HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE GOVERNANCE

SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE

Situation of each member of the Supervisory Board in view of the above -criteria On 31 December 2017 the Board examined the situation of each of its members in the light of the above criteria on a case-by-case basis and deemed four of them to be independent: Monique Cohen, Dominique

Senequier, Sharon MacBeath and Robert Peugeot. In particular the Board identified no significant business relationships between its members and the Company. This analysis is performed each year on the basis of a questionnaire sent to all Supervisory Boardmembers (see page 144 below).

Criteria

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8 Independent

Éric de Seynes (Chairman)

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Monique Cohen (Vice-Chairwoman) Dominique Senequier (Vice-Chairwoman) Frédéric Afriat (Employee representative)

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Dorothée Altmayer Charles-Éric Bauer Matthieu Dumas Blaise Guerrand Olympia Guerrand Sharon MacBeath Renaud Momméja Robert Peugeot Julie Guerrand

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On 21 March 2017 the Supervisory Board’s rules of procedure were updated as follows: s the reference to the AFEP-MEDEF code revised in November 2016 was updated (§ 1.1.21.); s the proportion of independent members was clarified (§ 1.1.2.3.); s the provisions contained in the Supervisory Board’s ethics charter were included (§ 1.1.3); s the wording was made clearer overall. On 26 January 2018 the Supervisory Board’s rules of procedure were updated as follows: s the procedure for declaring business relationships was clarified (§ 1.1.3.6.); s the new terms of distributing directors’ fees adopted in June 2017 were included (§ 3.1.). On 26 January 2011 the Supervisory Board adopted an ethics charter with the aim of contributing to the quality of the work of Supervisory Board members by promoting the application of corporate governance principles and best practices in terms of ethics and effectiveness. In early 2017 the Supervisory Board’s ethics charter was replaced: s by the Hermès Group Code of Market Ethics which lays out strict guidelines on Preventing Insider Misfeasance, Market Ethics, Closed Period Obligations, and Disclosure Obligations . The Code received the endorsement of the AMF and came into force on 1 February 2017 as part of the update of the market abuse prevention system within the Hermès Group;

In accordance with Article 8.3 of the November 2016 AFEP-MEDEF Code, independent members must make up at least one-third of the Supervisory Board in controlled companies as definedby Article L. 233-3 of the French Commercial Code. Article 1.1.2.3 of the Supervisory Board’s rules of procedure states that at least one-third of Board members must be independent. Employee Representative Board members are not included in the calcu- lation of this percentage. The Supervisory Board has complied with this proportion since it was introduced in 2009. Rules of procedure – Code of market ethics At itsmeeting of 18March 2009 the Supervisory Board adopted its rules of procedure which set out the terms governing the structure and wor- kings of Hermès International’s Supervisory Board and its committees in addition to legal and statutory provisions. Their purpose is to enhance the quality of the Board’s work by promoting the application of good corporate governance principles and best practices, in the interests of ethics and greater effectiveness. It has been revised several times, notably to comply with legislative and regulatory developments and to take into account the recommendations of the AMF as well as revisions to the AFEP-MEDEF Code. The ninth version of the rules of procedure dated 26 January 2018 is provided on page 169 and each update is made available online at http://finance.hermes.com/en/Corporate-Governance/ Management-Bodies/The-Supervisory-Board. 3.1.3.7 Business ethics of the Supervisory Board

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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