HERMÈS - 2018 Registration document

6

Parent company financial statements

Notes to the financial statements

MARKETABLE SECURITIES

NOTE 11

Gross value as at 31/12/2018

Net value as at 31/12/2018

Net value as at 31/12/2017

Impairments

In millions of euros

Open-ended investment companies (SICAVs) and mutual funds

240.5

- - - -

240.5

203.1

Negotiable debt securities

1,678.9

1,678.9

1,437.0

438.7

438.7

427.4

Treasury shares 1

MARKETABLE SECURITIES

2,358.1

2,358.1

2,067.4

(1) Treasury shares correspond to 1,229,840 Hermès International shares held under free share allocation plans for employees (compared with 1,328,163 shares at 31 December 2017). These shares are valued at their acquisition price. The average price of treasury shares at 31 December 2018 was €356.7. In the course of 2018, Hermès International acquired 103,237 shares for an amount of €59.3 million and granted 201,560 free shares to employees for an amount of €48.1 million.

EQUITY

NOTE 12

As at 31 December 2018, Hermès International’s share capital amounted to €53,840,400.12, made up of 105,569,412 shares with a par value of €0.51 each, or the same as at 31 December 2017.

FREE SHARES PLANS

NOTE 13

After taking income and expenses relating to the French and foreign subsidiaries into account, the net impact of the free share plans on net income before tax is an expense of €3.9 million in 2018, compared with an expense of €35.9 million in 2017.

The information relating to the free share plans is provided on page 200 (Table 9.1). In2018, operating income included a net expense of €12.5million (com- pared with €11.3 million in 2017).

PROVISIONS AND IMPAIRMENT

NOTE 14

Reversals

Provisions not used

Note

31/12/2017

Depreciations

Provisions used

31/12/2018

(In millions of euros)

Provisions for impairment

620.4 472.3 148.1 256.4 143.9

167.6 159.8

(112.1)

-

675.9 629.1

Financial assets

9

(3.0)

Trade and other receivables

7.8

(109.1) (51.3)

46.8

Provisions for risks and expenses

105.0

(6.6) (1.5)

303.5 150.3 114.5

Free share plans

55.1 37.6 12.2

(47.2)

Net negative position of subsidiaries Other provisions for risks and expenses 1

79.0 33.5

(2.2) (1.9)

(5.1) (6.6)

38.8

TOTAL

876.8

272.5

(163.4)

979.4

(1) Other provisions for risks and expenses mainly includes retirement benefits and expenses associated with the supplementary pension plans for Senior Executives and managers.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL