LOREAL_Registration_Document_2017

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

EFFECTIVE INTEREST RATE AND AVERAGE INTEREST RATE ON BORROWINGS AND DEBT The fall in euro interest rates is now reflected by drawdowns of short-term marketable instruments with negative interest rates. The average interest rate on short-term marketable instruments was -0.42% in 2017, compared with -0.33% in 2016 and 0.04% in 2015.

Maturity of payables NOTE 20

Less than 1 year

More than 1 year

Total

€ millions

Trade accounts payable

684.5 534.8 352.3

-

684.5 571.4 352.3

Other current liabilities, of which Tax and employee-related payables Payables related to non-current assets (1)

36.6

-

34.1

36.1

70.1

Other payables

148.4

0.5

148.9

Non-current payables relate to earn-out clauses on acquisitions. (1)

Accrual accounts included in trade accounts payable and other current liabilities are as follows:

31.12.2017

31.12.2016

31.12.2015

€ millions

Trade accounts payable

388.8

279.2

266.5

Payables related to non-current assets Tax and employee-related payables, of which

61.0

65.2

49.3

291.5

251.6

234.9

Provision for employee Profit Sharing

22.6 89.3 46.5

20.3 80.1 28.4

18.3 74.2 26.6

Provision for incentives

Other payables

TOTAL

787.8

624.4

577.3

Unrealised exchange gains and losses NOTE 21

The revaluation of foreign currency receivables and payables at the exchange rates prevailing at 31 December, taking account of hedging instruments, led to the recognition of the following unrealised exchange gains and losses:

Unrealised exchange losses

Unrealised exchange gains

31.12.2017

31.12.2017

31.12.2016 31.12.2015

31.12.2016 31.12.2015

€ millions

Financial receivables

8.2 0.2

9.2 1.8

8.1 4.0

0.1 0.1

0.1 3.1

-

Trade accounts receivable Borrowings and debt Trade accounts payable Derivative financial instruments

0.5

-

-

-

-

-

-

0.6

1.7 5.7

1.4 6.5

0.4

0.5 6.5

2.1

37.4 46.4

21.5 22.1

12.5 15.1

TOTAL

18.4

20.0

10.2

The overall foreign exchange position, calculated on a currency-per-currency basis, at 31 December 2017 is an unrealised loss of €31.4 million. This loss is recognised. At 31 December 2016, the overall foreign exchange position was an unrealised loss of €8.2 million compared with an unrealised loss of €4.9 million at 31 December 2015.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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