HERMÈS - 2019 Universal Registration Document

ADDITIONAL INFORMATION GLOSSARY

Institutional investors

Liquidity

Financial institutions (pension funds, insurance companies, banks, sovereign funds, etc.) investing money in securities.

For a given security, this corresponds to the ratio between the volume of shares traded on the market and the number of shares comprising the floating stock. A security or a market is said to be “liquid” when buy or sell transactions can be completed without causing any excessive variations compared to the last trading price.

Interim dividend

Advance payment of a portion of the forth coming dividend.

Management report

Investments

Information document required by the French Commercial Code ( Code de commerce ) whereby the Senior Executives and management bodies of a company report to the governing body on their management over the past year, and provide all significant information about the issuer and its future prospects. It is prepared by the same bodies as the ones that approve the annual financial statements. Companies preparing consolidated financial statements must also provide information about the management of the group. This document is included in the Universal registration document.

Companies in which your company does not own, directly or indirectly, more than 50% of the share capital.

Joint Council

Whenever it considers it necessary, the Executive Management of Hermès International or the Chairman of the Supervisory Board of Hermès International calls a Joint Council between the Executive Management Board of Émile Hermès SARL and the Supervisory Board of Hermès International. The Joint Council is an institution designed to enable extensive consultation between the Executive Management Board of the Active Partner, an internal body needing to have knowledge of the main aspects of Hermès International’s Executive Management, and the Supervisory Board, an emanation of the shareholders. The Joint Council hears all questions that are submitted to it by the person calling it or which it decides to examine, without however being able to make decisions in place of the bodies to which such powers are granted by law or the by-laws of the Company and those of Émile Hermès SARL. The Joint Council of the Executive Management Board and the Supervisory Board does not, itself, have any decision-making powers. It acts solely as a consultation body. If they so wish, at a Congress meeting, the Executive Management Board and the Supervisory Board may make any decision or give any opinion within their sphere of competence. LEI is a unique, global identifier that takes the form of a 20-digit alpha-numeric code. It is linked to key reference information. Developed by the International Organisation for Standardisation (ISO), the LEI is compulsory for all transactions in financial instruments listed on the stock exchange: it clearly and uniquely identifies the legal entities involved in such transactions. LEI

Market capitalisation

This is the market value of a company at a given time. It is calculated by multiplying the stock market price by the number of shares comprising the capital.

Net cash position IFRS

The net cash position under IFRS does not include lease liabilities recognised in accordance with IFRS 16 on leases.

Net income/(loss)

A company’s net income is the balance between all of its income and all of its expenses over a given period. It reflects what the company has earned or lost through its activities over that period.

Net profit

Positive income statement (P+L) balance.

Operating cash flows

Operating cash flows are all the financial resources generated by the company in connection with its activity that it could use to cover its financial needs. It measures the company’s ability to finance its requirements in order to exist, using its own resources, such as investments or debt repayments.

Limited Partners

Organic growth

See “ Société en commandite par actions ” (Partnership Limited by Shares).

Organic growth is the change in an indicator compared to the previous year, excluding effects due to a change of scope, foreign exchange or changes to accounting methods.

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2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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