LOREAL_Registration_Document_2017

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

Contingent liabilities 24.3. In the ordinary course of its operations, L’Oréal is involved in legal actions and is subject to tax assessments, customs controls and administrative audits. The Company sets aside a provision when a risk is found to exist and the related cost can be reliably estimated. No exceptional event or dispute is highly likely to have a material impact on the earnings, financial position, assets or operations of the Company.

Changes in working capital NOTE 25

Changes in working capital can be broken down as follows:

31.12.2017

31.12.2016

31.12.2015

€ millions

Inventories

-15.7 214.0

11.2

-3.0

Accounts Receivable (1)

146.1

-349.1

Accounts Payable

94.1

-8.7

37.3

TOTAL -314.8 In 2015, this item mainly includes changes in corporate income tax receivables amounting to €178.8 million and the fine handed down by the French competition authority (1) for €189.5 million. 292.4 148.6

5

Changes in other financial assets NOTE 26

This line primarily includes cash flows relating to financial instruments, classified in Marketable Securities , and cash flows arising on collateral posted with the Group's bank, classified as Long-term Investments.

Cash and cash equivalents at the end of the year NOTE 27

Cash and cash equivalents can be broken down as follows:

31.12.2017

31.12.2016

31.12.2015

€ millions

Cash

806.5

180.9

192.5

Accrued interest receivable

- -

-

-

Bank overdrafts and financing with the Group’s cash pool (see note 19)

-154.4

- 750.3

Accrued interest payable

-0.4

-0.1 26.4

0.3

CASH AND CASH EQUIVALENTS

806.1

-557.5

Disclosures NOTE 28

Statutory audit fees are presented in the note 14 to the Consolidated financial statements.

Subsequent events NOTE 29

No event occurred between the balance sheet date and the date when the Board of Directors authorised the financial statements for issue.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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