Hermès // 2021 Universal Registration Document

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

MANAGEMENT OF MARKET RISKS AND DERIVATIVES

NOTE 8

Most of the Company’s foreign exchange risk exposure comes from the flows, using forward currency sales or options that are eligible for hedge sales of its production subsidiaries denominated in foreign currencies. accounting. This risk is generally fully hedged, based on highly probable future cash

Treasury and foreign exchange transactions 8.1

Accounting principles

Income and expense items expressed in foreign currencies are arising from the reconversion of payables and receivables at the converted into euros at the hedged exchange rate. Payables, closing rate are recorded in the balance sheet. A provision for receivables, and cash expressed in currencies outside of the euro contingencies is established for the entire value of unrealised foreign zone are shown on the balance sheet at the hedged exchange rate or exchange losses. Premiums on foreign currency options are recorded at the closing rate if they are not hedged. In this case, differences through profit or loss on the maturity date.

Net currency position 8.2

Net position after hedging

Net position before

Monetary assets/(liabilities)

Future cash flows

Hedging ratio

Sensitivity of 10%

hedging Derivatives 1

In millions of euros

As at 31/12/2021 Hong Kong dollar

(321) (228)

2

(319) (216)

319 219 (56) (41)

0 3 1 0 1 0

100% 101%

0 0 0 0 0 0

US dollar

12 10 15

Swiss franc Chinese yuan

46 18

57 33

99%

(7)

122% 102%

(1)

Singapore dollar Australian dollar Pound sterling Japanese yen

(32)

6

(26)

27

46 17 (0) (9)

10

57 17

(56) (17)

99% 99%

1 5

5

(5) 16

(0) (0) (3) (1) (0) (6) (0)

105%

(0) (0) (0) (0) (0) (1) (0)

Other

(7) 55

(16)

98% 99%

SUMMARY

(463)

(408)

405

As at 31/12/2020 Australian dollar

6

45 36 38

2 8 4 7

47 44 42 26 10 (3) 49

(48) (44) (48)

102% 100% 114% 100%

Swiss franc

Hong Kong dollar Singapore dollar

(37)

(30)

30

Chinese yuan Japanese yen

15

12

(26)

1 0

96% 98% 75% 98%

0 0

0

9

(9)

US dollar

(19)

15

2

(1)

(0)

Other

45

4

(48)

1

0

SUMMARY

123

61

184

(189)

(5)

103%

(1)

Purchase/(Sale). (1)

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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