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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
283
COMBINED GENERAL MEETING OF 6 JUNE 2017
8
PURPOSE AND DRAFT RESOLUTIONS
FOURTH RESOLUTION:
ALLOCATION OF NET INCOME – DISTRIBUTION OF AN ORDINARY DIVIDEND
Purpose
In the fourth resolution, we submit to you for approval the appropriation of net income for the year, in the amount of €1,091,291,203.38. Of this
amount, €273,504 is to be appropriated to the reserve for purchasing original works of art and €7,311,168.66 is to be distributed to the Active
Partner, as stipulated in the Articles of Association.
We invite you to allocate additional reserves of €200,000,000. The Supervisory Board recommends that the ordinary dividend be fixed at €3.75
per share. This represents an increase of 11.9% in the ordinary dividend relative to the previous year.
In accordance with Article 243 bis of the French General Tax Code (Code général des impôts), for shareholder beneficiaries who are natural
persons fiscally domiciled in France, this entire dividend will be automatically considered to determine their total income subject to the income
tax schedule, andwill be eligible for the allowance of 40%provided for in Article 158-3 of the FrenchGeneral Tax Code (Code général des impôts).
After the interim dividend of €1.50 per share paid on 24 February 2017, the remainder of the ordinary dividend for the year, which amounts
to €2.25 per share, would be detached from the shares on 8 June 2017 and payable in cash on 12 June 2017 based on closing positions on
9 June 2017. As Hermès International is not entitled to receive dividends for shares held in treasury, the corresponding sums will be transferred
to “Retained earnings” on the date the dividend becomes payable.
The gross dividend per share paid in respect of each of the three previous financial years is as follows:
In euros
Financial year
2015
2014
2013
Ordinary dividend
3.35
2.95
2.70
Extraordinary dividend
-
5.00
-
Amount eligible for the reduction provided by Article 158-3 of the French General
Tax Code (
Code général des impôts
)
1.34
3.18
1.08
We note that the five-year summary of the Company’s financial data required under Article R. 225-102 of the French Commercial Code
(Code
de commerce
) is presented on page 238.
Purpose
Fourth resolution:
Allocation of net income – Distribution of an ordinary
dividend
The General Meeting, acting under the quorum and majority require-
ments applicable to Ordinary General Meetings, noting that the pro-
fit for the year amounted to €1,091,219,203.38 and that the earlier
retained earnings again amount to €1,055,083,061.18, and after
noting that the legal reserve is provided in full, approves the allocation
of these amounts, representing a distributable profit for the amount of
€2,146,302,264.56, as proposed by the Supervisory Board, namely:
s
to the reserve for purchasing original works of art, in the sum of:
€273,504;
s
to the Active Partner, pursuant to Article 26 of the Company’s Articles
of Association, in the sum of: €7,311,168.66;
s
to shareholders, as an ordinary dividend of €3.75 per share
, being:
€395,885,295
1
;
s
to other reserves in the sum of: €200,000,000;
s
to retained earnings, the balance of: €1,542,832,296.90;
s
altogether
: €2,146,302,264.56.
The Ordinary General Meeting resolves that the remainder of the ordi-
nary dividend for the year, which amounts to €2.25 per share after the
payment of an interimdividend of €1.50 per share on 24 February 2017,
shall be detached from the shares on 8 June 2017 and shall be payable
in cash on 12 June 2017 based on closing positions on 9 June 2017.
As Hermès International is not entitled to receive dividends for shares
held in treasury, the corresponding sums will be transferred to “Retained
earnings” on the date the dividend becomes payable. In accordance
with Article 243 bis of the French General Tax Code (Code général des
impôts), it is specified that, for the shareholder beneficiaries who are
natural persons fiscally domiciled in France, this entire dividend will be
taken into account for the right to determine their total income subject to
the income tax schedule, and will be eligible for the 40% provided for in
Article 158-3 of the French General Tax Code (Code général des impôts).
It is also recalled that, in accordance with Article 119
bis
of the French
General Tax Code
(Code général des impôts),
the dividend distributed to
shareholders not fiscally domiciled in France is subject to a withholding
tax at a rate determined by the tax jurisdictions of the shareholder.
1. The total amount of the distribution referred to above is calculated on the basis of the number of shares outstanding as of 31 December 2016, being 105,569,412 shares, and may vary
if the number of shares granting rights to a dividend changes between 1 January 2017 and the ex-dividend date, depending in particular on the changes in the number of treasury shares
which are not entitled to the dividend in accordance with the provisions of Article L.225 -210 paragraph 4 of the French Commercial Code and the final allocations of bonus shares , eligible
for the dividend.