HERMÈS - 2018 Registration document

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Corporate social responsibility

People: savoir-faire

Every year, the Executive Vice Presidents of the subsidiaries and their HR directors oversee the annual performance reviews, which are based on annual interviews that provide an opportunity to take stock of the past year and build the objectives for the coming year, especially in terms of training. The HR teams collect all of the roadmaps, on which the major points of the reviews are transcribed, and use them to put the training plan in place. In France (62%of employees), this update on employee skills and profes- sional development takes place in the form of a professional interview, which by law must take place every two years. Hermès has chosen to conduct this every year and to discuss the subjects reviewed during the professional interview at the annual interview. In our subsidiaries outside France, the annual interviews are conducted according to a process overseen by each subsidiary’s HR Department, based on the guidelines given every year by the Group HR Department via a guide and other support materials for the annual interview of employees, managers and leaders. All interviews involve a moment of discussion and the joint completion of the document reporting on the discussion and covering the following aspects: the achievement of the targets, performance, the managerial relationship, work/life balance, ethics and compliance, training requirements, and the targets set for the upcoming year. Certain subsidiaries adapt the Group formats in keeping with cultural requirements (e.g. HOP, Hermès Japan). The support given to employees throughout their career is informed by these annual interviews. Once a year, the subsidiaries also organise a Careers Committee, in which the Management Committees share indi- vidual situations and stimulate internal mobility, which is the first lever for personal development. The biannual Talent Reviews are also a way of learningmore about employees and following their trajectories closely. In 2018, the Talent Review was conducted in all subsidiaries and consoli- dated by theGroupHRdepartment. This enables Executive development to be followed closely through the adoption of individualised approaches. Internal mobility Internal mobility is a way of developing employees’ skills by offering them the possibility to learn something new in another job, and a way of encou- raging their loyalty. In 2018, the Intranet site “My way in Hermès” published 695 offers. It promotes internal mobility and makes it possible to share in-house job opportunities in a transparent way. The site records an average of 43,606 visits per month. Hermès Women recorded seven incoming transfers and seven outgoing transfers. At HTH, 30 permanent jobs were filled through internal mobility in 2018. At Hermès Leather Goods & Saddlery, 17 incoming transfers and ten outgoing transfers were recorded. In the Franche-Comté Leather Goods division, the opening of Manufacture de l’Allan resulted in 58 transfers. In the Paris Val-de-Seine Leather Goods division, 18 craftsmen moved from Pantin to other sites in France. For the new site of Montereau, ten employee transfers helped

to launch operations. 100% of the site’s managerial positions were filled through internal mobility. At Maroquinerie de Sayat, four incoming trans- fers and five internal transfers attest to the Company’s resolve to provide opportunities to our talents so they can grow. Maroquinerie des Ardennes recorded seven outgoing transfers and one promotion. The Savoie-Dauphiné Leather Goods division recorded seven outgoing transfers and eight incoming transfers, as well as five leather craftsmen expatriations. At Maroquinerie du Sud-Ouest, five outgoing transfers and five incoming transfers took place, including a reskilling from the métier of porcelain to leather work. A total of nine employees were given an internal promotion to another job. At the Hermès Of Paris subsidiary in the United States, 66 people bene- fited from internal mobility. Prix de l’Adresse This in-house prize for excellence is awarded every three years, with the aim of motivating people to push back their limits while boosting team spirit. A competition for the 4th Prix de l’Adresse took place in 2018. Over 100 craftsmen and women, divided into 19 teams, put all their skills into their projects. Seven lines of savoir-faire were represented: leather goods, silk, crystal, watches, footwear, men’s ready-to-wear and silvers- mithing. Volunteer craftsmen andwomen get together to forma teamand choose to produce either an object stemming from the Conservatoire des Créations Hermès or an object of their own creation. They then have several months to produce the object. A jury composed of members of the Hermès family and House personalities deliberated in November. The technical dossier and aesthetic qualities of the object are taken into account in the final appraisal. After nine months of work and an excep- tional human adventure, one team received the jury’s special prize, while nine teams were awarded the highly coveted Pièce de Maitrise Hermès prize at the end-of-year event held in Paris. Entreprise du Patrimoine Vivant (Living Heritage Company) - EPV The Group is proud to have 12 EPVs amongst its ranks: the following Group companies were certified “Entreprises du Patrimoine Vivant” in 2018: Hermès Sellier, Holding Textile Hermès, Établissements Marcel Gandit, Ateliers A.S., Siegl, Ateliers de Tissage de Bussières et de Challes, Beyrand, cristallerie Saint-Louis, Puiforcat, John Lobb and Les Tanneries du Puy. Meilleurs Ouvriers de France (MOF) This prestigious title is solely awarded in France, by métier category, fol- lowing a professional competition which takes place every three years. The goal is to reward excellence and savoir-faire , which are the required criteria for the awarding of the title. In 2018, the House had four employees in the cristal, saddlery and leather goods métiers who were named Meilleur Ouvrier de France , rewarding France’s best craftsmen and women.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL