L'Oréal - 2018 Registration Document

Parent company financial statements NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

Notional

Market value

31.12.2018 31.12.2017 31.12.2016

31.12.2018 31.12.2017 31.12.2016

€ millions

Currency options EUR/CNY

100.9

37.8

17.5

2.3 1.8 4.1 0.9 0.0 0.0 0.0 9.1 9.1 0.0

1.7 0.5 0.1 0.2 4.0 1.8 0.6 8.9 8.9 0.0

0.3 0.0 0.0 0.0 0.2 0.1 0.4 1.0 1.0 0.0

EUR/BRL EUR/TRY USD/BRL EUR/RUB EUR/USD

35.4 31.5 22.8

4.6 0.7 4.8

7.5 0.0 7.8

0.0 0.0 0.0

76.7 25.4 16.1

39.5 14.9

Other currencies

5.9

Currencies options total

190.6 190.6

166.1 166.1

93.1 93.1

Of which total options purchased s

Of which total options sold s

0.0

0.0

0.0

TOTAL INSTRUMENTS

1,997.3

1,615.4

1,516.8

-29.3

-1.0

-93.6

Transactions and balances with related entities and parties NOTE 23

All material related-party transactions were entered into on an arm’s length basis.

5

Off-balance sheet commitments NOTE 24

Lease commitments 24.1. Operating lease commitments amount to €64.5 million due in less than one year, €236.2 million due between one and 5 years and €105.2 million due after 5 years. The breakdown of finance lease commitments is provided in note 13.

Other off-balance sheet commitments 24.2. Confirmed credit facilities are set out in note 19. Other off-balance sheet commitments can be broken down as follows:

31.12.2018

31.12.2017 31.12.2016

€ millions

Commitments in connection with employee retirement obligations and related benefits (1)

9.0 9.3

- 97.7

74.1

Commitments to buy out non-controlling interests

8.6

9.3

Guarantees given (2) Guarantees received

1,799.4

1,741.4

1,977.8

3.7

3.8

4.2

Capital expenditure orders

77.3

84.6

69.7

Documentary credits - The discount rate used in 2018 to measure commitments was 1.75% for plans providing for the payment of capital and 2.00% for annuity plans, compared with 1.50% and (1) 1.75% respectively in 2017, and 1.50% and 2.00% in 2016. An agreement for the pooling of employee-related liabilities was set up in 2004. Pursuant to this agreement, commitments are allocated among the French companies in the Group and their financing is organised in proportion to their respective payroll costs (customised for each plan) so that the companies are joint and severally liable for meeting the aforementioned commitments within the limit of the collective funds built up. This line includes miscellaneous guarantees and warranties, of which €1,774.8 million at 31 December 2018 on behalf of the Group's direct and indirect subsidiaries, (2) compared with €1,709.1 million at 31 December 2017 and €1,937.3 million at 31 December 2016. Seller’s warranties are also included in this amount as appropriate. - -

REGISTRATION DOCUMENT / L'ORÉAL 2018

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