HERMÈS - 2018 Registration document

6

Parent company financial statements

Notes to the financial statements

INCOME TAX

NOTE 7

7.1 Breakdown of income tax

2018

2017

In millions of euros

Net income before tax

1,231.5 1,236.1

753.9 758.4

Net income before tax and employee profit-sharing

Employee profit-sharing

(4.6)

(4.5) 24.4

Income tax

7.0

Tax (parent company only)

(15.0)

(18.0)

s s o/w tax on extraordinary income

(0.2)

2.3

o/w tax on other items

(14.8)

(20.3)

s s

Tax arising from tax consolidation Exceptional income tax contribution Reimbursement of tax on dividends

21.6

24.0

-

(34.0)

0.4

52.4

NET INCOME

1,238.5

778.3

Hermès International recognised a tax credit of €7.0 million in 2018, compared with €24.4 million in 2017. In addition, Hermès International is liable for payment of the tax of the fiscally consolidated group, which amounted to €263.5 million in 2018 compared with €247.1 million in 2017. In2017, the tax credit factored in theexceptional income tax contribution for large companies (€34 million) and projected repayments following the elimination of the contribution for income distributed (€52.4million). Hermès International’s income tax expense only includes applicable exemptions under the terms of the parent-subsidiary regime for income from investments in subsidiaries. The income tax credit takes into

account the effect of the Group tax consolidation arising from tax losses for certain subsidiaries and from the capital gains on disposals of pro- perty, plant and equipment and non-current financial assets, where relevant. 7.2 Increases or decreases in future tax liability As at 31 December 2018, the future tax receivable was equal to €17.0 million, versus €15.2 million as at 31 December 2017. This mainly consists of temporarily non-deductible expenses, in particular retirement provisions.

INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

NOTE 8

Gross value as at 31/12/2017

Gross value as at 31/12/2018

Net value as at 31/12/2018

Increases

Decreases

Other

Amortisation

In millions of euros

Intangible assets

35.3

12.2

(0.1)

(0.2)

47.2

(28.0)

19.2

Concessions, patents and brands

-

-

-

Other

35.3 45.3

12.2

(0.1) (1.9)

(0.2)

47.2 48.9

(28.0) (29.6)

19.2 19.3

Property, plant and equipment

5.3

0.2

Land

0.2 0.4

0.2 0.4

0.2

Buildings

(0.4)

-

Other assets

44.8

5.3

(1.9)

0.2

48.4

(29.3)

19.1

INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

80.6

17.5

(2.1)

0.0

96.1

(57.6)

38.5

304

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL