HERMES_REGISTRATION_DOCUMENT_2017

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ADDITIONAL INFORMATION

GLOSSARY

Market capitalisation This is the market value of a company at a given time. It is calculated by multiplying the stock market price by the number of shares comprising the capital. Net income/(loss) A company’s net income is the balance between all of its income and all of its expenses over a given period. It reflects what the company has earned or lost through its business activities over that period. Non-recurring operating income Corresponds to recurring operating income, plus other non-recurring income and expense items. Major events having occurred during the year and producing amaterial financial impact are contained in this item, which is presented separately from recurring operating income because it could give a misleading view of the Group’s performance. Operating cash flows Operating cash flows are all the financial resources generated by the company in connection with its activity that it could use to cover its finan- cial needs. It measures the company’s ability to finance its requirements in order to exist, using its own resources, such as investments or debt repayments. Organic growth Organic growth is the change in an indicator compared to the previous year, excluding effects due to a change of scope, foreign exchange or changes to accounting methods. Quorum Minimum percentage of shares present or represented and carrying voting rights, required for a general meeting to validly proceed. Recurring operating income Difference between all income and expenses directly related to the Group’s activities, whether these are recurring or the result of ad hoc, atypical decisions or transactions. Recurring operating income is an intermediate aggregate that makes it easier to understand the Group’s operating performance and can be used to provide a forward-looking approach to recurring performance. This indicator is presented in a consistent, stable way over time, according to the principle of continuity and relevance of financial information. Registered Share Whensharesareregisteredshares,thecustodian isthecompany itselfor an agent appointed by the issuing company to keep its registered share accounts. For Hermès International, this agent is BNP Paribas Securities Services (BP2S). Holders of registered shares are known by name by the issuing company. They may either manage their shares themselves, in which case they are described as “pure” registered shareholders, or appoint an agent of their choosing to manage their account held with the issuing company, in which case they are described as “administered” registered shareholders. Net profit Positive income statement (P+L) balance.

Registration Document An information document about an issuer containing all the legal, econo- mic and accounting information presenting a company for a given year. While this document is optional, most large publicly-traded companies do draft a registration document. Restated net cash Restated net cash includes cash investments that do not meet IFRS cash equivalent criteria as a result of their original maturity of more than three months. Remote voting A shareholder may vote by post using a form provided for this purpose or online (please refer to the corresponding notice of meeting). Revenue The revenue is the total amount of sales of goods and services made by the company, over a given period, in the normal course of business. Revenue at constant exchange rate Revenue at constant exchange rate is calculated by applying the average exchange rates of the previous period, for each currency. ROCE Recurring operating income, after tax on operating income, based on average capital employed. Share A marketable security issued by a listed (publicly-traded) or unlisted incorporated company, representing the unit value of the company’s capital and granting the holder shareholder status. This share carries rights to disclosure of information and the right to vote at general mee- tings, as well as financial rights (right to dividends, subscription right). A share may be a bearer share or a registered share. Share buyback After consulting its shareholders at a general meeting and obtaining their consent, a company may purchase its own shares, on the stock market, within the limit of 10% of its capital. Shares thus purchased may then be held, sold, transferred or cancelled. Share capital Portion of equity capital contributed by shareholders when the company is established or upon a subsequent capital increase. Shareholding certificate Document provided by the financial intermediary proving that a holder of bearer shares is a shareholder. This document enables the shareholder to take part in general meetings. Shareholders’ equity Capital belonging to the shareholders comprising equity subscriptions, profits left in reserves and income for the period.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL