HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY

PEOPLE

Beyrand At Beyrand , training was provided to ensure optimal employee safety. All employees exposed to the risk of musculo-skeletal disorders were trained in warm-up and stretching exercises. Workplace First Aiders annually renew their knowledge in order to be able to act effectively in case of accident. An update was provided on the knowledge of pallet truck drivers following the acquisition of several electrical equipment items. Puiforcat At Puiforcat , the induction of new hires was reinforced by a safety book enriched by a sharing on risk situations and the presentation of risk sheets. Awareness-raising of the damage caused by smoking and help in stop- ping smoking took place over the year in partnership with the occupa- tional health doctor. Hermès Distribution France The division continued to roll out the fire safety and prevention pro- gramme by holding evacuation exercises, in particular, to test the tech- nical equipment. Through this programme, employees were made aware of various risks (fire, electricity, and so on) and the security culture was reinforced. Workplace accidents The diversity of the Group’s activities (as it is both a manufacturing and trading company), and its geographic locations (France and overseas) make it difficult to provide overall analyses and comparisons of work- place accident statistics. Health and safety is of course a key priority for all of the House’s managers. In 2017, the frequency rate of workplace accidents with stoppage for the Group as a whole stood at 10.1 for a severity rate of 0.46. This calcula- tion is based on the total number of actual hours worked. It is difficult to interpret because of the variety of trades in the Group. In France, the frequency rate is 14.8 with a severity rate of 0.75, com- pared to 14.9 and 0.63 last year. Our industrial workforce represents 69% of our workforce in France, and therefore impacts these rates. The rates of the main trades concerned (leather, tannery, crystal) are below the rates of their segments. Internationally only, the frequency rate is 4 and the severity rate is 0.08. Leather Goods In the Leather Goods division, the frequency index has remained stable between 2016 and 2017. It has halved since 2012. The severity index has increased slightly, despite a stable number of accidents for a like level of activity. The typology of accidents in 2017 is the same as in 2016, no irreversible injury or injury causing permanent disability was recorded. 2.3.4.3

Each work-related accident is the subject of an “accident” investiga- tion, with analysis of the causes. In the event of an accident, the factory concerned disseminates an accident report to the entire division and asks for comments and advice from its counterparts. Thus, a sharing of experiences and good practices is in place, allowing health and safety at work departments to exchange their opinions and think about common solutions to the risks identified. Tanneries Frequency and severity rates have risen between 2016 and 2017 wit- hin the division. They remain, nevertheless, well below the rates of the branch. Each work-related accident has its causes analysed. An information note is then distributed to all tanneries so that preventive actions can be implemented. Textiles The number of work accidents in the Textile industry is stable compared to 2016, but the number of days of work stoppage has decreased consi- derably. The number and nature of accidents are the subject of a dis- cussion and exchange on each of the sites of the sector, to accelerate the sharing of good practices. Each significant incident is investigated leading to corrective actions. Perfumes The frequency rate of CNP ( Comptoir Nouveau de la Parfumerie ) decreased again in 2017. It remains far below the frequency rate for the chemical segment. However, the severity rate has increased slightly as the accidents, though fewer in number, generated longer stoppages. Furthermore, therewere no accidents on theway to or fromwork in 2017. For the 5th year, in connection with the evaluation of our chemical risks, a campaign to control the exposure of employees was carried out. Crystal The accident situation at the site improved significantly between 2016 and 2017. The frequency rate dropped by a third, while the severity rate has continued to decline almost continuously since 2012. The actions taken, particularly with regard to the facilitation and appropriation of safety by the various workshop leaders, must be pursued. Supporting this desire to improve and reinforce the safety aspect, a support and training project has been initiated. WORKING ENVIRONMENT The working conditions of the company’s employees are the subject of great attention. Some examples of improvements in this area in 2017 are: Leather Goods To protect employees, the work begun in 2014 to improve the machines continued. Noise reduction is a major objective of this work. Working clo- sely withmanufacturers or suppliers of equipment, the central teams are revising the systems for noise reduction at the source to ensure greater comfort in the workshops. 2.3.5

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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