Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

6

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION

NOTE 7

7.1 Other elements of net financial income

2022

2021

In millions of euros

Interest and similar income

43

5

Foreign exchange gains and losses

61

(10)

Interest and similar expenses

(21)

(6)

Net income from disposals of marketable securities

(4)

(0)

OTHER ELEMENTS OF NET FINANCIAL INCOME

79

(11)

Foreign exchange gains and losses are detailed in a specific note (see note 8) on market risk management and derivatives.

7.2 Financial assets

Accounting principles Investment securities are shown in the balance sheet at acquisition cost. The Company has opted for the recognition of ancillary costs at the time of acquisition. Where the balance sheet value at the closing date is lower than the carrying amount, a provision for impairment is recorded for the difference.

This value is estimated at the proportionate share of net assets, which may be corrected, if need be, based on the profitability outlook for the concerned subsidiary. If the subsidiary’s net position is negative, an impairment for receivables due and a provision for risks and expenses may also be recognised (see note 10.1).

Note

31/12/2021

Increases

Decreases

Other 31/12/2022

In millions of euros

Equity investments

7.3

1,575

28

(1)

-

1,602

Other financial assets

446

152

(5)

-

594

Financial investments

418

146

(5)

558

Treasury shares (including liquidity contract)

22

7

-

29

Deposits and guarantees

7

0

(0)

7

Other long‑term investments

3

0

(2)

-

-

Total gross values

2,024

180

(8)

-

2,196

Impairment

(952)

(971)

928

-

(995)

TOTAL NET VALUES

1,072

(791)

920

-

1,201

acquisition price. The average price of treasury shares as at 31December 2022 was €346.32. Changes in impairment mainly comprise the allocation to/reversal of the cumulative amount of impairment on investment securities.

The increase in shareholdings over the financial year mainly concerns the recapitalisation of certain subsidiaries. As at 31December 2022, Hermès International held 82,840 treasury shares (liquidity contract and unallocated shares intended for external growth operations). These shares were valued on the basis of their

The breakdown of other financial assets by maturity is as follows:

31/12/2022

31/12/2021

Between 1 and

< 1 year

5 years Gross amount

Impairment

Net amount

Net amount

In millions of euros

Other financial assets

267

326

594

(24)

570

423

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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