Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

MESSAGE FROM THE EXECUTIVE MANAGEMENT5
HIGHLIGHTS 20226
1. PRESENTATION OF THE GROUP AND ITS RESULTS9
1.1 SIX GENERATIONS OF CRAFTSPEOPLE10
1.2 GROUP GOVERNANCE13
1.3 STRATEGY14
1.4 SIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS17
1.4.1 SUMMARY DESCRIPTION OF THE GROUP AS AT 31 DECEMBER 202217
1.4.2 INTEGRATED PRODUCTION AND TRAINING SITES WORLDWIDE18
1.4.3 INTEGRATED PRODUCTION AND TRAINING SITES IN THE FRENCH REGIONS19
1.4.4 WORLDWIDE DISTRIBUTION NETWORK20
1.4.5 REAL ESTATE22
1.5 KEY FINANCIAL AND NON FINANCIAL FIGURES23
1.5.1 REVENUE BY MÉTIER FOR 2022 (2021)23
1.5.2 REVENUE BY GEOGRAPHICAL AREA FOR 2022 (2021)23
1.5.3 KEY CONSOLIDATED FINANCIAL DATA23
1.5.4  KEY NON-FINANCIAL FIGURES25
1.6 REVENUE AND ACTIVITY BY MÉTIER26
1.6.1 LEATHER GOODS & SADDLERY26
1.6.2 READY TO WEAR AND ACCESSORIES28
1.6.3 SILK AND TEXTILES29
1.6.4 OTHER HERMÈS SECTORS30
1.6.5 PERFUME AND BEAUTY30
1.6.6 WATCHES31
1.6.7 OTHER PRODUCTS AND BRANDS32
1.6.8 GROUP PARTNERSHIPS34
1.7 REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA35
1.7.1  EUROPE35
1.7.2 ASIA-PACIFIC36
1.7.3 AMERICAS37
1.7.4 NEAR AND MIDDLE EAST38
1.7.5 DIGITAL STRATEGY38
1.8 COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS39
1.8.1 INCOME STATEMENT39
1.8.2 CASH FLOWS AND INVESTMENTS40
1.8.3 FINANCIAL POSITION40
1.9 SIGNIFICANT EVENTS SINCE THE END OF THE FINANCIAL YEAR40
1.10 OUTLOOK41
1.11 FONDATION D’ENTREPRISE43
2. CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE45
2.1 BUSINESS MODEL49
2.1.1 CONCRETE LONG TERM COMMITMENTS54
2.1.2 AN AMBITIOUS AND STRUCTURING CSR STRATEGY55
2.1.3  MATERIALITY ANALYSIS56
2.1.4 ANALYSIS OF NON FINANCIAL RISKS58
2.1.5 CSR STRATEGY59
2.1.6 CSR GOVERNANCE64
2.2 PEOPLE: TEAMS67
2.2.1  GENERAL INFORMATION ABOUT EMPLOYEES70
2.2.2 EMPLOYEE FULFILMENT AND WELL-BEING70
2.2.3 DIVERSITY, EQUITY AND INCLUSION85
2.3 PEOPLE: SAVOIR-FAIRE95
2.3.1 FOSTERING NEW CAREERS FORCRAFTSPEOPLE98
2.3.2 INTEGRATING AND DEVELOPING EMPLOYEES AND TEAMS102
2.3.3 DEVELOPING AND PRESERVING HISTORICAL SAVOIR-FAIRE110
2.4 THE PLANET: RAW MATERIALS113
2.4.1 ECO DESIGN AND CIRCULAR ECONOMY117
2.4.2 SUPPLY CHAINS124
2.4.3 BIODIVERSITY133
2.5 THE PLANET: ENVIRONMENT143
2.5.1 ENVIRONMENTAL ACTIONS FRAMEWORK147
2.5.2 RESPONSIBLE REAL ESTATE148
2.5.3 RESOURCE MANAGEMENT149
2.5.4 WASTE CONTROL157
2.5.5 CONTROL OF POLLUTION RISKS159
2.5.6 CLIMATE CHANGE163
2.6 COMMUNITIES: SUPPLIERS & PARTNERS183
2.6.1 SUPPORT AND CONTROL186
2.6.2 DEVELOPMENT OF RESPONSIBLE PURCHASING194
2.7 COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY197
2.7.1 REGIONAL RESPONSIBILITY IN FRANCE200
2.7.2 SOCIALLY RESPONSIBLE COMPANY202
2.7.3 COMMUNICATION AND TRANSPARENCY VIS-À-VIS STAKEHOLDERS207
2.7.4 APPLICATION OF THE EUROPEAN TAXONOMY TO THE HERMÈS GROUP210
2.7.5 ANALYSIS OF CORRESPONDENCE WITH THE MAIN NON FINANCIAL REPORTING FRAMEWORKS214
2.7.6 HERMÈS' CONTRIBUTION TO THE UN SUSTAINABLE DEVELOPMENT GOALS (SDGS)223
2.8 ETHICS – COMPLIANCE227
2.8.1  PROMOTING ETHICS228
2.8.2 FIGHTING AGAINST CORRUPTION234
2.8.3 PROTECTING PERSONAL DATA236
2.8.4 DUTY OF CARE237
2.9 REPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON FINANCIAL STATEMENT243
2.10 REASONABLE ASSURANCE REPORT FROM ONE OF THE STATUTORY AUDITORS ON THE IDENTIFIED SUSTAINABILITY INFORMATION OF HERMÈS INTERNATIONAL’S NON FINANCIAL PERFORMANCE STATEMENT AS AT/ FOR THE YEAR ENDED DECEMBER 31 , 2022250
3. CORPORATE GOVERNANCE253
SUPERVISORY BOARD CORPORATE GOVERNANCE REPORT255
3.1 THE COMPANY’S CORPORATE GOVERNANCE CODE255
3.1.1 CORPORATE GOVERNANCE PRINCIPLES APPLIED255
3.1.2 PROVISIONS OF THE AFEP MEDEF CORPORATE GOVERNANCE CODE NOT APPLIED AND THOSE NEWLY COMPLIED WITH255
3.2 AMBITIOUS AND BALANCED GOVERNANCE259
3.2.1 ORGANISATIONAL STRUCTURE OF HERMÈS INTERNATIONAL AS AT 31 DECEMBER 2022259
3.2.2 TWO TYPES OF PARTNERS260
3.2.3 GOVERNANCE BY NATURE DISSOCIATED261
3.3 ADMINISTRATIVE AND MANAGEMENT BODIES262
3.3.1 THE ACTIVE PARTNER AND ITS EXECUTIVE MANAGEMENT BOARD262
3.3.2 EXECUTIVE MANAGEMENT263
3.3.3 GOVERNING BODIES267
3.3.4 NON DISCRIMINATION AND DIVERSITY POLICY271
3.3.5 SUCCESSION PLAN FOR SENIOR EXECUTIVES273
3.4 ORGANISATION OF THE SUPERVISORY BOARD274
3.4.1 KEY DATA ON THE SUPERVISORY BOARD AS AT 31 DECEMBER 2022274
3.4.2 APPLICABLE PRINCIPLES275
3.4.3 DIVERSITY POLICY APPLIED WITHIN THE SUPERVISORY BOARD277
3.4.4 SUCCESSION PLAN FOR THE CHAIRMAN OF THE SUPERVISORY BOARD279
3.4.5 COMPOSITION OF THE SUPERVISORY BOARD280
3.4.6 INDEPENDENCE OF THE MEMBERS OF THE SUPERVISORY BOARD285
3.4.7 SUPERVISORY BOARD ETHICS287
3.4.8 INFORMATION ON SITTING MEMBERS OF THE SUPERVISORY BOARD290
3.5 FUNCTIONING OF THE SUPERVISORY BOARD309
3.5.1 ROLE OF THE SUPERVISORY BOARD309
3.5.2 MEETINGS OF THE SUPERVISORY BOARD AND THE JOINT COUNCIL310
3.5.3 INFORMATION AND TRAINING OF THE SUPERVISORY BOARD311
3.5.4 MAIN DUTIES OF THE SUPERVISORY BOARD AND WORK CARRIED OUT IN 2022314
3.5.5 ETHICS AND COMPLIANCE – PERSONAL DATA PROTECTION315
3.5.6 CORPORATE SOCIAL RESPONSIBILITY (CSR)316
3.5.7 COMPENSATION AND REIMBURSEMENT OF EXPENSES318
3.6 SPECIALISED COMMITTEES319
3.6.1 APPLICABLE PRINCIPLES319
3.6.2 CAG CSR COMMITTEE320
3.6.3 AUDIT AND RISK COMMITTEE324
3.7 EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES326
3.7.1 METHODOLOGY326
3.7.2 CHANGES SINCE THE LAST EVALUATIONS327
3.7.3 THREE YEARLY FORMAL EVALUATION IN 2022328
3.8 COMPENSATION AND BENEFITS OF CORPORATE OFFICERS330
3.8.1 COMPENSATION POLICY FOR THE EXECUTIVE CHAIRMEN (EXECUTIVE CORPORATE OFFICERS) AND MEMBERS OF THE SUPERVISORY BOARD (NON EXECUTIVE CORPORATE OFFICERS)330
3.8.2 OVERVIEW OF COMPENSATION AND BENEFITS OF ALL KINDS FOR CORPORATE OFFICERS341
3.8.3 ALLOCATION OF FREE SHARES AND STOCK OPTIONS347
3.8.4 TABLES DRAWN UP IN ACCORDANCE WITH AMF POSITION RECOMMENDATION DOC 2021-02 (§ 13.3) OF 5 JANUARY 2022 ON THE PRESENTATION OF COMPENSATION348
3.8.5 SUMMARY TABLE OF THE VOTES OF THE GENERAL MEETING ON THE RESOLUTIONS RELATING TO THE COMPENSATION OF CORPORATE OFFICERS355
3.9 OTHER INFORMATION355
3.9.1 AGREEMENTS355
3.9.2 CAPITAL STRUCTURE AND FACTORS LIABLE TO AFFECT THE OUTCOME OF A PUBLIC OFFERING357
3.9.3 SPECIAL CONDITIONS FOR ATTENDING GENERAL MEETINGS358
3.9.4 SUMMARY TABLE OF THE USE OF FINANCIAL DELEGATIONS OF AUTHORITY359
3.10 OTHER INFORMATION FROM THE EXECUTIVE MANAGEMENT REPORT362
3.10.1 INTERESTS OF CORPORATE OFFICERS AND EXECUTIVE COMMITTEE MEMBERS IN THE SHARE CAPITAL362
3.10.2 DECLARATIONS CONCERNING CORPORATE OFFICERS AND THE EXECUTIVE COMMITTEE363
4. RISK FACTORS AND MANAGEMENT365
4.1 RISK FACTORS366
4.1.1 RISKS RELATED TO STRATEGY AND OPERATIONS368
4.1.2 INDUSTRIAL RISKS373
4.1.3 LEGAL AND REGULATORY RISKS377
4.1.4 RISKS RELATED TO SOCIAL, SOCIETAL AND ENVIRONMENTAL RESPONSIBILITY378
4.1.5 FINANCIAL RISKS382
4.2 INSURANCE POLICY AND RISK HEDGING385
4.3 RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT386
4.3.1 A DEMANDING CONTROL ENVIRONMENT386
4.3.2 COMMITTED PARTIES RESPONSIBLE FOR RISK MANAGEMENT AND CONTROL386
4.3.3 A CONTROLLED RISK MANAGEMENT SYSTEM389
4.3.4 A MATURE INTERNAL CONTROL SYSTEM390
4.3.5 AN AGILE INTERNAL AUDIT SYSTEM393
5. CONSOLIDATED FINANCIAL STATEMENTS397
5.1 CONSOLIDATED INCOME STATEMENT398
5.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME398
5.3 CONSOLIDATED BALANCE SHEET399
5.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY400
5.5 CONSOLIDATED STATEMENT OF CASH FLOWS401
5.6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS402
5.7 STATUTORY AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS442
6. PARENT COMPANY FINANCIAL STATEMENTS449
6.1 INCOME STATEMENT450
6.2 BALANCE SHEET451
6.3 CHANGES IN EQUITY452
6.4 STATEMENT OF CASH FLOWS452
6.5 NOTES TO THE FINANCIAL STATEMENTS453
6.6 TABLE OF RESULTS OVER THE LAST FIVE YEARS468
6.7 INFORMATION ON PAYMENT TERMS469
6.8 OTHER INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS470
6.8.1 INFORMATION ON BRANCHES470
6.8.2 INFORMATION ON THE AMOUNT OF INTER COMPANY LOANS470
6.8.3 EQUITY INVESTMENTS IN COMPANIES HAVING THEIR REGISTERED OFFICE IN FRANCE (ARTICLE L. 233 6 OF THE FRENCH COMMERCIAL CODE (CODE DE COMMERCE))470
6.9 STATUTORY AUDITORS' REPORT ON THE ANNUALFINANCIAL STATEMENTS471
7. INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL477
7.1 PRESENTATION OF HERMÈS INTERNATIONAL478
7.1.1 GENERAL INFORMATION ABOUT HERMÈS INTERNATIONAL478
7.1.2 ROLE OF HERMÈS INTERNATIONAL478
7.1.3 COMMENTED ARTICLES OF ASSOCIATION OF HERMÈS INTERNATIONAL478
7.1.4 SIMPLIFIED ORGANISATION CHART AND MAIN SUBSIDIARIES486
7.1.5 PRINCIPAL FLOWS BETWEEN HERMÈS INTERNATIONAL AND THE MAIN SUBSIDIARIES487
7.1.6 HERMÈS GROUP TAX POLICY487
7.1.7 INVESTMENTS487
7.2 INFORMATION ON SHARE CAPITAL AND SHAREHOLDERS AFR488
7.2.1 INFORMATION ON SHARE CAPITAL488
7.2.2 INFORMATION ON SHAREHOLDERS488
7.2.3 TRANSACTIONS PERFORMED BY CORPORATE OFFICERS AND THOSE CLOSE TO THEM ON THE SHARES OF THE COMPANY495
7.2.4 STOCK MARKET ETHICS CODE496
7.2.5 MATERIAL CONTRACTS, SHAREHOLDER PACTS AND AGREEMENTS497
7.3 DIVIDEND POLICY499
7.3.1 PRINCIPLES499
7.3.2 PROPOSAL SUBMITTED TO THE 2023 GENERAL MEETING499
7.4 STOCK MARKET INFORMATION500
7.4.1 SUMMARY OF STOCK MARKET INFORMATION500
7.4.2 HISTORY OF MONTHLY TRANSACTIONS500
7.4.3 HERMÈS INTERNATIONAL SHARE PRICE HISTORY501
7.4.4 ELEMENTS LIABLE TO HAVE AN IMPACT IN THE EVENT OF A PUBLIC OFFERING503
7.5 SHAREHOLDER INFORMATION504
7.5.1 RELATIONS WITH SHAREHOLDERS504
7.5.2 SECURITIES SERVICE504
7.5.3 DOCUMENTS AVAILABLE TO THE PUBLIC504
7.5.4 BECOMING A HERMÈS INTERNATIONAL SHAREHOLDER504
7.5.5 DIALOGUE WITH SHAREHOLDERS AND THE FINANCIAL COMMUNITY IN 2022505
7.5.6 FINANCIAL CALENDAR FOR 2023506
7.5.7 REGULATED INFORMATION506
7.5.8 OBLIGATIONS RELATING TO THE DECLARATION OF THRESHOLD CROSSINGS AND NOMINATIVE REGISTRATION506
8. COMBINED GENERAL MEETING OF 20 APRIL 2023509
8.1 AGENDA510
8.1.1 ORDINARY BUSINESS510
8.1.2 EXTRAORDINARY BUSINESS511
8.2 EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS512
8.2.1 ORDINARY BUSINESS512
8.2.2 EXTRAORDINARY BUSINESS529
8.3 SUPERVISORY BOARD REPORT TO THE COMBINED GENERAL MEETING OF 20 APRIL 2023545
8.4 STATUTORY AUDITORS' REPORTS547
8.4.1 STATUTORY AUDITORS' REPORT ON THE ANNUAL FINANCIAL STATEMENTS547
8.4.2 STATUTORY AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS547
8.4.3 STATUTORY AUDITORS' SPECIAL REPORT ON RELATED PARTY AGREEMENTS548
8.4.4 REPORT BY ONE OF THE STATUTORY AUDITORS, DESIGNATED AS AN INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION CONTAINED IN THE MANAGEMENT REPORT550
8.4.5 STATUTORY AUDITORS’ REPORT ON THE SHARE CAPITAL REDUCTION (NINETEENTH RESOLUTION)550
8.4.6 STATUTORY AUDITORS’ REPORT ON THE ISSUE OF SHARES AND/OR OTHER SECURITIES GIVING ACCESS TO THE SHARE CAPITAL WITH OR WITHOUT PREEMPTIVE SUBSCRIPTION RIGHTS (TWENTY FIRST, TWENTY SECOND, TWENTY FOURTH AND TWENTY FIFTH RESOLUTIONS)551
8.4.7 STATUTORY AUDITORS’ REPORT ON THE ISSUE OF ORDINARY SHARES AND/OR SECURITIES RESERVED FOR MEMBERS OF A COMPANY OR GROUP SAVINGS PLAN, WITHOUT PREFERENTIAL SUBSCRIPTION RIGHTS (TWENTY THIRD RESOLUTION)553
8.4.8 STATUTORY AUDITORS’ REPORT ON THE AUTHORISATION TO GRANT EXISTING SHARES FREE OF CONSIDERATION (TWENTY EIGHTH RESOLUTION)554
9. ADDITIONAL INFORMATION557
9.1 PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT558
9.1.1 NAME AND FUNCTION OF PERSONS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THE UNIVERSAL REGISTRATION DOCUMENT558
9.1.2 CERTIFICATION BY THE PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT558
9.2 PERSONS RESPONSIBLE FOR AUDITING THE FINANCIAL STATEMENTS559
9.3 CONSULTATION OF REGULATORY INFORMATION559
9.4 INFORMATION INCLUDED BY REFERENCE560
9.5 CROSS REFERENCE TABLES562
9.5.1 CROSS REFERENCE TABLE FOR THE ANNUAL FINANCIAL REPORT565
9.5.2 CROSS REFERENCE TABLE FOR THE MANAGEMENT REPORT566
9.5.3 CROSS--REFERENCE TABLE FOR THE SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE569
9.5.4 CROSS REFERENCE TABLE FOR THE UNIVERSAL REGISTRATION DOCUMENT571
9.5.5 CROSS REFERENCE TABLE FOR THE NON FINANCIAL PERFORMANCE STATEMENT577
9.5.6 TCFD REFERENCE TABLE578
9.6 GLOSSARY579

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