HERMES_REGISTRATION_DOCUMENT_2017

PARENT COMPANY FINANCIAL STATEMENTS

NOTE TO THE FINANCIAL STATEMENTS

EXPOSURE TO MARKET RISKS AND FINANCIAL COMMITMENTS

NOTE 15

15.1 Foreign exchange risk 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.

15.1.1. Net currency position

Monetary assets/ (liabilities)

Net position after hedging

Future cash flows

Net position before hedging

Hedging ratio 10% sensitivity

Derivatives 1

In millions of euros

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)

-

-

6

Summary

(226.8)

64.1

(162.8)

148.4

(14.4)

91%

As at 31/12/2016 Hong Kong dollar

(103.2)

3.4

(99.8) (78.9) (27.5)

100.1

0.4

100% 100% 101%

0.0

US dollar

(90.7) (29.9)

11.9

78.8 27.8 (6.6) (8.1)

(0.1)

(0.0)

Pound sterling

2.5 6.4 4.0 7.9 5.6 0.8 1.7 0.4 0.2 0.1

0.4 2.3 0.5

0.0 0.3 0.1

Yen

2.4 4.6 0.6 1.6 0.3 0.1 0.1 0.0 0.1 0.0

8.8 8.6 8.5 7.3 1.1 0.4 0.3 0.1 0.1 0.0

74% 94%

Yuan

Swiss franc

(10.8)

(2.3) (0.4)

127% 105%

(0.3) (0.0)

Singapore dollar Canadian dollar Australian dollar Mexican peso Thai baht Turkish lira Czech crown Emirati dirham Rouble

(7.7) (0.9)

0.3

77% 42%

0.0

(2.4)

(0.7)

0.3

(0.4) (0.2) (0.1)

(0.0) (0.0) (0.0)

(0.6) (0.5)

144% 140%

0.0

0.1 0.1

(0)%

0.0 0.0

-

(0.0) (0.0)

0%

0.0

(0.0) (0.0)

100%

(0.0) (0.0)

(0.0)

-

(0.0)

-

-

Summary

(216.4)

45.0

(171.4)

171.9

0.5

100%

0.1

(1) Purchase/(Sale).

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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