HERMÈS - 2018 Registration document

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Corporate Governance

Supervisory Board’s report on corporate governance

Governance – Appointments – Compensation In 2018 the Supervisory Board: s s reviewed and/or approved the reports and work of the CAG-CSR Committee described on page 185 et seq. ; s s set the allocation and payment of compensation and directors’ fees for 2017 to Board and Committee members; s s kept itself informed at each meeting of all transactions carried out by the Executive Chairmen pursuant to the AMF’s position-recommen- dation set out in DOC-2016-08 “Guide to permanent information and managing inside information”; s s approvedtheproposalsofreappointmentorreplacementofmembers of the Supervisory Board to be considered at the General Meeting; s s decided on the composition of the Audit and Risk Committee and the CAG-CSR Committee after the General Meeting; s s confirmed the diversity targets set for the composition of the Board; s s assigned to the Chairman of the Supervisory Board the responsibility for communicating with shareholders on behalf of the Board; s s decided to strengthen the role of the Audit and Risk Committee and the CAG-CSR Committee; s s attended a presentation on the non-discrimination and diversity policy in the governing bodies. At each meeting the CAG-CSR Committee informed the Supervisory Board of current events relating to governance (e.g. AMF reports, AFEP- MEDEF reports, HCGE report and implementation guide, IFA studies). Ethics and compliance – Personal data protection Ethics and compliance issues as well as the related programmes have been shared regularly with the Supervisory Board since 2015. A presentation to the Supervisory Board on the personal data pro- tection system, in accordance with the GDPR (European regulation No. 2016/679 of April 27, 2016), implemented in the Group, is planned for 2019. The systems implemented in the Group are described on pages 214 et seq. The Supervisory Board’s rules of procedure were updated on 11September2018 inparticularto includenewdutiesrelatingtothesys- temforthepreventionanddetectionofcorruptionandinfluence-peddling (§ 1.2.4.2.) in accordance with the new provisions of the AFEP-MEDEF Code revised in June 2018. On 16 November 2018, the Audit and Risk Committee was assigned a new duty relating to the prevention of corruption: Ensure the implemen- tation of a system for the prevention and detection of corruption and influence-peddling . On 19 March 2019, the Supervisory Board decided to rename the Audit Committee the "Audit and Risk Committee".

s s examined the 2018 budget; s s reviewed documents on forecasting and planning; s s determined the allocation of earnings to be put to the General Meeting of 5 June 2018; s s reviewed the situation of certain equity investments; s s formally noted proposals for acquisitions, disposals and equity investments; s s formally noted investment proposals; s s examined the reports and work of the Audit and Risk Committee des- cribed on pages 189 et seq. ; s s formally noted the proposed change to the timetable of financial publications, Board meetings and General Meeting in 2020. Recommendations, authorisations and other items In 2018, the Supervisory Board: s s authorised and reclassified related-party agreements and carried out an annual review of those for which the effects were ongoing (see the Supervisory Board’s report to the General Meeting on page 396); s s approved the resolutions put to the Combined General Meeting of 5 June 2018 and acquainted itself with the reports drawn up by the Executive Management; s s approved the presentation and the amendment to the 6th resolution of the General Meeting of 5 June 2018 proposed by the Executive Management; s s formally noted the summary statement of services provided by Hermès International to Émile Hermès SARL in 2017 and projections for 2018; s s discussed the Company’s policy with regard to gender equality and equal pay; s s approved the updated lists of authorised signatories and banks of Hermès International; s s renewed (overall limit given to the Executive Management in favour of subsidiaries) or authorised (special authorisations) the sureties, endorsements or guarantees granted by Hermès International; s s conducted the annual review of all sureties, endorsements and gua- rantees granted and still in force; s s approved the updated rules of procedure of the Supervisory Board, the CAG-CSR Committee and the Audit and Risk Committee; s s drewup responseswhereapplicable to the opinion of theWorks coun- cil on the Company’s strategic orientations; s s approved the updated Code of Market Ethics of the Hermès Group; s s noted the responsibility inherent in holding inside information; s s approved the acceptance by Mr Axel Dumas of a directorship at L’Oréal; s s formally noted the appointment of a Group Data Protection Officer.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL