HERMÈS - 2019 Universal Registration Document

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

EMPLOYEES

NOTE 27

A geographical breakdown of the workforce is as follows:

31/12/2019

31/12/2018

France

9,522 1,652 4,243

8,846 1,510 3,928

Europe (excl. France) Other geographical areas

TOTAL

15,417

14,284

The breakdown by category is as follows:

31/12/2019

31/12/2018

Production

7,053 5,828 2,536

6,572 5,440 2,272

Sales

Other (design, communication and administration)

TOTAL

15,417

14,284

Employee expenses in 2019 totalled €1,253.7 million, compared with €1,126.3 million in 2018.

POST-EMPLOYMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS

NOTE 28 Description of plans 28.1

28.1.2 DEFINED BENEFIT PLANS Under these plans, the employer assumes an obligation toward its employees. If these plans are not entirely funded in advance, a provision is recorded. For the Group, the main defined-benefit plans apply mainly to: departure or retirement benefits in France, Belgium, Italy, Turkey, s Greece, India, Thailand, Taiwan and Japan: these are lump sum payments calculated based on employee length of service and annual salary at the time of retirement. These obligations are partially or entirely externalised depending on the country; supplementary pension plans in France or abroad (Switzerland, s Canada).

Hermès Group employees are eligible for short-term benefits (paid leave, sick leave, profit-sharing), long-term benefits (long-service awards), post-employment benefits under defined contribution/defined benefit plans (mainly retirement benefits, and supplemental pension plans) and other long-term benefits. Post-employment benefits are awarded either through defined contribution plans or through defined-benefit plans. 28.1.1 DEFINED CONTRIBUTION PLANS Under these plans, regular payments are made to outside organisations, which are responsible for their administrative and financial management. These plans release the employer from any subsequent obligation, as the outside organisation takes responsibility for paying amounts due to employees (basic Social security old-age plan, ARRCO/AGIRC supplemental pension plans, defined contribution pension funds).

< 1 year

> 1 year 270.0 270.0

2019

< 1 year

> 1 year 196.0 196.0

2018

In millions of euros

Post-employment and similar benefit obligations

18.2 18.2

288.2 288.2

6.9 6.9

202.9 202.9

TOTAL

28.1.3 OTHER LONG-TERM BENEFITS Other long-term benefits for the Group include:

long-service awards in Japan, Asia-Pacific, Australia, Switzerland and s England: long-service in certain foreign subsidiaries is compensated by the allocation of bonuses on specific anniversary dates.

long-service awards in France: these awards provide compensation s for long-standing services. The awards are issued along with payment of a bonus, under the terms of a collective agreement, company-wide agreement or decision by the relevant company or works council;

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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