HERMÈS - 2020 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Deferred taxes mainly relate to the following adjustments:

2020

2019

In millions of euros

Internal margins on inventories and provisions for inventories

333.6

308.8

Employee benefits

84.4

74.7

Derivatives

(37.7)

(19.7)

Impairment losses Regulated provisions

29.1

29.5

(33.5)

(39.3) 132.2 486.2

Other TOTAL

77.4

453.3

Deferred tax assets linked to tax loss carry-forwards were not material as at 31 December 2019 and 2020. As at 31 December 2020, tax loss carry-forwards and other temporary differences that did not lead to the recognition of deferred tax assets represented potential tax savings of €45.6 million (compared with €55.1 million in 2019).

EARNINGS PER SHARE

NOTE 11

The calculation and reconciliation of basic earnings per share and diluted earnings per share is as follows:

2020

2019

Numerator (in millions of euros) Net income attributable to owners of the parent

1,385.4

1,528.2

Denominator (in number of shares) Average number of shares outstanding during the financial year Average number of treasury shares during the financial year

105,569,412 (1,138,640) 104,430,772

105,569,412 (1,336,179) 104,233,233

Average number of shares before dilution Basic earnings per share (in euros) Dilutive effect of free share plans Average number of shares after dilution Diluted earnings per share (in euros)

5

13.27

14.66

457,739

822,098

104,888,511

105,055,331

13.21

14.55

Average share price

€729.42

€607.44

GOODWILL

NOTE 12

Exchange rate impact

31/12/2019

Increases

Decreases

Other 31/12/2020

In millions of euros

Goodwill

141.2 141.2

29.6 29.6

- - - - - -

(2.2) (2.2) (1.7)

- - - - - -

168.6 168.6

TOTAL GROSS VALUES

Amortisation recognised before 1 January 2004

32.4 92.6

-

30.8 95.4

Impairment losses

2.9 2.9

-

TOTAL AMORTISATION AND IMPAIRMENT

125.0

(1.7) (0.6)

126.2

TOTAL NET VALUES

16.2

26.7

42.4

The increases for the period mainly include goodwill related to the J3L acquisition.

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

373