Hermès // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7.3.2 LEASE LIABILITIES The maturities of the lease liabilities are as follows:

> 5 years

< 1 year

1 to 5 years

€1,777M (31/12/2020: €1,643M) TOTAL 31/12/2021

€248M

€843M

€687M

< 1 year

1 to 5 years

> 5 years

31/12/2021

31/12/2020

In millions of euros

TOTAL LEASE LIABILITIES

248

843

687

1,777

1,643

The breakdown of changes in liabilities over the financial year is as follows:

31/12/2021

31/12/2020

In millions of euros

Lease liabilities as at 1 January

1,643

1,092

Implementation of new leases and revisions Expiry and early termination of leases

269

893 (48)

(8)

Repayments

(212)

(199)

Exchange rate impact

91 (5)

(84) (10)

Other movements and reclassifications LEASE LIABILITIES AS AT 31 DECEMBER

1,777

1,643

At the end of December 2021, the rents resulting from non-capitalised leases correspond to: store rents, for which variable payments amounted to €376 million for s the financial year (compared to €260 million for financial year 2020);

exempted rents (leases corresponding to assets with a low unit value s or a term of less than 12 months) in the amount of €7 million (compared with €5 million in 2020). Financial expenses relating to lease liabilities are presented in Note 9.1.

5

Investment property 7.4

Accounting principles Real estate held by the Group to earn rental income is recognised under “Investment property”. This revenue and the associated expenses are recognised in “Other income and expenses”.

As for property, plant and equipment, investment property is recognised at its historical acquisition cost less accumulated depreciation. The depreciation periods are identical to those of other property, plant and equipment (see Note 7.2).

Exchange rate impact

31/12/2020

Increases

Decreases

Other (27) (64) (91) (26) (66)

31/12/2021

In millions of euros

Land

29 72

- - -

- - - - -

1 3 4 1 3

3

Buildings

10 14

TOTAL GROSS VALUES

101

Depreciation

28 73

2

5 9

TOTAL NET VALUES

(2)

In the fourth quarter of 2021, the Group took over the lease for an equipment. The impact of this reclassification is presented in the “Other” investment property that it plans to operate directly by installing one of its column.

stores in the building. At that date, the net carrying amount of this asset was reclassified from investment property to property, plant and

The net rental proceeds from investment properties totalled €5 million in the financial year (compared with €7 million in 2020).

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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