L'Oréal - 2018 Registration Document

5 Parent company financial statements CHANGES IN SHAREHOLDERS' EQUITY

CHANGES IN SHAREHOLDERS' EQUITY 5.3.

The share capital comprises 560,396,652 shares with a par value of €0.2 each following transactions carried out in 2018: subscription for 919,474 shares following the exercise of options, the grant of 993,765 free shares and 462,139 shares under the s employee shareholding plan;

cancellation of 2,497,814 treasury shares. s Changes in shareholders’ equity are as follows:

Reserves and retained earnings Net profit

Additional paid-in capital

1976 revaluation reserve

Share capital

Regulated provisions

Total

€ millions

Balance at 31 December 2015 before appropriation of net profit

112.6 2,654.5

43.7 5,410.4 3,055.4

80.7 11,357.3

Changes in share capital

0.4

162.8

163.2

Cancellation of Treasury stock Appropriation of 2015 net profit

- 0.6

- 497.9

- 498.5

1,313.5 -1,313.5

0.0

Dividends paid for 2015

- 1,741.9 3,014.4

- 1,741.9 3,014.4

2016 net profit

Other movements during the period

11.5

11.5

Balance at 31 December 2016 before appropriation of net profit

112.4 2,817.3

43.7 6,226.0 3,014.4

92.2 12,306.0

Change in accounting policy at 1 January 2017 (1)

-4.7

-4.7

Balance at 1 January 2017 before appropriation of net profit

112.4 2,817.3

43.7 6,221.3 3,014.4

92.2 12,301.3

Changes in share capital

0.3

118.0

118.3 -498.2

Cancellation of Treasury stockres Appropriation of 2016 net profit

-0.6

-497.6

1,156.7 -1.156.7

0.0

Dividends paid for 2016

-1,857.7 3,051.7

-1,857.7 3,051.7

2017 net profit

Other movements during the period

-1.2

-3.2

-4.4

Balance at 1 January 2018 before appropriation of net profit

112.1 2,935.3

42.5 6,880.4 3,051.7

89.0 13,111.0

Changes in share capital

0.5

135.0

135.5 -498.1

Cancellation of Treasury stock Appropriation of 2017 net profit

-0.5

-497.6

1,045.1 -1,045.1

0.0

Dividends paid for 2017

-2,006.6 3,594.9

-2,006.6 3,594.9

2018 net profit

Other movements during the period BALANCE AT 31 DECEMBER 2018 BEFORE APPROPRIATION OF NET PROFIT

-0.2

-24.6

-24.8

112.1 3,070.3 64.4 14,311.9 First application of regulation No. 2015-05 issued by the Autorités des Normes Comptables (ANC) relative to derivative financial instruments and hedging operations (see (1) note 1). 42.5 7,427.7 3,594.9

The amount added to reserves for unpaid dividends on some treasury shares held by L’Oréal as well as movements between 1 January and the date of payment of the dividend, on maturing free shares plans, stock option exercises and the final number of shares eligible for the bonus dividend, stood at -€0.7 million in 2018, compared with €9.9 million in 2017 and €14.2 million in 2016.

Accelerated tax-driven depreciation at 31 December 2018 amount to €64.2 million compared with €88.8 million at 31 December 2017 and €91.9 million at 31 December 2016. Details of option plans and free share plans are provided in note 17.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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