LOREAL_Registration_Document_2017

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

Net financial income

NOTE 6

Net financial income amounts includes the following items:

31.12.2017

31.12.2016

31.12.2015

€ millions

Dividends received

2,691.2

3,139.1

2,796.0

Revenues on other receivables and marketable securities Interest expense on borrowings and financial debt

1.4

0.4

0.4

-4.5

-2.2

-1.7

Other (1)

-50.9

-127.8

-122.8

TOTAL 2,671.9 Including mainly the net carrying amount of free shares vested under the 2011, 2012 and 2013 plans which matured in 2015, 2016 and 2017, respectively. This should be (1) looked at in conjunction with the reversal of the impairment loss on treasury shares. 2,637.2 3,009.5

Additions to provisions net of reversals and expense transfers chiefly concern:

31.12.2017

31.12.2016

31.12.2015

€ millions

Impairment of financial investments (1) Impairment of other financial assets

5.6 0.2

-245.0

0.3

-

39.8 79.6 -7.2

Impairment of Treasury stock

79.0 37.5

100.5 51.7 -3.3 -96.1

Provisions for liabilities and charges relating to financial items

Other movements

-

5.9

TOTAL

122.3

118.4

5

In 2016, this item concerns the write-down of shares in Magic for €218.8 million. (1)

Exceptional items

NOTE 7

Exceptional items represented -€62.2 million in 2017, compared to €5.8 million in 2016 and €42.0 million in 2015.

Income tax

NOTE 8

The income tax breaks down as follows:

31.12.2017

31.12.2016

31.12.2015

€ millions

Tax on profit before tax and exceptional items Tax on exceptional items and employee Profit Sharing

156.6

105.5

18.3

9.4

7.6

5.0

INCOME TAX

166.0

113.1

23.3

In 2017, the income tax gain recognised by L’Oréal includes income of €184.3 million (excluding default interest) from an additional 3% tax on dividends following the claims filed for the 2013 to 2017 financial years, net of €55.7 million in charges paid in June 2017, and savings in the amount of €58.7 million resulting from tax consolidation. It also includes €51.2 million stemming from the impact of an exceptional and additional 30% in tax on companies with sales in excess of €3 billion.

In 2016, the income tax gain recognised by L’Oréal includes the additional 3% tax on dividends (€52.3 million) and saving of €173.1 million resulting from tax consolidation. It also includes income of €57 million relating to claims filed in order to recover the share of costs and expenses levied on certain dividends paid to tax-consolidated companies by companies based in the European Union.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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