HERMES
2022 Full Year Results
Sales momentum and particularly robust results in 2022
Revenue amounted to €11.6 billion
(+29% at current exchange rates and +23% at constant exchange rates)
Recurring operating income reached €4.7 billion (+33%)
Net profit amounted to €3.4 billion (+38%)
Paris, 17th February 2023
The group’s consolidated revenue amounted to €11,602 million in 2022, up 29% at current exchange rates and 23% at constant exchange rates compared to 2021. Recurring operating income amounted to €4,697 million, i.e. 40.5% of sales. Net profit (group share) reached €3,367 million, representing net profitability of 29%.
In the fourth quarter 2022, the great sales momentum recorded at the end of September continued, with sales reaching €2,991 million, an increase of 26% at current exchanges rates and 23% at constant exchange rates.
Axel Dumas, Executive Chairman of Hermès, said: “In 2022, Hermès had an exceptional year thanks notably to the good performance of its international markets. This success reinforces our approach as an artisanal and highly integrated company, mainly in France: a design house that offers objects conceived to be functional, with an assertive style and uncompromising quality. The year underpins the relevance of our responsible and sustainable model.”
Over the last three years, Hermès created 4,300 jobs, including 2,900 in France, and reinforced its operating investments by €1.5 billion, including c. 60% in France.
Sales by geographical area at the end of December
(at constant exchange rates unless otherwise indicated)
At the end of December, sales growth was remarkable across geographical areas. Sales increased considerably both in group stores (+23% at constant exchange rates) and in wholesale activities (+26%), which benefited from the recovery in travel retail. Hermès continued to develop its exclusive distribution network, while online sales pursued their upward trend worldwide.
- Asia excluding Japan (+22%) remained very dynamic throughout the geographical area. Sales performance in Greater China was sustained. In October, a fourth store opened in the Qiantan district in Shanghai, Mainland China, and Hermès inaugurated a store in Pangyo, in South Korea. Several stores reopened after renovation and extension work, such as the Hyundai Coex store in Seoul in December and the Hong Kong international airport store in November.
- Japan (+20%) recorded a steady, sustained increase in sales. In November, the Takashimaya store in Nagoya reopened after renovation and extension in a new location, and the Hermès in the Making exhibition showcased the house’s know-how in Kyoto.
- The Americas (+32%) saw an exceptional year in 2022. After the April opening of a new store in Austin, a new maison was inaugurated at 706 Madison Avenue in New York in September. This store offers clients an unprecedented experience of the creativity of Hermès and confirms the house’s attachment to the sustainability of objects with a whole floor dedicated to repairs. In Mexico, the store in Guadalajara reopened in October after renovation.
- Europe excluding France (+18%) recorded sustained growth, thanks to the loyalty of local clients and the resumption of tourist traffic. The Paseo de Gracia store in Barcelona was inaugurated in November, after being renovated and extended.
- France (+27%) improved strongly, with an acceleration at year-end thanks to high demand from both national and international clients. The store in Strasbourg reopened in November, after renovation and extension, in a new location in the city’s historical centre.
Sales by business line at the end of December
(at constant exchange rates unless otherwise indicated)
At the end of December 2022, all the business lines confirmed their high levels of sales, with Ready-to-Wear and Accessories, Watches and Other Hermès business lines posting a remarkable increase, reflecting the huge desirability of the house.
The Leather Goods and Saddlery business line (+16%) performed particularly well, benefitting from very sustained demand and a favourable comparison basis in the 4th quarter. The growth in production capacities continued with five site projects. These new capacities will reinforce the nine centres of expertise located across the national territory, with their production units, workshops and training centres. In 2023, Hermès will open two new leather goods workshops: one in Louviers (Normandie) and the other one in la Sormonne (Ardennes). The projects for new workshops sites in Riom (Puy-de-Dôme), L’Isle-d’Espagnac (Charente) and Loupes (Gironde) are ongoing. Hermès continues to reinforce its local anchoring in France in regions with strong manufacturing know-how, while also developing employment and training.
The Ready-to-Wear and Accessories division (+36%) pursued its strong growth, thanks to the success of the ready-to-wear, fashion accessories and footwear collections. The men’s and women’s spring-summer 2023 collections, mixing casual, sophisticated, bold and light spirits, were respectively presented in June and October. Demand was also strong for fashion accessories and footwear, with models that express the abundance of the house’s know-how.
The Silk and Textiles business line (+20%) achieved a splendid performance, supported by the growth in production capacities and the success of the collections, especially through the exploration of exceptional materials and artisanal know-how, such as hand-weaving and leather work.
Perfume and Beauty business line (+15%) gained from the successful launches of new creations, such as Terre d’Hermès Eau Givrée, the Eau de parfum H24, and the Colognes with Eau de basilic pourpre. Two years after its creation, the Hermès Beauty business line continues its strong growth, thanks to the limited editions of Rouge Hermès and the launch of Hermès Plein Air, the new chapter for complexion.
The Watches business line (+46%) confirmed its outstanding performance, displaying singular creativity and unique style nurtured by all the other métiers of the house, as well as exceptional watch-making know-how. In November 2022, the Arceau Le temps voyageur watch won two awards at the Grand Prix d’Horlogerie de Genève (Geneva Watchmaking Grand Prix). The new Hermès H08 men’s watch confirmed its success, alongside the house’s classic models.
The Other Hermès business lines (+30%), which include Jewellery and Homeware, continued on their upward trend, highlighting the full creative strength and singularity of the house. The seventh haute bijouterie collection, called Les jeux de l’ombre, was presented in Paris this summer and in New York this autumn.
Particularly robust results
Recurring operating income increased by 33% to €4,697 million compared to €3,530 million in 2021. Thanks to the leverage effect generated by the strong sales growth and the exceptional performance of the collections, annual recurring operating profitability reached its highest level ever at 40.5%, up from 39.3% in 2021.
Consolidated net profit (group share) amounted to €3,367 million (29% of sales), an increase of 38% from €2,445 million in 2021.
Operational investments represented €518 million and adjusted free cash flow reached €3,405 million.
After distribution of the ordinary dividend (€837 million) and inclusion of share redemptions (€116 million for 104,269 shares outside the liquidity contract), the restated net cash position increased by €2,672 million to €9,742 million compared to €7,070 million as at 31 December 2021.
A responsible, sustainable model
The group pursued its dynamic recruitment, adding some 2,100 new hires to the workforce this year. At the end of December 2022, the group employed 19,700 people, including 12,400 in France. True to its commitment as a responsible employer and in recognition of the employees’ contribution to the performance and success of the group, Hermès will pay an exceptional bonus of €4,000 in 2023, to all the employees worldwide.
Hermès strengthened its commitments in the fields of education and knowledge transmission with the launch of the École des artisans de la vente in April and the rollout of the École Hermès des savoir-faire, opening a new Apprentice Training Centre at the Ardennes regional hub of expertise. The group has made another five-year commitment in an amount of €61 million for the actions of the Fondation d’Entreprise Hermès.
In line with the house’s commitments for the fight against climate change, Hermès pursued its actions in line with the emissions reduction targets validated by the Science Based Target initiative (SBTi). Hermès aims to reduce emissions by 50.4% on scope 1 and 2 in absolute value and by 58.1% in intensity on scope 3, over the 2018-2030 period. The house already offsets 100% of scope 1&2 emissions, and most of transport-related emissions, thanks to high environmental and societal value programmes. Regarding the protection of biodiversity and resources, the house also introduced a demanding responsible construction standard that integrates sustainability issues across the life cycle of real-estate projects. It was certified in November 2022 by an independent third party, as being more demanding that the main global standards.
In 2022, Hermès again saw an improvement in non-financial ratings reflecting the strength of the CSR commitments and the reinforced transparency. MSCI published a greatly improved “AA” rating (versus BBB in 2020 and then A in 2021). Sustainalytics ranked the house as the best company in Textiles and Clothing (number 1 out of 191 companies) and in the Luxury Goods sector (number 1 out of 102 companies), with the highest “Negligible Risk” classification. Moody’s ESG Solutions ranked Hermès in 5th position in the Luxury Goods and Cosmetics sector, thus consolidating the group’s position in the CAC40 ESG index. Finally, Hermès joined the CDP’s A-list, making the house one the world’s 330 top-performing companies in environmental matters.
Proposed dividend
At the General Meeting to be held on 20th April 2023, a dividend proposal of €13.00 per share will be made. The €3.50 interim dividend, paid on 22nd February 2023, will be deducted from the dividend approved by the General Meeting.
Outlook
In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.
The group has moved into 2023 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.
Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication.
Inspiration of the creation at Hermès, Astonishment is the theme of the year. The ability to be surprised is a constant source of innovation and dynamism for the house, which will continue to accompany clients with enthusiasm and creativity across 2023.
The press release and the presentation of the 2022 results are available on the group’s website: https://finance.hermes.com
At the Supervisory Board meeting on 16th February 2023, Executive Management presented the audited financial statements for 2022. The audit procedures have been completed and the audit report is under preparation.
The complete consolidated financial statements will be available by 31st March 2023 at the following address https://finance.hermes.com and on the AMF website: www.amf-france.org
Upcoming events:
- 14th April 2023: Q1 2023 revenue publication
- 20th April 2023: General Meeting of shareholders
- 28th July 2023: Publication of H1 2023 results
2022 KEY FIGURES
| In millions of euros | 2022 | 2021 |
| Revenue | 11,602 | 8,982 |
| Growth at current exchange rates vs. n-1 | 29.2% | 40.6% |
| Growth at constant exchange rates vs. n-1 (1) | 23.4% | 41.8% |
| Recurring operating income (2) | 4,697 | 3,530 |
| As a % of revenue | 40.5% | 39.3% |
| Operating income | 4,697 | 3,530 |
| As a % of revenue | 40.5% | 39.3% |
| Net profit – Group share | 3,367 | 2,445 |
| As a % of revenue | 29.0% | 27.2% |
| Operating cash flows | 4,111 | 3,060 |
| Investments (excluding financial investments) | 518 | 532 |
| Adjusted free cash flow (3) | 3,405 | 2,661 |
| Equity – Group share | 12,440 | 9,400 |
| Net cash position (4) | 9,223 | 6,695 |
| Restated net cash position (5) | 9,742 | 7,070 |
| Workforce (number of employees) | 19,686 | 17,595 |
(1) Growth at constant exchange rates is calculated by applying the average exchange rates of the previous period to the current period’s revenue, for each currency.
(2) Recurring operating income is one of the main performance indicators monitored by the group’s General Management. It corresponds to the operating income excluding non-recurring items having a significant impact likely to affect the understanding of the group’s economic performance.
(3) Adjusted free cash flow corresponds to the sum of operating cash flows and change in working capital requirement, less operating investments and repayment of lease liabilities, as per IFRS cash flow statement.
(4) The net cash position includes cash and cash equivalents on the asset side of the balance sheet, less bank overdrafts presented within the short-term borrowings and financial liabilities on the liability side of the balance sheet. It does not include lease liabilities recognised in accordance with IFRS 16.
(5) The restated net cash position corresponds to the net cash position, plus cash investments that do not meet IFRS criteria for cash equivalents as a result of their original maturity of more than three months, minus borrowings and financial liabilities.
INFORMATION BY GEOGRAPHICAL ZONE (a)
| As of Dec. 31st | Evolution /2021 | ||||
| In millions of Euros | 2022 | 2021 | Published | At constant exchange rates | |
| France | 1,064 | 838 | 26.9 % | 26.9 % | |
| Europe (excl. France) | 1,536 | 1,303 | 17.9 % | 18.4 % | |
| Total Europe | 2,600 | 2,141 | 21.5 % | 21.8 % | |
| Japan | 1,101 | 977 | 12.7 % | 19.7 % | |
| Asia-Pacific (excl. Japan) | 5,556 | 4,251 | 30.7 % | 21.9 % | |
| Total Asia | 6,657 | 5,227 | 27.4 % | 21.5 % | |
| Americas | 2,138 | 1,458 | 46.6 % | 31.6 % | |
| Other | 207 | 156 | 32.5 % | 31.5 % | |
| TOTAL | 11,602 | 8,982 | 29.2 % | 23.4 % | |
| 4th quarter | Evolution /2021 | ||||
| In millions of Euros | 2022 | 2021 | Published | At constant exchange rates | |
| France | 311 | 251 | 23.9 % | 23.9 % | |
| Europe (excl. France) | 413 | 398 | 3.8 % | 4.8 % | |
| Total Europe | 724 | 649 | 11.6 % | 12.2 % | |
| Japan | 279 | 267 | 4.6 % | 15.7 % | |
| Asia-Pacific (excl. Japan) | 1,314 | 1,025 | 28.3 % | 24.7 % | |
| Total Asia | 1,593 | 1,292 | 23.4 % | 22.8 % | |
| Americas | 620 | 397 | 56.0 % | 40.8 % | |
| Other | 54 | 42 | 28.8 % | 27.7 % | |
| TOTAL | 2,991 | 2,380 | 25.7 % | 22.9 % | |
(a) Sales by destination.
INFORMATION BY SECTOR
| As of Dec. 31st | Evolution /2021 | ||||
| In millions of Euros | 2022 | 2021 | Published | At constant exchange rates | |
| Leather Goods and Saddlery (1) | 4,963 | 4,091 | 21.3 % | 15.6 % | |
| Ready-to-wear and Accessories (2) | 3,152 | 2,219 | 42.0 % | 35.8 % | |
| Silk and Textiles | 842 | 669 | 25.8 % | 20.3 % | |
| Other Hermès sectors (3) | 1,371 | 1,001 | 37.0 % | 29.6 % | |
| Perfume and Beauty | 448 | 385 | 16.4 % | 15.0 % | |
| Watches | 519 | 337 | 54.2 % | 45.9 % | |
| Other products (4) | 306 | 279 | 9.6 % | 7.6 % | |
| TOTAL | 11,602 | 8,982 | 29.2 % | 23.4 % | |
| 4th quarter | Evolution /2021 | ||||
| In millions of Euros | 2022 | 2021 | Published | At constant exchange rates | |
| Leather Goods and Saddlery (1) | 1,300 | 1,015 | 28.1 % | 25.3 % | |
| Ready-to-wear and Accessories (2) | 775 | 585 | 32.5 % | 29.7 % | |
| Silk and Textiles | 263 | 237 | 11.2 % | 8.7 % | |
| Other Hermès sectors (3) | 348 | 265 | 31.0 % | 27.4 % | |
| Perfume and Beauty | 105 | 97 | 7.8 % | 7.4 % | |
| Watches | 118 | 95 | 24.3 % | 21.4 % | |
| Other products (4) | 82 | 86 | (4.3) % | (5.5) % | |
| TOTAL | 2,991 | 2,380 | 25.7 % | 22.9 % | |
(1) The “Leather Goods and Saddlery” business line includes bags, riding, memory holders and small leather goods.
(2) The “Ready-to-wear and Accessories” business line includes Hermès Ready-to-wear for men and women, belts, costume jewellery, gloves, hats and shoes.
(3) The “Other Hermès business lines” include Jewellery and Hermès home products (Art of Living and Hermès Tableware).
(4) The “Other products” include the production activities carried out on behalf of non-group brands (textile printing, tanning…), as well as John Lobb, Saint-Louis and Puiforcat.
2022 quarterly revenue
| Q1 | Q2 | Q3 | Q4 | 2022 | |||
| Revenue (in €M) | 2,765 | 2,710 | 3,136 | 2,991 | 11,602 | ||
| Growth at current exchange rates | 32.7% | 26.0% | 32.5% | 25.7% | 29.2% | ||
| Growth at constant exchange rates | 27.1% | 19.5% | 24.3% | 22.9% | 23.4% | ||
--------------------------------------------------------------------------------
Extra-financial performances
| RESPONSIBLE EMPLOYER 2,100 Jobs created | DIVERSITY AND INCLUSION 6.4% Direct disability employment rate | GENDER EQUALITY 60% Women managers group |
| LONG-TERM RELATIONSHIPS 20 years Average age of supplier relationships (Top50) | PARTNERS SUPPORT 24 days Average payment terms for suppliers in France | LOCAL SUPPLIERS 66% Of purchases come from France (Top50) |
| CLIMATE 1.5°C Carbon trajectory commitment validated by SBTi | ENERGY TRANSITION 100% Green electricity in France | DURABILITY 202,000 Repairs in workshops |
| TRANSPARENCY AWARDS #1 SBF 120, all categories | SOCIAL RESPONSIBILITY €61m Budget allocated to the Fondation d’entreprise Hermès | PARTNERSHIPS €5.2m Purchases from socially supported organisations |
APPENDIX – EXTRACT FROM CONSOLIDATED ACCOUNTS
Financial statements of the year, including notes to the consolidated accounts, will be available at the end of March 2023 on the website https://finance.hermes.com, together with the other chapters of the Annual Financial Report.
CONSOLIDATED INCOME STATEMENT
| In millions of euros | 2022 | 2021 |
| Revenue | 11 602 | 8 982 |
| Cost of sales | (3 389) | (2 580) |
| Gross margin | 8 213 | 6 402 |
| Sales and administrative expenses | (2 680) | (2 137) |
| Other income and expenses | (836) | (734) |
| Recurring operating income | 4 697 | 3 530 |
| Other non-recurring income and expenses | - | - |
| Operating income | 4 697 | 3 530 |
| Net financial income | (62) | (96) |
| Net income before tax | 4 635 | 3 435 |
| Income tax | (1 305) | (1 015) |
| Net income from associates | 50 | 34 |
| CONSOLIDATED NET INCOME | 3 380 | 2 454 |
| Non-controlling interests | (13) | (8) |
| NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT | 3 367 | 2 445 |
| Basic earnings per share (in euros) | 32,20 | 23,37 |
| Diluted earnings per share (in euros) | 32,09 | 23,30 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| In millions of euros | 2022 | 2021 |
| Consolidated net income | 3 380 | 2 454 |
| Changes in foreign currency adjustments 1 | 126 | 141 |
| Hedges of future cash flows in foreign currencies 1 2 | 129 | (110) |
| 23 | (87) |
| 106 | (23) |
| Assets at fair value 2 | 333 | 87 |
| Employee benefit obligations: change in value linked to actuarial gains and losses 2 | 41 | 9 |
| Net comprehensive income | 4 009 | 2 582 |
| 3 996 | 2 573 |
| 14 | 9 |
(1) Transferable through profit or loss.
(2) Net of tax.
CONSOLIDATED BALANCE SHEET
ASSETS
| In millions of euros | 31/12/2022 | 31/12/2021 |
| Goodwill | - | 42 |
| Intangible assets | 213 | 258 |
| Right-of-use assets | 1 582 | 1 517 |
| Property, plant and equipment | 2 007 | 1 881 |
| Investment property | 8 | 9 |
| Financial assets | 1 109 | 617 |
| Investments in associates | 54 | 51 |
| Loans and deposits | 65 | 59 |
| Deferred tax assets | 555 | 546 |
| Other non-current assets | 39 | 22 |
| Non-current assets | 5 630 | 5 002 |
| Inventories and work-in-progress | 1 779 | 1 449 |
| Trade and other receivables | 383 | 333 |
| Current tax receivables | 19 | 58 |
| Other current assets | 263 | 257 |
| Financial derivatives | 160 | 53 |
| Cash and cash equivalents | 9 225 | 6 696 |
| Current assets | 11 828 | 8 845 |
| TOTAL ASSETS | 17 459 | 13 847 |
LIABILITIES
| In millions of euros | 31/12/2022 | 31/12/2021 |
| Share capital | 54 | 54 |
| Share premium | 50 | 50 |
| Treasury shares | (674) | (551) |
| Reserves | 8 795 | 7 142 |
| Foreign currency adjustments | 303 | 178 |
| Revaluation adjustments | 546 | 83 |
| Net income attributable to owners of the parent | 3 367 | 2 445 |
| Equity attributable to owners of the parent | 12 440 | 9 400 |
| Non-controlling interests | 16 | 12 |
| Equity | 12 457 | 9 412 |
| Borrowings and financial liabilities due in more than one year | 35 | 24 |
| Lease liabilities due in more than one year | 1 629 | 1 529 |
| Non-current provisions | 30 | 26 |
| Post-employment and other employee benefit obligations due in more than one year | 181 | 220 |
| Deferred tax liabilities | 20 | 15 |
| Other non-current liabilities | 103 | 45 |
| Non-current liabilities | 1 998 | 1 860 |
| Borrowings and financial liabilities due in less than one year | 2 | 1 |
| Lease liabilities due in less than one year | 268 | 248 |
| Current provisions | 133 | 115 |
| Post-employment and other employee benefit obligations due in less than one year | 15 | 40 |
| Trade and other payables | 777 | 535 |
| Financial derivatives | 74 | 122 |
| Current tax liabilities | 496 | 347 |
| Other current liabilities | 1 239 | 1 168 |
| Current liabilities | 3 004 | 2 575 |
| TOTAL EQUITY AND LIABILITIES | 17 459 | 13 847 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| In millions of euros | Number of shares | Share capital | Share premium | Treasury shares | Consolidated reserves and net income attributable to owners of the parent | Actuarial gains and losses | Foreign currency adjustments | Revaluation adjustments | ||||
| Financial investments | Hedges of future cash flows in foreign currencies | Equity attributable to owners of the parent | Non-controlling interests | Equity | ||||||||
| As at 1 January 2021 | 105 569 412 | 54 | 50 | (464) | 7 732 | (135) | 38 | 100 | 5 | 7 380 | 11 | 7 391 |
| Net income | - | - | - | - | 2 445 | - | - | - | - | 2 445 | 8 | 2 454 |
| Other comprehensive income | - | - | - | - | - | 9 | 141 | 87 | (110) | 127 | 0 | 128 |
| Comprehensive income | - | - | - | - | 2 445 | 9 | 141 | 87 | (110) | 2 573 | 9 | 2 582 |
| Change in share capital and share premiums | - | - | - | - | - | - | - | - | - | - | - | - |
| Purchase or sale of treasury shares | - | - | - | (88) | (69) | - | - | - | - | (157) | - | (157) |
| Share-based payments | - | - | - | - | 59 | - | - | - | - | 59 | - | 59 |
| Dividends paid | - | - | - | - | (485) | - | - | - | - | (485) | (5) | (490) |
| Other | - | - | - | - | 30 | - | - | - | - | 30 | (2) | 28 |
| As at 31 December 2021 | 105 569 412 | 54 | 50 | (551) | 9 712 | (125) | 178 | 188 | (105) | 9 400 | 12 | 9 412 |
| Net income | - | - | - | - | 3 367 | - | - | - | - | 3 367 | 13 | 3 380 |
| Other comprehensive income | - | - | - | - | - | 41 | 125 | 333 | 129 | 628 | 1 | 630 |
| Comprehensive income | - | - | - | - | 3 367 | 41 | 125 | 333 | 129 | 3 996 | 14 | 4 009 |
| Change in share capital and share premiums | - | - | - | - | - | - | - | - | - | - | - | - |
| Purchase or sale of treasury shares | - | - | - | (123) | 2 | - | - | - | - | (121) | - | (121) |
| Share-based payments | - | - | - | - | 55 | - | - | - | - | 55 | - | 55 |
| Dividends paid | - | - | - | - | (845) | - | - | - | - | (845) | (8) | (852) |
| Other | - | - | - | - | (44) | - | - | - | - | (44) | (2) | (46) |
| AS AT 31 DECEMBER 2022 | 105 569 412 | 54 | 50 | (674) | 12 247 | (85) | 303 | 521 | 25 | 12 440 | 16 | 12 457 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| In millions of euros | 2022 | 2021 |
| CASH FLOWS RELATED TO OPERATING ACTIVITIES | ||
| Net income attributable to owners of the parent | 3 367 | 2 445 |
| Depreciation and amortisation of fixed assets | 341 | 312 |
| Depreciation of right-of-use assets | 266 | 251 |
| Impairment losses | 123 | 65 |
| Mark-to-Market financial instruments | - | (1) |
| Foreign exchange gains/(losses) on fair value adjustments | 12 | (46) |
| Change in provisions | 12 | 28 |
| Net income from associates | (50) | (34) |
