HERMES INTERNATIONAL, Société en Commandite par Actions (partnership limited by shares) with capital of €53,840,400.12,
Registered in the Paris Trade and Companies Register under number 572 076 396,
whose registered office is at 24, rue du Faubourg Saint-Honoré, 75008 PARIS
Outstanding sales and results in 2023
Revenue amounted to €13.4 billion
(+21% at constant exchange rates and +16% at current exchange rates)
Recurring operating income reached €5.7 billion (+20%)
Net profit amounted to €4.3 billion (+28%)
Paris, 9 February 2024
The group’s consolidated revenue amounted to €13,427 million in 2023, up 21% at constant
exchange rates and 16% at current exchange rates compared to 2022. Recurring operating income
amounted to €5,650 million, i.e. 42.1% of sales. Net profit group share reached €4,311 million,
an increase of 28%.
In the fourth quarter 2023, sales reached €3,364 million, up 18% at constant exchange rates and
13% at current exchange rates, despite the particularly high comparison base in America and in
Asia. The group pursued the trend seen over the third quarter, thanks to sustained sales.
Axel Dumas, Executive Chairman of Hermès, said: “In 2023, Hermès has once again cultivated
its singularity and achieved an outstanding performance in all métiers and across all regions
against a high base. These solid results reflect the strong desirability of our collections and the
commitment and talent of the house’s women and men. I thank them all warmly.”
Sales by geographical area at the end of December
(at constant exchange rates unless otherwise indicated)
At the end of December, all the geographical areas posted a solid performance with homogeneous
growth of around 20%. Sales increased both in the group’s stores (+20%), which benefitted from
a strong demand and the reinforcement of the exclusive distribution network, and in wholesale
activities (+24%), driven by the travel retail business.
Asia excluding Japan (+19%) pursued its strong growth, with significant increases in sales in all
the countries of the region. A second store opened in October in Chengdu, the capital city of the
province of Sichuan, becoming the house’s thirty-third address in Mainland China, following the
opening of a store in Tianjin in July. In Korea, the store at the Shilla Hotel in Seoul reopened in
December after renovation and extension work.
Japan (+26%) recorded a steady and sustained increase in sales. The Daimaru Sapporo store on
Hokkaido island and the Takashimaya store in the centre of Kyoto were inaugurated in October
and November, after renovation and expansion.
2023 Full-Year Results
2
America (+21%) confirmed an outstanding performance, in particular in the second half of the year. After being
renovated and expanded, the Chicago store was inaugurated at the end of October, and the Bellagio store
reopened in Las Vegas in December, following the store openings of Naples on the Gulf of Mexico in February,
Aspen in June and Los Angeles Topanga in July. The Hermès in the Making travelling exhibition which
showcases the know-how of the House, met with great success in Chicago in October.
Europe excluding France (+20%) and France (+20%) recorded robust growth, thanks to the loyalty of local
clients and to the dynamic of tourists flows. Following renovation, the Crans-Montana store in Switzerland
reopened in December, after the store located in the historic centre of Bordeaux in November and the Vienna
store in Austria in September. The Silk event Par un beau soir de carrés, staged in Brussels in November,
attracted great attention.
Sales by sector at the end of December
(at constant exchange rates unless otherwise indicated)
At the end of December 2023, all the métiers confirmed their solid momentum, with Ready-to-wear and
Accessories, Watches and Other Hermès Sectors achieving a remarkable increase.
The Leather Goods and Saddlery métier (+17%), which demand is very sustained, saw a strong increase. The
Maximors bag, with its sterling work, and Della Cavalleria Élan and Arçon bags have been unveiled. Finally,
the models displaying exceptional savoir-faire in an Arts & C
raft’s spirit around the Haut à Courroies notably
have met with great success.
In 2023, Hermès inaugurated the leather goods workshops in Louviers and la Sormonne, the first two industrial
buildings in France to carry the E4C2 label that assesses environmental performance based on energy
consumption and carbon emissions. Production capacities continue to grow with four leather goods workshop
projects over the next four years: Riom (Puy-de-Dôme) in 2024, L’Isle-d’Espagnac (Charente) in 2025, Loupes
(Gironde) in 2026 and Charleville-Mézières (Ardennes) scheduled for 2027, which will reinforce the nine
centres of expertise located all over France. 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 sector (+28%) pursued its strong growth, thanks to the success of the ready-
to-wear and footwear collections. The men’s and women’s spring-summer 2024 collections were very well
received when they were presented at fashion shows in June and September respectively.
The Silk and Textiles sector (+16%) recorded a solid performance, supported by the success of the collections
which feature exceptional materials and unique craftsmanship. Production capacities continue to expand,
notably with the set-up of a new printing line at the Pierre-Bénite site in Lyon.
The Perfume and Beauty sector (+12%) benefitted from the success of both the latest creations and the House’s
classics such as Terre d'Hermès, the Jardins collection and Twilly d’Hermès. The Hermès Beauty range was
enhanced with a fifth chapter at the end of September, Regard Hermès, inspired by the House’s emblematic
shades, as well as with limited editions of Rouge Hermès.
The Watches métier (+23%) confirmed its splendid performance, displaying singular creativity and remarkable
watchmaking know-how, in both the complication models and the House’s iconic models. The Hermès H08
line is a great success and welcomed several new models this year.
The Other Hermès sectors (+26%), which include Jewellery and Homeware, recorded strong growth. Jewellery
showcased the Chaîne d’ancre design, reinterpreted in a multitude of shapes and materials unveiled at an
exhibition at the Faubourg store in Paris in July.
2023 Full-Year Results
3
Outstanding results
Recurring operating income increased by 20% to €5,650 million compared to €4,697 million in 2022. Thanks
to the strong sales growth and the favourable impact of currency hedging, annual recurring operating
profitability reached its highest level ever at 42.1%, up from 40.5% in 2022.
Consolidated net profit group share amounted to €4,311 million (32.1% of sales) compared to €3,367 million
in 2022, an increase of 28% resulting from the outstanding operating performance
as well as an improved return
on cash management.
Operating cash flow was €5,123 million, up 25%.
This enabled us to finance €859 million of operating
investments and a €794 million increase in working capital requirements, consistent with the strong rise in
activity. Adjusted free cash flow reached €3,192 million.
After distribution of the ordinary dividend (€1,359 million) and inclusion of financial investments (€316
million) and treasury share buybacks (€132 million for 74,954 shares outside the liquidity contract), the restated
net cash position increased by €1,422 million to €11,164 million compared to €9,742 million as at 31 December
2022.
A sustainable and responsible model
The Hermès group continued to recruit and increased its workforce by around 2,400 people. At the end of 2023,
the group had 22,040 employees, including 13,700 in France. Over the past three years, Hermès has created
more than 5,400 jobs, including 3,300 in France.
True to its commitment as a responsible employer, and its policy of sharing the fruits of growth with all those
who contribute to it on a daily basis, Hermès will pay at the beginning of the year a bonus of €4,000 to all its
employees worldwide in respect of 2023, after announcing last July a new plan for the allocation of free shares
to all the employees. Hermès is strengthening its commitments in the fields of education and knowledge
transmission particularly through the deployment of the École Hermès des savoir-faire, which has extended its
leatherwork, cutting and stitching diploma courses in 8 regional training schools in France this year.
In line with the House’s commitments to the fight against climate change, Hermès pursued its actions in line
with its 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. Pursuing its commitment to quality and the development of sustainable materials for its 16
business lines, the House is continuing its drive to achieve certification for its 44 supply chains by 2024. Thus,
at the end of December, more than 80% of the leather goods division’s suppliers were LWG (Leather Working
Group) certified.
In 2023, the group has initiated the Science Based Targets for Nature (SBTN) process to set scientific targets
for nature, in particular in biodiversity, fresh water, forests and soils. Hermès is one of 120 companies worldwide
to have launched this process. Regarding the protection of natural resources, the House also implemented its
particularly demanding responsible real estate standard that integrates sustainability issues across the life cycle
of real estate projects.
2023 Full-Year Results
4
Proposed dividend
At the General meeting to be held on 30 April 2024, a dividend proposal of €15.00 per share will be made. The
€3.50 interim dividend that will be paid on 15 February 2024, will be deducted from the dividend approved by
the General Meeting. In addition, an exceptional dividend of €10.00 per share will be proposed to the General
meeting.
Post-closing event
No significant event has occurred since the closing on 31 December 2023. In line with its distribution network
vertical integration strategy, the house has reinforced its relationship with its historical partner in the Middle
East. Thus, Hermès became in early 2024 a majority shareholder alongside its partner in the retail activities
located in the United Arab Emirates. The latter remains the majority shareholder in the other countries of the
region (Qatar, Kuwait, Bahrain). The impact of the change in consolidation method resulting from this
acquisition of a majority stake and the amount paid will not be significant on the 2024 consolidated financial
statements.
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 2024 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.
For 2024, the theme will be In the Spirit of the Faubourg. This place, the fruit of Émile Hermès’ dream, is the
beating heart of the house. It accompanies Hermès everywhere and inspires the effervescence and joyful spirit
so dear to the house.
The press release and the presentation of the 2023 results are available on the group’s website:
https://finance.hermes.com
At the Supervisory Board meeting on 8 February 2024, Executive Management presented the audited financial
statements for 2023.
The audit procedures have been completed and the audit report is under preparation.
The complete consolidated financial statements will be available by 31 March 2024 at the following address
https://finance.hermes.com and on the AMF website: www.amf-france.org
Upcoming events:
• 25 April 2024: Q1 2024 revenue publication
• 30 April 2024: General meeting of shareholders
• 25 July 2024: publication of H1 2024 results (after market)
2023 Full-Year Results
5
2023 KEY FIGURES
In millions of euros
2023
2022
Revenue
13,427
11,602
Growth at current exchange rates vs. n-1
15.7 %
29.2%
Growth at constant exchange rates vs. n-1
(1)
20.6 %
23.4%
Recurring operating income
(2)
5,650
4,697
As a % of revenue
42.1%
40.5%
Operating income
5,650
4,697
As a % of revenue
42.1%
40.5%
Net profit – Group share
4,311
3,367
As a % of revenue
32.1%
29.0%
Operating cash flows
5,123
4,111
Operating investments
859
518
Adjusted free cash flow
(3)
3,192
3,405
Equity – Group share
15,201
12,440
Net cash position
(4)
10,625
9,223
Restated net cash position
(5)
11,164
9,742
Workforce (number of employees)
(6)
22,037
19,686
(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.
(6)
The headcount relates to employees on permanent contracts and those on fixed-term contracts lasting more than 9 months.
2023 Full-Year Results
6
INFORMATION BY GEOGRAPHICAL ZONE
(a)
As of Dec. 31
st
Evolution /2022
In millions of Euros
2022
Published
At constant
exchange rates
France
1,064
19.8%
19.8%
Europe (excl. France)
1,536
18.4%
20.2%
Total Europe
2,600
19.0%
20.0%
Japan
1,101
14.5%
25.7%
Asia-Pacific (excl. Japan)
5,556
12.9%
19.1%
Total Asia
7,533 6,657 13.2% 20.2%
Americas
2,138
17.1%
20.5%
Other
207
44.4%
44.0%
TOTAL
11,602
15.7%
20.6%
4
th
quarter Evolution /2022
In millions of Euros
2022
Published
At constant
exchange rates
France
311
15.5%
15.5%
Europe (excl. France)
413
18.9%
21.0%
Total Europe
850 724 17.4% 18.6%
Japan
279
15.0%
26.2%
Asia-Pacific (excl. Japan)
1,314
6.6%
12.3%
Total Asia
1,722 1,593 8.1% 14.8%
Americas
620
15.7%
21.6%
Other
54
39.4%
39.2%
TOTAL
2,991
12.5%
17.5%
(a)
Sales by destination.
2023 Full-Year Results
7
INFORMATION BY SECTOR
4
th
quarter Evolution /2022
In millions of Euros
2022
Published
At constant
exchange rates
Leather Goods and Saddlery
(1)
1,300
5.4%
10.4%
Ready-to-wear and Accessories
(2)
775
21.9%
27.5%
Silk and Textiles
285 263 8.3% 13.3%
Other Hermès sectors
(3)
348
18.9%
24.4%
Perfume and Beauty
105
19.9%
22.2%
Watches
138 118 16.7% 22.0%
Other products
(4)
82
5.6%
8.8%
TOTAL
2,991
12.5%
17.5%
(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.
As of Dec. 31
st
Evolution /2022
In millions of Euros
2022
Published
At constant
exchange rates
Leather Goods and Saddlery
(1)
4,963
11.8%
16.7%
Ready-to-wear and Accessories
(2)
3,152
23.1%
28.2%
Silk and Textiles
842
10.7%
15.6%
Other Hermès sectors
(3)
1,371
20.5%
25.8%
Perfume and Beauty
448
9.8%
11.7%
Watches
611 519 17.7% 23.2%
Other products
(4)
306
2.2%
5.2%
TOTAL
11,602
15.7%
20.6%
2023 Full-Year Results
8
2023 QUARTERLY REVENUE
Q1 Q2 Q3 Q4 2023
Revenue (in €m)
3,380
3,317
3,365
3,364
13,427
Growth at current exchange rates
22.3%
22.4%
7.3 %
12.5 %
15.7 %
Growth at constant exchange rates
23.0%
27.5%
15.6 %
17.5 %
20.6%
--------------------------------------------------------------------------------
EXTRA-FINANCIAL PERFORMANCES
RESPONSIBLE EMPLOYER
2,400
Jobs created
DIVERSITY AND INCLUSION
6.85%
Direct disability employment rate
GENDER EQUALITY
60%
Women managers in the group
VERTICAL
INTEGRATION
55%
Manufactured in its in-house and
exclusive workshops
LONG-TERM
RELATIONSHIPS
19 years
Average age of supplier
relationships (Top 50)
LOCAL
ANCHORING
74%
Objects
made in France
CLIMATE
Scopes 1 & 2 (SBTi)
-30%
Emissions reduction in absolute
value between in 2023 vs 2022
BIODIVERSITY
SBTN
Scientific approach for
nature initiated
WATER
CONSUMPTION
-62%
Industrial water intensity
over 10 years
TRANSPARENCY
AWARDS
#1
CAC
LARGE 60
COMMITTED TO
COMMUNITIES
400
Local actions and
partnerships in 2023
DURABILITY
> 200,000
Repairs
in workshops
2023 Full-Year Results
9
APPENDIX – EXTRACT FROM CONSOLIDATED ACCOUNTS
Financial statements of the year, including notes to the consolidated accounts, will be available at the end of March 2024
on the website https://finance.hermes.com, together with the other chapters of the Annual Financial Report.
CONSOLIDATED INCOME STATEMENT
In millions of euros
2023
2022
Revenue
13,427
11,602
Cost of sales
(3,720)
(3,389)
Gross margin
9,708
8,213
Sales and administrative expenses
(3,169)
(2,680)
Other income and expenses
(889)
(836)
Recurring operating income
5,650
4,697
Other non
-recurring income and expenses
-
-
Operating income
5,650
4,697
Net financial income
190
(62)
Net
income before tax
5,840
4,635
Income tax
(1,623)
(1,305)
Net income from associates
105
50
CONSOLIDATED NET INCOME
4,322
3,380
Non
-controlling interests
(12)
(13)
NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT
4,311
3,367
Basic earnings per share
(in euros)
41.19
32.20
Diluted earnings per share
(in euros)
41.12
32.09
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In millions of euros
2023
2022
Consolidated net income
4,322
3,380
Changes in foreign currency adjustments
1
(114)
126
Hedges of future cash flows in foreign currencies
1 2
7
129
▪ change in fair value
69
23
▪ recycling through profit or loss
(63)
106
Assets at fair value
2
-
333
Employee benefit obligations: change in value linked to actuarial gains and losses
2
10
41
Net comprehensive income
4,225
4,009
▪ attributable to owners of the parent
4,213
3,996
▪ attributable to non-controlling interests
13
14
(1) Transferable through profit or loss.
(2) Net of tax.
2023 Full-Year Results
10
CONSOLIDATED BALANCE SHEET
ASSETS
In millions of euros
31/12/2023
31/12/2022
Goodwill
72
-
Intangible assets
225
213
Right
-of-use assets
1,716
1,582
Property, plant
and equipment
2,340
2,007
Investment property
7
8
Financial assets
1,141
1,109
Investments in associates
200
54
Loans and deposits
70
65
Deferred tax assets
631
555
Other non
-current assets
37
39
Non
-current assets
6,438
5,630
Inventories and work
-in-progress
2,414
1,779
Trade and other receivables
431
383
Current tax receivables
51
19
Other current assets
300
263
Financial derivatives
188
160
Cash and cash equivalents
10,625
9,225
Current assets
14,008
11,828
TOTAL ASSETS
20,447
17,459
LIABILITIES
In millions of euros
31/12/2023
31/12/2022
Share capital
54
54
Share premium
50
50
Treasury shares
(698)
(674)
Reserves
10,744
8,795
Foreign currency adjustments
189
303
Revaluation adjustments
553
546
Net income attributable to owners of the parent
4,311
3,367
Equity attributable to owners of the parent
15,201
12,440
Non
-controlling interests
2
16
Equity
15,203
12,457
Borrowings and financial
liabilities due in more than one year
50
35
Lease liabilities due in more than one year
1,720
1,629
Non
-current provisions
31
30
Post
-employment and other employee benefit obligations due in more than one year
151
181
Deferred tax
liabilities
2
20
Other non
-current liabilities
106
103
Non
-current liabilities
2,060
1,998
Borrowings and financial liabilities due in less than one year
1
2
Lease liabilities due in less than one year
289
268
Current provisions
134
133
Post
-employment and other employee benefit obligations due in less than one year
16
15
Trade and other payables
880
777
Financial derivatives
45
74
Current tax liabilities
586
496
Other current liabilities
1,233
1,239
Current
liabilities
3,183
3,004
TOTAL EQUITY AND LIABILITIES
20,447
17,459
2023 Full-Year Results
11
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 2022
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
Net income
-
-
-
4,311
-
-
-
-
4,311
12
4,322
Other comprehensive
income
-
-
-
-
10
(115)
-
7
(98)
1
(97)
Comprehensive income
-
-
-
4,311
10
(115)
-
7
4,213
13
4,225
Change in share capital
and share premiums
-
-
-
-
-
-
-
-
-
-
-
Purchase or sale of
treasury shares
-
-
(24)
(105)
-
-
-
-
(129)
-
(129)
Share
-based payments
-
-
-
104
-
-
-
-
104
-
104
Dividends paid
-
-
-
(1,376)
-
-
-
-
(1,376)
(10)
(1,386)
Other
-
-
-
(51)
-
-
-
-
(51)
(17)
(68)
AS AT 31 DECEMBER
2023
105,569,412
54
50
(698)
15,130
(75)
189
521
32
15,201
2
15,203
2023 Full-Year Results
12
CONSOLIDATED STATEMENT OF CASH FLOWS
In millions of euros
2023
2022
Net income attributable to owners of the parent
4,311
3,367
Depreciation and amortisation of fixed assets, rights of use and impairment losses
772
730
Foreign exchange
gains/(losses) on fair value adjustments
56
12
Change in provisions
15
12
Net income from associates
(105)
(50)
Net income attributable to non
-controlling interests
12
13
Capital gains or losses on disposals and impact of changes in scope of
consolidation
(14)
(1)
Deferred tax expense
(14)
(16)
Accrued expenses and income related to share
-based payments
104
55
Dividend income
(12)
(11)
Other
(0)
(0)
Operating cash flows
5,123
4,111
Change in working capital requirements
(794)
73
CASH FLOWS RELATED TO OPERATING ACTIVITIES (A)
4,328
4,184
Operating investments
(859)
(518)
Acquisitions of consolidated shares
(288)
(1)
Acquisitions of other financial assets
(52)
(165)
Disposals of operating assets
0
1
Disposals of
consolidated shares and impact of losses of control
-
0
Disposals of other financial assets
-
5
Change in payables and receivables related to investing activities
93
32
Dividends received
112
67
CASH FLOWS RELATED TO INVESTING ACTIVITIES (B)
(995)
(579)
Dividends paid
(1,386)
(852)
Repayment of lease liabilities
(277)
(261)
Treasury share buybacks net of disposals
(130)
(123)
Borrowing subscriptions
0
0
Repayment of borrowings
(1)
(0)
CASH FLOWS RELATED TO FINANCING ACTIVITIES (C)
(1,794)
(1,237)
Foreign currency translation adjustment (D)
(138)
159
CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D)
1,402
2,528
Net cash position at the beginning of the period
9,223
6,695
Net cash position at the end of the period
10,625
9,223
2023 Full-Year Results
13
REMINDER
2023 HALF YEAR KEY FIGURES
In millions of euros
H1 2023
H1 2022
Revenue
6,698
5,475
Growth at current exchange rates vs. n-1
22.3%
29.3%
Growth at constant exchange rates vs. n-1
(1)
25.2%
23.2%
Recurring operating income
(2)
2,947
2,304
As a % of revenue
44.0%
42.1%
Operating income
2,947
2,304
As a % of revenue
44.0%
42.1%
Net profit – Group share
2,226
1,641
As a % of revenue
33.2%
30.0%
Operating cash flows
2,615
2,001
Investments (excluding financial investments)
249
190
Adjusted free cash flow
(3)
1,720
1,421
Equity – Group share
13,249
10,259
Net cash position
(4)
9,326
7,280
Restated net cash position
(5)
9,848
7,685
Workforce (number of employees)
(6)
20,607
18,428
(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.
(6)
The headcount relates to employees on permanent contracts and those on fixed-term contracts lasting more than 9 months.