HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE GOVERNANCE

SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE

s IFA: RSE & durabilité du projet d’entreprise, mission stratégique du Conseil (new IFA recommendations) (January 2017); s AMF: Rapport du groupe de travail de la commission consultative épargnants (January 2017); s IFA: Le conseil d’administration et le reporting intégré (June 2017) ; s AFEP-MEDEF study on Hermès International’s application of the code (governance); s 2017 AFEP-MEDEF HCGE annual report on Hermès International’s practices (analysis and follow-up); s 2017 EY LABRADOR governance overview: Hermès International’s rating; s AMF Recommendation on the AGMs of listed companies (24 October 2017). In early 2018 the CAG Committee conducted a self-assessment of its work and workings and deemed them very satisfactory overall. s AFEP study on directors’ fees (July 2017); s France Board Index 2017 – SpencerStuart; The Audit Committee’s rules of procedure were updated on 17 November 2017 as follows: s the new approval procedure for services other than certification of financial statements (Article 2.2) was amended to include a descrip- tion of the procedure implemented by the Audit Committee taking into account the requirements of the H3C; These rules provide that at least half of the members of the Audit Committee must, at the time of their appointment and for the term their office, be qualified as independent under the Supervisory Board’s rules of procedure. This is currently the case. Before each Audit Committee meeting, Audit Committee members are sent, in good time, with reasonable lead time and subject to confiden- tiality requirements, a file containing documentation on items on the agenda requiring prior analysis and review. In 2017 the Audit Committee met six times (as in 2016). Individual and average rates of attendance are indicated in the table on page 144. s a new and clearer format was adopted.

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Composition and workings of the Audit Committee at 31 December 2017 The Audit Committee comprises the following members:

Monique Cohen, Chairwoman; Charles-Éric Bauer, member; Sharon MacBeath, member; Renaud Momméja, member;

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s Robert Peugeot, member. The composition rules, duties and operating provisions of the Audit Committee are described in detail in the rules of procedure approved by the Supervisory Board and have existed since 24 March 2010. The third version of the rules of procedure dated 17 November 2017 is provided on page 174 and each update is made available online at http://finance.hermes.com/en/Corporate-Governance/Management- Bodies/The-Specialized-Committees-of-the-Supervisory-Board.

Summary presentation of the members of the Audit Committee

Specific expertise in finance or accounting

Date of appointment

Term of office on the Board

Length of service on the Committee

Name

Independent

Monique Cohen (Chairwoman)

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√ 03/06/2014 √ 26/01/2005 √ 31/05/2016 √ 03/06/2008 √ 03/06/2008

2020 GM 4 years 2019 GM 13 years 1 2019 GM 2 years 2020 GM 10 years 2018 GM 10 years

Charles-Éric Bauer Sharon MacBeath Renaud Momméja

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Robert Peugeot

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(1) Charles-Éric Bauer was appointed to the Audit Committee before joining the Supervisory Board (before Ordinance 2008-1278 of 8 December 2008 there was no law requiring Board membership).

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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