hermÈs · 18 consolidated income statement hermÈs – 2013 results in m€ december 2013 %...

HERMÈS 2013 RESULTS

Presentation as of 20th March 2014

HERMÈS – 2013 RESULTS

2

HIGHLIGHTS

HIGHLIGHTS

ACTIVITY AND RESULT

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

• Operating profit increases by 9 % and operating margin reaches

32.4 % of sales, (32.1 % in 2012)

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

3


HIGHLIGHTS

ACTIVITY

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

rates) in all geographical zones(Japan included)

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

+15% in the 1st half)

• Negative currency impact amounted to approximately - 180 M€

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

4


HIGHLIGHTS

ACTIVITY

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

watches which were affected by the general downturn in the

watch industry

• All geographical zones contributed to growth

5


HIGHLIGHTS

TREASURY

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

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

December 2013

6


HIGHLIGHTS

INVESTMENTS

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

Renforcing production capacities and securing supplies

Completion of « Cité des Métiers » construction in Pantin

Developing the distribution network with the opening or

renovation of fourteen branches

7


HIGHLIGHTS

DISTRIBUTION NETWORK

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

Harrod’s Jewellery / Watches in London)

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

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

Beverly Hills and Milan

8


Beijing China World store Beverly Hills store

HIGHLIGHTS

DEVELOPMENTS

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

store

• Opening of Shang Xia store in Paris

9


Petit h space Shang Xia store

10

HIGHLIGHTS

COMMUNICATION

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

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

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

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

Düsseldorf, Toronto and Luxemburg

• « Leather forever » exhibition in Madrid


Saut Hermès « Festival des Métiers » - Beijing

11

ACTIVITY BY

GEOGRAPHICAL

ZONE


12

ACTIVITY BY GEOGRAPHICAL ZONE


(in M€)December

2013

change at

constant rates

France 613,1 10,4%

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

EUROPE 1 350,1 11,7%

Japan 463,2 6,5%

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

ASIA 1 711,2 13,1%

Americas 627,4 14,2%

Others 66,1 26,0%

TOTAL 3 754,8 13,0%

13

ACTIVITY BY GEOGRAPHICAL ZONE


14

ACTIVITY

BY

SECTOR


15

ACTIVITY BY SECTOR


(in M€)December

2013

change at

constant rates

Leathergoods - Saddlery 1,633.8 8.8%

Ready-to-wear & Fashion

Accessories 843.1 17.9%

Silk & Textiles 453.9 11.5%

Perfumes 209.7 14.8%

Watches 167.2 1.0%

Other Hermès sectors 216.4 36.5%

Tableware 61.2 4.4%

Other products 169.6 29.0%

TOTAL 3,754.8 13.0%

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ACTIVITY BY SECTOR


17

PROFIT

AND LOSS

STATEMENT


18

CONSOLIDATED INCOME STATEMENT


in M€December

2013

%

revenue

December

2012

%

revenue

Revenue 3,754.8 3,484.1

Cost of sales -1,170.3 -1,110.8

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

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

Other income and expense -151.1 -123.8

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

Other non-recurring income and expense - -

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

Change +8.9%


RECURRING OPERATING INCOME

19

0%

5%

10%

15%

20%

25%

30%

35%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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

24.2%

27.8%

31.2% 32.1% 32.4%

20

CONSOLIDATED INCOME STATEMENT


in M€December

2013

%

revenue

December

2012

%

revenue

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

Net financial income -23.5 -18.6

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

Net income from associates 2.0 -0.4

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

NET INCOME ATTRIBUTABLE TO OWNERS OF

THE PARENT790.3 21.0% 739.9 21.2%

Change +6.8%


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REVENUE

(in M€)

REVENUE AND NET RESULT

Revenue

Net result

Over 1 year Over 2 years

+7.8 % +32.1 %

+13.0 % +31.5 % NET RESULT

(in M€)

3 755

3 484

2 841

2 401

1 914

1 765

1 3311 230

1 4271 515

1 625

790740

594

422

289290

268

217 214247

288

0

400

800

1200

1600

2000

2400

2800

3200

3600

4000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

100

200

300

400

500

600

700

800

900

1000

Consolidated turnover Net result

22

INVESTMENTS


in M€ December

2013

Stores and distribution 95

Production and securing of supplies 83

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

Investments 232

23

IFRS CASH FLOW STATEMENT


in M€December

2013

December

2012

Operating cash flows 1,016 885

Change in working capital -74 -152

Investments -283 -398

Dividends paid -273 -742

Other changes -50 54

Change in net cash position 336 -352

Closing IFRS Net cash position 1,022 686

Opening IFRS Net cash position 686 1,038

24

RESTATED CASH FLOW STATEMENT


in M€December

2013

December

2012

Operating cash flows 1,016 885

Change in working capital -74 -152

Investments -232 -370

Dividends paid -273 -742

Other changes -67 56

Change in net cash position 370 -323

Closing restated Net cash position 1,091 721

Opening restated Net cash position 721 1,044

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2014 OUTLOOK

LONG-TERM STRATEGY TO BE PURSUED

• Alliance between creativity and exceptional craftsmanship.

• Control of our know-how.

• Reinforcement of the distribution network.

26

HERMÈS – OUTLOOK

• Development of growth relays

• Strengthening of production capacities and vertical

integration

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

Dumas », to be completed end of 2014.

• Development of the distribution network to be pursued

with around twenty branches being opened or renovated.

• Completion of the construction of the Hermès Maison in

Shanghai which opening is planned for september 2014.

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HERMÈS – OUTLOOK

hermÈs · 18 consolidated income statement hermÈs – 2013 results in m€ december 2013 %...

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