Hermès // 2021 Universal Registration Document

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ADDITIONAL INFORMATION GLOSSARY

Operating cash flows

Registered share

Operating cash flows are all the financial resources generated by the Company in connection with its activity and which it could use to cover its financial 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.

When shares are registered shares, the custodian is the Company itself or 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.

Parent company financial statements

The parent company financial statements are the annual financial statements of Hermès International taken individually.

Remote voting

Preemptive subscription right

A shareholder may vote by post using a form provided for this purpose or online (please refer to the corresponding notice of meeting).

Tradable right, detached from each existing share, enabling existing shareholders to purchase new shares or securities giving access to the share capital in an offering before the general public has the opportunity to do so, or to obtain, by selling their rights, an amount equivalent to the notional reduction in the value of their shares that would arise from the new issue. In return for the cancellation of preemptive subscription rights, the Executive Management may introduce a priority right, which may be pro-rated. A priority right, like a preemptive subscription right, enables existing shareholders to subscribe to the proposed issue in proportion to the number of shares they currently hold. However, unlike a preemptive subscription right, a priority right is (i) exercisable within a priority period (in practice, at least five trading sessions) that is shorter than the period allowed for a preemptive right and (ii) not tradable. In some cases, the Executive Management may introduce pro-rated subscription rights in favour of existing shareholders. This means that if irreducible subscriptions ( i.e. subscriptions by shareholders exercising preemptive subscription rights) fail to entirely absorb the capital increase, the unsubscribed equity securities would be allocated on a pro-rated basis to those shareholders who made an application for additional shares (over and above the entitlement given by their preemptive subscription rights) in proportion to the subscription rights they hold and within the limit of the number of shares applied for by that shareholder. Priority subscription right/Priority subscription period Pro-rated (subscription rights)

Restated net cash

Restated net cash corresponds to net cash plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities.

Revenue

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.

Share

A marketable security issued by a listed (publicly-traded) or unlisted incorporated company, representing the unit value of the Company’s share capital and granting the holder shareholder status. This share carries rights to disclosure of information and the right to vote at General Meetings, as well as financial rights (right to dividends, subscription rights). 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 (in accordance with the objectives defined in the share buyback programme). Shares thus purchased may then be held, sold, transferred or cancelled.

Share capital

Quorum

Portion of equity capital contributed by shareholders when the Company is established or upon a subsequent capital increase.

Minimum percentage of shares present or represented and carrying voting rights, required for a General Meeting to validly proceed.

Shareholding certificate

Recurring operating income

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.

Recurring operating income is one of the main performance indicators monitored by the Group’s management. It excludes non-recurring items having a significant impact that could affect understanding of the Group’s economic performance.

530 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL