Hermès // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Interest rate and liquidity risk 10.3 10.3.1 INTEREST RATE AND LIQUIDITY POLICY

10.2.4 SENSITIVITY TO EXCHANGE RATE FLUCTUATIONS The sensitivity of equity to foreign exchange risk is analysed for the cash flow hedge reserve. The impact on equity corresponds to the change in the market value of derivatives designated as cash flow hedges generated by the current variance in exchange rates, ceteris paribus . A 10% appreciation in the currencies to which the Group is exposed at the closing date would result in a -€312 million decrease in equity (before tax) in the fair value reserve. A 10% depreciation would have an impact of +€253 million (before tax). Moreover, a 10% appreciation in the currencies to which the Group is exposed would lead to an impact of +€0.2 million on net income at the closing date. A depreciation by the same magnitude would have an impact of -€0.1 million.

The Group may use financial instruments interest rate derivatives such as swaps to hedge part of its payables and receivables against interest rate fluctuations. The risk control and management procedures are identical to those applied to foreign exchange transactions. The following interest rate risks involve only items in the net cash position. Moreover, the interest rate risks are not material as concerns the financial assets and liabilities not included in the net cash position.

As at 31/12/2021

< 1 year 6,761 4,839

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros Financial assets

310 310

- - - - - - - - - - -

7,071 5,149

3,439 2,764

3,632 2,385

Euro

Chinese yuan

713 557 131

- - - - -

713 557 131

29

684 371

US dollar

186

Singapore dollar Hong Kong dollar Other currencies

49 31

82

31

31

-

490

490

380

111

Financial liabilities 1

1 1 0

0 0

1 1 0

1 1 0

- - -

Euro

Other currencies

-

RESTATED NET CASH POSITION

6,760

310

7,070

3,437

3,632

5

Excluding commitments to buy-out non-controlling interests (€24 million as at 31 December 2021). (1)

As at 31/12/2020

< 1 year 4,748 3,484

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros Financial assets

180 180

- - - - - - - - - - -

4,928 3,664

1,717 1,239

3,211 2,425

Euro

US dollar

473 449

- - - - -

473 449

188

285 432

Chinese yuan

17 53 43

Singapore dollar Hong Kong dollar Other currencies

56 43

56 43

3

-

243

243

177

66

Financial liabilities 1

25 16

0 0

25 16

17 16

8 0 8

Euro

Other currencies 2

9

-

9

1

RESTATED NET CASH POSITION

4,724

180

4,904

1,701

3,203

Excluding commitments to buy-out non-controlling interests (€18 million as at 31 December 2020). (1) Mainly consists of a short-term fixed rate loan contracted by Hermès Japan and bank overdrafts of foreign subsidiaries. (2)

10.3.2 SENSITIVITY TO INTEREST RATE FLUCTUATIONS A uniform 1 percentage point increase in interest rates would have had a positive impact of €34 million on the consolidated net income before tax (€17 million in 2020).

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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