Hermès - Registration Document 2016

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Changes to actuarial assumptions and experience effects give rise to actuarial gains and losseswhichareall recorded inequity over theperiod during which they were recognised. For the Group, the main defined-benefit plans apply mainly to: s retirement benefits in France, Italy, Turkey, Greece, India, Japan and Taiwan: these are calculated based on employee length of service and annual salary upon reaching retirement age. These obligations are partially or entirely externalised depending on the country;

s long-service awards in France: these are awards for long-standing service or outstanding initiatives taken by employees or persons treated as employees during their careers, or for skills enhancement. The awards are issued with a bonus, under the terms of a collective agreement, company-wide agreement or decision by the relevant company or works council; s long-term bonuses in Japan, Asia-Pacific, Switzerland and England: within certain foreign subsidiaries, seniority is rewarded by means of bonuses on specific anniversary dates; s a supplementary plan for the directors in France or abroad (Switzerland, Canada).

< 1 year

> 1 year

2016

< 1 year

> 1 year

2015

In millions of euros

Post-employment and similar benefit obligations

5.6 5.6

183.4 183.4

189.0 189.0

4.8 4.8

155.0 155.0

159.8 159.8

TOTAL

25.2 Actuarial assumptions

For 2016, the following actuarial assumptions were used for the countries to which the Hermès Group’s main commitments apply:

France

Italy

Switzerland

Japan

Taiwan

Rest of Asia **

Retirement age

62 to 65 years 62 to 69.6 years 63 to 64 years

60 years 60 to 66 years 50 to 65 years 2.5% 3.5% - 5% 3.50% - 8.25%

Increase in salaries

3.0%

1.2%

2.0%

Increase in social security ceiling

2.50%

n/a

n/a

n/a

n/a

n/a

Discounting rate

1.21% - 0.95% *

1.2%

0.4%

0.4%

1.02% 0.3% - 7.05%

n/a: not applicable. * Rates according to the duration of the plans. ** Integration of India, Malaysia and Thailand compared with 2015.

2015 assumptions:

France

Italy

Switzerland

Japan

Taiwan

Rest of Asia

Retirement age

62 to 65 years 62 to 69.6 years 63 to 64 years

60 years 60 to 65 years 50 to 66 years

Increase in salaries

3.0%

2.0%

2.0%

2.5%

3.5% 4.75% - 7.0%

Increase in social security ceiling

2.75%

n/a

n/a

n/a

n/a

n/a

Discounting rate

1.9% - 1.49% *

1.9%

0.8%

0.9%

1.3% 0.4% - 3.0%

n/a: not applicable. * Rates according to the duration of the plans.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL