Good morning, ladies, good morning, gentlemen. We're very happy to see you in this beautiful venue at the Salle Pleyel for this new combined general meeting of Hermès 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 Hermès. 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'll 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 Beliot-Zindel, 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 Group.
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. She became General Director three years ago. Moving on to Jean-Laurent Bonafé, he joined the Banque Nationale de Paris in 1993. Four 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 General Director of BNL in Italy. In 2008, he was appointed Deputy General Director and in charge of all the retail banking activities of BNP Paribas.
Since the 1st of December 2011, Jean-Laurent Bonafé is the General Director of BNP Paribas. Finally, Bernard Émié, he's 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. He became a technical advisor to the Foreign Office and then a diplomatic advisor to the President of the Republic. In 2002, he was in charge of the North Africa and Middle East department at the French Foreign Office and then was an ambassador in London and Algiers. For seven 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 Guérin for H51 and Mr. Étienne Puech for H2, who've kindly accepted to take on those roles of tellers. Mr. Nicolas Huenec, 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.
Finally, Maître Stéphanie Chambourg à Court-Beiliffes is in charge of making sure that everything is done in keeping with the rules and regulations. 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 Hermès. I'd now like to hand over the floor to Henri-Louis Bauer, who's President of the management board of the active partner Émile Hermès SAS.
Good morning, one and all. Welcome to this general meeting for Hermès 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 have 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 goods production units and the opening and renovation of many stores. This is how Hermès continues to forge ahead with consistency and in an agile manner. You will see the tangible and robust results in a minute.
What are the key drivers of success? First of all, it's the journey that we all take a part in. Our craftspeople, people who make small leather goods, watches, all these people who make the magic of Hermès. What a pleasure it is also to discuss with our creators and designers, and what joy it 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 craftspeople 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 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. Our clients remain loyal to Hermès because they know that the Hermès 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. 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. We have been successful whilst remaining true to our commitment to sustainable development. We have reduced our emissions, reduced our environmental footprint, and continued to protect natural resources used by the group. This success is first and foremost a collective endeavor. I would like to thank Axel Dumas and his fantastic team for the great agility that they showed off this year once again. Thank you to the Exco, to the management committee, to all the employees of Hermès for their great contribution to this collective success around the world. This success, of course, is also your success, dear shareholders. Thank you for your loyalty, your support, and for trusting in our shared future.
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 are very proud of Hermès, 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 Hermès 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 Hermès 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 three years, Hermès strengthened its operational investments by EUR 2.5 billion, of which 60% in France. We continue to strengthen our teams. Hermès 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, Hermès 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.
Carried by the theme of 2024, the spirit of the Four Baux, 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 model such as Sac à l’Accord, Sac Ansel, or Sac Arsène met with great success. The ready-to-wear and men and women's collections headed by Nadège Vanhée and Véronique Nichanian received a very good welcome worldwide. Let us note the successful launch of the new women's fragrance, Barénia, created by Christine Nagel. The new watch collection of Haute Bijouterie, La Forme de la Couleur by Pierre Hardy, was revealed in Paris and presented in Beijing and Taipei, met with great success. Beautiful success also of the home universe imagined by Charlotte Macaux Perelman and Alexis Fabry, the Milan Fair and the launch of the Trésor Équestre de Nosette.
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 a film on the repair of objects which is part of our history. As my grandfather, Robert Dumas, used to say, "Luxury is that which can be repaired."
[Foreign language]
Now, obviously, we've continued to develop our production capacity. 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-Dôme, in the former manufacturing plant of Tobacco Factory. In 2025, we'll inaugurate a new leather workshop in L’Isle-d’Espagnac in Charente, and two others are being worked on, Loupiac in Gironde and Charleville-Mézières in the Ardennes, which will open by 2026 and 2027, respectively. We have also announced last week the opening of a 10th leather hub in Normandy by 2028, which will strengthen the territorial anchor of Hermès. The investment capacity continued in other divisions, namely in the Vaudre Normandie for perfumes and beauty and Limoges for tableware. Hermès also continued its investments in logistics center, the digital and IT systems in order to accompany the development of the group. Finally, the securing of supplies is something that continues with historical partners of Hermès.
