HERMÈS - 2019 Universal Registration Document

OVERVIEW OF THE GROUP RISK FACTORS

LEGAL AND REGULATORY RISKS

1.11.3

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COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS IN ALL AREAS ●

1.11.3.1

DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The Group keeps abreast of developments in regulations and case law in all relevant areas to ensure that it complies with French and foreign laws and regulations. This monitoring is carried out in-house and by external firms: in view of the increasing complexity of each legal area, the • in-house legal department is split into speciality areas, with departments or divisions specialising in a specific field of law (Corporate and Stock Market law, Real Estate law, Merger and Acquisitions law, Anti-Counterfeiting), divisions with general-purpose teams in charge of certain métiers ( Métiers and Selective Brands, Métiers Hermès Sellier and Métiers Holding and Support) and regional divisions, with legal teams in China, Japan, Singapore, South Korea and the United States. The compliance department and the department in charge of Personal Data Protection law also report to it. Employment and tax matters are respectively handled by the Group’s human resources and finance departments, which work in conjunction with the legal department; externally, in each region where the Group operates, Hermès is • advised by local independent law firms, renowned and specialised in each of the numerous areas covered. The Group continues to be involved in ongoing litigation, but there are no pending settlements that are expected to have an impact on its business or on its financial results. The Company is not aware of any other pending or potential governmental, legal or arbitration proceedings that may have, or that over the last 12 months have had, a significant impact on its financial condition or profitability and/or Group.

The Hermès Group is committed to complying with the laws and regulations to which it is subject in France and internationally. These laws and regulations are increasingly numerous and complex. Due to its geographical set up, Hermès Group is subject to the laws and regulations in the countries in which it operates. POTENTIAL IMPACTS ON THE GROUP s Regulatory non-compliance in particular could have a negative impact on the Group’s operations, tarnish its reputation and give rise to financial penalties.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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