HERMÈS - 2020 Universal registration document

CORPORATE GOVERNANCE SPECIALISED COMMITTEES

MAIN DUTIES AND WORK CARRIED OUT IN 2020

In accordance with Article L. 823-19 of the French Commercial Code and without prejudice to the powers of the Supervisory Board, which it does not replace, the main duties of the Audit and Risk Committee performed in 2020 are as follows:

3.5.3.4

The Audit and Risk Committee studies and prepares certain proceedings of the Supervisory Board and submits to the Board its opinions, proposals and recommendations.

Purpose of duties

Main duties and work carried out in 2020

be informed of the impact of Covid-19 on the activities of the audit and risk management s department.

Impact of the health crisis

conduct a periodic self-assessment of its operation. s

General

be informed of the budget for the financial year; s review and comment on the parent company and consolidated financial statements before they are s approved by Executive Management and presented to the Supervisory Board; ensure that the accounting policies applied are relevant and consistent; s verify that internal data collection and control procedures guarantee the quality of the information s provided; review the work programme and results of internal and external audit assignments: s monitor the process of preparing financial information and, where appropriate, make s recommendations to ensure its integrity, monitor the effectiveness of internal control and risk management systems and internal audits s regarding the procedures for preparing and processing accounting, financial and non-financial information without jeopardising its independence. issue a recommendation to the Supervisory Board on the Statutory Auditors proposed for s appointment or renewal by the General Meeting [n/a in 2020] ; monitor the performance by the Statutory Auditors of their assignment (audit approach, audit s conclusions, presentation of the Board’s fees); ensure that the Statutory Auditors comply with the independence conditions; s hold in closed session with the Statutory Auditors; s approve, on a case-by-case basis, the provision by the Statutory Auditors of services other than the s certification of the financial statements; report on the results of the engagement regarding the certification of the financial statements, on s the way the engagement contributed to the integrity of the financial reporting and the role it has played in this process. be informed of the security system and received feedback on incidents in the financial year ended; s be informed of the results of risk management, audit and internal control activities; s be informed of the audit plan; s note the consensus of financial analysts on the full-year and interim results; s regularly review exposure to risks such as financial, legal, operational, social and environmental s risks and the actions taken as a result; review press releases on quarterly revenue, full-year and interim results; s be informed of the risk factors described in the Universal Registration Document and the s methodology used to identify and draw up these risk factors, in order to meet the requirements of EU Regulation No. 2017/1129 and Delegated Regulation No. 2019/980 (Annex I section 3); be informed, in a joint meeting with the CAG-CSR Committee, of exposure to CSR risks [from 2021] ; s be informed of IT risks and the corresponding action plans; s be informed of the corruption risk mapping and the corresponding action plans; s be informed of the report of the external treasury audit; s ensure the implementation of a system for the prevention and detection of corruption and s influence-peddling and be informed of changes to the corruption prevention programme.

Prepare accounting and financial information

3

Audit of accounting and financial information and the Statutory Auditors

Control of risk exposure and prevention of corruption

As part of its missions, the Audit and Risk Committee heard from the Treasury Director, the Director of Financial Communications and Investor Executive Vice-President Finance, both with regard to the accounting Relations, the Director of Hermès Commercial and his team, the Director data and treasury data, the Consolidation Director, the Director of Audit of Hermès Bijouterie and her team, the Director of Legal Compliance, the and Risk, the Group Security Director, the Group IT Director, the Group Data Protection Officer and the Statutory Auditors.

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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