HERMÈS - 2020 Universal registration document

RISKS AND CONTROL RISK FACTORS

LEGAL AND REGULATORY RISKS

4.1.3

COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS IN ALL AREAS ●

4.1.3.1

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 international 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 (m étiers and selective brands, Hermès Sellier métiers and Holding and Support métiers ) and regional divisions, with legal teams in China, Japan, Singapore, South Korea and the United States. The compliance department, including the department in charge of Personal Data Protection law also reports 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 position 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. POTENTIAL IMPACTS ON THE GROUP s Regulatory non-compliance could have a negative impact on the Group’s operations, tarnish its reputation and give rise to financial penalties.

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