2024 universal registration document

Note 22 Transactions with related entities and parties

All material related-party transactions were entered into on an arm’s length basis.

Note 23 Off-balance sheet commitments

23.1 Lease commitments

Operating lease commitments amounted to €7.1 million due in less than one year, €22.1 million due between one and five years and €4.9 million due after five years.

23.2 Other off-balance sheet commitments

Confirmed credit facilities are set out in note 18.

Other off-balance sheet commitments can be broken down as follows:

€ millions	31.12.2024	31.12.2023	31.12.2022
Commitments in connection with employee retirement obligations and related benefits⁽¹⁾	Commitments in connection with employee retirement obligations and related benefits ⁽¹⁾ 31.12.2024 (242.9)	Commitments in connection with employee retirement obligations and related benefits ⁽¹⁾ 31.12.2023 (80.4)	Commitments in connection with employee retirement obligations and related benefits ⁽¹⁾ 31.12.2022 (205.5)
Commitments to buy out non-controlling interests	Commitments to buy out non-controlling interests 31.12.2024 15.1	Commitments to buy out non-controlling interests 31.12.2023 12.2	Commitments to buy out non-controlling interests 31.12.2022 11.6
Guarantees given⁽²⁾	Guarantees given ⁽²⁾ 31.12.2024 2,011.8	Guarantees given ⁽²⁾ 31.12.2023 1,927.1	Guarantees given ⁽²⁾ 31.12.2022 2,002.9
Guarantees received	Guarantees received 31.12.2024 —	Guarantees received 31.12.2023 —	Guarantees received 31.12.2022 2.8
Capital expenditure orders and service contracts⁽³⁾	Capital expenditure orders and service contracts ⁽³⁾ 31.12.2024 472.9	Capital expenditure orders and service contracts ⁽³⁾ 31.12.2023 404.1	Capital expenditure orders and service contracts ⁽³⁾ 31.12.2022 111.4
Documentary credits	Documentary credits 31.12.2024 —	Documentary credits 31.12.2023 —	Documentary credits 31.12.2022 —

The discount rate used in 2024 to measure commitments was 3.50% for plans providing for the payment of capital and 3.50% for annuity plans, compared with 3.25% and 3.25% respectively in 2023, and 3.75% and 3.75% in 2022. Interest rate levels resulted in a funding surplus for pension liabilities in the amount of €218.7 million at end of 2024 versus €81.2 million at end-2023. An agreement for the pooling of employee-related liabilities was set up in 2004. Pursuant to this agreement, commitments are allocated among the French companies in the Group and their financing is organised in proportion to their respective payroll costs (customised for each plan) so that the companies are joint and severally liable for meeting the aforementioned commitments within the limit of the collective funds built up.
This caption includes various sureties and guarantees on behalf of direct and indirect subsidiaries amounting to €1,961.6 million at 31 December 2024, versus €1,842.1 million at 31 December 2023 and €1,922.9 million at 31 December 2022. It also includes funding commitments to a philanthropic fund that supports vulnerable women, and to the L'Oréal Climate Emergency Fund.
Including irrevocable commitments for IT contracts and energy purchases (these services will be re-billed to Group entities).

23.3 Contingent liabilities

In the normal course of its activities, the Company is involved in legal proceedings and is subject to fiscal, customs and administrative controls. 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 Company’s earnings, financial position, assets or operations.

Note 24 Changes in working capital

Changes in working capital can be broken down as follows:

€ millions	31.12.2024	31.12.2023	31.12.2022
Inventories	Inventories 31.12.2024 —	Inventories 31.12.2023 14.2	Inventories 31.12.2022 (32.3)
Accounts Receivable	Accounts Receivable 31.12.2024 187.9	Accounts Receivable 31.12.2023 (758.2)	Accounts Receivable 31.12.2022 (100.1)
Accounts Payable	Accounts Payable 31.12.2024 15.9	Accounts Payable 31.12.2023 177.2	Accounts Payable 31.12.2022 197.9
TOTAL	TOTAL 31.12.2024 203.7	TOTAL 31.12.2023 (566.8)	TOTAL 31.12.2022 65.5