Hermès // 2021 Universal Registration Document

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Committee validates management decisions within this set of rules, via a Treasury Safety Committee that meets on a regular basis. The administrative management is carried out using integrated treasury software. These operations are monitored by the Middle & Back-Office and internal control departments of Hermès International. In addition, the audit and risk management department ensures compliance with the risk control and management procedures.

other non-operating transactions are hedged against foreign s exchange risk as soon as their commitment is firm and final. They include financial risks arising from intragroup loans and dividends in foreign currencies. These management rules have been validated by the Executive Committee and the Supervisory Board has endorsed them. The Executive

10.2.2 NET CURRENCY POSITION

As at 31 December 2021

Monetary assets/(liabilities) 1

Future cash flows

Net position before hedging

Net position after hedging

Derivatives 2

Hedge ratio

In millions of euros

Chinese yuan

297

1,068

1,365

(1,397)

(31)

102%

US dollar

(167)

679 407 375 131 101 384

512 439 394 156 124 111

(501) (433) (381) (160) (119) (116)

12

98% 99% 97%

Japanese yen Singapore dollar Pound sterling Australian dollar Hong Kong dollar

32 19 25 23

6

13 (4)

103%

5

96%

(273)

(5) (6)

105% 108%

9

68 40 66 53 35

77 89 78 59 38

(83) (80) (76) (61) (38)

Euro 3

Swiss franc

49 11

9 2

90% 98%

Canadian dollar

Thai baht

6 3

(1)

102%

Russian rouble Other currencies

0 3 2

99% 98%

23 57

100

123

(120)

SUMMARY 100% Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three (1) months from the date of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities. Purchase/(Sale). (2) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding (3) sales of goods, with subsidiaries that have a different functional currency. 3,508 3,566 (3,564)

As at 31 December 2020

Monetary assets/(liabilities) 1

Future cash flows

Net position before hedging

Net position after hedging

Derivatives 2

Hedge ratio

In millions of euros

Chinese yuan

295

665 410 322 246 263 129

960 461 345 320 245 146 101

(943) (469) (348) (326) (246) (150)

17 (8) (3) (6) (1) (4) 12 (4)

98%

US dollar

51 22 74 17 49 37 18 16

102% 101% 102% 100% 103% 106% 100% 100% 88%

Japanese yen

Hong Kong dollar Singapore dollar Pound sterling Australian dollar

(18)

52 36 52 58 40 90

(89) (76) (70) (74) (40)

Swiss franc

72 70 74 42

Canadian dollar

0

Euro 3

(0)

Thai baht

2

2 2 7

96% 98%

Other currencies

33

123

(121)

SUMMARY 100% Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three (1) months from the date of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities. Purchase/(Sale). (2) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding (3) sales of goods, with subsidiaries that have a different functional currency. 596 2,364 2,960 (2,953)

392 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL