HERMÈS - 2019 Universal Registration Document

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL COMMITMENTS

NOTE 19

31/12/2019

31/12/2018

In millions of euros

Bank guarantees given 1

1.9

0.7

Irrevocable commitments to purchase financial assets

22.5

25.0

Other commitments 2

161.2 185.6

108.4 134.1

TOTAL

The guarantees subscribed on behalf of the subsidiaries are the object of commissions that are re-invoiced to them. (1) The other commitments concern property leases signed or guaranteed by Hermès International. (2)

As at 31 December 2019, the amounts drawn on these credit facilities amounted to €3 million and €21 million, respectively.

Moreover, two “umbrella” sureties have been granted to the HSBC and BNP Paribas banks for a maximum amount of €75 million and €100 million to give subsidiaries designated by Hermès International access to an aggregate group banking facility. The amounts drawn by the subsidiaries are re-invoiced on the basis of market conditions.

AVERAGE NUMBER OF EMPLOYEES

NOTE 20

The Company’s average number of employees is broken down as follows:

31/12/2019

31/12/2018

Executives and managers Non-management staff

414

380

34

34

TOTAL

448

414

POST-EMPLOYMENT BENEFIT OBLIGATIONS

NOTE 21

As at 31 December 2019, the value of post-employment benefit obligations amounted to €125.8 million versus €80.3 million as at 31 December 2018. Amounts due in respect of statutory retirement benefits and supplemental pension plans have been paid over to an insurance company; the value of the funds is €5.8 million. After applying the “corridor” method, actuarial gains and losses amounted to €67.4 million as at 31 December 2019 compared with €51.9 million as at 31 December 2018. The provision recorded at end-December 2019 amounted to €38.7 million and corresponds to the total value of the commitment

(€125.8 million), less the fair value of pension assets (€5.8 million), and actuarial gains and losses (€67.4 million) plus past service costs (€14.0 million).

For FY 2019, the following actuarial assumptions were used:

6

retirement age: s

62 to 65 years

increase in salaries: s

3 to 4%

discount rate: s

0.3% to 0.5% 2.5% to 3.0%

expected rate of return on plan assets: s

COMPENSATION OF CORPORATE OFFICERS

NOTE 22

Gross aggregate compensation paid to Corporate Officers in respect of financial year 2019 amounted to €5.4 million, including €0.6 million related to the compensation of members of the Supervisory Board.

SUBSEQUENT EVENTS

NOTE 23

None.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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