Hermès 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 Hermès, as 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. They benefit from rigorous and lifelong training in order to preserve unique creations of quality of Hermès creations. Hermès 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 Saddle Reed division, our integrated development participates in the revitalizing of French territories. On average, a leather workshop is created every 10-12 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 last September. Second hub in Auvergne, Riom, will create 280 jobs in the. [Foreign language]
Let us now come to our exclusive retail network, exclusive and integrated, faithful to the balance in geographical zones and multilocal 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. and Princeton, near the university, in Asia, in Wuxi, China, and two openings in Tokyo, Japan. Amongst the extensions and innovations, you have Lille and Nantes 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 three-fourths are operated by Hermès directly. On this photograph, you have the new store of Lille in France.
In Ammaj, each store is unique, and the works of art decorating the walls of our stores throughout the world are the expression of a tradition initiated by Émile Hermès. I propose we listen to Pierre-Alexis Dumas, the artistic director of Hermès, who takes us to the heart of our decorations and our artistic heritage transmitted from generation to generation.
[Foreign language]
Thank you, Pierre-Alexis. The creation of Hermès is expressed also through the 17th division of Hermès, that of communication. In the second half of 2024, we've continued to talk about the world of Hermès through offset of beat and joyful events for the public. The events of Hermès at the Making in Mexico, Seoul, and Zurich. We had 60,000 visitors who exchanged with artisans and discovered the wings of our manufacturing of our objects. Petitage made a stopover in Hong Kong and New York for the upcycling of, you know, materials that were sort of asleep.
In Shanghai, over 15,000 visitors played a detective game to resolve the enigma of the mystery at the grooms. A new immersive experience at the heart of Hermès objects and have you discover this in a film.
The horse is a mystic. What on earth is going on? What should we do? Our guests are here for the tour. The horse is missing. The horse is lost. We lost the horses. No! I know the horse is lost. The horse is missing. The horse is lost. Are you okay? The horse is lost. There is no way to find it. Set out, solve the mysteries, and bring the missing horses home. Welcome to the headrooms, office. Is this safe? Crack the code into book ABC Hermès Stories. Pour les pneumophobies. Welcome to the pantry. Welcome to the dormitory. It's one of the Honorless' inventions. Welcome to the bath.
You are right on time. Welcome to the refectory. Goodness. That is where you are hiding? Well done. Welcome to the laundry. Welcome to the library, ladies and gentlemen. Welcome to the stockroom. It could be a clue. We must press down several buttons at the same time. This is the charm of the game. Outstanding. You have managed to bring all the horses back.
It is a kind of escape game to find the horses. Very amusing, great fun. I missed almost every day, but... Now, let's take a moment to share the CSR approach of Hermès. First of all, remaining faithful to its corporate model, Hermès will be distributing EUR 500 million to its employees for a free share allocation. This includes the exceptional bonus of EUR 4,500 at profit sharing in France and free share allocation to employees.
Hermès also pursued its actions aiming at strengthening inclusion and diversity. Hermès has 48% of women in the high responsibility jobs. What is more, in order to guarantee an inclusive working environment, Hermès has committed itself to maintaining people with disabilities in the job, representing 7.90% of 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 one and two in absolute values as compared to 2018, and with 50% in intensity of scope three 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 our commitments founded on a scientific approach.
Finally, we are reasserting our attachment to support of a dynamic local territory and a positive local footprint, promoting local jobs, namely in France. The group has accelerated job creation in 2024, recruiting over 2,300 people, of which 1,300 in France and all the métiers of Hermès. That is to say, 7,000 job creations over three years, a figure that I'm particularly proud of. Hermès pursued its commitment as a socially responsible employer. At the end of December 2024, Hermès 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 our 70% of our employees, our shareholders. The transmission of our know-how is very important. We will continue to deploy the École Hermès de Savoir-Faire in new training schools with 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 of 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 represent more than half the employees in 2024, which is a 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 aisle to Hermès, 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?
[Foreign language]
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 there, but to, you know, give people very good memories. And it really helps. Our ambitions in the environmental field are in line with COP 21 and the climate-related objectives validated by SBTi. We are happy to confirm that the deployment of decarbonization plans in all our operations and our meteors, reduction of emissions in scope one and two 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. 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% our uptake in terms of intensity in 10 years. This testifies to our enhanced vigilance when we build in order not to put, you know, too much pressure on this resource.
Our strong attachment to durability of objects and the approach of eco-design, reuse, and recycling are anchored in our artisanal values of Hermès. These approaches are reflected in the progression of the group of our extra financial ratings. Our corporate model is highly integrated in territory. Hermès 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 our ambition, the dissemination of our CSR and sector-wide briefs continues with accompaniment 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, Hermès has pursued its approach aiming at enhancing generous actions everywhere where it is.
