L'Oréal - 2018 Registration Document

4 2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Fair value of borrowings and debt 9.1.8. The fair value of fixed-rate debt is determined for each loan by discounting future cash flows, based on bond yield curves at the balance sheet date, after allowing for the spread corresponding to the Group’s risk rating. The net carrying amount of outstanding bank loans and other floating-rate loans is a reasonable approximation of their fair value. The fair value of borrowings and debt amounted to €1,241.8 million at 31 December 2018 compared with €1,175.0 million at 31 December 2017 and €1,265.3 million at 31 December 2016.

Debt covered by collateral 9.1.9. No debt was covered by material amounts of collateral at 31 December 2018, 2017 and 2016. Confirmed credit lines 9.1.10. At 31 December 2018, L’Oréal and its subsidiaries had €3,643.6 million of confirmed undrawn credit lines, compared with €3,675.2 million at 31 December 2017 and €3,726.6 million at 31 December 2016. At 31 December 2018, these credit lines had a maturity of between one and four years.

Cash and cash equivalents 9.2.

31.12.2018

31.12.2017

31.12.2016

Carrying amount

Acquisition cost

Carrying amount 1,810.4 1,236.1 3,046.6

Acquisition cost

Carrying amount

Acquisition cost

€ millions

Marketable securities

1,899.8 2,092.2 3,992.0

1,900.5 2,092.2 3,992.7

1,810.8 1,236.1 3,046.9

758.4 987.6

758.5 987.6

Bank accounts and other cash and cash equivalents

TOTAL

1,746.0

1,746.1

Marketable securities consist mainly of SICAV money-market funds and unit trusts (on which the return is based on EONIA). They are considered as financial assets at fair value through profit or loss

Term accounts with a maturity of less than 3 months at inception are shown on the Bank accounts and other cash and cash equivalents line.

Non-current financial assets 9.3.

31.12.2018

31.12.2017

31.12.2016

Carrying amount

Acquisition cost

Carrying amount

Acquisition cost

Carrying amount

Acquisition cost

€ millions

Investments in non-consolidated companies Sanofi (1) s

8,945.0

4,033.5

8,494.6

4,033.5

9,091.7

4,033.5

Unlisted securities (2)

52.5

147.5

32.1

127.1

17.5

112.5

s

Financial assets at amortised cost Non-current loans and receivables s

103.0

105.5

239.5

242.4

197.3

200.8

TOTAL 4,346.8 L’Oréal’s stake in Sanofi was 9.48% at 31 December 2018. The carrying amounts at 31 December 2018, 31 December 2017 and 31 December 2016 (€8,945.0 million, (1) €8,494.6 million and €9,091.7 million respectively) correspond to the market value of the shares based on the closing price at each of these dates (€75.66, €71.85 and €76.90, respectively). The acquisition cost of €4,033.5 million corresponds to an entry cost of €34.12. The investment is measured at fair value through other comprehensive income. This heading mainly includes: (2) strategic investments in investment funds measured at fair value through other comprehensive income; s securities of our subsidiaries in Venezuela deconsolidated since 31 December 2015, for €94.4 million fully written down. s In the absence of specific events, their acquisition cost is deemed to be the best possible estimate of fair value. 9,100.5 4,286.5 8,766.2 4,403.0 9,306.5

Other financial income and expenses 9.4. This item breaks down as follows:

2018

2017 -16.3

2016 -20.3

€ millions

Interest component of pension costs Other financial income and expenses

-7.9 -7.1

-9.7

-5.5

TOTAL

-15.0

-26.0

-25.8

REGISTRATION DOCUMENT / L'ORÉAL 2018

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