HERMÈS - 2019 Universal Registration Document

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

EXPOSURE TO MARKET RISKS

NOTE 18

Most of the Company’s foreign exchange risk exposure comes from the sales of its production subsidiaries denominated in foreign currencies. These risks are generally fully hedged, based on highly probable future cash flows, using forward currency sales or options that are eligible for hedge accounting.

Net currency position 18.1

Monetary assets/(liabilities)

Future cash flows

Net position before hedging

Net position after hedging

Sensitivity of 10%

Derivatives 1

Hedging ratio

In millions of euros

As at 31 December 2019 Singapore dollar

1.8 7.3 0.2 0.3

107.0

108.8 101.5

(108.6) (103.8)

0.2

100% 102% 103% 101% 106% 100%

0.0

Yuan

94.2 79.8 73.2

(2.4) (2.2) (0.6) (3.8) (0.2)

(0.3) (0.2) (0.1) (0.4) (0.0)

Yen

80.0 73.5 64.5 63.2 18.7

(82.2) (74.0) (68.3) (63.4) (18.5)

Hong Kong dollar

US dollar

(61.9)

126.3

Australian dollar Other currencies

60.1 (7.1)

3.1

25.8

0.2

99%

0.0

SUMMARY

0.7

509.4

510.1

(518.8)

(8.7)

102%

(1.0)

As at 31 December 2018 US dollar

(281.5)

15.2 66.3 65.6

(266.3)

262.9 (73.9) (69.6) (12.2)

(3.3) (0.7) (2.9) (3.0) (0.9) (3.4)

99%

(0.4) (0.1) (0.3) (0.3) (0.1) (0.4) (1.6)

Yuan

7.0 1.1 2.5 0.7

73.3 66.7

101% 104% 133% 120% 127%

Yen

Singapore dollar Hong Kong dollar Other currencies

6.6 3.7

9.2 4.4

(5.3)

(0.5)

13.1

12.5

(15.9)

SUMMARY

(270.7)

170.5

(100.2)

86.0

(14.2)

86%

Purchase/(Sale). (1)

Analysis of currency agreements 18.2 Hedging operations are performed over-the-counter, exclusively with leading banks. The Company therefore does not incur any significant counterparty risk.

Nominal amounts of derivatives used to hedge foreign exchange risk

Market value of contracts as at 31 December 2019 1

Nominal amounts of derivatives

In millions of euros

6

Options purchased US dollar puts US dollar collars Singapore dollar puts Singapore dollar collars Japanese yen puts Japanese yen collars Chinese yuan puts Chinese yuan collars Hong Kong dollar puts Hong Kong dollar collars

50.7

50.7

1.3 4.5 0.7 1.6 0.6 2.7 0.9 4.2 0.7 2.3 3.5 2.3 1.4 5.1 2.8

279.0

279.0

46.8

46.8

232.1

232.1

32.1

32.1

236.8

236.8

20.0

20.0

220.4

220.4

32.6

32.6

177.8

177.8

1,328.3

1,328.3

19.5

Forward currency agreements 2 US dollar

(212.2) (189.1) (146.2) (171.8) (137.3)

(212.2) (189.1) (146.2) (171.8) (137.3)

Yen

Yuan

Singapore dollar Hong Kong dollar Other currencies

32.7

32.7

(1.0) 14.1

(823.9)

(823.9)

Currency swaps 2 Australian dollar

60.0

60.7

(1.0) (0.2)

US dollar

(49.1)

(62.4)

Yuan

9.7

10.3

0.0

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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