HERMÈS - 2020 Universal registration document

CORPORATE GOVERNANCE EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

Areas identified for improvement in the formal evaluation in 2019 Actions taken in 2020 Supervisory Board

Improve Board members’ access to materials supporting presentations given during meetings. CAG-CSR Committee Devote at least two meetings per year to the in-depth examination of CSR issues.

The Board now systematically provides Board members with access to materials supporting presentations made during meetings (except in the event of confidentiality issues).

CSR issues have been the subject of detailed presentations at two meetings since 2020. In addition, starting in 2021, a joint meeting between the CAG-CSR Committee and the Audit and Risk Committee will be organised every year to present CSR risk exposure. Indeed: since 2018, the CAG-CSR Committee has been tasked with “assisting the Supervisory s Board in monitoring CSR issues so that the Hermès Group can better anticipate related opportunities, challenges and risks”; while since 2019, the Audit and Risk Committee has been tasked with “regularly examining s opportunities and exposure to risks (…) such as environmental risks”. The purpose of this joint meeting is to strengthen coordination and sharing between the two committees on this related subject.

3

Audit and Risk Committee Organise training on foreign exchange and on the new IFRS standards for committee members wishing to benefit; Use the presentation to the Audit and Risk Committee on risk mapping in order to detail action plans on a major risk.

Training on foreign exchange and on IFRS 16 is scheduled for all members of the Supervisory Board in the first half of 2021.

The corresponding action plans are detailed following the risk mapping presented to the Audit and Risk Committee since 2020.

ANNUAL DEBATE ON THE FUNCTIONING OF THE BOARD

3.6.3

2020 EVALUATION OF THE SUPERVISORY

support and training for new Board members; s the Joint Council meetings being appreciated; s the relevance of major in-depth topics (see § 3.4.2.6) and the ability s to meet operational staff; the quality of organisation and monitoring of the Board, the efficiency s of the Herboard platform (see § 3.4.2.4), and the quality of the minutes of meetings from the specialised committees. Areas identified for improvement: Some members would like to see changes on the following points, which the Board has decided to adopt as areas for improvement for the future: better sharing of all pre- and post-meeting presentation materials and s information on the subjects dealt with by the Board in previous years; an in-depth study of certain subjects: human resource issues, the s customer (journey and store experience), business sector, stock market experience; the ability to follow additional training courses. s The presentation of major topics (see § 3.4.2.6) and the on-site visit (see § § 3.4.2.7) are particularly appreciated because they allow the members of the Board to deepen their knowledge of the Group and to meet the Group’s employees and managers.

3.6.3.1

BOARD

End of 2020: the Chairman of the Supervisory Board met individually with each s member of the Supervisory Board in order to discuss the functioning of the Board since the last assessment and to assess the individual contribution of its members; the CAG-CSR Committee reviewed the operation of the Supervisory s Board during a meeting and took stock of the responses provided in 2020 to the expectations expressed during the formal assessment in 2019. Positive points: The results of this self-assessment show that its operation remains very satisfactory with, in particular: coverage of the topics raised, significant improvement in the content s of information shared for several years; the level of information and discussion between members of the s Board and management given the statutory mission of the Board; the much appreciated presence of members of the Executive s Committee working with Mr Axel Dumas; listening to each other during debates, freedom of speech, the fair s tone of discussions, good governance of debates;

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

289