HERMÈS - 2018 Registration document

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Consolidated financial statements Notes to the consolidated financial statements

EMPLOYEES

NOTE 25

A geographical breakdown of the workforce is as follows:

31/12/2018

31/12/2017

France

8,846 1,510 3,928

8,319 1,421 3,743

Europe (excl. France)

Other geographical areas

TOTAL

14, 284

13,483

The breakdown by category is as follows:

31/12/2018

31/12/2017

Production

6,572 5,440 2,272

6,249 5,130 2,104

Sales

Other (design, communication and administration)

TOTAL

14, 284

13,483

Employee expenses in 2018 totalled €1,126.3 million, compared with €1,050.1 million in 2017.

POST-EMPLOYMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS

NOTE 26

26.1 Description of plans HermèsGroup employees are eligible for short-termbenefits (paid leave, sick leave, profit-sharing), long-term benefits (long-service awards) and post-employment benefits under defined contribution/defined benefit plans (mainly retirement benefits, and supplemental pension plans). Post-employment benefits are awarded either through defined contribu- tion plans or through defined-benefit plans. 26.1.1 Defined contribution plans Under these plans, regular payments aremade to outside organisations, which are responsible for their administrative and financial manage- ment. These plans release the employer fromany subsequent obligation, as the outside organisation takes responsibility for paying amounts due to employees (basic social security old-age plan, ARRCO/AGIRC supple- mental pension plans, defined contribution pension funds). 26.1.2 Defined benefit plans Under these plans, the employer assumes an obligation vis-à-vis its employees. If these plans are not entirely funded in advance, a provision is recorded.

Post-employment and similar benefit obligations (Defined Benefit Obligations or DBOs) are measured using the projected credit unit method, based on actuarial assumptions that take into consideration specific conditions, primarily macroeconomic conditions, in the different countries in which the Group operates. For post-employment plans, changes to actuarial assumptions and experience effects give rise to actuarial gains and losses which are all recorded in equity for the period in which they are recognised. For the Group, the main defined-benefit plans apply mainly to: s s departure or retirement benefits in France, Italy, Turkey, Greece, India, Thailand, Taiwan and Japan: these are calculated based on employee length of service and annual salary at the time of retire- ment. These obligations are partially or entirely externalised depen- ding on the country; s s long-service awards in France: these are awards for long-standing service in France: these awards provide compensation for long-stan- ding 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;

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL