Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Other long‑term benefits The Hermès Group’s other long‑term benefits include:

When benefits are funded in advance through external funds, the assets held are measured at fair value, and taken into account in the assessment of the net provision. In accordance with IAS19 revised, rates of return on assets are determined by reference to discount rates on the obligations. In the consolidated income statement, the expense is presented under “Other income and expenses”. Changes in actuarial assumptions and experience effects give rise to actuarial gains and losses, the total of which is recorded under “Other comprehensive income” over the period during which they were recognised.

jubilees in France: these awards provide compensation for long‑standing services; s long‑service awards, mainly in Japan, China and countries in South Asia. s

5.3.1 INFORMATION BY TYPE OF PLAN AND GEOGRAPHICAL AREA The provision shown in the balance sheet includes post‑employment defined‑benefit plans and other long‑term benefits:

31/12/2022

31/12/2021

In millions of euros

Defined‑benefit plans

182

243

Other long‑term benefits

15

17

PROVISIONS AT END OF PERIOD

196

260

The present value of the obligations and the fair value of the plan assets broken down by geographical area are as follows:

31/12/2022

31/12/2021

Value 157

Breakdown

Value 187

Breakdown

In millions of euros

France Japan

54% 17% 29%

57% 16% 28%

5

50 84

52 92

Other

Present value of obligations

292

100%

331

100%

France

33 62 95

35% 65%

16 55 71

23% 77%

Other

Fair value of plan assets

100%

100%

France Japan

124

63% 26% 11%

171

66% 20% 14%

50 22

52 37

Other

PROVISIONS FOR RETIREMENT AND SIMILAR BENEFIT OBLIGATIONS

196

100%

260

100%

5.3.2 ACTUARIAL ASSUMPTIONS For financial year 2022, the following actuarial assumptions were used for the countries to which the Hermès Group’s main commitments apply:

France

Japan 1.0%

Switzerland

1

Discount rate

3.35% - 3.48%

2.0%

Increase in salaries

3.5% - 4.0%

2.5%

2.0%

(1) Rates according to the duration of the plans.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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