Hermès - Registration Document 2016

PARENT COMPANY FINANCIAL STATEMENTS

NOTE TO THE FINANCIAL STATEMENTS

SOCIAL SECURITY AND SIMILAR EXPENSES

NOTE 3

2016

2015

In millions of euros

Cost of shares issued to employees of Hermès International (2012 plan)

31.1

-

2010 free share allocation plans 2012 free share allocation plans 2016 free share allocation plans

1.4

3.3

23.2 30.3 19.0

33.7

-

Social security expenses

18.3 55.3

SOCIAL SECURITY AND SIMILAR EXPENSES

105.0

The social security expenses and other personnel costs include the expenses relative to the free share allocation plans for all beneficiaries.

The costs of the free shares for personnel of the French entities resulted in accrued income (refer to Note 2 relative to operating income).

NET EXTRAORDINARY INCOME

NOTE 4

2016

2015

In millions of euros

Extraordinary income

135.6

18.6

Reversals of provisions for accelerated depreciation

0.2 1.8

0.2

Reversals of impairment losses

-

Disposals of property, plant and equipment and non-current financial assets

133.6

18.5

Extraordinary expenses

(123.2)

(20.2)

Provisions for accelerated depreciation

(0.2) (6.9)

(0.2) (1.8)

Additions to impairment

Net value of fixed assets sold NET EXTRAORDINARY INCOME

(116.0)

(18.2)

12.5

(1.6)

The extraordinary expenses are mainly comprised of the cost of shares issued to employees for €92.9million, as part of the free share allocation plans mentioned above, and an impairment loss on intangible assets of €5.1 million.

The extraordinary income includes €62.3 million charged back to subsi- diaries, €31.1million for the cost of the free shareallocationplans for the employees as decided in 2010 and 2012 and that have matured, and the transfer of expenses for the cost of the shares provided to Hermès International employees, as well as the net income from disposals of property, plant and equipment for €16.6 million.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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