HERMES_REGISTRATION_DOCUMENT_2017

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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 page 326.

s ARDIAN Holding: as part of the diversification of its investments, Hermès International has a 11.60% 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.

28.3 Lease agreements with related parties

Security deposit

Address

Lessor

Lessee

Lease type

Duration

Start

End

Hermès International

Commercial lease Commercial lease Commercial lease Commercial lease Commercial lease

3 months 3 months 3 months 3 months 3 months

28/30/32 rue du Faubourg St Honoré

SAS SIFAH

9 years 01/01/2017 31/12/2025

28/30/32 rue du Faubourg St Honoré

SAS SIFAH Hermès Sellier

9 years 01/01/2017 31/12/2025

Hermès International Hermès International

26 rue du Faubourg St Honoré

SAS SIFAH

9 years 01/01/2014 31/12/2022

26 rue du Faubourg St Honoré

SAS SIFAH

9 years 01/01/2017 31/12/2025

23 rue Boissy d’Anglas

SAS SIFAH Hermès Sellier

9 years 01/01/2009 31/12/2017

S.C.I. 74 rue du Faubourg Saint Antoine

3 months

Hermès International Comptoir Nouveau de la Parfumerie

Commercial lease

74 rue du Faubourg St Antoine

9 years 01/07/2008 30/06/2017 1

4 rue du Pont Vert 27400 Le Vaudreuil

Commercial

3 months

Briand Villiers I

lease 9 years firm 01/07/2014 30/06/2023

(1) Renewal in progress.

Total rental expenses for the abovementioned leases amounted to €9 million in 2017 (versus €9 million in 2016). 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.

SENIOR EXECUTIVE COMPENSATION

NOTE 29

A breakdown of total compensation paid to members of the Executive Committee and the Supervisory Board, in respect of their functions within the Group, is as follows:

2017

2016

In millions of euros

Short-term benefits

13.0

11.2

Post-employment benefits Other long-term benefits Share-based payments

3.3 0.2 2.2

3.1 0.1 1.8

TOTAL

18.7

16.3

Short-termbenefitsincludecompensationandbonusespaidtoExecutive Committee members during the year, as well as directors’ fees paid to

members of the Supervisory Board. Share-based payments correspond to the amounts expensed in the year.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL