Hermès // 2021 Universal Registration Document

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RISK FACTORS AND MANAGEMENT RISK FACTORS

MANAGEMENT OF TALENT AND SAVOIR-FAIRE ●

4.1.1.5

DESCRIPTION OF THE RISK s

POTENTIAL IMPACTS ON THE GROUP s

The savoir-faire of craftspeople, and more broadly the development of the potential of employees, is one of Hermès’ key assets. They are based on preserving, enriching and passing on this often exclusive savoir-faire in a context of growth for our métiers and our workforce.

A loss of savoir-faire or the disappearance of exclusive craftsmanship métiers would have an impact on the Group’s operations and reputation, thus negatively affecting its financial results.

IMPACT PROBABILITY

RISK MANAGEMENT s The Group human resources department is in charge of identifying and developing talent in order to lay the groundwork for the next generation at all

levels of the organisation. It is based on specific tailor-made courses and offers a training policy for new employees. Training, along with internal mobility, is one of the major levers to support employees throughout their careers in the House.

The continuous improvement of craftspeople’s skills and savoir-faire is achieved through training and professional qualification programmes carried out in Hermès internal training schools (École du Cuir, École des Tanneurs or École du Textile, among others), as well as through collaborations with external training structures. The promotion of crafts métiers and craftsmanship among younger generations is carried out with the support of partners: schools, training and apprenticeship centres, in order to ensure the knowledge and sustainability of savoir-faire . True to its family tradition and wishing to involve all employees in its growth, Hermès has set up various measures for sharing economic benefits: incentive schemes, profit-sharing, employee shareholding plans, etc. In the context of Covid-19, the House has continued its training by adapting its programmes. Thus, during periods of lockdown, training was held remotely, with face-to-face sessions resuming as soon as possible. All initiatives undertaken by the Group relating to the management of talent and the preservation of savoir-faire are presented in chapter 2 "Corporate social responsibility".

O Strategy & operations

Industry O

CSR O

O Regulatory compliance

O Finance

334 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL