HERMÈS - 2020 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

EMPLOYEES

NOTE 27

A geographical breakdown of the workforce is as follows:

31/12/2020

31/12/2019

France

10,383

9,522 1,652 4,243

Europe (excl. France) Other geographical areas

1,938 4,279

TOTAL

16,600

15,417

The breakdown by category is as follows:

31/12/2020

31/12/2019

Production

8,020 5,861 2,719

7,053 5,828 2,536

Sales

Other (design, communication and administration)

TOTAL

16,600

15,417

Employee expenses in 2020 totalled €1,296.7 million, compared with €1,253.7 million in 2019.

POST-EMPLOYMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS

NOTE 28 Description of the plans 28.1

28.1.2 DEFINED-BENEFIT PLANS Under these plans, the employer assumes an obligation toward its employees. If these plans are not entirely funded in advance, a provision is recorded. For the Group, the main defined-benefit plans apply mainly to: departure or retirement benefits in France, Belgium, Italy, Turkey, s Greece, India, Thailand, Taiwan and Japan: these are lump sum payments calculated based on employee length of service and annual salary at the time of retirement. These obligations are partially or entirely externalised depending on the country; supplemental pension plans in France or abroad (Switzerland, s Canada).

Hermès Group employees are eligible for short-term benefits (paid leave, sick leave, profit-sharing), post-employment benefits under defined-contribution or defined-benefit plans (mainly retirement benefits and supplemental pension plans) and other long-term benefits (long-service awards). 28.1.1 DEFINED-CONTRIBUTION PLANS Under these plans, regular payments are made to outside organisations, which are responsible for their administrative and financial management. These plans release the employer from any subsequent obligation, as the outside organisation takes responsibility for paying amounts due to employees (basic social security pension plan, ARRCO/AGIRC supplemental pension plans, defined contribution pension funds).

5

< 1 year

> 1 year 275.2 275.2

2020

< 1 year

> 1 year 270.0 270.0

2019

In millions of euros

Post-employment and similar benefit obligations

28.3 28.3

303.5 303.5

18.2 18.2

288.2 288.2

TOTAL

28.1.3 OTHER LONG-TERM BENEFITS Other long-term benefits for the Group include:

long-service awards in Japan, Asia-Pacific, Australia, Switzerland and s the United Kingdom: long service in certain foreign subsidiaries is compensated by the allocation of bonuses on specific anniversary dates.

long-service awards in France: these awards provide compensation s for long-standing services. The awards are issued along with payment of a bonus, under the terms of a collective agreement, company-wide agreement or decision by the relevant company or Works Council;

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

389