HERMÈS - 2018 Registration document

Comments on the financial year and outlook Comments on the summary consolidated statement of cash flows

COMMENTS ON THE SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS

4.2

2018

2017

in millions of euros

Operating cash flows

1,682.7

1,580.1

Change in working capital requirements Cash flows related to the activity Cash flows related to investing activities

76.7

25.4

1,759.4 (239.3)

1,605.6 (346.7) (265.2) (142.7) (590.9) (401.9) (187.9) 3.6

of which operating investments of which financial investments

(312.3)

(80.0)

of which proceeds from sale of operating assets Cash flows related to financing activities

69.1

(1,019.6)

of which dividends paid

(958.3)

of which treasury share buybacks net of disposals

(59.7)

Foreign currency translation adjustment and change in scope

52.8

(76.3) 591.8

CHANGE IN NET CASH POSITION Net cash at the end of the period

553.4

4

3,465.1 3,615.1

2,911.7 3,049.9

Restated net cash position 1

(1) Restated net cash includes cash investments that do not meet IFRS cash equivalent criteria as a result of their original maturity of more than three months.

FINANCIAL POSITION

€3,465 million at 31 December 2018 compared with €2,912 million at 31 December 2017. After taking into account non-liquid financial investments excee- ding three months, adjusted net cash stood at €3,615 million versus €3,050million as at 31 December 2017, up by €565million. Strong ear- nings growth drove up shareholders’ equity attributable to owners of the parent to€5,503million as at 31December 2018 versus €5,039million as at 31 December 2017.

4.2.1

Operating cash flows totalled €1,682.7 million, compared with €1,580.1 million in 2017. After taking operating investments into account (€312million), free cash flow comes to €1,447 million, an increase of 8%. It enabled the Group to finance all capital expenditure (€312 million), the distribution of an ordinary dividend (€428 million) and an exceptional dividend (€521 mil- lion), and the buyback of shares (€60 million). Net cash amounted to

The reconciliation of free cash flow 2 with the Group’s statement of cash flows is as follows:

2018

2017

In millions of euros

Cash flows related to operating activities s s Operating cash flows s s Change in working capital requirements

1,682.7

1,580.1

76.7

25.4

Sub total I

1,759.4

1,605.6

Cash flows related to investing activities s s Operating investments

(312.3) (312.3) 1,447.3

(265.2) (265.2) 1,340.4

Sub total II

FREE CASH FLOW (I-II)

(2) free cash flow = operating cash flows + change in working capital requirement – operating investments

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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