HERMÈS - 2020 Universal registration document

8

COMBINED GENERAL MEETING OF 4 MAY 2021 EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

The Ordinary General Meeting resolves that the balance of the ordinary dividend for the period (an interim dividend of €1.50 per share was paid on 4 March 2021), i.e. €3.05 per share, will be detached from the share on 6 May 2021 and payable in cash on 10 May 2021 on the positions closed in the evening of 7 May 2021. As Hermès International is not entitled to receive dividends for shares held in treasury, the corresponding sums will be transferred to “Retained earnings” on the date the dividend becomes payable. For shareholder beneficiaries who are natural persons fiscally domiciled in France, this entire dividend will be subject to a single flat-rate withholding tax at the overall rate of 30%.

The latter will consist in the application of tax on the income paid as an interim payment (so-called flat-rate withholding tax) withheld at source at a single flat rate of 12.8% of gross revenue, to which will be added social security withholdings of 17.2%. This flat-rate taxation at the single rate of 12.8% will be automatically applicable unless the progressive tax scale is opted for overall, allowing the taxpayer to benefit from the 40% tax allowance 1. . For shareholders who are not fiscally domiciled in France, the dividend distributed is subject to withholding tax at source at one of the rates specified in Article 187 of the French General Tax Code ( Code général des impôts ), in accordance with Article 119 bis of said Code, which may be reduced in application of any tax agreement concluded between France and the State in which the beneficiary is fiscally resident.

In accordance with the provisions of Article 43 bis of the French General Tax Code, the General Meeting duly notes that dividends distributed to shareholders in respect of the three previous financial years were as follows:

Financial year

2019

2018 4.55

2017 4.10

In euros

“Ordinary” dividend “Exceptional” dividend

4.55 1

- 5.00 Prior to the General Meeting of 24 April 2020, the Supervisory Board – on the proposal of the Executive Management – decided to reduce the amount of the ordinary (1) dividend from €5.00 to €4.55 per share, in order to take into account the potential impacts of the Covid-19 pandemic. This amount was identical to that paid in 2019 for financial year 2018. -

FIFTH RESOLUTION: APPROVAL OF RELATED-PARTY AGREEMENTS

Explanatory statement Pursuant to the fifth resolution, in the absence of related-party agreements entered into during the 2020 financial year, you are asked to note that

there are no agreements to approve. Agreements authorised in prior years

The agreements authorised and signed during previous financial years and whose performance continued during the last financial year are described in the Statutory Auditors’ special report on the agreements referred to in Articles L. 226-10, L. 225-38 to L. 225-43, L. 22-10-12 and L. 22-10-13 of the French Commercial Code ( Code de commerce ). Since they have already been approved by the General Meeting, they are not resubmitted to you for a vote. This report can be found in the 2020 Universal Registration Document (chapter 8 "Combined General Meeting of 4 May 2021", § 8.4.3).

Fifth resolution: Approval of the related-party agreements

The General Meeting, acting under the quorum and majority L. 22-10-12 and L. 22-10-13 of the French Commercial Code ( Code de requirements applicable to Ordinary General Meetings, having reviewed commerce ), approves said report in all its provisions, as well as the the Statutory Auditors’ special report on the agreements pertaining to the agreements and transactions referred to therein. combined provisions of Articles L. 226-10, L. 225-38 to L. 225-43,

Within the scope of the single flat-rate withholding tax, taxpayers may opt, expressly and irrevocably before the deadline for the declaration and overall for all their income 1. defined in Article 200 A 1 of the French General Tax Code (Code général des impôts), for their income to be taxed using the progressive income tax scale, in accordance with Article 200 A-2 of the French General Tax Code (Code général des impôts).

468 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL