HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE GOVERNANCE

SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE

Areas of improvement implemented in 2017 and early 2018

Text justifying improvement

The expectations of Board members (international dimension of the Group and nationality) on the composition of the Board must be taken into account when new members are next appointed. s Appointment in 2017 of new Board members including one of dual French-Portuguese nationality. Reflect on the conditions governing the distribution of directors’ fees. s Amounts revalued by the Supervisory Board at its meeting of 6 June 2017. The quantitative and qualitative criteria informing the assessment of the material nature of business relationships maintained by Board members must be described clearly and precisely. s These items are addressed in this registration document (see page 144). The diversity policy applied to Board members with regard to criteria such as age, gender or qualifications and professional experience as well as the objectives of this policy, the terms of its implementation and the results obtained should be described. s These items are addressed in this registration document (see page 140). The report of the Chairman of the Board on corporate governance and internal control should be replaced with a report on corporate governance prepared by the Board itself. s The corporate governance report is on page 117. Information on internal control and risk management procedures included in the Chairman’s report is now restricted to the preparation and processing of accounting and financial information and is included in the management report (page 45). The same goes for information on financial risks related to the effects of climate change.

Formal 2016 evaluation of the Board

Formal 2016 evaluation of the Board

Recommendation 8.5.3 of the AFEP-MEDEF Code AMF letter dated 11 July 2017

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Decree 2017-1265 of 9 August 2017 AMF letter dated 11 July 2017

Order 2017-1162 of 12 July 2017

Information on ethics should be expanded to include: • a dedicated ethics/compliance facet; • an ethical alert line; • an internal audit plan dedicated to ethics/compliance. s These items are addressed in this registration document (see page 176).

2017 EY Labrador rating

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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