Hermès // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ALTERNATIVE PERFORMANCE MEASURES

NOTE 2

This note aims to present the main alternative performance measures (“APM”) followed by the Group Management, and their reconciliation, where appropriate, with the aggregates of the IFRS consolidated financial statements.

Revenue growth at constant exchange rates 2.1 Revenue growth at constant exchange rates: calculated by applying, for each currency, the average exchange rates of the previous period to the s revenue for the period.

Change at current exchange rates

Change at constant

2021 at current rates

2021 at constant rates

2020

exchange rates Currency effect

Revenue in millions of euros

8,982

9,060

6,389

2,592

2,671

(78)

Change in %

41%

42%

(1)%

Recurring operating income 2.2 Recurring operating income: operating income exclusive of non-recurring items with a significant impact that may affect understanding of the s Group’s economic performance.

Net cash position and restated net cash position 2.3 Net cash position: includes cash and cash equivalents presented s under balance sheet assets, less bank overdrafts which appear under short-term borrowings and financial liabilities on the liabilities side. Lease liabilities recognised in accordance with IFRS 16 are excluded from net cash position.

Restated net cash position: corresponds to net cash position plus s cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities.

5

Borrowings and financial liabilities on the balance sheet break down as follows:

31/12/2021

31/12/2020

In millions of euros Bank overdrafts

1 0

16

Other financial liabilities

8

Commitments to buy out minority interests

24 25

18 43

BORROWINGS AND FINANCIAL LIABILITIES ON THE BALANCE SHEET

The reconciliation of the net cash position and restated net cash position indicators with the consolidated balance sheet is presented below:

31/12/2021

31/12/2020

In millions of euros

Cash and cash equivalents

6,696

4,733

Restatement of mark-to-market on liquidities

-

1

Bank overdrafts

(1)

(16)

NET CASH POSITION

6,695

4,717

Cash investments with maturity at outset of over 3 months

375

195

Financial liabilities

(0)

(8)

RESTATED NET CASH POSITION

7,070

4,904

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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