Hermès - Registration Document 2016

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CORPORATE GOVERNANCE

REPORT FROM THE CHAIRMAN OF THE SUPERVISORY BOARD ON THE CORPORATE GOVERNANCE PRINCIPLES

At the time of examination of the accounts by the Audit Committee, this examinationmust be prepared and accompanied by a presentation from the Statutory Auditors underlining the essential points not only relating to results, but also to the chosen accounting options, together with a pre- sentation by the Financial Director describing the Company’s exposure to risks, and its significant unrecognised commitments. The Audit Committee examines the Group’s budgets in a final summary before presentation to the Supervisory Board in order to understand and validate the strategy underlying them. The Audit Committee may contact the Group’s main Senior Executives as part of its remit, once the Chairman of the Supervisory Board has informed the Executive Management. It may, if necessary, request the intervention of an external expert to carry out additional studies. F. Compensation of the Audit Committee Compensation of Audit Committee members is defined by the SupervisoryBoardanddeducted fromthe total amount of directors’ fees. G. Self-assessment of the Audit Committee The Audit Committee periodically assesses its performance in conjunc- tion with the self-assessment of the Supervisory Board. The members of the Audit Committee are specifically called on anonymously through a self-assessment questionnaire. As part of this process, the different areas of responsibility and com- mitment of the Audit Committee and its members are reviewed and assessed; and any applicable recommendations for improving perfor- mance are issued.

tional information requirements (security, legal, information systems departments, etc.). Meetings of the Audit Committee are reasonably held when at least half of its members participate, it being specified that members who partici- pate in an Audit Committeemeeting by way of video-conferencing or tele- communication, under the conditions stipulated for Supervisory Board meetings are deemed to be present. Decisions of the Audit Committee are made by a majority vote of the members present. D. Reports to the Supervisory Board The Audit Committee reports regularly on its activities and the perfor- mance of its work to the Supervisory Board, and informs it without delay of any difficulties encountered. The reports of the Audit Committee must enable the Supervisory Board to be fully informed on the Audit Committee’s performance of its assignments. E. Information of the Audit Committee The Audit Committee must receive all documents necessary to the execution of its assignments, particularly from Hermès International employees and the Statutory Auditors. In particular, it must receive a regular summary of the work of the Audit and Risk Management Department.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL