HERMÈS - 2019 Universal Registration Document

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ADDITIONAL INFORMATION GLOSSARY

Parent company financial statements

Registered Share

The parent company financial statements are the annual financial statements of Hermès International taken individually.

When shares are registered shares, the custodian is the company itself or an agent appointed by the issuing company to keep its registered share accounts. For Hermès International, this agent is BNP Paribas Securities Services (BP2S). Holders of registered shares are known by name by the issuing company. They may either manage their shares themselves, in which case they are described as “pure” registered shareholders, or appoint an agent of their choosing to manage their account held with the issuing company, in which case they are described as “administered” registered shareholders.

Preemptive rights

Tradable right, detached from each existing share, enabling existing shareholders to purchase new shares or securities giving access to the share capital in an offering before the general public has the opportunity to do so, or to obtain, by selling their rights, an amount equivalent to the notional reduction in the value of their shares that would arise from the new issue. In return for the cancellation of Preemptive rights, the Executive Management may introduce a priority right, which may be Pro-rated. Priority right, like Priority subscription right, enables existing shareholders to subscribe to the proposed issue in proportion to the number of shares they currently hold. However, unlike Preemptive right, priority right is (i) exercisable within a priority period (in practice, at least 5 trading sessions) shorter than the period allowed for Preemptive right and (ii) not tradable. In some cases, the Executive Management may introduce Pro-rated subscription rights in favor of existing shareholders. This means that if irreducible subscriptions (i.e. subscriptions by shareholders exercising Preemptive Rights) fail to entirely absorb the capital increase, the unsubscribed shares would be allocated to those shareholders who made an application for additional shares on a Pro-rated basis (over and above the entitlement given by their Preemptive Rights) in proportion to their subscription rights, though the number of shares allocated to each shareholder may not exceed the number of shares applied for by that shareholder. Priority right/Priority period Pro-rated (subscription rights)

Remote voting

A shareholder may vote by post using a form provided for this purpose or online (please refer to the corresponding notice of meeting).

Restated net cash position

Restated net cash includes cash investments that do not meet IFRS criteria for cash equivalents as a result of their original maturity of more than three months.

Revenue

The revenue is the total amount of sales of goods and services made by the company, over a given period, in the normal course of business.

Share

A marketable security issued by a listed (publicly-traded) or unlisted incorporated company, representing the unit value of the company’s capital and granting the holder shareholder status. This share carries rights to disclosure of information and the right to vote at general meetings, as well as financial rights (right to dividends, subscription right). A share may be a bearer share or a registered share.

Share buyback

Quorum

After consulting its shareholders at a general meeting and obtaining their consent, a company may purchase its own shares, on the stock market, within the limit of 10% of its capital. Shares thus purchased may then be held, sold, transferred or cancelled (in accordance with the objectives defined in the share buyback programme).

Minimum percentage of shares present or represented and carrying voting rights, required for a general meeting to validly proceed.

Recurring operating income

Share capital

Recurring operating income is one of the main performance indicators monitored by the Group’s management. It excludes non-recurring items having a significant impact that could affect understanding of the Group’s economic performance.

Portion of equity capital contributed by shareholders when the company is established or upon a subsequent capital increase.

Shareholders’ equity

Capital belonging to the shareholders comprising equity subscriptions, profits left in reserves and income for the period.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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