Clichy, 7 February 2019 at 6.30 p.m.

2018 ANNUAL RESULTS

BEST SALES GROWTH IN MORE THAN 10 YEARS: +7.1%1

NEW RECORD FOR OPERATING MARGIN: 18.3%

 Sales: 26.9 billion euros

o +7.1% like-for-like1
o +8.0% at constant exchange rates
o +3.5% based on reported figures
 Operating profit: 4.92 billion euros, representing 18.3% of sales
 Earnings per share2: 7.08 euros, an increase of +6.5%
 Net profit after non-controlling interests: 3.89 billion euros, an increase of +8.8%
 Dividend3: 3.85 euros, an increase of +8.5%

The Board of Directors of L’Oréal met on 7 February 2019, under the chairmanship of Jean-Paul Agon and in
the presence of the Statutory Auditors. The Board closed the consolidated financial statements and the financial
statements for 2018.

Commenting on the Annual Results, Jean-Paul Agon, Chairman and CEO of L’Oréal, said:

“In a beauty market that accelerated significantly in 2018, L’Oréal marked its best year of growth since 2007,
at +7.1%1, following a strong fourth-quarter increase of +7.7%1.

All Divisions are growing, especially L’Oréal Luxe and Active Cosmetics, which both recorded double-digit
growth. The big brands are the star performers, particularly in the L’Oréal Luxe Division, where Lancôme sales
crossed the 3 billion euro mark. The Active Cosmetics Division achieved its highest growth for more than 10
years in a very dynamic skincare market. In the Consumer Products Division, 2018 was a good year for L’Oréal
Paris and Maybelline New York. The Professional Products Division meanwhile recorded a modest increase in
sales, thanks to a significant acceleration in the final quarter.

The performance by geographic Zone remained differentiated. In Western Europe, progress was held back by
difficulties in some markets, while growth in North America improved compared with the previous year. The
New Markets achieved their best performance since 2007, and the Asia Pacific Zone, driven by China, has now
overtaken North America with sales exceeding 7 billion euros.

2018 was another very good year for two of our most powerful growth drivers. Firstly, e-commerce 4 which
advanced by +40.6%, and now accounts for 11% of Group sales. Secondly, Travel Retail, which broke the 2
billion euro barrier with an increase of +27.1%.

…/…

1
Like-for-like sales growth: based on a comparable scope of consolidation and identical exchange rates. See page 3 for more details.
2
Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests, from continuing operations.
3
Proposed at the Annual General Meeting of 18 April 2019.
4
Sales achieved on our brands’ own websites + estimated sales achieved by our brands corresponding to sales through our retailers’
websites (non-audited data).

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…/…

The gross margin increased significantly and, after strong investments in research, innovation, and business
drivers, the operating margin set a new record at 18.3% of sales.

More than ever, it’s the strength of L’Oréal’s business model, robust and well-balanced, covering all circuits,
all categories, all price points and addressing all consumers, that enables the Group to seize opportunities
wherever they are. All over the world, our teams are alert and listening to consumers’ needs and desires. They
adapt and allocate resources with great agility, always in the pursuit of excellence. This is how L’Oréal delivers
profitable and sustainable growth, and strengthens its position as the cosmetics market leader year after year.

And finally, in 2018, L’Oréal was recognised once again for its leadership in corporate environmental and social
responsibility, notably by the CDP which identified L’Oréal, for the third consecutive year, as a world leader in
sustainable development, with three ‘A’ scores for the management of climate change, water security and
forests. L’Oréal has also been acknowledged for its commitment to gender equality, and was named number 1
in Europe for gender parity by Equileap. In terms of ethics, L’Oréal remains exemplary, and is ranked number 1
worldwide by the ethical reputation index Covalence EthicalQuote.

In an economic context that remains volatile and uncertain, we are confident, thanks to our innovations,
powerful brands, digital excellence and in particular our outstanding teams all over the world, that we can
pursue our corporate social responsibility commitments, outperform the beauty market in 2019 and achieve
another year of growth in both sales and profits.”

The Board of Directors will propose to the Annual General Meeting of 18 April 2019 the renewal of the tenure
as director of Ms Sophie Bellon for a term of four years.
The Board will propose to the Annual General Meeting the candidacy of Ms Fabienne Dulac, Deputy CEO of the
Orange Group, Chief Executive Director of Orange France, as a new independent director.
If the Annual General Meeting approves the proposed renewal of tenure and candidacy, the number of
independent directors will be 8 out of 14, representing an independent director ratio of 57%. The number of
women on the Board of Directors will be 7 out of 14 directors appointed by the Annual General Meeting, which
corresponds to a women’s representation rate of 50%5.

5
The two directors representing employees are not taken into account in calculating these percentages, in accordance with the AFEP-
MEDEF Code.
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2018 Sales

Like-for-like, i.e. based on a comparable scope of consolidation and constant exchange rates, the sales
growth of the L’Oréal group was +7.1%.
The net impact of changes in the scope of consolidation amounted to +0.9%.
Growth at constant exchange rates was +8.0%.
At the end of 2018, currency fluctuations had a negative impact of -4.5%.
Based on reported figures, the Group’s sales, at 31 December 2018, amounted to 26.9 billion euros, an
increase of +3.5%.

Sales by Division and Geographic Zone

4th quarter 2018 At 31 December 2018

Growth Growth
€m Like-for-like Reported €m Like-for-like Reported
By Division
Professional Products 857.2 +3.5% +3.1% 3,262.5 +2.0% -2.6%
Consumer Products 3,041.7 +2.8% +4.5% 12,032.2 +2.5% -0.7%
L’Oréal Luxe 2,651.5 +14.7% +15.3% 9,367.2 +14.4% +10.6%
Active Cosmetics 523.0 +11.9% +10.7% 2,275.5 +11.9% +9.2%

Group total 7,073.4 +7.7% +8.6% 26,937.4 +7.1% +3.5%

By Geographic Zone
Western Europe 2,075.1 +0.9% +1.3% 8,065.1 -0.3% -0.7%
North America 1,849.2 +2.2% +5.0% 7,234.3 +2.7% -1.6%
New Markets, of which: 3,149.1 +16.5% +16.5% 11,638.1 +16.1% +10.3%

- Asia Pacific 2,063.3 +26.2% +29.3% 7,405.6 +24.1% +20.4%

- Latin America 6 463.4 -2.8% -5.1% 1,784.8 -0.4% -8.6%
- Eastern Europe 454.2 +9.1% +1.0% 1,754.2 +9.1% +0.2%
- Africa, Middle East 7
168.2 -2.7% -1.1% 693.5 +4.9% +0.2%

Group total 7,073.4 +7.7% +8.6% 26,937.4 +7.1% +3.5%

6
The Group has applied the IAS 29 accounting rule (Financial Reporting in Hyperinflationary Economies) to Argentina from 1 July 2018
onwards. The negative impact of this adjustment amounts to 200 basis points on like-for-like growth in Latin America and to 10 basis
points on the growth of the whole L’Oréal group in the full-year 2018.
7
The application of the IFRS 15 accounting rule from 1 January 2018 has resulted in the restatement of sales with distributors when they
operate as agents and not on their own behalf. The impact of this restatement amounted to 7.6 million euros on the sales of the Africa,
Middle East Zone in the fourth quarter of 2018. The effect of this accounting method on the profit and loss account and the balance sheet
is not material.
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 PROFESSIONAL PRODUCTS
The Professional Products Division ended the year at +2.0% like-for-like and -2.6% reported.
The year was marked by renewed dynamism in this Division, which accelerated in the fourth quarter. All
geographic Zones are growing, except for Western Europe. The return to growth in the United States and
Brazil has been confirmed. Momentum was maintained in the Asia Pacific Zone, driven by India and China, and
in Eastern Europe.
Haircare is benefiting from the strong growth of Kérastase, combining the success of Resistance Extentioniste
and Fusio-Dose customised in-salon haircare with the roll-out of a selective multi-channel strategy. Dynamism
in hair colour is being driven by Shades EQ by Redken, which recorded another year of growth, the success of
the SoColor Cult launch at Matrix and the good performance of Dia at L’Oréal Professionnel.

CONSUMER PRODUCTS
The Consumer Products Division posted fourth quarter growth of +2.8% like-for-like, and ended
the year at +2.5% like-for-like and -0.7% reported.
The Division’s three major brands are growing. L’Oréal Paris and Maybelline New York are maintaining their
very good annual momentum, and Garnier accelerated in the fourth quarter.
Skincare is growing strongly, with double-digit growth worldwide in facial skincare, thanks to the excellent
performance of Revitalift Filler by L’Oréal Paris, Garnier tissue masks and Men Expert skincare. Makeup growth
continues, driven especially by Maybelline New York and the global success of Superstay Matte Ink and Fit
Me!. In haircare there were two very successful launches: Elseve Dream Lengths and Fructis Hair Food.
The Division is facing ongoing difficulties in Western Europe, where the market remains sluggish, and in Brazil.
It is winning market share in the United States and Eastern Europe, and continuing to accelerate sharply in
Asia, thanks in particular to China and India.
E-commerce4 continues to show strong growth.

L’ORÉAL LUXE
L’Oréal Luxe sales grew by +14.4% like-for-like and +10.6% reported, with a second half at
+15.1% like-for-like. The Division outperformed the market and made 2018 a historic year.
The Division’s four billionaire brands are posting double-digit growth. Lancôme is being driven by its skincare
performance, with franchises Génifique and Absolue, and the undisputed success of La Vie est Belle. Yves Saint
Laurent and Giorgio Armani had a very good year in fragrances, with Black Opium, Y, Sì Passione and Acqua
di Giò Absolu, and in foundations. Kiehl’s is benefiting from the acceleration in skincare, with an excellent
performance from Line-Reducing Concentrate. The successful development of IT Cosmetics and Atelier
Cologne is continuing.
L’Oréal Luxe is winning market share in Asia Pacific, particularly in China where growth is double-digit. The
Division performed well in dynamic markets in Travel Retail, Eastern Europe and Latin America. In Western
Europe and Africa, Middle East, it is outperforming more difficult markets.
Meanwhile, the Division continues to accelerate in e-commerce4.

ACTIVE COSMETICS
The Active Cosmetics Division maintained strong growth momentum in the fourth quarter, and
ended an outstanding year at +11.9% like-for-like and +9.2% reported.
The Division continues to win market share across all geographic Zones at a rapid pace, with growth remaining
strong in North America and in Asia.
All the major brands are contributing to the Division’s growth. La Roche-Posay ended the year with double-
digit growth, driven by its anti-wrinkle innovation Hyalu B5, and core franchises Anthelios and Effaclar, and is
performing well across all Zones. Growth at Vichy is again bolstered by the success of Minéral 89, the star
product of 2018. SkinCeuticals is posting very strong growth in all Zones, and strengthening its number 1
position in professional skincare in the United States. CeraVe is recording double-digit growth in North America,
and has now been rolled out in more than 30 countries.
E-commerce4 is accelerating sharply, and accounts for more than 13% of the Division’s sales.

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Multi-division summary by Geographic Zone

WESTERN EUROPE
The Zone recorded sales growth in the fourth quarter, and ended the year at -0.3% like-for-like, and -0.7%
reported. In 2018, Western Europe was affected by the sluggishness of some markets, such as France and the
United Kingdom, and by a slowdown in the makeup category.
L’Oréal Luxe is outperforming its market, thanks to the dynamism of Lancôme, Giorgio Armani and Kiehl’s, and
the same is true of the Active Cosmetics Division, thanks to the rapid growth of La Roche-Posay and the CeraVe
roll-out. The Consumer Products Division is strengthening its positions in makeup, reflecting the good results
of the Maybelline New York and Essie brands, and more recently in skincare, thanks to L’Oréal Paris anti-ageing
products and Garnier cleansing.

NORTH AMERICA
The Zone posted growth of +2.7% like-for-like and -1.6% reported.
The Consumer Products Division remains on track, and increased its market share in the makeup and hair
colour segments, thanks to strong performances by the L’Oréal Paris, Maybelline New York and Essie brands.
In luxury, skincare is a highly dynamic segment, with the Kiehl’s and IT Cosmetics brands outperforming the
market. L’Oréal Luxe is also growing faster than its market in the fragrance category. In the Professional
Products Division, growth is driven by the Redken and Matrix brands, and by the acquisition of Pulp Riot. The
upturn in the sales of the iconic Kérastase brand is also worth noting. The Active Cosmetics Division posted a
good performance close to 20% with its brands CeraVe, SkinCeuticals, La Roche-Posay and Vichy, which are
all delivering double-digit growth.

NEW MARKETS
Asia Pacific: Growth in this Zone came out at +24.1% like-for-like and +20.4% reported. All four Divisions
are winning market share. The dynamism of Chinese consumers, combined with the good performance of
premium brands and rapid growth in several other South-East Asian markets as well as in Travel Retail, were
the Zone’s main growth drivers. The four Divisions posted robust fourth-quarter figures, thanks to the success
of Singles’ Day (11/11) sales in China. The acquisition of Stylenanda in June strengthened the Group’s position
in the Zone.

Latin America: The Zone is at -0.4% like-for-like and -8.6% reported. The L’Oréal Luxe and Active Cosmetics
Divisions are posting strong growth, and winning market share. In Brazil, the Professional Products Division is
growing strongly, while the performance of the Consumer Products Division reflects ongoing challenges, but
improved in the second half. The adjustment on 1 July to allow for hyperinflation in Argentina had a negative
impact of -2.0% like-for-like on the Zone’s annual growth.

Eastern Europe: In this Zone growth amounted to +9.1% like-for-like and +0.2% reported. Growth was
driven by all four Divisions, but especially by Active Cosmetics. Across the individual countries, Turkey, Ukraine,
Romania and Czech Republic posted very dynamic growth. E-commerce4 is growing very quickly, by more than
50%.

Africa, Middle East: The Zone recorded growth of +4.9% like-for-like and +0.2% reported, despite the
unfavourable geopolitical context and sluggish markets, especially in the Middle East. Egypt and Morocco
posted good growth, and all Divisions increased their market share. There was positive development in South
Africa and Kenya, thanks in particular to the Consumer Products Division and the launch of the Mixa bodycare
range.

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Important events during the period 01/10/18 to 31/12/18
and post-closing event

 On 19 November 2018, the L’Oréal group announced two important changes within its Executive
Committee: Christophe Babule is appointed Executive Vice-President, Chief Financial Officer, and will
succeed Christian Mulliez as of 8 February 2019. Cyril Chapuy was appointed President L’Oréal Luxe,
as of 1 January 2019, reporting to Nicolas Hieronimus, Deputy CEO in charge of Divisions.

 On 5 December 2018, L’Oréal announced the launch of BOLD, Business Opportunities for L’Oréal
Development, a corporate venture capital fund that will take minority stakes in innovative startups
with high growth potential. The fund will invest in new business models in marketing, Research &
Innovation, digital, retail, communication, supply chain and packaging.

 On 20 December 2018, Covalence EthicalQuote ranked L’Oréal number 1 worldwide across all
industries in its reputation index. This ranking of the world’s largest listed companies reflects
stakeholder and media perceptions, and companies’ communication on environmental, social,
governance and human rights issues.

 On 22 January 2019, L’Oréal was recognised for the third year in a row as a global leader in corporate
sustainability by non-profit organisation CDP, with three ‘A’ scores for the management of climate
change, water security and forests.

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2018 Results
Audited financial statements, certification in progress.

Operating profitability at 18.3% of sales

Consolidated profit and loss accounts: from sales to operating profit.

2017 2018
€m % sales €m % sales
Sales 26,023.7 100.0% 26,937.4 100.0%
Cost of sales -7,359.2 28.3% -7,331.6 27.2%
Gross profit 18,664.5 71.7% 19,605.8 72.8%
R&D expenses -877.1 3.4% -914.4 3.4%
Advertising and promotion expenses -7,650.6 29.4% -8,144.7 30.2%
Selling, general and administrative expenses -5,460.5 21.0% -5,624.7 20.9%
Operating profit 4,676.3 18.0% 4,922.0 18.3%

Gross profit, at 19,605 million euros, came out at 72.8% of sales, compared with 71.7% in 2017, which is
an improvement of 110 basis points.
Research and Development expenses, at 914 million euros, have increased by 4.3%.
As announced, advertising and promotion expenses increased to 30.2% of sales, representing an increase
of 80 basis points.
Selling, general and administrative expenses, at 20.9% of sales, have been reduced by 10 basis points.
Overall, operating profit has grown by +5.3% to 4,922 million euros, and amounts to 18.3% of sales,
representing an increase of 30 basis points.

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 Operating profit by Division

2017 2018
€m % sales €m % sales
By Division
Professional Products 669.4 20.0% 651.5 20.0%
Consumer Products 2,419.0 20.0% 2,428.1 20.2%
L’Oréal Luxe 1,855.8 21.9% 2,072.4 22.1%
Active Cosmetics 471.2 22.6% 523.0 23.0%
Divisions total 5,415.4 20.8% 5,675.0 21.1%
Non-allocated 8 -739.1 -2.8% -753.1 -2.8%
Group 4,676.3 18.0% 4,922.0 18.3%

The profitability of the Professional Products Division came out at 20.0%.

The profitability of the Consumer Products Division came out at 20.2%, an improvement of 20 basis points
compared with 2017.
The profitability of L’Oréal Luxe, at 22.1%, increased by 20 basis points.
The profitability of the Active Cosmetics Division came out at 23.0%, representing an increase of 40 basis
points.
Non-allocated expenses amounted to 753 million euros, which is stable in relative value.

Profitability by Geographic Zone

2017 2018
Operating profit
€m % sales €m % sales
Western Europe 1,860.4 22.9% 1,682.5 20.9%
North America 1,411.3 19.2% 1,430.0 19.8%
New Markets 2,143.6 20.3% 2,562.5 22.0%
Geographic Zones total9 5,415.4 20.8% 5,675.0 21.1%

Profitability in Western Europe came out at 20.9%, 200 basis points lower than last year.
In North America, profitability came out at 19.8%, an increase of 60 basis points compared with 2017.
And in the New Markets, profitability increased by 170 basis points compared to the previous year, and
amounted to 22.0% of sales.

8
Non-allocated = Central Group expenses, fundamental research expenses, free grant of shares expenses and miscellaneous items. As
a % of sales.
9
Before non-allocated.
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 Net profit

Consolidated profit and loss accounts: from operating profit to net profit excluding non-recurring items.

€m 2017 2018 Growth

Operating profit 4,676.3 4,922.0 +5.3%
Financial revenues and expenses excluding dividends received -22.9 -1.9
Sanofi dividends 350.0 358.3
Profit before tax excluding non-recurring items 5,003.3 5,278.4 +5.5%
Income tax excluding non-recurring items -1,250.5 -1,286.8
Net profit excluding non-recurring items of equity consolidated
-0.1 +0.1
companies
Non-controlling interests -3.9 -4.1
Net profit excluding non-recurring items
3,748.710 3,987.6 +6.4%
after non-controlling interests

EPS11 (€) 6.65 7.08 +6.5%

Net profit after non-controlling interests 3,581.4 3,895.4 +8.8%
Diluted EPS after non-controlling interests (€) 6.36 6.92
Diluted average number of shares 563,528,502 563,098,506

Finance expenses came out at approximately 1.9 million euros.

Sanofi dividends amounted to 358 million euros.
Income tax excluding non-recurrent items amounted to 1,286 million euros, representing a tax rate of
24.4%.
Net profit excluding non-recurring items after non-controlling interests from continuing
operations amounted to 3,987 million euros, an increase of +6.4%, and +10% at constant exchange rates.
Earnings per Share, at 7.08 euros, is up by +6.5%.
Non-recurring items after non-controlling interests12 amounted to -92 million euros net of tax.
Net profit came out at 3,895 million euros, an increase of +8.8%.

Cash flow statement, Balance sheet and Cash position

Gross cash flow amounted to 5,178 million euros, an increase of 4.1%.

The working capital requirement decreased by 113 million euros.
At 1,416 million euros, investments represented 5.3% of sales.
Net cash flow13 at 3,875 million euros, is down slightly after a strong increase in the previous year.
The balance sheet is particularly solid, with shareholders’ equity amounting to 26.9 billion euros, and net
cash at 2,751 million euros at 31 December 2018.

Proposed dividend at the Annual General Meeting of 18 April 2019

The Board of Directors has decided to propose to the shareholders’ Annual General Meeting of 18 April 2019
a dividend of 3.85 euros per share, an increase of +8.5% compared with the dividend paid in 2018. The
dividend will be paid on 30 April 2019 (ex-dividend date 26 April 2019 at 0:00 a.m., Paris time).

10
Net profit, excluding non-recurring items after non-controlling interests, from continuing operations.
11
Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests, from continuing
operations.
12
Non-recurring items include impairment of assets, net profit of discontinued operations, restructuring costs and tax effects of non-
recurring items.
13
Net cash flow = Gross cash flow + changes in working capital - capital expenditure.
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 Share capital

At 31 December 2018, the capital of the company is formed by 560,396,652 shares, each with one voting
right.

“This news release does not constitute an offer to sell, or a solicitation of an off er to buy L’Oréal shares. If
you wish to obtain more comprehensive information about L’Oréa l, please refer to the public documents
registered in France with the Autorité des Marchés Financiers, also available in English on our Internet site
www.loreal-finance.com.
This news releas e may contain some forward-looking statements. Although the Company considers that
these statements are based on reasonable hypot heses at the dat e of publication of this release, they are by
their nature subject to risks and uncertainties which could cause actual results to differ mat erially from
those indicated or projected in these statements.”

This is a free translation into English of the 2018 Annual Results news release issued in the French language
and is provided solely for the convenience of English speaking readers. In case of discrepancy, the French
version prevails.

Contacts at L'ORÉAL (Switchboard: +33 1 47 56 70 00)

Individual shareholders Financial analysts and
and market authorities Institutional investors Journalists

Mr Jean Régis CAROF Mrs Françoise LAUVIN Mrs Stephanie CARSON-PARKER

Tel: +33 1 47 56 83 02 Tel: +33 1 47 56 86 82 Tel: +33 1 47 56 76 71
[email protected] [email protected] [email protected]

For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult yo ur usual newspapers, the
Internet site for shareholders and investors, www.loreal -finance.com or the L ’Oréal Finance app, alternatively, call +33 1 40 14 80 50.

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Appendices

Appendix 1: L’Oréal group sales 2017/2018 (€ millions)

2017 14
2018
First quarter:
Operational Divisions 6,847.8 6,778.6
The Body Shop 197.2
First quarter total 7,045.0 6,778.6
Second quarter:
Operational Divisions 6,564.2 6,612.1
The Body Shop
Second quarter total 6,564.2 6,612.1
First half:
Operational Divisions 13,411.9 13,390.7
The Body Shop
First half total 13,411.9 13,390.7
Third quarter:
Operational Divisions 6,097.9 6,473.3
The Body Shop
Third quarter total 6,097.9 6,473.3
Nine months:
Operational Divisions 19,509.9 19,864.0
The Body Shop
Nine months total 19,509.9 19,864.0
Fourth quarter:
Operational Divisions 6,513.8 7,073.4
The Body Shop
Fourth quarter total 6,513.8 7,073.4
Full year:
Operational Divisions 26,023.7 26,937.4
The Body Shop
Full year total 26,023.7 26,937.4

14
In the first quarter 2017, reported Group sales included The Body Shop sales, which amounted to 197.2 million euros.
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Appendix 2: Compared consolidated income statements

€ millions 2018 2017 (1) 2016 (1)

Net sales 26,937.4 26,023.7 24,916.3
Cost of sales -7,331.6 -7,359.2 -7,068.6
Gross profit 19,605.8 18,664.5 17,847.7
Research and development -914.4 -877.1 -841.2
Advertising and promotion -8,144.7 -7,650.6 -7,264.4
Selling, general and administrative expenses -5,624.7 -5,460.5 -5,236.0
Operating profit 4,922.0 4,676.3 4,506.1
Other income and expenses -94.7 -276.3 -541.3
Operational profit 4,827.3 4,400.0 3,964.8
Finance costs on gross debt -34.8 -35.5 -27.4
Finance income on cash and cash equivalents 47.9 38.5 39.0
Finance costs, net 13.1 3.1 11.6
Other financial income (expenses) -15.0 -26.0 -25.8
Sanofi dividends 358.3 350.0 346.5
Profit before tax and associates 5,183.7 4,727.0 4,297.1
Income tax -1,284.3 -901.3 -1,213.7
Share of profit in associates 0.1 -0.1 -0.1
Net profit from continuing operations 3,899.5 3,825.6 3,083.4
Net profit from discontinued operations - -240.1 25.3
Net profit 3,899.5 3,585.5 3,108.7
Attributable to:
- owners of the company 3,895.4 3,581.4 3,105.8
- non-controlling interests 4.1 4.1 2.9
Earnings per share attributable to owners of the company (euros) 6.96 6.40 5.55
Diluted earnings per share attributable to owners of the company (euros) 6.92 6.36 5.50
Earnings per share of continuing operations attributable to owners
of the company (euros) 6.96 6.83 5.51
Diluted earnings per share of continuing operations attributable
to owners of the company (euros) 6.92 6.78 5.46
Earnings per share of continuing operations attributable to owners
of the company, excluding non-recurring items (euros) 7.13 6.70 6.47
Diluted earnings per share of continuing operations attributable
to owners of the company, excluding non-recurring items (euros) 7.08 6.65 6.41
(1) The consolidated income statements for 2017 and 2016 are presented to reflect the impacts of IFRS 5 regarding discontinued operations, restating The Body
Shop activity on a single line “Net profit from discontinued operations”.

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Appendix 3: Consolidated statements of comprehensive income

€ millions 2018 2017** 2016*

Consolidated net profit for the period 3,899.5 3,585.5 3,108.7
Financial assets available-for-sale - -597.1 -201.0
Cash flow hedges -60.3 88.9 -124.0
Cumulative translation adjustments 126.4 -824.8 19.6
Income tax on items that may be reclassified to profit or loss (1) (2) 14.8 4.5 86.3
Items that may be reclassified to profit or loss 80.9 -1,328.5 -219.1
Financial assets at fair value through profit or loss 450.5 - -
Actuarial gains and losses -58.5 280.0 -1.3
Income tax on items that may not be reclassified to profit or loss (1) (2) 0.5 -107.9 -39.3
Items that may not be reclassified to profit or loss 392.5 172.1 -40.6
Other comprehensive income 473.4 -1,156.5 -259.7
Consolidated comprehensive income 4,372.9 2,428.9 2,849.0
Attributable to:
- owners of the company 4,368.7 2,424.8 2,845.6
- non-controlling interests 4.2 4.1 3.4
* 2016 as published including The Body Shop.
** Including The Body Shop for eight months in 2017.
(1) Including in 2017, respectively €20.4 million and -€21.5 million arising on the remeasurement of deferred tax in France further to the planned change in the tax rate
by 2022 and the deferred tax in the United States further to the change in the tax rate at 1 January 2018.
(2) The tax effect is as follows:
€ millions 2018 2017 2016
Financial assets available-for-sale - 37.3 41.7
Cash flow hedges 14.8 -32.8 44.6
Items that may be reclassified to profit or loss 14.8 4.5 86.3
Financial assets at fair value through profit or loss -14.0 - -
Actuarial gains and losses 14.5 -107.9 -39.3
Items that may not be reclassified to profit or loss 0.5 -107.9 -39.3
TOTAL 15.4 -103.4 47.0

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Appendix 4: Compared consolidated balance sheets

▌ ASSETS

€ millions 31.12.2018 31.12.2017 (1) 31.12.2016 (1) (2)

Non-current assets 25,991.2 24,320.1 25,584.6
Goodwill 9,597.1 8,872.3 8,792.5
Other intangible assets 3,087.3 2,579.1 3,179.4
Property, plant and equipment 3,624.6 3,571.1 3,756.9
Non-current financial assets 9,100.5 8,766.2 9,306.5
Investments in associates 9.0 1.1 1.0
Deferred tax assets 572.7 530.3 548.3
Current assets 12,466.3 11,019.0 10,045.6
Inventories 2,821.9 2,494.6 2,698.6
Trade accounts receivable 3,983.2 3,923.4 3,941.8
Other current assets 1,509.1 1,393.8 1,420.4
Current tax assets 160.1 160.6 238.8
Cash and cash equivalents 3,992.0 3,046.6 1,746.0
TOTAL 38,457.5 35,339.1 35,630.2

▌ EQUITY & LIABILITIES

€ millions 31.12.2018 31.12.2017 (1) 31.12.2016 (1) (2)

Equity 26,933.6 24,818.5 24,504.0
Share capital 112.1 112.1 112.4
Additional paid-in capital 3,070.3 2,935.3 2,817.3
Other reserves 15,952.5 14,761.8 13,961.9
Other comprehensive income 4,242.1 3,895.0 4,227.3
Cumulative translation adjustments -287.4 -413.5 410.9
Treasury stock -56.5 -56.5 -133.6
Net profit attributable to owners of the company 3,895.4 3,581.4 3,105.8
Equity attributable to owners of the company 26,928.4 24,815.7 24,501.9
Non-controlling interests 5.2 2.8 2.1
Non-current liabilities 1,412.2 1,347.2 1,918.9
Provisions for employee retirement obligations and related benefits 388.9 301.9 711.8
Provisions for liabilities and charges 336.1 434.9 333.3
Deferred tax liabilities 673.7 597.0 842.9
Non-current borrowings and debt 13.5 13.4 30.9
Current liabilities 10,111.6 9,173.4 9,207.3
Trade accounts payable 4,550.0 4,140.8 4,135.3
Provisions for liabilities and charges 979.8 889.2 810.7
Other current liabilities 3,138.9 2,823.9 2,854.4
Income tax 215.1 158.5 173.2
Current borrowings and debt 1,227.8 1,161.0 1,233.7
TOTAL 38,457.5 35,339.1 35,630.2
(1) The balance sheets at 31 December 2017 and 31 December 2016 have been restated to reflect the change in accounting policies resulting from the application of
IFRS 9 “Financial Instruments”.
(2) 2016 balance sheets as published including The Body Shop.

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Appendix 5: Consolidated statements of changes in equity

Equity
Retained Other attributable Non-
Common Additional earnings compre- Cumulative to owners control-
shares Share paid-in and net hensive Treasury translation of the ling Total
€ millions outstanding capital capital profit income shares adjustments company interests equity
At 31.12.15 559,988,178 112.6 2,654.4 16,170.8 4,517.5 -233.3 391.9 23,613.9 3.1 23,617.0
Changes in accounting policies at 01.01.2016 10.0 -10.0 - -
At 01.01.2016 (1) 559,988,178 112.6 2,654.4 16,180.8 4,507.5 -233.3 391.9 23,613.9 3.1 23,617.0
Consolidated net profit for the period 3,105.8 3,105.8 2.9 3,108.7
Financial assets available-for-sale -159.3 -159.3 -159.3
Cash flow hedges -79.3 -79.3 -0.1 -79.4
Cumulative translation adjustments 19.0 19.0 0.6 19.6
Other comprehensive income that may be
reclassified to profit and loss -238.6 19.0 -219.6 0.5 -219.1
Actuarial gains and losses -40.6 -40.6 -40.6
Other comprehensive income that may not
be reclassified to profit and loss -40.6 -40.6 - -40.6
Consolidated comprehensive income 3,105.8 -279.2 19.0 2,845.6 3.4 2,849.0
Capital increase 2,074,893 0.4 162.8 163.2 163.2
Cancellation of Treasury shares -0.6 -498.9 499.5 - -
Dividends paid (not paid on Treasury shares) -1,741.9 -1,741.9 -3.4 -1,745.2
Share-based payment 120.4 120.4 120.4
Net changes in Treasury shares -1,964,675 -99.3 -399.8 -499.1 -499.1
Purchase commitments for non-controlling interests - -0.1 -0.1
Changes in scope of consolidation -0.8 -0.8 -0.9 -1.7
Other movements 1.6 -1.0 0.6 -0.1 0.5
At 31.12.2016 (1) 560,098,396 112.4 2,817.3 17,067.6 4,227.3 -133.6 410.9 24,501.9 2.1 24,504.0
Consolidated net profit for the period 3,581.4 3,581.4 4.1 3,585.5
Financial assets available-for-sale -559.7 -559.7 -559.7
Cash flow hedges 55.5 55.5 0.4 55.9
Cumulative translation adjustments -824.5 -824.5 -0.3 -824.8
Other comprehensive income that may be
reclassified to profit and loss -504.2 -824.5 -1,328.7 0.1 -1,328.6
Actuarial gains and losses 172.1 172.1 172.1
Other comprehensive income that may not
be reclassified to profit and loss 172.1 172.1 - 172.1
Consolidated comprehensive income 3,581.4 -332.2 -824.5 2,424.8 4.1 2,428.9
Capital increase 1,509,951 0.3 118.0 118.3 118.3
Cancellation of Treasury shares -0.6 -498.6 499.2 - -
Dividends paid (not paid on Treasury shares) -1,857.7 -1,857.7 -3.5 -1,861.2
Share-based payment 128.8 128.8 128.8
Net changes in Treasury shares -1,860,384 -77.2 -422.0 -499.2 -499.2
Changes in scope of consolidation -1.3 -1.3 -1.3
Other movements 0.3 0.2 0.2
At 31.12.2017 (1) 559,747,963 112.1 2,935.3 18,343.3 3,895.0 -56.5 -413.5 24,815.7 2.8 24,818.5
(1) Taking into account the change in accounting policies resulting from the application of IFRS 9 “Financial Instruments”.

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 Equity
Retained Other attributable Non-
Common Additional earnings compre- Cumulative to owners control-
shares Share paid-in and net hensive Treasury translation of the ling Total
€ millions outstanding capital capital profit income shares adjustments company interests equity
At 31.12.2017 (1) 559,747,963 112.1 2,935.3 18,343.3 3,895.0 -56.5 -413.5 24,815.7 2.8 24,818.5
Changes in accounting policies at 01.01.2018 -12.0 -12.0 -0.9 -12.9
At 01.01.2018 (2) 559,747,963 112.1 2,935.3 18,331.3 3,895.0 -56.5 -413.5 24,803.7 1.9 24,805.6
Consolidated net profit for the period 3,895.4 3,895.4 4.1 3,899.5
Cash flow hedges -45.3 -45.3 -0.2 -45.5
Cumulative translation adjustments 114.5 114.5 0.3 114.8
Hyperinflation 11.6 11.6 11.6
Other comprehensive income that may
be reclassified to profit and loss -45.3 126.1 80.8 0.1 80.9
Financial assets at fair value through profit or loss 436.5 436.5 436.5
Actuarial gains and losses -44.0 -44.0 -44.0
Other comprehensive income that may
not be reclassified to profit and loss 392.5 392.5 - 392.5
Consolidated comprehensive income 3,895.4 347.2 126.1 4,368.7 4.2 4,372.9
Capital increase 2,375,378 0.5 135.0 -0.2 135.3 135.3
Cancellation of Treasury shares -0.5 -498.9 499.4 - -
Dividends paid (not paid on Treasury shares) -2,006.6 -2,006.6 -3.8 -2,010.4
Share-based payment 126.4 126.4 126.4
Net changes in Treasury shares -2,497,814 -499.4 -499.4 -499.4
Changes in scope of consolidation -2.9 -2.9 2.9 -
Other movements 3.4 -0.1 3.3 3.3
AT 31.12.2018 559,625,527 112.1 3,070.3 19,847.8 4,242.1 -56.5 -287.4 26,928.4 5.2 26,933.6
(1) Taking into account the change in accounting policies resulting from the application of IFRS 9 “Financial Instruments”.
(2) Taking into account the change in accounting policies resulting from the application of IFRS 15 “Revenue from contracts with customers”.

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Appendix 6: Compared consolidated statements of cash flows

€ millions 2018 2017 (1) 2016 (1)

Cash flows from operating activities
Net profit attributable to owners of the company 3,895.4 3,581.4 3,105.8
Non-controlling interests 4.1 4.1 2.9
Elimination of expenses and income with no impact on cash flows:
- depreciation, amortisation and provisions 1,109.3 1,218.5 1,382.3
- changes in deferred taxes 43.0 -194.8 86.5
- share-based payment (including free shares) 126.4 126.7 120.4
- capital gains and losses on disposals of assets -2.7 -3.9 -16.2
Other operations without effect on cash and cash equivalents 2.7 - -
Net profit from discontinued operations - 240.1 -25.3
Share of profit in associates net of dividends received -0.1 0.1 0.1
Gross cash flow 5,178.1 4,972.2 4,656.4
Changes in working capital 113.8 261.1 4.3
Net cash provided by operating activities from discontinued operations - -36.7 43.9
Net cash provided by operating activities (A) 5,291.9 5,196.6 4,704.7
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets -1,416.1 -1,263.5 -1,334.9
Disposals of property, plant and equipment and intangible assets 5.6 8.2 34.2
Changes in other financial assets (including investments in non-consolidated companies) 61.0 -70.7 -42.9
Effect of changes in the scope of consolidation -666.5 -166.5 -1,209.0
Net cash (used in) from investing activities from discontinued operations - -24.4 -51.8
Net cash (used in) from investing activities (B) -2,016.0 -1,516.9 -2,604.5
Cash flows from financing activities
Dividends paid -2,061.4 -1,870.7 -1,832.9
Capital increase of the parent company 135.3 118.3 163.2
Disposal (acquisition) of Treasury shares -499.4 -499.2 -499.1
Purchase of non-controlling interests - -2.0 -
Issuance (repayment) of short-term loans 62.3 -86.6 446.0
Issuance of long-term borrowings - - 1.8
Repayment of long-term borrowings -4.3 -7.0 -16.4
Net cash (used in) from financing activities from discontinued operations - 71.5 -3.5
Net cash (used in) from financing activities (C) -2,367.5 -2,275.7 -1,740.8
Net effect of changes in exchange rates and fair value (D) 36.9 -65.3 -13.1
Change in cash and cash equivalents (A+B+C+D) 945.4 1,338.7 346.2
Cash and cash equivalents at beginning of the year (E) 3,046.6 1,746.0 1,399.8
Net effect of changes in cash and cash equivalents of discontinued operations (F) - -38.1 -
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (A+B+C+D+E+F) 3,992.0 3,046.6 1,746.0
(1) The consolidated statement of cash flows for 2017 and 2016 are presented to reflect the impacts of IFRS 5 regarding discontinued operations.

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