| CONTENTS | 2 |
| MESSAGE FROM THE EXECUTIVE MANAGEMENT | 7 |
| HIGHLIGHTS 2019 | 8 |
| 1. OVERVIEW OF THE GROUP | 11 |
| 1.1 STAGES OF THE GROUP’S HISTORY | 13 |
| 1.2 GROUP GOVERNANCE | 17 |
| 1.3 KEY FIGURES | 18 |
| 1.3.1 BREAKDOWN OF REVENUE BY MÉTIER 2019 VS. 2018 | 18 |
| 1.3.2 BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA 2019 VS. 2018 | 18 |
| 1.4 STRATEGY | 20 |
| 1.5 ACTIVITY BY MÉTIER | 22 |
| 1.5.1 LEATHER GOODS & SADDLERY | 22 |
| 1.5.2 READY-TO-WEAR AND ACCESSORIES | 24 |
| 1.5.3 SILK AND TEXTILES | 26 |
| 1.5.4 OTHER HERM.S MÉTIERS | 26 |
| 1.5.5 PERFUMES | 27 |
| 1.5.6 WATCHES | 27 |
| 1.5.7 OTHER PRODUCTS AND BRANDS | 27 |
| 1.5.8 PARTNERSHIPS | 30 |
| 1.6 ACTIVITY BY GEOGRAPHIC AREA | 30 |
| 1.6.1 EUROPE | 31 |
| 1.6.2 AMERICAS | 31 |
| 1.6.3 ASIA-PACIFIC | 32 |
| 1.6.4 HERM.S POINTS OF SALE WORLDWIDE | 33 |
| 1.6.5 DIGITAL STRATEGY | 36 |
| 1.7 SIMPLIFIED GROUP ORGANISATIONAL CHART | 37 |
| 1.7.1 SUMMARY DESCRIPTION OF THE GROUP AS AT 31 DECEMBER 2019 | 37 |
| 1.7.2 PRODUCTION FACILITIES | 38 |
| 1.8 CONSTRUCTION | 40 |
| 1.9 FONDATION D’ENTREPRISE | 40 |
| 1.10 SIGNIFICANT EVENT SINCE THE LAST FINANCIAL YEAR | 41 |
| 1.11 RISK FACTORS | 42 |
| 1.11.1 RISKS RELATED TO STRATEGY AND OPERATIONS | 44 |
| 1.11.2 INDUSTRIAL RISKS | 49 |
| 1.11.3 LEGAL AND REGULATORY RISKS | 53 |
| 1.11.4 RISKS RELATED TO SOCIAL, SOCIETAL AND ENVIRONMENTAL RESPONSIBILITY | 54 |
| 1.11.5 FINANCIAL RISKS | 57 |
| 1.11.6 INSURANCE POLICY AND RISK HEDGING | 60 |
| 1.11.7 INTERNAL CONTROL AND RISK MANAGEMENT SYSTEMS ESTABLISHED BY THE COMPANY | 60 |
| 1.12 INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES RELATING TO THE PREPARATION AND PROCESSING OF ACCOUNTING AND FINANCIAL INFORMATION | 66 |
| 2. CORPORATE SOCIAL RESPONSIBILITY | 69 |
| 2.1 BUSINESS MODEL | 73 |
| 2.1.1 A FRENCH MODEL OF CRAFTSMANSHIP | 76 |
| 2.1.2 CONTRIBUTIVE, SOLID AND SUSTAINABLE GROWTH | 78 |
| 2.1.3 COMMITMENTS THAT DRIVE DURABILITY | 79 |
| 2.2 PEOPLE: TEAMS | 83 |
| 2.2.1 CHALLENGE: THE WELL-BEING AND DEVELOPMENT OF EMPLOYEES | 83 |
| 2.2.2 CHALLENGE: MAINTAINING DIVERSITY | 95 |
| 2.2.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs) | 99 |
| 2.3 PEOPLE: SAVOIR-FAIRE | 102 |
| 2.3.1 CHALLENGE: RECRUITING TALENTS | 102 |
| 2.3.2 CHALLENGE: PRESERVING AND DEVELOPING SAVOIR-FAIRE | 106 |
| 2.3.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs) | 112 |
| 2.4 PLANET: RAW MATERIALS | 114 |
| 2.4.1 CHALLENGE: SECURING HIGH-QUALITY SUPPLIES | 114 |
| 2.4.2 CHALLENGE: MANAGING RAW MATERIALS SPARINGLY | 118 |
| 2.4.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs) | 122 |
| 2.5 PLANET: ENVIRONMENT | 124 |
| 2.5.1 CHALLENGE: LIMITING CONSUMPTION OF NATURAL RESOURCES (WATER, ENERGIES) | 126 |
| 2.5.2 CHALLENGE: MANAGING GREENHOUSE GAS EMISSIONS | 135 |
| 2.5.3 CHALLENGE: MANAGING WASTE | 141 |
| 2.5.4 CHALLENGE: RESPECTING AND PRESERVING BIODIVERSITY | 144 |
| 2.5.5 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs) | 148 |
| 2.6 COMMUNITIES: SUPPLIERS & PARTNERS | 151 |
| 2.6.1 CHALLENGE: LONG-TERM PARTNERSHIPS AND WORK WITH SOCIALLY SUPPORTED ORGANISATIONS | 151 |
| 2.6.2 CHALLENGE: SUPPORTING SUPPLIERS | 154 |
| 2.6.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs) | 162 |
| 2.7 COMMUNITIES: STAKEHOLDERS AND LOCAL INTEGRATION | 164 |
| 2.7.1 CHALLENGE: REGIONAL RESPONSIBILITY IN FRANCE | 165 |
| 2.7.2 CHALLENGE: A SOCIALLY RESPONSIBLE COMPANY | 168 |
| 2.7.3 CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS (SDGs) | 174 |
| 2.8 ETHICS - COMPLIANCE | 176 |
| 2.8.1 COMMITMENTS | 176 |
| 2.8.2 ORGANISATION | 179 |
| 2.8.3 IMPLEMENTATION | 180 |
| 2.8.4 CONTROL AND ASSESSMENT SYSTEM | 186 |
| 2.9 REPORT BY ONE OF THE STATUTORY AUDITORS, APPOINTED AS AN INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED NON-FINANCIAL INFORMATION STATEMENT INCLUDED IN THE MANAGEMENT REPORT | 188 |
| THE ENTITY’S RESPONSIBILITY | 188 |
| INDEPENDENCE AND QUALITY CONTROL | 188 |
| RESPONSIBILITY OF THE STATUTORY AUDITOR, APPOINTED AS AN INDEPENDENT THIRD PARTY | 188 |
| NATURE AND SCOPE OF OUR WORK | 189 |
| MEANS AND RESOURCES | 190 |
| CONCLUSION | 190 |
| APPENDIX: LIST OF THE INFORMATION WE CONSIDERED MOST IMPORTANT | 191 |
| 3. CORPORATE GOVERNANCE | 193 |
| SUPERVISORY BOARD'S REPORT ON CORPORATE GOVERNANCE | 196 |
| 3.1 THE COMPANY’S CORPORATE GOVERNANCE CODE | 196 |
| 3.1.1 CORPORATE GOVERNANCE PRINCIPLES APPLIED | 196 |
| 3.1.2 PROVISIONS OF THE AFEP-MEDEF CORPORATE GOVERNANCE CODE, UPDATED IN JANUARY 2020, NOT APPLIED BY VIRTUE OF THE COMPANY’S LEGAL FORM OR OTHER REASONS – NEWLY COMPLIED WITH | 196 |
| 3.2 ORGANISATIONAL STRUCTURE OF HERM.S INTERNATIONAL AS OF 31 DECEMBER 2019 | 198 |
| 3.3 ADMINISTRATIVE AND MANAGEMENT BODIES | 199 |
| 3.3.1 SUCCESSION PLAN FOR SENIOR EXECUTIVES | 199 |
| 3.3.2 THE GROUP’S MANAGEMENT (ROLE AND COMPOSITION, LIST OF OFFICES AND FUNCTIONS PERFORMED) | 199 |
