Hermès // 2021 Universal Registration Document

6

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION

NOTE 7 Other elements of net financial income 7.1

2021

2020

In millions of euros

Interest and similar income

5

10 (8) (3) (1) (3)

Foreign exchange gains and losses Interest and similar expenses

(10)

(6) (0)

Net income from disposals of marketable securities OTHER ELEMENTS OF NET FINANCIAL INCOME

(11)

Foreign exchange gains and losses are detailed in a specific note (see Note 8) on market risk management and derivatives.

Financial assets 7.2

Accounting principles Investment securities are shown in the balance sheet at acquisition cost. The Company has opted for the recognition of ancillary costs at the time of acquisition. Where the balance sheet value at the closing date is lower than the carrying amount, a provision for impairment is recorded for the difference.

This value is estimated at the proportionate share of net assets, which may be corrected, if need be, based on the profitability outlook for the concerned subsidiary. If the subsidiary’s net position is negative, an impairment for receivables due and a provision for risks and expenses may also be recognised (see Note 10.1).

31/12/2020

Increases

Decreases

Other 31/12/2021

Note

In millions of euros

Affiliates

7.3

1,402

180 185 185

(8) (4) (0) (4) (0) (0)

- -

1,575

Other financial assets Financial investments

265 233

446 418

Treasury shares (including liquidity contract)

26

22

Deposits and guarantees Other long-term investments

6 3

0 0

7 3

- - - -

Total gross values

1,670 (770)

365

(12) 746 734

2,024 (952) 1,072

Impairment

(928) (563)

TOTAL NET VALUES

901

The increase in shareholdings over the financial year mainly concerns the recapitalisation of certain subsidiaries. As at 31 December 2021, Hermès International held 78,373 treasury shares (liquidity contract and unallocated shares intended for external growth operations). These shares were valued on the basis of their

acquisition price. The average price of treasury shares as at 31 December 2021 was €282.91. Impairment in the amount of €928 million is made up of the cumulative amount of impairment on investment securities.

The breakdown of other financial assets by maturity is as follows:

31/12/2021

31/12/2020

Between 1 and 5 years

Gross amount

< 1 year

Impairment

Net amount

Net amount

In millions of euros

Other financial assets

35

411

446

(24)

423

242

422 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL