L'Oréal - 2018 Registration Document

4 2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Goodwill is allocated by Cash Generating Unit or by groups of Cash Generating Units. A Cash Generating Unit corresponds to one or more worldwide brands.

€ millions 2018

Acquisitions/ Disposals

Other movements 31.12.2018

31.12.2017

L’Oréal Professionnel/Kérastase

380.3 391.5 539.6 137.4

8.6

388.9 405.8 560.5 137.4

Matrix

14.3 20.9

Redken/PureOlogy Decléor and Carita

Others

3.0

62.5 62.5

0.6

66.1

Professional Products Total

1,451.7

44.4 46.8 65.6

1,558.7

L’Oréal Paris

852.4

899.1

Maybelline/Garnier

1,186.0

1,251.6

LaSCAD

158.3 310.2 155.6

158.3 322.6 139.7 429.4 495.4 825.3 137.9 533.2 454.9

NYX Professional Makeup

12.4 -15.9

Niely

Stylenanda

-

429.3

0.1 3.2

Other (1)

426.0

66.2

Consumer Products Total

3,088.5

495.5

112.1

3,696.1

Lancôme

795.1 129.3 519.8 453.9

30.2

Shu Uemura YSL Beauté

8.6

13.4

Perfumes

1.0 1.5 6.1

L’Oréal Beauty Device (2)

69.8

71.3

Urban Decay IT Cosmetics

144.1 749.0

150.2 775.9

27.0

Others

64.6

0.4

65.0

L’Oréal Luxe Total Vichy/Dermablend

2,925.6

-

88.1 76.1

3,013.7

278.1 943.0

354.3 629.5 161.4

CeraVe

-313.5 100.3

La Roche-Posay

52.4 63.3

8.7

Others

14.3

77.6

Active Cosmetics Total

1,336.8

8.7

-122.8

1,222.8

Other

69.6

36.1

105.7

GROUP TOTAL 9,597.1 The Magic Holdings business no longer comprises a full Cash Generating Unit due to the reorganisation of the distribution networks and the commercial structures (1) that are now pooled with the Consumer Products Division in China. This Cash Generating Unit mainly concerns Clarisonic. (2) 8,872.3 602.8 121.9

The acquisitions in 2018 mainly involved Stylenanda, Logocos, ModiFace, Pulp Riot and the La Roche-Posay thermal centre, totalling €602.8 million. The €943.0 million goodwill stemming from the acquisition of CeraVe was primarily allocated to the amount of €99.7 million to the La Roche-Posay Cash Generating Unit, €73.5 million to the Vichy Cash Generating Unit and €54.5 million to the L’Oréal Paris Cash Generating Unit on the basis of expected synergies.

No significant disposals took place during 2018. Other movements mainly reflect the positive impact of changes in exchange rates for €124.6 million. The accumulated impairment losses relating to L’Oréal Beauty Device, Magic, Softsheen-Carson, Yue-Sai and Sanoflore amounted to €228.3 million, €152.4 million, €146.3 million, €30.9 million and €35.7 million respectively at 31 December 2018.

Change in goodwill in 2018 (€ millions)

9,597

603

125

- 3

8,872

31.12.2017

Acquisitions

Translation difference

Other

31.12.2018

REGISTRATION DOCUMENT / L'ORÉAL 2018

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