Hermès // 2021 Universal Registration Document

3

CORPORATE GOUVERNANCE EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

Main duties and work carried out in 2021 1

Purpose of duties

be informed of the security system and receive feedback on incidents in the financial year ended; s be informed of the results of risk management, audit and internal control activities; s be informed of the audit plan; s regularly review exposure to risks such as financial, legal, operational, social and environmental risks and the s actions taken as a result; be informed, in a joint meeting with the CAG-CSR Committee, of exposure to CSR risks; s be informed of personal data risks and the corresponding action plans; s be informed of operational risk mapping: in 2021, digital and the American subsidiary Hermès Of Paris; s be informed of the Group risk mapping and the corresponding action plans; s be informed annually, on the basis of the risk mapping, of IT risks, in particular cyber risks, and the s corresponding action plans; proofread chapter 4 “Risk factors and management” of the universal registration document; s be informed of the update of the plan to prevent and fight against corruption; s ensure the implementation of a system for the prevention and detection of corruption and influence-peddling and s

Control of risk exposure and prevention of corruption

be informed of changes to the corruption prevention programme; be informed of the establishment of a new banking relationship. •

One-off or multi-year topics •

(1) Non-exhaustive list

Annual topics

s

As part of its missions, the Audit and Risk Committee heard from the Communication and Investor Relations, the Director of Hermès Executive Vice-President Finance, both with regard to the accounting Commercial and his team, the Director of Hermès Bijouterie and her data and treasury data, the Director of Consolidation, the Director of team, the Director of Legal Compliance, the Data Protection Officer and Audit and risk management, the Director of Group Safety, the Director of the Statutory Auditors. Group IT, the Director of Group Treasury, the Director of Financial

EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

3.7

METHODOLOGY

EVALUATION PROCESS

3.7.1

3.7.1.2

The assessment is carried out, in accordance with the recommendations of the Afep Medef Code revised in 2020 (Article 10.3), as follows: once a year, the Supervisory Board discusses its operation; s a formal evaluation is carried out every three years. It is implemented, s under the direction of the CAG-CSR Committee, with the help of the Secretary of the Board; the shareholders are informed each year in the corporate governance s report of the performance of the assessments and, where applicable, the follow-up given to them. The evaluation must have three objectives (Article 10.2 of the Afep-Medef Code updated in January 2020): review the Board’s operating procedures; s check that key issues are properly prepared and discussed; s measure the effective contribution of each Board member to the work s of the Board by virtue of his or her skills and involvement in discussions. EVALUATION OBJECTIVES 3.7.1.3

WHETHER OR NOT TO USE AN EXTERNAL

3.7.1.1

ADVISOR

During the formal 2019 assessment, the CAG-CSR Committee considered it undesirable to call on an outside firm to conduct a formal evaluation of the Supervisory Board for the following reasons: confidentiality concerns raised by giving information on the s Supervisory Board to a third party; the relative absence of weak signals raised by previous evaluations; s progress in terms of governance over the last six years; s the small amount of added value expected from an external firm, s particularly given the specific nature of a société en commandite par actions (partnership limited by shares), which offers few comparables.

290 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL