HERMÈS - 2018 Registration document

Additional information

Glossary

GLOSSARY

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Active Partners See “ Société en commandite par actions ” (Partnership Limited by Shares).

Capital gain The profit made on the sale or disposal of a security. It is equal to the positive difference between the sale price and the purchase or subscrip- tion price.

A&RMD Audit and Risk Management Department.

Consensus This is the mean value of forecasts made by analysts.

AFEP-MEDEF Code Corporate governance code of listed corporations developed by the Association française des entreprises privées (AFEP) and the Mouvement des entreprises de France (MEDEF), after consultationwith the various parties of the financial marketplace. This code provides a set of demanding and precise recommendations on corporate gover- nance. It can be designated by listed corporations as their reference code pursuant to Articles L. 225-37 et L. 225- 68 of the French com- mercial code ( Code de commerce ). The AFEP-MEDEF Code is revised on a regular basis. Articles of Association The Articles of Association are a deed of incorporation of a company which define its characteristics and the rules governing its operation. An amendment of the by-laws requires the agreement of all the active partners and a vote by an extraordinary general meeting. Audit and Risk Committee A committee of the Supervisory Board in charge of the financial state- ments, audit, risks, and corruption prevention. Bearer Share When shares are in bearer form (the most common), the custodian is a financial intermediary (bank or stock market firm). This intermediary is the only entity to know the individual shareholder’s identity, so the issuing company does not know the name of the holders of these shares. CAG-CSR Committee A committee of the Supervisory Board in charge of compensations, appointments, governance, and corporate social responsibility. Capital increase Operation conducted to increase the company’s equity capital. A capital increase is either done by increasing the par value of existing shares, or by creating new shares proceeding from subscriptions in cash, contribu- tions in kind or profits, reserves or issue of share premiums incorporated into the capital. Capital increases may be carried out with or without subscription rights. They may enable new shareholders to hold a part of the company’s capital. They must be previously approved by an extraor- dinary general meeting.

Growth in revenue at constant exchange rates Growth at constant exchange rates is calculated by applying, for each currency, the average exchange rates of the previous period to the reve- nue for the period. Consolidated financial statements The consolidated financial statements consolidate all of the financial statements of the companies forming theHermèsGroup, for the purpose of presenting the financial position as if they formed a single entity. s s covers certain principles of efficient operation and transparency to improve a company’s management and meet demands from inves- tors and the public; s s concerns all the responsibilities, processes and practices designed todefineGroupmanagement and theCompany’s strategic actions, to ensure that risks are correctly managed and that goals are achieved; s s covers all the different bodies (Supervisory Council and its specia- lized committees, Executive Committee, etc.) put in place to oversee the management of a publicly-traded company. Declaration that the Corporate officers, the persons acting on their behalf, and the persons related to them are required to make to the issuer and the AMF, in respect of the transactions they carry out on the shares and debt securities of the company in which they perform their duties and the related financial instruments. This declaration must be made within three working days starting from the date of the transaction (for more information, see the “ guide de l’information permanente et de la gestion de l’information privilégiée ” DOC- 2016-08 of the AMF). Dividends Portion of the company’s profits, retained earnings or reserves that the General Meeting, on a recommendation by the Supervisory Board, decides to distribute to the shareholders. The dividend represents the share earnings, and its amount varies each year depending on the com- pany’s results and the policy it adopts. Declaration by Senior Executives (upon disposal of securities) Corporate governance Corporate governance:

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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