HERMÈS - 2018 Registration document

1

Overview of the group



ACTIVITY BY GEOGRAPHIC AREA

1.5

26

Europe

1.5.1

26

Americas

27

1.5.2

Asia-Pacific

27

1.5.3

Hermès points of sale worldwide

28

1.5.4

Digital strategy

31

1.5.5

SIMPLIFIED GROUP ORGANISATIONAL CHART

1.6

32

Summary description of the Group as at 31 December 2018 32

1.6.1

Production facilities

33

1.6.2

PROPERTY

1.7

35

FONDATION D’ENTREPRISE

1.8

35

RISK FACTORS

1.9

36 37 37 37 37 38 38 38

Risks related to strategy and operations 1.9.1.1 Limiting industrial and environment risks 1.9.1.2 Controlling and securing supplies 1.9.1.3 Balancing and safeguarding our distribution 1.9.1.4 Minimising risks to property assets

1.9.1

1.9.1.5 IT risk monitoring and prevention

1.9.1.6 Protecting the health and safety of consumers 1.9.1.7 Recruiting and training employees and craftsmen in the standards of excellence required by the Group 39 1.9.2.1 Compliance with applicable laws and regulations in all areas 39 1.9.2.2 Protecting and defending intellectual property rights and combating counterfeiting 39 38 Legal and regulatory risks Risks bearing on social, societal and environmental responsibility 1.9.3.1 Preventing the risk of serious violations of human rights, 1.9.3.2 Preventing risks associated with our natural materials, supply chain, regulatory compliance on environmental matters and carbon emissions 39 fundamental freedoms, and the health and safety of people 40 40

1.9.2

1.9.3

Financial risks

1.9.4

40 40 40 41

1.9.4.1 Conservative cash management 1.9.4.2 Control over exchange rate risk 1.9.4.3 Control of counterparty risk

1.9.4.4 Financial risks related to changes in, complexity and interpretation of tax regulations

41 41

1.9.4.5 Financial risks related to climate change

Insurance policy and risk hedging

1.9.5

42

Internal control and risk management systems established by the Company 1.9.6.1 Objectives of risk management at Hermès International 42 1.9.6.3 Scope of the risk management and internal control systems 43 1.9.6.4 Parties responsible for risk management and internal control 43 1.9.6.5 Risk management system 45 1.9.6.6 Internal control system in response to risks 45 INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES RELATING TO THE PREPARATION AND PROCESSING OF ACCOUNTING AND FINANCIAL INFORMATION 48 42 42 1.9.6.2 Control environment

1.9.6

1.10

Objectives of risk management and internal control systems at Hermès International Internal control system for accounting and financial information

1.10.1

48

1.10.2

48

10

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL