HERMÈS - 2018 Registration document

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Corporate Governance

Supervisory Board’s report on corporate governance

Stock Market Ethics Code On 26 January 2011 the Supervisory Board adopted an ethical charter with the aim of contributing to the quality of the work of Supervisory Board members by promoting the application of corporate governance principles and best practices in terms of ethics and effectiveness. In early 2017 the Supervisory Board’s ethical charter was replaced: s s by the Hermès Group Code of Stock Market Ethics which lays out ethical guidelines on Preventing Insider Trading, Market Ethics, Closed Period Obligations, and Disclosure Obligations . This Code, whose implementation is recommended by the AMF, came into force on 1 February 2017 as part of the update of the market abuse pre- vention system within the Hermès Group; s s by the Supervisory Board ’s rules of procedure, which adopted in full the remaining provisions. A summary of the Hermès Group Code of StockMarket Ethics is provided onpage352andeachupdateismadeavailableonlineathttps://finance. hermes.com/en/Corporate-Governance/Management-Bodies/ The-Supervisory-Board. The Code was updated on 25 July 2017, on 1 January 2018 and on 16 November 2018 as follows: s s inclusion of precautionary measures concerning broadcast/com- ments on social networks and media in connection with the Hermès Group; s s update of the applicable regulations (CNIL Decision 2017-200 dated 6 July 2017, ESMA interpretations, adaptation to GDPR); s s editorial details. Attendance The Supervisory Board’s rules of procedure (Article 1.1.3.8.) note that members of the Supervisory Board shall regularly and diligently take part in meetings of the Board and its Committees to which they belong. The principles governing the distribution of directors’ fees and compen- sation adopted by the Board include a variable component in proportion to attendance at meetings, which is currently 64.53% for the Supervisory Board and 60% for the Committees. Remote attendance using telecom- munications facilitiesmust remain exceptional but is remunerated under the same conditions.

Business ethics of the Supervisory Board

3.1.4.7

Rules of procedure At itsmeeting of 18March 2009 the Supervisory Board adopted its rules of procedure, which set out the terms governing the structure and func- tioning of Hermès International’s Supervisory Board and its committees, in addition to applicable legal and statutory provisions. Their purpose is to enhance the quality of the Board’s work by promoting the application of good corporate governance principles and best practices, in the inte- rests of ethics and greater effectiveness. It has been revised several times, notably to comply with legislative and regulatory developments and to take into account the recommendations of the AMF as well as revisions to the AFEP-MEDEF Code. These rules of procedure are revised on a regular basis to be in line with revisions of the AFEP-MEDEF Code and with the regulatory environment. The twelfth version of the rules of procedure dated 19 March 2019 is set out in full on page 207 and each update is made available online at https://finance.hermes.com/en/Corporate-Governance/ Management-Bodies/The-Supervisory-Board. On 26 January 2018 the Supervisory Board’s rules of procedure were updated as follows: s s the procedure for declaring business relationships was clarified (§ 1.1.3.6.); s s the new terms for distributing directors’ fees adopted in June 2017 were included (§ 3.1.). The Supervisory Board’s rules of procedure were updated on 11 September 2018 in particular to include certain provisions of the AFEP-MEDEF Code revised in June 2018, as follows: s s addition of the new duty assigned to the Chairman of the Supervisory Board regarding communication with shareholders (decision of the Supervisory Board of 20 March 2018); s s update of the date of revision of the Code (§ 1.1.21.); s s inclusion of the provisions of Articles 1.4 to 1.7, 4.4 and 6.2 of the Code (§ 1.2.4.); s s addition of the provisions of Article 19 of the Code (§ 1.1.3.6.). The Supervisory Board’s rules of procedure were updated on 25 January 2019 and 19 March 2019 as follows: s s update of the name of the CAG-CSR Committee; s s addition of rules whereby the Board is informed of the Company’s

financial position, the cash position and commitments; s s update of the name of the Audit and Risk Committee.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL