HERMÈS - 2018 Registration document

Parent company financial statements

Notes to the financial statements

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.

18.1 Net currency position

Monetary assets/

Net position before hedging

Net position after hedging

Sensitivity of 10%

(liabilities) Future cash flows

Derivatives 1

Hedging ratio

In millions of euros

As at 31/12/2018 US dollar

(281.5)

15.2 66.3 65.6

(266.3)

262.9 (73.9) (69.6)

(3.3) (0.7) (2.9) (0.8) (2.4) (3.0) (0.0) (0.9) (0.3) (0.1) (0.4) (0.1) 0.1

99%

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

Yuan

7.0 1.1

73.3 66.7

101% 104%

Yen

Pound sterling

(17.0)

2.3 7.6 6.6 0.0 1.1 3.7 1.2 0.3 0.2 0.2 0.1 -

(14.7)

13.9

94%

Swiss franc

2.2 2.5 5.9 3.7 0.7 3.4 0.5 0.2 0.1 0.1 0.2 0.2 0.1

9.7 9.2 6.0 4.8 4.4 3.4 1.7 0.5 0.3 0.3 0.2 0.2 0.1 0.0

(12.2) (12.2)

125% 133% 100% 120% 108% 106% 182% 128% 98%

Singapore dollar

Czech crown

(6.0) (4.7) (5.3) (3.6) (1.8) (0.9) (0.4)

Australian dollar Hong Kong dollar

Brazilian real

Canadian dollar

Rouble

Mexican peso

Thai baht Turkish lira

-

0.3 0.1 0.2 0.0

-

0.0 0.0 0.0 0.0

(0.1)

51%

Argentine peso Czech crown Indian rupee Swedish krona Emirati dirham

-

-

-

0.1 0.0

(0.1) (0.0)

65%

-

(0.0) (0.0)

100%

(0.0) (0.0)

(0.0)

- -

(0.0)

- -

- -

0.0

0.0

0.0

0.0

Summary

(270.7)

170.5

(100.2)

86.0

(14.2)

86%

(1.6)

6

As at 31/12/2017 US dollar

(163.3)

15.8

(147.5) (78.0)

141.6

(5.9) (1.1) (0.9) (2.4) (2.3) (2.2) (0.3)

96% 99%

(0.7) (0.1) (0.1) (0.3) (0.3) (0.2) (0.0)

Pound sterling

(81.8)

3.8 7.9 9.6 8.9 8.5 4.8 0.0 1.7 1.6 0.8 0.3 0.2 0.1 0.1 0.1 -

76.9

Yuan

4.9 1.4 1.3 1.6 1.2 4.1 2.6 0.5 0.4 0.1 0.1 0.1 0.0

12.8 11.0 10.2 10.1

(13.7) (13.4) (12.5) (12.4)

107% 122% 122% 122% 104%

Yen

Singapore dollar

Swiss franc

Hong Kong dollar Danish krone Brazilian real Canadian dollar Australian dollar

6.0 4.1 2.6 2.1 2.0 0.9 0.3 0.3 0.1 0.1 0.0

(6.2) (4.0) (2.7) (2.1) (1.9) (0.8) (0.4) (0.0) (0.1)

0.1

99%

0.0

(0.1) (0.0)

105% 100%

(0.0) (0.0)

0.2 0.0

92% 98%

0.0 0.0

Rouble

Mexican peso

(0.1)

121%

(0.0)

Thai baht

0.3 0.0 0.5

0%

0.0 0.0 0.1

Czech crown Indian rupee Turkish lira Emirati dirham

74%

-

0.4

(729)%

(0.0) (0.0)

(0.1)

(0.1) (0.0)

253%

(0.0) (0.0) (1.6)

-

(0.0)

-

-

Summary

(226.8)

64.1

(162.8)

148.4

(14.4)

91%

(1) Purchase/(Sale).

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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