HERMÈS - 2018 Registration document

Combined General Meeting of 4 June 2019

Statutory Auditors’ reports

Your company also invoiced Faubourg Italia for licence fees amounting to €180,649 in 2018. 4. Deferred compensation commitments in favour of a Corporate Officer Person concerned Mr Axel Dumas, Executive Chairman of Hermès International. Nature, purpose and conditions In its meeting of 4 June 2013 your Supervisory Boardmade the following commitments with regard to Mr Axel Dumas’ compensation: s s the benefit of the defined contribution supplementary pension plan put in place for all the personnel of the group’s French companies; s s the benefit of the supplementary pension plan put in place in 1991 for the company’s Senior Executives. The pension plan notably pro- vides as a necessary condition for benefiting from the scheme, the definitive ending of the professional career in the enterprise after at least ten years of service, and the drawing of the basic Social Security pension. The annuity resulting from this scheme, if all the eligibility conditions are met, would be calculated on the basis of the average of the last three years’ compensation andmay not exceed an amount equal to eight times the annual Social Security ceiling; s s in the event of the cessation of the Executive Chairman’s functions, your company has undertaken to pay Mr Axel Dumas an indemnity equal to twenty-four months of compensation (statutory plus addi- tional). The payment of such compensation is also subject to the fol- lowing performance conditions, such that the conditions of his depar- ture are in equilibrium with the situation of the Company: achieving budget targets in at least four out of the five previous years (with growth in both revenue and operating income measured at constant rates), without deterioration in the Hermès brand image. Payment of this indemnity will also be subject to the termination of duties resulting: s s either from a decision of the Executive Chairman made by reason of a change of control of the company, the replacement of the Executive Chairman of Emile Hermès SARL, Executive Chairman of the com- pany, or a change in the company’s strategy; s s from a decision taken by the Company. 5. Maintaining in favour of a Corporate Officer of the group collective cover for healthcare and death and disability insurance expenses in force in the company for employees and Corporate Officers Person concerned Mr Axel Dumas, Executive Chairman of Hermès International. Nature, purpose and conditions On 19 March 2014 your Supervisory Board authorised the maintaining, in favour of Mr Axel Dumas, of collective cover for healthcare and death and disability insurance expenses in force in Hermès Group companies.

Nature, purpose and conditions On 6 June 2017, your Supervisory Board authorised the signing of a contract between Hermès International and MOCE (“EatMe” brand) for fast food services at Hermès International’s site at 12, Rue d’Anjou (75008). Reason justifying the benefits for the Company Hermès International invited bids froma number of providers of fast food catering services in the context of a consultation. MOCE was selected on account of its commercial offering. This company did not propose any fixed charges and planned to develop the space in harmony with the building. For 2018, invoicing for these services amounted to €114,829. 3. Brand licensing contracts Persons concerned s s Hermès International, direct or indirect holder of more than 10% of the shares of the licensed companies referred to hereunder; s s for Comptoir Nouveau de la Parfumerie: Matthieu Dumas and Dorothée Altmayer, members of the Supervisory Board of Hermès International and directors of Comptoir Nouveau de la Parfumerie; s s for Hermès Sellier: Olympia Guerrand, Eric de Seynes and Blaise Guerrand,membersoftheSupervisoryBoardofHermèsInternational and of the Management Board of Hermès Sellier; s s for La Montre Hermès: Axel Dumas, Executive Chairman of Hermès International and director of La Montre Hermès. Nature, purpose and conditions On 27 January 2017, your Supervisory Board authorised the renewal, by rider, of the brand licensing agreements and their riders which had expired on 31 December 2016. The change in these contracted licences to indefinite duration had no financial impact. s s to transform these agreements into agreements with unlimited dura- tion, with the possibility for each party to terminate them at any time subject to written advance notice of at least one year; and s s to update the list of brands covered by the licence, in particular so as to include the new brands registered since the last rider. The brand licensing agreements and their riders gave rise to the following licence fees in 2018: Reason justifying the benefits for the Company The purpose of the renewal of these contracts was:

Amount of licence fees in respect of 2018

Company

Hermès Sellier

€122,623,854 €14,647,891

8

Comptoir Nouveau de la Parfumerie

La Montre Hermès

€3,950,761

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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