AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais

7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais

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Combined general meeting

as of 2nd June 2009

Combined general meeting

as of 2nd June 2009


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general assessment of the year 2008

A contrasted year 1st half : strong growth in sales and results

2nd half : slowdown

8.4 %+ 4.0 %+ 14.1 %Current operating profit

8.6 %+ 5.2 %+ 12.8 %Sales

Total2nd half1st halfGrowth rate

Sales growth despite the crisis


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From strong to average growth

From weak to strong dollar and yen

Currencies which have modified travel flows

Currency effect which have brought sometimes dissuassive price

increases

2008 : a contrasted year


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Confirmation of a consistent style permanently reinvented

A seducing creation and a permanent offer renewal

Vision of a Herms craftsman

Long term strategy has been maintained :


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Our most legitimate product lineshave well progressed

- 2 %Distribution via specialised outlets

+ 11 %Distribution via the Herms exclusive network

- 5 %Other Herms Sectors

+ 10 %Ready-to-wear & Fashion accessories+ 11 %Silk & Textiles

+ 14 %Leathergoods & Saddlery

- 9 %Watches

- 4 %Tableware

+ 6 %Perfumes

Proforma changes at constant rates 2008/2007


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Our difference expressed though our stores and our rich offer

China, USA, Europe, France

Extension of our network has been pursued

Geographical balance strategy

Success


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As at end of 2008 : 11 branches 3 concessionaries

2008 turnover : 47 Mi.e. 3 % of the group total, and 1/7e of Japan

Strong growth : + 80 % in 2008 / 2007

after + 90 % in 2007/2006

Target to maintain a strong growth, with a yearly pace of 2 stores

openings

Strong developpment of our presence in Mainland

China


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Service improvement has been maintained Luxury Institute : Herms n 1

All staff stick to the corporate project, and possibility for all to

participate

Reactivity being renforced through an increased delegation anddecentralization

Success


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Japan : slight decrease, due to the crisis, recession, demographyand currencies

Watches : rescheduling of our network in Japan

Growth relays making a break, after several successful years

Further improvements


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Information by Sectors 2008/2007Ready-to-wear & Fashion

accessories

19 % 19 %

Perfumes7 % 7 %

Watches

5 % 7 %

Tableware3 % 3 %

Other Herms sectors5 % 5 %6 % 5 %

Leathergoods &

Saddlery43 % 42 %

Silk & Textiles12 % 12 %

Other Products


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Developpment of new activities

Herms Intrieur & Design

joint-venture with Wally

acquisition of 10 % in Jean Paul Gaultier bringing our

participation to 45 %

Achievements


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Creation of the Herms corporate Foundation

Achievements


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Support to the creation of young European designers

Achievements

1st edition : la lgret au quotidien


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Improvement of the supply chain being pursued :start in August 2009

Launching of the web site Les ailes dHerms :more than 250 000 visitors per month

Achievements


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2008 : environment

To minimize the use of natural resources

To adequate utilization of raw materials

Control of quantitative and qualitative material rejections

Reminder of our targets related to the environment :


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2008 : environment

Since 2002, water consumption has decreased by 40% at constantperimeter (*), as the increase of our industrial activity has been similar to

that of the group.

(*) excluding consumption of the 3 Soficuir tanneries since 2007

0

100 000

200 000

300 000

400 000

500 000

600 000

2002 2003 2004 2005 2006 2007 2008

Evolution of water consumption

Achievement :

In m3


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Currentrates


Growth in sales and steadiness of the current operating

margin at 25.5% of sales

Constantrates

Turnover

Current operating income

Net result

+ 10.2 %

+ 17.0 %

+ 9.0 %

+ 8.6 %

+ 8.4 %

+ 0.8 %


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Evolution of the current operating profit

Operating

improvement

Operating

improvement

+ 70+ 70

Currencyeffect

Currencyeffect

- 36- 36Current operatingprofit 2007

Current operatingprofit 2007

415 M415 M

449 M449 MCurrent operating

profit 2008Current operating

profit 2008


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Financial strength

25.5 %Operating margin

450 MNet cash

1 605 MEquity


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2008 : creation

Researc

h

Inspiration

Ideas

Skills

Passion

IndustryCraftsmanship

Innovation

Know-how


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2008 : innovation

Herms Editor : Josef Albers scarf

Bugatti Veyron Fbg

Cape Cod Great Hours


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2008 : meetings & talents

20 years of Men ready-to-wear

Storytellers on Silk

Un Jardin aprs la Mousson


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2008 : growth in all regions except Japan

Activity by geographical areas

+ 12 %Europe (excl. France)

+ 15 %Americas

+ 22 %Asia-Pacific (excl. Japan)

+ 10 %France

- 3 %Japan

Changes at constant rates


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2008 : balanced sales by geographical zones

breakdown of sales 2008 / 2007

15 %

(1) Including sales to airline companies

Others (1)

3 %

21 %

20 %

Europe(excl France)

22 %

18 %

Americas

Japan

24 %

17 %

3 %

22 %

20 %

Asia-Pacific(

excl Japan)

15 %

France


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2008 : the pace of new stores remains sustained

12 new branches

10 new concessionaries

13 refurbishments and enlargements of branches


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2008 : the pace of stores creations remains sustained

Concessionaries

136 145156

110 107

133

104

111

2004 2005 2006 2007

Branches

121

165

2008

286286

237237246246 252252

267267


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Human Resources


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2008 : human resources

439 new employees in 2008 Headcount amounted to 7 894 as at end of 2008

Many job creations :


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Job creations have continued in 2008

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

4 1504 150 4 2724 272

4 6424 642 4 9434 943

5 3615 3615 5945 594

5 8715 8716 1506 150

6 8256 825

7 4557 455

7 8947 894

2008

30


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Balance production / sales workforce

Support

17 %

Sales

38 %

Production

45 %

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Herms Manufactures

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France(primarily production 42 %)


Two third of workforce in France

Japan

9 %

Asia-Pacific(excl Japan)

11 %

Europe(excl France)

10 %

63 %

Americas

7 %

Women : 67 %

Men : 33 %

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Presentation of consolidated statements

3


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2008 : consolidated statements

1625

1055

- 570

- 70

Turnover

Gross profit

Administrative & commercial expenses

Other income & expenses

In millions of euros

1765

1140

- 612

- 79

2008 2007

449 415Current operating income

3


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5

35

+9

424

12

- 144

2

- 6

290Net income groups share

Non current other income & expenses

Operating income

Net financial income

Corporate income tax

Share of net income of associates

Minority interests


449

18

- 160

- 11

- 5

2008 2007


288

Current operating income 449 415

36lid d


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Distribution

Production

Financial investments

Others

In millions of euros 2008

88

27

5

40

160Total investments*

*excluding financial placements


Investments

378 lid d


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Cash flow


1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

125

162

221

242

273259

292306 322

357

379

2008


388 lid d


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Cash flow from operations

Investments

Change in operating working capital

Dividends

Share buybacks

Others

In millions of euros 2008

379

- 160

- 81

- 111

- 51

- 6

Change in net cash position - 30

Cash flow statement


398 lid t d t t t


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Shareholdersequitybefore appropriation

Net cash


450

1 605

2008

1 475

2007

480

Shareholdersequity and net cash


402008 lid t d t t t


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Assets

Non current assets

Inventories

Other current assets

Cash & cash equivalents

Total

As at 31st Decembre, in millions of euros

2008

998.0

523.6

320.5

485.8

2327.9

Simplified consolidated balance sheet


2007

844.5

432.1

258.6

529.9

2065.1



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Liabilities & Shareholdersequity

Shareholdersequity before appropriation

Provisions

Other liabilities

Total

2008

1604.8

69.7

653.4

2007

2065.1

1475.1

60.4

529.6

2327.9

Simplified consolidated balance sheet


As at 31st Decembre, in millions of euros


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Direction fees and remuneration

of the Supervisory Board (6e

)

Maximum total amount increased to 282 000

Including remunerations to the committees members Including a variable portion based on presence

Presentation of main resolutions

Resolutions on ordinary business


Resolutions on ordinary business

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Share buyback program (7e)

Authorisation up to 10 % of the capital

Maximum amount of funds to be committed :750 millions deuros

Purpose : ensuring the liquidity through a contract, cancelling,transfering, alloting to employees and stock options

Maximum purchase price : 200 euros

Term : 18 months

Authorisation to cancel shares (9e)

Authorisation up to 10 % of the capital

Term : 24 months


Resolutions on ordinary and extraordinary business


Resolutions on ordinary and extraordinary business

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Delegations of authority to the Executive Management

to carry out capital increase (10e

12e

) Common ceiling to 20 % of the capital

Term : 26 months

Delegations of authority to the Executive Managementto carry out capital increase reserved to employees (13e)

Authorisation up to 1% of the capital

Term : 26 months


Resolutions on extraordinary business



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Delegations of authority to the Executive Management to

grant stock options (14e

) and award bonus shares (15e) Term : 38 months

Common ceiling of 2 % of the number of existing shares for bonus

shares and stock options

Grant to the Executive Manager with performance conditions andobligation to keep the shares





47i f i l ii f i l i


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Change in the Articles of Association (16e)

Article 18.2 : to set up a renewal of the Supervisory Boardmembers by one third each year





482008 : dividend


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Dividend per share proposed by the Supervisory Board

2008 : dividend

Net dividendin euros

*After the 3 to 1 split carried out on 10th June 2006

2005

0.83

2006

0.95

2007

1.000.67

2004 2008

1.03

* *


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2009 Outlook

502009 : outlook


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2009 : outlook

The environment remains more than uncertain

Economic consequences of the crisis on purchasing power arestill to come

Japan and USA remain very difficult markets

The luxury goods sectors is affected by this mood

512009 : outlook


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To keep our way, Herms being strong of :

a steady vision : Herms craftsman and designer, confirminga strong style

a high profitability, which could go down in 2009

strong cash reserves, an essential asset

522009 : outlook


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Short term adjustments

Pace of investments

Manufactures : 2 projects delayed

Stores : 2 projects delayed

Hirings, except in our leather workshops and our new stores

Overheads : savings program

Tight control on inventories

532009 : outlook


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Development actions

Collections creativity

Merchandising and liveliness in stores

Supply chain, which will allow a better service in thestores

better product flows

And a better service to the final customer

542009 : outlook


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Four exceptional store projects which will open in the coming

years :

New York Madison Men space

Herms Maison in Shanghai

Geneva store

Large store on left bank in Paris

551st quarter 2009


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1st quarter sales : + 3.2 %

- 4.7 % at constant exchange rates

562009 : outlook


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The environment remains more than uncertain

An ambitious target for 2009

Sales : steady

Profitability : slight decrease

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In its history, Herms already went through

crisis and overcame them thanks to its vision, itsfinancial strength, its craftsmanship values, its

family shareholding and to its customersdreams.

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Documents

AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais