Hermès // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

comprehensive income” over the period during which they were recognised. Other long-term benefits The Hermès Group’s other long-term benefits include: jubilees in France: these awards provide compensation for s long-standing services; long-service awards, mainly in Japan, China and countries in South s Asia.

When benefits are funded in advance through external funds, the assets held are measured at fair value, and taken into account in the assessment of the net provision. In accordance with IAS 19 revised, rates of return on assets are determined by reference to discount rates on the obligations. In the consolidated income statement, the expense is presented under “Other income and expenses”. Changes in actuarial assumptions and experience effects give rise to actuarial gains and losses, the total of which is recorded under “Other

Retirement and other employee benefit obligations 5.3 5.3.1 INFORMATION BY TYPE OF PLAN AND GEOGRAPHICAL AREA The provision shown in the balance sheet includes post-employment defined-benefit plans and other long-term benefits:

31/12/2021

31/12/2020

In millions of euros

Defined-benefit plans Other long-term benefits

243

288

17

16

PROVISIONS AT END OF PERIOD

260

304

The present value of the obligations and the fair value of the plan assets broken down by geographical area are as follows:

31/12/2021

31/12/2020

Value 187

Breakdown

Value 227

Breakdown

5

In millions of euros

France Japan

57% 16% 28%

62% 14% 24%

52 92

51 90

Other

Present value of obligations

331

100%

368

100%

France

16 55 71

23% 77%

16 49 65

24% 76%

Other

Fair value of plan assets

100%

100%

France Japan

171

66% 20% 14%

211

70% 17% 13%

52 37

51 41

Other

PROVISIONS FOR RETIREMENT AND SIMILAR BENEFIT OBLIGATIONS

260

100%

304

100%

5.3.2 ACTUARIAL ASSUMPTIONS For 2021, the following actuarial assumptions were used for the countries to which the Hermès Group’s main commitments apply:

France

Italy

Japan

Switzerland

Discount rate

0.49% – 0.84% 1

0.84%

0.40%

0.25%

Increase in salaries

3.0%

1.8%

2.5%

2.0%

Rates according to the duration of the plans. (1)

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