HERMÈS - 2018 Registration document

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Consolidated financial statements Notes to the consolidated financial statements

RELATED-PARTY TRANSACTIONS

NOTE 29

29.1 Transactions with equity-accounted associates

Hermès SARL for certain services provided and expenses incur- red. Hermès International charged back €0.4 million in this respect in 2018; s s the company Studio des Fleurs: Studio des Fleurs offers photogra- phy and retouching services for packshots of e-commerce products. The amounts paid in 2018 came to €2.5 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; s s the company MOCE: MOCE (“EatMe” brand) provides fast food ser- vices on the Hermès International site located at 12 rue d’Anjou. The amounts paid in 2018 came to €0.1 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; s s ARDIAN Holding: as part of the diversification of its investments, Hermès International has an 11.54% equity interest in the company ARDIAN Holding, in which a member of the Supervisory Board has responsibilities. This commitment had been assumed in 2013, 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 pro- posed resolutions on pages 366 to 392.

Transactions with equity-accounted associates were not material rela- tive to the Group’s overall business activities.

29.2 Other related-party transactions

Relationships with other related parties, within the meaning of IAS 24 Related Party Disclosures can be summarised as follows: s s RDAI firm: RDAI architects were appointed to carry out design work on the internal layout of all Hermès Group stores. The fees paid by the Group amount to €10.7 million excluding tax in 2018. RDAI, as well as the property companies mentioned below, are considered to be related parties given that certain members of Group Management or members of the Executive Management of Émile Hermès SARL have personal interests therein and exercise significant influence; s s Émile Hermès SARL, Active Partner, is a société à responsabilité limi- tée à capital variable (private limited company with variable capital) whose partners are the direct descendants of Mr Émile 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 the distributable profits to the Active Partner. In addition, Hermès International charges Émile

29.3 Lease agreements with related parties

Security deposit

Address

Lessor

Lessee

Lease type

Term

Start

End

Hermès International

Commercial lease Commercial lease Commercial lease Commercial lease Commercial lease Commercial lease

28/30/32 rue du Faubourg St Honoré

SAS SIFAH

9 years 01/01/17 31/12/25 3 months

28/30/32 rue du Faubourg St Honoré

SAS SIFAH Hermès Sellier

9 years 01/01/17 31/12/25 3 months

Hermès International Hermès International

26 rue du Faubourg St Honoré

SAS SIFAH

9 years 01/01/14 31/12/22 3 months

26 rue du Faubourg St Honoré

SAS SIFAH

9 years 01/01/17 31/12/25 3 months

23 rue Boissyd’Anglas

SAS SIFAH Hermès Sellier

9 years 01/01/18 31/12/26 3 months

S.C. Auguste

74 rue du Faubourg St Antoine

Hollande Hermès Sellier

9 years 01/07/17 30/06/26 3 months

Comptoir Nouveau de la Parfumerie

4 rue du Pont Vert 27400 Le Vaudreuil

Commercial

Briand Villiers I

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

Total rental expenses for the abovementioned leases amounted to €9.5 million in 2018 (versus €9 million in 2017). 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.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL