HERMES_REGISTRATION_DOCUMENT_2017

1

OVERVIEW OF THE GROUP

Hermès points of sale worldwide

1.4.4

27

Digital strategy

1.4.5

30

SIMPLIFIED GROUP ORGANISATIONAL CHART

1.5

31

Overview description of the Group as at 31 December 2017 31

1.5.1

Production facilities

1.5.2

32

PROPERTY

1.6

34

FONDATION D’ENTREPRISE

1.7

34

RISK FACTORS

1.8

35 36 36 36 36 37 37 37

Risks linked to the operational strategy

1.8.1

1.8.1.1 Limiting industrial risks and respecting the environment

1.8.1.2 Control over and protection of supplies 1.8.1.3 Balancing and safeguarding our distribution 1.8.1.4 Minimising risks to property assets

1.8.1.5 IT risk monitoring and prevention

1.8.1.6 Protecting the health and safety of consumers

1.8.1.7 Recruiting and training employees and craftsmen in the standards of excellence required by the Group

37

Legal and regulatory risks

38 38

1.8.2

1.8.2.1 Compliance with applicable laws and regulations in all areas 1.8.2.2 Protecting and defending intellectual property rights and combating counterfeiting

38

Financial risks

38 38 39 39 39

1.8.3

1.8.3.1 Conservative cash management 1.8.3.2 Control over exchange rate risk 1.8.3.3 Control over counterparty risk 1.8.3.4 Financial risks related to climate change

Insurance policy

40

1.8.4

Internal control and risk management systems established by the Company

1.8.5

40 40 40

1.8.5.1 Objectives of risk management at Hermès International

1.8.5.2 Control environment

1.8.5.3 Scope of the risk management and internal control system 40 1.8.5.4 Parties responsible for risk management and internal control systems 41 1.8.5.5 Risk management system 42 1.8.5.6 Internal control system in response to risks 43 INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES RELATING TO THE PREPARATION AND PROCESSING OF ACCOUNTING AND FINANCIAL INFORMATION 45 1.9

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

1.9.1

45

1.9.2

45

10

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL