HERMÈS - 2020 Universal registration document

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

RELATED-PARTY TRANSACTIONS NOTE 31 Transactions with equity-accounted 31.1 associates Transactions with equity-accounted associates were not material in the financial year. Transactions with other related parties 31.2 Relationships with other related parties, within the meaning of IAS 24 Related Party Disclosures can be summarised as follows: RDAI studio: the RDAI architecture studio was appointed to carry out s design work on the internal layout of all Hermès Group stores. The fees paid by the Group amounted to €12.5 million excluding tax in 2020. RDAI, as well as the real estate companies mentioned below, are considered to be related parties given that certain members of Group Management or members of the Executive Management Board of Émile Hermès SARL or members of the Supervisory Board have personal interests therein and exercise significant influence upon them; Émile Hermès SARL, Active Partner: a société à responsabilité limitée s à capital variable (limited company with variable capital) whose partners are the direct descendants of Mr Émile-Maurice Hermès and his wife. The Executive Chairman of the Company is Mr Henri-Louis Bauer and the Company has an Executive Management Board. Each year, Hermès International pays 0.67% of its distributable profits to the Active Partner. In addition, Hermès International charges Émile

Hermès SARL for certain services provided and expenses incurred. The corresponding billings amounted to €0.6 million in 2020 (including €0.2 million in respect of services); the Studio des Fleurs company: Studio des Fleurs offers photography s and retouching services for packshots of e-commerce products. The amounts paid in 2020 came to €3.0 million. Studio des Fleurs is considered a related party to the extent that a member of the Executive Management Board of Émile Hermès SARL has personal interests therein and exercises significant influence upon it; the MOCE company: MOCE (“EatMe” brand) provides fast food s services on the Hermès International site located at 12, rue d’Anjou in Paris. The amounts paid in 2020 came to €0.03 million. MOCE is considered a related-party to the extent that a member of the Supervisory Board has personal interests therein and exercises significant influence upon it; Ardian Holding: as part of the diversification of its investments, s Hermès International has an 11.62% equity interest in the company Ardian Holding, in which a member of the Supervisory Board has responsibilities. This commitment had been assumed prior to this person’s appointment. Certain of the above transactions constitute related-party agreements according to the definition contained in the French Commercial Code ( Code de commerce ). For further details, see the description of the proposed resolutions in chapter 8 of this document.

Lease agreements with related parties 31.3

Contractual term

Security deposit

Lessor

Lessee

Lease type

Start

End

ADDRESS

Share of the building 28/30/32, rue du Faubourg St-Honoré Share of the building 28/30/32, rue du Faubourg St-Honoré

Hermès International Commercial lease 9 years 01/01/17 31/12/25 3 months

SAS SIFAH

SAS SIFAH Hermès Sellier Commercial lease 9 years 01/01/17 31/12/25 3 months Hermès International Commercial lease 9 years 01/01/14 31/12/22 3 months Hermès International Commercial lease 9 years 01/01/17 31/12/25 3 months SAS SIFAH Hermès Sellier Commercial lease 9 years 01/01/18 31/12/26 3 months S.C. Auguste Hollande Hermès Sellier Commercial lease 9 years 07/01/17 30/06/26 3 months

26, rue du Faubourg St-Honoré SAS SIFAH

26, rue du Faubourg St-Honoré SAS SIFAH

23, rue Boissy-d’Anglas

74, rue du Faubourg-St-Antoine

4, rue du Pont Vert 27400 Le Vaudreuil

Briand Villiers I

Comptoir Nouveau de la Parfumerie Commercial lease

9 years firm 07/01/14 30/06/23 3 months

Amortisation of these right-of-use assets amounted to €9.8 million in 2020 (compared with €9.4 million in 2019). All of the transactions described were carried out on an arm’s length basis, i.e. on terms that would apply if the transactions had occurred between unrelated parties.

Total net value of right-of-use assets for the above-mentioned leases, calculated in accordance with IFRS 16, stood at €53.4 million in 2020 ( versus €52.7 million in 2019), given the assumptions made relating to lease terms and discount rates.

394 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL