HERMÈS - 2019 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

RELATED-PARTY TRANSACTIONS NOTE 31 Transactions with equity-accounted 31.1 associates Transactions with equity-accounted associates were not material in the financial year. Other related-party transactions 31.2 Relationships with other related parties, within the meaning of IAS 24 Related Party Disclosures can be summarised as follows: RDAI: RDAI architects were appointed to carry out design work on the s internal layout of all Hermès Group stores. The fees paid by the Group amount to €14.2 million excluding tax in 2019. RDAI, as well as the property companies mentioned below, are considered to be related parties given that certain members of Group Management or members of the Executive Management Board of Émile Hermès SARL or members of the Supervisory Board have personal interests therein and exercise significant influence; Émile Hermès SARL, Active Partner, is a société à responsabilité s limitée à capital variable (private limited company with variable capital) whose partners are the direct descendants of Mr Émile Hermès and his wife. The Executive Chairman of the Company is Mr Henri-Louis Bauer and the Company has an Executive Management Board. Each year, Hermès International pays 0.67% of the distributable profits to the Active Partner. In addition, Hermès International charges Émile Hermès SARL for certain services

provided and expenses incurred. Hermès International charged back €0.5 million in this respect in 2019 (including €0.2 million in respect of services provided, as in 2018); the company Studio des Fleurs: Studio des Fleurs offers photography s and retouching services for packshots of e-commerce products. The amounts paid in 2019 came to €3.2 million. Studio des Fleurs is considered a related party to the extent that a member of the Executive Management Board of Émile Hermès SARL has personal interests therein and exercises significant influence upon it; the company MOCE: MOCE (“EatMe” brand) provides fast food s services on the Hermès International site located at 12, rue d’Anjou. The amounts paid in 2019 came to €0.1 million. MOCE is considered a related-party to the extent that a member of the Supervisory Board has personal interests therein and exercises significant influence upon it; Ardian Holding: as part of the diversification of its investments, s Hermès International has an 11.91% equity interest in the company Ardian Holding, in which a member of the Supervisory Board has responsibilities. This commitment had been assumed prior to this person’s appointment. Certain of the above transactions constitute related-party agreements according to the definition contained in the French Commercial Code ( Code de commerce ). For further details, see the description of the proposed resolutions in chapter 8 of this document.

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Lease agreements with related parties 31.3

Security deposit

Lessor

Lessee Lease type

Term

Start

End

ADDRESS

Hermès International

Commercial

28/30/32 rue du Faubourg-St-Honoré

SAS SIFAH

lease 9 years 01/01/17 31/12/25 3 months

Hermès Sellier

Commercial

28/30/32 rue du Faubourg-St-Honoré

SAS SIFAH

lease 9 years 01/01/17 31/12/25 3 months

Hermès International Hermès International

Commercial

26 rue du Faubourg-St-Honoré

SAS SIFAH

lease 9 years 01/01/14 31/12/22 3 months

Commercial

26 rue du Faubourg-St-Honoré

SAS SIFAH

lease 9 years 01/01/17 31/12/25 3 months

Hermès Sellier

Commercial

23 rue Boissy-d’Anglas

SAS SIFAH S.C. Auguste Hollande

lease 9 years 01/01/18 31/12/26 3 months

Hermès Sellier

Commercial

74 rue du Faubourg-St-Antoine

lease 9 years 01/07/17 30/06/26 3 months

Comptoir Nouveau de la Parfumerie

4 rue du Pont Vert 27400 Le Vaudreuil

Briand Villiers I

Commercial lease

9 years firm 01/07/14 30/06/23 3 months

All of the transactions described were carried out on an arm’s length basis, i.e. on terms that would apply if the transactions had occurred between unrelated parties.

Total net value of right-of-use assets for the above-mentioned leases stood at €52.7 million in 2019 (versus €59.4 million in 2018). Amortisation of these right-of-use assets amounted to €9.4 million in 2019, compared with €9.1 million in 2018.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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