Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10.3.2 SENSITIVITY TO INTEREST RATE FLUCTUATIONS

2022

2021

In millions of euros

Impact on income before tax Uniform 1‑point increase in interest rates

37

34

10.4 Equity risk Investments in listed equities are not material at Group level. As such, the Group has no exposure to equity risk. Fair value and hierarchy by level of fair value of financial assets and liabilities The assets and liabilities recorded at fair value are classified according to the following three fair value levels: level 1 : prices listed on an active market. If listed prices in an active market are available, they are used as a priority in order to determine market value; s 10.5

For financial years 2022 and 2021, there were no transfers between levels 1 and 2 for financial assets and liabilities recognised at fair value. level 2 : internal model with parameters observable using internal valuation techniques. These techniques involve usual mathematical calculation methods that include observable market data (future prices, yield curve, etc.). The calculation of most financial derivatives traded on markets is performed on the basis of models that are commonly used by participants in order to evaluate these financial instruments; s level 3 : internal model with non‑observable parameters. s

2022

Assets at fair value through profit or loss 1

Financial assets at fair value through non‑recyclable equity

Financial assets at amortised cost

Liabilities at fair value 1

Liabilities at amortised cost

Net carrying amount

Fair value

Evaluation level

Note

In millions of euros

2

Financial investments

30

491

547

-

-

1,068 1,068

2

Liquidity contract

14

-

-

-

-

14

14

1

Other financial assets

27

-

-

-

-

27

27

2

Financial assets

9.2

71

491

547

-

-

1,109 1,109

Loans and deposits

-

65

-

-

-

65

65

2

Trade receivables and other current assets

4.4.2

-

704

-

-

-

704 704

-

Foreign currency derivative assets

10.2

160

-

-

-

-

160 160

2

Cash and cash equivalents

9.3

2,066

7,159

-

-

-

9,225 9,225

1

Bank overdrafts

9.3

-

-

-

-

2

2

2

-

Other borrowings

9.3

-

-

-

-

1

1

1

-

3

Financial liabilities

-

-

-

-

3

3

3

Trade payables and other liabilities

4.4.3

-

-

-

-

(2,615)

(2,615) (2,615)

-

Foreign currency derivative liabilities

10.2

-

-

-

(74)

-

(74)

(74)

2

(1) Before hedge accounting. (2) Comprised of EMTNs and term deposits not meeting the criteria of cash and cash equivalents. (3) Excluding commitments to buy‑out non‑controlling interests (€34 million as at 31December 2022).

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