HERMES_REGISTRATION_DOCUMENT_2017

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CORPORATE GOVERNANCE

SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE

Dubbed “Herboard” at Hermès, the platform is accessible from a web browser or via a tablet application and can be used to: s organise meetings (plan meetings, send invitations, track attendance); s provide highly secure and paperless Board documents relating to Board and Committee meetings and to the Supervisory Board’s mas- ter file in real time ( via a username, password and confirmation code sent via SMS); s manage document permissions and track document use; circulate minutes and reports. Following the implementation of Herboard, an iPad ® is given to Board members who request one. Training for Supervisory Board members – Integration programme Supervisory Board members can make use of the Company’s group membership of IFA, and thereby take advantage of all of its services. Julie Guerrand became a certified company Boardmember (receiving the ASC France Certificate issued by the IFA) in 2013 and Matthieu Dumas in 2015. Other Board members will likely be taking part in this company governance certification programme carried out by IFA in partnership with Sciences-Po. In 2014 the CAG Committee set up an integration and training pro- gramme for new Board members which entails: s receiving a newmember integration kit of legal and governance docu- ments containing: • the Supervisory Board’s master file (see page 145 et 146), • the “20 years in the stock market” booklet (2013), • the Supervisory Board’s dashboard for the current year, • the schedule of Supervisory Board meetings for the next three years, • the IFA Director handbook (2014); s joining the three-day in-house “Mosaic” training session with employees; s being briefed on the Company’s ownership structure and Active Partner (Émile Hermès SARL); s “Catching up” on site visits (see page148) since2011 (if necessary); s

s a certificate and insurance summary of Corporate Officers’ civil liability;

s the three most recent registration documents; s the convening notice for the last General Meeting;

s a summary of the results of the last formal three-year evaluation of the Supervisory Board;

s presentations made during site visits since 2011;

s the Hermès Group Code of Business Conduct (Hermès Group guidelines);

s ethics charter of the Hermès Group;

s presentations of Hermès International and Émile Hermès SARL; s the annotated Articles of Association. This master file is updated on a regular basis. Supervisory Board meetings – “Herboard” collaborative platform The procedures for calling meetings and the rules governing quorums and majorities are described in the Articles of Association (Article 19) and in the Supervisory Board’s rules of procedure. The Supervisory Board meets at least twice per year in accordance with the Articles of Association. The Supervisory Board met seven times in 2017. The Statutory Auditors and the Works Council representatives are syste- matically invited to attend all Supervisory Board meetings. Furthermore, as in previous years, the Chairman of the Supervisory Board was invited to attend all meetings of the Executive Management Board of Émile Hermès SARL. To ensure that Supervisory Board meetings are held in due and proper form, a file containing background documents related to issues on the agenda is sent to each Boardmember before every meeting (since 2011 at least 48 hours beforehand whenever possible). Persons who are not Board members, in particular members of the Executive Committee and of theManagement Committee, may be invited to attendBoardmeetings at the Chairman’s discretion to provide any information that members of the Board might require to reach a full understanding of matters on the agenda and that are technical in nature or require special expertise. Minutes are drawn up at the end of each meeting and sent to all Board members, who are invited to comment. Any comments are discussed at the next Supervisory Board meeting, which approves the final text of the minutes of the previous meeting. Since 2016 the Supervisory Board has made use of a secure cloud- based collaborative Board management platform hosted in France by Oodrive and customised for Hermès.

s taking part in IFA governance training (if necessary);

s being briefed on new Hermès collections.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL