Hermès // 2021 Universal Registration Document

CORPORATE GOUVERNANCE SPECIALISED COMMITTEES

OPERATION

The Executive Vice-President of Corporate Development and Social Affairs, systematically participates in the meetings of the Audit and Risk Committee. The Director of Audit and risk management, is responsible for the Secretariat under the responsibility of the Chairwoman. The Statutory Auditors attend the two meetings relating to the review of the annual and half-year financial statements. At the first Supervisory Board meeting following a meeting of the Audit and Risk Committee, the Chairwoman gives an oral report on the Committee’s work to the members of the Board, a summary of which is then included in the minutes of the Board meeting. The Audit and Risk Committee uses the Herboard secure digital platform (see § 3.5.3.2). Minutes of Audit and Risk Committee meetings are prepared at the end of each meeting and sent to all members of the Committee.

3.6.3.3

The operation of the Audit and Risk Committee complies with the principles applicable to the Supervisory Board committees (see § 3.6.1). The Audit and Risk Committee meets as many times as necessary and usually six times per financial year, including once before the approval of the annual financial statements by the Executive Management and once before the review of the half-yearly financial statements by the Supervisory Board. As part of its responsibilities in terms of social and environmental responsibility, a meeting dedicated to the presentation of CSR risk exposure has been held every year since 2021 with the CAG-CSR Committee. The purpose of this joint meeting is to strengthen coordination and sharing between the two committees on this related subject. The Audit and Risk Committee meets when convened by its Chairwoman, who sets the agenda of the meeting in writing or verbally, in any location indicated in the notice of meeting. Before each Audit and Risk Committee meeting, Committee members are sent, in good time, with reasonable lead time and subject to confidentiality requirements, a file containing documentation on items on the agenda requiring prior analysis and review.

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MAIN DUTIES AND WORK CARRIED OUT IN 2021

3.6.3.4

In accordance with Article L. 823-19 of the French Commercial Code ( Code de commerce ) and without prejudice to the powers of the Supervisory Board, which it does not replace, the main duties of the Audit and Risk Committee performed in 2021 are as follows:

Main duties and work carried out in 2021 1

Purpose of duties

be informed of the impact of Covid-19 on the activities of the audit and risk management department. s

Impact of the health crisis

conduct a periodic self-assessment of its operation; s approve the revision of the rules of procedure of the Audit and Risk Committee. s

General

be informed of the budget for the financial year; s review and comment on the parent company and consolidated financial statements before they are approved by s Executive Management and presented to the Supervisory Board; note the consensus of financial analysts on the full-year and interim results; s review press releases on quarterly revenue, full-year and interim results; s ensure that the accounting policies applied are relevant and consistent; s verify that internal data collection and control procedures guarantee the quality of the information provided; s review the work programme and results of internal and external audit assignments: s monitor the process of preparing financial information and, where appropriate, make recommendations to s ensure its integrity, monitor the effectiveness of internal control and risk management systems and internal audits regarding the s procedures for preparing and processing accounting, financial and non-financial information without jeopardising its independence. issue a recommendation to the Supervisory Board on the Statutory Auditors proposed for appointment or renewal • by the General Meeting [n/a in 2021] ; monitor the performance by the Statutory Auditors of their assignment (audit approach, audit conclusions, s presentation of the Board’s fees); ensure that the Statutory Auditors comply with the independence conditions; s hold in closed session with the Statutory Auditors; s approve, on a case-by-case basis, the provision by the Statutory Auditors of services other than the certification s of the financial statements; report on the results of the engagement regarding the certification of the financial statements, on the way the s engagement contributed to the integrity of the financial reporting and the role it has played in this process.

Preparation of accounting and financial information

Audit of accounting and financial information and the Statutory Auditors

One-off or multi-year topics •

(1) Non-exhaustive list

Annual topics

s

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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