Hermès // 2021 Universal Registration Document

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PARENT COMPANY FINANCIAL STATEMENTS STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS

Measurement of equity investments – Note 7.2 to the financial statements

Description of risk At 31 December 2021, equity investments were recognised in the balance sheet at a gross value of €1,575 million and a net value of €647 million. They are carried at acquisition cost, excluding incidental expenses. As indicated in Note 7.2 “Financial assets” to the financial statements, the balance sheet value is estimated based on the proportionate share of net assets, which may be corrected, if need be, based on the profitability outlook for the concerned subsidiary. If the subsidiary’s net position is negative, an impairment for receivables due and a provision for risks and expenses may also be recognised. Given the materiality of equity investments in the balance sheet, the significant judgement exercised by management to estimate the balance sheet value and the sensitivity to changes in the assumptions underlying the estimated values, we deemed the measurement of the balance sheet value of equity investments to be a key audit matter. How our audit addressed this risk Based on the information provided to us, our work consisted primarily in: assessing the process used by the Company to determine the balance sheet value of equity investments; s verifying that the criteria applied by management to determine the balance sheet value are appropriate and that any impairment calculated based s on those values is correct; verifying that the equity values used are consistent with the consolidation packages of the entities concerned, in particular for measurements based s on historical data. In addition to assessing the balance sheet value of equity investments, our work also consisted in verifying, where applicable, the recognition of impairment for receivables due, and a provision for risks in cases where the Company is liable for the losses of a subsidiary with negative equity. Information given in the management report and in the other documents provided to the shareholders with respect to the Company’s financial position and the financial statements We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report prepared by Executive Management and in the other documents provided to the shareholders with respect to the Company’s financial position and the financial statements. We attest to the fair presentation and the consistency with the financial statements of the information about payment terms referred to in article D.441-6 of the French Commercial Code. We attest that Executive Management’s report on corporate governance sets out the information required by articles L.225-37-4, L.22-10-10 and L.22-10-9 of the French Commercial Code. Concerning the information given in accordance with the requirements of article L.22-10-9 of the French Commercial Code relating to remuneration and benefits paid or awarded to corporate officers and any other commitments made in their favour, we have verified its consistency with the financial statements or with the underlying information used to prepare these financial statements, and, where applicable, with the information obtained by the Company from controlled companies within its scope of consolidation. Based on this work, we attest to the accuracy and fair presentation of this information. Concerning the information given in accordance with the requirements of article L.22-10-11 of the French Commercial Code relating to those items the Company has deemed liable to have an impact in the event of a takeover bid or exchange offer, we have verified its consistency with the underlying documents that were disclosed to us. Based on this work, we have no matters to report with regard to this information. Report on corporate governance SPECIFIC VERIFICATIONS In accordance with professional standards applicable in France, we have also performed the specific verifications required by French legal and regulatory provisions.

Other information

In accordance with French law, we have verified that the required information concerning the identity of the shareholders and holders of the voting rights has been properly disclosed in the management report.

434 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL