L'Oréal - 2018 Registration Document

4 2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Owing to the Group’s policy of hedging a large part of annual requirements for the following year before the end of the current year, the sensitivity of profit or loss to changes in foreign exchange rates at 31 December is marginal. The impact of changes in foreign exchange rates on the foreign exchange cash flow hedges reserve is described in note 11.3.

All derivative financial instruments held for the currency risk hedging purposes have a maturity of less than 18 months at inception and can be analysed as follows:

Nominal

Market value

31.12.2018 31.12.2017 31.12.2016

31.12.2018 31.12.2017 31.12.2016

€ millions

Currency futures Purchase/Sale of EUR against foreign currencies

2,552.5 1,784.8

2,148.0

-54.8

61.5

-92.7

CNY/EUR USD/EUR GBP/EUR RUB/EUR MXN/EUR CAD/EUR AUD/EUR HKD/EUR BRL/EUR TRY/EUR

452.1 319.2 295.5 238.7 171.7 119.4

185.1 188.3 229.0 127.7 168.3 173.2

143.6 181.2 352.4 243.1 156.9 180.1

-9.2

1.4

-0.3

-12.9

13.6

-21.8 24.1 -44.3

2.6 5.5

5.6

-1.7

-2.9

8.9 1.9 3.0

4.0

2.7 1.8

-2.6 -2.7

87.8 87.6 63.2 62.4

97.1 42.2 57.7 76.7

82.9

117.6

-22.9

16.2 2.9 4.1 3.3 -2.0 -3.9 -3.6 -3.0 -4.8 -4.8 4.4 -10.6

-23.0 -14.1

78.4 84.1

-4.1 -7.1 -9.4 -0.7 1.7 9.0 1.5 2.1 5.3 3.0 3.0

5.7

EUR/Asia Pacific currencies

288.0

230.8

232.2

-6.4

EUR/Eastern European currencies

66.7

68.9

85.7

0.1

EUR/Other currencies

300.1 377.9 161.7 126.8

139.8 434.8 202.2 149.7

209.9 441.2 179.9 177.2

-11.4 -13.3

Purchase of USD against foreign currencies

USD/Other currencies

-2.2

USD/Latin American currencies

-13.7

USD/CAD

89.3

82.9 14.2 14.1

84.1 23.1 23.1

2.7 9.2 9.2

Sale of USD against foreign currencies

185.3 185.3

USD/Asia Pacific currencies

USD/Other currencies Other currency pairs

-

0.1

-

-

-

-

1,073.6

705.0

658.0

0.8

-27.2 18.9

14.5

CURRENCY FUTURES TOTAL

4,189.2 2,938.8

3,270.4

-42.0

-82.2

Currency options EUR/CNY

100.9

37.8 34.9 10.5 76.7 75.5 23.9 101.6

17.5 36.2

2.3 1.8 4.1

1.7 2.8 1.9 3.3 4.0 5.0 2.4 0.2

0.3 0.1

EUR/HKD EUR/TRY EUR/GBP EUR/RUB EUR/USD

35.4 31.4

-

-

- - - -

49.7 39.6 39.0

- - - -

3.9 0.2 0.2 0.0 4.8 4.8 -

EUR/Other currencies Other currencies pairs

7.5 9.1

22.8

8.1

0.9 9.1 9.1

CURRENCY OPTIONS TOTAL Of which total options purchased

190.6 190.6

369.0 369.0

198.6 198.6

21.3 21.3 40.2

TOTAL

4,379.8 3,307.8

3,469.0

-32.9

-77.4

The market values by type of hedging are as follows:

2018

2017 -0.6 40.8 40.2

2016 -20.0 -57.4 -77.4

€ millions

Fair value hedges (1) Cash flow hedges

-9.7

-23.2 -32.9

TOTAL

Fair value hedges relate to currency risks on operating receivables and payables as well as on foreign currency investments and financing. (1)

The fair value of the derivatives is their market value. The Group has no significant foreign currency exposures that are not hedged in the balance sheet.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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