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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
227
PARENT COMPANY FINANCIAL STATEMENTS
6
NOTE TO THE FINANCIAL STATEMENTS
NOTE 14
RELATED-PARTY TRANSACTIONS
Transactions with companies accounted for by the equity method were
not material by comparisonwith the overall business activities of Hermès
International in 2016.
The companies mentioned below are considered related parties insofar
as certainmembers ofmanagement of theCompany or certainmembers
of the Supervisory Board have personal interests therein and exercise
significant influence. Relationships with related parties are summarised
as follows:
s
RDAI firm: RDAI architects were appointed to carry out design work on
the internal layout of the offices at 10-12 rue d’Anjou, as well as the
annual assignment consisting of design work to apply the architectu-
ral concept to all Hermès stores. The amounts paid in 2016 are not
significant (€8 thousand);
s
Émile Hermès SARL, Active Partner: Émile Hermès SARL is a société
à responsabilité limitée à capital variable (limited company with
variable capital). Its partners are the direct descendants of Mr
Émile-Maurice Hermès and his wife. Émile Hermès SARL’s Executive
Chairman is Mr Henri-Louis Bauer. The Company is governed by an
Executive Management Board.
Each year, Hermès International pays 0.67% of the distributable profits
to the Active Partner.
In addition, Hermès International charges ÉmileHermès SARL for certain
expenses incurred. Hermès International charged back €0.2 million in
this respect in 2016 and in 2015.
NOTE 15
EXPOSURE TO MARKET RISKS AND FINANCIAL COMMITMENTS
15.1
Currency risk
Most of the Company’s foreign exchange risk exposure comes from sales 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.