Hermes International : 2021 half year report

JUNE 2021

HALF-YEAR FINANCIAL REPORT

CONTENTS

1		KEY FIGURES	3
			Key consolidated data for the first half of 2021	3
2		HALF-YEAR BUSINESS REPORT	5
		2.1	Half-year highlights	5
		2.2	First-half activity	5
			Sales by geographical area at the end of June	5
			Sales by métier at the end of June	6
		2.3	Comments on the consolidated financial statements	7
			2.3.1 Income statement	7
			2.3.2 Cash flows and investments	8
			2.3.3 Financial position	8
		2.4	Outlook	8
		2.5	Risks and uncertainties	8
		2.6	Related-party transactions	9

• CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AT 30 JUNE 2021	11
3.1	Consolidated income statement	11
3.2	Consolidated statement of comprehensive income	11
3.3	Consolidated balance sheet	12
3.4	Consolidated statement of changes in equity	13
3.5	Consolidated statement of cash flows	14

3.6 Notes to the condensed interim consolidated financial

statements	15
Note 1	Accounting principles and policies	16
Note 2	Changes in the scope of consolidation	16
Note 3	Alternative performance measures	17
Note 4	Seasonal nature of the business	18
Note 5	Segment information	18
Note 6	Cost of sales	18
Note 7	Sales and administrative expenses	19
Note 8	Other income and expenses	19
Note 9	Net financial income	19
Note 10	Income tax	20
Note 11	Earnings per share	20

Note 12	Goodwill	20
Note 13	Intangible assets	21
Note 14	Leases	21
Note 15	Property, plant and equipment	22
Note 16	Investment property	23
Note 17	Financial assets	23
Note 18	Investments in associates	23
Note 19	Loans and deposits	23
Note 20	Inventories and work-in-progress	24
Note 21	Trade receivables and other assets	24
Note 22	Cash and cash equivalents	25
Note 23	Equity	25
Note 24	Non-controlling interests	27
Note 25	Exposure to market risks	27
Note 26	Provisions	27
Note 27	Employees	28
Note 28	Post-employment and other employee benefit
	obligations	28
Note 29	Accounts payable and other liabilities	29
Note 30	Off-balance sheet commitments	29
Note 31	Related-party transactions	29
Note 32	Share-based payments	29
Note 33	Subsequent events	29

• STATUTORY AUDITORS' REPORT ON THE

HALF-YEAR FINANCIAL INFORMATION

31

• STATEMENT BY THE PERSONS RESPONSIBLE

FOR THE INTERIM FINANCIAL REPORT

35

HALF-YEAR

FINANCIAL

REPORT

JUNE 2021

This document is a free translation into English of the original French "Rapport financier semestriel". It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

HALF-YEAR FINANCIAL REPORT 2021 HERMÈS INTERNATIONAL

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KEY FIGURES

1. KEY FIGURES

1

KEY CONSOLIDATED DATA FOR THE FIRST HALF OF 2021

	H1 2021	2020 Financial	H1 2020	H1 2019
In millions of euros	year
Revenue	4,235	6,389	2,488	3,284
Growth at current exchange rates vs. n-1	70.2%	(7.2)%	(24.2)%	15.1%
Growth at constant exchange rates vs. n-11	76.7%	(6.0)%	(24.9)%	12.0%
Recurring operating income 2	1,722	1,981	535	1,144
In % of revenue	40.7%	31.0%	21.5%	34.8%
Operating income	1,722	2,073	535	1,144
In % of revenue	40.7%	32.4%	21.5%	34.8%
Net income attributable to owners of the parent	1,174	1,385	335	754
In % of revenue	27.7%	21.7%	13.5%	23.0%
Operating cash flows	1,487	1,993	634	971
Operating investments	214	448	162	170
Adjusted free cash flow 3	1,236	995	27	618
Equity attributable to owners of the parent	8,024	7,380	6,340	5,763
Net cash position 4	5,326	4,717	3,742	3,532
Restated net cash position 5	5,521	4,904	3,922	3,740
Workforce (number of employees)	16,966	16,600	15,698	14,751

1. Growth at constant exchange rates is calculated by applying, for each currency, the average exchange rates of the previous period to the revenue for the period.
2. Recurring operating income is one of the main performance indicators monitored by the Group's management. It corresponds to operating income excluding non-recurring items having a significant impact that may affect understanding of the Group's economic performance.
3. Adjusted free cash flow is the sum of cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS 16 (aggregates in the consolidated statement of cash flows).
4. Net cash position includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short-term borrowings and financial liabilities on the liabilities side. Net cash position does not include lease liabilities recognised in accordance with IFRS 16.
5. The restated net cash position corresponds to net cash position plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities.

HALF-YEAR FINANCIAL REPORT 2021 HERMÈS INTERNATIONAL

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