LOREAL_Registration_Document_2017

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

Net profit from continuing operations attributable to owners of the company 10.4. excluding non-recurring items – Earnings per share

ACCOUNTING PRINCIPLES Earnings per share are calculated in accordance with the rules set out in IAS 33. Basic earnings per share are obtained on the basis of the weighted average number of shares outstanding during the year, less the average number of treasury shares held deducted from equity.

Where applicable, diluted earnings per share take into account dilutive stock options and free shares in accordance with the Treasury stock method, under which sums collected on exercise or purchase are assumed to be allocated firstly to share buybacks at market price.

Reconciliation with net profit from continuing operations 10.4.1. Net profit from continuing operations attributable to owners of the company excluding non-recurring items reconciles as follows with net profit of continuing operations attributable to owners of the company:

2017

2016

2015

€ millions

Net profit from continuing operations attributable to owners of the company Capital gains and losses on property, plant and equipment and intangible assets

3,821.7

3,080.5

3,248.1

-3.9

-16.2 447.2 99.4 11.0 -36.1

0.2

Impairment of property, plant and equipment and intangible assets

-

-

Restructuring costs

262.5 17.8 -83.4 -16.1 -90.3 -13.4 -146.0 -0.1

83.3

Other (1)

105.0 -28.7

Tax effect on non-recurring items

Non-controlling interests on non-recurring items Tax effect on acquisitions and internal restructuring

-0.1

-0.2

5.6

-13.4

Impact of the decrease in the US tax rate

-

- -

Impact of the decrease in the French tax rate on deferred tax liabilities relating to the Sanofi shareholding

-24.0 52.3

3% tax levied on dividends paid and 2017 exceptional and additional contributions (2)

45.3 -3.4

Costs net of tax of the discontinuation of the Innéov operation by L'Oréal and disposal of a part of its assets NET PROFIT FROM CONTINUING OPERATIONS ATTRIBUTABLE TO OWNERS OF THE COMPANY EXCLUDING NON-RECURRING ITEMS

-

-

3,748.7

3,619.6

3,436.2

Including €107.2 million relative to the deconsolidation of our subsidiaries in Venezuela at 31 December 2015 (note 2.4.). (1) Following the decision taken by the Constitutional Court in October 2017 to invalidate the additional 3% contribution, the amounts paid for the financial years 2013 to 2017 (2) were reimbursed with default interest. In return, exceptional contributions and an additional contribution to the exceptional contribution were introduced by the amended finance law for 2017 and are included in this line item.

Earnings per share attributable to owners of the company 10.4.2. The tables below set out earnings per share attributable to owners of the company (excluding the dilutive impact of shares carrying preferential dividend rights; note 10.4.5.):

Net profit attributable to owners of the company (€ millions)

Earnings per share attributable to owners of the company (€)

Number of shares 559,233,644

2017

Earnings per share

3,581.4

6.40

Stock options Free shares

- -

1,792,615 2,502,243

- -

DILUTED EARNINGS PER SHARE

3,581.4

563,528,502

6.36

REGISTRATION DOCUMENT / L'ORÉAL 2017

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