LOREAL_Registration_Document_2017

5 2017 Parent Company Financial Statements * NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL 5.5. STATEMENTS

Accounting principles

Stock purchase or subscription options – Free NOTE 17 shares

NOTE 1

291

300

Sales

NOTE 2

294

Provisions for liabilities and charges NOTE 18

301

Other revenue

NOTE 3

294

Borrowings and debt NOTE 19

301

Average headcount

NOTE 4

294

Maturity of payables NOTE 20

302

Depreciation, amortisation and charges to

NOTE 5

provisions

Unrealised exchange gains and losses NOTE 21

294

302

Net financial income

Derivative financial instruments NOTE 22

NOTE 6

295

303

Exceptional items

Transactions and balances with related entities NOTE 23 and parties

NOTE 7

295

304

Income tax

NOTE 8

295

Off-balance sheet commitments NOTE 24

304

Increases or reductions in future tax liabilities

NOTE 9

296

Changes in working capital NOTE 25

305

Research costs NOTE 10

296

Changes in other financial assets NOTE 26 305 Cash and cash equivalents at the end of the year NOTE 27 305 Disclosures NOTE 28 305 Subsequent events NOTE 29 305 Table of subsidiaries and holdings NOTE 30 306

Intangible assets NOTE 11

297

Tangible assets NOTE 12

297

Non-current assets held under finance leases NOTE 13

298

Financial assets NOTE 14

298

Marketable securities NOTE 15

299

Maturity of receivables NOTE 16

299

2017 for a period of six months, renewable by tacit consent on a six-month basis. On 9 June 2017, L’Oréal announced, following an extensive review of the strategic options for The Body Shop to ensure its best future development, having received a firm offer from Natura Cosmeticos S.A. to acquire The Body Shop and entered into exclusive discussions with Natura. The sale contract to Natura Cosmeticos S.A. was signed on 27 June 2017. After having obtained the necessary authorisations from the competent authorities, L'Oréal and Natura Cosmeticos S.A. finalised the definitive agreement to sell The Body Shop to Natura on 7 September 2017, in accordance with project communicated on 9 June 2017.

Highlights of the financial year Under the conditions of the merger project dated 9 May 2017, LaScad contributed all of its assets to L'Oréal as part of said merger, which in turn appropriated all of its liabilities. The merger went into force at midnight on 30 June 2017 with retroactive effect to 1 January 2017. The company Gemey Maybelline Garnier granted L'Oréal a lease management rental contract enabling it to use the former's business assets to “design and market L’Oréal Group products on French mass-market retail channels, notably comprising a distribution centre and stores”. This lease management rental agreement went into effect as of 1 July

REGISTRATION DOCUMENT / L'ORÉAL 2017

290