Hermès International Société en commandite par actions (RMS) Earnings Call Transcript & Summary

Good morning, ladies. Good morning, gentlemen. We are very happy to see you in this beautiful venue, the Salle Pleyel for this new combined General Meeting of Hermes and International. Now as you know, this general meeting will be a look back at 2024, a year that, once again, was marked by outstanding performances for Hermes. I would like to thank all the members from the Supervisory Board who are in the room, as well as the candidates whose appointments you will get to vote on later on today. They are here in front of you, and I suggest that we introduce them quickly. I'm going to start off by Cécile Béliot-Zind, who's got a strong background in the agri-food industry. Since 2022, she's been the General Director of the family-led company Bel, prior to that, she garnered a broad experience at Kraft Foods and Danone, where she worked both in operational management and marketing for more than 15 years. In 2019, she joined the Bel Group as the Deputy General Director in charge of Strategy, Markets and growth. And then she became General Director 3 years ago. Moving on to Jean-Laurent Bonnifé. He joined the Banque Nacional de Paris in 1993. 4 years later, he was appointed as Head Strategist and then worked on the convergence with Paribas. In 2002, he joined the ExCo of BNP and ended up managing the whole banking network in France. In 2006, he also became a General Director of BNL in Italy. And then in 2008, he was appointed Deputy General Director and in charge of all the retail banking activities of BNP Paribas. And since the 1st of December 2011, Jean-Laurent Bonnifé is the General Director of BNP Paribas. And finally, Bernard Emié, he is a diplomat. He started working in 1983. He was Secretary at the Foreign Affairs office. He was an ambassador of France in India and in the U.S. And then he became a technical adviser to the foreign office and then a diplomatic adviser to the President of the Republic. In 2002, he was in charge of the North Africa and Middle East department at the French [indiscernible] office and then was an ambassador in London and Algiers. And then for 7 years, he worked at the French Intelligence Agency, the DGSE. I'd like to thank them very much for accepting to submit their candidacy to your approval. Moving on now, I suggest that we look at the lineup of the bureau. I'm therefore going to appoint as tellers the two shareholders with the most votes, Ms. Julie Guerrand for H51 and Mr. [ Etienne Puch ] for H2, who've kindly accepted to take on those role of tellers. Mr. Nicolas Huonic, Legal Corporate Director will be our session reporter. The accounting of the votes of the shareholders and the attendance sheet have been entrusted to the company Uptevia. Per the attendance sheet as it stands, we have reached the necessary quorum since we have exceeded 81%, but I'll give you the final percentage later on. The meeting can, therefore, legally and lawfully proceed. The attendance sheet will be closed off at 10:00 a.m. just before we vote on the resolutions. Our statutory auditors are also in the room as well as our representatives from the Economic and Social Committee, and I'd like to thank them for their presence. And finally, Md. Stephanie DeChambeau, a court bailiff, is in charge of making sure that everything is done in keeping with the rules and regulation. This general meeting is, as usual, filmed, recorded and streamed on the company's website. Its recording can be accessed on the website for a further 12 months. The document deck that you have and that I have on the table contains all of the documents set out by law. They've been sent out to the participants. All the documents set out by law and by regulation have been sent out to the shareholders and to the statutory auditors or have been made available. I would now like to thank all of the shareholders who are here in the room as well as the shareholders who are listening to us online. It's always a great pleasure to be in your company and to share with you the results of Hermes. I'd now like to hand over the floor to Henri-Louis Bauer, who's President of the Management Board of the active partner, Emil Hermes SS.

Good morning, one and all. Welcome to this General Meeting for Hermes International. 2024 was a year marked by many successes. Like every year, we came up with new creative products. We offered our clients new models in leather goods, ready-to-wear, silk accessories. We've also launched new perfumes, new jewelry lines and so much more. We have also made significant investments in our production with the creation of new leather good production units and the opening and renovation of many stores. This is how Hermes continues to forge ahead with consistency and in an agile manner. And you'll see the tangible and robust results in a minute. What are the key drivers of success? Well, first of all, it's the journey that we all take a part in. Our crafts people, people who make small leather goods, watches, all these people who make the magic of Hermes. What a pleasure it is also to discuss with our creators and designers and what joy is also to see the collections twice a year at the podium events. It's an opportunity for store managers to pick the best products and to sell them all around the world. A second important asset is the chemistry between our corporate model and our vision. We bring together the know-how of our craft people with the originality of our products. We pay great attention to every single detail, to quality, so that the products we make are timeless. This vision is shared by all of our employees. Every day, they impart these values to newcomers to make sure that we can continue on this beautiful journey together. Our third asset is the fact that we always remain true to our identity, to our story, our history, our value and our spirit. We are often copied by our competition, but this is a good sign. It is because we are so successful. And our clients remain loyal to Hermes because they know that the Hermes products are high-quality products. They are unique and they are original. They are products that can help them convey their personality and that they can hold on to for their whole life. We create exceptional pieces that will bring them a lot of joy, and our success also translates to our financial results. Our revenue has increased in all the regions around the world. Growth in all the divisions has been remarkable, and our profitability remains solid. And we have been successful whilst remaining true to our commitment to sustainable development. We have reduced our emissions, reduced our environmental footprint and continue to protect natural resources used by the group. This success is, first and foremost, a collective endeavor. And I'd like to thank Axel Dumas and his fantastic team for the great agility that they are -- that they showed off this year once again. Thank you to the ExCo, to the management committee, to all the employees of Hermes for their great contribution to this collective success around the world. This success, of course, it is also your success, dear shareholders, thank you for your loyalty, your support and for trusting in our shared future. And I would like also to say that the family has brought its unwavering support to the company that has kept its identity, its value across the generations. We're very proud of Hermes, very proud of our products and very proud to be on this journey with all of you. Thank you very much.

Ladies and gentlemen, dear shareholders, I am delighted to be with you today for the 2025 Annual General Meeting, and I would like to thank you for your loyalty. Let us take a look back at 2024. 2024 was a solid year for Hermes in a rather unpredictable economic and geopolitical context. Sales reached EUR 15.2 billion, progressing by plus 15% at constant rates. This result illustrates the strength of the Hermes model as well as the agility and commitment of its teams. This model is based on its vertical integration with a strong territorial anchor. It testifies to the desirability of our creations in all the divisions, carried forward by artistic directors demanding quality and preservation and transmission of know-how. Our loyal customers were present everywhere in the world. We pursued strategic investments in our production capacity and our network everywhere in the world in order to accompany the dynamic sales in the long term for the house. On the whole, over 3 years, Hermes strengthened its operational investments by EUR 2.5 billion, of which 60% in France. We continue to strengthen our teams. Hermes went beyond the threshold of 25,000 persons by end December, of which 62% in France. Faithful to its commitment as a responsible employer and sharing the fruit of its growth to those who contribute to it every day, Hermes distributed at the beginning of the year a bonus of EUR 4,500 to all its employees worldwide. Let's come back to our creations. Guided by the team of 2024, the spirit of the [ full board ], the creative teams of the 16 divisions headed by Pierre-Alexis Dumas gave free rein to their inventiveness. Let me give you some examples. In the leather collections, alongside the iconic pieces, the new models such as [indiscernible] or Arcon met with great success. The ready-to-wear and men and women's collections headed by Nadesh [indiscernible] and Véronique [indiscernible] received a very good welcome worldwide. Let us know the launch -- successful launch of the new women's fragrance Barenia created by Christine Nagel. The new [indiscernible] collection of Haute Bijouterie Les formes de la couleur by Pierre Hardy was revealed in Paris and presented in Beijing and Taipei met with great success. Beautiful successes of the home universe imagined by Charlotte Macaux Perelman and Alexis Fabry at the Milan Fair and the launch of the Tressages Equestres dinner set. Let us finally emphasize the launch of the Series 10 Apple Watch. We celebrated 10 years of our beautiful adventure with Apple and the success of Technocraft. I propose now to have a look at the film on the repair of object, which is part of our history. And as my grandfather, Robert Dumas used to say, luxury is that which can be repaired. [Presentation]

Don't try to do that at home with your handbags. Now obviously, we've continued to develop our production capacity. And in order to strengthen our vertical integration, we are pursuing our investments. In 2024, we inaugurated the 23rd leather workshop in Riom in the Puy-de-Dome in the former manufacturing plant tobacco factory. In 2025, we'll inaugurate a new leather workshop in L'Isle-d'Espagnac in Charente and 2 others are being worked on Loupes in Gironde and Charleville-Mezieres in Ardennes, which will open by 2026 and 2027, respectively. We've also announced last week the opening of a 10th leather hub in Normandy by 2028, which will strengthen the territorial anchor of Hermes. The investment capacity continued in other divisions, namely in [indiscernible], Normandy for Perfumes and Beauty and Limoges for tableware. Hermes also continued its investments in logistics center, the digital and IT systems in order to accompany the development of the group. And finally, the securing of supplies is something that continues with historical partners of Hermes. Hermes contributes thus in strengthening and expanding its pursuit of excellence in all divisions based on long-term relations. Our model is based on a strong vertical integration. 55% of the objects are manufactured in in-house exclusive workshops and a strong local anchor in France where we produce 74% of our objects. In France, 60 production sites and training sites of Hermes that you see on this map are organized by regional hubs of expertise. Proud of contributing to the development of fields of excellence, we also pursue accompanying our partners. These -- they benefit from a rigorous and lifelong training in order to preserve unique creations of -- quality of Hermes creations. Hermes cultivates long-lasting relations with its suppliers and partners in all divisions showing great loyalty. The duration of relation with our 50 biggest suppliers is of 20 years on an average. For the Leather and Saddlery division, our integrated development participates in the revitalizing of French territories. On an average, a leather workshop is created every 10 to 12 months. It welcomes progressively 300 people contributing to creating dynamism locally. During the opening of new production sites, we make sure that three criteria are respected, the respect of local expertise, permanence of know-how and job creation. Speaking of leather workshops, I invite you now to discover a film on the inauguration of the leather workshop in Riom in last September. Second hub in Auvergne Riom will create 280 jobs. [Presentation]

Let us now come to our exclusive retail network, exclusive and integrated, faithful to the balance in geographical zones and multi-local approach, we've extended our network to make sure that our collections can reach as close as possible to our local customers. New addresses have been inaugurated in the U.S.A. in Princeton, the University, in Asia, in Wuxi in China and opening -- two openings in Tokyo and Japan. Amongst the extensions and renovations, you have Lille and [indiscernible] in France, Atlanta in the U.S.A. or Shenyang, Shenzhen and Beijing SKP in China. At the end of December 2024, the group has 293 stores, of which 3/4 are operated by Hermes directly. On this photograph, you have the new store of Lille in France. In Hermes, each store is unique and the works of arts decorating the walls of our stores throughout the world are the expression of a tradition initiated by Emil Hermes. I propose we listen to Pierre-Alexis Duma, the Artistic Director of Hermes, who takes us to the heart of our decorations and our artistic heritage transmitted from generation to generation. [Presentation]

Thank you, Pierre-Alexis. The creation of Hermes is expressed also through the 17th vision of Hermes that of communication. In the second half of 2024, we've continued to talk about the world of Hermes through offset -- offbeat and joyful events for the public. The events of Hermes at the making in Mexico City and Zurich. We had 60,000 visitors who exchanged with artisans and discovered the wings of our manufacturing of our objects. And then Petit h made a stopover in Hong Kong and New York for the upcycling of materials that were sort of asleep. In Shanghai over 15,000 visitors played detective game to resolve the enigma the of Mystery at the Grooms. A new immersive experience at the heart of Hermes objects and have you discover this in a film. [Presentation]

A kind of escape game, to find the horses, very amusing, good fun. I missed almost every day, but -- now let's take a moment to share the CSR approach of Hermes. First of all, remaining faithful to its corporate model, Hermes will be distributing EUR 500 million to its employees for a free share allocation. This includes the exceptional bonus of EUR 4,500 and profit sharing in France and free share allocation to employees. Hermes also pursued its actions aiming at strengthening inclusion and diversity. Hermes has 48% of women in the high responsibility jobs. What is more, in order to guarantee an inclusive working environment, Hermes has committed itself to maintaining people with disabilities in the job, representing 7.90% of our employees in France, increasing constantly since 2017. The environmental strategy is being continued. The deployment of decarbonization plans for all the divisions has allowed for a reduction of 64% of emissions of Scope 1 and 2 in absolute values as compared to 2018, and a 50% in intensity of Scope 3 over the same period. The nature source of materials of exception is at the heart of our artisanal model and its preservation is essential in commitments founded on a scientific approach. Finally, we are reasserting our [indiscernible] to support of a dynamic local territory and a positive local footprint, promoting local jobs, namely in France. So the group has accelerated job creation in 2024, recruiting over 2,300 people, of which 1,300 in France in all the Metiers of Hermes. That is 7,000 job creations over 3 years, a figure that I'm particularly proud of. Hermes pursued its commitment as a socially responsible employer. At the end of December 2024, Hermes went beyond 25,000 employees, 62% of which are in France. We are committing ourselves to support local employment and value our talents. We're proud of 70% of our employees are shareholders. Transmission of our know-how is very important. We will continue to deploy the L'École Hermès des savoir-faire in new training schools with a 10 as a total number of these schools in France. Our commitment for diversity and inclusion remains a priority. You see here on the screen the strong progression of our employees over the last 10 years. Job creation for us is a source of joy. The group keeps a balance in its growth by maintaining a stable breakdown per sector and geographical region. Our artisans and, more widely, the employees in the production sector represents more than half the employees in 2024, which is the strength of our integrated artisanal model. The geographical breakdown of employees reflects the setup of a very integrated production tool with 62% of our employees in France. The employees outside of France occupy almost exclusively commercial functions. With the project on the L'de Hermes, it is nearly 900 employees who have had the opportunity of participating in projects rich with meaning connected to nature, environment, know-how, art and culture. May I present to you in pictures this program. [Presentation]

A beautiful program. Sometimes I laugh and say it serves no purpose, but it does serve a great deal. It's an objective that we give to all our HR managers. We don't always get them, but to give people very good memories, and it really helps. Our ambitions in environmental field is in line with COP21 and the climate-related objectives validated by SBTI. We are happy to confirm that the deployment of decarbonization plans are in all our operations and Métiers reduction of emissions in Scope 1 and 2 by 62% in absolute value as compared to 2018. We, therefore, can be in advance of our reduction trajectory by 50.4% by 2030. Our real estate reference system, very demanding, has allowed us to reduce our energy consumption of our buildings. The construction of a new manufacturing -- new constructions would be perfectly aligned to ambitions and requirements. And thanks to the work carried out by our suppliers and value chain, we've reduced the intensity of emissions of Scope 3 by 50.5% between 2018 and 2024. Our commitment for the preservation of biodiversity and natural resources is continued. In 2024, the group pursued its commitment in the science-based targets for nature approach to establish scientific objectives for the preservation of nature. We've also intensified our efforts in order to reduce uptake of water on our production sites, and we've reduced by 65% uptake in terms of intensity in 10 years. This testifies to our enhanced vigilance when we build in order not to put too much pressure on this resource. Our strong adapt to durability of objects and the approach of ecodesign, reuse and recycling are anchored in our artisanal values of Hermes. These approaches are reflected in the progression of the group of our extra financial ratings. Our corporate model is highly integrated in territory. Hermes has long-term links with its stakeholders and with its suppliers. We accompany them to attain the level of requirement and demandingness that group has fixed for itself in terms of social and environmental impact, namely in terms of our responsible procurement policy to clarify ambition. The dissemination of our CSR and sector-wide briefs continues with the complement of our suppliers. The group has called upon, for a long time, companies with social and solidarity-based companies on the increase every year. In 2024, Hermes has pursued its approach aiming at enhancing generous actions everywhere where it is. The Hermes corporate foundation starting its fourth 5-year mandate, EUR 61 million, develops its programs around four areas: sustaining creation, transmitting know-how, protecting the environment and encouraging justice based on solidarity. I would like to mention, for example, programs called Manufacture and Manuterra to sensitize children in schools on artisanal professions and the biodiversity challenges. Beyond the foundation, we have 400 solidarity-related operations that were sponsored in 2024, up to EUR 28 million. Let's discover the film's imprints on the world by Frederic Laffont program manufacturer created 2016 awareness raising of new generations, young generations on. . . [Presentation]

A big thank you to Frederic Laffont, who's been accompanying us for many years without any brief, and we discover with you sometimes these films. Let's now come to the activity in 2024. The revenue reached EUR 15.2 billion, up by 15% at constant exchange rates and 13% at current exchange rates. By end of December '24, all regions have flagged solid progression carried by value strategy of Hermes. In 2024, all the regions delivered solid performance. France, up 13%; Europe, plus 19% have delivered good progress. Japan, plus 23%, has enjoyed continued growth, thanks to its loyal local customer base. Asia, bar Japan, has made very good progress with increase in sales across the whole region. America, plus 15%, continues with its excellent performance. For the line others, you have mainly the retail activities of the stores from Dubai and Abu Dhabi that are now fully integrated. Here, you've got the geographical breakdown, which captures the gradual integration of the Middle East. Now let's take a look at the division breakdown in 2024. All the divisions, bar Watchmaking made solid progress. Leather goods and salary, plus 18%, great performance there. Clothing & Accessories, plus 15% with a strong momentum, thanks to its successful collection. Silk and Textiles, plus 4%, thanks to its diverse collection, both for men and women. Perfume and Beauty, plus 9%, a progress driven mainly by the new women's perfume Barenia. Watchmaking, minus 4%, had to deal with a more difficult backdrop and a high comparison basis. And finally, the other Hermes divisions, plus 17% as jewelry and [indiscernible] are also enjoying strong growth. The breakdown of the divisions also reflects the strong dynamic of leather goods. Eric du Halgouët, our CFO, is going to talk you through the results. But before this, I'd like to talk about the success of our partner riders, who won 5 Olympic medals. [Presentation]

Good morning, one and all. 2023 was an exceptional year. And in 2024, the group delivered a strong performance, both in terms of results and cash generation. The recurring operating income reached EUR 6.2 billion, up 9% and the adjusted available cash flow stands at EUR 3.8 billion, up 18%. On this graph, you've got the uptick of our revenue and net income across the last 4 years. Across the last 10 years, the annual growth rate for revenue and net income stands, respectively, at 14% and 18%. Our revenue exceeds the EUR 15 billion threshold in spite of the negative currency effect to the tune of EUR 200 million, which is mainly attributable to the depreciation of the Japanese yen and the Chinese yuan compared to the euro. Our gross margin rate stands at 7.3% versus 72.3% in 2023, which benefited from a positive impact of currency hedging and outstanding sell-through rates. Our communication expenditure reached EUR 637 million, i.e., 4.2% of sales after a speed up of communication events in the second half of the year. Admin and commercial costs, including the distribution network costs and support functions as well as the variable rents reached EUR 2.9 billion. As planned, the group has shored up its headcount in distribution and in the divisions to support the increase in footfall in the stores and to support the increase in production. Other income and expenses reached EUR 941 million. They are mainly made up of depreciation of tangible and intangible assets and the depreciation of use rights. They also include the expense due to the free share plan for all of our employees. The current operating income, therefore, reaches EUR 6.2 billion versus EUR 5.7 billion in 2023. It's a 9% increase compared to last year. After an all-time high at 42.1% of sales, our recurring operating profitability stands at 40.5% as it was the case in 2022. Our financial result is a product of EUR 283 million versus EUR 190 million in 2023. It includes the cost of currency hedging, interest on lease debt and cash income, which, in keeping with the higher interest rates, reached EUR 400 million in 2024 and drives most of the improvement of our financial results. Our tax expenses reached EUR 1.8 billion with an effective tax rate of 28.7%, close to what we had estimated in the half year accounts. Our associate companies and their results stands at EUR 44 million versus EUR 105 million in 2023, but that's due to the consolidation and integration of our activities in the UAE, which were previously accounted for by the equity method. Net income group share reached EUR 4.6 billion, up 7% compared to 2023. Net profitability exceeds 30% in 2024, a slightly lower level than our record of 2023, but better than in 2022. Operational investment reached EUR 1.1 billion in 2024. The group sped up its investment in distribution and shored up its investment in production and in the divisions. EUR 611 million were devoted to securing our strategic locations or the renovation and development of our distribution network in China with projects in Beijing, Shenyang and Shenzhen and in the U.S. with projects in Phoenix and Nashville. EUR 244 million were invested in real estate, digital and IT systems to support the development of our divisions and to secure the supply chain. EUR 212 million were dedicated to increasing our production capacity especially for small leather goods in Riom, Loupes, and L'Isle-d'Espagnac, as well as in the upstream Silk hubs, hardware or perfumes. Our self-financing capacity reached EUR 5.4 billion and is making steady progress, very much like our net income. Our cash flow reached EUR 5.1 billion and has increased by 19%. After taking into account the operational investment, EUR 1.1 billion and our lease debt reimbursement, the adjusted available cash flow stands at EUR 3.8 billion, up 18%. Financial investments include the expenses for our majority stakes in our retail activities in the UAE and also minority stakes to reinforce our vertical integration. EUR 2.7 billion worth of dividend were paid out and Hermes International bought back EUR 40 million worth of shares. And our net restated cash flow increased, therefore, by EUR 900 million and reached EUR 12 billion at the end of 2024. As of the 31st of December 2023, cash flow makes up more than 50% of our assets and equity stands at EUR 17 billion, more than 75% of our liabilities. Therefore, we've got a solid financial structure to remain independent and to roll out with great confidence our long-term strategy.

Thank you very much, Eric, for these good results to which you have greatly contributed. Let us now come to the activity of the beginning of the year. The growth of sales was solid in the first 3 months, with sales of EUR 4.1 billion, up by 9% at current exchange rates and 7% at constant exchange rates. At the end of March '25, all the regions and all the divisions with the exception of watches, perfumes and beauty are growing. In a geopolitical economic context that is more complex, Hermes has pursued its routes using its singularity in its business model. In terms of the outlook, it remains unchanged. In a more complex economic geopolitical context, we deal with 2025 with confidence, strong integrated model and balanced distribution model and its creativity and loyalty of its customers. In the beginning of 2025, Hermes keeps its course attached more than ever to the values of quality, creativity and know-how. The theme of the year is drawn to craft from the [indiscernible] stage to the line design. The drawing is the start of everything in Hermes. We pursue the dynamism of job creation, multi-local and multi-metiers as well as the investments in our production capacity. We will continue to accompany our suppliers and all our partners. We will also invest in our retail network with the openings and enlargements of stores. I would like to once again thank all the employees who have contributed once again this beautiful success as well as our customers all over the world. I would like to very warmly thank you for your attention and propose now that we see a film on the theme of 2025 drawn to craft. [Presentation]

Thank you. The art of drawing at Hermes is about curiosity. Now before I outline the main resolutions, I'd like to thank Mr. Axel Dumas and Eric du Halgouët for the quality of their presentations and also thank them for everything that they've done and all the successes that they've shared with us today. As you've seen, 2024 was a year marked by solid results, showcasing the excellence of Hermes, be it in our strategic decisions or financial results. I would like, therefore, to thank on our behalf, thank all of our employees for their contribution to this great success. In spite of a complicated geopolitical backdrop and climate crisis risks, our teams have been able to continue and forge ahead whilst remaining creative and upholding the highest quality standard. This performance was once again delivered in keeping with the spirit of Hermes. The commitment, the unwavering commitment, of our teams speaks to the deep attachment they have to the values of Hermes. And I would like to thank the executive management and the ExCo for the way in which they steer our company. And I would like to thank you, our shareholders, for being loyal and for trusting us. We truly appreciate this solid relationship that we've built over the years, and we'd like to thank you once again. It is now time to outline the main resolutions that we'll be voting on today. And so as to have enough time for a Q&A session at the end, I suggest that this description remains quite brief since you have the detail of each resolution in the convening notice. As I mentioned earlier, our quorum is 81% -- or it was 81%, but now we have more than 86% for the general and extraordinary part of our meeting. For the fourth resolution, you'll be asked to approve the profit allocation for 2024, which reached nearly EUR 4 billion. The Supervisory Board suggests setting the ordinary dividend at 16% and the extraordinary dividend at EUR 10 per share. This proposal is about finding the right balance between a recurring and balanced payout at 5%-6% more or less and also a distribution of our available cash flow. Under the seventh and 10th resolution, you'll be asked to approve the total compensation and in-kind compensation for 2024 to our corporate officers. All of these elements are detailed in the convening notice and are, of course, in keeping with the compensation policy approved by the general meeting. The executive managers' compensation is made up of a fixed part tied to the revenue with a 5% cap and also made up of a variable part, which is pegged to the consolidation income before tax. And 10% of this variable compensation is indeed linked to CSR targets, and it's been the case for more than 6 years. Likewise, executive managers do not receive multiyear variable compensation nor compensation later on down the road. The compensation of the President of the Supervisory Board is made up of a fixed compensation that remains the same and which was set in 2023 at EUR 180,000. Under the 18th resolution, you'll be asked to approve without any changes, the compensation policy of the executive managers. Under the 12th resolution, you'll be asked to approve the compensation policy for the Supervisory Board members, which also remains the same. Under the 13th to the 15th resolution, we're going to ask you to renew the terms of Charles-Éric Bauer, Ms. Estelle Brachlianoff and Julie Guerrand, who all sit on the Supervisory Board. They all bring their own insights and expertise to the Board's meeting. They make our discussions much deeper and richer, thanks to their skill and commitment. Their presence also makes the Board more diverse with more complementarity. They bring their experience, their background, and we also keep an eye on gender parity and different professional backgrounds being represented around the table. Their terms will end at the general meeting in 2028. And as you know, any change -- sorry, a change in the lineup of the Supervisory Board is proposed at this general meeting. Alexandre Viros decided to step down from the Supervisory Board and from the Audit and Risk Committee on 30th of April 2025, so as to fully embark on his new professional journey. Alexandre has been with us for more than 6 years, and we'd like to thank him very much for his involvement and contribution over the last 6 years, and we wish him all the very best going forward. The term of Dominique Senequier, independent member of the Supervisory Board of Hermes Internacionale since 2013 and Chairperson of the CSR Committee is a term that ends at the end of today's general meeting. That term will not be renewed because Dominique has reached the 12-year cap and we will lose her ability to sit as an independent member on the Board in keeping with the AFEP-MEDEF rules, rules that were always enforced at Hermes International, and it's therefore, with a heavy heart, that we see Dominique leave the Board. Dominique has always had a great vision and has been always very passionate about our corporate model and has greatly contributed to our collective success through her discipline, her integrity, she has embodied the fundamental values of Hermes. We'd like to thank her very much for her commitment and outstanding contribution to Hermes. Thank you very much, Dominique. You can even actually give her a round of applause. The Supervisory Board in collaboration with the CSR Committee launched in 2024, a process to shortlist new candidates to appoint during this general meeting. This process allowed the CSR Committee to identify and recommend Three candidacies that I introduced earlier and will be displayed on the screen right now. Under the 16th resolution, we suggest appointing Ms. Cécile Béliot-Zind with her expertise in agri-food, her knowledge of family-led corporations and her skills are going to be very useful to us going forward. Cecile, if you agree, will integrate the Risk and Audit Committee and her first term will run for 3 years. Under the 17th resolution, we propose appointing Jean-Laurent Bonnafé at the Supervisory Board. He's had a 30-year long career at BNP Paribas. He's got a lot of valuable experience and knowledge to help us navigate an ever-changing world. If you were to approve this nomination, Jean-Laurent will integrate the CSR Committee and his first term will also run for 3 years. Under the 18th resolution, we suggest appointing Mr. Bernard Emie. He has an in-depth knowledge of geopolitical and diplomatic issues and also understands the cultural dynamics, which will be very important to the discussions of the Board. In keeping with the renewal of 1/3 of the Board, his first term will run for 2 years, and then it will be hopefully renewed for a further 3 years. These proposal of appointments that you need to vote on are in keeping with the principles and objectives of the Board in that we want to keep a high level of expertise and experience, but also have a great diversity of complementary expertise in keeping with the very unique and specific nature of our company. Under the sixth and 19th resolution, we're going to ask you to renew the authorization to executive management so that they can buy back shares with a 10% cap and the possibility of canceling them. The maximum purchase price is set at EUR 3,400 per share. The shares that are bought back by the companies are essentially to cover the free share plan for employees. Therefore, no buyback with a view of cancellation has been performed in many years. Under the 20th to 25th resolution, we're going to ask you to renew the delegation of authority for financial matters. These authorizations were not used, but nonetheless, we're going to ask you to vote on them once again. And then you have the 26th resolution, where we are going to ask you to allow executive management to increase capital. That new resolution was introduced under the attractiveness law. Under Resolutions 27 and 28, we're going to ask you to delegate to executive management the necessary competencies for merger and absorptions. These resolutions aim at allowing executive management to have enough leeway to act in the best interest of the company under the control of the Management Board and the Supervisory Board. In the universal registration document, which you can also find on the Hermes Finance website, you'll find the report of the Supervisory Board on the corporate governance. You can find it on Page 544 of the universal registration document. And in the convening notice, you will also find the report of the Supervisory Board under Pages 59 and 60. Over now to our statutory auditors so that they can walk you through their main reports.

Thank you, Chairman. Ladies and gentlemen, shareholders, on behalf of the college of statutory auditors, PricewaterhouseCoopers Audit and Grant Thornton audit, I would like to report on our mission for the financial year ending 31st of December 2024. In keeping with the rules of the general meeting, I will sum up the terms of the report included in the universal registration document. Report on consolidated accounts and annual accounts are reproduced successively on Page 413 to 416 and 438 to 441 of the universal registration document. The objective of our mission is to obtain reasonable assurance that the financial statements present a true and fair view. For this, we put in place, adapt our work to the organization of the group and to your different divisions in France and abroad. We therefore, intervene in 23 subsidiaries in 22 countries. We were able to carry out all our duties satisfactorily in all these countries. Our audit approach and our conclusions have been shared with the financial management of the group in the course of regular exchanges. We've also reported on our work to the Audit and Risk Committee as well as the Supervisory Board. The key points of audit related to risk of significant anomalies that we have identified given their relative weight in the accounts, the complexity of their evaluation or the importance of the judgment that is exercised to assess them. For consolidated accounts on the measurement of inventories and work in progress and recognition of currency hedges. For annual financial statements, it's the valuation of equity investments. You will have the description and the diligence that we have put in place in our reports. At the end of our work, we have expressed an opinion without any reservations or observations on the consolidated accounts, as well as the annual accounts of your company. Concerning related party agreements is reproduced on Pages 523 and 524 of the URD, it is for us to communicate to you in this report the main terms and modalities of the related party agreements that we have -- that have been disclosed to us without commenting on their relevance. In this framework, we inform you that we were involved of no agreement concluded in the course of this past year, submitted for your approval. Our report has a description of all the agreements previously approved in previous years. These reports, which are on Pages 526 and 530 of the universal registration document are related to different authorizations related to the capital of your company. For Resolutions 21 and 25, the executive management report not specified the modalities of determining the issuance price of shares. We have not given an opinion on the choice of the element of calculation for the price of [ emissions]. For Resolutions 22, 24, 26, the final conditions in which the issuance is carried out is not fixed in the current state of the text. We have not expressed any opinion on the modalities of the issuance price and therefore, on the proposal of removal of preemptive subscription rights. We will establish an additional report if need be, during the use of these authorizations by your executive management. Ladies and gentlemen, shareholders, Mr. Chairman, thank you very much for your attention.

. . or not. Is everybody ready? Okay. Everybody's got their handset. So I suggest that we move to the first resolution. Approval of the parent company financial statements. The vote is open. [Voting]

The vote is closed. And the resolution is approved. I see that some people have run their own little test. Resolution #2, approval of the consolidated financial statements. [Voting]

The resolution is approved. Third resolution, executive management discharge. [Voting]

The resolution is approved. Fourth resolution, allocation of net income and distribution of an ordinary and exceptional dividend. [Voting]

The resolution is approved. Fifth resolution, approval of related party agreements. [Voting]

And the resolution is approved. Sixth resolution, authorization granted to the executive management to trade in the company's shares. [Voting]

The resolution is approved. Seventh resolution, approval of the information referred to the French Commercial Code with regard to compensation. [Voting]

It is approved. Eighth resolution, approval of total compensation and benefits of all kinds for Mr. Axel Dumas [Voting]

The resolution is approved. Ninth resolution, approval of total compensation and benefits of all kinds paid to the company Emil Hermes for 2024. [Voting]

The resolution is approved. 10th resolution, approval of total compensation for Mr. Eric de Seynes, Chairman of the Supervisory Board. [Voting]

Resolution is approved. 11th resolution, approval of the compensation policy for the Executive Chairman. It's an ex-ante vote. [Voting]

And the resolution is approved. 12th resolution, approval of the compensation policy for the members of the Supervisory Board. It's another ex-ante vote. [Voting]

The resolution is approved. 13th resolution, reelection of Mr. Charles-Éric Bauer for a 3-year term. [Voting]

The resolution is approved. 14th resolution, reelection of Ms. Estelle Brachlianoff for a 3-year term. [Voting]

The resolution is approved. 15th resolution, renewal of Ms. Julie Guerrand's term for 3 years. [Voting]

The resolution is approved. 16th resolution, reelection of Ms. Cécile Béliot-Zindas a new member to the Supervisory Board for a 3-year term. [Voting]

The resolution is approved. 17th resolution, appointment of Mr. Jean-Laurent Bonnafe as a new Supervisory Board member for 3 years, replacing Ms. Dominique Senequier. [Voting]

The resolution is approved. 18th resolution, appointment of Mr. Bernard Emie as supervisory member for a 2-year term, replacing Mr. Alexandre Viros. [Voting]

The resolution is approved. 19th resolution, authorization to be granting to the executive management to reduce the share capital by cancellation of all or part of the treasury shares held by the company. [Voting]

The resolution is approved. 20th resolution, delegation of authority to the executive management to increase the share capital by incorporation of reserves, profits and/or premiums and free allocation of shares or increase in the par value of existing shares. [Voting]

And the resolution is approved. 21st resolution, delegation of authority to be granted to the executive management to decide on the issue of shares and/or any other securities giving access to the share capital with preemptive rights remained. [Voting]

The resolution is approved. 22nd resolution, delegation of authority granted to executive management to decide on the issue of shares and/or any other securities giving access to share capital with preemptive rights canceled but with the option to establish a priority period by a public offering. [Voting]

The resolution is approved. 23rd resolution, delegation of authority granted to executive management to decide on capital increase by issuing shares or securities giving access to share capital reserved for members of a company or group savings plan with preemptive rights canceled [Voting]

The resolution is approved. 24th resolution, delegation of authority to be granted to the executive management to decide on the issue of shares and/or any other securities giving access to share capital with preemptive rights canceled by a public offering to a restricted circle of investors or qualified investors. [Voting]

The resolution is approved. 25th resolution, delegation of authority granted to executive management to decide on the issue of shares and/or other securities giving access to the share capital with preemptive rights canceled in order to compensate contributions in kind granted to the company in the form of equity securities or securities giving access to the share capital. [Voting]

The resolution is approved. 26th resolution, delegation of authority to be granted to the executive management to decide on a capital increase by issuing shares and/or securities giving access to the share capital with preemptive rights canceled in favor of one or more named persons in accordance with Article L221052-1 of the French Commercial Code, the Code {indiscernible] [Voting]

The resolution is approved. 27th resolution, delegation of authority to be granted to the executive management to decide on one or more operation involving a merger by absorption, spin-off, or partial contribution of assets to a spin-off regime. [Voting]

The resolution is approved. 28th resolution, delegation of authority to executive management to decide on a capital increase by issuing shares in the event of use of the delegation of authority granted to executive management to decide on one or more operations involving a merger by absorption, spin-off, or partial contribution of assets subject to spin-off regime. [Voting]

The resolution is approved. And finally, 29th resolution, delegation of authority to carry out the formalities related to the general meeting. [Voting]

And the resolution is therefore approved. With that final vote, our general meeting is now over. Thank you very much for being here. I think that we've beaten a record number of people in the room. So Hermes continues to inspire people. Thank you very much for being here, and we'll see you in a year's time on April 17, 2026, in this very same auditorium at the Salle Pleyel. Thank you very much.