HERMÈS - 2019 Universal Registration Document

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PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

NET CASH POSITION

NOTE 16

2019

2018

In millions of euros

Marketable securities Cash at bank and in hand

3,032.1

1,919.4

434.0

469.5

Bank overdrafts

(0.3)

(0.3)

NET CASH POSITION

3,465.8

2,388.6

Treasury shares are excluded from the marketable securities presented in net cash.

RELATED-PARTY TRANSACTIONS

NOTE 17

Trademark license agreements: Hermès International receives brand s royalties from Hermès Sellier (€170.7 million), Comptoir Nouveau de la Parfumerie (€18.4 million), La Montre Hermès (€5.6 million) and Faubourg Italia (€0.2 million); SIFAH: SIFAH invoiced leases for the premises located at s 26/28/30/32, rue du Faubourg-Saint-Honoré for €5.4 million; Studio des Fleurs: Studio des Fleurs offers photography and s retouching services for packshots of e-commerce products. The amounts paid in 2019 came to €3.2 million. MOCE: MOCE (“EatMe” brand) provides fast food services on the s Hermès International site located at 12 rue d’Anjou. The amounts paid in 2019 came to €0.1 million. RDAI: The architectural firm RDAI is involved in the design and interior s layout work of the headquarters, as well as the assignment consisting of design work to apply the architectural concept to all Hermès stores. The amounts paid in 2019 came to €0.1 million.

Transactions with companies accounted for by the equity method were not material by comparison with the overall activities of Hermès International during financial year 2019. The companies mentioned below are considered related parties insofar as certain members of management of the Company or certain members of the Supervisory Board or Executive Management Board of Émile Hermès SARL have personal interests therein and exercise significant influence. Relationships with related parties are summarised as follows: Émile Hermès SARL, Active Partner: a société à responsabilité limitée s à capital variable (private limited company with variable capital) whose partners are the direct descendants of Mr Émile-Maurice Hermès and his wife. The Executive Chairman of the Company is Mr Henri-Louis Bauer and the Company has an Executive Management Board. Each year, Hermès International pays 0.67% of the net income of the financial year to the Active Partner. In addition, Hermès International charges Émile Hermès SARL for certain expenses incurred. Hermès International charged back €0.5 million in this respect in 2019 (including €0.2 million in respect of services provided);

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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