Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10.2.4 SENSITIVITY TO EXCHANGE RATE FLUCTUATIONS The sensitivity of equity to foreign exchange risk is analysed for the cash flow hedge reserve. The impact on equity (before tax) corresponds to the change in the market value of derivatives

designated as cash flow hedges generated by the current variance in exchange rates at the end of the period, ceteris paribus .

2022

2021

In millions of euros

Impacts before tax

Equity (397)

Net income

Equity (312)

Net income

10% appreciation of the Group’s exposure currencies

1

0

10% depreciation of the Group’s exposure currencies

346

(1)

253

(0)

10.3 Interest rate and liquidity risk 10.3.1 INTEREST RATE AND LIQUIDITY POLICY

The risk control and management procedures are identical to those applied to foreign exchange transactions. The following interest rate risks involve only items in the net cash position. Moreover, the interest rate risks are not material as concerns the financial assets and liabilities not included in the net cash position.

The Group may use financial instruments interest rate derivatives such as swaps to hedge part of its payables and receivables against interest rate fluctuations.

As at 31 December 2022

< 1 year 9,486 6,185

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros Financial assets

260 260

- -

9,746 6,444

3,741 2,456

6,005 3,988

Euro

Chinese yuan

798

- - - - -

- - - - -

798

39

759 562 112 451 133

US dollar

1,096

1,096

534 160

Singapore dollar Hong Kong dollar Other currencies Financial liabilities

272 490 645

272 490 645

5

39

513

1

2 2 0

1 1

-

3 3 0

2 2 0

1 1

Euro

- -

Other currencies

-

-

RESTATED NET CASH POSITION

9,484

258

-

9,742

3,739

6,004

(1) Excluding commitments to buy‑out non‑controlling interests (€34 million as at 31 December 2022).

As at 31 December 2021

< 1 year 6,761 4,839

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros Financial assets

310 310

- - - - - - - - - - -

7,071 5,149

3,439 2,764

3,632 2,385

Euro

Chinese yuan

713 557 131

- - - - -

713 557 131

29

684 371

US dollar

186

Singapore dollar Hong Kong dollar Other currencies Financial liabilities

49 31

82

31

31

-

490

490

380

111

1

1 1 0

0 0

1 1 0

1 1 0

- - -

Euro

Other currencies

-

RESTATED NET CASH POSITION

6,760

310

7,070

3,437

3,632

(1) Excluding commitments to buy‑out non‑controlling interests (€24 million as at 31December 2021).

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