LOREAL_Registration_Document_2017

2017 Consolidated Financial Statements* NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

€ millions 31 December 2015

Level 1

Level 2

Level 3

Total fair value

Assets at fair value Foreign exchange derivatives

283.0

283.0

Sanofi shares

9,292.7

9,292.7

Marketable securities

335.3

335.3

TOTAL ASSETS AT FAIR VALUE Liabilities at fair value Foreign exchange derivatives TOTAL LIABILITIES AT FAIR VALUE

9,628.0

283.0

-

9,911.0

205.4 205.4

205.4 205.4

-

-

Offsetting financial assets and 9.9. financial liabilities Financial assets and liabilities resulting from foreign exchange and/or interest rate hedging transactions entered into with the Group’s counterparty banks are not offset in the balance sheet since they are FBF (French Banking Federation) or ISDA (International Swaps and Derivatives Association) agreements

that only provide for offsetting in the event of default by one of the parties to the agreement. Accordingly, they do not meet the offsetting criteria set out in IAS 32. Had the agreements been offset at the level of each counterparty bank, assets and liabilities would have decreased by €80.1 million, €125.4 million and €114.2 million respectively at 31 December 2017, 2016 and 2015.

4

Equity – Earnings per share NOTE 10

Share capital and additional paid 10.1. in capital Share capital consisted of 560,519,088 shares with a par value of €0.20 at 31 December 2017, following the exercise of subscription options for 1,509,576 shares and 375 free shares and the cancellation of 2,846,604 shares.

Share capital consisted of 561,855,741 shares with a par value of €0.20 at 31 December 2016, following the exercise of subscription options for 6,255 shares and 1,231,570 free shares and the cancellation of 3,202,500 shares. Share capital consisted of 562,983,348 shares with a par value of €0.20 at 31 December 2015 following the exercise of subscription options for 4,657,509 shares and 450 free shares and the cancellation of 2,905,000 shares.

Treasury stock 10.2.

ACCOUNTING PRINCIPLES Treasury stock is recorded at acquisition cost and deducted from equity. Capital gains/losses on disposal of Treasury stock net of tax are charged directly to equity and do not contribute to profit for the financial year.

2017 a) The change in the number of shares in 2017 is as follows:

Common shares outstanding 560,098,396 2,496,171 -2,846,604 559,747,963

Share capital 561,855,741

Treasury stock -1,757,345

In shares

AT 01.01.2017 Shares cancelled

-2,846,604 1,509,951

2,846,604

Options and free shares exercised

986,220

Treasury stock purchased

-2,846,604 -771,125

AT 31.12.2017

560,519,088

REGISTRATION DOCUMENT / L'ORÉAL 2017

265