Hermès - Registration Document 2016

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

19.2 Change in working capital requirements related to the activity

Change in working capital requirements related to the activity

Impact of revaluation of financial and hedging instruments

Other cash flows

Exchange rate impact

31/12/2015

Others 31/12/2016

In millions of euros

Inventories and work-in-progress Trade and other receivables

949.4 303.0 183.0

(37.8)

- - - - - - - -

3.6 2.6 0.1 0.0

-

-

915.1 307.2 198.4

34.3

(32.6)

(0.1)

Other current assets

8.8 8.8

(0.0)

6.5

Other non-current assets

0.2

-

-

9.0

Available-for-sale securities (excluding liquidity contract and forward financial investments)

0.4

(0.3)

-

- - -

0.6 0.3

0.7

Loans and deposits Deferred tax assets

55.6

4.9

1.1 2.8

61.9

244.7

33.6

(16.6)

264.5

Trade payables (excluding debt on fixed assets) Other liabilities and miscellaneous (excluding current tax expense)

(402.7)

(15.5)

(0.9)

0.9

(4.8)

(423.0)

(496.2)

(74.1)

- -

(3.4) (0.0)

1.1

(3.2)

(575.9)

Net financial derivatives

1.5

14.8

(19.4)

(10.2)

(13.3)

Change in working capital requirements related to the activity

838.9

(22.5)

-

5.9

(50.0)

(27.5)

744.6

EQUITY

NOTE 20

The Group’s objectives, policies and procedures in the area of capi- tal management are in keeping with sound management principles designed to ensure that operations are well-balanced financially and to minimise the use of debt. As its surplus cash position gives it some flexi- bility, the Group does not use prudential ratios such as “return on equity” in its capital management. During the current year, the Group made no change in its capital management policy and objectives. Lastly, the parent company, Hermès International, is governed by French laws on capital requirements. Equity must be greater than or equal to at least half of the share capital. If it drops below this level, an Extraordinary General Meeting must be called to approve the measures required to remedy this situation. Hermès International has never been in this posi- tion and has always met this requirement. 20.1 Dividends An ordinary dividend of €3.35 per share was paid, representing a total amount of €350.4 million, after having been approved by the sharehol- ders at the General Meeting held on 31 May 2016 to approve the finan- cial statements for the year ended 31 December 2015.

As at 31 December 2016, Hermès International’s share capital consisted of 105,569,412 fully paid shares with a par value of €0.51 each, of which 1,079,660 treasury shares. Infinancialyear2016,thefollowingtreasurysharemovementsoccurred: s buyback of 319,621shares for €109.6million, excludingmovements under the liquidity contract; s delivery of 416,480 bonus shares allotted to Hermès Group employees. It is specified that no shares are reserved for issuance under put options or agreements to sell shares. For management purposes, theHermès Group uses the notion of “equity attributable to owners of the parent” as shown in the consolidated sta- tement of changes in equity. More specifically, equity includes the part of financial instruments that has been transferred to equity as well as actuarial gains and losses, as defined in Notes 1.9 and 1.17. s purchase of 4,252 shares as part of the liquidity contract;

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL