Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

RISK FACTORS AND MANAGEMENT RISK FACTORS

LEGAL AND REGULATORY RISKS

4.1.3

COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS IN ALL AREAS ӳ

4.1.3.1

DESCRIPTION OF THE RISK ◆

POTENTIAL IMPACTS ON THE GROUP ◆

Regulatory non‑compliance could have a negative impact on the Group’s operations, tarnish its reputation and give rise to financial penalties.

The Hermès Group is committed to complying with the laws and regulations to which it is subject in France and internationally. These laws and regulations are increasingly numerous and complex.

IMPACT PROBABILITÉ

RISK MANAGEMENT ◆

The Group keeps abreast of developments in regulations and case law as well as technology in all relevant areas to ensure that it maintain compliance both in France and internationally. This monitoring is carried out in‑house and by external firms: internally, given the increasing complexity of each legal matter, the legal department is organised into specialised divisions, with departments or divisions specialising in one area of law (corporate and securities law, real estate law, mergers and acquisitions law, anti‑counterfeiting). Business divisions with generalist teams in charge of the various métiers and regional divisions with legal teams in China, Japan, Singapore, South Korea and the United States, complete this organisation. The compliance department, which includes the experts in personal data protection law also reports to it. Employment and tax matters are respectively handled by the Group’s human resources and finance departments, which work in conjunction with the legal department. The legal department also works closely with the Group’s industrial department to ensure the regulatory compliance of Hermès products (safety, marking and physical properties) in all of the Group’s areas of activity; • externally, in each of the regions where the Group develops its activity, Hermès is advised by specialised local law firms. The Group continues to be involved in ongoing litigation, but there are no pending settlements that are expected to have an impact on its activity or on its financial results. The Company is not aware of any other pending or potential governmental, legal or arbitration proceedings that may have, or that over the last 12 months have had, a significant impact on the Group’s financial position or profitability. •

4

● Strategy and operations ● Industry

● CSR

● Regulatory compliance

● Finance

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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