Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The administrative management is carried out using integrated treasury software. The Hermès International middle & back‑office departments and internal control department conduct controls on these transactions. In addition, the audit and risk management department ensures compliance with the risk control and management procedures.

The Executive Committee has validated these management rules and the Supervisory Board has endorsed them. The Executive Committee validates management decisions within this set of rules, via a Treasury Safety Committee that meets on a regular basis. other non‑operating transactions are hedged against foreign exchange risk as soon as their commitment is firm and final. They include financial risks arising from intragroup loans and dividends in foreign currencies. s

10.2.2 NET CURRENCY POSITION

As at 31/12/2022

Future cash flows

Net position before hedging

Net position after hedging

Monetary assets/ (liabilities) 1

2

Derivatives

Hedge ratio

In millions of euros

Chinese yuan

285

1,147

1,432

(1,437)

(5)

100%

US dollar

(12)

994

982

(972)

10

99%

Singapore dollar

60

584

644

(643)

1

100%

Japanese yen

37

534

571

(568)

3

99%

Hong Kong dollar

32

487

519

(548)

(29)

106%

Pound sterling

(16)

165

149

(141)

8

95%

Australian dollar

19

123

142

(139)

3

98%

3

Euro

18

95

113

(113)

(0)

100%

Thai baht

11

96

108

(101)

6

94%

Canadian dollar

8

86

94

(91)

3

97%

Swiss franc

34

39

74

(71)

3

96%

Brazilian real

17

15

32

(27)

6

82%

Other currencies

7

120

127

(124)

3

98%

SUMMARY 100% (1) Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three months from the date of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities. (2) Purchase/(Sale). (3) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding sales of goods, with subsidiaries that have a different functional currency. 501 4,486 4,987 (4,976) 11

As at 31/12/2021

Future cash flows

Net position before hedging

Net position after hedging

Monetary assets/ (liabilities) 1

2

Derivatives

Hedge ratio

In millions of euros

Chinese yuan

297

1,068

1,365

(1,397)

(31)

102%

US dollar

(167)

679

512

(501)

12

98%

Japanese yen

32

407

439

(433)

6

99%

Singapore dollar

19

375

394

(381)

13

97%

Pound sterling

25

131

156

(160)

(4)

103%

Australian dollar

23

101

124

(119)

5

96%

Hong Kong dollar

(273)

384

111

(116)

(5)

105%

3

Euro

9

68

77

(83)

(6)

108%

Swiss franc

49

40

89

(80)

9

90%

Canadian dollar

11

66

78

(76)

2

98%

Thai baht

6

53

59

(61)

(1)

102%

Russian rouble

3

35

38

(38)

-

99%

Other currencies

23

100

123

(120)

3

98%

SUMMARY 100% (1) Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three months from the date of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities. (2) Purchase/(Sale). (3) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding sales of goods, with subsidiaries that have a different functional currency. 57 3,508 3,566 (3,564) 2

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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