L'Oréal - 2018 Registration Document

2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Discontinued operations and 2.3. assets and liabilities held for sale The Body Shop business has been accounted for as a Business held for sale as of 30 June 2017. Consequently, The Body Shop business is shown within discontinued operations in the consolidated income statements and in the consolidated statements of cash flows

for all periods presented. Transactions carried out between The Body Shop group companies and other consolidated companies have been eliminated. At 31 December 2016, The Body Shop was financed by Group cash for an amount of €53.3 million. Other intragroup transactions are not material. The notes to the income statements have been adjusted for The Body Shop business for all periods presented.

Income statements from discontinued operations (The Body Shop) 2.3.1.

2018

2017 524.7 -15.7 -240.1

2016 920.8

€ millions

Sales

- - -

Operating profit

35.6

Net profit from discontinued operations (1) 25.3 Of which -€13.7 million in profits generated during the period until the disposal. The effective sale of this business generated a disposal loss net of expenses (1) amounting to -€226.4 million, including a mechanical exchange loss of -€245.3 million.

4

Statements of cash flows from discontinued operations (The Body Shop) 2.3.2.

2018

2017 -36.7 -24.4 71.5 10.4

2016 43.9 -51.8

€ millions

Net cash provided by operating activities Cash flows from investing activities Cash flows from financing activities

- - -

-3.5

NET CASH (USED IN) FROM DISCONTINUED OPERATIONS

-

-11.4

Situation in Argentina 2.4. Argentina has been considered a hyperinflationary economy since 1 July 2018 and L’Oréal has applied the provisions of IAS 29 Financial Reporting in Hyperinflationary Economies from that date.

Under IAS 29, the non-monetary items in the balance sheet and income statement have been adjusted using a general price index, such that they are stated in terms of the measuring unit current at the end of the reporting period, and translated at the closing exchange rate. Argentina accounts for less than 1% of the Group's sales.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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