| Net income attributable to non-controlling interests | 13 | 8 |
| Capital gains or losses on disposals and impact of changes in scope of consolidation | (1) | (4) |
| Deferred tax expense | (16) | (15) |
| Accrued expenses and income related to share-based payments | 55 | 59 |
| Dividend income | (11) | (10) |
| Other | (0) | (0) |
| Operating cash flows | 4 111 | 3 060 |
| Change in working capital requirements | 73 | 346 |
| Change in net cash position related to operating activities (A) | 4 184 | 3 405 |
| CASH FLOWS RELATED TO INVESTING ACTIVITIES | ||
| Operating investments | (518) | (532) |
| Acquisitions of consolidated shares | (1) | - |
| Acquisitions of other financial assets | (165) | (198) |
| Disposals of operating assets | 1 | 3 |
| Disposals of consolidated shares and impact of losses of control | 0 | - |
| Disposals of other financial assets | 5 | 6 |
| Change in payables and receivables related to investing activities | 32 | 6 |
| Dividends received | 67 | 47 |
| Change in net cash position related to investing activities (B) | (579) | (669) |
| CASH FLOWS RELATED TO FINANCING ACTIVITIES | ||
| Dividends paid | (852) | (490) |
| Repayment of lease liabilities | (261) | (212) |
| Treasury share buybacks net of disposals | (123) | (158) |
| Borrowing subscriptions | - | - |
| Repayment of borrowings | (0) | (8) |
| Change in net cash position related to financing activities (C) | (1 237) | (869) |
| Foreign currency translation adjustment (D) | 159 | 110 |
| CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D) | 2 528 | 1 978 |
| Net cash position at the beginning of the period | 6 695 | 4 717 |
| Net cash position at the end of the period | 9 223 | 6 695 |
| CHANGE IN NET CASH POSITION | 2 528 | 1 978 |
REMINDER
2022 HALF YEAR KEY FIGURES
| In millions of euros | H1 2022 | H1 2021 |
| Revenue | 5,475 | 4,235 |
| Growth at current exchange rates vs. n-1 | 29.3,% | 70.2 % |
| Growth at constant exchange rates vs. n-1 (1) | 23.2,% | 76.7 % |
| Recurring operating income (2) | 2,304 | 1,722 |
| As a % of revenue | 42.1,% | 40.7 % |
| Operating income | 2,304 | 1,722 |
| As a % of revenue | 42.1,% | 40.7 % |
| Net profit – Group share | 1,641 | 1,174 |
| As a % of revenue | 30.0,% | 27.7 % |
| Operating cash flows | 2,001 | 1,487 |
| Investments (excluding financial investments) | 190 | 214 |
| Adjusted free cash flow (3) | 1,421 | 1,236 |
| Equity – Group share | 10,259 | 8,024 |
| Net cash position (4) | 7,280 | 5,326 |
| Restated net cash position (5) | 7,685 | 5,521 |
| Workforce (number of employees) | 18,428 | 16,966 |
(6) Growth at constant exchange rates is calculated by applying the average exchange rates of the previous period to the current period’s revenue, for each currency.
(7) Recurring operating income is one of the main performance indicators monitored by the group’s General Management. It corresponds to the operating income excluding non-recurring items having a significant impact likely to affect the understanding of the group’s economic performance.
(8) Adjusted free cash flow corresponds to the sum of operating cash flows and change in working capital requirement, less operating investments and repayment of lease liabilities, as per IFRS cash flow statement.
(9) The net cash position includes cash and cash equivalents on the asset side of the balance sheet, less bank overdrafts presented within the short-term borrowings and financial liabilities on the liability side of the balance sheet. It does not include lease liabilities recognised in accordance with IFRS 16.
(10) The restated net cash position corresponds to the net cash position, plus cash investments that do not meet IFRS criteria for cash equivalents as a result of their original maturity of more than three months, minus borrowings and financial liabilities.
Attachment
