Hermès // 2021 Universal Registration Document

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7.2.2 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment changed as follows during the last financial year:

Exchange rate impact

31/12/2020

Increases

Decreases

Other 31/12/2021

In millions of euros

Land

172

2

-

(2) 12

27 86 26 81 19

199

Buildings

1,011

25 26 94 44

(4) (9)

1,130

Industrial machinery, plant and equipment

424

4

471

Store fixtures and furnishings

1,044

(52)

57

1,225

Other property, plant and equipment assets

443 176

(9) (0)

4 6

502 248

Fixed assets under construction

214 405

(148)

TOTAL GROSS VALUES Depreciation of buildings

3,270

(73)

82

91 28

3,775

395 257 574 278 119

42 33

(2) (8)

3 2

467 289 664 309 165

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

6 2

107

(51)

32

41 49

(8) (2)

3 3

(5) (4) 27 65

Impairment losses

TOTAL DEPRECIATION AND IMPAIRMENT

1,624 1,646

272 133

(71)

42 40

1,894 1,881

TOTAL NET VALUES

(2)

In 2020, changes in property, plant and equipment were as follows:

Exchange rate impact

31/12/2019

Increases

Decreases

Other

31/12/2020

In millions of euros

Land

164 956 363

4

-

(4)

8

172

Buildings

47 24 95 36

(17)

(15)

40 48 30 12

1,011

Industrial machinery, plant and equipment

(9)

(3)

424

Store fixtures and furnishings

1,013

(43)

(50)

1,044

Other property, plant and equipment assets

408 136

(7) (1)

(5) (4)

443 176

Fixed assets under construction

134 340

(90)

TOTAL GROSS VALUES Depreciation of buildings

3,040

(76) (17)

(80)

47

3,270

373

39

(7)

8

395

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

215 548

28 98

(8)

(1)

24 (5)

257 574

(43)

(24)

254 109

39 16

(6) (0)

(3) (2)

(5) (3) 19 28

278 119

Impairment losses

TOTAL DEPRECIATION AND IMPAIRMENT

1,498 1,542

219 121

(75)

(38) (42)

1,624 1,646

TOTAL NET VALUES

(2)

impairment losses have been recognised are not individually material when compared with the Group’s overall business. No item of property, plant or equipment were pledged as collateral to secure financial liabilities. Furthermore, the amount of property, plant and equipment assets in temporary use is not material when compared with their total value.

Investments made in 2021 and 2020 concern mainly the opening and renovation of stores and capital expenditure to expand production capacity. Impairment losses relate to production lines and stores deemed not to be sufficiently profitable. It is noted that the cash-generating units on which

382 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL