L'Oréal - 2018 Registration Document

2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Change in the scope of consolidation (1)

€ millions 2017

Acquisitions/ Depreciation

Disposals/ Reversals

Other movements

31.12.2016

31.12.2017

Brands with indefinite useful life (2) Amortisable brands and product ranges

2,219.5

-

- -

-260.3

-198.2

1,761.0

117.9 323.6

0.1 0.4

1.0 1.0

-7.9 -6.7 41.1 -65.8

111.0 308.3

Licences and patents

-10.1 -44.9

Software

1,151.2

67.1

-42.4

1,172.0

Customer relationships

606.8

-

-1.4 -2.4

3.0

542.6

Key money

82.3

7.7

-36.9 -52.4

2.2

53.0

Others

263.6

140.3 215.7

-27.3 -86.1

-125.8 -361.1

198.5

Gross value

4,765.0

-387.0

4,146.4

Brands with indefinite useful life

165.5

-

- -

-

-10.7

154.8

Amortisable brands and product ranges

79.8

4.1

-1.5

-4.2 -3.1

78.2

Licences and patents

150.5 804.5 290.9

11.7

-10.1 -44.9

-

149.0 816.6 349.6

Software

127.7

-26.9

-43.8 -36.5

Customer relationships

96.6

-1.4 -2.4

-

Key money

19.5 74.9

4.7 5.3

-14.0 -38.7 -81.0

0.7

8.6

Others

-26.8 -85.5

-4.3

10.4

Amortisation and provisions Other intangible assets – net

1,585.5 3,179.4

250.2 -34.5

-101.9 -259.2

1,567.4 2,579.1

-0.6

-305.9

4

This item consists mainly of changes in the scope of consolidation: The Body Shop and CeraVe. (1) At 31 December 2017, brands with an indefinite useful life consist mainly of Matrix (€298.3 million), IT Cosmetics (€201.5 million), CeraVe (€173.7 million), (2) Kiehl’s (€132.4 million), Shu Uemura (€103.8 million), NYX Professional Makeup (€95.0 million), Clarisonic (€92.1 million), Decléor and Carita (€81.4 million), and Magic (€80.8 million).

Other movements mainly consisted of the negative change in exchange rates over the period of -€241.7 million.

Accumulated impairment losses amounted to €14.0 million on Biomedic, €42.6 million on Yue-Sai, €52.2 million on Softsheen-Carson and €46.1 million on Magic at 31 December 2017.

Change in the scope of consolidation (1)

€ millions 2016

Acquisitions/ Depreciation

Disposals/ Reversals

Other movements

31.12.2015

31.12.2016

Brands with indefinite useful life (2) Amortisable brands and product ranges

2,031.5

-

- -

234.1

-46.0

2,219.5

116.1 319.6

1.8 2.6

-

0.1 1.0

117.9 323.6

Licences and patents

-0.4

0.9 0.1

Software

1,031.2

87.2

-52.0

84.7 12.0

1,151.2

Customer relationships

539.5

-

-

55.2

606.8

Key money

70.0

12.1

-1.5 -0.1

0.5 0.0

1.3

82.3

Others

232.2

106.9 210.6

-75.4 -22.5

263.6

Gross value

4,340.1

-54.1

290.9

4,765.0 165.51

Brands with indefinite useful life

116.9

49.0

- -

- -

-0.3 -1.1 -0.4

Amortisable brands and product ranges

76.3

4.6

79.8

Licences and patents

135.5 739.6 241.1

15.5

-0.5

0.3 0.0 0.0 0.0 0.0 0.3

150.5 804.5 290.9

Software

109.5

-52.0

7.5 8.7 0.0

Customer relationships

41.0

-

Key money

17.1 70.8

3.8 7.0

-1.4 -0.1

19.5 74.9

Others

-2.8

Amortisation and provisions Other intangible assets – net

1,397.2 2,942.9

230.5 -19.9

-54.0

11.6 -34.1

1,585.5 3,179.4

-0.2

290.6

This mainly related to changes in the scope of consolidation: IT Cosmetics. (1) At 31 December 2016, brands with an indefinite useful life consisted mainly of The Body Shop (€486.5 million), Matrix (€330.1 million), IT Cosmetics (€228.6 million), (2) Kiehl’s (€145.1 million), Magic (€135.2 million), Shu Uemura (€110.8 million), NYX Professional Makeup (€106.3 million), Clarisonic (€102.5 million) and Decléor and Carita (€81.4 million).

Other movements mainly consisted of the negative change in exchange rates over the period for -€29.8 million.

Accumulated impairment losses amounted to €14.0 million on Biomedic, €45.4 million on Yue-Sai, €57.0 million on Softsheen-Carson and €49.1 million on Magic at 31 December 2016.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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