HERMES_REGISTRATION_DOCUMENT_2017

6

PARENT COMPANY FINANCIAL STATEMENTS

NOTE TO THE FINANCIAL STATEMENTS

31/12/2017

31/12/2016

In millions of euros

Financial debts

Under 1 year

6.5

2.6

s

From one to five years

18.0

19.7

s

Operating liabilities

Under 1 year

57.1

53.1

s

s From one to five years Miscellaneous liabilities

4.4

1.4

Under 1 year

425.9

338.2

s

From one to five years

9.7

5.0

s

NET CASH POSITION

NOTE 13

2017

2016

Change

Marketable securities Cash at bank and in hand

1,640.0

1,147.3

492.7 (97.6)

479.9

577.5

Bank overdrafts

(1.2)

(0.5)

(0.7)

NET CASH POSITION

2,118.7

1,724.4

394.3

Treasury shares are excluded from the marketable securities presented in net cash.

RELATED-PARTY TRANSACTIONS

NOTE 14

Transactions with companies accounted for by the equity method were not material by comparisonwith the overall business activities of Hermès International in 2017. The companies mentioned below are considered related parties insofar as certainmembers ofmanagement of theCompany or certainmembers of the Supervisory Board have personal interests therein and exercise significant influence. Relationships with related parties are summarised as follows: s Émile Hermès SARL, Active Partner: Émile Hermès SARL is a société à responsabilité limitée à capital variable (limited com- pany with variable capital). Its partners are the direct descendants of Mr Émile-Maurice Hermès and his wife. Émile Hermès SARL’s Executive Chairman is Mr Henri-Louis Bauer.

s Trademark license agreements: Hermès International receives brand royalties fromHermès Sellier (€108.3million), Comptoir Nouveau de la Parfumerie (€13.3 million), La Montre Hermès (€3.5 million) and Faubourg Italia (€0.2 million). The Company is governed by an Executive Management Board. Each year, Hermès International pays 0.67% of the distributable profits to the Active Partner. In addition, Hermès International charges ÉmileHermès SARL for cer- tain expenses incurred. Hermès International charged back €0.2mil- lion in this respect in 2017 and in 2016. s RDAI: architectural firm RDAI is involved in the design and interior layout work of the head office, as well as the assignment consisting of designwork to apply the architectural concept to all Hermès stores. The amounts paid in 2017 came to €0.2 million.

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL