Hermès // CSR Extract 2023

5

CONSOLIDATED FINANCIAL STATEMENTS AFR CONSOLIDATED BALANCE SHEET

Name or other means of identification of the reporting entity

Hermès International

Domicile of the entity

24, rue du Faubourg Saint‑Honoré, 75008 Paris (France)

Legal form of the entity

Société en commandite par actions (partnership limited by shares)

Country of incorporation

France

Address of the entity’s registered office

24, rue du Faubourg Saint‑Honoré, 75008 Paris (France)

Principal place of business

24, rue du Faubourg Saint‑Honoré, 75008 Paris (France)

Description of the nature of the entity’s operations and its principal activities

Hermès is an independent, family‑owned craftsmanship House that manufactures and distributes its objects through a dynamic network of stores around the world.

Name of parent company

Hermès International

Name of ultimate parent of the Group

Hermès International

NOTE 1 ACCOUNTING PRINCIPLES AND POLICIES

1.1 Basis of preparation The consolidated financial statements of Hermès International and its subsidiaries (the “Group”), published for financial year 2023, are prepared in accordance with IFRS, the International Financial Reporting Standards, as adopted in the European Union as at 31 December 2023. The Group’s consolidated financial statements were approved by the Executive Management on 8 February 2024 and will be submitted for approval to the General Meeting on 30 April 2024. The Audit and Risk Committee, which met on 7 February 2024, also examined the consolidated financial statements. The consolidated financial statements and notes to the consolidated financial statements are presented in euros. Unless otherwise stated, the values shown in the tables are expressed in millions of euros and rounded to the nearest million. As a result, in certain cases, the effects of rounding up/down can lead to a non‑significant difference in the totals or changes. In addition, the ratios and differences are calculated on the basis of the underlying amounts and not on the basis of rounded amounts. New accounting principles and regulations applicable to the Hermès Group AMENDMENT TO IAS 12 - REFORM OF INTERNATIONAL TAXATION - RULES OF THE PILLAR II MODEL In December 2021, the Organisation for Economic Co‑operation and Development (OECD) published a draft reform of international tax rules proposing in particular the introduction of a minimum tax of 15% on the profits made by multinational groups (“Global Anti‑Base Erosion Rules” or Pillar II “GloBE Rules”). In December 2022, the European Union adopted the “Pillar II” Directive, which aims to transpose the GloBE Rules. France transposed the directive on 31 December 2023 through the 2024 finance act. This new 1.2 1.2.1

1.2.2 In this context, the IASB published an amendment to IAS 12 “International Tax Reform - Pillar II Model Rules” applicable for financial years beginning on or after 1 January 2023, which introduces a mandatory temporary exemption to the recognition of deferred tax assets or liabilities related to this minimum taxation. On the basis of the GloBE Model Rules to date and the tax rates currently in force in the countries where it operates, the Pillar II legislation would not have had a significant impact on the Group’s consolidated effective tax rate if the legislation had been in force for the 2023 financial year. Hermès has applied the exemption to the recognition of deferred taxes provided for by the amendment to IAS 12. PENSION REFORM In France, law 2023‑270 of 14 April 2023 on the amended financing of Social Security for 2023 includes a pension reform, around two main axes. The legal retirement age will be gradually raised from 1 September 2023 to reach 64 in 2030 for employees under the general scheme. The contribution period required to receive a full‑rate pension will increase from 42 years to 43 years from 2027. This reform has no significant impact on the value of the obligation for Hermès. Use of estimates The preparation of the consolidated financial statements under IFRS sometimes requires the Group to make estimates in valuing assets and liabilities and income and expenses recognised during the financial year. The Group bases these estimates on historical experience and on a variety of assumptions, which it deems to be the most reasonable and probable in the current economic environment. 1.3 legislation will therefore apply to Hermès from the 2024 financial year. The Group closely monitors the progress of the legislative process in each jurisdiction where it operates, in order to be in a position to implement the system there once adopted.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL 421 EXTRACT FROM 2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL 4