HERMÈS - 2020 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

OTHER INCOME AND EXPENSES

NOTE 7

2020

2019

Note

In millions of euros

Depreciation and amortisation of fixed assets

(226.9) (240.8) (467.7)

(197.5) (209.4) (406.9)

Amortisation of right-of-use assets Depreciation and amortisation

Net change in provisions

(15.6) (17.6) (33.2) (54.3)

(14.1) (36.9) (51.0) (28.5)

Cost of pension plans and other long-term benefits

28

Sub-total

Impairment losses

Expenses linked to free share allocation plans and similar expenses

33

(117.8)

(114.1)

Other expenses 1 Other products

(75.8)

(24.1)

52.5

20.5

Sub-total

(195.4) (696.2)

(146.1) (604.0)

TOTAL

In 2020, this item includes a donation of €20 million to AP-HP (the Parisian public hospital system). (1)

Total depreciation and amortisation of fixed assets included in operating expenses (“Other income and expenses” and “Cost of sales”) amounted to €271.0 million in 2020, compared with €236.2 million in 2019.

Total amortisation of rights-of-use included in operating expenses (“Other income and expenses” and “Cost of sales”) amounted to €243.2 million in 2020, compared with €211.6 million in 2019.

OTHER NON-RECURRING INCOME AND EXPENSES

NOTE 8

In 2020, other non-recurring income corresponds to the income resulting from the deconsolidation of Shang Xia for €91 million.

5

NET FINANCIAL INCOME

NOTE 9

2020 10.6 (3.6) (2.4)

2019 19.0

In millions of euros

Income from cash and cash equivalents

Cost of gross borrowing cost

1.8 2.6

of which net income/(loss) on interest and exchange rate hedging instruments s

Net borrowing cost

7.0

20.8

Interest expense on lease liabilities Other financial income and expenses

(28.7) (64.4) (61.7) (86.1)

(24.4) (65.1) (66.9) (68.6)

of which ineffective portion of cash flow hedges s

TOTAL

The ineffective portion of cash flow hedges includes +€11.6 million in over-hedging in 2020, compared with -€1.5 million in over-hedging in 2019. The impact of the effective portion of the hedges recorded in equity is shown in Note 23.3.

INCOME TAX NOTE 10 Breakdown of income tax 10.1

2020

2019

In millions of euros

Current tax

(618.0)

(798.7)

Deferred taxes

5.1

47.8

TOTAL

(613.0)

(751.0)

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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