HERMÈS - 2019 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25.2.1 NET CURRENCY POSITION

As at 31 December 2019

Future cash flows

Net position before hedging

Net position after hedging Hedging ratio

Monetary assets/(liabilities) 1

Derivatives 2

In millions of euros

US dollar

5.9

647.2 491.9 427.3 395.5 344.6

653.1 652.2 448.4 416.7 374.1

(683.2) (630.2) (450.1) (418.0) (366.7)

(30.1)

105%

Yuan

160.3

22.0 (1.6) (1.3)

97%

Singapore dollar

21.1 21.3 29.5

100% 100%

Yen

Hong Kong dollar

7.4 2.0

98%

(409.1)

93.6

(315.6)

317.6

101% 100%

Euro 3

Pound sterling Australian dollar

(13.7)

130.9

117.2 107.8

(117.7) (107.1)

(0.5)

62.5

45.3 59.1 48.5 41.2 77.5

0.8

99%

Swiss franc

3.7 7.9

62.9 56.4 51.5

(66.1) (55.8) (50.6)

(3.3)

105%

Canadian dollar

0.6 0.8 6.1 2.9

99% 98% 94%

Thai baht

10.3 29.4

Other currencies

107.0

(100.8)

SUMMARY 100% Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three (1) months from the date of acquisition. Monetary liabilities are comprised of financial liabilities as well as operating liabilities and various liabilities. Purchase/(Sale). (2) Euro foreign exchange risk for subsidiaries having a different functional currency. Exceptionally, this may include internal transactions in euros, excluding sales of (3) goods with subsidiaries that have a different functional currency. (70.9) 2,802.6 2,731.7 (2,728.8)

As at 31 December 2018

Monetary assets/(liabilities) 1

Future cash flows

Net position before hedging

Net position after hedging Hedging ratio

Derivatives 2

In millions of euros

5

Yuan

145.1

371.8 356.3 284.9 262.7 500.0 106.4

516.9 375.6 337.6 290.3 285.2 102.9

(510.0) (374.5) (341.9) (295.8) (293.2) (107.5)

6.9 1.1

99%

Yen

19.3 52.7 27.6 (3.5) 14.4 10.1

100% 101% 102% 103% 105%

Singapore dollar Hong Kong dollar

(4.3) (5.5) (8.0) (4.7)

US dollar

(214.8)

Pound sterling

Euro 3

80.0 52.0 42.1 37.8 32.9 56.6

94.4 62.1 47.4 42.6 37.2 75.9

(91.7) (66.4) (47.1) (42.6) (36.3) (71.8)

2.7

97%

Swiss franc

(4.4)

107%

Canadian dollar Australian dollar

5.3 4.8 4.4

0.4

99%

(0.1)

100%

Thai baht

0.9 4.1

98% 95%

Other currencies

19.2 84.4

SUMMARY 100% Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three (1) months from the date of acquisition. Monetary liabilities are comprised of financial liabilities as well as operating liabilities and various liabilities. Purchase/(Sale). (2) Euro foreign exchange risk for subsidiaries having a different functional currency. Exceptionally, this may include internal transactions in euros, excluding sales of (3) goods with subsidiaries that have a different functional currency. 2,183.4 2,267.9 (2,278.7) (10.9)

25.2.2 SENSITIVITY TO EXCHANGE RATE FLUCTUATIONS The sensitivity of equity to foreign exchange risk is analysed for the cash flow hedge reserve. The impact on equity corresponds to the change in the market value of cash flow hedging derivatives relative to the current variance in exchange rates, ceteris paribus.

A 10% appreciation in the currencies to which the Group is exposed at the closing date would have resulted in a -€219.5 million decrease in equity (before tax) in the fair value reserve. An impairment of 10% would have an impact of +€215.1 million (before tax). Moreover, a 10% appreciation in the currencies to which the Group is exposed would lead to an impact of +€0.3 million on net income at the closing date. A -0.3% impairment would have led to an impact of -€0.3 million.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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