HERMES_REGISTRATION_DOCUMENT_2017

6

PARENT COMPANY FINANCIAL STATEMENTS

NOTE TO THE FINANCIAL STATEMENTS

INCOME TAX

NOTE 5

5.1 Breakdown of income tax

2017

2016

In millions of euros

Net income before tax

753.9 758.4

1,097.0 1,100.9

Net income before tax and employee profit-sharing

Employee profit-sharing

(4.5) 24.4

(3.9) (5.8)

Income tax

Tax (parent company only)

(18.0)

(28.5)

s o/w tax on extraordinary income

2.3

(5.9)

o/w tax on other items

(20.3)

(22.6)

s

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

24.0

22.8

(34.0)

52.4

NET INCOME

778.3

1,091.2

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. 5.2 Increases or decreases in future tax liability Asat31December2017,thefuturetaxreceivablewasequalto€15.2mil- lion, versus €14.5million as at 31December 2016. Thismainly consists of temporarily non-deductible expenses.

Hermès International recognised a tax credit of €24.4 million in 2017, against a tax expense of €5.8 million in 2016. In addition, Hermès International is jointly liable for payment of the tax of the fiscally consoli- dated group, which amounted to €247.1 million in 2017 compared with €211.6 million in 2016. The tax credit factors in the exceptional income tax contribution for large companies (€34million) andprojected repayments following theelimina- tion of the contribution for income distributed (€52.4 million). 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

INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

NOTE 6

Gross value as at 31/12/2016

Gross value as at 31/12/2017

Net value as at 31/12/2017

Increases

Decreases

Other

Amortisation

In millions of euros

Intangible assets

32.1

8.6

(5.4)

-

35.3

(23.3)

11.9

Concessions, patents and brands

-

-

-

Other

32.1 43.0

8.6 2.3

(5.4) (0.0)

35.3 45.3

(23.3) (28.1)

11.9 17.3

Property, plant and equipment

-

Land

0.2 0.4

0.2 0.4

0.2

Buildings

(0.4)

-

Other assets

42.5

2.3

(0.0)

44.8

(27.7)

17.1

INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

75.1

10.9

(5.4)

-

80.6

(51.4)

29.2

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL