EQUITY RESEARCH – Hermes International Hermes International H01 / 2017 results and outlook Content 24 pages: Hermes International H01 / 2017 results Hermes International – impressive growth 2015 – 2017 Hermes Number one in the Luxury basket ranking 2017 Hermes Valuation – Balance sheet Hermes Valuation – Dupont analysis Hermes Share Price YTD - Chart Hermes Share Price Valuation - Multiple Hermes Share Price Valuation - DCF Why we think a share price of € 494 is not the ceiling Hermes Annual Overview 2012 -2016 /Income / Balance sheet / Cash flow Disclaimer

1. 1
• Web Address: www.ldksolar.com
• Revenue 2008: US$ 1526,6 Million
• Net Income 2008: US$ 70,2 Million
• Revenue 2009: US$ 1098 Million
• Net loss 2009: US$ - 217,2 Million
• Employees 2009 : 17280 (October 2010)
Hermes
Company H01 / 2017 Results and Outlook 2017
“Hermes a solid progress in luxury“
Equity and Market Research
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EQUITY RESEARCH REPORT

2. 2
Content
Hermes International Page
Hermes International H01 / 2017 results……………………………………..............................................................3-7
Hermes International – impressive growth 2015 - 2017… .............................................................................8
Hermes Number one in the Luxury basket ranking 2017…………………………………………………….. ........................9
Hermes Valuation – Balance sheet........................................................................................................ 10-11
Hermes Valuation – Dupont analysis..........................................................................................................12
Hermes Share Price YTD - Chart..................................................................................................................13
Hermes Share Price Valuation - Multiple............................................................................................... 14-16
Hermes Share Price Valuation - DCF...................................................................................................... 17-19
Why we think a share price of € 494 is not the ceiling ................................................................................20
Hermes Annual Overview 2012 -2016 /Income / Balance sheet / cash Flow........................................... 21-23
Disclaimer .................................................................................................................................................24

3. 3
Business Description:
Hermès International is saddled with a reputation for luxury. The company, which got its start making harnesses for horse-drawn
carriages, makes and sells luxury goods in nearly 15 categories, including leather goods, scarves, ties, watches, stationery,
gloves, tableware, jewelry, perfume, men's and women's apparel, footwear, textiles, and home goods. More than 170 years old,
the firm operates about 315 Hermès stores worldwide, with more than 50 shops in the US. It also sells its goods through about
20 other retail outlets. Descendants of founder Thierry Hermès own 74% of the company. Patrick Thomas became the first
person outside of the family to lead the company when he was announced as sole CEO in 2006.
Hermes International
24 Rue Du Faubourg Saint
Honore
Paris, 75008
France
Tel: 140174600
Fax: 140174709
www.hermes-international.com
Company Type: Public Subsidiary
Corporate Family: 245 Companies
Ultimate Parent: H51
Traded: Euronext Paris: RMS
OTC Pink: HESAY
Berlin Stock Exchange: HMI
Boerse-Stuttgart: HMI
Frankfurt Stock Exchange: HMI
Incorporation Date: 1957
Financials in: EUR (mil)
Fiscal Year End: 31-Dec-2016
Reporting Currency: Euro
Annual Sales: 5,202.2 1
Net Income: 1,100.3
Total Assets: 5,998.7 2
Market Value: € 44 867 Million (Oct, 2017)
Employees: 12,834
Hermes International - Overview

4. 4
Hermes International Revenue and Net Earning Overview in € Millions
4841
5202,2
3 754,8
4118,6
0
1 000
2 000
3 000
4 000
5 000
6 000
2013 2014 2015 2016
Revenue 2013 - 2016
(€ m)
1100,3
858,8
790,3
972,6
0
200
400
600
800
1 000
1 200
2013 2014 2015 2016
Net Earning 2013 -2016
(€ m)
changes at constant
exchange rates
Leather Goods and Saddlery 2,604 50% 2,274 14,0%
Ready-to-wear and accessories 1,099 21% 1,101 0,2%
Silk and textiles 515 10% 521 (0.8)%
Other Hermès sectors 336 7% 332 1,6%
Perfumes 262 5% 241 8,5%
Watches 158 3% 163 (3.2)%
Other products 228 4% 208 10,1%
Consolitated Revenue 5,202 100% 4,841 7,4%
2016
in millions of euros
2016
mix in %
2015
in millions of euros
Hermes International activities by sector € Millions
Hermes International - Overview

5. 5
Hermes International activities by sector – Annual Revenue in € Million 2016
Hermes was outperforming the Luxury Goods Sector in 2016
The Group’s consolidated revenues passed the €5 billion mark to reach €5,202 million up 7.5% . Recurring operating income, up
10%, amounted to €1,697 million (32.6% of sales) and net profit increased 13% to reach €1,100 million.
1. Leather Goods and Saddlery
Leather Goods and Saddlery, the original sector of Hermès, encompasses bags for men and women, clutches, briefcases,
luggage, small leather goods, diaries and writing objects, saddles, bridles and a full range of equestrian products and clothing.
In 2016, this activity represented 50% of the Group’s sales, with revenue of €2,604 million, an increase of 14% at constant
exchange rates.
2. Ready-to-wear
The Ready-to-wear and Accessories sector is the Hermès Group’s second largest sector, representing consolidated sales of
21%. In 2016, it generated revenue of €1,099 million, representing a slight increase.
3. Silk and textiles € 515 million
4. Other Hermes sectors  € 336 million
5. Perfumes  € 262 million
6. Watches  € 158 million
7. Others  € 228 million
The main revenue stream of Hermes business sectors is generated by Leather Goods and Saddlery and Ready-to-wear and
Accessories sector , both sectors account for 71 % of the overall revenue stream in 2016.
Hermes International - Overview

6. 6
The Group’s consolidated revenue amounted to €2,713 million in the first half of 2017, up 11% at current exchange rates and up
10% at constant exchange rates. Operating income rose 13% to €931.3 million, compared to €826.8 million in the first half of 2016.
The operating margin represented 34.3% of revenue, up from 33.9% at the end of June 2016.
Net financial income, notably financial income from cash management investments and foreign exchange gains and losses,
represented an expense of €9.8 million, compared with an expense of €20.3 million in the first half of 2016.
Net income attributable to non-controlling interests totaled €1.4 million, compared with €1.7 million at the end of June 2016.
After taking into account a tax expense of €322.5 million and income from associates (€7.6 million), consolidated net income
attributable to owners of the parent amounted to €605.2 million, compared with €545.4 million in the first half of 2016, an increase
of 11%.
A strong first Half year 2017 gives evidence that Hermes will achieve our estimates by 2017 and beyond.
Hermes takes also the number one position in our Luxury basket, were we have analyzed 14 companies in the sector and Hermes
was outperforming this companies in all aspects what investors like to see.
We tick into details in chapter company valuation.
Hermes International – H01 – 2017 Overview
KEY CONSOLIDATED DATA FOR THE FIRST HALF OF 2017
In millions of euros H1 2017 2016 H1 2016
Revenue 2 713,1 5 202,2 2 440,4
Recurring operating income 931,3 1 696,5 826,8
Net income attributable to owners of the parent 605,2 1 100,3 545,4
Operating cash flows 794,2 1 438,7 699,4
Investments (excluding financial investments) 105,2 285,4 107,6
Equity attributable to owners of the parent 4 564,5 4 382,6 3 863,3
Net cash position 2 434,3 2 319,8 1 513,4
Restated net cash position 2 530,4 2 345,3 1 625,4

7. 7
The Group’s
Hermes – Half year results 2015 - 2017 overview in charts
2713
2 299
2440,4
0
500
1 000
1 500
2 000
2 500
3 000
H01-2015 H01-2016 H01-2017
Net Revenue H01 2015 – H01 2017
(€m)
1903
1 529
1670
0
200
400
600
800
1000
1200
1400
1600
1800
2000
H01-2015 H01-2016 H01-2017
Gross Profit H01-2015 – H01-2017
(€m)
931,3
826,8
748
0
100
200
300
400
500
600
700
800
900
1 000
H01-2015 H01-2016 H01-2017
Operating Profit – EBIT H01-2015 - H01-2017
(€m)
605,2
483
545,4
0
100
200
300
400
500
600
700
H01-2015 H01-2016 H01-2017
Net Earning H01-2015 – H01-2017
(€m)

8. 8
Study
The complete study is as download available
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