Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

ADDITIONAL INFORMATION GLOSSARY

Net income A company’s net income is the balance between all of its income and all of its expenses over a given period. It reflects what the Company has earned or lost through its activities over that period. Net profit Positive income statement balance. Operating cash flows Operating cash flows are all the financial resources generated by the Company in connection with its activity and which it could use to cover its financial needs. It measures the Company’s ability to finance its requirements in order to exist, using its own resources, such as investments or debt repayments. Parent company financial statements The parent company financial statements are the annual financial statements of Hermès International taken individually. Preemptive subscription rights Tradable right, detached from each existing share, enabling existing shareholders to purchase new shares or securities giving access to the share capital in an offering before the general public has the opportunity to do so, or to obtain, by selling their rights, an amount equivalent to the notional reduction in the value of their shares that would arise from the new issue. Priority subscription right/priority subscription period In return for the cancellation of preemptive subscription rights, the Executive Management may introduce a priority right, which may be pro‑rated. A priority right, like a preemptive subscription right, enables existing shareholders to subscribe to the proposed issue in proportion to the number of shares they currently hold. However, unlike a preemptive subscription right, a priority right is (i) exercisable within a priority period (in practice, at least five trading sessions) that is shorter than the period allowed for a preemptive subscription right and (ii) not tradable. Pro‑rated (subscription rights) In some cases, the Executive Management may introduce pro‑rated subscription rights in favour of existing shareholders. This means that if irreducible subscriptions ( i.e. subscriptions by shareholders exercising preemptive subscription rights) fail to entirely absorb the capital increase, the unsubscribed equity securities would be allocated on a pro‑rated basis to those shareholders who made an application for additional shares (over and above the entitlement given by their preemptive subscription rights) in proportion to the subscription rights they hold and within the limit of the number of shares applied for by that shareholder. Quorum Minimum percentage of shares present or represented and carrying voting rights, required for a General Meeting to validly proceed.

The Joint Council is an institution designed to enable extensive consultation between the Executive Management Board of the Active Partner, an internal body needing to have knowledge of the main aspects of Hermès International’s Executive Management, and the Supervisory Board, an emanation of the shareholders. The Joint Council hears all questions that are submitted to it by the person calling it or which it decides to examine, without however being able to make decisions in place of the bodies to which such powers are granted by law, the Company’s Articles of Association and those of Émile Hermès SAS. The Joint Council of the Executive Management Board and the Supervisory Board does not, itself, have any decision‑making powers. It acts solely as a consultation body. If they so wish, at a Joint Council meeting, the Executive Management Board and the Supervisory Board may make any decision or give any opinion within their sphere of competence. LEI LEI is a unique, global identifier that takes the form of a 20‑character alpha‑numeric code. It is linked to key reference information. Developed by the International Organisation for Standardisation (ISO), the LEI is compulsory for all transactions in financial instruments listed on the stock exchange: it clearly and uniquely identifies the legal entities involved in such transactions. Limited Partners See “société en commandite par actions” (partnership limited by shares). Liquidities For a given security, this corresponds to the ratio between the volume of shares traded on the market and the number of shares comprising the floating stock. A security or a market is said to be “liquid” when buy or sell transactions can be completed without causing any excessive variations compared to the last trading price. Management report Information document required by the French Commercial Code ( Code de commerce ) whereby the Senior Executives and management bodies of a company report to the governing body on their management over the past year, and provide all significant information about the issuer and its future prospects. It is prepared by the same bodies as those that approve the annual financial statements. Companies preparing consolidated financial statements must also provide information about the management of the Group. This document is included in the universal registration document. Market capitalisation This is the market value of a company at a given time. It is calculated by multiplying the stock market price by the number of shares

comprising the capital. Net cash position

Net cash position includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short‑term borrowings and financial liabilities on the liabilities side. Net cash position does not include lease liabilities recognised in accordance with IFRS16.

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2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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