HERMÈS - 2020 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Interest rate and liquidity risk 25.3 The Hermès Group’s policy is to maintain a positive treasury position and to have cash available in order to be able to finance its growth strategy independently. The Group’s treasury surpluses and needs are directly managed or overseen by Hermès International’s treasury department in accordance with a conservative policy designed to avoid the risk of capital loss and to maintain a satisfactory liquidity position. Cash surpluses are invested mainly in money-market mutual funds and cash equivalents with a sensitivity of less than 0.5% and a recommended investment period of less than three months. The items recognised by the Group as “Cash and cash equivalents” strictly correspond with the criteria used in the AMF position, as updated in 2018. The investments are regularly reviewed in accordance with

Group procedures and in strict compliance with the qualification criteria as defined by IAS 7 Cash flow statement , and the AMF recommendations applicable at the closing date. As at 31 December 2020, these analyses have not led to changes in the previously adopted accounting classification. The Group may use financial instruments such as swaps and interest rate derivatives to hedge part of its payables and receivables against interest rate fluctuations. The risk control and management procedures are identical to those applied to foreign exchange transactions. The following interest rate risks involve only items in the net cash position. Moreover, the interest rate risks are not material as concerns the financial assets and liabilities not included in the net cash position.

As at 31/12/2020

< 1 year 4,748.3 3,484.3

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros Financial assets

180.0 180.0

- - - - - - - - - - -

4,928.3 1,717.5 3,210.8 3,664.4 1,239.3 2,425.1

Euro

US dollar

473.0 449.2

-

473.0 449.2

187.7

285.2 432.0

Chinese yuan

-

17.2 53.0 43.1

Singapore dollar Hong Kong dollar Other currencies

55.5 43.1

- - -

55.5 43.1

2.5

-

243.2

243.2

177.2

66.0

Financial liabilities 1

24.5 15.8

0.2 0.2

24.7 16.1

16.5 15.8

8.2 0.3 7.9

Euro

5

Other currencies 2

8.7

-

8.7

0.8

Restated net cash position

4,723.8

179.8

4,903.5 1,701.0 3,202.6

As at 31/12/2020

< 1 year 4,748.3 4,732.7

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros Financial assets

180.0

- -

4,928.3 1,717.5 3,210.8 4,732.7 1,521.9 3,210.8

Cash and cash equivalents

-

Restatement of Marked-to-Market on liquidities Cash investments with maturity at outset of over 3 months

0.6

-

-

0.6

0.6

-

15.0 24.5

180.0

-

195.0

195.0

-

Financial liabilities 1

0.2 0.2

- - - -

24.7

16.5

8.2 8.2

Medium and long-term financial liabilities

8.1

8.3

0.1

Bank overdrafts

16.4

-

16.4

16.4

-

Restated net cash position

4,723.8

179.8

4,903.5 1,701.0 3,202.6

Excluding commitments to buy-out non-controlling interests (€18.2 million as at 31 December 2020). (1) Mainly consists of a short-term fixed rate loan contracted by Hermès Japan and bank overdrafts of foreign subsidiaries. (2)

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

385