HERMÈS - 2018 Registration document

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Consolidated financial statements Notes to the consolidated financial statements

As at 31 December 2017

Monetary assets/

Net position before hedging

Net position after hedging

(liabilities) 1 Future cash flows

Derivatives 2

Hedging ratio

In millions of euros

Yuan

120.7

248.6 228.1 241.1 376.9 189.8

369.3 280.2 263.4 258.9 208.8

(336.9) (273.4) (266.2) (269.0) (222.6)

32.4

91% 98%

Singapore dollar

52.1 22.3

6.8

Yen

(2.8)

101% 104% 107% 112%

US dollar

(118.1)

(10.1) (13.8)

Hong Kong dollar

19.0

4.9 7.5 4.7 6.4 3.0 6.3 7.2 5.9 0.1 1.8 0.7 0.0 0.8 0.1 - 1.7

63.5 36.8 37.6 27.4

68.4 44.4 42.3 33.8 31.1 26.9 20.0 14.8 12.5 11.4 10.9

(76.4) (42.1) (46.5) (28.5) (37.2) (26.9) (16.9) (14.9) (10.0) (11.4) (10.5)

(8.0)

Euro 3

Canadian dollar

2.3

95%

Swiss franc

(4.2)

110%

Australian dollar Pound sterling

5.3

84%

(71.3)

102.4

(6.2) (0.0)

120% 100%

Thai baht

23.9 13.7

Rouble

3.1

85%

Danish krone Brazilian real

7.7 6.5

(0.1)

101%

2.5

80%

Malaysian ringgit

11.4

-

100%

Mexican peso

9.2

0.4

97% 99%

South Korean won Turkish lira Indian rupee Czech crown Emirati dirham Swedish krona Argentine peso Norwegian krone New Polish zloty

(0.1)

(10.5)

(10.6)

10.5 (7.6) (4.6) (5.2)

(0.1) (0.5)

7.0 5.0 4.5

7.1 6.7 5.2 1.3 0.8 0.5

108%

2.1

69%

(0.0) (0.3)

100%

(0.8)

(4.1)

(4.9)

4.7

95% 97%

1.3

(1.3)

0.0 0.8 0.1

-

-

0.4

(0.4)

83%

(0.1) 74.8

-

(0.1)

-

(0.1)

SUMMARY

1,628.2

1,703.1

(1,693.4)

9.6

100%

(1) 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 months from the date of acquisition. Monetary liabilities are comprised of financial liabilities as well as operating liabilities and various liabilities. (2) Purchase/(Sale). (3) Euro foreign exchange risk for subsidiaries having a different functional currency.

A10%appreciation in the currencies towhich theGroup is exposedat the closing date would have resulted in a -€182.1 million decrease in equity (before tax) in the fair value reserve. An impairment of 10% would have an impact of +€159.8 million (before tax). Moreover, a 10% appreciation in the currencies to which the Group is exposed would have led to an impact of-€1.2million on net income at the closing date. A 10% depreciation would have led to an impact of €1.0 million.

23.2.2 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 cash flow hedging derivatives relative to the current variance in exchange rates, ceteris paribus.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL