L'Oréal - 2018 Registration Document

2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Debt by maturity date 9.1.3.

31.12.2018

31.12.2017

31.12.2016

€ millions

Less than 1 year (1)

1,227.8

1,161.0

1,233.7

1 to 5 years

3.6 9.9

4.2 9.2

12.1 18.8

More than 5 years

TOTAL 1,264.6 At 31 December 2018, the Group had confirmed undrawn credit lines for €3,643.6 million compared with €3,675.2 million at 31 December 2017 and €3,726.6 million at (1) 31 December 2016. These lines were not subject to any covenants. 1,241.4 1,174.4

Estimated interest expense at 31 December 2018, as at 31 December 2017 and 2016, is not material given the outstanding debt at these dates, comprising short-term marketable instruments drawn at very short terms and at negative interest rates in France, very short-term miscellaneous borrowings contracted locally by subsidiaries, and finance lease liabilities.

These estimates are computed on the basis of the effective interest rate at the end of the financial year, after allowing for hedging instruments and assuming that no debt is rolled over at maturity. Amounts payable under capital leases are not taken into account as they are not material.

4

Debt by currency 9.1.4.

31.12.2018

31.12.2017

31.12.2016

€ millions

Euro (EUR)

404.8 571.7

378.2 630.2

21.8

US Dollar (USD)

989.1

British Pound (GBP) Chilean Peso (CLP) Colombian Peso (COP) Argentine Peso (ARS) Egyptian Pound (EGP) Brazilian Real (BRL)

46.3 26.2 25.4 21.6 20.6 19.8 16.9 15.6 12.3 60.1

2.2

15.0 10.7 14.6 11.9 93.9 46.8 -

18.7 29.4

2.5

13.6 27.6 19.2

Chinese Yuan Renminbi (CNY)

Hong Kong dollar (HKD) Australian dollar (AUD)

- -

-

0.1

Other TOTAL

52.8

60.7

1,241.4

1,174.4

1,264.6

Breakdown of fixed rate – floating rate debt 9.1.5.

(after allowing for interest rate hedging instruments)

31.12.2018

31.12.2017

31.12.2016

€ millions

Floating rate

1,162.0

1,132.3

1,202.6

Fixed rate

79.4

42.1

62.1

TOTAL

1,241.4

1,174.4

1,264.6

Effective interest rates 9.1.6. Effective interest rates on Group debt after allowing for hedging instruments are 1.69% in 2018 compared with 0.94% in 2017 and 0.68% in 2016 for short-term marketable instruments.

Bank loans amounted to €0.6 million at 31 December 2018 compared with €0.6 million at 31 December 2017 and €4.0 million at 31 December 2016.

Average debt interest rates 9.1.7. Average debt interest rates after allowing for hedging instruments break down as follows:

31.12.2018

31.12.2017

31.12.2016

Euro (EUR) (1) US Dollar (USD)

-0.45% 1.97%

-0.42% 1.00%

-0.33% 0.48%

The fall in euro interest rates is now reflected by drawdowns of short-term marketable instruments with negative interest rates. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2018

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