HERMÈS - 2018 Registration document

Additional information

Glossary

TheJointCouncilhearsallquestionsthataresubmittedto itbytheperson calling it or which it decides to examine, without however being able to make decisions in place of the bodies to which such powers are granted by law or the by-laws of the Company and those of Émile Hermès SARL. The Joint Council of the Executive Management and the Supervisory Board does not, itself, have any decision-making powers. It acts solely as a consultation body. If they so wish, at a Congressmeeting, the Executive Management and the Supervisory Board may make any decision or give any opinion within their sphere of competence. LEI LEI is a unique, global identifier that takes the form of a 20-digit alpha- numeric code. It is linked to key reference information. Developed by the International Organisation for Standardisation (ISO), the LEI is com- pulsory for all transactions in financial instruments listed on the stock exchange: it clearly and uniquely identifies the legal entities involved in such transactions. Limited Partners See “ Société en commandite par actions ” (Partnership Limited by Shares). Liquidity For a given security, this corresponds to the ratio between the volume of shares traded on the market and the number of shares comprising the floating stock. A security or amarket is said to be “liquid” when buy or sell transactions can be completed without causing any excessive variations compared to the last trading price. Management report Information document required by the French Commercial Code ( Code de commerce ) whereby the Corporate Officers and management bodies of a company report to the governing body on their management over the past year, and provide all significant information about the issuer and its future prospects. It is prepared by the same bodies as the ones that approve the annual financial statements. Companies preparing conso- lidated financial statements must also provide information about the management of the group. This document is included in the registration document. Market capitalisation This is the market value of a company at a given time. It is calculated by multiplying the stock market price by the number of shares comprising the capital. Net income/(loss) A company’s net income is the balance between all of its income and all of its expenses over a given period. It reflects what the company has earned or lost through its business activities over that period.

Operating cash flows Operating cash flows are all the financial resources generated by the company in connection with its activity that it could use to cover its finan- cial needs. It measures the company’s ability to finance its requirements in order to exist, using its own resources, such as investments or debt repayments. Organic growth Organic growth is the change in an indicator compared to the previous year, excluding effects due to a change of scope, foreign exchange or changes to accounting methods. Parent company financial statements The parent company financial statements are the annual financial state- ments of Hermès International taken individually. Quorum Minimum percentage of shares present or represented and carrying voting rights, required for a general meeting to validly proceed. Recurring operating income Recurring operating income is one of the principal performance indica- tors monitored by Group management. It excludes non-recurring items whose impact is significant and could be such as to affect the unders- tanding of the Group’s financial performance. Registration Document An information document about an issuer containing all the legal, econo- mic and accounting information presenting a company for a given year. While this document is optional, most large listed companies do draft a registration document. Registered Share When shares are registered shares, the custodian is the company itself or an agent appointed by the issuing company to keep its registered share accounts. For Hermès International, this agent is BNP Paribas Securities Services (BP2S). Holders of registered shares are known by name by the issuing company. They may either manage their shares themselves, in which case they are described as “pure” registered shareholders, or appoint an agent of their choosing to manage their account held with the issuing company, in which case they are described as “administered” registered shareholders. Remote voting A shareholder may vote by post using a form provided for this purpose or online (please refer to the corresponding notice of meeting). Restated net cash Restated net cash includes cash investments that do not meet IFRS cash equivalent criteria as a result of their original maturity of more than three months.

Net profit Positive income statement (P+L) balance.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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