2015 first half r esu lts

Solid growth in sales and results

1,305

2011

1,591

2012

1,767

2013

1,907

2014

2,299

2015

418

2011

511

2012

584

2013

621

2014

748

2015

Watches (-1%) declined slightly within a general environment of a downturn in the watchmaking industr y. Dur ing the watchmaking trade fair in Basel, the business line presented its new model Slim d'Hermès, which received a very warm welcome. The other Hermès business lines (+12 %), including Jeweller y, Art of Living and Hermès Tableware, are continuing their development and confirming themselves as spr ingboards for growth, despite a

sales (in €m) current Operating incOme (in €m)

particularly high comparison basis.

The g roup's consol idated tur nover for the first semester reached €2 299 million, an increase of 21% at current exchange rates. Excluding consideration of the positive currency impact, the growth amounts to 9% . The operating income, up 20 % , amounted to €748 million (32.5% of sales) and net income reached €483 million (21% of sales).

SaleS by region at the end of June

(At compAr Able exchAnge r Ates unless indic Ated otherwise)

In the first semester, the turnover increased in all regions of the world:
- Japan (+20 %) generated an excellent performance over the first six months of the year, thanks to its selective distribution network;
- Asia excluding Japan (+7%) is maintaining its dynamism, despite the difficult context in Hong Kong and Macau;
- in A mer ica (+10 % ), where the en larged and renovated Seattle store reopened in June, the devel- opment potential has been confirmed;
- Europe (+7%) generated a good performance in the Group's stores.

SaleS by Sector at the end of June

(At compAr Able exchAnge r Ates unless indic Ated otherwise)

The growth of Leather Goods and Saddlery (+14%) was remarkable. Its development was supported by the ramp-up of the production capacities of the two new sites that opened in Charente and in Isère in June, as well as by the construction project for two new production units in Franche-Comté.
The Ready-to-wear and Accessories division (+8%) benefited from the success of its latest collections, notably in fashion accessories.
The Silk & Textiles business line (+5%) is contin- uing to enhance its offer of exceptional products, while growing within a more difficult context in Greater China.
Per fumes, that in the first half of 2014 benefited from the launches of Jour d'Hermès absolu and Terre d'Hermès eau très fraîche, improved by +4% .

operating income roSe 20%

Operating income g rew 20 % to €748 m il lion compared to €621 million in the first half of 2014. Despite the dilutive impact of currency fluctuations, operational profitability remained high at 32.5% of sales, close to the level reached at the end of June
2014 (32.6% of sales). Group consolidated net income amounted to €483 million, representing 21% of sales. The operating cash flow (€574 million) permitted to finance all operational and financial investments (€101 million), working capital needs (€108 mil- l ion ) a nd pay ment of t he ord i n a r y d iv idend (€308 million). After payment of the exceptional dividend (€522 m il lion), net cash amounted to

€952 million as at 30 June 2015.

In the first semester, Hermès International bought back 6,652 shares for €2.2 million, outside of trans- actions as part of the liquidity contract.
Hermès employed 11,857 people at the end of June
2015, of which 7,164 are in France.

outlook 2015

Thanks to the success of its unique company model, Hermès will continue its long-term development strategy based on creativity, control of know-how and safeguarding its procurements.
Despite economic, geopolitical and monetary uncer- tainties around the world, the Group is maintaining its medium-term objective of increasing the turnover at constant rates in the area of 8%. For 2015, operational profitability should be lower than 2014 (31.5%) owing to the negative impact of currency fluctuations.
Tr ue to its Par isian roots, Her mès invites us to look at 2015 through the eyes of a loafer. A loafer is capable of heading off the beaten track and looking at the world with eyes wide-open and savour a chance encounter, the joy of discovery, and even the benefits of a little break.
The summar y interim consolidated accounts have been audited by the statutor y auditors in accord- ance with applicable regulations and can be found at:http://finance.hermes.com.

distributed by