HERMES_REGISTRATION_DOCUMENT_2017

COMBINED GENERAL MEETING OF 5 JUNE 2018

PURPOSE AND DRAFT RESOLUTIONS

This latter will consist in the application of income tax subject to partial payment (called partial standard withholding tax) withheld at source at the flat rate of 12.8% of gross revenue to which will be added the social security withholding of 17.2%. This standard taxation at the single rate of 12.8% will be automatically applicable except for an overall option for the progressive scale, allowing to benefit from the 40% tax allowance. Pursuant to Article 119 bis of the FrenchGeneral Tax Code (Code général des impôts) , the dividend distributed to a shareholder who is not a fiscal resident in France is subject to withholding at source at the rate speci- fied in Article 187 of the General Tax Code (Code général des impôts) , possibly reduced in application of the tax agreement concluded between France and the government of the beneficiary’s fiscal residence.

s to other reserves in the amount of €200,000,000;

s to the “Retained earnings” item the balance, in the amount of €1,158,849,431.22;

s all together totalling €2,324,984,988.47.

The Ordinary General Meeting resolves that the remainder of the ordi- nary dividend for the year (which amounts to €1.50 per share after pay- ment on 22 February 2018), that is €2.60 per share, to which will be added the exceptional dividend of €5.00per share, that is a total amount of €7.60 per share, will be detached from the share on 7 June 2018 and payable in cash on 11 June 2018 based on closing positions on 8 June 2018 at the end of the day. As Hermès International is not entitled to receive dividends for shares held in treasury, the corresponding sums will be transferred to “Retained earnings” on the date the dividend becomes payable. For the shareholder beneficiaries who are natural persons fiscally domi- ciled in France, this entire dividend will be subject to a standard tax withholding at the overall rate of 30%.

In accordance with the provisions of Article 47 of law no. 65.566 of 12 July 1965, the General Meeting duly notes that dividends distributed to the shareholders in respect of the three previous financial years were as follows:

Financial year

2016

2015

2014

In euros

Ordinary dividend

3.75

3.35

2.95 5.00

Extraordinary dividend

-

-

Amount eligible for the reduction provided by Article 158-3 of the French General Tax Code ( Code général des impôts )

1.50

1.34

3.18

8

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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