HERMÈS - 2020 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

CASH AND CASH EQUIVALENTS NOTE 22 Change in net cash position 22.1 The reconciliation between the cash and cash equivalents presented on the balance sheet and the net cash position appearing in the statement of cash flows is as follows:

Exchange rate impact

31/12/2019

Cash flows

Scope impact

31/12/2020

In millions of euros

Liquidities

1,018.3 3,365.9 4,384.2

312.2

(30.0) (18.4) (48.4)

12.3

1,312.8 3,419.8 4,732.7

Marketable securities 1

66.7

5.7

Cash and cash equivalents on the balance sheet Restatement of Marked-to-Market on liquidities

378.9

18.0

-

0.6

-

-

0.6

Bank overdrafts

(12.6)

(3.8)

0.0

(0.0)

(16.4)

NET CASH POSITION FROM THE STATEMENT OF CASH FLOWS

4,371.6

375.7

(48.4)

18.0

4,716.9

Primarily invested in money market UCITS, term accounts, term deposits and other cash equivalents maturing in less than three months. (1)

The gains and losses generated through disposal of marketable securities during the financial year and recorded through profit or loss were equal to -€1.1 million in 2020 ( versus -€0.1 million in 2019). Unrealised gains or losses as at 31 December 2020 stood at -€0.4 million (compared with -€0.9 million in 2019).

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.

Change in working capital requirements 22.2

31/12/2020

31/12/2019

In millions of euros

5

Inventories and work-in-progress Trade and other receivables

(157.9)

(159.6)

38.4

(13.9) (16.1) 213.5

Trade and other payables

(23.7)

Other receivables and payables

(207.1) (350.3)

TOTAL

23.9

EQUITY

NOTE 23

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 1.11 and 1.19. 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.

As at 31 December 2020, Hermès International’s share capital consisted of 105,569,412 fully paid-up shares with a par value of €0.51 each, of which 966,793 treasury shares. In financial year 2020, the following treasury share movements occurred: buyback of 167,780 shares for €123 million, excluding movements s under the liquidity contract; sale of 2,844 shares as part of the liquidity contract; s delivery of 560,772 free shares awarded to Hermès Group s employees. It is specified that no shares are reserved for issuance under put options or agreements to sell shares.

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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