Hermès - Registration Document 2016

PARENT COMPANY FINANCIAL STATEMENTS

NOTE TO THE FINANCIAL STATEMENTS

As at 31 December 2016, the amounts drawn on these credit facilities amounted to €11 million and €30 million, respectively. Also,theamountofthesubsidiaries’tax lossesthatHermèsInternational is liable for refunding to its subsidiaries under the Group tax consolida- tion agreement amounted to €132.6 million as at 31 December 2016, versus €109.4 million as at 31 December 2015.

Moreover, two “umbrella” sureties have been granted to the HSBC and BNP Paribas banks for a maximum amount of €75 million and €100 mil- lion to give subsidiaries designatedbyHermès International access to an aggregate group banking facility. The amounts drawn by the subsidiaries are re-invoiced on the basis of a rate that aligns with the market banking conditions.

EMPLOYEES

NOTE 16

The Company’s average number of employees is broken down as follows:

31/12/2016

31/12/2015

Executives and managers Non-management staff

355

339

29

30

TOTAL

384

369

are now attached to each employee and follow employees throughout their working lives, irrespective of employer.

As part of the reformof professional training, the individual training entit- lement has been replaced by the personal training account with effect from 1 January 2015. Entitlements under the personal training account

POST-EMPLOYMENT BENEFIT OBLIGATIONS

NOTE 17

For FY 2016, the following actuarial assumptions were used:

As at 31 December 2016, the value of post-employment benefit obliga- tions amounted to €92.0million versus €78.1million as at 31December 2015. Amounts due in respect of statutory retirement benefits and sup- plemental pension plans have been paid over to an insurance company; the value of the funds is €23.8 million. A provision of €15.4 million has been accrued to cover the remainder of these obligations. After applying the “corridor” method, actuarial gains and losses amounted to €65.3 million as at 31 December 2016 compared with €61.9 million as at 31 December 2015.

retirement age:

62 to 65 years of age

s

increase in salaries:

3 to 4%

s

discounting rate:

1.0% to 1.2%

s

s expected rate of return on plan assets

3.0%

6

COMPENSATION OF CORPORATE OFFICERS

NOTE 18

Gross aggregate compensation paid to Corporate Officers in respect of 2016 amounted to €4.2 million, including €0.4 million in directors’ fees.

2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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