HERMÈS - 2020 Universal registration document

6

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

COMPENSATION AND OTHER PERSONNEL COSTS

NOTE 3

2020

2019

In millions of euros Compensation

(70.8) (26.7)

(62.7) (25.2)

Social security charges 2016 free share plans 2019 free share plans

(4.8) (5.8)

(8.6) (4.3)

COMPENSATION AND OTHER PERSONNEL COSTS

(108.1)

(100.8)

Expenses recognised in operating income in respect of free share plans only concern employees of Hermès International. The costs relating to other employee beneficiaries of subsidiaries are presented in extraordinary income.

DEPRECIATION, AMORTISATION AND PROVISIONS

NOTE 4

Depreciation, amortisation and operating provisions break down as follows:

2020

2019

In millions of euros

Depreciation and amortisation of fixed assets

(16.3) (81.8) (98.0)

(11.3)

Provisions for risks and expenses

(104.9) (116.2)

DEPRECIATION, AMORTISATION 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:

2020

2019

In millions of euros

Interest and similar income

9.9

7.1 8.0

Foreign exchange gains and losses Interest and similar expenses

(8.3) (3.5) (1.1) (3.0)

(7.2) (0.1)

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

7.8

EXTRAORDINARY INCOME

NOTE 6

2020

2019 73.3 57.1

In millions of euros

Extraordinary income

283.0 266.3

Free share plans

Reversals of provisions for tax depreciation

0.3

0.1

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

11.2

13.6

Other extraordinary income Extraordinary expenses

5.2

2.5

(239.4) (226.2)

(122.8)

Free share plans

(79.1)

Provisions for tax depreciation Net value of fixed assets sold Other extraordinary expenses EXTRAORDINARY INCOME

(0.2)

(0.2)

(10.0)

(33.3) (10.2) (49.5)

(3.0) 43.5

The free share plans in 2020 include in particular the delivery of the first tranche of the 2016 plan to employees.

412 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL