Hermès // 2021 Universal Registration Document

6

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

SHARE CAPITAL

NOTE 9

As at 31 December 2021, Hermès International’s share capital amounted to €53,840,400.12, made up of 105,569,412 shares with a par value of €0.51 each, unchanged from 31 December 2020.

PROVISIONS FOR RISKS AND EXPENSES – OFF-BALANCE SHEET COMMITMENTS

NOTE 10

Accounting principles

Provisions for risks and expenses include retirement costs and the transferred to extraordinary income for the other employee cost of free shares for all Group employees; they are recognised in beneficiaries of subsidiaries. operating income for the employees of Hermès International, and are

Provisions for risks and expenses 10.1

Reversals

Provisions used

Unused provisions

Note 31/12/2020 Allocations

Other

31/12/2021

In millions of euros Free share plans

3.4

126

45 31 10 86

(70)

101

Net negative position of subsidiaries Other provisions for risks and expenses PROVISIONS FOR RISKS AND EXPENSES

5

(5) (1)

31

54

(0) (5)

69 69

133 264

185

(71)

Other provisions for liabilities and expenses mainly include net pre-financing commitments for retirement benefits and long-service awards for an amount of €120 million as at 31 December 2021 (see Note 3.3). The change in “Other” corresponds to the change in method made during the financial year (see Note 1).

Off-balance sheet commitments 10.2

31/12/2021

31/12/2020

In millions of euros

Bank guarantees given

2 9

2

Irrevocable commitments to purchase financial assets

21

Other commitments

149 160

183 206

TOTAL

The bank guarantees subscribed on behalf of the subsidiaries are the subject of commissions that are re-invoiced to them. The other commitments concern real estate leases signed or guaranteed by Hermès International.

Moreover, two sureties have been granted to the HSBC and BNP Paribas banks for a maximum amount of €75 million and €100 million to give subsidiaries designated by Hermès International access to an aggregate group banking facility. The amounts drawn by the subsidiaries are re-invoiced on the basis of market conditions. As at 31 December 2021, the amounts drawn on these credit facilities amounted to €14 million and €15 million, respectively.

428 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL