L'Oréal - 2018 Registration Document

2018 Consolidated Financial Statements TO THE CONSOLIDATED FINANCIAL STATEMENTS

Impairment tests of Cash Generating Units for which the carrying amount of goodwill and intangible assets with indefinite useful lives is significant, are carried out based on the following data and assumptions:

Discount rate (%)

Net carrying amount of goodwill and brands with an indefinite useful life

International excluding USA

USA

€ millions

2018 test Maybelline/Garnier

1,251.6

6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 9.3 6.8 6.8 6.8 6.8 7.1 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 9.1 6.8 6.8 6.8

8.1 8.1 8.1 8.1 8.1 8.1 8.1 8.1 8.1 8.1 (1) 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 (1) (1) 8.1 8.1

IT Cosmetics L’Oréal Paris

986.0 899.1 825.3 809.0 715.5 631.6 533.2 471.2 421.7 389.0 377.5 230.8 167.1 852.4 795.1 689.8 607.4 519.8 470.2 405.2 380.3 338.1 315.1 221.9 161.9 896.4 870.5 800.3 766.2 662.5 519.8 464.1 451.5 397.9 360.2 324.3 246.9 176.4

Lancôme

CeraVe

Matrix

Redken/PureOlogy

YSL Beauté

Perfumes/Helena Rubinstein/Atelier Cologne

NYX Professional Makeup

L’Oréal Professionnel/Kérastase

Vichy/Dermablend

Urban Decay

4

L’Oréal Beauty Device 2017 test Maybelline/Garnier

1,186.0

L’Oréal Paris

Lancôme

Matrix

Redken/PureOlogy

YSL Beauté

Perfumes/Helena Rubinstein/Atelier Cologne

NYX Professional Makeup

L’Oréal Professionnel/Kérastase

Magic (2)

-

Vichy/Dermablend

(1)

Urban Decay

7.7 7.7

L’Oréal Beauty Device 2016 test Maybelline/Garnier

1,291.7

7.8

The Body Shop L’Oréal Paris

(1)

7.8 7.8 7.8 7.8 7.8 7.8 7.8 (1)

Lancôme

Matrix

Redken/PureOlogy

YSL Beauté

Perfumes/Helena Rubinstein/Atelier Cologne

NYX Professional Makeup

L’Oréal Professionnel/Kérastase

Magic (2)

-

Vichy/Dermablend

(1)

Urban Decay

7.8

L’Oréal Beauty Device 7.8 Since the USD amounts for the YSL Beauté, The Body Shop and the Vichy/Dermablend CGUs are not material, no specific discount rate has been used in this respect. (1) The Magic Holdings business no longer comprises a full Cash Generating Unit from 2018 due to the reorganisation of the distribution networks and the commercial (2) structures that are now grouped together in the Consumer Products Division in China. No impairment of goodwill or other intangible assets was recognised in 2018. At 31 December 2018, a 1% increase in the discount rate on all Cash Generating Units of the Group would lead to an impairment loss risk of around €38.5 million. The terminal growth rate is consistent in accordance with market data, i.e . 2.5% for Europe and 3% for the rest of the world.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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