Hermès - Registration Document 2016

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:

2016

2015

Numerator in millions of euros Basic net income

1,100.3

972.6

Adjustments

-

-

Diluted net income

1,100.3

972.6

Denominator in number of shares Weighted average number of ordinary shares

104,518,900 104,395,884

Basic earnings per share

10.53

9.32

Weighted average number of shares resulting from options Weighted average number of shares resulting from bonus shares Weighted average number of diluted ordinary shares

600,449

692,884

105, 119,349 105,088,768

Diluted earnings per share Annual average price per share

10.47

9.26

€345.52

€325.14

GOODWILL

NOTE 10

10.1 Change in the year

5

Exchange rate impact

31/12/2015

Increases

Decreases

Others

31/12/2016

In millions of euros

Goodwill

143.9 143.9

- -

- - - - - -

2.2 2.2 1.3

- -

146.1 146.1

TOTAL GROSS VALUES

Amortisation recognised before 1 January 2004

31.6 74.4

32.9 76.5

Impairment losses

(0.1)

2.3 2.3

TOTAL AMORTISATION AND IMPAIRMENT

106.0

- -

1.3 0.9

109.5

TOTAL NET VALUES

37.9

(2.3)

36.6

As at 31 December 2016, the net value of goodwill was equal to €36.6million, primarily relating to the CGUs of the distribution entities (€27.3million) and the Group’s production CGUs (€9.3 million). There was no material change in the net value of goodwill during the year.

10.2 Impairment tests

impairment test of this asset as well as those of the other non-significant 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. Other CGUs Individually, the above goodwill figures are not significant and do not bring to light any reasonably possible impairment scenario.

CGUs of the distribution entities Within this CGU, themain goodwill is that of Hermès Japon, which stands at €16.1 million. The pre-tax discount rate applied to projected cash flows for Japan is 9.6%; for other countries, it varies from9.3% to 38.5%. The annual asset

2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

181