Hermès // CSR Extract 2023

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.2.1.2 Group entities get involved In 2023, Hermès continued its efforts to extend its generous initiatives in all the regions where it operates. Manufacturing sites and distribution subsidiaries get involved regularly, and are keen to continue the partnerships established. While Group Management is at the root of many initiatives and commitments, the international distribution subsidiaries remain a source of ideas and contribute significantly to the development of local initiatives and partnerships, with dedicated budgets. They encourage involvement and nurture a sense of belonging among employees, who come together around a project and with common objectives. In recent years, the Group’s generosity has taken various forms depending on the regions, the needs identified in the field and the resources available internally, namely financial donations, donations of materials and, lastly, skills‑based sponsorship. These commitments, made locally, are carried out in addition to the philanthropic initiatives carried out by the Fondation d’entreprise Hermès and are broken down according to its areas of intervention (see § 1.11). As explained in § 2.2.7, these actions give rise to centralised monitoring and control in Paris, thanks to the Sponsorship Committee and dedicated tools. Some examples of actions carried out in France and abroad are presented below to illustrate the scope of the Group’s commitment. Create works Strongly anchored in the Auvergne‑Rhône‑Alpes region, HTH supports the Maison de la Danse financially in its artistic programming and its cultural actions in connection with the public. Opened in Lyon in 1980, the Maison de la Danse offers a programme that combines dance, technique, style and the most diverse audiences. Today it is a key cultural player in Lyon, with a reputation both nationally and internationally. In early 2026, the dance workshops will open, to create a place where dance can flourish through residencies, practical artistic workshops and various actions that are in tune with the local cultural fabric. Hermès Italy has decided to support the Associazione Cultura 360, which seeks to highlight heritage and culture in Italy based on three pillars: raising awareness among young people and people far‑removed from sources of culture; the enhancement and conservation of works and heritage, in particular 15th and 16th century frescoes; the promotion of young talents in various artistic fields. In 2023, various frescoes were renovated in Rome, Bologna and Bari. every year, the Group files, as part of its tax obligations, a statement of transfer prices and a country‑by‑country statement, the Cross‑Border Currency Reporting (CBCR) with the French tax administration. The CBCR is created in accordance with the recommendations of the OECD (as interpreted in French tax law). It is subject to an exchange of information between the tax administrations of the countries in which the Group is established. In the countries in which the exchange of information is not operational, the Group has a CBCR programme with the local tax administration. s Tangible and generous commitments: financial donations, contributions in‑kind and skills‑based sponsorship

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* The portion paid to employees only includes gross compensation received directly by employees. Social security charges, which are included under the “Public authorities” share represent 7% of added value.

In particular, the Group’s consolidated income tax expense amounted to €1,305 million, i.e. a tax rate of 27.8% (see note 6 to chapter 5 “Consolidated financial statements”). Concerning taxes, the Group follows the recommendations of the CSR GRI 207 reporting standard: compliance by all Group companies with the regulations in force in the States where its companies are located, compliance with the deadlines provided for by the regulations applicable in each State, for the filing of the required declarations and the payment of the taxes due, • income is taxable in the place where the income is generated, • absence of creation of legal structure or transactions to meet a primarily tax‑related objective, • the fight against tax evasion with the absence of use of tax evasion schemes or structures without substance. • This tax strategy is implemented by Group Financial Management, based on internal (the tax department) and external expertise in France and abroad. This strategy is reviewed and approved by the Executive Committee at least once per year; the location of the Hermès Group’s activities is based exclusively on operational choices, and tax considerations do not modify this approach. The location of production in France, which is a key element of the Hermès Group’s strategy for sustainable development, thus impacts the amounts of taxes paid in the country as well as the Group’s effective tax rate; s the Hermès Group’s tax positions are tracked and audited by the consolidation and tax department, which reports directly to a member of the Executive Committee, one of whose objectives is to anticipate, identify, and manage, with the finance department, the tax issues; s Hermès’ tax strategy is based on the following principles: s

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL EXTRACT FROM 2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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