Good morning, ladies and gentlemen. We would have preferred to have the pleasure to meet with you in person for our Annual General Meeting at the Salle Pleiad. But in this highly unusual context of the COVID-nineteen epidemic and in compliance with governmental regulations. Executive management decided to hold this AGM in a closed session. In compliance with the regulations, companies exceptionally are authorized to hold their general meetings without the physical presence of their shareholders.
Therefore, the shareholders have been encouraged to vote remotely or give their proxy to the Chairman. An e mail address and a special communication have been established so that shareholders can easily send in their written questions before this session. Lastly and as recommended, The Annual General Meeting is being live webcast in totality and will also be available on replay on our website. I would very much like to thank all shareholders, many of whom have voted by correspondence and many of whom are listening in this morning to the live webcast. I'd also like to specify the supervisory board members, just as the Representative of the Economic and Social Committee are also taking part in this AGM remotely.
We will be now establishing the bureau. I would appoint as tellers H51 represented by Ms. Julie Guerin and H2 represented by Mr. Ronen Momenja, the 2 shareholders representing the largest number of votes. Ms.
Nathalie Bazon, Chief of Stock Market and Company Law and Secretary of the Board will be acting as Secretary, this meeting. Lastly, the statutory auditors represented by Mr. Olivier Auberty from PricewaterhouseCoopers Mr. Stephanie Jeanbour, Officer of the Court, will be here to duly note that the entire meeting turns tires correctly. The folder in front of me contains all of the documents provided for under legislation.
Documents and information covered by rules and regulations were sent out to shareholders and the statutory auditors and also made available to them in the conditions and during the time lines laid out by these provisions under the law. I'd remind you that the number of shareholders and the attendance sheet have been established by a centralizing entity to which BNP Paribas Security services. The final count of the attendance sheet was established on the eve of this meeting yesterday at 3 p. M. We see 2,853 shareholders who have given proxy to the Chairman, 3,333 shareholders have voted by correspondence.
Therefore, we note that the required quorums as per legislation for both ordinary and extraordinary general meeting sessions are established, which means a quorum of 87.04%, both for the ordinary combined meeting and the extraordinary session of the meeting. Therefore, The meeting henceforth has been properly constituted. Therefore, before hearing from Aqsa Dumas, who will be giving us the highlights of last year. I'd like to ask Mr. Henri Louis Boire, Chairman of the company's management counsel of Emil Hermas to talk to us briefly.
Good morning, everyone. Dear shareholders, welcome. We're very pleased to welcome you for this Armistice International AGM in spite of the fact we're having to hold this remotely. Over a year now, we've been in the throes of a brutal, grueling health crisis. Much has been an upheaval, many people dear to us have been lost to this disease.
Many people today are still encountering many difficulties and are to these are disquieted. During this lengthy crisis, however, the company has been supported by its courageous employees who've shown solidarity, who've been remarkably dynamic. Thanks to their efforts, Air Mass has gone its unique path during this time of crisis demonstrated by the truly impressive results of 2020. The quality of these results didn't happen all by accident. I see 3 factors that explain our resilience during these tough times.
First of all, and this is essential. It's thanks to the people, the men and women, who in this company have unique expertise and have acted with talent and great determination. I'm thinking of our artisans, our tanners, our leather workers, our saddle makers. I'm also thinking of our printers, our watchmakers, our master crystal workers. All of them have a perfect mastery of their sophisticated area of expertise.
They pay exacting attention to every detail they're demanding at every moment of their work. Therefore, every one of our objects is unique and carries the identity of an artisan. It's an exceptional talent we're talking about and an incredible source of Pride and motivation during these tough times. I'm also thinking of our creative teams, our designers, our color artists, our directors, our artistic directors who cultivate the elegance of our customers. I'm also thinking of our faithful sales staff and all of our employees.
Together and individual. They create the wealth of this group day after day, month after month during normal times and during times of crisis during this year that's been so difficult. The employees' commitment has been decisive. That's the number one factor through Vermes' success. And in front of all of you, I'd like to thank all of them for their tremendous agility that they've demonstrated since the very beginning of this crisis.
The second factor, Vermis' success is our company's vision. It's not some magic formula that we apply every year successfully. We're talking about Expertise, know how, creation, innovation, these are fundamental values which go back to the very origins of Hermes and have been handed down decade after decade. Amongst these values, there's the demand of quality. It's a fundamental value quality of our products, quality of the raw materials we use, quality of the expertise of our artisans, quality of the creations, quality of the service by our sales associates.
Quality is very much one of Hermes' key values, explaining the appeal of our products, giving meaning to our employees and placing us in the long term and not just in some sort of fragile immediateness. This vision also helps us weather times of crisis, boosting Hermes and sustainability, putting it in the long term through the team's commitments. The third factor of our success has been continuity, continuity in our strategy, continuity in our corporate vision throughout all of our periods, throughout time. This continuity has been supported by the shareholder family. They established the link from 1 generation to the next.
They ensure the transmission of this vision to the next generation and they commit to ensure strong and sustainable governance. It's our duty, our mission statement and our source of pride. We attach great importance to this. For many years, the family has been getting bigger, more and more generations, more and more numbers of family members. This is why this year, we decided to change the Amy Lermis SARL Company into an SAS, a simplified joint stock company.
The change in this company is only designed to welcome the young family members. They're in greater number now. Now there are over 100 family members as from the next here. But the role and operating of Aimee L'Hermes as general partnership of Hermes International, these remain unchanged. You can see the family is faithful in the spirit of commitment and continuity.
This spirit is at the Core of our discussions at the management board that I have been fortunate to chair for the past 10 years. Over these years, members of the management board have continued to reaffirm the importance of these values, our values, these strong values that are shared by us all. On that point, we can be proud of the decisions your group has made since the beginning of the first lockdown. I'm thinking, for instance, of maintaining compensation for all 16,600 employees worldwide. I'm thinking of substantial donations we gave to Paris Hospitals that were overextended as well as Bonuses given to people who continued activities at our business sites and produce things such as hand sanitizers.
It's been choices of solidarity, which is the result of values which are very dear to us. On behalf of the family and family members, I would thank Axel Dumas and all of his teams for having supported so successfully the values of this company during such a year of trial. After the trials of this crisis, I see we're looking toward a better world with greater solidarity, more attentive to environmental considerations, more just and I hope happier. This is what I'm seeing around us and I suggest we look at this video now, which I think is a great illustration of the spirit of our communication. Thank you.
I'm looking for the owner of that bag.
The owner That bag won't be here till the sun now. You're still alive What do we know about her? She's tall. She's since she's French.
At AGM. Thank you for your loyalty to Hermes. Let us together look at 20 in 2020. Above all, I wish to thank all the employees of the group who have shown a lot of courage, solidarity, agility Crisis of such a magnitude remind us of the necessity to remain focused and humble in the face of what we are able to master, in particular, Amitya. It is the opportunity also to test the choices and the decisions of the past.
And I can say that this world crisis reveals the relevance of our Sensitivity of each and every one, but also the sense of commitment and the responsibility have counted a lot in the management of this crisis. In the face of this health crisis that we wished that Hermes act as a responsible actor with solidarity, responsible First of all, for its employees protecting their health by putting in place all the measures necessary, but also through a close Local management, we have maintained the jobs and basic salaries everywhere in the world and this without having recourse to government aid and subsidy. What is more, exceptional bonus was paid to all the employees of the group in 2021 to thank them for their commitment. Solidarity towards the community. Hermes made a donation of €20,000,000 to Paris Public Hospitals.
Vodoure teams I'd like to thank produced about 45,000 liters of sanitizing gel and the house gave 145,000 masks and personal in equipment to health care workers. I'd also like to welcome actions that were carried out locally with 80 actions of and help committed close to with our partners and suppliers, namely the maintaining and adapting of orders, payment The times and sharing of good practices, Hermes has used the solidity and the agility of its artisanal model. This period has also shown the acceleration of some major general trends with the positive dynamic of the Asian market, Digitalization of uses and challenges of social and environmental responsibility. Everywhere in the world, our local clientele, very loyal, has compensated in part of the reduction in the flows of tourism. Hermes was able to face up to these challenges, thanks to the demandingness of its quality, ambition in terms of creativity, The creation is the best response to the crisis with its unique and durable objects.
Integrated production, as I said, may I remind you more than 60% integrated in the group anchored in France, 80% of Objects are manufactured in France and founded on the mastery and the excellence of know how, the practice of a metier rather than that of a task. In a distribution network also which is omnichannel and exclusive which has shown its full efficiency in the course of this crisis. We would have to adapt Economic independence and a rigorous financial management have allowed us not only to maintain the salaries without State aid, but also to pursue operational investments that were planned. Despite the difficulties, we have I would like to mention the successful lot of makeup, enrichment of leather collection with models such as Shandong, Birkencargo, Sachemales and beautiful reception of the women's ready to wear and the men's ready to wear collections. Successful launch of the high jewelry collection as well as a new Diversite, Passifolia and to and very recently the launch of the Apple Watch MS Series I'm also thinking of the success of the Carre Doublafas major technical innovation in this meeting with a strong know how content, COVID-nineteen has strengthened the importance of e commerce, which was already at the heart of our omni channel on strategy.
Indeed, we have for the last 5 years made a strong strategic choice with the growth of our e commerce platform everywhere in the world. In Asia with the creation of the Hermes site in China in 2018 and the rollout of its new platform in Japan, Singapore and Malaysia as of 2019 and the 1st semester of 2020 in Korea and in Hong Kong. What is more, 2020 was Also witnessed the opening of a first e commerce MS site in the Middle East. With the acceleration of traffic, conversion rates and 75% new customers, The success of our platforms is being confirmed. The group has thus been prepared for the evolutions in use and acceleration of online In 2020, the network of the stores grew and became more beautiful in Osaka, Moscow and Madrid.
On the whole, the group has 306 stores at the end of 2020, of which over 2 thirds are wholly owned. I propose that we look now at an in store animation that took place last December at the Fobo store And which testify to the renewed pleasure of getting together for the end of year celebrations.
It was the night
There's a very good reason why the holiday season It's wonderful time for a boy and girl to fall in love. Come When you kissed me by the mist of the harbor, we stood Let
us now move over to the communication of Hermes. Here again, we need to adapt and invent new formats in order to maintain our presence. To remain a safe investment and optimistic in a difficult context while nourishing a link at a with our customers. Teams have shown agility, creativity in the development of communication strategies in order to respond to an ever changing environment. Let us together look at an excerpt of the film of the men's ready to wear Sure.
Performance films by the with the complexity of the director, Celine Test and broadcast live on digital platforms.
In the
course of this very Particular peculiar year, we have reasserted the importance of our values and our commitments, first of all, by supporting employment. Hermes is today 16,600 employees worldwide, amongst which 10,383 are in France. That is to see a progression of 1200 persons, of which half from our historical supplier, J3L, That was integrated. 2020 marks the pursuit of a dynamic year for job creation, namely in link with the employment agency and a voluntary remuneration policy. We want to continue to play the role of a corporate citizen where we are set up by acting in the long term with economic actors, social, educational and cultural actors directly or through our corporate foundation.
And as far as training is concerned, our in house leather school has 80 trainers and collaborates with 12 leather making schools all over France. We are particularly proud in the start of the project on MS Apprenticed in the training center in partnership with the National Education to convey letter making know how, learning a profession, requiring expertise and count with a state diploma. In 2020, the number of partner schools of the program manufacturer of our Corporate foundation was extended with 1400 students in 55 schools. This testifies to our commitment in the field of education. Maintaining diversity of the persons and talents is the cornerstone of the richness of the creativity and the creativity of Hermes.
We are striving to develop an inclusive culture. 2020 has seen the foreseeable of our efforts in terms of professional equality in between men and women, women representing 54% of the management and 50% of the supervisory board members. The Gender Equality Index is 90 to over 100. We have renewed in 2020 our commitments and our efforts to continue to recruit people with disabilities, the employment rate of which has doubled in 4 years. Concerning Our purchases, namely, our objective is to increase by 20% per year the recourse to the assisted And protected network in France.
Hermes ranks 5th worldwide in diversity leaders among diversity leaders published by Financial Times, it's first of its sector. Hermes at the head of the ranking amongst the 500 best employers in France. These positive results Also very dear to us and testify to the experience of the employees and the perception of the group. In 5 years' time, we have created over 4,400 jobs for more than 2 thirds in France. And this for us is a source of pride.
The group has preserved a balance in its growth [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] So by
maintaining a stable breakdown per
sector, balance between production and sales, our artisans and more widely the headcount of the production sector representing nearly half of the headcount in 2020. The geographical distribution of the headcount reflects the Set up of our production tool, which is highly very integrated with 63% of our headcount in France. The employees and the subsidiaries Dubai commercial functions mainly. In 2020, the headcount has progressed in production sector, namely with the integration of in France. With 51 production sites situated in 9 regions of France, Hermes is a committed local actor.
2020 has seen the resuel of investments in new leather workshops within the textile sector, but also in the Dupuy Tannery with the aim of preserving unique know how. With our suppliers and partners, we are committed in continuous progress approach over for the long time in order to have our sectors progress around challenges of climate and biodiversity. In this approach, we collaborate with a number of stakeholders such as, for example, World Wildlife Fund or University of Cambridge. We have just mentioned our 51 production sites in France are spread out over 9 regions. Each new leather workshop allows us to create 250 jobs in an environment which is harmonious at a human scale.
13 other production sites are also spread out in 6 countries: Switzerland for watchmaking, Italy, United Kingdom with the bootmaker, John Robb and Portugal, USA and Australia. The Hermes growth model is inspired by values of craftsmanship, naturally close to the challenge of preservation of Natural Ecosystems. For always, the houses offered a repair service for all its objects. This year, over 220,000 operations of maintenance and there were carried out by our craftspeople. Producing durable objects is producing objects that you do not throw.
It is better produced by optimizing the raw material. Vertical integration of our model allows us to have a better control of the production process from design to the delivery of products. In this framework, within each of the metiers with Petit D'ache in particular, We are looking at how we can go further in the recycling of our materials. This concerns also our packaging. We are also pursuing our strategy of donation to associations.
We produce artisanally objects of high quality designed to last with transparent in sectors, respectful of biodiversity. And this goes to reasserting the requirements of responsible suppliers with our suppliers accompanying our partners as well as a strict audit policy. As far as our carbon emissions are concerned, 2020 was an important year. In a structural way, the group is a low EBITDA of CO2 and offsets since and has offset since 2019 more than 100% of the emissions linked to its own activities. In the Hermes has set us an objective the reduction by 50% of these emissions in absolute values by 2,030 and reduction by 50% of the intensity of other indirect emissions.
In 2020, TMS has committed itself once again alongside the Carbon Fund livelihood with projects with the strong on the biodiversity such as the reforestation project. In 2020, we have strengthened our commitments in terms of biodiversity. In ELMEs, accompanied by WWF and CDC Climate and, for example, doing a mapping of the impact with Global Biodiversity Score. Our commitments are also materialized through participation in collective initiatives with enhanced transparency such as with our commitment with TCFD. These efforts are reflected in the progression of several Financial ratings, Sustain Analytics and the CDP Agency.
We remind you that the compensation variable compensation of Executive Chairman is based on attaining the CSR criteria.
We We
are convinced of the importance of collective intelligence, of sharing a good practice and common endeavor to face up to common challenges for us as a company, our societies and the planet. Let's have a look at the Vigee Nature Phil program, a science program that the Hermes Corporate Foundation accompanies. Let's now come to the activity. Despite the health crisis, the activity of the group was resilient with a very strong dynamic of sales in the 4th quarter. The revenue attained of €6,400,000,000 in 2020, that is to say, a drop limited to 6% at constant exchange rates.
The stores of the group have shown great resistance with sales down only by minus 2% over the year after our Q4 growth Of 21%. For this, of course, we'd like to thank our clients all over the world who have shown their attachment to Hermes and the involvement of our teams in the stores. Let us now move over to activity with geographical areas. First of all, France, minus 29% in Europe, customers. Japan then minus 4% has shown a particularly dynamic recovery since the month of June, thanks The loyalty of its local customers and the progression of online sales.
Asia excluding Japan plus 14% has pursued It's a strong growth carried forward by an excellent Q4 at plus 47%, namely thanks to the beautiful dynamic of China in Korea. The new digital platform was rolled out in Hong Kong and Macau and in Korea in the 1st semester. Americas finally, minus 21%, recovered progressively in the second half of the year to grow slightly in the Q4. The store of Wynn in Las Vegas was enlarged and renovated in October and that of Short Hills in New Jersey in November. The geographical breakdown reflects the strong growth of Asia and the greater impact of closure of stores in Europe and America.
Let us now move on to the activity permit year. Leather, minus 5% renewed with growth in the second half of the year with acceleration in Q4, plus 18%, which reflects the sustained demand and progressive recovery of deliveries. The development projects are being pursued. We have seen Hermes thus reassert its strong territorial anchoring in France. Clothes and Accessories, Metis, minus 9%, Pursuit is growth in the 4th quarter with plus 12%.
The Silk and Textile Metis, minus 23% and perfumes, minus 19% were marked by the strong contraction of tourism flows. After the very successful launch of the first collection of lipsticks beginning February, Peutit Metiers pursued its good performance. Watches, plus 2% confirmed its progression with an excellent performance in Q4, up by plus 28%. Finally, other matures of Hermes plus 24% over the year, grouping jewelry, art of living and tableware have strongly grown. The breakdown of the midyear is relatively stable with regard to 2019.
The slight drop in media that are more exposed to travel, retail travelers, silk, textile and perfumes, leather goods, just like in 2019, represents half of the activity. Let us now have a look at Pacifolia around the know how of tableware before Eric Duallguez, our CFO, presents the consolidated accounts for 2020.
Good morning, ladies and gentlemen. Hermes achieved strong results in 2020, a time of health and economic crisis. This strength is to be seen both in our results and in cash flow generation in spite of substantial disturbances in some production facilities in France and in distribution subsidiaries worldwide. Gross margin, which remains at a high level, 68.5%, losing 0.6 points. This slight decline is due to an under absorption of production costs in the first half in spite of the positive impact of currency hedges.
At Raggio, price increases in 2020 were very limited, 1% group wide. Communications spending reached EUR 279,000,000. This represents 4.4% of sales versus 5.2% of sales in 2019. Yes, many events were canceled, such as the Sole Hermes in Paris or postponed, such as the launch of a new men's fragrance. Overheads, excluding fixed lease Payments and guaranteed minimums remained almost stable 20 19, 2020 at EUR 1,400,000,000.
The group maintained jobs and base wages for employees worldwide. Other income and expenses reaching EUR 696,000,000, EUR 470,000,000 of which are amortizations, half of which have to do with tangible and intangible fixed assets. The other half is rights of use amortized over the duration of leases. The increase versus 2019 is a reflection of continued investment projects in the distribution networks in digital and information systems. Recurring operating income, almost EUR 2,000,000,000 representing 31% of sales versus 34% of sales in 2019.
After taking into account the nonrecurring profit of €91,000,000 relating to the deconsolidation of Changsha. Operating income reaches EUR 2,000,000,000, which is 32.4 percent of sales. Net financial income is a loss of EUR 86,000,000, which mainly contains interest on lease liabilities and the expense pertaining to currency hedge transactions. Proceeds from investments down in spite of increased cash on hand. This is due to reduction interest rates.
Profit tax rate is 30.9%, down 2.2 points compared to 2019, mainly due to the fact that there was no tax on proceeds from the deconsolidation of Changsha, which is 1.5 points and the drop in tax rates in France. After taking into account income from associate companies and minority interest, Net income is €1,385,000,000 versus €1,528,000,000 in 2019, which is a drop limited to 9%. Recurring operating profitability for the Grupo over the 10 year period is above 31%. In 2020, Recurring operating profitability, 21% in the first half, improved strongly in the second half of the year, thanks to recovery in sales, reaching 31% for the full year period. The group continued its operating investments reaching EUR 448,000,000 in 2020 versus EUR478,000,000 in 2019.
Investments are up, excluding the acquisition of the real estate premises for the Sydney store in 2019. €195,000,000 were spent on the distribution network, specifically renovation projects with enlargements of the stores in Severin as Harbor City in Hong Kong Beijing China World in China Tokyo Maranouchi in Japan Wynn Plaza in Las Vegas, United States. EUR 124,000,000 spent on production investments, mainly in leather production sites and also the Silk and Textile sector. Lastly, EUR 129,000,000 were invested in Real Estate and IT and Digital Projects. In Eir Elia, a continuation of our rollout of the digital platform to Asia, Hong Kong, Macau and Korea.
Operational investments should continue apace in 2021. In Despite of the health and economic crisis, operating cash flow reaching almost €2,000,000,000 which is very near the level reached in 2019, which was a record year. Changes in working capital requirements are result mainly of the replenishment of inventory in the distribution network, which was especially low toward the end of 2019. After taking into account operational investments we mentioned previously, Available cash on hand, cash flow reaching almost EUR 1,000,000,000 for the full year period. Financial investments were mainly designed to continue vertical integration projects, inter alia, the acquisition of our long standing supplier, J3L, which we were a minority stakeholder of already.
After paying €498,000,000 in dividends, which is EUR 4 point EUR 4.55 per share, the same amount is paid out in 2019 and taking into account EUR 122,000,000 of share buybacks, EUR 169,000 shares, Restated cash position for the group, up EUR 342,000,000 reaching almost EUR 4,900,000,000. Changes in non current assets, this is mainly the increase in use rights pertaining to rental leases. Yes, the group continued in 2020 its projects to further develop its distribution network. Cash and cash equivalents just as 31 December 2019 represent just under half of the total of the balance sheet. Shareholders' equity boosted in 2020, going up €800,000,000 reaching €7,400,000,000 Shareholder equity represents twothree of the total sheet.
Increase in other liabilities, this is the result mainly of increased lease liabilities in line with rights of use, which are on the asset side of the balance sheet. The Hermes Group in 2020 consolidated a very strong financial structure with EUR 7,400,000,000 in shareholders' equity and net restated cash position, including financial investments of over 3 months reaching EUR 4,900,000,000. The high level of cash on hand and the economic financial Strength of this group mean that we are confident moving toward in 2021, proposing an ordinary dividend of €4.55 per share, the same amount as paid out in 2020, all the while maintaining our strategic investments, protecting our employees and creating around 700 jobs. The group further strengthened its sound financial structure. Thank you for your attention.
I would like to give the floor to Axel Dumas to talk to us about Q1 revenue as well as our outlook.
Thank you very much, Eric. The sales of 1st quarter are in strong progression with the A revenue, which reaches EUR 2,100,000,000 euros growing by plus 44% at constant rates and plus 33% as compared to the first 2019. Thanks to the remarkable performance of Asia and Japan and the recovery of America and the good resistance of Europe. This growth is sustained by the strong activity in the stores of the group, the plus 51%. The success of online sales was confirmed in all the regions with a very strong progression of traffic and conversion rate.
About the end of March 2021, all the metiers have renewed with growth with a remarkable progression over the division Clothes and Accessories, Watches and the other metiers of Hermes. I now come to the outlook of the group unchanged. For 2021, the impact of the COVID-nineteen epidemic remains difficult to assess as a result of the changes and evolutions occurring in the different geographical areas. In the medium term, despite economic, geopolitical and uncertainties in the world, the group confirms a objective of progression of revenue at ambitious one and constant rates. Serg, thanks to its unique enterprise model, Elmer's business strategy and the development in the long term of its artisanal model and Sustainable growth, responsibility founded on creativity, mastery of brand transmission of know and demandingness of quality.
Each year, a theme defined by Pierre Alexei Dumas, the Artistic Director of Hermes, is the guiding thread, as it were, for our creation and our communication actions. 2021 is placed under the sign of the Odyssey. Therefore, we must continue our travel with confidence, Confronting uncertainties of the world with our losing identity, we remain confident in the solidity of our model, agile and dynamic interface of a changing reality. We are pursuing our strategic investments in new production capacity in France with the creation of new jobs and special emphasis on training and transmission. We continue to develop our omnichannel strategy in order to stay in sync with new uses, which are ever changing.
This year, we are opening and enlarging several stores such as the Hermes store of the Rue De Cerre in Paris, that of Omotesando in Japan, but also a store in Beijing, in China and Detroit in the U. S. A. And we are pursuing the deployment, the rollout of the e commerce platform all over the world. Strategic investments are also planned in R and D for new exceptional materials in order to enrich our offering in a responsible approach.
This year, faithful to our METEAS creator, we once again will have the pleasure unveiling Our collections, H08, a watch for men, H24, a new men's fragrance signed by Christina Gell were presented in the first Finally, we have the pleasure of receiving Steve Gerta, number 1 worldwide for show jumping as a horse rider partner horse rider. Anticipating in-depth and lasting changes that we are experiencing Eric de Sen, who will present to you the main resolution submitted to the vote of our assembly. I'd like to thank you for your
attention.
Before presenting to you the main resolutions. Very sincerely, I would very much like to warmly thank Aixo Touma and Eric Du Algoette for the quality of their presentations this morning. And even more so, I would like to thank the employees, artisans, sales associates, managers who were all able to shoulder the responsibilities in this very unusual year of pandemic. Everyone has been able to support, contribute to the company, maintain the positive momentum and achieve these strong results, which yet again, it's been our privilege to share with you this morning. The resilience of our company is extremely substantial and is supported by values which are strengthening evermore and are shown even stronger when tough times happen such as was the case in 2020.
After this first quarter, very strong and promising. I would like to convey a message of support and encouragement to all employees and managers of the company who are enabling Emirates International to stay its course in spite of highly unusual in circumstances and environments. Lastly, I'd like to thank our customers and you, our shareholders, for your strong and unwavering support regardless of the circumstances, your support and your nearness grows greater every year. We're aware of this and we'd like to thank you once again from the bottom of our hearts. Now I would like to come to the presentation of the main resolutions, which are presented to you today.
Resolution 4, we're submitting for your approval allocation of The Supervisory Board proposes setting at €4.55 the amount of dividend per ordinary share. The dividend, therefore, would be identical to the previous year's dividend. An interim dividend of €1.50 per share was already paid on March 4th and the remainder of the ordinary dividend, which is EUR 3.05 per share will be detached from the share on May 6, 2021, paid in cash, 10 May 2021 based on positions closed 7 May in the evening. Resolutions 7 to 10, we're proposing for your approval total compensation and benefits paid or awarded during the period closed 31 December 2020 to the corporate officers as outlined on Pages 46% and 67% of the invitation to the meeting. In the context of the COVID-nineteen epidemic, The Executive Chairman decided to forego the increase that had been slated for the compensation, fixed and variable compensation in 2020.
Therefore, in 2020, they received the total amount of compensation, which was identical to the amount they received in 2019. Resolution 11, we're proposing for your approval Compensation policy for the Executive Chairman as described on Page 35 of the invitation to this meeting. The policy contains the principles for determining compensation, which have been enforced for many years and the compensation policy approved by the Shareholders' Meeting of 24 April 2020. Therefore, each executive chairman is entitled to a fixed compensation indexed on increase in consolidated revenues achieved during the previous financial period at constant scope and exchange rates. Variable compensation set in strict compliance with changes in consolidated profits before taxes for the previous financial period.
Since 2019, Executive Chairman of variable compensation has also partially been subject to a CSR criterion, which shows the ongoing commitments the group has to sustainable development. The indexes for the CSR component, 10% of which are for variable compensation and pertain to the following points: First of all, decoupling growth in business at constant exchange rate and scope and changes in industrial energy consumption secondly, actions undertaken for territorial anchoring of the group in France and worldwide outside of major cities. Lastly, group initiatives to foster gender for equality. Resolution 12, we're proposing for your approval compensation policy for Supervisory Board members as described on Page 35 of the invitation to this meeting. This policy contains the principles which have been applied for many years and the compensation policy approved by the shareholders' meeting 24 April 2020.
The shareholders' meeting of 16, 2017 Seth, at €600,000, the annual maximum amount of compensation allocated to Supervisory Board members. Principles for distribution decided by the Board of 16, 2017 described on Page 45 of the invitation to the meeting, take account of functions of each of the Supervisory Board members, whether they're Chairman of the Supervisory Board, Chairman of the Committee or simple committee member and of course, member of the supervisor board and also this takes account of meeting attendance. This is the major component. Now resolutions 13 to 16, we're proposing to you to reelect for the 3 year period terms in office for supervisory boards whose terms are expiring: Mr. Matche Dumas, Mr.
Blaise Gueron, Madame Olympier Guerra and Mr. Alexander Vyros. The 4 of them actively contribute, And thanks to their respective experience and their attendance to the quality of debates at the Supervisory Board in all of its areas of action. These four terms of office will end at the end of the shareholders meeting in 2024, which will vote on the financial statements for the fiscal period ending 31 December 2023. Resolutions 6 and 17, we ask you to renew Authorizations given to executive management every year to trade in company shares capped at 10% of capital with the possibility of canceling fees.
Maximum amount of amounts that can be committed would be set at EUR 2,500,000,000. The maximum purchase price, excluding fees, would be EUR 12 100 per share. Now we're going to move on to the resolutions and the extraordinary session, resolutions 18 to 23. We're asking for you to renew as we do every 2 years financial delegations of authority to give executive management requisite flexibility to act in the best interest of the company under the control of the Supervisory Board and the Management Board at the AMIL Hermes SARL General Partnership. Resolutions 2425, We're asking for you to delegate new authorities to the executive management to decide on 1 or more mergers, reabsorptions, spin offs or partial asset contributions subject to the spin off Regime, as well as the ability to decide on capital increase by issuing shares if use were made of the delegation authority previously mentioned.
Resolution 26 is proposed to you to amend the bylaws to take into account, which has already been presented by Mr. Boire, taking into account the transformation of AIM Hermes SRL into a simplified joint stock company. You will find in the universal registration document, which is also available on the MS Wind Finance website, a report by the Supervisory Board on Corporate Governance. Here, I'm alluding to Page 219. In the invitation to this meeting, you will also find the report by the Supervisory Board to the AGM.
It is on Page 57. Now we'd like to give the floor to our statutory auditors for them to report to you on their various findings. At Guadheras Cooper's audit. I would like to report to you on our assignment for the period ending 31 December 2020. I suggest in compliance with the custom of this AGM that we will summarize the points in our report which are contained in the universal registration document.
Our reports on the consolidated financial statements and the annual financial statements are to be found on Pages 398 to 402 and 424 to 427 in the Universal Registration document. The objective of our assignment is to ensure a reasonable assurance that the financial statements have no material misstatements. To this end, We organized our diligence as per organization of this group and locations in the various sectors both in France and abroad. We in 40 different subsidiaries located in 20 some countries. Just in spite of the health crisis, we were able to conduct all of our assignments satisfactorily in all of these countries.
Our audit approach and our conclusions were discussed with the group's financial management during regular meetings. We also reported on our work to senior management, also to the Audit and Risk Committee as well as to the Supervisory Board as a whole. The key audit points pertaining to risks of material misstatement, which we identify, taking account of their relative weight in the financials and the complexity of the evaluation and importance of judgment to be conducted to evaluate these have to do with for consolidated financial statements, evaluation of inventory and work in progress and recognition of currency hedging transactions. For the annual financial statements having to do with evaluation of security equity investments. You'll find a description of these as well as the on assignments we carried out in our reports.
After our work, we expressed an opinion with no reservation and No observations on consolidated financial statements and the financial statements of your company. Now pertaining to our report on related party agreements,
This
can be found on Pages 499 to 500 of the Universal Registration document. We communicate to you in this report that features in ways and means of the related party agreements, which we were apprised of without taking any stance on their usefulness or appropriateness. With that in mind, we informed that we were told of no related party agreements entered into during as a period which would be submitted for your approval. Our report also includes a description of all the related party agreements approved during previous shareholders' meetings. Lastly, we issued 3 reports for the extraordinary session of your shareholders' meeting.
These reports are on Pages 501 to 504 of the Universal Registration document, and they cover various authorizations having to do with the capital of your company. We have no observation on the information given in executive management's report on authorizations and operations that are envisaged. Final conditions for the issuing of shares or financial securities haven't yet been set. Therefore, we give no view, no opinion on these and therefore, we see nothing about the possibility of limiting preferential voting rates. We would establish an additional report, if need be, if these authorizations were used by your executive management.
Ladies and gentlemen, shareholders, Mr. Chairman, thank you for your attention.
Thank you very much. In the configuration of this closed session of the AGM, We are widely encouraged written questions. May I specify the response to written questions addressed to the company during the General And the is of the competence of the executive management. These questions are on the actions of MS in favor of the environment, concerning our commitments on the reduction of greenhouse gas emissions, preservation of biodiversity and Natural Resources as well as the solidarity visavis our suppliers and the social impact during the pandemic. Finally, other questions were also on themes of governance, equality ratio and gender equality.
All these written questions received as well as the answers brought to them are published on the Hermes Finance website, and you can, of course, consult them as of now. I would now like to inform you of the results of the vote of the resolutions, be it in the ordinary general meeting or extraordinary general meeting. First, Resolution on the approval of parent company financial statements is adopted by majority of 99.9 votes. 2nd resolution on the approval of consolidated financial statements is also adopted by a majority of 99.98% of the votes. 3rd resolution on the executive management discharge adopted by a majority of 99 with 5% of the votes.
4th resolution on the allocation of net income distribution of an ordinary dividend adopted by majority of 99.91 percent of the votes. 5th resolution, Approval of related party agreements adopted by a majority of 93.29 percent of the votes. 6th resolution, authorization granted to the executive management to trade in company's shares Adopted majority of 94.5 percent of the votes. 7th resolution, Approval of the information with regard to compensation for the financial year ended 31st December for corporate Adopted 95.1 percent of the votes. 8th resolution, approval of total compensation 2020 benefits of Mr.
Axa to my Executive Chairman. This is an individual ex post vote adopted by majority of 94 0.42 percent of the votes. 9th resolution on approval of total compensation benefits of AMI, the MSSA, RL Company Executive Chairman, again, individual ex post vote is adopted with majority of 94.41 percent of the votes. 10th resolution on the approval of Conversation 2020 of Mr. Eric Des Seine, Chairman of the Supervisory Board.
Here again in individual ex post vote adopted by majority of 99.99 percent of the votes. 11th resolution, approval of the compensation policy of the for the Executive Chairman. It's an ex anti vote adopted with majority of 94.12 percent of the vote. 12th resolution, approval of the composition policy for the supervisory board members, ex anti vote adopted Majority of 99.99 percent of the votes. 13th, resolution, Reelection of this the surprise board members, Mr.
Mattry Dyma adopted the majority of 95.77% of the votes. 14th resolution on the reelection of Mr. Blaise Guillais, Supervisory Board Member, the term of 3 years adopted majority of 96.91 percent of the votes. 15th resolution reelection of This is Olympi Guerrazza Zourav, Supervisory Board Member, adopting the majority of 96.95 percent of the votes. 16th resolution on the reelection of Mr.
Alexandre Veroz as Supervisory Board Member adopted by a majority of 99.96 percent of the votes. With regard to financial litigation, conferred to the management's 17th resolution on the reduction The 18th resolution, the increase in share capital by incorporation of reserves adopted by a majority of 99.89 percent of the votes. 19th resolution on the issue of shares, giving access to share capital and maintenance of preemptive subscription rights is adopted with 90 3.62 percent of the votes. 20th resolution on the issue of shares Given the access to capital with the preemptive source, which are canceled by the ability to establish for TETRA, 90 Securities give access to Chambord Capital reserve for members of the company. Group Savings Plan, repay and a subscription rate cancelled, adopted by 99.56 percent of the votes.
22nd resolution on the issue of shares given access to shares through public offering, restricted circle of investors or qualified investors adopted the majority of 90.29 percent of the votes. 23rd resolution on issue of shares giving access to check capital preemptive Rights Council in order to compensate contributors and kind of data to company relating to equity shares, adopt a majority of 92.09 percent of the votes. 24th resolution on the possibility of deciding on 1 or more operations of your merger by absorption is adopted by majority of 90.95 percent of the votes. 25th resolution on The increase in capital share by issuing shares in the event of use of delegation of authority granted to the executive Management that is adopted by majority of 90.44 percent of the votes. 26, Resolution Amendment of the articles of association, taking into account the transformation of the company, Milam Asaseiro, into Societe Barreux Simplifier adopted with the majority of 99.96% of the shares.
27th resolution, delegation of authority to carry out the formalities related to general meeting adopted with majority of 100% of We now come to the end of our general meeting. I sincerely hope that you were all able to enjoy this retransmission and also in the way in which we held our general meeting despite conditions. I would also like to wish that we very quickly come back to a more freer conditions of life and have that self fulfillment and be able to read together in one single place all together in a year's time for the AGM of Hermes International, which is planned for the 3rd May 2022. We've completed our agenda. I declare adjourned this meeting.