HERMÈS - 2019 Universal Registration Document

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OVERVIEW OF THE GROUP RISK FACTORS

RISKS RELATED TO STRATEGY AND OPERATIONS

1.11.1

IMAGE AND REPUTATION ●

1.11.1.1

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The Group rolled out an ethics charter and a code of business conduct for all employees (available at https://finance.hermes.com) in 2009 and 2012 respectively. These documents, translated into 12 languages, were updated in 2018 and aim to enhance the dissemination of the rules of conduct that underpin the Hermès Group’s integrity and ethics: the ethical charter aims to promote compliance and to ensure the • proper application of applicable laws, regulations and key principles. It is intended as an instrument of progress and dialogue, and encourages employees to discuss with their line managers in cases where the principles are difficult to apply or are open to misunderstanding; the purpose of the code of business conduct is to raise employees’ • awareness about certain risks and to instil behavioural and alert reflexes. An anti-corruption code of conduct was also rolled out for all employees in 2019 and translated into 17 languages. These three documents are provided to all new employees as soon as they join the House and are also available on our Intranet, HermèSphère, under "Our ethics" and on the website https://finance.hermes.com. They are subject to formal acknowledgement of receipt when given to employees. Additional education sessions on anti-corruption laws have also been organised for operational staff. Furthermore, the Group has put in place a permanent monitoring system on the web under the responsibility of the Group Communications Department. Hermès also has a crisis management manual which serves to prevent, manage and limit the impacts of undesirable events on the Company.

The reputation of Hermès Group is underpinned by the quality of its customer products and services, the savoir-faire of its craftsmen and its unique communication. In a globalised world and given the development of social media and their growing influence, negative or inaccurate media coverage or personal behaviour that is contrary to the House’s values of ethics and integrity could affect the Group’s image and reputation. POTENTIAL IMPACTS ON THE GROUP s A negative media campaign could affect the image of the group, with negative impacts on the Group’s sales.

Hermès’ actions and achievements in the fields of ethics and compliance are described in chapter 2 of this report. Note:

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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