LOREAL_Registration_Document_2017

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

Sales

NOTE 2

31.12.2017

31.12.2016

31.12.2015

€ millions

Sales of goods (1)

1,368.2 2,053.0

873.4

905.7

1,929.3

1,781.5

Services (2)

Other revenues

192.3

250.4

280.4

TOTAL

3,613.5

3,053.1

2,967.6

The growth in sales of goods stems from the merger with LaScad and from the management lease of the business assets of the Gemey Maybelline Garnier. (1) Including invoicing of technological assistance. (2)

The Company generated €1,987.4 million of its sales in France in 2017, compared with €1,467.6 million in 2016 and €1,411.8 million in 2015.

Other revenue

NOTE 3

This account mainly includes trademark royalties as well as foreign exchange gains on operations, booked under Other revenue since 1 January 2017 pursuant to ANC Regulation No. 2015-05.

Average headcount

NOTE 4

Average headcount can be broken down as follows:

2017 (1)

2016 3,902 1,968

2015 3,671 1,958

Executives Supervisors

4,230 1,994

Administrative staff

235 211 390

249 201 333

234 219 303

Manual workers

Sales representatives

TOTAL

7,060

6,653

6,385

Apprentices

201

196

211

Including an additional 411 employees from the merger with LaScad and the management lease contract granted by Gemey Maybelline Garnier. (1)

Pursuant to ANC Regulation No. 2015-06, the method used to calculate average headcount for 2016 was changed: in particular, the calculation no longer includes personnel made available.

Depreciation, amortisation and charges to provisions

NOTE 5

Depreciation, amortisation and charges to provisions can be broken down as follows:

31.12.2017

31.12.2016

31.12.2015

€ millions

Depreciation and amortisation Impairment of non-current assets (1)

-103.5

-103.2

-93.8

-6.7 -4.5

-43.0

-

Impairment of current assets

-2.7

-6.9

Provisions for liabilities and charges

-54.9

-56.7

-46.6

TOTAL

-169.6

-205.6

-147.3

In 2016, this item relates to the write-down of the business goodwill of Clarisonic. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2017

294