HERMÈS - 2018 Registration document

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Corporate Governance

Supervisory Board’s report on corporate governance

With respect to corporate governance

With respect to corporate governance

s s recommend revisions to corporate governance rules as needed; s s periodically verify that independent Supervisory Board members meet the independence and objectivity criteria set out in the Supervisory Board’s rules of procedure; s s review the composition of the specialised committees; s s oversee the annual evaluation of Supervisory Board practices; s s ensure that the management bodies apply the Supervisory Board’s rules of procedure and the recommendations of the current AFEP‑MEDEF Corporate Governance Code in their operations.

s s examine the individual situation of Supervisory Board members and Executive Chairmen (independence, conflicts of interest, plurality of offices, number of shares) and Committee members (specific skills with regard to finance or accounting); s s update and circulate Supervisory Board documents (master file, rules of procedure, 2018 calendar of blackout periods); s s review the Corporate Governance chapter of the 2017 Registration Document; s s governance in the United States; s s update of the rules of procedure of the Supervisory Board; s s conduct an annual review of the Executive Management succession plan (in the presence of CAG-CSR Committee members only); s s succession plan for the Chairman of the Supervisory Board; s s proposal on strengthening the role of the Audit and Risk Committee and the CAG-CSR Committee to assist the Supervisory Board in its new duties; s s proposal on amendments to the rules of procedure of the Audit and Risk Committee and the CAG-CSR Committee to add the new duties assigned; s s information on the Grand Prix de la Transparence “Best improvement” awarded to Hermès International; s s 2018 transparency criteria: review of Hermès International’s practices and follow up actions; s s conduct an informal annual evaluation of the work of the Board (areas of improvement identified at the end of 2017, state of play at the end of 2018, changes in governing texts to be monitored); s s update the rules of procedure of the Board to include the new conditions for the distribution of directors’ fees decided in June 2017; s s self-assessment of the work of the CAG-CSR Committee (areas for improvement). The CAG-CSR Committee reviewed the latest reports on governance: s s Palmarès 2017 de la Féminisation des Grandes Entreprises – SBF 120; s s 2017 AMF report on corporate governance and Senior Executive compensation of listed companies (November 2017); s s AMF – AMF recommendation “Corporate governance and Senior Executive compensation in companies referring to the AFEP-MEDEF Code – Consolidated presentation of the recommendations contained in the AMF – DOC -2012-02 annual reports “ (November 2017); s s CLUB DES JURISTES – Report of the commission on communication between directors and shareholders (December 2017); s s MEDEF – Methodological guide CSR Reporting Non-financial performance reporting (September 2017) ; s s MEDEF – Integrated reporting: feedback (November 2017); s s AFEP – Table of voting policies AFG / PROXINVEST / ISS / GLASS LEWIS (February 2018); s s IFA – Role of the Chairman of the Board (January 2018); s s NOTAT SENARD Report – «L’entreprise, objet d’intérêt collectif» (9 March 2018);

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL