Hermès - Registration Document 2016

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

More specifically, for pension plans in Switzerland, a 0.50 point increase or decrease in the applied interest rate would lead to a €1.2 million increase or a €1.2 million decrease in the pension provision, with the balancing entry recognised in equity. As at 31 December 2016, contributions paid for the coming year (including contributions paid to a fund and benefits paid directly by the employer) totalled €5.6 million, compared with €4.8 million in 2015.

The discount rates applied are obtained by reference to the yield on investment grade (AA) corporate bonds with the same maturity as that of the obligation. In accordance with IAS 19 revised, rates of return on assets are determined by reference to discount rates on the obligations. A 0.50 point increase or decrease in the discount rate would lead to a €16.1 million decrease or a €18.0 million increase in Hermès Group’s pension provision respectively, with the balancing entry recognised in equity.

25.3 Change in provisions recognised in the statement of financial position

Defined-benefit pension plans

Other defined- benefit plans

Defined-benefit pension plans

Other defined- benefit plans

2016

2015

In millions of euros

Provisions as at 1 January Foreign currency adjustments

149.0

10.8

159.8

120.7

8.2 0.2 2.8

128.9

2.1

0.1 2.9

2.2

4.3

4.5

Cost according to statement of profit or loss

16.2 (4.1) 14.4

19.1 (4.8) 14.4

14.5 (4.5) 12.7

17.3 (5.1) 12.7

Benefits/contributions paid Actuarial gains and losses

(0.7)

(0.6)

-

-

Change in scope

0.2

0.0

0.2

1.1 0.2

0.0 0.2

1.1 0.4

Others

(1.8)

(0.1) 13.0

(1.9)

Provisions as at 31 December

176.0

189.0

149.0

10.8

159.8

25.3.1 Reconciliation of the value of post-employment and other employee benefit obligations

5

Defined-benefit pension plans

Other defined- benefit plans

Defined-benefit pension plans

Other defined- benefit plans

2016

2015

In millions of euros

Present value of obligations at 1 January

219.9

10.8

230.7

186.0

8.2 0.2 0.9 0.1

194.2

Foreign currency adjustments

2.5

0.1 1.2 0.2

2.6

8.0

8.2

Service cost Interest cost Benefits paid

14.5

15.7

13.2

14.2

2.9

3.1

2.9

3.1

(3.9)

(0.7)

(4.6)

(6.2)

(0.6)

(6.9)

Employee contributions

1.7 2.0

-

1.7 2.2

1.7 7.4 0.6 5.8

-

1.7 8.1 0.8 5.5 0.4 1.1 0.4

Experience gains and losses

0.2 0.0 0.4 0.8 0.0

0.7 0.1

Actuarial gains and losses from demographic assumptions Actuarial gains and losses from financial assumptions

(2.6) 15.6 (0.5)

(2.6) 16.0

(0.2)

Plan changes

0.3 0.2

(0.8)

1.2

Change in scope

0.2

1.1 0.2

-

Others

(1.8)

-

(1.8)

0.2

Present value of obligations as at 31 December

250.3

13.0

263.3

219.9

10.8

230.7

2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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