| 3.4 SUPERVISORY BOARD: COMPOSITION AND CONDITIONS GOVERNING THE PREPARATION AND ORGANISATION OF WORK | 211 |
| 3.4.1 SUCCESSION PLAN FOR THE CHAIRMAN OF THE SUPERVISORY BOARD | 211 |
| 3.4.2 SUMMARY PRESENTATION OF THE MEMBERS OF THE SUPERVISORY BOARD AS OF 31 DECEMBER 2019 | 211 |
| 3.4.3 COMPOSITION OF THE SUPERVISORY BOARD | 214 |
| 3.4.4 DIVERSITY POLICY APPLIED WITHIN THE SUPERVISORY BOARD | 238 |
| 3.4.5 INDEPENDENCE OF THE MEMBERS OF THE SUPERVISORY BOARD | 241 |
| 3.4.6 BUSINESS ETHICS OF THE SUPERVISORY BOARD | 242 |
| 3.4.7 FUNCTIONING OF THE SUPERVISORY BOARD | 244 |
| 3.4.8 ACTIVITY OF THE SUPERVISORY BOARD | 246 |
| 3.4.9 EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES | 248 |
| 3.4.10 SPECIALISED COMMITTEES | 251 |
| 3.5 COMPENSATION AND BENEFITS PAID TO CORPORATE OFFICERS | 256 |
| 3.5.1 COMPENSATION POLICY FOR THE EXECUTIVE CHAIRMEN (EXECUTIVE CORPORATE OFFICERS) AND MEMBERS OF THE SUPERVISORY BOARD (NON-EXECUTIVE CORPORATE OFFICERS) | 256 |
| 3.5.2 OVERVIEW OF COMPENSATION AND BENEFITS OF ALL KINDS FOR CORPORATE OFFICERS | 266 |
| 3.5.3 COMPENSATION OF THE SUPERVISORY BOARD, AUDIT AND RISK COMMITTEE AND CAG-CSR COMMITTEE ALLOCATED IN 2020 FOR 2019 | 270 |
| 3.5.4 ALLOCATION OF FREE SHARES AND STOCK OPTIONS | 270 |
| 3.5.5 TABLES REQUIRED BY THE AFEP-MEDEF CODE FOR THE PRESENTATION OF CERTAIN COMPONENTS OF COMPENSATION | 271 |
| 3.6 OTHER INFORMATION | 278 |
| 3.6.1 REPORT ON REGULATED AGREEMENTS | 278 |
| 3.6.2 AGREEMENTS ENTERED INTO BETWEEN SENIOR EXECUTIVES OR SHAREHOLDERS OF THE COMPANY AND THE CONTROLLED COMPANIES (ARTICLE L. 225-37-4, 2° OF THE FRENCH COMMERCIAL CODE) | 278 |
| 3.6.3 PROCEDURE FOR MONITORING ONGOING AND STANDARD AGREEMENTS AND IMPLEMENTATION | 278 |
| 3.6.4 CAPITAL STRUCTURE AND FACTORS LIABLE TO AFFECT THE OUTCOME OF A PUBLIC OFFERING | 278 |
| 3.6.5 SPECIAL CONDITIONS FOR ATTENDING GENERAL MEETINGS | 279 |
| 3.6.6 SUMMARY TABLE OF THE USE OF FINANCIAL DELEGATIONS OF AUTHORITY | 279 |
| 3.7 ANNEXES | 281 |
| 3.7.1 SUPERVISORY BOARD RULES OF PROCEDURE | 281 |
| 3.7.2 CAG-CSR COMMITTEE RULES OF PROCEDURE | 284 |
| 3.7.3 AUDIT AND RISK COMMITTEE RULES OF PROCEDURE | 286 |
| OTHER INFORMATION FROM THE EXECUTIVE MANAGEMENT’S REPORT | 288 |
| 3.8 INTERESTS OF CORPORATE OFFICERS AND EXECUTIVE COMMITTEE MEMBERS IN THE SHARE CAPITAL | 288 |
| 3.9 STATEMENTS BY CORPORATE OFFICERS | 289 |
| 4. COMMENTS ON THE FINANCIAL YEAR AND OUTLOOK | 291 |
| 4.1 COMMENTS ON THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS | 292 |
| 4.2 COMMENTS ON THE SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS | 293 |
| 4.2.1 BALANCE SHEET | 293 |
| 4.2.2 INVESTMENTS | 293 |
| 4.3 EXCEPTIONAL EVENTS | 294 |
| 4.4 INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS, ON ACCOUNTS PAYABLE DUE DATES, SUBSIDIARIES AND ASSOCIATES | 294 |
| 4.4.1 INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS | 294 |
| 4.4.2 INFORMATION ON ACCOUNTS PAYABLE DUE DATES | 294 |
| 4.4.3 INFORMATION ON SUBSIDIARIES AND ASSOCIATES | 294 |
| 4.4.4 INFORMATION ON BRANCHES | 295 |
| 4.4.5 INFORMATION ON THE AMOUNT OF INTER-COMPANY LOANS | 295 |
| 4.5 PERSPECTIVES | 296 |
| 5. CONSOLIDATED FINANCIAL STATEMENTS | 299 |
| 5.1 CONSOLIDATED STATEMENT OF INCOME | 300 |
| 5.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 300 |
| 5.3 CONSOLIDATED BALANCE SHEET | 301 |
| 5.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 302 |
| 5.5 CONSOLIDATED STATEMENT OF CASH FLOWS | 303 |
| 5.6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 304 |
| 5.7 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS | 346 |
| 6. PARENT COMPANY FINANCIAL STATEMENTS | 353 |
| 6.1 STATEMENT OF PROFIT OR LOSS FOR 2019 | 354 |
| 6.2 BALANCE SHEET AS AT 31 DECEMBER 2019 | 355 |
| 6.3 CHANGES IN EQUITY IN 2019 | 356 |
| 6.4 STATEMENT OF CASH FLOWS FOR 2019 | 356 |
| 6.5 NOTES TO THE FINANCIAL STATEMENTS | 357 |
| 6.6 TABLE OF SUBSIDIARIES AND ASSOCIATES | 368 |
| 6.7 TABLE OF RESULTS OVER THE LAST FIVE FINANCIAL YEARS | 369 |
| 6.8 INFORMATION ON DUE DATES | 370 |
| 6.9 STATUTORY AUDITORS’ REPORT ON THE ANNUAL FINANCIAL STATEMENTS | 371 |
| 7. INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL | 377 |
| 7.1 PRESENTATION OF HERM.S INTERNATIONAL AND EMILE HERMES SARL | 379 |
| 7.1.1 PRESENTATION OF HERMES INTERNATIONAL | 379 |
| 7.1.2 PRESENTATION OF EMILE HERMES SARL – ACTIVE PARTNER | 389 |
| 7.2 INFORMATION ON SHARE CAPITAL AND SHAREHOLDERS | 390 |
| 7.2.1 INFORMATION ON SHARE CAPITAL | 390 |
| 7.2.2 INFORMATION ON SHAREHOLDERS | 391 |
| 7.2.3 TRANSACTIONS PERFORMED BY CORPORATE OFFICERS AND THOSE CLOSE TO THEM ON THE SHARES OF THE COMPANY | 397 |
| 7.2.4 STOCK MARKET ETHICS CODE | 399 |
| 7.2.5 SHAREHOLDERS’ PACTS AND AGREEMENTS | 400 |
| 7.3 DIVIDEND POLICY | 401 |
| 7.4 STOCK MARKET INFORMATION | 402 |
| 7.4.1 SUMMARY OF STOCK MARKET INFORMATION | 402 |
| 7.4.2 HISTORY OF MONTHLY TRANSACTIONS | 402 |
| 7.4.3 HERMES SHARE PRICE HISTORY | 403 |
| 7.5 SHAREHOLDERS’ INFORMATION | 406 |
| 7.5.1 RELATIONS WITH SHAREHOLDERS | 406 |
| 7.5.2 SECURITIES SERVICE | 406 |
| 7.5.3 PUBLICLY AVAILABLE DOCUMENTS | 406 |
| 7.5.5 2020 FINANCIAL CALENDAR | 406 |
| 7.5.4 HOW TO BECOME A HERMES INTERNATIONAL SHAREHOLDER | 406 |
| 7.5.6 CROSSING OF THRESHOLDS AND NOMINATIVE REGISTRATION REQUIREMENTS | 407 |
| 8. COMBINED GENERAL MEETING OF 24 APRIL 2020 | 409 |
| 8.1 AGENDA | 410 |
| 8.1.1 ORDINARY BUSINESS | 410 |
| 8.1.2 EXTRAORDINARY BUSINESS | 411 |
| 8.2 PURPOSE AND DRAFT RESOLUTIONS | 412 |
| 8.2.1 ORDINARY BUSINESS | 412 |
| 8.2.2 EXTRAORDINARY BUSINESS | 431 |
| 8.3 SUPERVISORY BOARD REPORT TO THE COMBINED GENERAL MEETING OF 24 APRIL 2020 | 439 |
| 8.4 STATUTORY AUDITORS’ REPORTS | 441 |
| 8.4.1 STATUTORY AUDITORS’ REPORT ON THE ANNUAL FINANCIAL STATEMENTS | 441 |
| 8.4.2 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS | 441 |
| 8.4.3 STATUTORY AUDITORS’ SPECIAL REPORT ON RELATED-PARTY AGREEMENTS | 442 |
| 8.4.4 REPORT FROM ONE OF THE STATUTORY AUDITORS, DESIGNATED AS THE INDEPENDENT THIRD PARTY ORGANISATION, ON THE CONSOLIDATED SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION CONTAINED IN THE MANAGEMENT REPORT | 444 |
| 8.4.5 STATUTORY AUDITORS’ REPORT ON THE CAPITAL REDUCTION BY THE CANCELLATION OF SHARES PURCHASED (SEVENTEENTH RESOLUTION) | 444 |
| 8.4.6 STATUTORY AUDITORS’ REPORT ON THE AUTHORISATION TO GRANT STOCK OPTIONS (EIGHTEENTH RESOLUTION) | 445 |
| 8.4.7 STATUTORY AUDITORS’ REPORT ON THE AUTHORIZATION TO ALLOCATE FREE EXISTING SHARES (NINETEENTH RESOLUTION) | 446 |
| 9. ADDITIONAL INFORMATION | 449 |
| 9.1 PERSONS RESPONSIBLE FOR THE REGISTRATION DOCUMENT | 450 |
| 9.1.1 NAMES AND POSITIONS OF PERSONS RESPONSIBLE FOR INFORMATION CONTAINED IN THE REGISTRATION DOCUMENT | 450 |
| 9.1.2 CERTIFICATION OF PERSONS RESPONSIBLE FOR THE REGISTRATION DOCUMENT | 450 |
| 9.2 STATUTORY AUDITORS | 451 |
| 9.3 REGULATORY INFORMATION CONSULTATION | 451 |
| 9.4 INFORMATION INCORPORATED BY REFERENCE | 451 |
| 9.5 CROSS-REFERENCE TABLES | 452 |
| 9.5.1 CROSS-REFERENCE TABLE FOR THE ANNUAL FINANCIAL REPORT | 452 |
| 9.5.2 CROSS-REFERENCE TABLE FOR THE MANAGEMENT REPORT | 453 |
| 9.5.3 CROSS-REFERENCE TABLE FOR THE SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE | 454 |
| 9.5.4 CROSS-REFERENCE TABLE FOR THE UNIVERSAL REGISTRATION DOCUMENT | 455 |
| 9.5.5 CROSS-REFERENCE TABLE FOR THE DECLARATION OF NON-FINANCIAL PERFORMANCE | 457 |
| 9.6 GLOSSARY | 459 |