HERMES_REGISTRATION_DOCUMENT_2017

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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 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 age. These obligations are partially or entirely externalised depending on the country;

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; s long-service awards in Japan, the Asia-Pacific region, Australia, Switzerland and England: long-service in certain foreign subsidiaries is compensated by the allocation of bonuses on specific anniversary dates; s a supplementary plan in France or abroad (Switzerland, Canada).

< 1 year

> 1 year

2017

< 1 year

> 1 year

2016

In millions of euros

Post-employment and similar benefit obligations

6.0 6.0

188.2 188.2

194.2 194.2

5.6 5.6

183.4 183.4

189.0 189.0

TOTAL

25.2 Actuarial assumptions

For 2017, the following actuarial assumptions were used for the countries to which the Hermès Group’s main commitments apply:

France

Italy

Switzerland

Japan

Taiwan

Rest of Asia**

62 to 69.6 years

63 to 64 years

60 to 63 years

60 to 66 years 50 to 65 years

Retirement age

62 to 65 years

Increase in salaries

3.0%

1.2%

2.0%

2.5% 3.5%-5% 3.50%-8.25%

Increase in social security ceiling

2.50%

n/a

n/a

n/a

n/a

n/a

Discounting rate

1.33%-0.86%*

1.3%

0.7%

0.5%

0.90% 0.2%-7.25%

n/a: not applicable. * Rates according to the duration of the plans. ** India, Malaysia, Thailand

2016 assumptions:

Other Asian countries

France

Italy

Switzerland

Japan

Taiwan

62 to 69.6 years

63 to 64 years

60 to 66 years 50 to 65 years

Retirement age

62 to 65 years

60 years

Increase in salaries

3.0%

1.2%

2.0%

2.5% 3.5%-5% 3.50%-8.25%

Increase in social security ceiling

2.50%

n/a

n/a

n/a

n/a

n/a

Discounting rate

1.21%-0.95%*

1.2%

0.4%

0.4%

1.02% 0.3%-7.05%

n/a: not applicable. * Rates according to the duration of the plans

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL