Hermès // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Name or other means of identification of the reporting entity

Hermès International

Explanation of changes in the name or other means of identification of the reporting entity since the end of the previous reporting period n/a Domicile of the entity

24, rue du Faubourg Saint-Honoré, 75008 Paris (France) Société en commandite par actions (partnership limited by shares)

Legal form of the entity Country of incorporation

France

Address of the entity’s registered office

24, rue du Faubourg Saint-Honoré, 75008 Paris (France) 24, rue du Faubourg Saint-Honoré, 75008 Paris (France)

Principal place of business

Description of the nature of the entity’s operations and its principal activities

Hermès is an independent, family-owned craftsmanship House that manufactures and distributes its objects through a dynamic network of stores around the world.

Name of parent entity

Hermès International Hermès International

Name of ultimate parent of the Group

ACCOUNTING PRINCIPLES AND POLICIES

NOTE 1 Basis of preparation 1.1

obtain the capped rights prior to retirement age. Following this decision, the Hermès Group changed the calculation method for its retirement benefit plans (see Note 5.3). The impact of this change, which is not significant, consists of a reduction in the commitment of €45 million. It was posted through equity for €34 million net of deferred tax at 1 January 2021. As part of the second phase of the benchmark interest rate reform, the IASB published amendments to IFRS 9 and IFRS 7 standards relating to financial instruments, applicable from 1 January 2021. Due to the absence of borrowings and interest rate hedging instruments within the Group at 31 December 2021, the application of these amendments has no impact on the consolidated financial statements. The Group is currently studying the impacts and practical consequences of the IFRIC’s final decision taken in the first half of 2021 concerning the recognition of the costs of configuration and customisation of software made available in the cloud as part of a SaaS (Software as a service) contract. A qualitative and quantitative review of the IT tools liable to be affected is under way, in order to assess the impacts of the interpretation. Use of estimates 1.3 The preparation of the consolidated financial statements under IFRS sometimes requires the Group to make estimates in valuing assets and liabilities and income and expenses recognised during the financial year. The Group bases these estimates on historical experience and on a variety of assumptions, which it deems to be the most reasonable and probable in the current economic environment.

The consolidated financial statements of Hermès International and its subsidiaries (the “Group”), published for financial year 2021, are prepared in accordance with IFRS, the International Financial Reporting Standards, as adopted in the European Union as at 31 December 2021. The Group’s consolidated financial statements were approved by the Executive Management on 17 February 2022 and will be submitted for approval to the General Meeting on 20 April 2022. The Audit and Risk Committee, which met on 16 February 2022, also examined the consolidated financial statements. The consolidated financial statements and notes to the consolidated financial statements are presented in euros. Unless otherwise stated, the values shown in the tables are expressed in millions of euros and rounded to the nearest million. As a result, in certain cases, the effects of rounding up/down can lead to a non-significant difference in the totals or changes. In addition, the ratios and differences are calculated on the basis of the underlying amounts and not on the basis of rounded amounts.

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New accounting principles applicable 1.2 to the Hermès Group

The IAS Board has validated the April 2021 IFRIC decision relating to IAS 19, which modifies the calculation of the obligations relating to certain defined-benefit plans. The new calculation methodology consists in no longer spreading the acquisition of rights over the entire career of the employee/beneficiary in the plan, but over the period necessary to

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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