HERMÈS - 2019 Universal Registration Document

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OVERVIEW OF THE GROUP RISK FACTORS

MANAGEMENT OF TALENTS AND SAVOIR-FAIRE ●

1.11.1.5

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The human resources department conducts a systematic training policy for new hires, with a dedicated training programme. The house is continuing to perfect craftsmen’s skills and expertise through a range of training and professional qualification programmes. These programmes are delivered within the dedicated in-house Hermès schools (including the Leather Goods, Tanners and Textiles schools), and as part of numerous collaborations with external training organisations. Moreover, the Group Human Resources Department is in charge of identifying and developing Talents in order to lay the groundwork for the next generation of senior managers. The management of Talents, which is at the heart of the corporate project, is based on personalised career paths at every level, according to individual needs. Special mobility committees representing all métiers of the House meet on a regular basis. Training, along with internal mobility, is one of the major levers to support employees throughout their careers in the House. Internal mobility is a way of developing employees’ skills by offering them the possibility to learn something new in another job, and a way of encouraging their loyalty. Special attention is given to the health and safety of people and well-being at work as well as employees’ work-life balance. The Group’s Health and Well-being at work initiative launched in 2018 continued in 2019 with the creation of the Observatory on well-being and dedicated working groups to implement corrective actions in response to the improvements identified and expected by employees. Faithful to its family tradition and wanting to involve all employees in the Group’s long-term growth, Hermès has implemented different measures for sharing economic benefits: incentives, profit-sharing, employee shareholding plans, etc. All initiatives undertaken by the Group relating to the management of talents and the preservation of savoir-faire are presented in chapter 2 of this document.

The savoir-faire of our craftsmen, and more widely our employees’ professional development, form the foundation of Hermès. This foundation lies on preserving, enriching and passing on these often exclusive skills in a period of growth for our métiers and our workforce. POTENTIAL IMPACTS ON THE GROUP s A loss of savoir-faire or the disappearance of exclusive craftsmanship métiers would impact the Group’s reputation and could negatively affect its financial results.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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