HERMÈS - 2019 Universal Registration Document

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PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

AMORTISATION, DEPRECIATION AND PROVISIONS

NOTE 4

Amortisation, depreciation, and operating provisions break down as follows:

2019

2018 (7.7)

In millions of euros

Depreciation of assets

(11.3)

Provisions for risks and expenses

(104.9) (116.2)

(67.0) (74.7)

AMORTISATION, DEPRECIATION AND PROVISIONS

Provisions for risks and expenses include retirement costs and the cost of free shares for all Group employees; they are recognised in operating income for the employees of Hermès International, and are transferred to extraordinary income for the other employee beneficiaries of subsidiaries (see notes 2, 3 and 6).

OTHER ELEMENTS OF NET FINANCIAL INCOME

NOTE 5

Foreign exchange differences and other items include the following:

2019

2018

In millions of euros

Interest and similar income

7.1 8.0

2.1

Foreign exchange gains and losses Interest and similar expenses

(8.5) (6.0) (0.3)

(7.2) (0.1)

Net income from disposals of marketable securities OTHER ELEMENTS OF NET FINANCIAL INCOME

7.8

(12.7)

EXTRAORDINARY INCOME

NOTE 6

2019 73.3 57.1

2018

In millions of euros

Extraordinary income

104.9

Free share plans

54.9

Reversals of provisions for accelerated depreciation

0.1

0.1

Disposals of property, plant and equipment and non-current financial assets

13.6

49.9

Other extraordinary income Extraordinary expenses

2.5

-

(122.8)

(96.8) (46.9)

Free share plans

(79.1)

Provisions for accelerated depreciation

(0.2)

(0.2)

Other extraordinary expenses Net value of fixed assets sold EXTRAORDINARY INCOME

(33.3) (10.2) (49.5)

(49.7)

-

8.1

Losses on securities of €21.4 million are offset by a provision reversal of €29.0 million in net financial income.

Extraordinary income primarily includes the re-invoicing to subsidiaries of free share plans. Extraordinary expenses include costs relating to the free share plans for employee beneficiaries of subsidiaries in the amount of €79.1 million in respect of plans granted in 2016 and 2019.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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