HERMÈS - 2020 Universal registration document

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

INCOME TAX NOTE 7 Breakdown of income tax 7.1

2020

2019

In millions of euros

Net income before tax and employee profit-sharing

1,325.2

1,665.0

Employee profit-sharing Net income before tax

(4.3)

(4.8)

1,320.9

1,660.1

Income tax

22.3

(7.1)

Tax (parent company only)

(30.1)

(40.7)

o/w tax on extraordinary income s

0.8

7.1

(30.9)

(47.8)

o/w tax on other items s

Tax arising from tax consolidation

52.4

33.6

NET INCOME

1,343.2

1,653.1

Hermès International recognised an income tax credit of €22.3 million in 2020, compared with an expense of €7.1 million in 2019. In addition, Hermès International is liable for payment of the tax of the fiscally consolidated group, which amounted to €199.3 million in 2020 compared with €314.7 million in 2019. Hermès International’s income tax expense only includes applicable exemptions under the terms of the parent-subsidiary regime for income from investments in subsidiaries and affiliates. The tax credit resulting from the tax consolidation takes into account the effect of the consolidation linked, on the one hand to tax losses for certain subsidiaries, and on the other to capital gains on disposals of property, plant and equipment and non-current financial assets, where relevant.

The amount of the subsidiaries’ tax losses that Hermès International is liable for refunding to its subsidiaries under the Group tax consolidation agreement amounted to €89.1 million as at 31 December 2020.

Increases or decreases in future tax liability 7.2 As at 31 December 2020, the future tax receivable was equal to €25.6 million, versus €24.6 million as at 31 December 2019. This mainly consists of temporarily non-deductible expenses, in particular retirement provisions.

OPERATING ASSETS

NOTE 8

31/12/2019

Increases

Decreases

Other

31/12/2020

In millions of euros Intangible assets

53.4

21.3

- - -

0.6

75.2

Concessions, patents and brands

-

-

-

-

6

Other intangible assets

53.4 51.7

21.3

0.6

75.2 58.5

Property, plant and equipment

8.6

(1.3)

(0.6)

Land

0.2 0.4

- -

- -

- -

0.2 0.4

Buildings

Other property, plant and equipment assets

51.1

8.6

(1.3) (1.3)

(0.6)

57.9

TOTAL GROSS VALUES

105.1 (24.3)

29.9

- - - - - - - - - - -

133.7 (37.6)

Amortisation of intangible assets Concessions, patents and brands

(13.3)

- - -

-

-

-

Other intangible assets

(24.3) (32.5)

(13.3)

(37.6) (34.2)

Depreciation of property, plant and equipment

(2.9)

1.2

Land

-

- -

- -

-

Buildings

(0.4)

(0.4)

Other property, plant and equipment assets TOTAL DEPRECIATION AND AMORTISATION

(32.1) (56.8)

(2.9)

1.2 1.2

(33.8) (71.8)

(16.3)

Impairment

- -

- -

- -

- -

TOTAL IMPAIRMENT TOTAL NET VALUES

48.3

13.6

(0.0)

61.9

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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