L'Oréal - 2018 Registration Document

Presentation of the Group Integrated report GOOD GROWTH MOMENTUM FOR SHARED, LASTING DEVELOPMENT

BY GEOGRAPHIC ZONE

1

2018

2016

2017

€ millions

% sales

€ millions

% sales

€ millions

% sales 22.9% 19.2% 20.3%

Western Europe (1)

1,832 1,392 1,936 5,160

22.9% 1,860 19.6% 1,411 19.7% 2,144 20.7% 5,415

1,683 1,430 2,562

20.9% 19.8% 22.0% 21.1%

North America New Markets (1)

COSMETICS ZONES TOTAL (2)

20.8% 5,675.0

Non-allocated (3)

-654

-2.6%

-739

-2.8% 18.0%

-753

-2.8%

TOTAL GROUP AFTER NON-ALLOCATED 18.3% As of 1 July 2016, the Asian Travel Retail business of the Consumer Products Division, previously recorded under the Western Europe Zone, was transferred to the Asia, (1) Pacific Zone. All figures for earlier periods have been restated to allow for this change. Before non-allocated. (2) Non-allocated items consist of the expenses of Functional Divisions and fundamental research, stock option and free grant of shares costs, which are not allocated to the (3) Cosmetics Divisions. This item also includes non-core activities, such as insurance, reinsurance and banking. 4,506 18.1% 4,676 4,922

Profitability in Western Europe came out at 20.9%, 200 basis points lower than last year. In North America, profitability came out at 19.8%, an increase of 60 basis points compared with 2017.

And in the New Markets, profitability increased by 170 basis points compared to the previous year, and amounted to 22.0% of sales.

Sales by business segment CONSOLIDATED SALES

2017/2018 progression

2018 8,557 7,383 4,358 2,950 2,495 1,194

2016 7,089 6,576 4,779 3,021 2,367 1,085

2017 7,624 7,266 4,559 3,076 2,393 1,107

Like-for-like

Like-for-like

€ millions Skincare Make-up Haircare

+ 15.9 % + 12.2 %

+ 5.3 % + 0.5 % - 0.6 % + 7.8 % + 4.3 %

+ 1.6 % - 4.4 % - 4.1 % + 4.3 % + 7.9 %

Hair colourants

Perfumes Others (1)

TOTAL COSMETICS SALES

24,916

26,024

26,937

+ 7.1 % + 3.5 %

“Other” includes hygiene products, sales made by American distributors with non-Group brands. (1)

Simplified consolidated income statements

31.12.2018

31.12.2016 31.12.2017

% 2018 sales

€ million

Sales

25,837.1 18,495.4

26,023.7 18,664.5

26,937.4 19,605.8

100.0% 72.8%

Gross profit

Research and development Advertising and promotion

-849.8

-877.1

-914.4

3.4%

-7,498.7 -5,607.0 4,539.9 3,996.1

-7,650.6 -5,460.5 4,676.3 4,400.0

-8,144.7 -5,624.7 4,922.0 4,827.3

30.2% 20.9% 18.3%

Selling, general and administrative expenses

Operating profit Operational profit

Finance costs excluding dividends received

-19.3 346.5

-22.9 350.0 -901.3

-1.9

Sanofi dividends

358.3

Income tax

-1,214.6

-1,284.3

Non-controlling interests

-2.9

-4.1

-4.1

Impact of deconsolidation of The Body Shop* Net profit attributable to owners of the company Non-recurring items (expense -/income +)

-240.1

3,105.8

3,581.4

3,895.4

14.5%

-541.5

-167.2

-92.2

Net profit excluding non-recurring items after non-controlling interests** Diluted earnings per share attributable to owners of the company (euros) Diluted earnings per share attributable to owners of the company excluding non-recurring items (euros)

3,647.2

3,748.7

3,987.4

14.8%

5.50

6.36

6.92

6.46 7.08 The finalisation of the disposal of The Body Shop on 7 September 2017 lead to the application, in 2017, of IFRS 5 for discontinued operations. * Net profit excluding non-recurring items excludes asset depreciations, restructuring costs, tax effects and minority interests of continuing activities. ** 6.65

REGISTRATION DOCUMENT / L'ORÉAL 2018

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