW REPORT ON THE HALF‑YEAR FINANCIAL INFORMATION

STATEMENT BY THE PERSONS RESPONSIBLE FOR THE HALF‑YEAR FINANCIAL REPORT

We hereby certify that, to the best of our knowledge, the condensed interim consolidated financial statements were prepared in accordance with the applicable accounting standards, and that they give a true and fair view of the assets, financial position and results of the Company and of all companies within its scope of consolidation, and that the half‑year business report on page 5 presents a fair view of the significant events occurring during the first six months of the financial year, their impact on the financial statements, the main related‑party transactions, as well as a description of the main risks and uncertainties for the remaining six months of the financial year.

Paris, 25 July 2024 Executive Management

Axel Dumas Henri‑Louis Bauer

Representative of Émile Hermès SAS

Hermès International

Société en commandite par actions (partnership limited by shares) with share capital of €53,840,400.12 Paris Trade and Company Register (RCS) no. 572076396 Registered office: 24, rue du Faubourg Saint‑Honoré – 75008 Paris

Tel.: +33 (0)1 40 17 49 20 A Hermès publication

© Hermès, Paris 2024

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