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L'Oreal : L'Oréal: News Release: "First-half 2013 results"

          L'Oreal : L'Oréal: News Release: "First-half 2013 results"

Clichy, August 29^th, 2013 at 6:00 p.m.

                           First-half 2013 results

                           RECORD OPERATING PROFIT:

                    2.043 BILLION EUROS AT 17.4% OF SALES,

                                 UP BY +7.7%

  *Sales: +5.4% like-for-like*

  *Strong growth in gross profit at 71.7% of sales

  *Sustained investments  in Research  & Innovation  and in  Advertising  and 
    Promotional growth drivers

  *Net profit after non-controlling interests: +5.2%

  *EPS**: +7.1%, at 2.94 euros

                    CONFIDENCE IN A FURTHER YEAR OF GROWTH

                     IN SALES, RESULTS AND PROFITABILITY

Commenting on the  figures, Mr  Jean-Paul Agon, Chairman  and Chief  Executive 
Officer of L'Oréal, said:

"In the first half, in a market whose growth slowed down slightly, L'Oréal has
continued to  record  good sales  dynamics,  and achieved  further  growth  in 
profits.



The Group's  competitiveness has  improved  once again,  and is  reflected  in 
market share  gains  across all  divisions  and zones.  Operating  profit  has 
reached a historically  high level, with  a good quality  gross profit and  an 
ongoing policy  of  sustained investments  in  Research &  Innovation  and  in 
Advertising and Promotional growth drivers.



These performances demonstrate  the relevance  of our business  model and  the 
quality of  our fundamentals:  the ability  of our  research to  create  major 
innovations and stimulate  the market,  and the  vitality and  quality of  our 
brand portfolio.  We are  thus  ambitious and  optimistic  as we  continue  to 
implement our strategy  of the  "universalisation of beauty"  and conquer  the 
next billion consumers.



We are confirming  our targets for  2013 and remain  confident in the  Group's 
ability to once again outperform the market, and to achieve a further year  of 
growth in sales, results and profitability."

* +4.7% based on reported figures.
** Diluted net earnings per share, based on net profit excluding non-recurring
items after non-controlling interests.

                                      

                                      

A - First-half 2013 sales

  *Based on  reported  figures,  the  Group's sales,  at  June  30^th,  2013, 
    amounted to 11.738  billion euros,  an increase  of +4.7%.  Like-for-like, 
    i.e. based on  a comparable  structure and identical  exchange rates,  the 
    L'Oréal sales growth was +5.4%. The net impact of changes in consolidation
    was +1.0%. Currency fluctuations had a negative impact of -1.7%. Growth at
    constant exchange rates was +6.4%.
    

  *If the current  exchange rates, i.e.  €1 = $1.334  are extrapolated up  to 
    December 31^st,  the impact  of currency  fluctuations on  sales would  be 
    approximately -3.6% for the whole of 2013.

  *The news release of  July 16^th, 2013 details  the activity for the  first 
    half of 2013. This  news release is available  and can be downloaded  from 
    the www.loreal-finance.com website.

              Sales by operational division and geographic zone

                         2^nd quarter 2013                 1^st half 2013
                                   Growth                          Growth
                     €m    Like-for-like Reported    €m    Like-for-like Reported
By operational
division
Professional         779.3          2.7%     1.5%  1,531.8          1.4%     0.6%
Products
Consumer Products  2,802.2          6.1%     4.7%  5,723.0          6.3%     5.1%
L'Oréal Luxe       1,404.7          5.5%     5.1%  2,826.8          6.4%     6.6%
Active Cosmetics     409.5          8.6%     7.2%    907.1          7.8%     6.6%
Cosmetics total    5,395.7          5.6%     4.5% 10,988.7          5.7%     4.9%
By geographic zone
Western Europe     1,908.5          1.7%     1.3%  3,899.0          1.7%     1.6%
North America      1,371.7          4.5%     4.9%  2,743.2          5.4%     6.7%
New Markets, of    2,115.4         10.3%     7.3%  4,346.6          9.9%     7.0%
which:
-Asia,    1,051.8          8.2%     4.5%  2,240.2          8.0%     5.1%
Pacific
-Latin      507.7         15.2%    13.2%    966.3         13.5%     9.6%
America
-Eastern    355.4          7.5%     5.1%    745.1          8.4%     6.7%
Europe
-Africa,    200.6         15.1%    12.8%    394.9         15.1%    12.3%
Middle East
Cosmetics total    5,395.7          5.6%     4.5% 10,988.7          5.7%     4.9%
The Body Shop     186.9         -0.8%    -3.4%    368.8          0.5%    -1.4%
Dermatology^(1)   223.9          0.8%     4.2%    380.6          0.3%     3.3%
Group total        5,806.5          5.2%     4.2% 11,738.1          5.4%     4.7%

  (1) Group share, i.e. 50%.

B - First-half 2013

The half-year consolidated accounts have undergone a limited examination by
the Statutory Auditors.

1) Operating profitability at 17.4% of sales

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

                            As % of          As % of          As % of  Growth
      In €m        06/30/12  sales  12/31/12  sales  06/30/13  sales  06/30/12
                                                                      06/30/13
Sales              11,213.2  100.0% 22,462.7  100.0% 11,738.1  100.0%    +4.7%
Cost of sales      -3,247.2   29.0% -6,587.7   29.3% -3,318.7   28.3%    +2.2%
Gross Profit        7,966.0   71.0% 15,875.0   70.7% -8,419.4   71.7%    +5.7%
R&D expenses         -386.5    3.4%   -790.5    3.5%   -420.3    3.6%    +8.8%
Advertising and    -3,403.6   30.4% -6,776.3   30.2% -3,544.2   30.2%    +4.1%
promotion expenses
Selling, general
and administrative -2,279.4   20.3% -4,610.9   20.5% -2,411.9   20.5%    +5.8%
expenses
Operating profit    1,896.5   16.9%  3,697.3   16.5%  2,042.9   17.4%    +7.7%

Gross profit, at  8,419 million euros,  came out at  71.7% of sales,  compared 
with 71.0% in the first half of 2012, representing an improvement of 70  basis 
points.

Research and Development expenses increased from 3.4% to 3.6% as a  percentage 
of sales, and have grown by 8.8%. This increase reflects the Group's  constant 
determination to support its investments in Research and Innovation.

Advertising and promotion expenses  came out at 30.2%  of sales, which is  the 
same as the figure for the first  half of 2012 at constant exchange rates  and 
scope of consolidation.

Selling, general and administrative expenses, at 20.5% of sales, were slightly
higher, by 20 basis points, than in the first half of 2012.

Operating profit grew by  7.7%, with a further  50 basis point improvement  in 
profitability, and amounted to 17.4% of sales,  which is a record level for  a 
half-year.

2)Operating profit by branch and division



                               06/30/12          12/31/12         06/30/13
                            €m    % of sales   €m    % of sales   €m     % of
                                                                        sales
By operational division
Professional Products       303.2      19.9%   615.2      20.5%   307.3  20.1%
Consumer Products         1,081.7      19.9% 2,050.8      19.1% 1,190.2  20.8%
L'Oréal Luxe                517.2      19.5% 1,077.0      19.3%   566.2  20.0%
Active Cosmetics            221.9      26.1%   311.2      20.4%   247.9  27.3%
Cosmetics divisions total 2,123.9      20.3% 4,054.3      19.5% 2,311.6  21.0%
Non-allocated*             -279.7      -2.7%  -577.2      -2.8%  -294.8  -2.7%
Cosmetics branch total    1,844.2      17.6% 3,477.1      16.7% 2,016.8  18.4%
The Body Shop                11.6       3.1%    77.5       9.1%     9.8   2.7%
Dermatology branch**         40.7      11.0%   142.6      17.9%    16.2   4.3%
Group                     1,896.5      16.9% 3,697.3      16.5% 2,042.9  17.4%

* Non-allocated = Central Group expenses, fundamental research expenses, stock
option and free grant of  shares expenses and miscellaneous  items. As a %  of 
cosmetics sales.
** Group share, i.e. 50%.

The profitability rates  of each of  the Divisions improved  during the  first 
half:

The profitability of  Professional Products Division  increased from 19.9%  to 
20.1%, in a difficult market context.
The profitability of the  Consumer Products Division  increased from 19.9%  to 
20.8%, that  of L'Oréal  Luxe from  19.5% to  20.0%, and  that of  the  Active 
Cosmetics Division from 26.1% to 27.3%.

The profitability of the cosmetics branch,  at 18.4%, grew by 80 basis  points 
in the first half.

The profitability of  The Body Shop,  which is mainly  achieved in the  second 
half, came out at 2.7% in the first half.

Dermatology, whose profitability is traditionally stronger in the second  half 
of each year, came out at 4.3%.

3)Net earnings per share**: 2.94 euros

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

                                                                      % change
              In €m                06/30/12    12/31/12    06/30/13   06/30/12
                                                                      06/30/13
Operating profit                      1,896.5     3,697.3     2,042.9    +7.7%
Financial revenues and expenses          -4.7       -11.0       -18.0
excluding dividends received
Sanofi dividends                        313.3       313.4       327.5
Profit before tax excluding           2,205.2     3,999.7     2,352.4
non-recurring items
Income tax excluding                   -545.0     1,025.3      -560.8
non-recurring items
Non-controlling interests                -1.6        -2.7        -1.7
Net profit excluding
non-recurring items                   1,658.6     2,971.7     1,789.9    +7.9%
after non-controlling interests*
Net EPS ** (€)                           2.75        4.91        2.94    +7.1%
Net profit after non-controlling      1,625.2     2,867.7     1,708.9    +5.2%
interests
Diluted net EPS after                    2.69        4.74        2.81
non-controlling interests (€)
Diluted average number of shares  603,384,895 605,305,458 607,829,132

* Net  profit excluding  non-recurring items  after non-controlling  interests 
does not include capital  gains and losses on  disposals of long-term  assets, 
impairment of assets, restructuring  costs,as well as competition  litigation, 
and tax effects or non-controlling interests.
**  Diluted  net  earnings  per  share  excluding  non-recurring  items  after 
non-controlling interests.

Overall finance  costs  amounted to  18.0  million euros,  compared  with  4.7 
million euros in the first half of 2012. This increase is mainly the result of
the restatement of the  financial component of the  retirement expense in  the 
financial cost and  of the  modification of the  IAS 19  standard on  employee 
benefits schemes.

The dividends received from Sanofi amounted to 327.5 million euros.

Income tax  excluding non-recurring  items amounted  to 560.8  million  euros, 
representing a rate of 23.8%,  slightly below the rate  for the first half  of 
2012, which was 24.7%.

Net profit excluding non-recurring items after non-controlling interests came
out at 1,789.9 million euros, up by 7.9%.

Net EPS amounted to 2.94 euros, an increase of 7.1%.

Net profit  after  allowing for  non-recurring  itemsandafter  non-controlling 
interests amounted to 1,708.9 million euros, an increase of 5.2%.

4)Operating cash flow and balance sheet 

Gross cash flow amounted to 2,115 million euros; an increase of 7.8%  compared 
with the first half of 2012.

The change in working capital increased significantly, as it does in the first
half of each year,  reflecting the seasonality of  our business. In the  first 
half of 2013, the increase was slightly below the figure for the first half of
2012.

Investments amounted to 524 million euros, that is 4.5% of sales.

Total cash flow from  operating activities came out  at 943 million euros,  an 
increase of 22.7%.

Finally, after payment of the dividend and acquisitions, consisting mainly  of 
the acquisition of Vogue in Colombia, of the Beauty business of  Interconsumer 
Products in Kenya and of Spirig at  Galderma, the residual cash flow came  out 
at -1,017 million euros.

At June 30^th, 2013, net cash was positive at 572 million euros.

The balance sheet  structure is particularly  robust, as shareholders'  equity 
represents approximately 71% of total assets.

5)Post-closing event

On August 15^th, 2013, L'Oréal  and Magic Holdings International Limited  have 
announced L'Oréal's proposal to  acquire all of the  shares of Magic  Holdings 
International Limited, a company listed in  the Hong Kong Stock Exchange.  The 
proposed price is 6.30 HK dollars per share.
L'Oréal's proposal  is  supported  by  Magic's Board  of  Directors.  Six  key 
shareholders,  representing  62.3%  of  the  company's  equity,  are   already 
committed to supporting L'Oréal's proposal.
The implementation  of the  transaction  is subject  to  the approval  of  the 
Ministry of Commerce of the People's Republic of China (MOFCOM).
A  specialist  in  cosmetic  facial  masks,  Magic's  turnover  in  2012   was 
approximately 150  million  euros. Facial  masks  are one  of  China's  beauty 
market's fastest  growing areas  with  very promising  development  prospects. 
Magic's MG brand is one of China's leading brands in this category.

This paragraph is not intended  to and does not  constitute, or form part  of, 
any offer to sell or subscribe for  or an invitation to purchase or  subscribe 
for any  securities  or  the solicitation  of  any  vote or  approval  in  any 
jurisdiction pursuant to the above mentioned proposal or otherwise, nor  shall 
there be  any sale,  issuance  or transfer  of  securities of  Magic  Holdings 
International Limited in any jurisdiction in contravention of applicable  law. 
The proposal, if made, will be made solely through the Scheme Document,  which 
will contain the full terms and conditions of the proposal, including  details 
of how to vote in  favour of the proposal  and restrictions applicable to  the 
proposal. Any response to  the proposal, acceptance  included, should be  made 
only on the basis of information in the Scheme Document or any other  document 
by which the Proposal is made, as the case may be.





"This news release does not constitute an offer to sell, or a solicitation  of 
an offer  to buy  L'Oréal shares.  If you  wish to  obtain more  comprehensive 
information about L'Oréal, 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 release  may contain some  forward-looking statements. Although  the 
Company considers that these statements are based on reasonable hypotheses  at 
the date of publication of this release,  they are by their nature subject  to 
risks and uncertainties which could cause actual results to differ  materially 
from those indicated or projected in these statements."



This is a free  translation into English of  the First-half 2013 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: +33147567000)

Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel: +33 1 47 56 83 02
jean-regis.carof@loreal.com 

Financial analysts and Institutional investors
Mrs Françoise LAUVIN
Tel: +33 1 47 56 86 82
francoise.lauvin@loreal.com

Journalists
Mrs Stephanie CARSON-PARKER
Tel: +33 1 47 56 76 71
stephanie.carsonparker@loreal.com

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



C - Appendices


I.Comparedconsolidatedincomestatements

€ millions                              1^st half 2013 1^st half 2012     2012
Net sales                                     11,738.1       11,213.2 22,462.7
Cost of sales                                 -3,318.7       -3,247.2 -6,587.7
Gross profit                                   8,419.4        7,966.0 15,875.0
Research and development                        -420.3         -386.5   -790.5
Advertising and promotion                     -3,544.2       -3,403.6 -6,776.3
Selling, general and administrative           -2,411.9       -2,279.4 -4,610.9
expenses
Operating profit                               2,042.9        1,896.5  3,697.3
Other income and expenses                        -30.2          -55.6   -123.8
Operational profit                             2,012.7        1,840.9  3,573.5
Finance costs on gross debt                      -13.0          -18.7    -34.5
Finance income on cash and cash                   17.2           16.3     31.3
equivalents
Finance costs, net                                 4.2           -2.4     -3.2
Other financial income (expenses)                -22.2           -2.2     -7.8
Sanofi dividends                                 327.5          313.3    313.4
Profit before tax and non-controlling          2,322.2        2,149.6  3,875.9
interests
Income tax                                      -611.6         -522.8 -1,005.5
Net profit                                     1,710.6        1,626.8  2,870.4
attributable to:
- owners of the company                        1,708.9        1,625.2  2,867.7
- non-controlling interests                        1.7            1.6      2.7
Earnings per share attributable to                2.86           2.72     4.79
owners of the company (euros)
Diluted earnings per share attributable
to owners
of the company (euros)                            2.81           2.69     4.74
Earnings per share attributable to
owners of the company
excluding non-recurring items (euros)             2.99           2.78     4.97
Diluted earnings per share attributable
to owners
of the company excluding non-recurring
items (euros)                                     2.94           2.75     4.91

II.  Consolidated statements of net profit and gains andlosses recognised
directly in equity

€ millions                               1^st half 2013 1^st half 2012    2012
Consolidated net profit for the                 1,710.6        1,626.8 2,870.4
period
Financial assets available for sale               973.0          353.5 1,730.9
Cash flow hedges                                  -18.6            6.7   103.0
Cumulative translation adjustments               -104.2           98.6  -134.3
Income tax on items that may be                   -35.1          -13.7  -116.9
reclassified to profit or loss ^(1)
Items that may be reclassified to                 815.1          445.1 1,582.7
profit or loss
Actuarial gains and losses                          -          -410.3  -271.9
Income tax on items that maynot be                      142.5    86.7
reclassified to profit or loss ^ (1)               - 
Items that may not be reclassified to                  -267.8  -185.2
profit or loss                                     - 
Changes in gains and losses                       815.1          177.3 1,397.5
recognised directly in equity
Total net profit and gains and losses           2,525.7        1,804.1 4,267.9
recognised directly in equity
attributable to:
- owners of the company                         2,524.0        1,802.5 4,265.1
- non-controlling interests                         1.7            1.6     2.8

^(1)    The tax effect is as follows:

€ millions                                1^st half 2013 1^st half 2012   2012
Financial assets available for sale                -40.2          -12.2  -90.0
Cash flow hedges                                     5.1           -1.5  -26.9
Items that may be reclassified to profit           -35.1          -13.7 -116.9
or loss
Actuarial gains and losses                           -           142.5   86.7
Items that may not be reclassified to                -           142.5   86.7
profit or loss
Total                                              -35.1          128.8  -30.2

III.  Compared consolidated balance sheets

Assets

€ millions                        06.30.2013 06.30.2012 ^(1)   12.31.2012 ^(1)
Non-current assets                  22,457.8        20,001.8          21,321.3
Goodwill                             6,554.0         6,439.5           6,478.2
Other intangible assets              2,598.3         2,500.8           2,625.4
Property, plant and                  3,054.6         2,987.9           2,962.8
equipment
Non-current financial                9,506.1         7,254.8           8,531.3
assets
Deferred tax assets                    744.8           818.8             723.6
Current assets                       8,379.8         8,233.5           8,209.6
Current assets excluding             8,379.8         8,202.5           8,209.6
assets held for sale
Inventories                          2,225.0         2,109.5           2,033.8
Trade accounts receivable            3,678.9         3,494.2           3,208.8
Other current assets                 1,128.5         1,056.2           1,006.6
Current tax assets                     102.9            74.0             137.2
Cash and cash equivalents            1,244.5         1,468.6           1,823.2
Assets held for sale               -            31.0         
                                                                         - 
Total                               30,837.6        28,235.3          29,530.9

^(1)    The  balance sheets at June 30^th,  2012 and December 31^st,  2012 
have been restated to  reflect the change  in accounting policies  resulting 
from the amendment to IAS19 (revised).

Equity & Liabilities

€ millions                        06.30.2013 06.30.2012 ^ (1) 12.31.2012 ^ (1)
Equity                              21,788.0         18,672.3         20,925.5
Share capital                          121.2            121.2            121.8
Additional paid-in capital           1,839.6          1,475.4          1,679.0
Other reserves                      14,713.8         13,636.8         13,679.7
Items recognised directly in         4,505.7          2,133.4          3,586.4
equity
Cumulative translation                -213.6            123.5           -109.4
adjustments
Treasury stock                        -891.5           -445.8           -904.5
Net profit attributable to owners    1,708.9          1,625.2          2,867.7
of the company
Equity attributable to owners of    21,784.1         18,669.7         20,920.7
the company
Non-controlling interests                3.9              2.6              4.8
Non-current liabilities              2,233.2          2,386.5          2,236.0
Provisions for employee
retirement obligations and           1,177.8          1,488.7          1,242.7
related benefits
Provisions for liabilities and         194.0            169.5            181.7
charges
Deferred tax liabilities               818.0            674.2            764.7
Non-current borrowings and debt         43.4             54.1             46.9
Current liabilities                  6,816.4          7,176.5          6,369.5
Trade accounts payable               3,442.2          3,210.8          3,318.0
Provisions for liabilities and         518.7            552.9            552.3
charges
Other current liabilities            2,030.2          2,022.5          2,141.1
Income tax                             196.4            210.1            157.0
Current borrowings and debt            628.9          1,180.2            201.1
Total                               30,837.6         28,235.3         29,530.9

^(1)    The  balance sheets at June 30^th,  2012 and December 31^st,  2012 
have been restated to  reflect the change  in accounting policies  resulting 
from the amendment to IAS19 (revised).







IV.  Consolidated statements of changes in equity

                                                          Items                            Equity
                                            Retained recognised                      attributable
                  Common         Additional earnings   directly           Cumulative    to owners
                  shares   Share    paid-in  and net         in Treasury translation       of the Non-controlling    Total
€ millions   outstanding capital    capital   profit     equity    stock adjustments      company       interests   equity
At           594,386,423   120.6    1,271.4 14,807.2    2,054.7   -644.4        24.9     17,634.4             3.1 17,637.5
12.31.2011
Changes in
accounting
methods at                                           
01.01.2012        -     -         -     -10.9     -     -          -       -10.9              -     -10.9
At
01.01.2012   594,386,423   120.6    1,271.4 14,796.3    2,054.7   -644.4        24.9     17,623.5             3.1 17,626.6
^(*)
Consolidated                                                                                                             
net profit                                   2,867.7                                    2,867.7              2.7 2,870.4
for the                                                                                                                  
period
Financial
assets                                              1,640.9                       1,640.9                  1,640.9
available                                                                                                                
for sale
Cash flow                                              76.0                            76.0             0.1     76.1
hedges
Cumulative
translation                                                             -134.3       -134.3                  -134.3
adjustments
Change in
gains and
losses
recognised
directly in
equity and
items that
may be
reclassified                                                                                                             
to profit or                                                                                                      1,582.7
loss                                                    1,716.9               -134.3    1,582.6              0.1        
Actuarial
gains and                                            -185.2                          -185.2                  -185.2
losses
Change in
gains and
losses
recognised
directly in
equity and
items that
may not be
reclassified
to profit or
loss                                                     -185.2                            -185.2                   -185.2
Total net
profit and
gains and
losses
recognised                                                                                                               
directly in                                                                                                    4,267.9
equity                                       2,867.7    1,531.7               -134.3    4,265.1              2.8        
Capital        5,826,745     1.2      407.6                                               408.8              1.4      
increase                                                                                                           410.2 
Cancellation
of Treasury                                                                                   -                       - 
stock
Dividends
paid (not
paid on                                     -1,204.3                                     -1,204.3            -2.5 -1,206.8
Treasury
stock)
Share-based                                     86.4                                       86.4                    86.4 
payment
Net changes
in Treasury   -1,856,506                         2.4              -260.1                   -257.7                   -257.7
stock
Other                                           -1.1                                         -1.1                     -1.1
movements
At
12.31.2012   598,356,662   121.8    1,679.0 16,547.4    3,586.4   -904.5      -109.4     20,920.7             4.8 20,925.5
^(*)
Consolidated
net profit                                   1,708.9                                      1,708.9             1.7  1,710.6
for the
period
Financial
assets                                                932.8                          932.80                  932.80
available
for sale
Cash flow                                             -13.5                          -13.50                  -13.50
hedges
Cumulative
translation                                                             -104.2      -104.20                 -104.20
adjustments
Change in
gains and
losses
recognised
directly in
equity and
items that
may be
reclassified
to profit or
loss                                                      919.3               -104.2       815.10                   815.10
Actuarial                                                                                                  
gains and                                            -                            -                   - 
losses
Change in
gains and
losses
recognised
directly in
equity and
items that
may not be
reclassified
to profit or                                                                                                     
loss                                                     -                                -                    - 
Total net
profit and
gains and
losses
recognised
directly in
equity                                       1,708.9      919.3               -104.2      2,524.0             1.7  2,525.7
Capital        2,206,942     0.4      160.6                                                 161.0                    161.0
increase
Cancellation                                                                                                          
of Treasury                 -1.0              -498.2               499.2                      -                    - 
stock
Dividends
paid (not
paid on                                     -1,380.6                                     -1,380.6            -2.5 -1,383.1
Treasury
stock)
Share-based                                     44.7                                         44.7                     44.7
payment
Net changes
in Treasury   -3,829,135                         0.5              -486.2                   -485.7                   -485.7
stock
Other                                                                                                        -0.1     -0.1
movements
At           596,734,469   121.2    1,839.6 16,422.7    4,505.7   -891.5      -213.6     21,784.1             3.9 21,788.0
06.30.2013

^(*)    Taking into account the change in accounting policies resulting
from the amendment to IAS19 (revised).

V.  Changes in first half 2012

                                                          Items                            Equity
                                            Retained recognised                      attributable
                  Common         Additional earnings   directly           Cumulative    to owners
                  shares   Share    paid-in  and net         in Treasury translation       of the Non-controlling    Total
€ millions   outstanding capital    capital   profit     equity    stock adjustments      company       interests   equity
At           594,386,423   120.6    1,271.4 14,807.2    2,054.7   -644.4        24.9     17,634.4             3.1 17,637.5
12.31.2011
Changes in
accounting
methods at                                                                  
01.01.2012        -      -      -     -10.9     -     -       -       -10.9             -     -10.9
At
01.01.2012   594,386,423   120.6    1,271.4 14,796.3    2,054.7   -644.4        24.9     17,623.5             3.1 17,626.6
^(*)
Consolidated
net profit                                   1,625.2                                                       1.6 1,626.8
for the                                                                                 1,625.2                         
period
Financial
assets                                                341.3                                                  
available                                                                                 341.3                   341.3 
for sale
Cash flow                                                                                     5.2                      5.2
hedges                                                  5.2                                               
Cumulative
translation                                                                                                       
adjustments                                                               98.6       98.6                   98.6 
Change in
gains and
losses
recognised
directly in
equity and
items that
may be
reclassified
to profit or                                                                                                        
loss                                                      346.5                 98.6     445.1                   445.1 
Actuarial
gains and                                            -267.8                          -267.8                  -267.8
losses
Change in
gains and
losses
recognised
directly in
equity and
items that
may not be
reclassified
to profit or
loss                                                     -267.8                            -267.8                   -267.8
Total net
profit and
gains and
losses
recognised
directly in                                                                                                    1,804.1
equity                                       1,625.2       78.7                 98.6    1,802.5              1.6        
Capital                                                                                                             
increase       3,030,584     0.6      204.0                                              204.6                   204.6 
Cancellation                                                                               
of Treasury                                                                                 -                      
stock                                                                                                                - 
Dividends
paid (not
paid on                                     -1,204.3                                   -1,204.3             -2.5
Treasury                                                                                                          -1,206.8
stock)                                                                                                                   
Share-based                                     43.9                                                              
payment                                                                                   43.9                    43.9 
Net changes                                                                                  
in Treasury    2,637,446                         1.7               198.6                 200.3                        
stock                                                                                                              200.3 
Other
movements                                       -0.8                                       -0.8              0.4   -0.4 
At
06.30.2012 ^ 600,054,453   121.2    1,475.4 15,262.0    2,133.4   -445.8       123.5     18,669.7             2.6 18,672.3
(*)

^(*)    Taking into account the change in accounting policies resulting
from the amendment to IAS19 (revised).

VI.  Compared consolidated statements of cash flows

€ millions                      1^st half 2013  1^st half 2012            2012
Cash flows from operating
activities
Net profit attributable to             1,708.9         1,625.2         2,867.7
owners of the company
Non-controlling interests                  1.7             1.6             2.7
Elimination of expenses and
income with no impact on cash
flows:
· depreciation, amortisation             361.7           310.3           691.6
and provisions
· changes in deferred taxes                0.4           -14.0            17.3
· share-based payment                     44.7            43.9            86.4
(including free shares)
· capital gains and losses on             -2.3            -4.4            -4.3
disposals of assets
Gross cash flow                        2,115.1         1,962.6         3,661.4
Changes in working capital              -647.5          -711.2          -129.1
Net cash provided by operating                         1,251.4
activities (A)                         1,467.6                         3,532.3
Cash flows from investing
activities
Purchases of property, plant
and equipment and intangible            -524.4          -482.7          -955.0
assets
Disposals of property, plant
and equipment and intangible               5.4             1.9             7.3
assets
Changes in other financial
assets
(including investments in
non-consolidated companies)              -48.0             0.6           105.8
Effect of changes in the scope          -177.1          -178.3          -466.2
of consolidation
Net cash (used in) from                 -744.1          -658.5        -1,308.1
investing activities (B)
Cash flows from financing
activities
Dividends paid                         -1416.4        -1,236.0        -1,268.2
Capital increase of the parent           161.0           204.6           408.8
company
Capital increase of                                        1.4
subsidiaries                             -            - 
Disposal (acquisition) of               -485.7           200.3          -257.7
Treasury stock
Issuance (repayment) of                  455.7            45.6          -906.7
short-term loans
Issuance of long-term                                 
borrowings                               -          -             - 
Repayment of long-term                   -16.9            -7.2           -13.4
borrowings
Net cash (used in) from               -1,302.3          -792.7        -2,035.8
financing activities (C)
Net effect of changes in
exchange rates and fair value                             16.2
(D)                                        0.1                           -17.4
Change in cash and cash                 -578.7          -183.6           171.0
equivalents (A+B+C+D)
Cash and cash equivalents at           1,823.2         1,652.2         1,652.2
beginning of the year (E)
Cash and cash equivalents at
the end of the period                  1,244.5         1,468.6         1,823.2
(A+B+C+D+E)


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