Hermès // 2021 Universal Registration Document

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Equity risk 10.4 Investments in listed equities are not material at Group level. As such, the Group has no exposure to equity risk. Fair value and hierarchy by level of fair value 10.5 of financial assets and liabilities The assets and liabilities recorded at fair value are classified according to the following three fair value levels: level 1 : prices listed on an active market. If listed prices in an active s market are available, they are used as a priority in order to determine market value;

level 2 : internal model with parameters observable using internal s valuation techniques. These techniques involve usual mathematical calculation methods that include observable market data (future prices, yield curve, etc.). The calculation of most financial derivatives traded on markets is performed on the basis of models that are commonly used by participants in order to evaluate these financial instruments; level 3 : internal model with non-observable parameters. s For financial years 2021 and 2020, there were no transfers between levels 1 and 2 for financial assets and liabilities recognised at fair value.

2021

Financial assets at fair value through non- recyclable equity

Assets at fair value through profit or loss 1-2

Financial assets at amortised cost

Liabilities at amortised cost

Liabilities at fair value 2

Net carrying amount

Effective interest rate

Fair value

Evaluation level

Interest rate

Note

In millions of euros

Financial investments

30 19

345 3

203

- - - - - - - - - - - -

- - - - - - - -

578

578

2 1 2

Liquidity contract

- -

-

19 20

19 20

Other financial assets

0

20

Financial assets

9.2

49

345

223

617

617

Loans and deposits

- -

59

- - - - - - - - -

59

59

2

Trade receivables and other current assets

4.5.2 10.2

670

670

670

Foreign currency derivative assets

53

-

53

53

2 1

Cash and cash equivalents

9.3 3,055 3,641

6,696 6,696

Bank overdrafts Other borrowings

9.3 9.3

- - - - -

- - - - -

1 0 1

1 0 1

1 0 1

Financial liabilities 4

Trade payables and other liabilities Foreign currency derivative liabilities

4.5.3 10.2

(2,094)

(2,094)

(2,094)

(122)

-

(122)

(122)

2

Classification in the category “Assets at fair value through profit or loss” is imposed in accordance with IFRS 9 depending on the business model for these assets. (1) Before hedge accounting. (2) Comprised of EMTNs and term deposits not meeting the criteria of cash and cash equivalents. (3) Excluding commitments to buy-out non-controlling interests (€24 million as at 31 December 2021). (4)

396 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL