Hermès - Registration Document 2016

6

PARENT COMPANY FINANCIAL STATEMENTS

NOTE TO THE FINANCIAL STATEMENTS

INCOME TAX

NOTE 5

5.1 Breakdown of income tax

2016

2015

In millions of euros

Net income before tax

1,097.0 1,100.9

871.0 874.9

Net income before tax and employee profit-sharing

Employee profit-sharing

(3.9) (5.8)

(3.9)

Income tax

(28.3) (55.6)

Tax (parent company only)

(28.5)

s o/w tax on net extraordinary income

(5.9)

(0.1)

o/w tax on other items

(22.6)

(55.5)

s

Tax arising from tax consolidation

22.8

27.3

NET INCOME

1,091.2

842.8

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 As at 31 December 2016, the future tax receivable was equal to €14.5 million, versus €11.4 million as at 31 December 2015. This mainly consists of temporarily non-deductible expenses. The increases or decreases of the future tax liability were calculated taking into account additional contributions of 3.30%.

Hermès International recognised a tax expense of €5.8 million in 2016, compared with €28.3 million in 2015. In addition, Hermès International is jointly liable for payment of the tax of the fiscally consolidated group, which amounted to €211.6 million in 2016 compared with €221.1 mil- lion in 2015. The income tax expense takes into account the additional tax contribu- tions of 3.30% and the tax on dividends. The additional contribution of 10.7% was abolished at the end of 2015. 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 31/12/2015

Gross value as at 31/12/2016

Net value as at 31/12/2016

Increases

Decreases

Others

Amortisation

In millions of euros

Intangible assets

25.8

6.3

-

-

32.1

(26.5)

5.5

Concessions, patents and brands

-

-

-

-

Others

25.8 39.4

6.3 3.8

32.1 43.0

(26.5) (24.3)

5.5

Property, plant and equipment

(0.1) (0.0) (0.1)

-

18.7

Land

0.2 0.5

-

0.2 0.4

-

0.2

Buildings

(0.4)

-

Other assets

38.7

3.8

42.5

(23.9)

18.5

INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

65.2

10.1

(0.1)

-

75.1

(50.9)

24.2

222

2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL