2021 UNIVERSAL REGISTRATION DOCUMENT

5. 2021 Consolidated financial statements

An impairment loss on the IT Cosmetics cash-generating unit was recorded for €254.7 million in view of adverse events, the performance not being in line with expectations. The slippage on the business plan results from the discontinuation of some very dilutive distribution channels in the United States.

The recoverable amount of the IT Cosmetics cash-generating unit was €750.8 million at the end of June 2021. The discount rate used at 31 December 2021 for this test were as follows: 7.4% for the USA and 7.8% for international.

At 31 December 2021, a 1% increase in the discount rate on all the Group’s Cash Generating Units would lead to an impairment loss risk of around €176.5 million.

A 1% decrease in the terminal growth rate on all the Group’s Cash Generating Units would lead to an impairment loss risk of around €110.9 million.

The terminal growth rate is consistent with market data, i.e.2.5% for Europe and 3% for the rest of the world.

A 1-point decrease in the margin rate over the business plan period on all the Group’s Cash Generating Units would lead to an impairment loss risk of around €44.5 million.

The net carrying amount of goodwill and brands with indefinite useful life breaks down as follows for the largest Cash Generating Units:

 Fragrance : (2021, 2020, 2019), Maybelline Garnier : (2021, 2020, 2019), IT Cosmetics : (2021, 2020, 2019), L'Oréal Paris :  (2021, 2020, 2019), Lancôme : (2021, 2020, 2019), CeraVe (2021, 2020, 2019), Matrix (2021, 2020, 2019), Redken PureOlogy : (2021, 2020, 2019), YSL Beauté : (2021, 2020, 2019), Stylenanda  (2021, 2020, 2019), NYX Professional Makeup  : (2021, 2020, 2019), L'Oréal Profes-sionnel Kérastase : (2021, 2020, 2019), Vichy Dermablend : (2021, 2020, 2019), Shu Uemura : (2021, 2020, 2019).

2021

  • Fragrance approximately 1,800
  • L'Oréal Paris: approximately 1,200
  • Mass Market Make-up: approximately 1,005
  • Lancôme: approximately 800
  • CeraVe: approximately 755
  • Redken PureOlogy: approximately 740
  • IT Cosmetics: approximately 703
  • Matrix: approximately 700
  • YSL Beauté: approximately 500
  • Stylenanda: approx. 497
  • Garnier: approx. 498
  • NYX Professional Makeup: approximately 488
  • L'Oréal Professionnel Kérastase: approximately 486
  • Vichy Dermablend: approximately 376
  • Urban Decay: approximately 286
  • Shu Uemura: approximately 300

2020

  • Fragrance: approximately 1,810
  • L'Oréal Paris: approximately 1,170
  • Mass Market Make-up: approximately 1,000
  • Lancôme: approximately 797
  • CeraVe: approximately 745
  • Redken PureOlogy: approximately 703
  • IT Cosmetics: approximately 935
  • Matrix: approximately 690
  • YSL Beauté: approximately 500
  • Stylenanda: approximately 498
  • Garnier: approximately 490
  • NYX Professional Makeup: approximately 484
  • L'Oréal Professionnel Kérastase: approximately 485
  • Vichy Dermablend: approximately 374
  • Urban Decay: approximately 283
  • Shu Uemura: approximately 300

2019

  • Fragrance: approximately 475
  • L'Oréal Paris: approximately 840
  • Mass Market Make-up: approximately 1,005
  • Lancôme: approximately 798
  • CeraVe: approximately 755
  • Redken PureOlogy: approximately 743
  • IT Cosmetics: approximately 998
  • Matrix: approximately 701
  • YSL Beauté: approximately 500
  • Stylenanda: approx. 499
  • Garnier: approximately 515
  • NYX Professional Makeup: approximately 488
  • L'Oréal Professionnel Kérastase: approximately 486
  • Vichy Dermablend: approximately 377
  • Urban Decay: approximately 286
  • Shu Uemura: approximately 300

NOTE 8. Investments accounted for under the equity method

€ millions 31.12.2021 31.12.2020 31.12.2019
Investments accounted for under the equity method Investments accounted for under the equity method

31.12.2021

 

Investments accounted for under the equity method

31.12.2020

 

Investments accounted for under the equity method

31.12.2019

 

LIPP Distribution

LIPP Distribution

31.12.2021

9.3

LIPP Distribution

31.12.2020

10.5

LIPP Distribution

31.12.2019

10.1

Other

Other

31.12.2021

0.6

Other

31.12.2020

0.6

Other

31.12.2019

0.8

TOTAL

TOTAL

31.12.2021

9.9

TOTAL

31.12.2020

11.1

TOTAL

31.12.2019

10.9