HERMÈS - 2020 Universal registration document

6

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

RELATED-PARTY TRANSACTIONS

NOTE 17

trademark license agreements: Hermès International receives brand s royalties from Hermès Sellier (€166.2 million), Comptoir Nouveau de la Parfumerie (€14.6 million), La Montre Hermès (€5.5 million) and Faubourg Italia (€0.2 million); SIFAH: SIFAH invoiced leases for the premises located at s 26/28/30/32, rue du Faubourg-Saint-Honoré for €5.8 million; Studio des Fleurs: Studio des Fleurs offers photography and s retouching services for packshots of e-commerce products. The amounts paid in 2020 came to €3.0 million; MOCE: MOCE (“EatMe” brand) provides fast food services on the s Hermès International site located at 12, rue d’Anjou in Paris. The amounts paid in 2020 came to €0.03 million; RDAI studio: the RDAI architecture studio is involved in the design and s interior layout work of the headquarters, as well as the assignment consisting of design work to apply the architectural concept to all Hermès stores. The amounts paid in 2020 came to €0.1 million.

Transactions with companies accounted for by the equity method were not material by comparison with the overall activities of Hermès International during financial year 2020. The companies mentioned below are considered related parties insofar as certain members of management of the Company or certain members of the Supervisory Board or Executive Management Board of Émile Hermès SARL have personal interests therein and exercise significant influence. Relationships with related parties are summarised as follows: Émile Hermès SARL, Active Partner: a société à responsabilité limitée s à capital variable (limited company with variable capital) whose partners are the direct descendants of Mr Émile-Maurice Hermès and his wife. The Executive Chairman of the Company is Mr Henri-Louis Bauer and the Company has an Executive Management Board. Each year, Hermès International pays 0.67% of the net income of the financial year to the Active Partner. In addition, Hermès International charges Émile Hermès SARL for certain expenses incurred. Hermès International charged back €0.6 million in this respect in 2020 (including €0.2 million in respect of services provided);

EXPOSURE TO MARKET RISKS

NOTE 18

Most of the Company’s foreign exchange risk exposure comes from the sales of its production subsidiaries denominated in foreign currencies. These risks are generally fully hedged, based on highly probable future cash flows, using forward currency sales or options that are eligible for hedge accounting.

Net currency position 18.1

Net position before hedging

Monetary assets/ (liabilities)

Future cash flows

Net position after hedging Hedging ratio

Sensitivity of 10%

Derivatives 1

In millions of euros

As at 31/12/2020 Australian dollar

44.8 36.0 38.0

2.0 7.6 4.2 6.7

46.8 43.6 42.2

(47.7) (43.8) (48.1)

(0.9) (0.2) (5.9) (0.1)

102% 100% 114% 100%

(0.1) (0.0) (0.7) (0.0)

Swiss franc

Hong Kong dollar Singapore dollar

(37.0)

(30.4)

30.3

Chinese yuan Japanese yen

14.9

11.6

26.5

(25.5)

0.9 0.2

96% 98% 75% 98%

0.1 0.0

0.4

9.2

9.6

(9.4)

US dollar

(18.7)

15.4

(3.3) 48.9

2.5

(0.8)

(0.1)

Other

44.7

4.2

(47.7)

1.2

0.1

SUMMARY

123.1

60.9

183.9

(189.4)

(5.5)

103%

(0.6)

As at 31/12/2019 Singapore dollar

1.8 7.3 0.2 0.3

107.0

108.8 101.5

(108.6) (103.8)

0.2

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

0.0

Chinese yuan Japanese yen

94.2 79.8 73.2

(2.4) (2.2) (0.6) (3.8) (0.2)

(0.3) (0.2) (0.1) (0.4) (0.0)

80.0 73.5 64.5 63.2 18.7

(82.2) (74.0) (68.3) (63.4) (18.5)

Hong Kong dollar

US dollar

(61.9)

126.3

Australian dollar Other currencies

60.1 (7.1)

3.1

25.8

0.2

99%

0.0

SUMMARY

0.7

509.4

510.1

(518.8)

(8.7)

102%

(1.0)

Purchase/(Sale). (1)

416 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL