HERMÈS - 2018 Registration document

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Consolidated financial statements Notes to the consolidated financial statements

In 2017, changes in property, plant and equipment were as follows:

Exchange rate impact

31/12/2016

Increases 1

Decreases

Other

31/12/2017

In millions of euros

Land

170.0 819.3 299.5 752.3 344.4

-

-

(11.6) (32.3)

-

158.4 820.3 301.9 769.4 341.5

Buildings

29.4 21.3 46.9 30.1 88.3 31.7 22.2 78.1 34.0 38.6

(24.6) (14.3) (24.4) (10.9)

28.6 (1.0) 47.1

Industrial machinery, plant and equipment

(3.6)

Store fixtures and furnishings

(52.5)

Other property, plant and equipment assets

(5.2) (3.6)

(16.9) (61.5)

Assets under construction TOTAL GROSS VALUES Depreciation of buildings

68.7

(0.7)

91.3

2,454.2

216.0

(74.9)

(108.8)

(3.8) (8.5)

2,482.8

298.2 167.9 385.1 211.6

(6.8)

(12.1)

302.6 174.8 427.6 213.1

Depreciation of plant, machinery and equipment Depreciation of store fixtures and furnishings Depreciation of other property, plant and equipment

(14.2) (39.7) (10.6)

(1.6)

0.6

(26.7)

30.8

(3.6) (2.9)

(18.2) (11.0)

56.9

(0.2)

81.3

Impairment losses 2

TOTAL AMORTISATION AND IMPAIRMENT

1,119.6 1,334.6

204.7

(71.6)

(46.9) (61.9)

(6.3)

1,199.5

TOTAL NET VALUES

11.3

(3.3)

2.5 1,283.3

(1) Investments made in 2017 concern mainly the opening and renovation of stores and capital expenditure to expand production capacity. (2) Impairment losses relate to production lines and stores deemed not to be sufficiently profitable. It is noted that the cash generating units on which impairment losses have been recognised are not individually material when compared with the Group’s overall business.

INVESTMENT PROPERTY

NOTE 14

Exchange rate impact

31/12/2017

Increases

Decreases

Other

31/12/2018

In millions of euros

Land

29.7 70.1 99.8 20.0 79.8

- - -

- - - - -

(0.2) (0.5) (0.7) (0.1) (0.6)

(0.1)

29.4 69.6 99.1 22.2 76.9

Buildings

0.1

TOTAL GROSS VALUES

- - -

Amortisation

2.2

TOTAL NET VALUES

(2.2)

It is stipulated that the Group and its subsidiaries are not bound by any contractual obligation to buy, build or develop investment properties, existing or not. Moreover, the costs incurred for the upkeep, mainte- nance and improvement of the investment assets are neither significant nor likely, as far as we know, to change materially in the coming financial years.

The net rental proceeds from investment properties total €8.4 million in the year. As at 31 December 2018, the fair value of the investment properties was greater than €100 million. This estimate is based on evaluation works performed by independent experts with sufficient frequency. The evaluations are notably based on real estate operations involving comparable assets and on indicators established by professionals or recognised institutions.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL