LOREAL_Registration_Document_2017

4 2017 Consolidated Financial Statements* NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Borrowings and debt 8.1. The Group takes out bank loans to cover its medium-term financing needs and issues short-term marketable instruments in France and commercial paper in the US to cover its financing needs in the short term. None of the Group’s borrowings or debt contains an early repayment clause linked to financial ratios (covenants).

Debt by type 8.1.1.

31.12.2017

31.12.2016

31.12.2015

Non-current

Current

Non-current

Current 979.8

Non-current

Current 505.4

€ millions

Short-term marketable instruments

-

768.1

-

-

MLT bank loans

0.3 4.6

0.3 2.9

1.3

2.7 4.3

1.6

0.4 5.8

Debt on capital lease contracts

20.3

24.3

Overdrafts

-

261.0 128.7

-

36.7

-

57.3

Other borrowings and debt

8.6

9.3

210.2

14.9 40.8

172.1 741.0

TOTAL

13.4

1,161.0

30.9 1,233.7

Change in debt 8.1.2.

Non-cash changes

Changes in the scope of consolidation

Translation adjustments/ differences

Changes in fair value

Cash-flows

31.12.2017

31.12.2016

€ millions

Short-term marketable instruments

979.8

-112.5

- -

-99.2

- - - -

768.1

MLT bank loans

4.0

-3.2 -4.4

-0.2 -1.4 -6.1

0.6 7.5

Debt on capital lease contracts

24.6 36.7

-11.3

Overdrafts

231.4 -64.1

-1.0

261.0 137.3

Other borrowings and debt

219.5

-

-17.4

-0.7

TOTAL

1,264.6

47.2

-12.3

-124.4

-0.7 1,174.4

Debt by maturity date 8.1.3.

31.12.2017

31.12.2016 31.12.2015

€ millions

Under 1 year (1)

1,161.0

1,233.7

741.0

1 to 5 years Over 5 years

4.2 9.2

12.1 18.8

24.7 16.1

TOTAL 781.8 At 31 December 2017, the Group had confirmed undrawn credit lines for € 3,675.2 million compared with €3,726.6 million at 31 December 2016 and €3,813.3 million at (1) 31 December 2015. These lines were not subject to any covenants. 1,174.4 1,264.6

Estimated interest expense at 31 December 2017, as at 31 December 2016 and 2015, is not material given the outstanding debt at these dates, comprising short-term marketable instruments drawn at very short terms and at negative interest rates in France, very short-term miscellaneous borrowings contracted locally by subsidiaries, and finance lease liabilities.

These estimates are computed on the basis of the effective interest rate at the end of the financial year, after allowing for hedging instruments and assuming that no debt is rolled over at maturity. Amounts payable under capital leases are not taken into account as they are not material.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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