HERMÈS - 2020 Universal registration document

INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL INFORMATION ON SHARE CAPITAL AND SHAREHOLDERS

EMPLOYEE OWNERSHIP OF THE SHARE CAPITAL

PLEDGING OF SHARES

7.2.2.8

7.2.2.9

No shares are owned by employees of the Company or any affiliated entities via the company savings plan or dedicated employee investment.

Duly registered shares are not encumbered by any material pledges.

SHARE BUYBACK PROGRAMMES

7.2.2.10

Maison Hermès, faithful to its family tradition, involves all of its employees throughout the world with in the Group’s growth, through employee shareholding mechanisms, which form part of the Group’s long-term compensation policy and which help to motivate and retain its employees for the future. Thus, the Hermès Group has offered five times its employees, in France and internationally, free share plans; these were granted in 2007, 2010, 2012, 2016 and 2019 (see chapter 3 "Corporate Governance", § 3.7.3). The latest plans have been implemented by the Executive Management in accordance with the authorisation granted by the General Meeting of 4 June 2019 in its fifteenth Resolution. Thus, on 1 July 2019, the Executive Management decided to implement two new free share allocation plans for all employees of the Group subject to eligibility, notably in terms of seniority, subject to the mechanisms applicable to existing free share plans, in particular concerning the reference and retention periods. These allocations are subject to presence conditions and, where applicable, performance conditions, with vesting periods of four to five years. On 31 December 2020, employee shareholding, based on plans already allocated and/or vested, involved a significant part of the Group’s workforce, accounting for the holding of 1,145,490 Hermès International shares, representing 1.09% of the Group’s share capital. Taking into account rights under the last 2019 plans, employee shareholding involved more than 13,000 Group employees. No shares in the Company are held by the employees of the Company and affiliated companies under the savings plan and the company mutual fund of the Company.

7.2.2.10.1 Use in 2020 of authorisations to buy back shares granted by the General Meeting The Combined General Meeting of 4 June 2019 and that of 24 April 2020 approved share buyback programmes authorizing the Executive Management, on the basis of Articles L. 225-209 et seq. of the French Commercial Code (now Articles L. 22-10-62 et seq. of the French Commercial Code, pursuant to Order No. 2020-1142 of 16 September 2020 creating, within the French Commercial Code, a division specific to companies whose securities are admitted to trading on a regulated market or on a multilateral trading facility), to purchase, on the market or off-market, a number of shares representing up to 10% of the Company’s share capital on the date of the buyback, in order to allocate them to objectives authorised by European regulations or one or more market practices currently accepted by the Financial Markets Authority (AMF) or subsequently, and more generally, to allocate them to the completion of any transaction in accordance with the regulations in force. The Combined General Meetings of 4 June 2019 and 24 April 2020 authorised the Executive Management to reduce the share capital by cancellation of repurchased shares, within the limit of 10% of the share capital per period of 24 months. The characteristics of the delegations granted to the Executive Management are detailed in chapter 3 "Corporate Governance", § 3.8.4. During the financial year ended 31 December 2020, the Executive Management carried out the transactions shown in the table below, in the context of share buyback programmes authorising the Executive Management to buy and sell its own shares under Article L. 22-10-62 of the French Commercial Code ( Code de commerce ).

From 01/01/2020 to 24/04/2020

From 25/04/2020 to 31/12/2020

Total

EXCLUDING THE LIQUIDITY CONTRACT Number of shares booked in the name of the Company as at 31 December 2019

1,353,970

1,353,970

Number of shares purchased Reason for acquisitions Average price of purchases Number of shares sold

21,839

146,941

168,780

7

Employee shareholding Employee shareholding

€654.55

€741.32 560,684 €298.16

€730.10 560,772 1 €298.13 2

88

Average price of sales

€118.81

Amount of net expenses excluding taxes Number of shares cancelled Average price of cancelled shares Number of shares booked in the name of the Company at 31 December 2020

1,375,721

(413,743)

961,978

Allocation Employee shareholding s

1,297,348

(413,743)

883,605 78,373

External growth s

78,373

0

Net value assessed at cost

€517,943,319 €1,210,084,192

€(58,240,934) €(363,928,343)

€459,702,384 €846,155,849

Net value assessed at the closing rate

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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