Hermès // CSR Extract 2023

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE PEOPLE: TEAMS

Vesting of the free share plan granted on 1 July 2019

New free share plan on 15 June 2023

At 31 December 2023, employee shareholding represented

More than 18,000 employees in 35 countries received rights to 12 shares. At the end of the acceptance period, 210,168 shares were allocated.

More than 10,500 employees acquired the fourth tranche of 12 shares granted by the Executive Management on 1 July 2019.

1.09% of the share capital, i.e. more than €2.2 billion.

Profit‑sharing and incentive schemes (France) Since 2012, a special profit‑sharing agreement signed with all of the representative unions has enabled all employees of the companies in France to share in the profits of the Hermès Group in a harmonised manner. Incentive scheme agreements are in place at all Group companies in France. These agreements, concluded for a period of one to three years, aim to involve employees in the development of locally‑determined indicators that are relevant with regard to the activity and environment of each of these entities, notably, quality, safety (for example, work accident rate at Hermès Sellier), productivity and sustainable development objectives (for example, water consumption in the Textile division). Incentive schemes are thus an opportunity for Hermès to involve its employees in the achievement of its sustainability objectives. In France, more than 88% of the workforce is covered by an incentive agreement including objectives related to sustainable development (improvement of safety, frugal use of materials, protection of resources, etc.). Employees of international entities (38% of Group employees in 2023) also benefit from a range of regular additional compensation initiatives in line with performance and local customs. In France, €207 million in incentive schemes and profit‑sharing in respect of 2023 (amount including expenses) will be distributed to the Group’s employees, compared with €168 million respectively for the previous financial year. In total, the increase in these two amounts is more than 23%. These have a significant positive impact on the overall compensation (short, medium and long‑term) of the House’s employees and reflect its desire to share the fruits of its growth with everyone. The amount distributed in 2023 in respect of employee support activities was €5.1 million (€4.5 million in 2022).

Everywhere in the world where these defined‑contribution supplemental pension plans have been set up, the Group finances the majority share (in accordance with legal rules and/or local agreements). The management of these systems is entrusted to specialist external partners (insurer, bank or other). The Group’s total commitment in terms of defined‑benefit pensions and other employee benefit obligations was €279 million in 2023. Thanks to these proactive and ambitious social protection policies, more than 97% of employees worldwide are able to benefit from health coverage, 96% are covered by disability plans, and 97% of employees worldwide are able to benefit from pension plans. These systems are amended as necessary (regulatory, Group decision, market practice, financial equilibrium, etc.) to contribute to the quality of the overall compensation package for Hermès’ teams. Supra‑legal leave to support parenthood The granting of supra‑legal leave, in particular to support parenthood, is an important issue for the House, which is very attentive to providing its employees with good working conditions and a balance between their professional and personal lives, particularly when welcoming a child. Since 2019, the Group has therefore decided to roll out a common maternity leave policy for all its subsidiaries worldwide. In particular, it includes full maintenance of basic compensation for a minimum period of 16 weeks’ leave and coverage of the costs related to childbirth. The parental leave including paternity, adoption and second‑parent leave scheme subsequently evolved rapidly to offer employees of the House four weeks of leave with salary maintained without any length of service condition. This system was initially rolled out in France and has gradually been implemented around the world. To date, 78% of the House’s employees have the opportunity to access this leave to welcome their children under favourable conditions. To support the choice of part‑time working after a birth or adoption, pension contributions are paid by the employer on a full‑time basis (these measures apply in the vast majority of entities in France, in accordance with the provisions of the collective agreements in force). these supplemental pension plans for all local employees are also set up in the United States, Canada, the United Kingdom, Germany, Switzerland and Belgium, as well as in Asia -China, Singapore and Korea- where these mechanisms are not widespread. Implementation continues for example in Spain and Poland. s collective agreement. In 2023, this plan represented total contributions of €10 million, of which over 91% financed by the employer;

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Incentive schemes and profit- sharing in France (in €m)

Incentive schemes

Profit- sharing

Total

In respect of 2022

64

104 168

79

128 207

In respect of 2023

Pension schemes In terms of supplemental pensions, the aim is to help employees build up additional income at the end of their working lives. Hermès is often a pioneer in the proactive implementation of these systems. For example: in France, more than 15 years ago, Hermès set up a supplemental defined‑contribution pension plan for all employees under a s

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

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