Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

7.4 Marketable securities

Accounting principles The gross value of marketable securities is their acquisition cost less incidental expenses. Securities are valued at the lower of acquisition cost or market value, calculated separately for each category of securities. In the event that part of a line of securities is sold, proceeds on disposals are calculated using the First‑In, First‑Out method (FIFO). Treasury shares that are specifically allocated to covering employee share plans or stock options are recorded under marketable securities. An impairment is accrued in an amount representing the difference between the purchase price of the shares and the option exercise

price, if the purchase price is more than the exercise price. In the event of a decrease in the stock market price, a provision for impairment is recognised for treasury shares that are not specifically allocated. It is calculated as the difference between the net carrying amount of the shares and the average stock market price for the month immediately preceding the closing date, weighted by the exchanged volumes. In addition, financial instruments are used in connection with the management of the Company’s treasury investments. Gains and losses on interest rate differentials and any corresponding premiums are recognised on an accrual basis.

31/12/2022

31/12/2021

In millions of euros

Open‑ended investment companies (Sicavs) and mutual funds

573

1,242

Negotiable debt securities

5,168

2,655

Treasury shares

645

529

Total gross values

6,386

4,426

Impairment

-

(3)

TOTAL NET VALUES

6,386

4,424

These shares were valued on the basis of their acquisition price. The average price of treasury shares as at 31December 2022 was €678.73. During 2022, Hermès International acquired 104,269 shares for an amount of €116 million and granted 264 free shares to employees for an amount of €50 thousand.

Treasury shares correspond to 950,785 Hermès International shares held under free share allocation plans for employees (compared with 846,780 shares as at 31December 2021).

7.5 Net cash position

2022

2021

In millions of euros

Marketable securities (excluding treasury shares)

5,741

3,894

Cash at bank and in hand

939

1,156

Bank overdrafts

0

0

NET CASH POSITION

6,680

5,050

Treasury shares are excluded from the marketable securities presented in net cash position.

7.6 Financial liabilities The breakdown of financial liabilities by maturity is as follows:

31/12/2022

31/12/2021

< 1 year Between 1 and 5 years

Net amount

Net amount

In millions of euros

Bank borrowings

0

0

0

0

Miscellaneous borrowings and financial liabilities

5

24

29

26

FINANCIAL LIABILITIES

5

24

29

26

Borrowings and financial liabilities correspond to funds held in trust for employees under the statutory employee profit‑sharing plan.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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