Hermès // 2021 Universal Registration Document

6

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

Marketable securities 7.4

Accounting principles The gross value of marketable securities is their acquisition cost less incidental expenses. Marketable securities are valued at the lower of acquisition cost or market value, calculated separately for each category of securities. In the event that part of a line of securities is sold, proceeds on disposals are calculated using the First-In, First-Out method (FIFO). Treasury shares that are specifically allocated to covering employee share plans or stock options are recorded under marketable securities. An impairment is accrued in an amount representing the difference between the purchase price of the shares and the option exercise price, if the purchase price is more than the exercise price.

In the event of a decrease in the stock market price, a provision for impairment is recognised for treasury shares that are not specifically allocated. It is calculated as the difference between the net carrying amount of the shares and the average stock market price for the month immediately preceding the closing date, weighted by the exchanged volumes. In addition, financial instruments are used in connection with the management of the Company’s treasury investments. Gains and losses on interest rate differentials and any corresponding premiums are recognised on an accrual basis.

31/12/2021

31/12/2020

In millions of euros

Open-ended investment companies (SICAVs) and mutual funds

1,242 2,655

319

Negotiable debt securities

2,585

Treasury shares Total gross values

529

437

4,426

3,341

Impairment

(3)

(0)

TOTAL NET VALUES

4,424

3,340

Treasury shares correspond to 846,780 Hermès International shares held under free share allocation plans for employees (compared with 883,605 shares as at 31 December 2020).

These shares were valued on the basis of their acquisition price. The average price of treasury shares as at 31 December 2021 was €625.10. During 2021, Hermès International acquired 142,131 shares for an amount of €162 million and granted 178,956 free shares to employees for an amount of €70 million.

Net cash position 7.5

2021

2020

In millions of euros

Marketable securities (excluding treasury shares)

3,894 1,156

2,903

Cash at bank and in hand

713

Bank overdrafts

0

(1)

NET CASH POSITION

5,050

3,615

Treasury shares are excluded from the marketable securities presented in net cash position.

Financial liabilities 7.6 The breakdown of financial liabilities by maturity is as follows:

31/12/2021

31/12/2020

Between 1 and 5 years

< 1 year

Net amount

Net amount

In millions of euros Bank borrowings

0 4 4

-

0

1

Miscellaneous borrowings and financial liabilities

22 22

26 26

26 27

FINANCIAL LIABILITIES

Borrowings and financial liabilities correspond to funds held in trust for employees under the statutory employee profit-sharing plan.

424 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL