HERMÈS - 2020 Universal registration document

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Actuarial assumptions 28.2 For 2020, the following actuarial assumptions were used for the countries to which the Hermès Group’s main commitments apply:

Other Asia 2

France

Italy

Switzerland

Japan

Taiwan

Discount rate

0.56% -0.31% 1

0.56%

0.00%

0.40%

0.40% 2.20% -6.60% 3.5% 5.00% -8.00%

Increase in salaries

3.0%

1.0%

2.0%

2.5%

Rates according to the duration of the plans. (1) India, Malaysia, Thailand. (2)

2019 Assumptions:

Other Asia 2 1.55% -7%

France

Italy

Switzerland

Japan

Taiwan 0.60%

Discount rate

0.53% -0.26% 1

0.53%

(0.05)%

0.30%

Increase in salaries

3.0% -4.0%

1.5%

2.0%

2.5%

3.5% 5.50% -8.50%

Rates according to the duration of the plans. (1) India, Malaysia, Thailand. (2)

The discount rates applied are obtained by reference to the yield on investment grade (AA) corporate bonds with the same maturity as that of the obligation. In accordance with IAS 19 revised, rates of return on assets are determined by reference to discount rates on the obligations. A 0.50 point increase or decrease in the discount rate would lead to a €23.7 million decrease or a €21.3 million increase in the Hermès

Group’s pension provision respectively, with the balancing entry recognised in equity. As at 31 December 2020, contributions paid for the coming year (including contributions paid to a fund and benefits paid directly by the employer) totalled €29.3 million, compared with €7.9 million in 2019.

Change in provisions recognised in the balance sheet 28.3

Other long-term benefits

Other long-term benefits

Post-employment plans

Post-employment plans

2020

2019

In millions of euros

Provisions as at 1 January Foreign currency adjustments

271.2

17.1 (0.4) (0.2) (0.9)

288.2

189.0

13.9

202.9

(1.9) 17.8 (3.3)

(2.3) 17.6 (4.2)

2.3

0.1 4.1

2.4

Cost according to the income statement

36.3 (4.8)

40.4 (5.9)

Benefits/contributions paid

(1.1)

Actuarial gains and losses recognised in other comprehensive income

2.3 2.0

-

2.3 1.9

48.0

- -

48.0

Change in scope

(0.1) (0.0) 15.6

-

-

Other

(0.1)

(0.1)

0.4

0.1

0.5

PROVISIONS AT END OF PERIOD

287.9

303.5

271.2

17.1

288.2

390 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL