HERMÈS INTERNATIONAL 
Strong sales and earnings growth
2,401
2,401
2,841
3,484
3,755
3,755
4,119
422
594
594
740
740
790
859
859
Watches (-11%) remain penalized by the decline in the market, par- ticularly in China.
Other Her mès sectors (+15% ) continue to g row. Jewel ler y, which presented its new haute bijouterie collection at the 24 Faubourg Saint Honoré store in Paris, made a significant contribution to this dynamic with the success of the latest collections in gold.
net profitability maintained at 21% of SaleSOperating income tota l led €1 299 m i l l ion and operating marg in amounted to 31.5% of sales, down slightly from the al l-time high
achieved last year (32.4%) due to the negative impact of currencies.
Consolidated net income totalled €859 million and rose by 9 % , main-
SaleS (€m)
2014net income group'S Share (€m)
2014
taining net profitability at 21% of sales.
Cash flow (€1 049 million) was able to finance all operational and financial investments (€322 m il lion), distr ibution of the dividend
The Executive Management presented the audited accounts1for 2014 to the Supervisor y Board at its meeting on 24 March 2015. Revenue totalled €4,119 million, up 10 % and 11% at constant exchange rates. Operating income was €1 299 million (31.5% of sales), up 7% . Net profitability amounted to 21% of sales, as in 2013.
(at constant exchange r ates unless otherwise indic ated)
The strong growth in sales generated by the group's own stores in
2014 (+12.7%) results from solid advances in all regions. Hermès con- tinued the qualitative development of its distribution network with the opening of China's first Maison Hermès in Shanghai in September and the opening, renovation or extension of over fifteen outlets.
All regions posted strong advances
America (+15%) confirmed its development dynamic. In the United States, the Atlanta store was extended, and in Brazil the group took over the São Paulo concession. Japan (+13 %) achieved an excellent year, confirming the positive trend observed in the first nine months. Non-Japan A sia (+13 % ) posted a good per for mance in a contex t marked by recent events in Hong Kong and the general slowdown in China's market. Europe (+7%) continued to progress in spite of a difficult financial climate.
All sectors have grown on, with the exception of Watches
The remarkable growth in Leather Goods and Saddler y (+15%), for which demand remains very high, was supported by the increased pro- duction capacities of the two new sites in Isère and Charente. Plans to build two workshops are underway in Franche-Comté.
Ready-to-wear and Accessor ies (+12 % ) have been boosted by the success of the latest ready-to-wear collections and fashion accessories, with particular buoyancy in footwear.
The Silk and Textiles business line (+8 %) continues to expand its col- lections with new formats and the use of exceptional materials. A new online showroom and store for Hermès silk lamaisondescarres.com was successfully launched in September.
Per fumes (+10 %) continue to grow. Two lines were extended with new launches, Terre d'Hermès Eau très fraîche and Jour d'Hermès Absolu, which were warmly received.
1. Audit procedures completed, audit repor t in production.
(€285 million) and working capital requirements (€105 million). Net cash grew sharply and amounted to €1 422 million on 31 December
2014 versus €1,022 million on 31 December 2013.
I n 2 014, Her mè s I nt er n at ion a l re pu rch a se d 3 8 , 39 6 sh a re s for
€10 million, outside the movements made in the framework of the liquidit y contract.
On 2 September 2014, the companies Hermès International (Hermès) and Moët Hennessy Louis Vuitton (LVMH) reached a settlement agree- ment presented in a Hermès Group press release dated 12 Februar y
2015, and whose implementation terms are detailed in the press release distributed by LVMH on 3 November 2014.
The Hermès Group created nearly 700 new jobs, including over 400 in France, primarily in sales and at its production facilities. At the end of 2014, the group's workforce comprised 11,718 employees, of which
7,051 in France.
For 2015, despite the economic, geopolitical and monetar y uncertain- ties around the world, the target rise in revenue at constant exchange rates is around 8 % .
Than ks to the success of its un ique business model, Her mès w i l l continue its long-term development strateg y based on creativity and maintaining control over its know-how.
Staying true to its Parisian roots, Hermès is inviting us to see 2015 with the eye of the flâneur. Flâneurs have the gift of being able to escape from the ever yday to go out into the world with their eyes wide open and experience a chance meeting, the delights of discover y or the benefits of taking a break.
A proposal will be submitted to the General Meeting on 2 June 2015 to set the dividend at €2.95 per share. The interim dividend of €1.50 paid on 5 March 2015 will be deducted from the dividend to be approved by the General Meeting. In addition an exceptional dividend of €5 per share will be proposed to the General Meeting.
The complete consolidated financial statements will be available by no later than 30 April 2015 at http://finance.hermes.com and on the AMF website (www.amf-france.org).
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