LOREAL_Registration_Document_2017

2017 Consolidated Financial Statements* NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Debt by currency 8.1.4.

31.12.2017

31.12.2016 31.12.2015

€ millions

Euro (EUR)

378.2 630.2

21.8

127.2 415.5

US Dollar (USD)

989.1

Colombian Peso (COP) Brazilian Real (BRL) (1)

29.4 27.6 19.2 18.7 13.6

14.6 93.9 46.8 10.7 11.9 21.7

2.2

41.6 55.4

Chinese Yuan Renminbi (CNY) Chilean Peso (CLP) Egyptian Pound (EGP) Indonesian Rupiah (IDR) South African Rand (ZAR) Kenyan Shilling (KES) Argentine Peso (ARS)

-

24.4 21.8

9.2 7.5 6.6 2.5 2.2

7.8 7.6

-

6.5

-

-

British Pound (GBP) Turkish Lira (TRY)

15.0

18.7

-

5.2

3.0

Other TOTAL

29.5

18.5

65.5

1,174.4

1,264.6

781.8

Including €5.1 million in amounts due to non-controlling interests in 2015 in respect of the Emporio Body Store acquisition. (1)

4

Breakdown of fixed and floating rate debt (after allowing for interest rate hedging 8.1.5. instruments)

31.12.2017

31.12.2016 31.12.2015

€ millions

Floating rate

1,132.3

1,202.6

748.9

Fixed rate

42.1

62.1

32.9

TOTAL

1,174.4

1,264.6

781.8

Effective interest rates 8.1.6. Effective interest rates on Group debt after allowing for hedging instruments are 0.94% in 2017 compared with 0.68% in 2016 and 0.22% in 2015 for short-term marketable instruments. Bank loans amounted to €0.6 million at 31 December 2017 compared with €4.0 million at 31 December 2016 and €2.0 million at 31 December 2015.

Average debt interest rates 8.1.7. Average debt interest rates after allowing for hedging instruments break down as follows:

31.12.2017

31.12.2016 31.12.2015

Euro (EUR) (1) US Dollar (USD)

-0.42% -0.33%

0.04% 0.15%

1.00%

0.48%

The fall in euro interest rates is now reflected by drawdowns of short-term marketable instruments with negative interest rates. (1)

Fair value of borrowings and debt 8.1.8. 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 €1,175.0 million at 31 December 2017 compared with €1,265.3 million at 31 December 2016 and €782.5 million at 31 December 2015.

Debt covered by collateral 8.1.9. No debt was covered by material amounts of collateral at 31 December 2017, 2016 and 2015. Confirmed credit lines 8.1.10. At 31 December 2017, L’Oréal and its subsidiaries had €3,675.2 million of confirmed undrawn credit lines, compared with €3,726.6 million at 31 December 2016 and €3,813.3 million 31 December 2015. At 31 December 2017, these credit lines had a maturity of between one and four years.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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