LOREAL_Registration_Document_2017

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

Owing to the Group’s policy of hedging a large part of annual exchange rates at 31 December is marginal. The impact of requirements for the following year before the end of the changes in foreign exchange rates on the foreign exchange current year, the sensitivity of profit or loss to changes in foreign cash flow hedges reserve is described in note 10.3.

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

31.12.2017

31.12.2017

31.12.2016 31.12.2015

31.12.2016 31.12.2015

€ millions

Currency futures Purchase/Sale of EUR against foreign currencies

1,784.8

2,148.0

1,648.5

61.5

-92.7 24.1 -21.8

15.5

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

229.0 188.3 185.1 173.2 168.3 127.7

352.4 181.2 143.6 180.1 156.9 243.1

293.1 204.8 -14.8 104.0 177.4 203.2

5.6

-1.8

13.6 1.4 1.9 8.9 3.0 4.1 2.9 0.3 -1.7 19.1 -2.0 -3.6 -3.0 -3.9 -4.8 -4.8 4.4 -10.6

-17.3

-0.3 -2.6

-9.4

5.9 5.2

4.0

-44.3

27.0 -0.5 -1.3

97.1 76.7 57.7 54.4

82.9 84.1 78.4 52.3

89.7 82.8 55.8 44.5

-2.7

5.7

-14.1

7.4

0.1

-0.3 -8.5

EUR/Asia Pacific currencies

218.6

297.5

155.8

-29.5

EUR/Eastern European currencies

68.9

85.7

69.5

0.1

0.0 9.0

EUR/Other currencies

139.8 434.8 149.7

209.9 441.2 177.2

182.9 236.1 112.2

-11.4 -13.3 -13.7

Purchase of USD against foreign currencies

24.6 16.5

USD/Latin American currencies

USD/CAD

82.9

84.1

80.1 43.8

2.7

6.0 2.1

USD/Other currencies

202.2

179.9

-2.2 9.2

Sale of USD against foreign currencies

14.2 14.1

23.1 23.1

128.8 128.8

15.6 15.6

USD/Asia Pacific currencies

9.2

USD/Other currencies Other currency pairs

0.1

-

-

-

-

-

705.0

658.0

324.1

-27.2 18.9

14.5

0.5

CURRENCY FUTURES TOTAL

2,938.8

3,270.4

2,337.5

-82.2

56.1

Currency options EUR/GBP

101.6

49.7 39.6 39.0 17.5 36.2

-

3.3 4.0 5.0 1.7 2.8 1.9 2.4 0.2

3.9 0.2 0.2 0.3 0.1

-

EUR/RUB EUR/USD EUR/CNY EUR/HKD EUR/TRY

76.7 75.5 37.8 34.9 10.5 23.9

35.6

10.4

186.1

1.3 0.9 0.5

44.0 68.8

-

5.0

- -

-0.2 4.9 4.1

EUR/Other currencies Other currencies pairs

7.5 9.1

34.7 18.4

8.1

0.0 4.8 4.8

CURRENCY OPTIONS TOTAL Of which total options purchased

369.0 369.0

198.6 198.6

392.6 392.6

21.3 21.3 40.2

21.9 21.9 78.0

TOTAL

3,307.8

3,469.0

2,730.1

-77.4

The market values by type of hedging are as follows:

2017

2016 -20.0 -57.4 -77.4

2015

€ millions

Fair value hedges (1) Cash flow hedges

-0.6 40.8 40.2

0.2

77.8 78.0

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 2017

262