HERMÈS - 2018 Registration document

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Parent company financial statements

Notes to the financial statements

RELATED-PARTY TRANSACTIONS

NOTE 17

Transactions with companies accounted for by the equity method were not material by comparisonwith the overall business activities of Hermès International in 2018. The companies mentioned below are considered related parties inso- far as certain members of management of the Company or certain members of the Supervisory Board or certain members of the Executive Management Board of Émile Hermès SARL have personal interests the- rein and exercise significant influence. Relationshipswith related parties are summarised as follows: s s Émile Hermès SARL, Active Partner: a société à responsabilité limi- tée à capital variable (private limited company with variable capi- tal) whose partners are the direct descendants of Mr Émile-Maurice 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 net income of the financial year to the Active Partner. In addition, Hermès International charges ÉmileHermès SARL for cer- tain expenses incurred. Hermès International charged back €0.4mil- lion in this respect in 2018 (including €0.2 million in respect of ser- vices provided, as in 2017);

s s trademark license agreements: Hermès International receives brand royalties fromHermès Sellier (€122.6million) andComptoir Nouveau de la Parfumerie (€14.6 million); La Montre Hermès (€4.0 million) and Faubourg Italia (€0.2 million); s s SIFAH: the company SIFAH invoiced leases for thepremises locatedat 26/28/30/32, rue du Faubourg Saint-Honoré for €5.0 million; s s the company Studio des Fleurs: Studio des Fleurs offers photography and retouching services for packshots of e-commerce products. The amounts paid in 2018 came to €2.5 million; 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. s s RDAI: the architectural firm RDAI is involved in the design and interior layout work of the head office, as well as the assignment consisting of designwork to apply the architectural concept to all Hermès stores. The amounts paid in 2018 came to €0.1 million.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL