Hermès - Registration Document 2016

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As at 31/12/2015

< 1 year

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros

Financial assets

1,589.2 1,000.4

- - - - - -

- - - - - - - - - -

1,589.2 1,000.4

1,439.2

150.0 150.0

Euro Yuan

850.4

48.2

48.2

48.2

- - - -

US dollar

119.8

119.8

119.8

Yen

17.6

17.6

17.6

Others

403.3

403.3

403.3

30.2 18.6

1.8 0.7

32.0 19.3

25.9 18.0

6.0 1.2 4.2 0.6

Financial liabilities 1

Euro

Yen

4.2 7.4

-

4.2 8.5

-

1.1

7.9

Others 2

Net cash position before hedging Net cash position after hedging

1,559.0 1,559.0

(1.8) (1.8)

- -

1,557.2 1,557.2

1,413.3 1,413.3

144.0 144.0

As at 31/12/2015

< 1 year

1 to 5 years

> 5 years

Total

Floating rate

Fixed rate

In millions of euros

Financial assets

1,589.2 1,589.2

- -

- - - - - - - -

1,589.2 1,589.2

1,439.2 1,439.2

150.0 150.0

Cash and cash equivalents

30.2

1.8 1.8

32.0

25.9

6.0 1.5 4.5

Financial liabilities 1

Medium- and long-term financial debt Bank overdrafts and short-term debt

1.8

0.3

30.1

- -

30.1

25.6

Current accounts in debit

0.1

0.1

0.1

-

Net cash position before hedging Net cash position after hedging

1,559.0 1,559.0

(1.8) (1.8)

1,557.2 1,557.2

1,413.3 1,413.3

144.0 144.0

(1) Excluding commitments to buy out non-controlling interests (€9.6 million as at 31 December 2015). (2) Mainly consists of long-term reducing fixed-rate loans taken out by Hermès India Retail and Distributors to finance investments linked to the Bombay store (opened in October 2011).

22.4 Fair value and hierarchy by level of fair value of financial assets and liabilities In compliancewith IFRS7 Financial Instruments: Disclosures, the assets and liabilities recorded at fair value are classified according to the three following fair value levels: s level 1 : prices listed on an active market. If listed prices in an active market are available, they are used as a priority in order to determine market value; s level 2 : internal model with parameters that can be observed on the basis of internal valuation techniques. These techniques require the use of the usual mathematical calculation methods that include data that can be observed within the markets (future prices, yield curve, etc.). The calculation of most financial derivatives traded within mar- kets is performed on the basis of models that are commonly used by participants in order to assess these financial instruments.

22.3.1 Equity risk Investments in equities are not material at Group level. As such, the Group has no exposure to equity risk. 22.3.2 Sensitivity to interest rate fluctuations A uniform1 percentage point increase in interest rates would have had a positive impact of €21.3 million on the consolidated net income before tax (€14.1 million in 2015). The market value of investments is equivalent to their carrying amount. Financial liabilities do not include the liability associated with employee profit-sharing, which is included in “Other liabilities”.

s level 3 : internal model with non-observable parameters.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL