Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2.4 Adjusted free cash flows For management purposes, the Hermès Group sees all lease payments as items affecting operating activities. IFRS16 considers fixed lease payments as the sum of the repayment of the principal portion of the lease liability and the payment of financial interests. Consequently, the Group follows the following APM:

adjusted free cash flows: correspond to the cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS16 (aggregates in the consolidated statement of cash flows). s

The reconciliation of this indicator with the Group’s statement of consolidated cash flows presented in section 5.5 is as follows:

2022

2021

In millions of euros

Operating cash flows

4,111

3,060

+ Change in working capital requirements

73

346

- Operating investments

(518)

(532)

- Repayment of lease liabilities

(261)

(212)

ADJUSTED FREE CASH FLOWS

3,404

2,661

SEGMENT INFORMATION

NOTE 3

Accounting principles Given the Group’s current structure, organised into geographical areas placed under the responsibility of operational Senior Executives in charge of applying the strategy defined by the Executive Committee (the principal operational decision‑maker), the Group has determined

that the geographical areas constitute the operating segments with reference to the fundamental principle of IFRS8. Segment information is presented after eliminations and restatements.

Revenue by destination geographical area breaks down as follows:

France €1,064M

Other €207M

Americas €2,138M

Europe (excl. France) €1,536M

Japan €1,101M

Asia-Pacific (excl. Japan) €5,556M

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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