HERMÈS - 2019 Universal Registration Document

PARENT COMPANY FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

INCOME TAX

NOTE 7

Breakdown of income tax

Note 7.1

2019

2018

In millions of euros

Net income before tax and employee profit-sharing

1,665.0

1,236.1

Employee profit-sharing Net income before tax

(4.8)

(4.6)

1,660.1

1,231.5

Income tax

(7.1)

7.0

Tax (parent company only)

(40.7)

(15.0)

o/w tax on extraordinary income s

7.1

(0.2)

(47.8)

(14.8)

o/w tax on other items s

Tax arising from tax consolidation Reimbursement of tax on dividends

33.6

21.6

-

0.4

NET INCOME

1,653.1

1,238.5

The amount of the subsidiaries’ tax losses that Hermès International is liable for refunding to its subsidiaries under the Group tax consolidation agreement amounted to €202.8 million as at 31 December 2019, versus €181.7 million as at 31 December 2018.

Hermès International recognized an income tax expense of €7.1 million in 2019, compared with €7.0 million in 2018. In addition, Hermès International is liable for payment of the tax of the fiscally consolidated group, which amounted to €314.7 million in 2019 compared with €263.5 million in 2018. 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 resulting from the tax consolidation takes into account the effect of the consolidation linked, on the one hand to tax losses for certain subsidiaries, and on the other to capital gains on disposals of property, plant and equipment and non-current financial assets, where relevant.

Increases or decreases in future tax

Note 7.2

liability As at 31 December 2019, the future tax receivable was equal to €24.6 million, versus €17.0 million as at 31 December 2018. This mainly consists of temporarily non-deductible expenses, in particular retirement provisions.

OPERATING ASSETS

NOTE 8

31/12/2018

Increases

Decreases

Other (0.3)

31/12/2019

In millions of euros Intangible assets

47.2

18.6

(12.0)

53.4

6

Concessions, patents and brands

-

-

Other intangible assets

47.2 48.9

18.6

(12.0)

(0.3)

53.4 51.7

Property, plant and equipment

2.6

(0.1)

0.3

Land

0.2 0.4

0.2 0.4

Buildings

Other property, plant and equipment assets

48.3 96.1

2.6

(0.1)

0.3

51.1

TOTAL GROSS VALUES

21.1 (8.8)

(12.1)

- -

105.1 (24.3)

Amortisation of intangible assets Concessions, patents and brands

(27.5)

12.0

-

-

Other intangible assets

(27.5) (29.6)

(8.8) (3.0)

12.0

(24.3) (32.5)

Depreciation of property, plant and equipment

0.1

-

Land

-

-

Buildings

(0.4)

(0.4)

Other property, plant and equipment assets TOTAL DEPRECIATION AND AMORTISATION

(29.2) (57.1)

(3.0)

0.1

(32.1) (56.8)

(11.8)

12.1

-

Impairments

(0.5) (0.5) 38.5

0.5 0.5 0.5

- -

TOTAL IMPAIRMENT TOTAL NET VALUES

-

- -

9.3

48.3

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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