Hermès - Registration Document 2016

PARENT COMPANY FINANCIAL STATEMENTS

NOTE TO THE FINANCIAL STATEMENTS

RELATED-PARTY TRANSACTIONS

NOTE 14

Transactions with companies accounted for by the equity method were not material by comparisonwith the overall business activities of Hermès International in 2016. The companies mentioned below are considered related parties insofar as certainmembers ofmanagement of theCompany or certainmembers of the Supervisory Board have personal interests therein and exercise significant influence. Relationships with related parties are summarised as follows: s RDAI firm: RDAI architects were appointed to carry out design work on the internal layout of the offices at 10-12 rue d’Anjou, as well as the annual assignment consisting of design work to apply the architectu- ral concept to all Hermès stores. The amounts paid in 2016 are not significant (€8 thousand);

s Émile Hermès SARL, Active Partner: Émile Hermès SARL is a société à responsabilité limitée à capital variable (limited company with variable capital). Its partners are the direct descendants of Mr Émile-Maurice Hermès and his wife. Émile Hermès SARL’s Executive Chairman is Mr Henri-Louis Bauer. The Company is governed by an Executive Management Board. Each year, Hermès International pays 0.67% of the distributable profits to the Active Partner. In addition, Hermès International charges ÉmileHermès SARL for certain expenses incurred. Hermès International charged back €0.2 million in this respect in 2016 and in 2015.

EXPOSURE TO MARKET RISKS AND FINANCIAL COMMITMENTS

NOTE 15

15.1 Currency risk

Most of the Company’s foreign exchange risk exposure comes from sales denominated in foreign currencies. These risks are generally fully hedged, based on highly probable future cash flows, using forward currency sales or options that are eligible for hedge accounting.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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