Hermès // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2020

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

15 14

180 3

144

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

- - - - - - - -

339

339

2 1 2

Liquidity contract

- -

-

14 15

14 15

Other financial assets

2

13

Financial assets

9.2

31

180

157

368

368

Loans and deposits

- -

56

- - - - - - - - - -

56

56

2

Trade receivables and other current assets

4.5.2 10.2

530

530 121

530 121

Foreign currency derivative assets

121

-

2 1

Cash and cash equivalents

9.3 1,522 3,211

4,733 4,733

Bank overdrafts

9.3

- - - - - -

- - - - - -

16

16

16

4

Japan loan

8 0

8 0

8 0

0.2% 0.2% 1.2% 1.2%

Other borrowings

9.3

Financial liabilities 5

25

25

25

Trade payables and other liabilities Foreign currency derivative liabilities

4.5.3 10.2

(1,497)

(1,497)

(1,497)

(29)

-

(29)

(29)

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) Interest rates correspond to floating rates. (4) Excluding commitments to buy-out non-controlling interests (€18 million as at 31 December 2020). (5)

EQUITY – EARNINGS PER SHARE

NOTE 11 Share capital 11.1

5

Capital management 11.2 The Group’s objectives, policies and procedures in the area of capital management are in keeping with sound management principles designed to ensure that operations are well-balanced financially and to minimise the use of debt. As its surplus cash position gives it some flexibility, the Group does not use prudential ratios such as “return on equity” in its capital management. During the current year, the Group made no change in its capital management policy and objectives.

As at 31 December 2021, Hermès International’s share capital consisted of 105,569,412 fully paid-up shares with a par value of €0.51 each, of which 925,153 treasury shares.

Treasury shares 11.3

Accounting principles

Treasury shares are recorded at acquisition cost and deducted from equity. Gains or losses on the disposal of these shares are recognised directly in equity, with no impact on profit or loss.

In financial year 2021, the following treasury share movements occurred: buyback of 142,131 shares for €162 million, excluding movements s under the liquidity contract; sale of 4,815 shares as part of the liquidity contract; s

delivery of 178,956 free shares awarded to Hermès Group s employees. It is specified that no shares are reserved for issuance under options or agreements to sell shares.

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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