HERMÈS - 2019 Universal Registration Document

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

CASH AND CASH EQUIVALENTS

NOTE 22 Change in net cash position 22.1

Impact on scope of consolidation

Exchange rate impact

Other 1

31/12/2018 Cash flows

31/12/2019

In millions of euros

Cash and cash equivalents Marketable securities 2 Cash and cash equivalents

1,050.7 2,428.7 3,479.4

(45.1) 926.4 881.3

13.0 10.8 23.8

- - - - -

(0.3)

1,018.3 3,365.9 4,384.2

-

(0.3)

Bank overdrafts and short-term debt (see Note 25.3)

(14.3)

1.7

0.0

-

(12.6)

NET CASH POSITION

3,465.1

883.0

23.8

(0.3)

4,371.6

Corresponds with the mark-to-market on cash and cash equivalents. (1) Primarily invested in money market UCITS, term accounts, term deposits and other, and cash equivalents maturing in less than three months. (2)

All cash and cash equivalents have a maturity of less than three months and a sensitivity of less than 0.5%. Cash and cash equivalents are available for the Group’s needs without any particular restrictions.

The gains and losses generated through disposal of marketable securities during the financial year and recorded through profit or loss were equal to -€0.1 million in 2019 (versus -€0.3 million in 2018). Unrealised gains or losses as at 31 December 2019 stood at -€0.9 million.

Change in working capital requirements 22.2

31/12/2019

31/12/2018

In millions of euros

Inventories and work-in-progress Trade and other receivables

(159.6)

(66.3) (12.3)

(13.9) (16.1) 213.5

Trade and other payables

(3.8)

Other receivables and payables

159.2

TOTAL

23.9

76.7

EQUITY

NOTE 23

The Group’s objectives, policies and procedures in the area of capital management are in keeping with sound management principles designed to ensure that operations are well-balanced financially and to minimise the use of debt. As its surplus cash position gives it some flexibility, the Group does not use prudential ratios such as “return on equity” in its capital management. During the current year, the Group made no change in its capital management policy and objectives. Dividends 23.1 At the General Meeting of 4 June 2019, called to approve the financial statements for the year ended 31 December 2018, it was decided to pay an ordinary dividend of €4.55 per share for the year. Taking into account the interim cash dividend of €1.50 per share paid on 22 February 2019, a cash balance of €3.05 was paid on 11 June 2019. The total amount of ordinary dividends paid was accordingly €474.3 million.

As at 31 December 2019, Hermès International’s share capital consisted of 105,569,412 fully paid-up shares with a par value of €0.51 each, of which 1,361,629 treasury shares. In financial year 2019, the following treasury share movements occurred: buyback of 84,757 shares for €52.4 million, excluding movements s under the liquidity contract; sale of 1,507 shares as part of the liquidity contract; s delivery of 39,000 free shares allotted to Hermès Group employees. s It is specified that no shares are reserved for issuance under put options or agreements to sell shares. For management purposes, the Hermès Group uses the notion of “equity attributable to owners of the parent” as shown in the consolidated statement of changes in equity. More specifically, equity includes the revaluation of financial instruments as well as actuarial gains and losses, as defined in Notes 1.10 and 1.18.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

324