HERMÈS - 2020 Universal registration document

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25.2.1 NET CURRENCY POSITION

At 31 December 2020

Monetary assets/ (liabilities) 1

Future cash flows

Net position before hedging

Net position after hedging Hedging ratio

Derivatives 2

In millions of euros

Chinese yuan

295.3 50.6 22.1 73.8 17.2 48.8 36.6 18.3 15.7 (17.9)

665.0 410.1 322.4 246.3 262.6 129.1

960.3 460.7 344.5 320.1 244.7 146.3 101.3

(943.1) (469.1) (347.5) (326.1) (245.8) (150.0)

17.2 (8.4) (3.0) (6.0) (1.1) (3.7) 12.0 (4.0)

98%

US dollar

102% 101% 102% 100% 103% 106% 100% 100% 88%

Japanese yen

Hong Kong dollar Singapore dollar Pound sterling Australian dollar

52.4 35.7 51.6 58.2 39.8 90.3

(89.3) (76.4) (69.8) (74.1) (40.5)

Swiss franc

72.4 69.9 73.8 42.2

Canadian dollar

0.1

(0.2)

Euro 3

Thai baht

2.4

1.8 2.2 6.9

96% 98%

Other currencies

33.0

123.3

(121.1)

SUMMARY 100% Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three (1) months from the date of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities. Purchase/(Sale). (2) Euro foreign exchange risk for subsidiaries having a different functional currency. Exceptionally, this may include internal transactions in euros, excluding sales of (3) goods with subsidiaries that have a different functional currency. 595.9 2,363.5 2,959.5 (2,952.8)

Monetary assets/ (liabilities) 1

Future cash flows

Net position before hedging

Net position after hedging Hedging ratio

Derivatives 2

US dollar

5.9

647.2 491.9 427.3 395.5 344.6

653.1 652.2 448.4 416.7 374.1

(683.2) (630.2) (450.1) (418.0) (366.7)

(30.1)

105%

Chinese yuan

160.3

22.0 (1.6) (1.3)

97%

Singapore dollar Japanese yen Hong Kong dollar

21.1 21.3 29.5

100% 100%

7.4 2.0

98%

Euro 3

(409.1)

93.6

(315.6)

317.6

101% 100%

Pound sterling Australian dollar

(13.7)

130.9

117.2 107.8

(117.7) (107.1)

(0.5)

62.5

45.3 59.1 48.5 41.2 77.5

0.8

99%

Swiss franc

3.7 7.9

62.9 56.4 51.5

(66.1) (55.8) (50.6)

(3.3)

105%

Canadian dollar

0.6 0.8 6.1 2.9

99% 98% 94%

Thai baht

10.3 29.4

Other currencies

107.0

(100.8)

SUMMARY 100% Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three (1) months from the date of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities. Purchase/(Sale). (2) Euro foreign exchange risk for subsidiaries having a different functional currency. Exceptionally, this may include internal transactions in euros, excluding sales of (3) goods with subsidiaries that have a different functional currency. (70.9) 2,802.6 2,731.7 (2,728.8)

25.2.2 SENSITIVITY TO EXCHANGE RATE FLUCTUATIONS The sensitivity of equity to foreign exchange risk is analysed for the cash flow hedge reserve. The impact on equity corresponds to the change in the market value of derivatives qualifying as cash flow hedges relative to the current variance in exchange rates, ceteris paribus .

A 10% appreciation in the currencies to which the Group is exposed at the closing date would result in a -€204.2 million decrease in equity (before tax) in the fair value reserve. A 10% depreciation would have an impact of +€200.0 million (before tax). Moreover, a 10% appreciation in the currencies to which the Group is exposed would lead to an impact of +€0.8 million on net income at the closing date. A depreciation by the same magnitude would have an impact of -€0.6 million.

382 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL