HERMES_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

More specifically, for pension plans in Switzerland, a 0.50 point increase or decrease in the applied interest rate would lead to a €1.0 million increase or a €1.0 million decrease in the pension provision, with the balancing entry recognised in equity. As at 31 December 2017, contributions paid for the coming year (including contributions paid to a fund and benefits paid directly by the employer) totalled €5.8 million, compared with €5.8 million in 2016.

The discount rates applied are obtained by reference to the yield on investment grade (AA) corporate bonds with the same maturity as that of the obligation. In accordance with IAS 19 revised, rates of return on assets are determined by reference to discount rates on the obligations. A 0.50 point increase or decrease in the discount rate would lead to a €16.6 million decrease or a €14.9 million increase in Hermès Group’s pension provision respectively, with the balancing entry recognised in equity.

25.3 Change in provisions recognised in the statement of financial position

Post employment plans

Other long-term benefits

Post-employment plans

Other long-term benefits

2017

2016

In millions of euros

Provisions as at 1st January Foreign currency adjustments

176.0

13.0 (0.4)

189.0

149.0

10.8

159.8

(5.0) 17.7 (4.7) (3.4)

(5.4) 19.8 (5.8) (3.4)

2.1

0.1 2.9

2.2

Cost according to statement of profit or loss

2.1

16.2 (4.1) 14.4

19.1 (4.8) 14.4

Benefits/contributions paid Actuarial gains and losses

(1.1)

(0.7)

- -

-

Change in scope

- -

-

0.2

0.0

0.2

Other

(0.1) 13.5

(0.1)

(1.8)

(0.1) 13.0

(1.9)

Provisions as at 31 December

180.7

194.2

176.0

189.0

25.3.1 Reconciliation of the value of post-employment and other employee benefit commitments

5

Post employment plans

Other long-term benefits

Post employment plans

Other long-term benefits

2017

2016

In millions of euros

Present value of obligations at 1st January

250.3

13.0 (0.4)

263.3

219.9

10.8

230.7

Foreign currency adjustments

(8.5) 15.3

(8.9) 16.6

2.5

0.1 1.2 0.2

2.6

Service cost Interest cost Benefits paid

1.3 0.2

14.5

15.7

2.0

2.2

2.9

3.1

(15.2)

(0.8)

(16.0)

(3.9)

(0.7)

(4.6)

Employee contributions

1.6 2.8

-

1.6 3.1

1.7 2.0

-

1.7 2.2

Experience gains and losses

0.3

0.2

Actuarial gains and losses from demographic assumptions Actuarial gains and losses from financial assumptions

(1.8)

(0.0)

(1.8)

(2.6)

0.0

(2.6)

(4.5)

(0.3)

(4.8)

15.6 (0.5)

0.4 0.8 0.0

16.0

Plan changes

0.2

0.6 0.0

0.8 0.0

0.3 0.2

Change in scope

-

0.2

Other

0.2

(0.3) 13.6

(0.1)

(2.0)

-

(2.0)

Present value of obligations as at 31 December

242.4

256.0

250.3

13.0

263.3

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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