The Hermès Corporate Foundation, starting its fourth five-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 Manufacto and Manutera 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 firm's imprints on the world by Frédéric Lapon, a program Manufacto created in 2016, awareness-raising of new generations, young generations on artisanal.
[Foreign language]
A big thank you to Frédéric Lapon, 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 the end of December 2024, all regions have flagged solid progression carried by value strategies of Hermès. 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 an increase in sales across the whole region. America, + 15%, continues with its excellent performance.
For the line others, you have mainly the retail activities of these 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 sellery, + 18%. Great performance there. Clothing and accessories, + 15%, with a strong momentum thanks to its successful collection. Silk and textiles, + 4%, thanks to its diverse collection, both for men and women. Perfume and beauty, + 9%, a progress driven mainly by the new women's perfume, Barénia. Watchmaking, - 4%, had to deal with a more difficult backdrop and a high comparison basis. Finally, the other Hermès divisions, + 17%, that's jewelry and maison, are also enjoying strong growth.
The breakdown of the divisions also reflects the strong dynamic of Leather Goods. Éric du Halgouët, our CFO, is going to talk you through the results. Before this, I'd like to talk about the success of our partner riders, who won five Olympic medals. 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 four 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 effects 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 73% 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're 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 reach EUR 1.8 billion, with an effective tax rate of 28.7%, close to what we had estimated in the half-year counts. Our associate companies and their results stand 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, Loup, and L’Isle-d’Espagnac, as well as in the upstream silk hubs, hardware, or perfumes. Our sale 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 Hermès International bought back EUR 40 million worth of shares. 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, 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, Éric, 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 three 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 2025, all the regions and all the divisions, with the exception of Watches, Perfume, and Beauty, are growing. In a geopolitical economic context that is more complex, Hermès has pursued its roots 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, a strong integrated model and balanced distribution model, and its creativity and loyalty of its customers.
In the beginning of 2025, Hermès 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 silhouette stage to the line design, the drawing is the start of everything in Hermès. We pursue the dynamism of job creation, multi-local and multi-métiers, 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 to 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." Thank you.
The art of drawing at Hermès is about curiosity. It's about looking at the world, taking nothing for granted, being always interested and being surprised, to always have an open eye. Curiosity, that's what drawing is about. We love telling stories. It's something strange, and it's something deeply embedded in the Hermès culture. I am not worried for the future because as long as we have White Page and the desire to paint, we will make beautiful collections. 2025, it's about celebrating collectively the art of drawing at Hermès. Avant. Now, before I outline the main resolutions, I'd like to thank Mr. Axel Dumas and Éric 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 Hermès, 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 Hermès. The unwavering commitment of our teams speaks to the deep attachment they have to the values of Hermès. I would like to thank the executive management and the exco for the way in which they steer our company. 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. 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 36%, more or less, and also a distribution of our available cash flow. Under the seventh and tenth resolution, you'll be asked to approve the total compensation and in-kind compensation for 2024 to our corporate offices. 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 manager's 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. 10% of this variable compensation is indeed linked to CSR targets, and it's been the case for more than six years. Likewise, executive managers do not receive multi-year 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 eighteenth resolution, you'll be asked to approve, without any changes, the compensation policy of the executive managers. Under the twelfth resolution, you'll be asked to approve the compensation policy for the Supervisory Board members, which also remains the same. Under the thirteenth to the fifteenth resolution, we're going to ask you to renew the terms of Charles-Louis Scotti, Ms. Estelle Brach, and Julie Guérin, 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. 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 the thirtieth of April 2025, so as to fully embark on his new professional journey. Alexandre has been with us for more than six years, and we'd like to thank him very much for his involvement and contribution over the last six years, and we wish him all the very best going forward.
The term of Dominique Sénéquier, independent member of the Supervisory Board of Hermès International 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 twelve-year cap and will lose her ability to sit as an independent member on the board in keeping with the AFEPMEDEF rules, rules that were always enforced at Hermès International. It is 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 Hermès. We'd like to thank her very much for her commitment and outstanding contribution to Hermès.
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 candidacy lists that I introduced earlier and will be displayed on the screen right now. Under the sixteenth resolution, we suggest appointing Ms. Cécile Beliot-Zindel, 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. Cécile, if you agree, will integrate the risk and audit committee, and her first term will run for three years. Under the seventeenth resolution, we propose appointing Jean-Laurent Bonafé at the Supervisory Board. He's had a thirty-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 three years. Under the eighteenth resolution, we suggest appointing Mr. Bernard Émié. He has an in-depth knowledge of geopolitical and diplomatic issues and also understands cultural dynamics, which will be very important to the discussions of the board. In keeping with the renewal of a third of the board, his first term will run for two years, and then it will be hopefully renewed for a further three years. These proposals 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 nineteenth 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 twentieth to twenty-fifth 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. You have the twenty-sixth 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 twenty-seven and twenty-eight, 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 Hermès Finance website, you'll find the report of the supervisory board on corporate governance. You can find it on page 544 of the universal registration document. 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. man.
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 thirty-first 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. Our 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 intervened in 23 subsidiaries in 22 countries.
We were able to carry out all our duties satisfactorily in all these countries. 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 is 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 as 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 have been disclosed to us without commenting on their relevance. In this framework, we inform you that we were informed of no agreement concluded in the course of this past year submitted for your approval. Our report has the 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.
Is everybody ready? Okay, everybody's got their hands set. I suggest that we move to the first resolution, approval of the parent company financial statements.
The vote is open. The vote is closed. The resolution is approved. I see that some people have run their own little test. Resolution number two, approval of the consolidated financial statements. The resolution is approved. Third resolution, executive management discharge. The resolution is approved. Fourth resolution, allocation of net income and distribution of an ordinary and exceptional dividend. The resolution is approved. Fifth resolution, approval of related party agreements. The resolution is approved. Sixth resolution, authorization granted to the executive management to trade in the company's shares. The resolution is approved. Seventh resolution, approval of the information referred to the French commercial code with regard to compensation. It is approved. Eighth resolution, approval of total compensation and benefits of all kinds for Mr. Axel Dumas. The resolution is approved.
Ninth resolution, approval of total compensation and benefits of all kinds paid to the company Émile Hermès for 2024. The resolution is approved. Tenth resolution, approval of total compensation for Mr. Éric du Halgouët, chairman of the supervisory board. Resolution is approved. Eleventh resolution, approval of the compensation policy for the executive chairman. It's an ex-ante vote. The resolution is approved. Twelfth resolution, approval of the compensation policy for the members of the supervisory board. It's another ex-ante vote. The resolution is approved. Thirteenth resolution, re-election of Mr. Charles-Éric Bauer for a three-year term. The resolution is approved. Fourteenth resolution, re-election of Ms. Estelle Brach for a three-year term. The resolution is approved. Fifteenth resolution, renewal of Mrs. Julie Guérin's term for three years. The resolution is approved. Sixteenth resolution, re-election of Ms. Cécile Beliot-Zindel as a new member to the supervisory board for a three-year term.
The resolution is approved. Seventeenth resolution, appointment of Mr. Jean-Laurent Bonafé as a new supervisory board member for three years, replacing Ms. Dominique Sénéquier. The resolution is approved. Eighteenth resolution, appointment of Mr. Bernard Émié as a supervisory member for a two-year term, replacing Mr. Alexandre Viros. The resolution is approved. Nineteenth 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. The resolution is approved. Twentieth 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. The resolution is approved.
Twenty-first 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 remaind. The resolution is approved. Twenty-second resolution, delegation of authority granted to executive management to decide on the issue of shares and/or any other securities giving access to the share capital with preemptive rights cancelled, with the option to establish a priority period by a public offering. The resolution is approved. Twenty-third 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 cancelled. The resolution is approved.
Twenty-fourth 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 cancelled by a public offering to a restricted circle of investors or qualified investors. The resolution is approved. Twenty-fifth resolution, delegation of authority granted to executive management to decide on the issue of shares and/or any other securities giving access to the share capital with preemptive rights cancelled 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. The resolution is approved.
Twenty-sixth resolution, delegation of authority to be granted to executive management to decide on a capital increase by issuing shares and/or securities giving access to the share capital with preemptive rights cancelled in favor of one or more named persons in accordance with Article L.225-138(1) of the French commercial code, the Code de Commerce. The resolution is approved. Twenty-seventh resolution, delegation of authority to be granted to the executive management to decide on one or more operations involving a merger by absorption, spin-off, or partial contribution of assets to a spin-off regime. The resolution is approved. Twenty-eighth 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.
The resolution is approved. Finally, twenty-ninth resolution, delegation of authority to carry out the formalities related to the general meeting. 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. Hermès 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.