Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Reminder of the assumptions in 2021:

France

Japan 0.4%

Switzerland

1

Discount rate

0.49% - 0.84

0.25%

Increase in salaries

3.0%

2.5%

2.0%

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

A 0.50 point increase or decrease in the discount rate would lead to a €14 million decrease or a €13 million increase in the provision for retirement and other employee benefit obligations respectively, with the balancing entry recognised in equity.

5.3.3 RECONCILIATION OF RETIREMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS

2022

2021

Value of obligations

Provisioned obligations

Value of obligations

Provisioned obligations

Plan assets

Plan assets

In millions of euros

Provisions as at 1January

331

(71)

260

368

(65)

304

Change in service cost allocation method as at 1January

-

-

-

(45)

-

(45)

Expense for the financial year

20

(3)

16

21

0

21

Benefits paid

(5)

1

(4)

(8)

5

(3)

Employer contributions

-

(22)

(22)

-

(5)

(5)

Employee contributions

2

(2)

-

2

(2)

-

Actuarial gains and losses recognised in other comprehensive income

(53)

2

(51)

(9)

(2)

(12)

Change in scope

0

(0)

-

-

-

-

Foreign currency adjustments

(0)

(3)

(3)

2

(2)

0

Other movements

(4)

4

-

-

-

-

PROVISIONS AS AT 31DECEMBER

292

(95)

196

331

(71)

260

5.4 Share‑based payments

Accounting principles Free share allocation plans are recognised as expenses at fair value in the “Other income and expenses” section, with a corresponding increase in equity. This fair value is spread over the vesting period. The estimate of the fair value is calculated on the basis of the share price on the date that the corresponding decision is made by Executive Management, subject to the deduction of the amount of the

advance dividends over the vesting period, taking into account the assumption of a turnover rate for beneficiaries. In some countries, these share‑based payments are subject to social security charges due upon delivery to employees. These expenses are then spread over the vesting period and recognised under “Other income and expenses”.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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