HERMES_REGISTRATION_DOCUMENT_2017

ADDITIONAL INFORMATION

GLOSSARY

Earnings per share This is a calculation done for stock market analysis obtained by dividing the company’s net profit by the number of shares comprising the capital. Economic value added (EVA) Difference between recurring operating income after tax on operating income and the weighted average cost of capital. Executive Chairman The role of the Managing Director consists in running the group and acting in the general interests of the company, within the limits of its corporate object and in compliance with the powers granted by law to the Supervisory Board and general meetings of shareholders. Extraordinary dividend This is a dividend of an exceptionally high amount compared to the divi- dend ordinarily paid andwhich is not therefore recurrent. It may complete or replace the ordinary dividend. Financial Markets Authority (AMF) Financial markets authority regulating French financial market players and products. The authority regulates, authorises, monitors and, when necessary, audits, investigates and imposes sanctions. It also ensures that investors are correctly informed and offers investor assistance, where necessary, via its mediation procedure. The Autorité des marchés financiers (AMF) is an independent public authority responsible for: “EpargneInfoService”isavailabletoansweryourquestionsaboutsavings products, the stock market or the AMF’s role on +33 (0)1 53 45 62 00 (price of a local call) or http://www.amf-france.org/Epargne-Info-Service General Meeting The General Meeting is a decision-making body comprising all the shareholders (limited partners). Except for the appointment anddismissal ofmembers of theSupervisory Board, the appointment and dismissal of statutory auditors, the alloca- tion of profits for the year and the approval of agreements subject to authorisation, no decision may be validly made by the general meetings unless it is approved by the active partners at the latest by the end of the meeting that voted on the decision in question. Hermès family group The Hermès family group consists of the partners of Émile Hermès Sarl, their spouses, children and grandchildren, and their direct and indirect holding companies of Hermès International and Émile Hermès Sarl. The right tobeapartner inÉmileHermèsSarl is reserved for thedescendants of Mr. Émile-Maurice Hermès and his wife, and their spouses, but solely as beneficial holders of shares. s protection of savings invested in financial products; s investor information; s proper financial market operation.

Institutional investors Financial institutions (pension funds, insurance companies, banks, sovereign funds, etc.) investing money in securities. Joint Council Whenever it considers it necessary, the Executive Management of HermèsInternationalortheChairmanoftheSupervisoryBoardofHermès International calls a Joint Council between the ExecutiveManagement of Émile Hermès Sarl and the Supervisory Board of Hermès International. The Joint Council is an institution designed to enable extensive consulta- tion between the Executive Management Board of the Active Partner, an internal body needing to have knowledge of the main aspects of Hermès International’s Executive Management, and the Supervisory Board, an emanation of the shareholders. TheJointCouncilhearsallquestionsthataresubmittedto itbytheperson calling it or which it decides to examine, without however being able to make decisions in place of the bodies to which such powers are granted by law or the by-laws of the company and those of Émile Hermès Sarl. The Joint Council of the Executive Management and the Supervisory Board does not, itself, have any decision-making powers. It acts solely as a consultation body. If they so wish, at a Congressmeeting, the Executive Management and the Supervisory Board may make any decision or give any opinion within their sphere of competence. LEI LEI is a unique, global identifier that takes the form of a 20-digit alpha- numeric code. It is linked to key reference information. Developed by the International Organization for Standardization (ISO), the LEI is com- pulsory for all transactions in financial instruments listed on the stock exchange: it clearly and uniquely identifies the legal entities involved in such transactions. Limited Partners See “Société en commandite par actions” (Partnership Limited by Shares). Liquidity For a given security, this corresponds to the ratio between the volume of shares traded on the market and the number of shares comprising the floating stock. A security or amarket is said to be “liquid” when buy or sell transactions can be completed without causing any excessive variations compared to the last trading price. Management Report Information document required by the French Commercial Code (Code de commerce) whereby the corporate officers and management bodies of a company report to the governing body on their management over the past year, and provide all significant information about the issuer and its future prospects. It is prepared by the same bodies as the ones that approve the annual financial statements. Companies preparing conso- lidated financial statements must also provide information about the management of the group. This document is included in the registration document.

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Interim dividend Advance payment of a portion of the forth coming dividend.

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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