Drawn together in a wonderful shared adventure

2025 was a pivotal year: it saw the end of the post-Covid period, an awareness of the acceleration of technology, and the establishment of new economic and political power dynamics. Is this the end of a cycle and the start of a new era?

Together, we navigated a turbulent environment shaken by major geopolitical crises without losing our way. I would like to thank each and every employee for rising to the challenge in a complex context.

Drawn to the enduring vitality of our craft – creating and offering objects made from beautiful materials and expressing our exceptional know-how – we can be proud of our strong results. They both confirm the desirability of our collections and represent an endorsement of our artisanal model based on sustainable and responsible growth.

Faced with uncertainty, we are choosing to maintain our course, redoubling our vigilance, strengthened by our employees’ commitment and the loyalty of our customers all over the world.

It is in this mindset that we have maintained our schedule of store openings. For the upstream division, we can cite the laying of the foundation stones for the Maroquinerie de Charleville-Mézières leather goods workshop in Ardennes, the Manufacture Beyrand in Haute-Vienne for tableware, and the extension of our watchmaking hub in Le Noirmont, Switzerland. We can also cite the opening of our twenty-fourth leather goods workshop, in L’Isle-d’Espagnac, in Charente. Reinforcing the vertical integration of the group goes hand in hand with extending our network of Écoles Hermès des savoir-faire, and we are pleased to be able to award national qualifications (CAP and CQP) in leatherworking.

Store openings set the pace in our distribution network, which continues to grow in size and beauty, with Central Embassy in Bangkok (Thailand), Florence in Italy and Taichung in Taiwan marking the first half-year, while Scottsdale and Nashville in the United States, Lugano in Switzerland, Knokke-le-Zoute in Belgium and Changsha in China brought sparkle to the end of the year. 

We are proud of our spaces, each of which is designed to be a place of life and wonderment as well as culture. We will continue in 2026 with some exciting new ones – in Hanoi, Beijing, London, Williamsburg and Geneva – to name but a few.

But these places would lack soul and colour without the abundance of our collections, amply demonstrated in a year marked by the launch of Silky Lipstick Shine and Barénia Intense, the elevation of the Kelly jewellery line, the unveiling of the centenary of women’s ready-to-wear, the energy of the men’s runway shows, and the presentation of the Hermès en contrepoint dinner service. The teams in every métier showed boldness and innovation as they explored new materials, new techniques and new uses. 

We have also maintained our responsible investments, ensuring that our value chain is virtuous both for the group and for all their environmental and human ecosystems. In this regard, we are very proud to have received the Grand Prix Emploi France, awarded by Humpact(1), for the fifth consecutive year, and to have been ranked top in the CAC Large 60 category among CAC 40 and Next 20 companies at the sixteenth Transparency Awards. Hermès also appears in the A-list of the CDP(2), scoring A for Climate, A- for Water Security and A for Forests. 

Finally, let us celebrate the work of the Fondation d’entreprise Hermès, which runs large-scale, transformative projects, whether with the French Ministry of Education for the tenth and fifth consecutive year respectively for the Manufacto and Manuterra educational programmes, with artists in support of the performing arts, or with scientists for initiatives that seek to preserve biodiversity. 

We therefore enter 2026 with conviction, encouraged by our theme for the year, Venture beyond, this irrepressible invitation to set sail and discover new horizons, driven by our human values, anchored in our heritage, guided by our curiosity and strengthened by our crew. Because it is their commitment and enthusiasm that make this wonderful shared adventure so rich, and we thank them warmly.

The group’s consolidated revenue amounted to €16 billion in 2025, up 9% at constant exchange rates and 5.5% at current exchange rates compared to 2024. Recurring operating income amounted to €6.6 billion (41% of sales), up 7%. Net profit (group share) reached €4.5 billion, up 5.5%, excluding the exceptional contribution on the profits of large companies in France, at the same pace as sales. 

In the fourth quarter, sales reached €4.1 billion, increasing by 10% at constant exchange rates, as in the previous quarter. Sales growth was solid across all the geographical areas against a particularly high comparison basis. Europe, Japan, the Americas and the Middle East recorded double-digit growth.

Axel Dumas, Executive Chairman of Hermès, said: “The Hermès model based on an exclusive and qualitative network, as well as strong vertical integration, has once again proven successful. This distinctive strategy has enabled the house to achieve robust revenue growth and strong performance. I warmly thank the Hermès teams who share our commitment to uncompromising quality as well as our customers for their loyalty. In an uncertain environment, Hermès is moving into 2026 with confidence, underpinned by its creativity and exceptional savoir-faire.”

(at constant exchange rates unless otherwise indicated)

At the end of December 2025, all the geographical areas posted strong growth. The distribution network continued its qualitative expansion, with store openings and extensions.

Asia excluding Japan (+5%) delivered a solid performance across all countries in the region, all of which experienced growth. The fourth quarter grew by 8%. In June, the Four Seasons Macao store reopened after renovation and extension work. In Korea, two reopenings took place in Seoul with the Galleria store in August and the Shinsegae store in October. In Thailand, the IconSiam store in Bangkok reopened at the end of November after renovation and expansion. Finally, in China, the expanded Changsha IFS store reopened in December.

Japan (+14%) continued its strong momentum, driven by the loyalty of local clients and its exclusive distribution network. The traveling event Mystery at the Grooms’, an immersive experience around Hermès objects, was staged in Tokyo in November.

The Americas (+12%) completed an excellent year. The new stores in Scottsdale, Arizona, and Nashville, Tennessee, were inaugurated in September and October respectively. In Mexico City, the Molière store reopened in early October after being renovated. In Canada, an event showcasing the creations of petit h was staged at the Vancouver store in November.

Europe excluding France (+11%) and France (+9%) posted solid growth, supported by the loyalty of local customers and dynamic tourist flows. The Florence store in Italy, renovated and expanded, reopened in February, followed by the reopening of the Knokke store in Belgium in November.

The Other area (+15%), which mainly includes the Middle East, recorded strong growth, particularly in the United Arab Emirates.

The Hermès adventure began in 1837 when the harness-maker Thierry Hermès opened a workshop in rue Basse-du-Rempart in Paris. Gradually, generation after generation, the House followed a dual thread – on the one hand the painstaking work of the craftspeople in his workshop, and on the other the active lifestyles of its customers. Carried by an enduring spirit of freedom and creativity, Hermès remains highly sensitive and attentive to the changing nature and needs of society.

In 1880, Charles-Émile Hermès, the founder’s son, moved the workshops to 24, rue du Faubourg Saint-Honoré, and set up an adjoining store. At this now-emblematic address, harnesses and saddles were made to measure. The business was already standing out for the excellence of its creations.

During the interwar period, lifestyles changed and the House broke new ground under the management of Thierry’s grandson, Émile Hermès. He decisively influenced the family firm’s destiny when, while travelling in Canada, he discovered the opening and closing system of an automobile hood. In 1922 he obtained exclusive rights to this American “universal fastener” – known today as the zip – which was used extensively in the House’s luggage and other designs. Under the impetus of Émile Hermès, the House opened up to other métiers, while retaining a close connection with the equestrian world, drawing on its mastery of raw materials and its artisanal culture to create its first ready-to-wear collections. In 1937, the famous silk scarf was born with the Jeu des omnibus et dames blanches design, the first in a long series.

Robert Dumas – one of Émile Hermès’ sons-in-law, who took the helm of the House in 1951 – was a regular visitor to the workshops and designed objects whose details (buckles, fasteners, saddle nails and anchor chains) exuded an elegance that in no way diminished their practicality. Hermès objects stand out for their noble materials, their mastery of savoir-faire, and their bold creativity, stimulated by the House’s keen vision of the world. The Silk métier now invites artists to create unique designs.

The Executive Management ensures the management of Hermès International. The role of Executive Chairman is to manage the Group and act in its general interest, within the scope of the corporate purpose and subject to those powers expressly granted by law or by the Articles of Association to the Supervisory Board, to the Active Partner and to Shareholders’ General Meetings.

The Executive Chairmen’s roles are distributed as follows: Axel Dumas is in charge of strategy and operational management, and Émile Hermès SAS, through its Executive Management Board, is responsible for vision and strategic priority areas.

The Executive Chairmen are supported in their management of the Group by the Executive Committee. This consists of Executive Vice-Presidents, each of whom has well-defined areas of responsibility. The role of the Executive Committee is to oversee the Group’s strategic and operational management. Its composition reflects the Group’s main areas of expertise.

The Operations Committee, which reports to the Executive Management, is made up of certain members of the Executive Committee and the Senior Executives of the main métiers and geographical areas, as well as the sales and support functions of the Group.

Its duties are:

• ◆to involve Senior Executives in the Group’s major issues and strategic orientations;
• ◆to promote communication, sharing and reasonable exchanges amongst its members in their area of responsibility;
• ◆to enable the Executive Committee to take certain decisions.

Detailed information on the administrative and management bodies is provided in chapter 2 “Corporate governance”, § 2.2 and § 2.3.

Hermès is an independent company backed by family shareholders. Its strategy is based on three pillars: creation, craftsmanship and an exclusive, balanced distribution network.

Since 1837, the Group has remained true to its values of freedom, demanding craftsmanship savoir-faire, authenticity and responsible growth. Its integrated craftsmanship business model places quality and sustainability at the centre.

In 2025, the House maintained its vision, preserving its major balances, committed more than ever to respecting its values.

Hermès creates and manufactures quality objects designed to last, to be passed on from one generation to the next, and to be repaired. This approach requires these issues to be taken into account at every stage, from design to sales.

Hermès’ strategy is based on creative freedom. Each year, a theme inspires creators and Artistic Directors. Driven by a history spanning nearly 200 years, during which the House has continued to develop with audacity and ingenuity, Hermès paid homage to the theme Drawn to craft in 2025. From saddle stitching to lines, drawing is the start of everything at Hermès. High standards in design and manufacturing encourage the creation of objects that aim to surprise and amaze customers. This creativity, revolving around traditional savoir-faire, is coupled with innovative processes to revisit timeless models and create exceptional pieces, without departing from Hermès’ trademark humour and imaginative flair. The unbridled creativity flourishes in all métiers, as reflected in the numerous scarf designs printed every year. It is then expressed through over 50,000 references, developed around a unique identity and a style blending exceptional quality, innovation, surprise, elegance and simplicity. 

Hermès’ mission is to create unique and original objects, allowing the time necessary for their careful creation, so that they gracefully accompany the needs and dreams of its customers. Its goal is the pursuit of excellence and uncompromising quality, in each of its métiers and services.

The main companies consolidated as at 31 December 2025 (distribution subsidiaries and divisional holding companies), are detailed in chapter 5 “Consolidated financial statements”, § 5.6, Note 17.

Leather Goods & Saddlery, Hermès’ original métier, groups together bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing.

The Leather Goods & Saddlery métier represents 44% of consolidated sales. In 2025, it generated revenue of €7,070 million.

Hermès leather goods and saddlery objects are the result of a very special alchemy, based on a constant dialogue between designers and craftspeople, and the use of the finest materials, selected with the greatest care. The craftspeople use traditional savoir-faire, passed down from generation to generation. This patient daily dialogue with leather, crafted and fashioned by hand, gives these unique objects a distinctive additional measure of personality.

Manufacturing is carried out in 10 centres of expertise that bring together production units, workshops and training centres in Paris, Pantin and six regions of France. It also relies on a network of long-standing French partners, chosen with the greatest care and respect for Hermès' singular craftsmanship savoir-faire.

To meet continued strong demand, Hermès is expanding its network of manufacturing sites each year in order to strengthen its production divisions. Thus, a new leather goods workshop was inaugurated in September 2025 in L'Isle-d'Espagnac (Charente). Hermès also continued preparing for the construction of three future production units, which are scheduled to open in 2026 in Loupes (Gironde), 2027 in Charleville-Mézières (Ardennes) and 2028 in Colombelle (Calvados), and announced the opening of a new site in Les Andelys (Eure) by 2030. Each new establishment is set up in close collaboration with local stakeholders, administrative and economic development bodies. In this way, Hermès reaffirms its commitment to regions with a strong manufacturing savoir-faire and its will to provide high-quality jobs. Proud to contribute to the expansion of sectors of excellence in France, the House maintains long-term relationships with its suppliers and partners, with loyalty and high expectations, to maintain the unique qualities of a Hermès object: exceptional materials, training in savoir-faire and dedicated workshops.

Hermès also places great importance on constantly perfecting the skills and savoir-faire of its craftspeople through a range of training and professional qualification programmes. These programmes are delivered within the École Hermès des Savoir-Faire, which is present in each of the 10 production divisions.

The House's equestrian roots remain a powerful source of inspiration and are the influence behind new women's styles this year. Thus, the Tablier Sellier bag, inspired by the leather apron worn by saddler craftspeople, combines leather and canvas for a new everyday bag. The Arçon line, whose curves evoke an equestrian saddle, is expanding with a new refined format, the Arçon Slim bag. Lastly, the Collier d’attelage bag takes up the curves, buckles and rings of the eponymous piece of equipment.

The silversmith's lexicon is expanded with ingenious new clasps and distinctive metal pieces. Likewise, the signature metal clasp of the Médor Clou bag, a brand-new version of the Médor bag, inspired by the dog collar storyline in Fashion Accessories. This line also welcomes a new bucket format, the So Médor bag. Lastly, the Faubourg Express line, a new style with an elongated format that echoes travel bags, highlights an elegant ultra-thin lock on two everyday formats.

2025 marks the return to the collections of the emblematic Plume bag, first seen at the end of the 1960s, in its two sizes, 28 and mini. For its part, the Herbag canvas and leather line, created in 1998, has been extended to offer a new mini size, the Herbag 20 bag.

The quest for the exceptional continues to be voiced through the implementation of numerous elements of savoir-faire and new materials that push the limits of creation, in an Arts & Crafts spirit. The Birkin à l'Envers bag offers a new look at the functionality of this emblematic large tote bag and reveals the beauty of its interior, in an exacting canvas and leather construction. Hand-painting on leather is magnified on the Kelly 28 bag with the delicate drawing of a jaguar "Dans la jungle" and expresses a certain fantasy on the latest part of the Birkin Faubourg story in an "En fête" version, signed with its disco ball padlock.

The finesse of the hand embroidery, combining cross stitching and straight stitching, highlights the contours of the leather patches that adorn the Kelly Elan and Kelly 25 Collage bags, evoking the stamp patterns of various silk scarves. Finally, horsehair finds a new voice in the collections: it adorns the Mini Médor bag in the shape of a diabolo, a nod to a dog collar from the archives, as well as a new Hermès Corricolo tote bag, in a tiered fringe construction that echoes charleston dresses.

The men's collections confirm their dynamism and bring in new styles designed to meet contemporary needs. Thus, the emblematic Bolide line introduces a new essential to the men's wardrobe, the Bolide Messenger. Also in tune with the times, the Mousqueton story repurposes the harness part to make it an ingenious clasp on two everyday bags, the Seau Mousqueton and On-Body Mousqueton. The Chaîne d'ancre chainlink forms the adjustment buckle on the strap of an all-leather tote bag, the Cabas Ancrage, while the Étrivière buckle, emblematic of the men's universe, is the signature of an all-leather tote, rich in savoir-faire, with a unique construction.

The Haut à courroies bag unveils exceptional new Arts & Crafts versions, where daring constructions and savoir-faire are expressed: reflecting its original use as a saddle bag, the HAC en Selle deconstructs the Cavale II saddle and reveals its various stitched appliqués over the entire body of the bag. Echoing the theme of the year, the lines of the flap and straps of the Haut à Courroies are drawn on the leather of the HAC à relier in the form of printed and embossed dots to be connected.

Lastly, the theme of drawing also inspires a singular object, a nod to artists and rich in savoir-faire, the cylindrical Sac à dessin.

The world of travel continues to expand in 2025. The R.M.S. carry-on case is adorned with a new print, "Dane des chevaux", in which three proud mounts dance in a graceful circle. It also introduces a more generous format, the R.M.S. Business Cabine.

Lastly, the emblematic Garden line offers a 41 format in the new Neo Garden style, ideal for short getaways or to place on top of the R.M.S. case, as an addition.

Attentive to changing uses, the small leather goods collections are continuing to grow and transform in order to provide new functionalities and styles in keeping with the times.

The To Go family of hands-free objects with their bold silhouettes sports new contemporary and elegant identities: the Charnière To Go picks up the clasp of the eponymous bracelet, the Zipengo line welcomes a To Go once again finished off with the Chaîne d'ancre chainlink as a pull tab, while the 1957 To Go is inspired by the Serviette 57 document case to create a resolutely masculine object.

A land of fantasy, small leather goods is also developing its range of bag accessories with the Robéo, which cloaks the Rodéo in a colourful new wardrobe, and the Budy Apic, which adorns the miniature dog's coat with notched and coloured leather lace.

To celebrate the annual theme, the In the Pocket line of unusual objects offers a colouring pencil case. Lastly, a book for the youngest, De fil en aiguille tells the story of Hermès craftsmanship through the encounter between a craftsman and a little dog.

Since its founding, Hermès has never ceased to explore and create materials that can enhance the aesthetics, functionality and sustainability of its objects, while continuing to respond to the desires and uses of the present time.

Appearing in 2024 adorned with a gold finish, the Chamkilight goatskin adopts a new silver finish in 2025, obtained thanks to the perfect mastery of a new generation of metallic pigments that broadens the luminous palette of this delicate-grained material. The Chamkilight Silver goatskin gives a singular shine to the Kelly Mini and Constance Mini bags, as well as the Kelly To Go and Constance Slim bags.

A new calfskin has also entered the collection, the Chéri II calfskin. Smooth, supple and meltingly soft, this beautiful mellow leather could be described as combining the strength of calfskin with the delicacy of lambskin. With a quite intense shine, it thrives on bright colours, revealing all their subtleties. It offers a unique touch and a new dimension to the Kelly and 24/24 bags.

New exceptional finishes also complete the palette of precious hides. Like the Chantilly crocodile, a leather of absolute purity, whose white is extraordinary in more ways than one since it is obtained without any pigments or dyes. In a matte finish, it adorns the emblematic Kelly and Birkin. Alongside this immaculate finish, a gradual play on colours, evoking the light of the rising sun, is worked on the matte crocodile hide. The Sunrise finish, available in three shades, Lemon Yellow, Kraft and Chestnut on the Kelly Elan and Constance Mini bags, offers a subtle dip-dye effect and gives the sensation of seeing the colour come to life as the gaze focuses.

Lastly, the materials pay homage to Hermès' talent as a colourist, whose palette is enhanced with new timeless or seasonal shades. Gris Pantin, a medium grey with hints of blue, is revealed on the Togo, Epsom and Swift calfskins. Bleu Tie, a luminous blue saturated with red, deepens the range of Hermès blues. Baie Brun, a dark brown with a slight note of red, adds depth to the emblematic calfskins. As for the soft and orange-tinged Jaune Mango, it adds a touch of light and sunshine to the collections.

Hermès continues to affirm its commitment to its first customer, the horse, up to the highest sporting level, through the transmission of its excellence in savoir-faire, the search for exceptional materials, innovation for the well-being of the horse and the daily support of the House's partner riders and their mounts.

In 2025, the Hermès saddle was hoisted onto the most prestigious podiums in the world, adding new titles to its list of achievements, with Ben Maher and Dallas Vegas Batilly in the Hermès Vivace saddle as well as Simon Delestre and Caiman Jolly Jumper in the Hermès Cavale saddle, winners at the Saut Hermès under the dome of the Grand Palais.

2025 also marks the arrival of Jeanne Sadran, a talented young French rider, in the team of partners, as well as the celebration of 10 years of partnership with Jessica von Bredow-Werndl, a German dressage rider who contributed to the development of the Hermès Arpège saddle.

The collections have been expanded with new functional clothing designed for equestrianism, the Taiga down jacket and the Connemara parka. In addition, a step stool and a treat box complete the world of the stable and contribute to keeping the savoir-faire of the cooperage alive.

Lastly, to pamper the rider's second best friend, the collection of canine accessories offers a new Punch bowl, recognisable by its Médor studs and its hand-polished mirror-finish.

In 2025, Hermès continued to assert its presence in Europe. Italy was in the spotlight, with the February inauguration of the new store in Florence, where the House has been established since 1991. Now located in a 16th century Florentine palazzo, this store has a remarkable Renaissance façade at the corner of via degli Strozzi and via dei Vecchietti. Inside, various lounges follow one after another in a hushed and refined atmosphere, with decoration that pays tribute to the rich heritage and art of the Tuscan city.

Austria welcomed a new store in the historic centre of Kitzbühel in October. This store is Hermès' third location in the country, following Vienna and Salzburg.

In November, Hermès also renewed its loyalty to the Flemish seaside resort of Knokke-le-Zoute, in Belgium, with the expansion and reopening of its store. Relocated opposite its historic address on the Kustlaan, where it has been since 1996, the new space is spread over two levels behind an elegant half-timbered façade and bow windows, typical of the coastal cottages. The interior is decorated in natural materials and soft shades reminiscent of the North Sea beaches.

Also in November, the store in Lugano, Switzerland, reopened after being renovated and expanded.

In France, the year was eventful. Starting with the mid-January launch in Paris of a new dinner service, Hermès en Contrepoint. The presentation to the press was held within the walls of the Conservatoire national des arts et métiers, a place synonymous with excellence in savoir-faire. Then the Palais d'Iéna once again provided its majestic setting for the fall-winter 2025 Men's ready-to-wear collection show.

Early March brought the fall-winter 2025 Women's ready-to-wear collection show at the Garde Républicaine. Then, from 21 to 23 March, the Saut Hermès returned to its original setting, the glass conservatory of the Grand Palais, for a 15th colourful edition. Once again, this international CSI 5* competition brought together the world's elite in the discipline and saw Hermès' partner riders shine. Over these three days celebrating the horse, spectators were enthralled as the sporting events unfolded and they were able to admire the dexterity and quest for excellence of the House's saddler-leatherworkers.

The summer was all about airiness, with the presentation of the spring-summer 2026 Men's ready-to-wear collections at Palais d'Iéna, and three stops in the regions of the travelling event The endless line, inspired by the annual theme "Drawn to craft". In Nantes, Bordeaux and then Biarritz, passers-by were invited to experiment with the art of drawing in the middle of the street, through fun workshops, in an ephemeral offbeat setting conducive to creativity. An experience rich in spontaneous and fun sharing, where participants were able to immerse themselves in the spirit of fantasy that drives the House and receive the magazine Le Monde d'Hermès.

In October, the spring-summer 2026 Women's ready-to-wear collection show lit up the Garde Républicaine merry-go-round with summer light, while the nave of the Grand Palais hosted an exceptional edition of the Les de(ux)mains du luxe event. Organised by the Comité Colbert, this event, celebrating the creativity and vitality of the arts and crafts métiers, brought together 18 schools and 32 houses around a common ambition: to preserve, transmit and open the doors to exceptional métiers. In addition to discovering Hermès' craftsmanship savoir-faire, visitors had the opportunity to talk to some of the House's craftspeople about the training courses offered by the École Hermès des Savoir-Faire.

The métiers were also centre-stage elsewhere in Europe. Thus, in April, Milan Design Week put the spotlight on the collections of Hermès objects for the Home and the lighting of the Cristalleries Saint-Louis, while Hermès Watches once again participated in the Watches & Wonders trade show in Geneva, where the latest creations and complications that embody Hermès' singular vision of time were unveiled. In September, the Franco Parenti theatre in Milan hosted the mischievous and poetic Hermèstories show for the first time, which tells the story of Hermès through its emblematic creations and invites the public to take a close look at this unique heritage. Just before the fall, Greece received a visit from the travelling event The endless line, which came to offer an interlude full of fantasy to people strolling around Athens. Lastly, in October, the Hermès in the Making programme, which presents the House's savoir-faire, its creative uniqueness and its commitment to responsible practices through multiple demonstrations and interactive activities, made a stop in Istanbul, Türkiye.

In 2025, the Group’s consolidated revenue amounted to €16.0 billion, up 9% at constant exchange rates and 5.5% at current exchange rates compared to 2024.

The gross margin rate was 71% in 2025, compared with 70% for financial year 2024, despite the negative impact of exchange rates.

Sales and administrative expenses, which represented €3.7 billion (€3.6 billion in 2024), notably included €620 million in communication expenses (€637 million in 2024). Other sales and administrative expenses, which mainly include the salaries of sales and support staff as well as variable rents, amounted to €3.1 billion (€2.9 billion in 2024).

Other income and expenses amounted to €1,106 million (€942 million in 2024). They include depreciation and amortisation of €729 million (€693 million in 2024), half of which relates to property, plant and equipment and intangible assets and the other half to right-of-use assets. Other expenses also include €199 million related to free share plans in 2025 (€180 million in 2024).

Recurring operating income amounted to €6.6 billion, up by 7% compared to 2024. Recurring operating profitability reached 41.0% of sales compared to 40.5% in 2024.

Net financial income was positive in the amount of €207 million (income of €283 million in 2024). It includes the cost of foreign exchange hedges, interest on lease liabilities and interest payments on cash, which amounted to €286 million in 2025.

The income tax expense amounted to €2.3 billion. The effective tax rate for the 2025 financial year was 33.4%, compared with 28.7% for the 2024 financial year. It includes the exceptional contribution on the profits of large companies in France. Excluding the impact of this contribution, the effective tax rate for 2025 amounted to 28.5%.

After taking into account the net income from associates and non-controlling interests, consolidated net income attributable to owners of the parent amounted to €4.5 billion, compared with €4.6 billion in 2024. Restated for the exceptional contribution, consolidated net income attributable to owners of the parent amounted to €4.86 billion and grew by 5.5%, in line with sales.

No significant events have occurred since the close of the financial year.

On the strength of its unique business model, based on its values of independence, entrepreneurial spirit, craftsmanship and creativity, Hermès has shown the solidity of the House's craftsmanship and entrepreneurial business model, posting solid performance in 2025, in a persistently uncertain environment. All geographical areas grew. All métiers, except Perfume and Beauty, and Watches, continued their steady progress, reflecting the strong desirability of the creations among its customers. Hermès, firmly rooted and inspired by its heritage, is enriched by its creative freedom and innovation, and its attachment to savoir-faire. Firmly believing that there can be no creation of economic value and long-term development without creation of social and societal value and without environmental responsibility, Hermès is committed to leaving a positive footprint on the world.

Thanks to the ongoing dialogue between creation and excellence in savoir-faire, the House will continue to blossom, affirming the uniqueness of its style. The year 2026 will be marked by the development of new collections based on the most beautiful materials and an abundant creativity. Among the new products, the Perfume and Beauty métier will launch a new version of Barénia in the fall, after launching the eau de toilette Un Jardin sous la Mer in the spring. The Perfume collections will also be enriched this year with two new Hermessences: Musc Pallida and Ginseng Biloba. Watches will continue the accompany the solid momentum of its Kelly and H08 lines, and will present its new products at the Watches & Wonders Salon in Geneva. As part of Milan Design Week, Hermès will present the collections of the Home universe and will in particular launch the Nature Marine tableware. Jewellery will unveil its ninth Haute Joaillerie collection. The emblematic bags Lindy and Picotin, with new ways of being worn and used, will enrich the Leather Goods collections alongside new creations.

The integrated and exclusive distribution network will continue to strengthen its omnichannel offering. In order to nurture the link with its particularly loyal local customers and to attract new customers, special attention will continue to be paid to the digitisation of uses, the development of services and the expansion of the online product offering. The qualitative development of the store network will continue in 2026, notably with projected openings of Sanlitun in Beijing and New Bond Street in London. Priority will continue to be given to the expansions and renovations of around 15 branches around the world, notably in Osaka (Japan), Berlin (Germany), San Diego (United States) and Geneva (Switzerland). 

In light of the House’s strong momentum, the development of production capacities will continue in all métiers, and in particular in Tableware and Watches, with work continuing on the new site at Couzeix and the extension of the Noirmont site. The growing demand in Leather Goods & Saddlery will be supported by the ramp-up of new sites. The Group will continue its objective of opening on average one production unit per year, leading to around 300 new hires. In 2026, Hermès will inaugurate a new leather goods workshop in Loupes, the House's second production site in Gironde, following the inauguration of the workshops in Saint-Vincent-de-Paul in September 2021. The Charleville-Mézières (Ardennes) and Colombelles (Calvados) leather goods workshop projects, scheduled for 2027 and 2028 respectively, are continuing. At the end of January 2026, the House also announced the opening of a new site in Les Andelys (Eure) by 2030. Hermès will strengthen its integration in France in regions with high manufacturing savoir-faire and develop employment and training. The House’s other métiers will continue to use their extensive expertise to design and create exceptional objects. The Group’s operational investments will continue in 2026.

True to its commitment as a responsible employer, with the creation of nearly 6,200 jobs over three years, of which more than 3,500 in France, Hermès will continue this multi-local and multi-métier dynamic in 2026. The Group will step up its efforts in terms of social, societal and environmental performance. Hermès will pursue its commitment to the development of its employees, inclusion and diversity. 

The enhancement and transmission of savoir-faire will remain at the heart of the priorities of the métiers, with, in particular, the ramp-up of the apprentice training centres (CFA) dedicated to the leather goods métiers, as well as the House's training in the unique savoir-faire of the other métiers, such as Jewellery. Present today in six regions in France, the École Hermès des Savoir-Faire will gradually be set up in all the regional Leather Goods divisions.

Control of the supply chains, guaranteeing the quality of materials, will continue with the continued implementation at the House’s partners of CSR briefs, supply chain briefs and a responsible purchasing policy. The latter bring together the Group’s requirements notably in terms of traceability, certification, carbon trajectory, reduction of water consumption and respect for human rights.

The House’s commitments to fighting climate change and the preservation of biodiversity will remain at the forefront. With the development of eco-design strategies for all métiers and the construction of an internal tool to make life cycle analyses systematic, the Group will continue its efforts to encourage the sparing use of resources and waste management. More broadly, the House’s actions in favour of biodiversity will be strengthened by the continuation of the Science Based Targets for nature (SBTN) initiative with the setting of targets as provided for in step 3 of the framework, and the deepening of impact analyses using the Global Biodiversity Score (GBS) method.

In line with its climate change mitigation commitments, Hermès will continue its actions in accordance with its reduction objectives, approved by the Science Based Target initiative (SBTi), to reduce scopes 1 and 2 emissions by 50.4% in absolute value and scope 3 emissions by 58.1% in intensity, over the 2018-2030 period. Work will also be undertaken in 2026 to identify the expenses, investments and financing specifically related to the implementation of the transition plan. The particularly demanding responsible construction framework will continue to be rolled out for new real estate projects. At the same time, Hermès will increase its contribution to projects with a strong environmental, social and economic impact outside its value chain, in particular through the Livelihoods Carbon Funds. The House will also continue undertaking studies for projects within its value chain, in order to prepare for the neutralisation of its residual emissions. In terms of adaptation, Hermès will continue the analysis of climate risks conducted on its sites and its main international flows, and will work on structuring action plans adapted to local issues.

Hermès will strengthen its role as a responsible company alongside its suppliers, which it will continue to support, with the rollout of its Responsible purchasing policy and its Supplier code of conduct, as well as working with the communities in which it operates, whether through site openings, job creation, the development of vocational training centres for its craftsmanship métiers, or contributions to the social and cultural life of the regions.

The Group is looking forward to 2026 with confidence, thanks to its highly integrated craftsmanship model, its balanced distribution network, the creativity of its collections and the loyalty of its customers.

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. Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over savoir-faire and singular communication.

Driven by humanist values since its inception, Maison Hermès has always been committed to society by carrying out philanthropic actions over the years. As an extension of this culture of generosity, the Company is now more committed than ever to giving back to the world some of what it gives to it.

The Group's philanthropy policy is exercised through two distinct channels. On the one hand, the Fondation d'entreprise Hermès has been managing its own programmes since its creation in 2008. In addition, each entity has set up its own Local Patronage Committee to determine their own generous initiatives it intends to carry out and to ensure local monitoring.

Driven, since its creation in 2008, by the humanist values of the House from which it emanates, the Fondation d’entreprise Hermès carries out its philanthropic actions in ways that set it apart from the French philanthropic landscape. It has chosen to be an operator rather than a distributor, by developing specific programmes in four areas: the creation of new works of art, the transmission of savoir-faire, the protection of biodiversity and solidarity. Thus, the Foundation is committed to acting in situ, in the life of the city where it identifies particular needs in favour of the general interest: in this, it plays a fundamentally political role – in the etymological sense of the term, polis meaning city in Greek. Through the management of its tailor-made programmes, it takes its responsibilities at the very heart of society, by supporting its beneficiaries on the ground. Whether they are artists, project leaders or students, they all experience first-hand the way in which the Foundation contributes, alongside them, to building a better world.

As a stakeholder in this ambition, artistic creation involves broadening horizons and changing perspectives. This is evidenced by the Latitudes programme, launched in 2024, which aims to highlight low-visibility photographic scenes and support the creation and distribution of new series. The first winner of Latitudes, the Franco-Ivorian photographer François-Xavier Gbré, exhibited his work entitled "Radio Ballast" in the autumn of 2025 at the Henri Cartier-Bresson Foundation in Paris, as part of a biennial focus on Côte d'Ivoire. The winner of the second edition, the Ivorian photographer Nuits Balnéaires, has begun the production of a new series. Producing work in unprecedented conditions is one of the challenges of the Artists’ Residencies, which completed a new cycle in 2025, under the artistic direction of Emmanuelle Luciani. The visual artists Salomé Chatriot and Jacopo Pagin were invited to work respectively at the Sormonne leather goods workshop and the Saint-Louis crystal manufacturing plant. Co-published by Loose Joints and the Fondation d'entreprise Hermès, Passé Présent Futur retraces and illustrates the four residencies of this cycle carried out between 2024 and 2025. The Exhibitions programme is also an in situ commitment by the Foundation through its four dedicated spaces in Brussels (Belgium), Saint-Louis-lès-Bitche (France), Tokyo (Japan) and Seoul (South Korea). A total of 11 exhibitions were presented there in 2025. Another platform for encounters between the public and artists, the Transforme festival, co-constructed with the Foundation's institutional partners and rooted in four regions in Paris, Clermont-Ferrand, Lyon and Rennes, offers a programme that is in touch with society, in particular through a programme of actions "Going Further". The 13 shows of the second edition of Transforme brought together more than 24,000 spectators, and the third edition was successfully launched in the autumn of 2025. Whatever the forms of expression of the artists, the Foundation, through its programmes for creation, invites a wide public to reflect, be moved, meet and form society.

Among major contemporary issues, that of environmental protection encourages action in order to pass on a sustainable world to future generations. To this end, the Foundation is working in two places: firstly, through the Manuterra programme, learning from life, which aims to raise awareness of biodiversity among schoolchildren by developing and maintaining a plot of land using permaculture techniques. This educational system has continued to expand since its creation in 2021. During the 2024-2025 school year, 875 pupils aged from nine to 15, i.e. a total of 35 classes in 11 partner academies, cultivated a plot of land under the watchful eye of a gardening professional. At the same time, as part of its Biodiversity & Ecosystems programme, the Foundation is supporting 10 projects that act as levers for targeted action to maintain biodiversity.

Sustainability issues are very often associated with the transmission of savoir-faire which, in itself, promotes the preservation of natural resources. This is another political issue in view of the Foundation's community presence, in that it contributes to the empowerment of those who benefit from it, such as the school pupils who participate in the Manufacto programme, the Skills Factory. Constantly expanding since 2016, this educational system allows pupils aged from nine to 15 to discover the craftsmanship skills of four know-how (leather goods, saddlery and upholstery, carpentry, plastering) through the production of an object during school time. During the 2024-2025 school year, 2,400 students, or 96 classes in 16 academies, took part in this programme, which, along with Manuterra, demonstrates the importance the Foundation attaches to education.

For professionals, the Foundation proposed the seventh edition of the Skills Academy: dedicated to paper and under the educational direction of Constance Guisset, this edition brought together 21 craftspeople, designers and engineers who took part in five morning sessions (open to the public) before meeting again during discovery weekends. A large workshop spread over two non-consecutive weeks completed their exploration of paper. The third edition of the Skills Academy in Japan, dedicated to metal, was launched with the publication of the work Savoir & Faire – KINZOKU, Le Métal. A first public discussion session devoted to this subject took place in November, in parallel with the "Metal" exhibition scheduled at Le Forum in Tokyo. As regards the transmission of savoir-faire, the collective creation Avant toute chose, presented to the public on 9 and 11 September 2025 at the MC93 – Maison de la Culture de Seine-Saint-Denis in Bobigny, was a special highlight. Under the joint direction of three artists (Aurélie Charon, Régine Chopinot and Phia Ménard), 30 young talents made their début in a professional context. Having graduated in 2025, they form the fourth class of students who have completed the demanding courses of dance, theatre and circus schools, thanks to the support of the Foundation as part of the Artists in the Community scholarship scheme, a pivotal part of the eponymous program. These two evenings rich in emotions introduced these young artists in the performing arts: a springboard for everyone to flourish in their discipline and contribute, in the long term, to the renewal of stage arts. For the 2025-2026 school year, 119 students at all levels will receive support from the Foundation through this scholarship scheme. Of these, 34 are in their first year of dance, theatre, circus or puppetry studies: they make up the seventh class of scholarship holders.

Lastly, while the Fondation d'entreprise Hermès strives to encourage solidarity through all of its generous actions, this ambition has been at the heart of the internal H3 programme – Heart, Head, Hand – since 2013. Whether it is a financial donation or a donation of time, this scheme makes it possible to involve Hermès employees, on a voluntary basis, to support local solidarity initiatives. In 2025, 20 projects were supported by the Foundation.

Through all these programmes, throughout 2025, the Fondation d'entreprise Hermès continued to engage responsibly in the collective social framework – in the "city" – acting in the public interest. Through its operating model, it supports the women and men who work daily in line with its humanist values to build a fairer, more sustainable society conducive to the empowerment of everyone.

The activity report of the Fondation d’entreprise Hermès can be found at: https://www.fondationdentreprisehermes.org/en, section “the Foundation”.

It was prepared with the assistance of the Chairman of the Supervisory Board, the CAG-CSR Committee and the Secretary of the Board, on the basis of the work and procedures carried out by the functional departments concerned. It was approved by the Supervisory Board at its meeting of 11 February 2026.

The Supervisory Board officially adopted the Afep-Medef recommendations on corporate governance in 2009, as it deemed these recommendations to be entirely in keeping with the Group’s corporate governance policy. This framework includes the Afep-Medef Corporate Governance Code for listed companies, updated in December 2022, available on the Afep website (www.lafep.org/en) or the Medef website (www.medef.com), and the application guide of the High Committee on Corporate Governance (HCGE), revised in June 2022, which explains the recommendations of this code.

The positions and recommendations issued by the French Financial Markets Authority (AMF) are also taken into account:

• ◆concerning corporate governance and the compensation of Executive Corporate Officers (AMF position-recommendation - DOC-2021-02 and AMF recommendation - DOC-2012-02);
• ◆on Shareholders' General Meetings of listed companies (AMF recommendation DOC-2012-05).

With each revision of the Afep-Medef Code, the CAG-CSR Committee performs an exhaustive comparative analysis of the Company’s application of the Afep-Medef Code’s recommendations, and reports to the Supervisory Board.

These periodic reviews, as well as monitoring of market practices and analyses, make it possible to adapt the systems in force each year with the aim of constant improvement.

Émile Hermès SAS is a société par actions simplifiée à capital variable (simplified joint stock company with variable capital), incorporated on 2 November 1989, whose partners are the direct descendants of Mr Émile-Maurice Hermès (see chapter 1 "Presentation of the Group and its results", § 1.1) and his wife. It is registered with the Trade and Companies Register under number 352 258 115 RCS Paris. Its registered office is located at 23, rue Boissy d’Anglas, 75008 Paris, France.

Its sole purpose is:

• ◆to serve as Active Partner and, if applicable, as Executive Chairman of Hermès International;
• ◆potentially, to hold direct or indirect equity interests in Hermès International; and
• ◆to carry out all transactions in view of pursuing and accomplishing these activities and to ascertain that any liquid assets it may hold are appropriately managed.

The role and powers of the Active Partner are described in § 2.2.2.

The control exercised by Émile Hermès SAS over Hermès International is described in chapter 7 “Information on the Company and its share capital”, § 7.2.2.3.

Émile Hermès SAS, incorporated as a SARL (société à responsabilité limitée, or limited liability company), was transformed in 2021 into a SAS (société par actions simplifiée, or simplified joint-stock company). This transformation took effect on 4 May 2021. The aim is to allow a number of partners that may exceed 100, the limit provided for in Article L. 223-3 of the French Commercial Code (Code de commerce) for SARLs.

The economy and the essential characteristics of the company, such as its operations, the organisation of its governance and the powers of its various corporate bodies, remain unchanged.

Only the following may be partners in Émile Hermès SAS:

• ◆the descendants of Mr Émile-Maurice Hermès and his wife, born Julie Hollande; and
• ◆their spouses, but only as usufructuaries of shares.

All partners of Émile Hermès SAS must have, for each share they hold on to deposit with the social funds:

• ◆either a number of Hermès International shares, undivided and free from any encumbrance or other commitment to third parties, equal to 2,250; or
• ◆the beneficial or bare ownership of a number of Hermès International shares, free from any encumbrance or commitment to third parties, equal to 4,500.

Any transaction that would result in a change of owner, even for the benefit of a spouse, ascendant or descendant of a partner, of wholly-owned shares, shares in bare ownership or usufruct, immediately, in the future or on option, is subject to the approval of the group of partners of Émile Hermès SAS. Nevertheless, transfers between partners may be freely made. The subscription of shares, other than by persons who are already partners, is also subject to this approval.

Émile Hermès SAS is chaired by Mr Henri-Louis Bauer, a direct descendant of Mr Émile-Maurice Hermès.

He has been a legal representative since 1 July 2012, first as Executive Chairman and then as Chairman since the transformation of the company into a SAS (société par actions simplifiée, or simplified joint-stock company) on 4 May 2021.

Émile Hermès SAS has an Executive Management Board with 10 members, including the Chairman, who is an ex-officio member and chairs the Board.

The Executive Management Board appoints two Vice-Chairmen from among its members.

The members of the Executive Management Board are all natural persons chosen from among the shareholders of Émile Hermès SAS.

The Executive Management Board of Émile Hermès SAS exercises the powers attached to being an Active Partner of the Company.

The confidentiality of the Board’s work and the principle of collegiality prevent any individual public position being taken by members of the Supervisory Board.

The Supervisory Board describes the due diligence procedures it carried out during the financial year ended 31 December 2025 in a report presented to the General Meeting called to approve the financial statements (see chapter 8 “Combined General Meeting of 17 April 2026”, § 8.3).

In accordance with Article L. 22-10-78 of the French Commercial Code (Code de commerce), the Supervisory Board also presents this corporate governance report.

The rules of procedure (Article 1.1.3) provide, in respect of governance assignments not covered by the Articles of Association, that the Supervisory Board:

• ◆approves or refuses the acceptance by an Executive Chairman of any new office in a listed company;
• ◆is informed about market developments, the competitive environment and the most important issues facing the Company, including in the area of social and environmental responsibility and non-financial performance;
• ◆regularly reviews, via the Audit and Risk Committee, the opportunities and risks, such as financial, legal, operational, social and environmental risks, as well as the measures taken accordingly;
• ◆is regularly informed of the Company’s financial position, cash position and commitments;
• ◆ensures the establishment of a system for preventing and detecting corruption and influence-peddling;
• ◆ensures that the Executive Corporate Officers implement a policy of non-discrimination and diversity, notably with regard to the balanced representation of men and women on the Governing bodies;
• ◆examines the desired balance between its composition and that of its committees, and defines its diversity policy (see § 2.4.3).

Certain decisions of the Supervisory Board are prepared by specialised committees (see § 2.6).

Details of the subjects dealt with by the Supervisory Board in 2025 are provided in § 2.5.4.

In relations with the other bodies of the Company and vis-à-vis third parties, the Chairman is the sole person authorised to speak and act on behalf of the Board, other than in exceptional circumstances.

The Chairman ensures the proper functioning of the Supervisory Board.

In this respect:

• ◆with the support of the CAG-CSR Committee, the approval of the Board and of the Shareholders’ General Meeting where appropriate, he or she strives to create an effective and balanced Board, and to manage the replacement and succession planning processes concerning the Board and the appointments for which it is responsible;
• ◆he or she may attend all the committees and may add to the agenda any subject he or she considers relevant;
• ◆he or she ensures that the members of the Board have the documentation and information they need to carry out their duties in a timely manner, in a clear and appropriate form.

As in previous years, the Chairman of the Supervisory Board was invited to attend all meetings of the Executive Management Board of Émile Hermès SAS.

Since 20 March 2018, the Chairman of the Supervisory Board has been responsible for communicating with shareholders, on behalf of the Supervisory Board, with a view to:

• ◆explaining the positions taken by the Supervisory Board in its areas of competence (particularly with regard to governance and Senior Executive compensation), which were previously the subject of a communication;
• ◆ensuring that shareholders receive the information they expect from the Company.

The Chairman may seek the assistance of internal experts in these areas (in particular the Director of Financial Communications and Investor Relations or the Director of Corporate Law and Stock Exchange Regulations, Supervisory Board secretary and Compliance Officer).

The Chairman must report annually to the Supervisory Board on the execution of his or her duties.

No additional compensation is allocated to the Chairman for executing these duties.

In early 2026, the Chairman reported to the Supervisory Board on the performance of his duties in 2025. He was mainly asked to answer questions from institutional shareholders.

Hermès International did not receive any questions from individual shareholders in 2025.

The AMF recommends that issuers establish a dialogue between the Board and shareholders, through the intermediary of a Lead Director, where applicable, on the main topics of concern to shareholders, in particular questions relating to strategy and social, environmental and governance (ESG) performance. It is specified that the replies to the questions relating to strategy and social, environmental and governance (ESG) performance, as well as to the written questions addressed to the Company at the General Meeting, are the responsibility of the Executive Management.

In 2025, the Board did not entrust any other duties to the Chairman of the Supervisory Board.

Two Vice-Chairmen are appointed by the Supervisory Board from among its members.

In practice, the Vice-Chairmen are the Chairmen of one of the two committees.

In accordance with the Articles of Association, in the absence of the Chairman, the oldest Vice-Chairman shall perform his duties.

The Company’s CAG-CSR Committee is not tasked with setting the compensation of the Executive Chairmen, a task governed by the provisions of the Articles of Association and which falls within the remit of the Active Partner and not the Supervisory Board. It was therefore not relevant to create separate Compensation and Appointments Committees.

The Supervisory Board decides on the composition of the specialised committees, taking into account the skills of the Board members in the areas in question and their availability, as well as the legal requirements (Article L. 821-67 of the French Commercial Code (Code de commerce)) and the recommendations of the Afep-Medef Code updated in December 2022 (see § 2.1.2).

The skills of the members of a committee must correspond to the missions entrusted to this committee (see § 2.6.2.4 and § 2.6.3.4).

The current composition of each committee is in line with this objective.

The skills and experience matrix presented in § 2.4.5.2 lists the skills of the members of each committee.

The Supervisory Board meeting of 30 April 2025:

• ◆reappointed as members of the Audit and Risk Committee Mses Monique Cohen (Chairwoman), Estelle Brachlianoff and Mr Renaud Momméja;
• ◆noted the end of the terms of office of Messrs Charles-Éric Bauer and Alexandre Viros as members of the Audit and Risk Committee;
• ◆appointed Ms Cécile Béliot-Zind as a member of the Audit and Risk Committee;
• ◆reappointed Ms Estelle Brachlianoff and Mr Matthieu Dumas as members of the CAG-CSR Committee;
• ◆noted the end of the term of office of Ms Dominique Senequier as Chairwoman and member of the CAG-CSR Committee;
• ◆appointed Mr Jean-Laurent Bonnafé as a member of the CAG-CSR Committee; and
• ◆appointed Ms Estelle Brachlianoff as Chairwoman of the CAG-CSR Committee.

The terms of office of Supervisory Board members Mr Renaud Momméja and Ms Monique Cohen expire in 2026. The term of office of Ms Monique Cohen will not be renewed, as she has served on the Supervisory Board for 12 years. It is therefore proposed that the General Meeting appoint Ms Lucia Sinapi-Thomas to replace Ms Monique Cohen (as member and Chairwoman) (see chapter 8 "General Meeting of 17 April 2026" – explanatory statement to the sixteenth resolution).

In addition, Mr Renaud Momméja announced to the Supervisory Board his wish to end his duties as a member of the Audit and Risk Committee from the end of the General Meeting of 17 April 2026. It was decided by the Supervisory Board to replace him with Ms Julie Guerrand.

Subject to the renewal of the aforementioned terms of office as members of the Supervisory Board and the appointment of the candidate proposed to the General Meeting of 17 April 2026, the composition of the specialised committees would be modified as follows:

During the formal 2022 evaluation, the CAG-CSR Committee considered, as it had done in 2019, that it was undesirable to call on an outside firm to conduct the formal evaluation of the Supervisory Board. The reasons for this decision are as follows:

• ◆confidentiality issues raised by giving information on the Supervisory Board to a third party;
• ◆the relative absence of weak signals raised by previous evaluations;
• ◆the steady progress made in terms of governance;
• ◆the small amount of added value expected from an external firm, particularly given the specific nature of a société en commandite par actions (partnership limited by shares), which provides for few comparable companies.

The evaluation is carried out, in accordance with the recommendations of the Afep-Medef Code revised in December 2022 (Article 11.3), as follows:

• ◆a formal evaluation is carried out every three years (year N). It is implemented, under the direction of the CAG-CSR Committee, with the help of the secretary of the Board;
• ◆the following year (year N+1), the Supervisory Board organises an in-meeting discussion, during which a review is undertaken of the actions carried out since the last evaluation in order to respond to the areas for improvement identified;
• ◆the following year (year N+2), the Chairman of the Supervisory Board meets individually with each member of the Supervisory Board in order to discuss in particular the functioning of the Board since the last evaluation and to assess the individual contribution of its members;
• ◆the shareholders are informed each year in the corporate governance report of the performance of the assessments and, where applicable, the follow-up given to them.

The evaluation shall have three objectives (Article 11.2 of the Afep-Medef Code updated in December 2022):

• ◆review the Board’s operating procedures;
• ◆check that key issues are properly prepared and discussed;
• ◆measure the continuous and permanent improvement in the effective contribution of each Board member to the work of the Board by virtue of his or her skills and involvement in discussions.

The evaluation also covers the diversity policy applied within the Supervisory Board and the skills matrix defined (see § 2.4.3 and § 2.4.5.2), in order to ensure the coherence of the overall composition of the Board and to question the relevance of the objectives set.

Pursuant to paragraph 4 of Article L. 22-10-76, I of the French Commercial Code (Code de commerce), resulting from the aforementioned order, the compensation policy for Corporate Officers (Executive Chairmen and members of the Supervisory Board) is presented below.

This policy describes all components of fixed and variable compensation and explains the decision-making process applied for its determination, review and implementation.

The compensation policies for the Executive Chairmen and Supervisory Board members are aligned with the corporate interest and contribute to the Company’s commercial strategy and sustainability for the following reasons:

As regards the Executive Chairmen:

• ◆since the Company’s transformation into a société en commandite par actions (partnership limited by shares), the maximum amount of variable compensation set by the Articles of Association (“statutory compensation”) of the Executive Chairmen has been determined by the Articles of Association (Article 17);
• ◆the maximum amount of fixed (“additional”) compensation of the Executive Chairmen and the terms of its indexation were determined by the Ordinary General Meeting of 31 May 2001.

• ◆the variable compensation is subject in part (10%) to a CSR criterion reflecting the Group’s firm and ongoing commitments to sustainable development (for the composition of the CSR criterion, see § 2.8.1.2.4);
• ◆the composition of compensation is simple and clear – fixed and variable compensation, without resorting to complex deferred compensation mechanisms and without guaranteeing a minimum variable compensation in the event of a poor economic performance by the Company;
• ◆the Executive Management Board of Émile Hermès SAS, Active Partner, sets the actual amount of each Executive Chairman’s annual compensation set by the Articles of Association (“statutory compensation”). To this end, it uses the recommendations of the CAG-CSR Committee and in particular, in addition to the level of achievement of CSR criteria, takes into account in its decision the performance achieved by the Group in respect of the previous financial year, the strategic challenges in respect of the Group’s medium- and long-term development and the competitive environment in which it operates.

As regards the members of the Supervisory Board:

• ◆the principles governing allocation set out in the compensation policy for members of the Supervisory Board result in amounts being awarded on the basis of the tasks entrusted to them and their attendance at meetings;
• ◆these principles are periodically reviewed in line with market practices.

The compensation and employment conditions of the Group’s employees are detailed in chapter 4 “Corporate social responsibility and non‐financial performance”, § 4.1.3.2.2.

The Group’s policy is to allow its employees to benefit from its long-term growth prospects through various mechanisms:

• ◆in general, in all the countries where the Company operates, its employees are paid in line with market standards in terms of their total compensation;
• ◆the Company also offers its employees:
  • •employee shareholding plans: such plans have been in place for many years (the first plan dates back to 1993) and acknowledge the contribution made by employees to the House’s development, regardless of their role or geographical location, by providing a single component of compensation in order to share the benefits of the Company's growth, enabling employees to identify more closely with decisions having an impact on Hermès’ long-term growth,
  • •incentive schemes involving employees with the development of locally determined indicators that are relevant with regard to the activity and environment of each of the French subsidiaries, notably quality, safety and productivity,
  • •a Group profit-sharing agreement giving all employees of companies in France a share of the Group’s profits in a harmonised manner,
  • •other mechanisms enabling employees of foreign subsidiaries to benefit from additional compensation adapted to local performance and practices,
  • •voluntary and supra-legal social protection and pension plans, set up by the subsidiaries in order to supplement the employer offer in a comprehensive and competitive manner and to offer compensation and social protection schemes in the short, medium and long term,
  • •lastly, exceptional bonuses were awarded to all employees (fixed-term and permanent employment contracts) worldwide in 2022, 2023, 2024, 2025 and 2026.

The Group’s employee compensation policy is ambitious and comprehensive; it incorporates a wide range of compensation tools.

The budget guidelines for wage increases during the annual salary review take account of inflation and changes in local wage markets. Particular attention is paid to gender equality and gaps in relation to the markets (internal and external). Specific budgets may be provided if adjustments are necessary.

The desire to reward both collective and individual performance can also be seen in the development of variable compensation at both individual and collective levels in recent years.

A number of measures have been implemented to prevent possible conflicts of interest:

• ◆the maximum amount of variable compensation set by the Articles of Association (“statutory compensation”) of the Executive Chairmen is determined by the Articles of Association (Article 17);
• ◆the maximum amount of fixed (“additional”) compensation of the Executive Chairmen and the terms of its indexation were determined by the Ordinary General Meeting of 31 May 2001. On 7 February 2024, Émile Hermès SAS, Active Partner, decided to cap this indexation (see § 2.8.1.2.1);
• ◆since its creation on 24 March 2010, the CAG-CSR Committee of the Supervisory Board of Hermès International has been tasked each year with ensuring that compensation paid to the Executive Chairmen complies with the provisions of the Articles of Association and the decisions made by the Active Partner;
• ◆changes to the two components of the Executive Chairmen’s compensation depend on clear and objective long-term criteria that are both qualitative and quantifiable, and which are publicly available and predefined by nature, as described in § 2.8.1.2;
• ◆when setting the actual amount of each Executive Chairman’s compensation set by the Articles of Association (“statutory compensation”), the Executive Management Board of Émile Hermès SAS uses the recommendations of the CAG-CSR Committee and takes into account in its decision the performance achieved by the Group in respect of the prior financial year, the strategic challenges in respect of the Group’s medium- and long-term development and the competitive environment in which it operates;
• ◆since 2020, the compensation policy for the Executive Chairmen has been subject to the advisory opinion of the Supervisory Board and the approval of the General Meeting, and the actual compensation of the Executive Chairmen is subject to a decision by the Supervisory Board.

Pursuant to Article R. 22-10-40, V of the French Commercial Code (Code de commerce), the compensation policy for Corporate Officers, together with the date and result of the last ex-ante vote in the General Meeting, is disclosed on the Company’s financial website on the business day following the date of the vote.

Pursuant to Article 27.1 of the Afep-Medef Code, all potential or vested compensation of the Executive Chairmen is disclosed on the Company’s financial website https://finance.hermes.com/en/corporate-officers/ immediately after the meeting of the Executive Management Board of Émile Hermès SAS, Active Partner, that approved it.

The components of the Executive Chairmen’s compensation policy are established by Émile Hermès SAS, Active Partner. The decision is made by taking into account the principles and conditions provided for in Article 17 of the Articles of Association with respect to the variable compensation set by the Articles of Association (“statutory compensation”) and, by reference to the Articles of Association, the decision of the Ordinary General Meeting of 31 May 2001 with respect to fixed (“additional”) compensation.

The Supervisory Board issues an advisory opinion on the compensation policy for the Executive Chairmen.

Since 2020, the compensation policy for the Executive Chairmen is submitted each year to the Ordinary General Meeting for approval (ex-ante vote).

The actual amount of the Executive Chairmen’s compensation is determined each year by Émile Hermès SAS, Active Partner, in accordance with the approved compensation policy, which is then submitted to the Supervisory Board for approval.

The CAG-CSR Committee of the Supervisory Board:

• ◆evaluates the achievement of the indicators comprising the CSR criterion for the Executive Chairmen’s variable compensation and retirement benefit obligations (Article 82);
• ◆checks that the actual compensation of the Executive Chairmen complies with the Articles of Association and the compensation policy.

Since 2020, the actual overall compensation of Corporate Officers (including that of the Executive Chairmen) and the actual individual compensation of each Executive Chairman will be subject, each year, to approval by the Ordinary General Meeting (ex-post votes).

The General Meeting of 30 April 2025 approved, at 91.12% and without reservation, the compensation policy for the Executive Chairmen (see § 2.8.5).

In accordance with the decision-making process described in § 2.8.1.2, at its meeting of 11 February 2026, the Executive Management Board of Émile Hermès SAS proposed the renewal of this compensation policy without changes compared to the previous financial year.

The term of office of the Executive Chairmen is indefinite under the terms of the Articles of Association, and is therefore not subject to renewal.

The compensation policy would apply to newly appointed Executive Chairmen on a pro rata basis in accordance with their presence during the first year of their term.

In the event that exceptional circumstances should arise, the Executive Management Board of Émile Hermès SAS is authorised, under the conditions provided for by law, to waive the application of the compensation policy used to set the variable compensation of the Executive Chairmen, within the limit authorised by the Articles of Association, and after the favourable opinion of the Supervisory Board.

Pursuant to Articles L. 22-10-76 and R. 22-10-40, II of the French Commercial Code (Code de commerce), the specific components comprising the compensation policy for the Executive Chairmen are set out below.

No such commitment exists.

The term of office of the Executive Chairmen is open-ended. The Executive Chairmen may be dismissed by a decision of the Active Partner.

Annual fixed and variable compensation and respective importance – CSR criterion for variable compensation

In accordance with the principles set out in Article 17 of the Articles of Association, each Executive Chairman is entitled to fixed compensation (referred to as “additional” in the Articles of Association) for which the maximum amount is determined by the Ordinary General Meeting with the unanimous approval of the Active Partners and, potentially, variable compensation set by the Articles of Association (“statutory compensation”):

• ◆fixed compensation (referred to as “additional compensation” in the Articles of Association) was introduced by the Ordinary General Meeting of 31 May 2001, which set a limit of €457,347.05, and provided for it to be indexed upwards only, in accordance with any increase in consolidated revenue for the previous financial year over the year prior to that, at constant scope and exchange rates. On 7 February 2024, the Executive Management Board of Émile Hermès SAS decided to limit the indexation of fixed compensation to 5%. This change was approved by the General Meeting of 30 April 2024;
• ◆the calculation of the variable compensation referred to as “compensation set by the Articles of Association (“statutory compensation”)” – set by Article 17 of the Articles of Association – has remained constant since the IPO on 3 June 1993. This compensation is capped at 0.20% of the consolidated net income before tax generated in the previous financial year. This mode of determination naturally leads to a strict variability in the compensation set by the Articles of Association (“statutory compensation”) of Executive Chairmen, in a transparent way and without any guarantee of a minimum amount.

The variable compensation of the two Executive Chairmen is partially conditioned (10%) on a “CSR” criterion reflecting the Group’s stated and constant commitments in respect of sustainable development. The CSR criterion contributes to the objectives of the Executive Chairmen’s compensation policy.

The indicators making up the CSR criterion relate to the following:

• ◆decoupling between business growth at constant scope and exchange rates and the evolution of industrial energy consumption (quantifiable environmental criterion);
• ◆actions implemented in favour of the Group’s local integration in France and throughout the world, excluding major cities (qualitative societal criterion);
• ◆Group initiatives in favour of gender balance (qualitative social criterion).

These indices are in line with the CSR strategy and the action priorities presented in chapter 4 “Corporate social responsibility and non‐financial performance” § 4.1.1.5.2).

The Executive Management Board of Émile Hermès SAS, Active Partner, sets the actual amount of the annual compensation of each Executive Chairman, not exceeding the maximum amount of the approved compensation policy defined herein, and in accordance with the criteria and targets set out in § 2.8.1.1 and § 2.8.1.2.

Thus, no minimum variable compensation set by the Articles of Association (“statutory compensation”) is guaranteed for the Executive Chairmen.

The quantifiable criteria are paramount in the calculation of the variable compensation of the Executive Chairmen.

The Executive Management Board of Émile Hermès SAS, Active Partner, relies on the recommendations of the CAG-CSR Committee.

Mr Henri-Louis Bauer, the Legal Representative of Émile Hermès SAS (Executive Chairman), does not personally receive any compensation from Hermès International. He receives compensation from Émile Hermès SAS for his functions as Executive Chairman of this company, which is unrelated to the appointment of Émile Hermès SAS as Executive Chairman of Hermès International.

The Executive Chairmen do not receive any compensation or benefits of any kind from the subsidiaries of Hermès International.

The breakdown of the actual compensation of the Executive Chairmen for the last two financial years is shown in § 2.8.4.2.

Each year, the CAG-CSR Committee of the Supervisory Board of Hermès International is tasked with ensuring that the Executive Chairmen’s compensation is compliant with the Articles of Association and the compensation policy.

No predetermined weighting is applied with respect to fixed and variable compensation, which depend on the components described above.

Methods for assessing the achievement of performance criteria for variable compensation or share-based compensation (Article R. 22-10-40, I-4° of the French Commercial Code (Code de commerce))

The variable compensation set by the Articles of Association (“statutory compensation”) of the Executive Chairmen is evaluated in accordance with the change in consolidated net income before tax for the prior financial year compared with the preceding financial year, and conditioned in the proportion of 10% on the achievement of the CSR criterion.

The evaluation of the amount of compensation subject to the CSR criterion is limited to a target of 100%, with no possibility of exceeding that limit.

Each of the three indices mentioned in § 2.8.1.2.4 “Annual fixed and variable compensation and respective importance – CSR criterion for variable compensation”:

• ◆shall count as one-third of the CSR criterion;
• ◆has an annual reference period;
• ◆is subject to an annual evaluation of their achievement by the CAG-CSR Committee.

Deferred or multi-year variable compensation

The allocation to Executive Chairmen of deferred or multi-year variable compensation is not provided for.

Exceptional compensation

The allocation of exceptional compensation to the Executive Chairmen is not provided for.

Share-based compensation (Article R. 22-10-40, II-2° of the French Commercial Code (Code de commerce))

The current compensation policy does not provide that the Executive Chairmen are entitled to share-based compensation.

In accordance with Article 26.3.3 of the Afep-Medef Code, Executive Chairmen who are natural persons and who are beneficiaries of stock options and/or performance-based shares must make a formal commitment not to hedge their risk on options or on shares resulting from the exercise of options or on performance-based shares, until the end of the share retention period.

Mr Axel Dumas, the only eligible Executive Chairman, has not received any stock options or performance-based shares since he was appointed Executive Chairman.

Émile Hermès SAS, a legal entity, is not eligible for the stock option or performance-based share plans.

Employment contract

In order to comply with the Afep-Medef Code, Mr Axel Dumas decided to end his employment contract with immediate effect on 5 June 2013, upon his appointment as Executive Chairman of Hermès International.

Service agreements

No Executive Chairman directly or indirectly invoices services to the Company.

Compensation of Board members in the Company and the Group’s subsidiaries

The Executive Chairmen do not receive any compensation as Board members paid by the Company or by the Group's subsidiaries.

Similarly, note that the Group’s allocation rules specify that the members of the Executive Committee of Hermès International who are directors in subsidiaries do not receive compensation in that capacity.

Death and disability plan

Mr Axel Dumas is eligible for the mandatory collective death and disability plan established by the Group for the benefit of all staff of French entities that have joined this plan (decision taken by the Supervisory Board on 19 March 2014).

It provides, as is the case for all employees, the following gross lifetime benefits:

• ◆a disability pension at 51% of reference compensation in the case of Category 1 disability and 85% of reference compensation in the case of Category 2 or 3 disability. The reference compensation (gross annual compensation) is capped at 8x the annual social security ceiling (PASS). The payment of the disability pension is discontinued when the recipient in question is no longer categorised as having the disability or permanent impairment and, at the latest, on the day of the normal or early liquidation of an old age insurance pension from the mandatory retirement plan, for any reason whatsoever;
• ◆a death benefit equal to a maximum of 380% of the reference compensation, capped at 8x PASS, depending on the family situation;
• ◆contributions paid to the insurer are split between the Company (80% of contributions) and the beneficiary (20% of contributions);
• ◆these contributions are deductible from the corporation tax base, subject to corporate social contributions at the rate of 8%, and excluded from the base for social security contributions, within the limit of an amount equal to the sum of 6% of PASS and 1.5% of compensation retained within the limit of 12x PASS.

Benefits of any kind

Mr Axel Dumas has a company car constituting his only benefit in kind.

Mr Axel Dumas benefits from the mandatory collective healthcare plan implemented by the Group for the benefit of all staff of French entities that have joined this plan (decision made by the Supervisory Board on 19 March 2014).

Émile Hermès SAS does not receive any benefits in kind.

Severance payment

The Company made a commitment to pay Mr Axel Dumas an amount equal to 24 months of total compensation (variable compensation set by the Articles of Association ("statutory compensation") and "additional" fixed compensation) in the event of the termination of his duties as Executive Chairman (decision of the Supervisory Board of 4 June 2013, approved by the General Meeting of 3 June 2014 − tenth resolution "Approval of the commitments owed to Mr Axel Dumas in respect of the termination of his duties as Executive Chairman" − in accordance with Article L. 225-42-1 of the French Commercial Code (Code de commerce) applicable at that date).

The payment of a severance payment is subject to the termination of duties as Executive Chairman resulting:

• ◆either from a decision by Mr Axel Dumas by reason of a change of control over the Company, a change in the Chairman of Émile Hermès SAS, which is an Executive Chairman of the Company, or a change in the Company’s strategy; or
• ◆from a decision taken by the Company.

Given the importance of the role of the Active Partner in a société en commandite par actions (partnership limited by shares) – who has the power to appoint and dismiss any Executive Chairman – and in the case of a legal entity, its legal representative, it was considered that the termination of duties as Executive Chairman of Mr Axel Dumas, which would result from the replacement of the Chairman of Émile Hermès SAS, was to be treated as a forced departure.

The criteria for granting severance payments are therefore strictly confined to cases of forced departure.

Moreover, the payment of such compensation is subject to the following performance conditions, such that the conditions of his departure are in equilibrium with the situation of the Company: achieving budget targets in at least four out of the five previous years (with revenue and operating income growth measured at constant rates), without deterioration in the Hermès brand image.

The Supervisory Board therefore considered that the deferred compensation commitment made to Mr Axel Dumas complied with the requirements of the Afep-Medef Corporate Governance Code.

No such agreement has been entered into with Émile Hermès SAS.

Non-compete indemnity

Mr Axel Dumas is not subject to any non-competition agreement, therefore no compensation is made in this respect.

No such agreement has been entered into with Émile Hermès SAS.

Supplemental pension plan

The total compensation of Mr Axel Dumas was determined taking into account the benefit of a supplemental pension plan.

Generally, Émile Hermès SAS, a legal entity, is not eligible for a supplemental pension plan.

Defined-contribution pension plan (Article 83 of the French General Tax Code)

Mr Axel Dumas is eligible for the supplementary defined-contribution pension plan established for all employees of the Group’s French companies that have joined it (decision by the Supervisory Board on 4 June 2013 approved by the General Meeting of 3 June 2014 − fifth resolution “Approval of related-party agreements and commitments”).

As with all employees of the Group:

• ◆the defined-contribution pension plan is funded as follows: 1.1% for the reference compensation for an amount of 1x PASS, 3.3% for the reference compensation between 1x and 2x PASS, and 5.5% on the reference compensation between 2x and 6x PASS. Reference compensation means the gross annual compensation in accordance with Article L. 242-1 of the French Social Security Code (Code de la sécurité sociale);
• ◆these premiums are shared between the Company (90.91%) and the beneficiary (9.09%);
• ◆the employer contributions are deductible from the corporation tax base, subject to corporate social contributions at the rate of 20% and excluded from the base for social security contributions within the limit of the higher of the following two values: 5% of the PASS or 5% of the compensation retained within the limit of 5x PASS (€235,500 in 2025).

Émile Hermès SAS, a legal entity, is not eligible for a supplemental pension plan.

Defined-benefit pension plan (Article 39 of the French General Tax Code – Article L. 137-11 of the French Social Security Code)

Mr Axel Dumas is also eligible for the supplemental pension plan established in 1991 for Company Senior Executives (decision by the Supervisory Board on 4 June 2013, approved by the General Meeting of 3 June 2014 − fifth resolution “Approval of related-party agreements and commitments”).

This provision is not limited solely to the Executive Chairmen but also encompasses a wider group of Senior Executives. It may be terminated, in the case of Mr Axel Dumas, by decision of the Supervisory Board.

In accordance with Order no. 2019-697 of 3 July 2019 relating to defined-benefit occupational plans, no new members may join this scheme from 4 July 2019 and no new conditional right to benefits may be awarded for periods of employment after 31 December 2019.

As a fundamental condition of the pension regulations, in order to be eligible for the scheme, beneficiaries must have reached the end of their professional career with the Company, have at least ten years of seniority as evaluated at 4 July 2019 given the provisions of the aforementioned order of 3 July 2019, and be eligible to draw pension benefits under the statutory French social security regime.

Each participant gradually acquires potential rights, calculated each year on the basis of his or her annual reference compensation, it being specified that 2019 is the last year taken into account when calculating such rights (in application of Order no. 2019-697 of 3 July 2019). These potential rights represent, depending on the seniority and for each year, a percentage of the reference compensation ranging between 0.9% and 1.5%.

If all the eligibility conditions are met, the annual pension under this scheme would be based:

• ◆on the average yearly compensation for the last three years;
• ◆on a percentage of the reference compensation, ranging from 0.9% to 1.5% per year of service (as at 31 December 2019). In accordance with the regulation, as Mr Axel Dumas has a length of service exceeding 16 years, this percentage is set at 1.50%. It is in any event, below the legal limit of 3%.

In addition, the regulation provides for the application of two ceilings to the final amount of the annual pension:

• ◆the amount of the annual pension is capped at 8x PASS, i.e. €376,800 in 2025; and
• ◆the sum of (i) pensions accrued in respect of statutory and collective agreement plans (excluding increases for children raised) including rights accrued in overseas pension plans, pensions resulting from any supplementary plan that may be put in place within the Hermès Group and (ii) the amount of the top-up pension resulting from the regulations is capped at 70% of the last reference compensation.

For information, subject to fulfilling the conditions of the plan at the time of the liquidation of his pension, the maximum amount of the future pension, limited by the plan’s regulations to eight times the annual social security limit, compared with the compensation received during financial year 2025 of the natural person Executive Chairman, would represent a replacement rate (excluding mandatory plans) of 4.81%.

The plan is financed by the Company through a contract taken out with an external insurance company, and, if necessary, additional provisions are recorded in the financial statements.

Émile Hermès SAS, a legal entity, is not eligible for a supplemental pension plan.

Defined-contribution pension plan (Article 82 of the French General Tax Code)

Mr Axel Dumas is eligible for the "Article 82"-type defined-contribution funded pension plan as provided for under the French General Tax Code. This plan is also set up for certain Senior Executives in the form of free share allocations calculated based on their fixed and variable compensation, this latest being subject to the achievement of performance criteria.

This plan provides for a gross annual contribution based on the “Reference Compensation” of the Executive Chairman, consisting, at the payment date, of (i) the annual fixed compensation for year N and (ii) the annual variable compensation awarded in respect of year N-1 and paid in year N (subject to approval by the Shareholders’ General Meeting).

The contribution is calculated by applying a rate to the Reference Compensation that varies from 0% to 20% depending on the achievement of the applicable performance conditions, as shown in the diagram below.

By way of illustration:

• ◆achievement of 80% of the performance conditions for the reference financial year: maximum payment of the contribution, i.e. 20% of the Reference Compensation;
• ◆achievement of 50% of the performance conditions in respect of the reference financial year: lower limit payment, i.e. 10% of the Reference Compensation;
• ◆achievement of performance conditions in respect of the reference financial year between these two limits (i.e. between 50% and 80%): payment of the contribution according to a straight-line increase;
• ◆achievement of performance conditions below 50% of targets: no payment.

The acquisition rate of the rights varies according to the achievement rate of the performance criteria, as follows:

The payment of contributions, the rate of which is set according to the principles and conditions set out above, constitutes a benefit for the Executive Chairman, fully subject to social security contributions and taxation on entry, entirely at the expense of the beneficiary.

These payments will be paid in full by the Company and subject to social security contributions.

Émile Hermès SAS, a legal entity, is not eligible for a supplemental pension plan.

The General Meeting sets the maximum annual total amount of compensation for the Supervisory Board.

The components of the compensation policy for Supervisory Board members are established by the Supervisory Board.

Since 2020, the compensation policy for members of the Supervisory Board has been submitted to the Ordinary General Meeting each year for approval (ex-ante vote).

The actual annual amount of compensation paid to the members of the Supervisory Board is determined by the Supervisory Board at the start of the year in respect of the previous year by applying the compensation policy and taking into account the individual attendance of each member during the previous financial year.

The Supervisory Board’s CAG-CSR Committee checks that the actual compensation of Supervisory Board members complies with the total amount set by the General Meeting and the compensation policy for the members of the Supervisory Board.

Since 2020, the actual application of the compensation policy (including the overall actual compensation paid, and/or awarded) of the Corporate Officers (including that of Supervisory Board members) and the actual individual compensation of the Chairman of the Supervisory Board will be submitted each year to the approval of the Ordinary General Meeting (ex-post vote).

The General Meeting of 30 April 2025 approved, at more than 99.99% and without reservation, the compensation policy for the members of the Supervisory Board (see § 2.8.5).

In accordance with the decision-making process described in § 2.8.1.3, the Supervisory Board, at its meeting of 9 January 2026, proposed renewal of this compensation policy unchanged from the previous financial year.

If a member is appointed during the year, the fixed component is shared between the outgoing member and his or her replacement, and the variable component is allocated according to attendance at meetings.

The compensation policy applies without interruption to members whose term of office is renewed.

There are currently no temporary exceptions from the application of the compensation policy for the Supervisory Board members subject to the occurrence of exceptional circumstances.

Supervisory Board members receive compensation in a total amount that is approved by the General Meeting and for which the allocation criteria are laid down in the Supervisory Board’s compensation policy.

Compensation paid to members of the Audit and Risk Committee and the CAG-CSR Committee is deducted from the total amount of compensation of Supervisory Board members.

The General Meeting of 20 April 2023 set the maximum annual amount of compensation allocated to the Supervisory Board and its committees at €900,000.

The allocation criteria (on a full-year basis) approved by the Board on 24 November 2023 and set out in Article 5.1 of the Board’s rules of procedure are as follows:

• ◆the maximum amounts that may be allocated to each member are set out in the table below;
• ◆the variable component proportional to the actual attendance at meetings is preponderant;
• ◆employee representatives on the Supervisory Board do not receive compensation as members of the Supervisory Board;
• ◆the variable component proportional to a member’s attendance at meetings is calculated by applying to the maximum amount of the variable component the ratio between the number of meetings attended (in the numerator) and the total number of meetings held during the last financial year (in the denominator);
• ◆no variable component is allocated to the Chairman of the Supervisory Board or the Chairs of the committees, since they must chair all meetings, unless they are prevented from doing so;
• ◆the fixed and variable components are determined by the Board at its first meeting of the year following the year for which the compensation is paid.

The allocation criteria include a fixed component and a majority variable component proportional to actual attendance at meetings (66.66% for the Board and 60.00% for the specialised committees).

No additional compensation is paid to Board members who are not resident in France. The attendance record and the corresponding allocation of annual compensation for a financial year are prepared by the CAG-CSR Committee and then approved by the Supervisory Board in the first quarter of the following financial year.

The members of the Supervisory Board of a société en commandite par actions (partnership limited by shares) may be bound to the Company by an employment contract with no condition other than that resulting from the existence of a relationship of subordination with the Company and the recognition of effective employment.

• ◆Mr Prescience Assoh (Sales associate – Hermès Sellier); and
• ◆Ms Laurence Dunand-Chatellet (head of the Other Hermès Métiers division – Hermès Textile Holding),

Supervisory Board members representing employees appointed on 18 November 2025

and Ms Anne-Lise Muhlmeyer (preparation manager – Ateliers d'Ennoblissement d'Irigny), Supervisory Board member representing employees from 15 November 2022 to 17 November 2025,

hold employment contracts within the Hermès Group and receive compensation in this respect that was not granted by virtue of their office. Consequently, and for reasons of confidentiality, their salaries are not disclosed.

No other members of the Supervisory Board are bound to the Company by an employment contract.

No options to subscribe for or purchase shares were granted to Supervisory Board members in financial year 2025, nor were any such options exercised by them.

No free shares were allocated to members of the Supervisory Board during the 2025 financial year (including to employee representative members).

In application of Articles L. 226-10, L. 225-38 to L. 225-43 of the French Commercial Code (Code de commerce), any agreement entered into directly or through an intermediary between the Company and:

• ◆one of its Executive Chairmen;
• ◆one of the members of the Supervisory Board; or
• ◆one of its shareholders holding a fraction of the voting rights greater than 10% or, in the case of a shareholder company, the company controlling it within the meaning of Article L. 233-3 of the French Commercial Code (Code de commerce),

must be subject to the prior authorisation of the Board.

These provisions are applicable to agreements in which one of these persons has an indirect interest.

Agreements entered into directly or through an intermediary between the Company and a company are also subject to prior authorisation by the Supervisory Board if:

• ◆one of its Executive Chairmen; or
• ◆one of the members of the Supervisory Board,

is an owner, partner with unlimited liability, Executive Chairman, Director, Chief Executive Officer, member of the Management Board or member of the Supervisory Board of the company.

The foregoing provisions are not applicable either to agreements on current transactions entered into on an arm’s length basis or to agreements concluded between two companies in which one holds, directly or indirectly, the entire share capital of the other, where applicable, after deduction of the minimum number of shares required by law. These agreements are communicated by the person concerned to the Chairman of the Supervisory Board, who communicates the list to the members of the Board and to the Statutory Auditors.

In accordance with the provisions of Article L. 225-38 of the French Commercial Code (Code de commerce), authorisation decisions of the Supervisory Board since 1 August 2014 are all supported by justification.

A review of the related-party agreements entered into during previous financial years and whose execution has continued over time is carried out by the Supervisory Board each year in accordance with the provisions of Article L. 225-40-1 of the French Commercial Code (Code de commerce).

Following the review of 2025, the Board had no comments to make.

None of these agreements changed significantly with respect to amounts or financial terms in 2025.

Related-party transactions are shown in chapter 5 “Consolidated financial statements”, § 5.6 (note 13).

Pursuant to the provisions of Article L. 225-37-4 of the French Commercial Code (Code de commerce), this report must disclose any agreements entered into, directly or through an intermediary, between, on the one hand, an Executive Chairman, a member of the Supervisory Board or one of the shareholders holding more than 10% of the voting rights of the Company and, on the other hand, another company controlled by said other party within the meaning of Article L. 233-3 of the French Commercial Code (Code de commerce).

These are not related-party agreements subject to prior approval by the Supervisory Board, as Hermès International is not a party to the agreement. Agreements entered into with a wholly owned subsidiary are not excluded (Order no. 2014-863 of 31 July 2014 relating to company law).

You are advised that no such agreements were entered into during the financial year ended 31 December 2025.

This procedure, which applies only to Hermès International and not to its subsidiaries, was approved by the Supervisory Board on 25 February 2020.

Its purpose is to enable Hermès International to periodically assess the appropriateness of the classification used for ongoing agreements entered into during the financial year, those that continue over several years, and any agreements that may have been modified.

An “Ongoing Agreements Committee” tasked with conducting the evaluation has been established; it comprises the following members as a minimum:

• ◆a representative of the legal, corporate law and securities law department;
• ◆a representative of the finance department.

The procedure first entails the presentation of:

• ◆the notion of agreements bearing on ongoing transactions entered into on an arm’s length basis and transactions deemed to be ongoing and entered into on an arm’s length basis within the Hermès Group;
• ◆the notions of related-party agreement and prohibited agreement;
• ◆the roles and responsibilities related to the identification of related-party agreements and the control and disclosure procedure applicable to them.

The procedures for the regular evaluation of agreements relating to ongoing transactions concluded on an arm’s length basis are then described:

• ◆periodicity of the assessment: annual;
• ◆nature of the work required to carry out the evaluation:
  • •determining each year the scope of the agreements to be assessed, for example by selecting a category of agreement taking into account duration, maturity, importance (in particular, financial), nature or by adopting a risk-based approach,
  • •assessing the relevance of the criteria used to distinguish between ongoing transactions concluded on an arm’s length basis and related-party agreements, and their correct application in the Company,
  • •carrying out a review of the terms and conditions applicable to these agreements in order to ensure, for those that may be revised or renewed in the coming year, that they still qualify as ongoing transactions concluded on an arm’s length basis, in particular in view of the criteria used,
  • •detecting any anomalies that could make it necessary to supplement existing internal control procedures;
• ◆consequences of the evaluation;
• ◆report to the Supervisory Board and follow-up.

In 2025, the Ongoing Agreements Committee conducted a review of the agreements relating to ongoing transactions and entered into on an arm’s length basis and concluded that all these agreements continue to meet these two conditions. A report was presented to the Supervisory Board, which took note of it.

In accordance with point 16.1 of Annex 1 to European Commission Delegated Regulation (EU) 2019/980, the direct interests of Senior Executives in the Company’s share capital as at 31 December 2025, as reported to the Company, were as follows.

In accordance with European regulation no. 2017/1129 of 14 June 2017 (Prospectus), supplemented by European Delegated Regulation no. 2019/980 of 14 March 2019, and the ESMA guidelines, the risk factors presented in this chapter are, as at the date of this universal registration document, those that the Hermès Group believes could have a material adverse effect on its activity, results, financial position or prospects. These are the risks specific to the Hermès Group identified in the Group risk mapping, updated in 2025.

Generally, the Group has set up a system enabling it to anticipate and control the risks identified. It is periodically updated to take into account regulatory, legislative, economic, societal, geopolitical and competitive developments. A detailed description of the management of these risks is presented in this chapter.

Risk factors are presented in five main categories according to their nature, the most material risks being presented first. The mapping below classifies these risk factors according to their potential impact and probability of occurrence, and therefore reflects the Group’s exposure, after taking into account the control measures implemented. It includes emerging risks and their changes. The impact of the risks identified is assessed using a multi-criteria grid defined at Group level and shared with the subsidiaries. The analysis criteria include, as an inseparable whole, financial, reputational and legal criteria, as well as criteria relating to social, societal and environmental responsibility.

The risks related to sustainable development were identified as part of the double materiality analysis, an exercise carried out collectively by the teams of the audit and risk management department, finance department, sustainable development department and legal department. Involvement at all stages of the audit and risk management department ensures consistency between the double materiality (see chapter 4 “Corporate social responsibility and non-financial performance”) and the mapping of Group risks, for which it is responsible. This consistency is notably guaranteed by the use of the same assessment criteria for risks and the contribution of the various Group risk-owning departments. This double materiality analysis resulted in action plans aimed at managing the risks identified.

The Audit and Risk Committee was involved in the risk mapping exercise and the double materiality analysis.

In line with the Group risk analysis, the Hermès Group’s policy regarding insurance is to transfer any exposure that is liable to produce a material impact on profits to the insurance market. The Group insurance programmes represent most of the insurance coverage for the subsidiaries. They are placed via the intermediary of brokers who are amongst the 10 largest French brokers and with first-rate insurance companies. The main international insurance programmes cover:

Other contracts have been subscribed to fulfil specific requirements, particularly in the context of building operations (new work or renovation) carried out as project managers.

The Corporate Officer liability and cyber risk policies were taken out respectively for periods of two years and one year from 1 January 2025, with AIG and Zurich respectively, as well as other well-known insurers. These cyber risk policies cover data recovery, business interruption related to a security incident, civil liability and costs, including in particular defence and notification costs.

In 2025, the Group did not suffer any significant losses.

In addition, 87 prevention visits by the property and casualty insurer were carried out in 2025.

At the same time, the Group's insurance department has undertaken cross-functional work on resilience to climate change. It rolled out a physical risk scoring tool and organised awareness-raising days for employees.

While Hermès has attained the stature of an international group, it remains a company with family values, dedicated to a culture and spirit of craftsmanship and seeks to cultivate strong values among its employees.

At the forefront of these values is the demand for quality, the very essence of Hermès’ activity. The Group’s commitment to quality applies not only to its products and services, but also to its management methods. Hermès attaches great importance to its Senior Executives’ managerial skills. Induction programmes for new managers and specific training sessions forge the Hermès culture. Everyone can thus understand their place in the organisation and integrate the House’s rules of conduct and integrity. The demanding quality-oriented values and commitment shared by employees also serve as a solid foundation to underpin behaviours and observance of stringent internal control policies and procedures. The culture of risk management, the management of teams and the ethics of the Company ensure the demonstration and balance of these values.

In this respect, an ethics charter has been in place and has been distributed to employees since 2009. The code of business conduct, which specifies the behaviour expected of the Group’s employees, has been supplementing it since 2012. These two documents are updated regularly. They are the foundation of Hermès Group integrity and ethics:

• ◆the ethics charter promotes respect for the broad fundamental principles. It is intended as an instrument of progress and dialogue, and encourages employees to discuss with their line managers in cases where the principles are difficult to apply or are open to misunderstanding;
• ◆the purpose of the code of business conduct is to raise employees’ awareness about ethics risks and to instil behavioural and alert reflexes.

The anti-corruption code of conduct, including concrete illustrations, is distributed to all employees (see chapter 4 “Corporate social responsibility and non-financial performance”, § 4.1.4 on the corruption prevention system). Since 2021, the employees most exposed to corruption risks have been required to complete a dedicated e-learning course. The code of conduct is also available on the Hermès Finance website.

These documents are available on “Our ethics” section of the Company intranet, and on the Hermès Finance website and must be formally acknowledged when they are sent to employees. Additional training on the Group's anti-corruption system and human rights is organised for operational staff, thus strengthening the Group’s ethics culture. Actions relating to ethics and compliance are presented in chapter 4 “Corporate social responsibility and non-financial performance”, § 4.1.4.

The sustainability disclosures have been prepared as part of the application of the legal and regulatory requirements of the European Corporate Sustainability Reporting Directive ("CSRD").

The Group endeavours to apply the normative requirements set by the ESRS, as applicable at the date of preparation of the sustainability report, on the basis of available information (for example, information required on policies, actions, measures or objectives), within the deadlines for preparing the sustainability statement. Uncertainties remain regarding the state of scientific or economic knowledge, as well as the quality of the external data used. Several interpretations of the texts remain possible, and additional clarifications from standardisation or regulatory bodies are expected, in particular on future simplifications of normative expectations.

In some cases, difficulties in accessing reliable data, particularly along the value chain, have forced the Group to resort to estimates that may be refined as the quality of available data improves. Forward-looking estimates and statements should be interpreted as set forth at the end of this report.

Over the financial year, the Group was nevertheless able to build upon a sector benchmark of sustainability reports published in 2025 in order to improve its understanding of expectations and make its reporting part of a continuous improvement approach.

The sustainability report corresponds to § 4.1 "Sustainability-related information”. The scope of this sustainability report covers all of the Hermès Group operations, including all sites, métiers and subsidiaries, as well as all regions, the scope of which is detailed in chapter 1 “Presentation of the Group and its results”, § 1.4. The scope of consolidation used for this sustainability report is identical to that of the consolidated financial statements, with the exception of companies consolidated by the equity method which are not included and have been deemed non-material as regards sustainability matters.

For acquisitions made during the financial year, once the materiality of an entity with regard to a required indicator is considered significant, information concerning it is included from the date on which control was obtained.

This sustainability report covers the Group’s entire value chain as well as its business model, as presented in § 4.1.1.5.

The reporting periods used are as follows:

Environmental information is collected on an annual basis ending at the close of the third quarter to enable timely consolidation and analysis of the data, with the exception of GHG emissions in the scope 3 category "Investments",  which are carried over a calendar year as presented in § 4.1.2.1.9, to take into account projects commissioned at the end of the financial year that could impact the reported data. There were no significant events in the fourth quarter of 2025 that would call into question the significance of these data compared with an analysis based on a financial year.

The time horizons used in the materiality exercise to assess the risks are specified in § 4.1.1.6.

In accordance with the "Quick Fix" delegated act no. 2025/1416 adopted by the European Commission on 11 July 2025, the Hermès Group applied the transitional measures planned for the 2025 financial year. As such, certain information relating to the S3 and S4 standards is not detailed in this report. As these standards concern matters that are material for the Group (see § 4.1.1.6.2), Hermès publishes the information required by paragraph 17 of ESRS 2.

In addition, Hermès has applied the provision allowing the publication of certain datapoints initially due in 2025 to be postponed for up to three years.

In accordance with ESRS 1, Hermès assessed the time horizon of occurrence of each IRO whenever the IRO in question was “material”, both in terms of impact materiality and financial materiality. The thresholds were set in accordance with the implementation guidelines published by EFRAG:

• ◆short-term (ST): one year (“the period adopted by the company as the reference period in its financial statements”);
• ◆medium-term (MT): more than one year up to five years;
• ◆long-term (LT): more than five years.

Hermès uses the same definitions throughout the report, in particular for the expected figures and for the objectives relating to different time horizons.

As part of a continuous improvement approach, Hermès has developed certain methodologies and worked on making the data more reliable in 2025.

Their main changes are as follows:

• ◆the climate physical risk analyses (E1), which have been supplemented in order to use more conservative scenarios as modelled in the Altitude(1) tool. More details on the results and the methodology used are available in § 4.1.2.4.2;
• ◆in this second year, Hermès identified and prioritised sites near biodiversity-sensitive areas (E4), also using the Altitude tool. Altitude comes as close as possible to the definition of sensitive areas recommended by the ESRS, and covers the main key biodiversity areas (KBAs), with no material divergence from the recommendations of ESRS E4. More precise information on this tool as well as on the results obtained, their processing and their use is available in § 4.1.2.4;
• ◆for the recognition of resource inflows required by ESRS E5, Hermès has worked on improving the reliability of data relating to materials, including materials from sustainable sources. Hides and precious stones that could not be reported last year have been included in the indicator published in 2025;
• ◆for greenhouse gas emissions accounted for in scope 3, the data for Transportation items (category 4 and category 9) have been recategorised for 2025 so that the breakdown between upstream and downstream complies with the GHG Protocol, with no impact on total emissions.

As indicated in the body of the report, the readjusted value for 2024 with regard to these new methodologies could not be recalculated for the last three indicators listed above (sites near sensitive areas, resource inflows and recategorisation of transportation data in the Group’s carbon footprint).

Any other comparative data restated compared to the data published in 2024 is specified in the document and mainly concerns the recycled water indicator presented in § 4.1.2.3.6 and the recycled waste indicator, presented in § 4.1.2.5.7.

The sustainability information may be subject to inherent uncertainty due to the state of scientific and economic knowledge and the quality of internal and external data used (data calculated for the value chain, for example). The subject of estimates concerning Hermès and its value chain is addressed in the following topical standards:E1 (energy consumption and scope 3 data in § 4.1.2.5.8), E2 (substances of very high concern in § 4.1.2.2.7), E4 (sites located in sensitive areas in § 4.1.2.4.2) and E5 (resource inflows in § 4.1.2.5.6). In addition, the quantification of certain sustainability-related information, in particular environmental information, is subject to estimates and judgements based on experience and internationally recognised sustainability standards as well as the best information available to date. These estimates are sensitive to methodological choices and the assumptions used to prepare them.

In the context mentioned in the introduction, the Group has initiated work that it intends to continue in the coming years.

The transition plan was drawn up in the following context: SBTi validated the emission reduction objectives for scopes 1, 2 and 3 (horizon 2030) at the end of 2021, based on a reference year of 2018, including a reduction objective for the relative value of scope 3 emissions, whose objective is to contain global warming “well below 2°C”, in accordance with SBTi sector recommendations at the time of its certification. There is no scope 3 emission reduction objective in absolute value as of this date. Thus, Hermès presents in its sustainability report targets for 2030 and does not present targets for 2050, in line with its SBTi objectives. Moreover, in this second reporting year, Hermès is not in a position to communicate on the consolidation of the quantification of decarbonisation levers for scope 3 emissions implemented and planned in the various Group entities, or to disclose the full capital expenditure (CapEx) and operating expenditure (OpEx) related to the transition plan. 

Projected emissions trajectories are likely to vary due to future changes in the climate scenario and/or other parameters (e.g. changes in the global level of emissions, available technologies and/or economic outlook); this could lead Hermès to review its methodology. Hermès continues to monitor these developments, as well as any improvement in the visibility, quality and/or availability of data, and will continue to assess the need to revise its benchmarks and objectives if necessary.

In setting its objectives, Hermès relies on its own assessment of what it considers reasonable. The achievement of these various objectives depends on several elements: the successful implementation of initiatives aimed at achieving them, but also the achievement of other essential preconditions and considerations, which may or may not be beyond its control and impede the achievement of these objectives and/or the successful implementation of these initiatives. Hermès intends to continue to evaluate both its objectives and the ad hoc initiatives set up, and to make any adjustments it deems necessary in light of the above.

The Group aims to review its carbon emission reduction targets during 2026, which will involve a change in the methodologies for calculating baseline emissions and scopes, as well as an adaptation of the Group's decarbonisation trajectory and levers.

Hermès has also indicated in this sustainability report that it is not able to quantify certain data points as required under ESRS, of which the main points are: resources inflows related to finished products (E5-4-31) and the gender pay gap (S1-16-97) (2). 

Hermès will continue its efforts to supplement this information and increase the compliance of its transition plan with respect to ESRS,, taking into account best practices, market recommendations and new regulatory and normative provisions.

The table summarising the incorporations by reference is available in the notes to this report in § 4.1.5.1.1

Hermès, present throughout the world, is an independent House supported by family shareholders, a sign of stability and longevity.

The House benefits from an experienced and balanced governance, allowing proper consideration of sustainability matters and issues in its strategy.

Hermès details the composition and role of its administrative, management and/or supervisory bodies in chapter 2 "Corporate governance". For Hermès International, these bodies are the Executive Management and the Supervisory Board. The cross-reference table below highlights the sections relating to the information on the administrative, management and supervisory bodies as structured in chapter 2.

The Executive Management plays an active role in the definition and implementation of the policies, actions and results associated with the most material impacts, risks and opportunities (IRO). In 2025, several joint sessions were held with the Group's Executive Committee in order to validate the major strategic orientations relating to the disclosures concerning the IROs that were material for the Group, monitor the objectives and associated results, and ensure that the resources allocated were appropriate, as well as make any necessary adjustments. 

Sustainability governance as structured at Group level is as follows:

The Sustainable Development Board comprises directors of the Group’s main central functions and integrated supply chains. This Board oversees the implementation of the CSR approach, steers major cross-functional projects, oversees the roadmaps of the House’s main entities, launches and monitors ad hoc working groups, and identifies key decisions to be submitted for approval to the Executive Management and its Executive Committee. It is led by the sustainable development department.

Reporting to a member of the Executive Committee, this proposes and implements the Group’s strategy and oversees the approach taken by the committees and all functional and operating departments and Group subsidiaries, both in France and internationally. It monitors achievements, coordinates the operation of various committees, provides support to local committees and manages, with its internal partners, cross-functional projects and non-financial reporting.

To complement the Board’s functions and structure the management of the sustainable development function within the Group, this body brings together the sustainable development directors of the métiers, sustainable development functions and subsidiaries within the House. This Committee addresses the management of the entity’s roadmaps and promotes discussion on cross-functional training and internal communication issues.

Composed of more than 100 members representing the main métiers and central functions, as well as the French-speaking distribution subsidiaries, it analyses the technical and functional aspects of the projects carried out by the various entities of the House and enables its members to share best practices and topical sustainable development information.

Led by the main métiers and subsidiaries, they initiate and monitor the actions undertaken. These bodies may be supplemented by management and ad hoc committees when new sustainable development projects are implemented by subsidiaries and entities. Cross-functional committees, led by Group departments, manage issues, often of a medium-term nature, that are of common interest. They focus in particular on issues relating to recycling, materials innovation, the circular economy, sustainable construction and logistics. In 2025, for example, a cross-functional committee bringing together the sustainable development managers of the distribution entities was created in order to accelerate the rollout of the sustainable development priorities applied to this activity. In an extension of existing systems, a dedicated mitigation committee, led by the sustainable development department, was set up to structure and coordinate concrete and concerted action plans aimed at better controlling and reducing the Group's carbon footprint.

These are responsible for leading the approach at their level and for committing to a CSR roadmap each year, coordinated and monitored by the Group sustainable development department. The Group’s main métiers and subsidiaries have a part-time or dedicated sustainable development manager.

The Group's Supervisory Board is involved, through its committees (see chapter 2 "Corporate governance", § 2.5.6), in supervising the publication of information and data related to the impacts, risks and opportunities identified, in particular through its committees. In 2025, the multi-year training programme initiated in 2023 continued, thus enabling all the challenges of the House's strategic framework, as well as the IROs that this strategy addresses, to be overseen in full (see chapter 2 “Corporate governance” § 2.5.6.1.2.). 

The Supervisory Board, in accordance with the powers granted to it (see chapter 2 "Corporate governance", § 2.5.6.2), through its two committees, is also responsible for overseeing the processes, controls and procedures in place to address issues relating to the IROs identified. This role involves regular presentations by the House’s experts on the House’s major sustainable development issues (i.e. Group sustainable development department, finance department, human resources department, compliance department, industrial department, audit and risk management department, etc.). These presentations make it possible to verify in particular the definition and achievement of the targets for the various material IROs.

Lastly, in November 2025, the Supervisory Board reviewed the results of the work to update the Group's double materiality analysis. It issued recommendations to support the operational teams in their analysis, and a finalised analysis was presented to the two Supervisory Board committees in March 2026.

The majority of Supervisory Committee members (excluding employee representative members) have skills in one or more areas of sustainability. These skills enable adequate supervision of the management of information and data relating to material impacts, risks and opportunities, within the framework of the role strictly allocated to the Supervisory Board. In addition to the aforementioned training programme, Supervisory Board members also benefited from awareness-raising conferences on environmental issues led by WWF France (World Wildlife Fund). Details of the training received by members of the Supervisory Board as well as attendance statistics are available in chapter 2 "Corporate governance", § 2.5.6.1.2.

Alongside other members of the Executive Committee, the Executive Management drives compliance with ethics rules, applying a firm policy of zero tolerance of any breach of internal policies relating to compliance. Thus, the governing bodies’ commitment in terms of business conduct can be seen at the Group’s highest level. In addition, the Executive Vice-President Corporate Development and Social Affairs receives reports on the work of the Compliance and Vigilance Committee from the Legal Compliance Director and the Group General Counsel. In this way, these subjects are supervised directly by the Executive Committee, which supports the Executive Management. 

The Hermès Supervisory Board monitors in particular matters relating to business conduct covered by the 2.1.4. standard. This covers in particular the fight against corruption, ethical and balanced relations with suppliers and the duty of care. The Supervisory Board’s expertise on business conduct matters is also presented in chapter 2 “Corporate governance”, § 2.4. Thus:

• ◆the Supervisory Board is regularly informed of the ethics and compliance programmes as well as the progress of the Group’s corruption prevention plan, in accordance with the Sapin II law, notably through its Audit and Risk Committee;
• ◆since 11 September 2018, the Supervisory Board’s rules of procedure include missions relating to the system for preventing and detecting corruption and influence-peddling;
• ◆in 2025, Hermès published the third update to its vigilance plan(3) and continues its continuous improvement approach to the Group’s vigilance, including: a strengthened risk mapping methodology, an in-depth risk assessment, the continued rollout of risk mitigation measures and the development of the whistleblowing system. In this respect, a presentation was made to the Audit and Risk Committee on the measures put in place to strengthen all the key processes implemented in the Group, in particular those relating to the assessment of third parties and the H-Alert! whistleblowing system.

In 2025, as in 2024, the issues covered by the Group's most material IROs were the subject of dedicated presentations to the Audit Committee and the CAG-CSR Committee, which reported on this work to the Supervisory Board. The Executive Management is involved in more direct oversight of the policies and actions associated with the main material IROs, as well as the monitoring of Group targets, included in the double materiality analysis. In 2025, the Group included in the Executive Committee's work programme several sessions dedicated to the requirements of the CSRD, demonstrating a strong commitment at the highest level to in-depth control of IOs and material matters.

The Executive Management reviewed, as part of dedicated training sessions:

• ◆the IROs relating to eco-design and the circular economy (E5); 
• ◆the IROs relating to own workforce (S1);
• ◆the IROs relating to communities (S3);
• ◆the IROs relating to consumers and end-users (S4).

The Supervisory Board reviewed the following topics (as detailed in chapter 2 “Corporate governance”, § 2.5.6.2):

• ◆the assessment of the CSR criterion on which the variable compensation of the Executive Chairmen for 2024 was based;
• ◆the external evaluation;
• ◆the guidelines for the 2025 financial year;
• ◆presentation of CSR risks (jointly with the Audit and Risk Committee);
• ◆review of Hermès International's sustainability report (jointly with the Audit and Risk Committee);
• ◆the presentation of the work of the sustainability auditor (jointly with the Audit and Risk Committee);
• ◆presentation of the "transmission" section of the Fondation d'entreprise Hermès.

The Executive Management receives a portion of variable compensation set by the Articles of Association (known as “statutory compensation") which is subject in part (10%) to a CSR criterion consisting of three quantifiable indices measured each year:

• ◆decoupling of activity growth at constant scope and exchange rates and the evolution of industrial energy consumption;
• ◆Group initiatives in favour of gender equality;
• ◆actions taken to promote the Group’s local presence in France and around the world, outside of major cities.

Details relating to the implementation of this criterion and the achievement of this objective are given in chapter 2, “Corporate governance”, § 2.8.

Given the role assigned to the Supervisory Board and the compensation policy for Board members, as described in chapter 2, "Corporate governance", § 2.8, this compensation is not subject to performance criteria. It includes a fixed component and a variable component, based on the attendance of Board members. As a reminder, the employee representative members of the Supervisory Board do not receive any compensation for their duties.

To date, the compensation of Hermès’ Executive Corporate Officers does not include any incentive criterion directly related to climate change mitigation or adaptation. Nevertheless, a corollary criterion determines the receipt of part of their variable compensation, i.e. the decoupling of industrial energy consumption and growth in activity.

The table relating to the due diligence statement is available in the notes to the sustainability report in section § 4.1.5.1.

Sustainability issues are taken into account in the Hermès Group's internal control system.

The Group’s internal control is organised into a network of correspondents, coordinated by a central unit. It operates under the authority of the audit and risk management department, which ensures the rollout of an internal control system adapted to the Group’s issues and risks across all processes (see chapter 3 “Risk factors and management”, § 3.3.4).

For this second year of compliance with the CSRD, the Group's internal control:

• ◆built on the system set up the previous year; and
• ◆initiated new actions to strengthen this system.

A universe of CSRD risks was defined, allowing the analysis and ranking of indicators with regard to these risks. Work thus focused on quantitative metrics presenting a higher risk of error (e.g. new or manual processes, use of a new tool, complex restatements, high expectations of stakeholders, etc.) (4).

For these quantitative risk metrics, the central internal control unit ensured the clarity and precision of the associated reporting protocols in order to ensure homogeneity of the data reported by all contributors (precision of definitions, scope, calculation methods, etc.). Where appropriate, these protocols also specify the expected key controls to ensure the reliability of the data, from their collection to their publication in the final report, including calculation, consolidation, restatement and correction if necessary. These documents have been supplemented and clarified taking into account feedback from stakeholders for the previous financial year.

In addition to the initial requirement to formalise and document level 1 controls, level 2 controls, carried out by internal control officers within entities and subsidiaries, were undertaken for a selection of quantitative risk indicators deemed to be priorities. For this, these officers took part in training, Q&A and workshops aimed at providing them with the technical elements necessary to carry out their verifications.

Following the same approach, the strengthening of the internal control culture continued with training for contributors provided by the central internal control unit. This involved reminding participants of the objectives of the system, the roles and responsibilities of each function, as well as expectations in terms of documentation.

Thus, central internal control based its work on the level 1 controls carried out at the level of sites and entities/subsidiaries, as well as on the new level 2 controls carried out by local internal control officers, to verify the reliability of the data collected locally. At the consolidated Group level, central internal control verified the consolidation of the quantitative risk indicators identified as priorities. It thus ensured that the controls at the level of consolidation of the central departments were carried out and documented to the expected level of requirement.

Furthermore, the transfer of the tools for collecting quantitative environmental indicators to a new single collection tool in 2025 required the involvement of central internal control: verification of the proper transfer of historical data, review of accesses prior to the official opening of the collection campaign, use of the new tool's automatic checks whenever possible. The Group relies on information, data, software and tools provided by third parties, which may evolve or be subject to changes, and which may contain inaccuracies, errors or incorrect results that the Group may not be able to identify. Moreover, given the possibility of changes in market dynamics, climate science and technologies, it is possible that the Group may have to revise its approach.

To facilitate the appropriation of sustainability matters, the conclusions of the reviews carried out and the progress of the project in terms of internal control were presented at CSRD project steering committees. These committees include three members of the Executive Committee: the Executive Vice-President Finance, the Group Director of Human Resources and the Executive Vice-President of Governance and Organisational Development.

A presentation of the work to update the double materiality analysis was presented to the Audit and Risk Committee in November 2025. The entire sustainability report, including the conclusions of the certification report (§ 4.2), was reviewed, and the conclusions presented to the Audit and Risk Committee meeting in March 2026.

Details regarding the major groups of products and services offered by the Group, including its major geographic markets over the reference period, are provided in chapter 1 “Presentation of the Group and its results”, § 1.5.

The breakdown of the Group’s own workers is described in chapter 1 “Presentation of the Group and its results”, § 1.4, and § 4.1.3.2.

The Group has no activity in the sectors listed by ESRS 2 in point 40b (fossil fuels, production of chemicals, weapons, cultivation and production of tobacco).

Since 1837, Hermès has been producing exceptional objects designed to last and be passed on. Moreover, with its craftsmanship savoir-faire, its exclusive distribution network and its creative heritage, Hermès integrates sustainability into all aspects of its business model, taking into account its product and service offering, its customers, geographical areas and relations with stakeholders.

Hermès ensures that all its products are responsibly manufactured, using sustainable materials, with a frugal use of materials, an approach based on craftsmanship and by applying the principles of the circular economy in its production approach as much as possible. The Company is also working to reduce the carbon footprint of its activities, contributing to the transformation of its supply chain practices and favouring less emitting practices in its direct operations (i.e. energy efficiency, adoption of renewable energy, optimisation of logistics transport chains, etc.).

The Company strives to meet the growing expectations of its customers in terms of transparency on ethics and the environment. Since 2022, it has been gradually providing them with a labelling on the environmental footprint of its products. The House is particularly attentive to respecting the personal data of its customers, § 4.1.3.5.

Hermès is present in 45 countries, and its commitment to sustainability is global, yet adapted to local specificities. The Group is mainly present in France (62% of its own workers, and 63 production sites). In each region where the Company operates, it works with local partners to promote sustainable practices, support a community presence and comply with local environmental regulations. In 2025, the Group initiated a process to measure the socio-economic impacts generated in France, and in the most significant regions in which Hermès is present. The results of this analysis are available in § 4.1.3.4.3.

Hermès maintains close relationships with its internal and external stakeholders to achieve its sustainability objectives, objectives that are based on a long-term approach and the building of trust. The procedures for dialogue with Group employees are described in § 4.1.3.2. For external stakeholders, dialogue is fuelled by long-term relationships of trust. An example of this is the average length of relationships between Hermès and its top 50 direct purchasing suppliers, which is 21 years (5). The Company undertakes not only to engage in dialogue with its suppliers, customers, employees and local communities, but also to contribute, at its own level, to the adoption of more responsible practices (e.g. raising awareness among and sharing information with its customers, supporting and transforming its suppliers’ practices, dialogue and joint development with local public authorities, etc.).

Hermès has adopted a system for assessing its products and services, as required for its sustainability objectives. Sustainability, the quality of the raw materials used and the quality of the savoir-faire are intrinsic goals for Hermès’ products. This assessment includes, for example:

• ◆an analysis of the environmental impact of the raw materials used (for example: leather, cashmere, silk, cotton, precious metals);
• ◆management of the environmental footprint throughout the product life cycle;
• ◆the implementation of eco-circular manufacturing practices (including reuse and recycling);
• ◆measurement of the biodiversity footprint related to the consumption of the natural resources needed for Hermès objects;
• ◆limitation of unnecessary single-use plastics (particularly in product packaging and for packing items);

• ◆certain product ranges that can be based on a circular approach (for example, petit h, upcycled leather goods or ready-to-wear items, packaging for perfume and beauty products);
• ◆an after-sales service and repair service at each point of sale, and monitoring of the number of repair operations in the various markets;
• ◆raising customer awareness of sustainable consumption practices by training sales associates in sustainable development issues.

Backed by a history shaped by six generations, Hermès evolves with the times while always respecting tradition, transmission and innovation. Thus, true to its values of freedom, demanding savoir-faire and authenticity, the House of Hermès business model includes several strategic pillars focused on sustainability issues:

• ◆committed women and men united in a "family spirit": the values of the craftspeople and high standards drive Hermès' employees, and the company operates a social model based on four strategic priorities that define and affirm its uniqueness. This social model is described in more detail in § 4.1.3.2.2;
• ◆exceptional and sustainable materials: the House’s emblematic objects are made from raw materials, mainly of natural origin. Hermès limits its consumption of these exceptional raw materials by promoting their frugal use. The Group sources resources whose origin is controlled and certified, and even participates directly in the creation of social and environmental “best practices” in certain sectors (e.g. participation in the construction of the SAOBC (6) standard in the Ostrich sector);
• ◆craftsmanship production and a moderate and controlled environmental impact: Hermès is one of the lowest greenhouse gas emitters in the CAC 40 (7) and is committed to reducing its carbon footprint (SBTi reduction trajectory) and to even more rigorous management of water and waste resources;
• ◆a balanced and long-term relationship with its supply chain: thanks to long-standing relationships - some of which are more than 60 years old - Hermès exercises its duty of care with regard to the social, ethical and environmental practices of its partners. The Company supports and promotes changes in practices in order to prevent harm to the environment and breaches of human rights;
• ◆a strong local footprint, particularly in France: France is the heart of the Group’s production, source of 75% of its production, and location of its 63 production sites.

In 2015, Hermès developed a strategic framework to address the social, environmental and societal issues identified. This framework has structured its sustainable development actions around three axes (see figure below). This framework, which has been in place for 10 years, was updated in 2025 to better reflect the priorities and guidelines to which the House is now committed. For example, social issues are now managed under the aegis of Hermès' social model, as reflected in the update below.

This framework is based on a premise: “all artisans of sustainable development”. It constitutes the sustainable development reference framework applicable to all Group employees and entities. This strategic framework is based on appropriation and implementation of topics at a collective level, key factors in its sustainability.

The results obtained annually through the rollout of this approach are presented in the Group roadmap in § 4.1.1.6.

As part of this reporting exercise, the correspondence between the challenges of the new strategic framework and the Group's most material IROs was also updated.

Hermès stands out on account of a highly integrated upstream and downstream value chain. The Group continues its efforts to ensure the traceability and transparency of its sources of supply by working closely with a large network of direct (raw materials) and indirect (other goods and services) suppliers. Details of the production, manufacturing and distribution operations managed by the Group are set out in chapter 1 “Presentation of the Group and its results”, § 1.4.

The major challenges ahead as well as the solutions developed by the Group in terms of sustainability are described in chapter 1, § 1.10 “Outlook”

The Group’s interactions with its stakeholders take many forms. The following chart illustrates the various stakeholders with which the Group interacts in its value chain. The Group bases its stakeholder relations on three areas: inform, dialogue and collaborate.

All of these stakeholders are included in the Company’s due diligence and materiality assessment processes (IRO 2 - SBM3).

True to its culture of dialogue and attentive listening to its partners, Hermès has mapped the main modes of dialogue as well as the key expectations of its various stakeholders, presented in the table below:

The Group maintains balanced relationships with its stakeholders. They are particularly involved in the context of the development of joint projects benefiting both the Company and its communities (i.e. regional mobility plans, university chairs with academic bodies, supplier decarbonisation plans, etc.). Whenever necessary, the conclusions of this ongoing dialogue with stakeholders are shared with the governance bodies.

Creative and commercial freedom, a value at the heart of the Group’s strategy, guides Hermès’ business model. Hermès is deeply committed to dialogue with its stakeholders and has remained an independent creative house since 1837. To preserve its identity, these inherent values determine the choices and orientations of its business model.

Amongst the areas of its strategy that demonstrate this virtuous balance which favours the interests of its stakeholders, it is worth mentioning:

• ◆maintaining its craftsmanship production primarily in France, and supporting local employment in regions where it is located;
• ◆cultivating close relationships with suppliers, helping them in their development and improving management of social and environmental issues in the value chain;
• ◆developing a carbon emission reduction trajectory for emissions generated by its activities.

Hermès, a family business committed to humanist values, places its employees at the heart of its strategy. The Group favours local dialogue based on the exchange of information, listening to and expressing ideas, in order to inform and adapt its strategy.

This dialogue is based on several mechanisms: regular interviews between managers and employees to support career paths, a biennial survey ("Hermès Hears") measuring well-being and working conditions, as well as an ethics alert mechanism for reporting incidents and complaints. Employee feedback is incorporated into the social strategy thanks to dedicated HR governance. Details of these mechanisms for hearing employees are presented in § 4.1.3.2.2.

In France, dialogue with our employees is structured around specific bodies (H-Day, commission for monitoring dialogue with employees, Group Works Council). Internationally, equivalent systems exist, adapted to local practices, in order to contribute to continuous dialogue with employees in all the countries where Hermès operates.

Listening to the expectations of workers in the value chain is at the heart of the process of supporting suppliers towards more responsible practices. It is enabled by the true proximity, anchored in time, of the House’s partners and suppliers. Such an approach enables Hermès to adapt its control practices by focusing on the highest priority issues (safe and pleasant working conditions, decent compensation, etc.). The H-Alert! ethics whistleblowing line is accessible to all workers in the value chain, and makes it possible to prevent and identify possible situations detrimental to respect for human rights identified directly by the employees of its partner companies. In addition, a more direct dialogue with workers in the value chain can take place through interviews during field audits.

Collecting and listening to the point of view of workers in the value chain therefore has a direct influence on the Group’s sourcing strategy and practices. If practices are identified where these workers are at risk, Hermès initially seeks to support suppliers in resolving any problems identified, however if necessary, it may decide to suspend its supplies in the supply chain concerned, thus modifying its value chain, or even its product offering.

Dialogue with the local communities neighbouring Hermès’ sites and activities is mainly carried out through their representatives (public authorities, elected representatives, associations, representatives of indigenous communities). It focuses in particular on the challenges of employment, environmental protection, skills development, mobility, the provision of essential services (local shops, associations, etc.) and economic development. 

The Group’s local presence strategy, which is at the heart of its business model, is based on this dialogue with local stakeholders. Hermès adapts the solutions and initiatives it develops (training courses, École des Savoir-Faire, biodiversity projects, etc.) through dialogue with communities that may be affected by its activities.

The Hermès Group pays particular attention to any concerns and expectations of its customers. In this respect, the direct relationship between the customer and the sales associates is often a preferred channel. Although mainly intended for product quality and customer experience, the dedicated consumer telephone service is also a means for discussion and listening. Furthermore, the Group has put in place a specific system aimed at better addressing its customers’ expectations related to the management of their personal data (detailed in § 4.1.3.5).

In the context of the CSRD, Hermès updated its double materiality analysis in 2025 in order to identify the priority impacts, risks and opportunities (IRO) for the Group, in line with its business model and specificities. This update helps this sustainability report to reflect, with greater relevance and clarity, the social, environmental and governance issues that structure and transform Hermès' activity.

The first double materiality analysis, as well as the update work in 2025, was carried out with the assistance of a leading consulting firm. This updating exercise capitalised in particular on:

• ◆the contribution of internal thematic experts, during dedicated bilateral workshops on each pillar (E, S and G);
• ◆the use of sectoral benchmarks and comparative exercises, carried out following the publication of the first sustainability reports, in order to identify the material priorities addressed by Hermès' peers and comparable companies;
• ◆the critical review of external stakeholders, associated with the double materiality analysis exercise for the first year in order to supplement the internal perception of the issues, also carried out here for each pillar (E, S and G).

The governance set up for the Group’s second double materiality analysis is summarised in the table below:

In 2024, the methodology followed by Hermès for carrying out the double materiality analysis complied strictly with the rules set by the directive's ESRS 1, in compliance with the following steps:

• 1.step 1: identification of ESG issues on the basis of the topics and sub-topics suggested by AR16 of ESRS 1 and broken down into impacts, risks and opportunities (IRO) specific to Hermès;
• 2.step 2: assessment of the materiality of the IROs, i.e. their materiality given the Group’s activities (rating exercise);
• 3.step 3: consolidation and validation of the results of the double materiality analysis to identify the Hermès Group’s reporting obligations.

In accordance with the ESRS, Hermès links the significant impacts and dependencies resulting from the double materiality analysis to the associated risks and opportunities throughout the value chain. This analysis feeds into the Group's risk mapping and strategic decisions.

In 2025, the simplified update of this exercise consisted of a critical review and update of the first and second steps, in order to establish a list of material IROs more representative of the Group's operational reality.

It should be noted that the topics and sub-topics of AR16 below that were ruled out in 2024 remain not relevant:

The rating criteria used for financial materiality and impact materiality remain the same as those in the methodology used in 2024. As a reminder, these regulatory criteria are as follows:

• ◆financial materiality: scale of possible financial effects, and probability of risks and opportunities;
• ◆impact materiality: severity (measured by three factors: scale, scope and remediable character), and probability of impact if it is potential.

The rating scales used in 2024, as well as the materiality threshold (strictly higher than 2.5 for both financial materiality and impact materiality) have been maintained unchanged. As a reminder, these rating scales are based on the scales used by the audit and risk management department as part of the Group risk mapping (§ 3.3.1). This scale has four levels, with 1 being the lowest and 4 being the highest.

The thresholds used to assess the time horizon are aligned with the requirements of ESRS 1 (excluding items specific to an ESRS), according to the following methods:

Using the final list of material IROs established in 2025, Hermès conducted the following updates in workshops with its internal experts and a specialist consulting firm:

• ◆reformulation of certain IROs in order to better specify the scopes, targets or activities concerned;
• ◆deletion of certain IROs, as a result of revised scores placing the issue below the materiality threshold;
• ◆addition of IROs, due to reassessment of materiality in view of the importance of the issues.

The assessment of the materiality of the IROs is based on dialogue with both internal and external stakeholders.

The rating of the various impacts, risks and opportunities identified was based on the knowledge of the thematic experts interviewed during the workshops. In 2025, these internal experts also directly proposed, alongside the project committee, updates relating to the most material IROs (additions, deletions, scope clarifications), as well as their rating.

At the end of 2025, Hermès carried out three stakeholder consultations respectively with experts in environmental, social (Company personnel), and governance and human rights topics. These consultations made it possible to deepen the perception and understanding of the most material issues managed by the Group, and to take advantage of their critical eye in order to enrich the exercise and the disclosure carried out by Hermès as part of its sustainability report. These consultations also complement the online surveys conducted in 2024 on a broader panel of external stakeholders

The Group's double materiality analysis will be updated at least every two years, or annually if appropriate, depending on news and significant events, at the Group's discretion.

The 31 material IROs identified structure the House’s sustainable development policy, in line with the strategic framework previously defined.