HERMES_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NET EARNINGS PER SHARE

NOTE 9

In accordance with the definitions set out in Note 1.20, the calculation and reconciliation of basic earnings per share and diluted earnings per share is as follows:

2017

2016

Numerator (in millions of euros) Basic net income

1,221.5

1,100.3

Adjustments

-

-

Diluted net income

1,221.5

1,100.3

Denominator (in number of shares) Weighted average number of ordinary shares

104,435,755 104,518,900

Basic earnings per share

11.70

10.53

Dilutive effect of stock option plans Dilutive effect of free share plans

725,045

600,449

Weighted average number of diluted ordinary shares

105,160,800 105,119,349

Diluted earnings per share Annual average price per share

11.62

10.47

€433.02

€345.52

GOODWILL

NOTE 10

10.1 Change in the year

5

Exchange rate impact

31/12/2016

Increases

Decreases

Other

31/12/2017

In millions of euros

Goodwill

146.1 146.1

- -

- - - - - -

(7.1) (7.1) (3.0) (2.3) (5.3) (1.8)

- -

139.0 139.0

TOTAL GROSS VALUES

Amortisation recognised before 1st January 2004

32.9 76.5

29.9 76.1

Impairment losses

1.9 1.9

TOTAL AMORTISATION AND IMPAIRMENT

109.5

- -

106.0

TOTAL NET VALUES

36.6

(1.9)

32.9

There was no material change in the net value of goodwill during the year.

10.2 Impairment tests As at 31 December 2017, the net value of goodwill concerns the CGU of the Distribution entities (€23.8 million) and the CGUs of the Group’s Production entities (€9.1 million). Within the CGU of the Distribution entities, the main goodwill is that of Hermès Japan, which stands at €14.7 million. The pre-tax discount rate

applied to projected cash flows for Japan is 9.8%. The annual asset impairment test of this asset as well as those of the other non-signi- ficant goodwill of this CGU do not bring to light any probable scenario according to which the CGU’s recoverable amount becomes lower than the net carrying amount. Individually, the other goodwill figures are not significant and do not bring to light any reasonably possible impairment scenario.

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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