Hermès // 2021 Universal Registration Document

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

HEADCOUNT, PERSONNEL COSTS AND EMPLOYEE BENEFITS

NOTE 5 Headcount by geographical area and sector 5.1

Asia-Pacific (excl. Japan) 15%

Americas 7%

Japan 5%

Sales 36%

Production 48%

Europe (excl. France) 11%

France 62%

Support 16%

Production

Sales

Support

Total

31/12/2021

% 31/12/2020 31/12/2021

% 31/12/2020 31/12/2021

% 31/12/2020 31/12/2021

% 31/12/2020

France

7,633

90% 7,162

1,376

22% 1,356

1,960

70%

1,865

10,969

62% 10,383

Asia-Pacific (excl. Japan)

74

1% 8% 1% 0%

83

2,287

36% 1,977

314 254 213

11%

315 261 199

2,675 1,960 1,149

15% 11%

2,375 1,938 1,077

Europe (excl. France)

711

699

995 868 766

16% 14% 12%

978 802 748

9% 8% 3%

Americas

68

76

7% 5%

Japan TOTAL

0

0

76

79

842

827

8,486 100% 8,020

6,292 100% 5,861

2,817 100%

2,719

17,595 100% 16,600

Personnel costs 5.2 Employee expenses in 2021 totalled €1,489 million, compared with €1,297 million in 2020.

Post-employment and other employee benefit obligations 5.3

General and accounting principles Post-employment benefit plans Defined-contribution plans

supplemental pension plans in France or abroad, notably in s Switzerland. The Group’s obligations are calculated annually by an independent actuary using the projected unit credit method. This method is based on actuarial assumptions and takes into account the employee’s probable future length of service, future salary and life expectancy as well as staff turnover and the inflation rate. Actuarial assumptions are reviewed annually. The present value of the obligation is calculated by applying an appropriate discount rate for each country where the obligations are located. 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.

Under these plans, regular payments are made to outside organisations, which are responsible for their administrative and financial management. The Group is not committed beyond the contributions paid and these are therefore recognised as expenses by destination in the various lines of the consolidated income statement.

Defined-benefit plans The Hermès Group’s defined-benefit plans include:

benefits in the event of departure or end of career, mainly in s France, Japan and Italy. These obligations are partially or entirely externalised depending on the country;

374 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL