L'Oréal - 2018 Registration Document

2 Corporate Governance

REMUNERATION OF THE EXECUTIVE OFFICERS

DIGITAL DEVELOPMENT CRITERIA

2018 RESULTS

Increase in sales achieved in e-commerce. s Partnerships and innovation s

€2.97 billion net sales, i.e. 11% of Group sales, up 40.6% on 2017. s Acquisition of Modiface, global leader in augmented reality in the beauty industry. Deployment of s 20 Modiface service technologies in 16 countries. Launch of first skin diagnosis based on Modiface artificial intelligence for Vichy (2 patents obtained s in collaboration with the R&I teams). Continuation of partnerships with Founders Factory, Partech and StationF: 2,500 start-up applicants, 70 projects run in partnership with brands, a minority investment through the BOLD investment fund in a StationF start-up: Sillages Paris. Attended the Las Vegas CES and Vivatech trade show in Paris. Transformation of marketing function to optimise Digital opportunities (11% of global beauty web s traffic, 29% of beauty traffic on Youtube, over 6 billion Group brand videos viewed, 80% of product content optimised for the digital platforms). Recruitment and training: over 2,000 digital experts recruited and 26,000 people trained as part of s the Upskilling programme (2015-2018). Move to the 2nd generation of digital skills tests (DMI) with the launch of the “CMI”. 80% of marketing teams took these tests and 7,800 applicants at the recruitment phase. Learning expeditions: Operations, Travel Retail and Marketing teams. At least 3 brands in the top 10 L2 Digital ranking in the key countries: USA, UK, France, Germany s and China. High retention rate for the Top 250. s “Simplicity” programme: promote new ways of working, managing and interacting to further s increase growth and improve the quality of life at work via a collaborative and cooperative approach. Training programme for 6,000 managers in 2018, i.e. a total of 9,300 managers trained in Simplicity since 2017. “Pulse” survey (internal employee opinion survey): improved results for 21 of the 31 questions s asked in 2017. L’Oréal is the only company in the world, among nearly 6,000, to have received three “A” ratings s from the Carbon Disclosure Project for the third consecutive year, i.e. , the highest score in three areas: the climate, sustainable water management and the fight against deforestation. Commitment to combat violence against women through signature of the European “One in three s women” charter. Attendance at forums and conferences which promote the value of the Company in society: s Tech for Good forum, Paris: took part in a round table discussion on “Equality and Diversity in the s new machine age” (May 2018) World Policy Conference in Rabat (October 2018), s The Fondation Agir Contre l’Exclusion (Action Against Exclusion Foundation - FACE), a private s foundation combating violence against women (November 2018) Diversity and Inclusion: L’Oréal moved up the TOP 100 of Bloomberg’s 2019 Gender-Equality Index. s The index promotes companies which are highly committed to professional equality. L’Oréal is in the Top 10 of the 2018 Thomson Reuters Diversity & Inclusion Index. Within the Company, presidency of the 10th edition of the Disability Awards: 65 participating countries, 5 projects received awards. Ethics: L’Oréal ranked N°1 worldwide in the Covalence EthicalQuote ethical reputation index and s was recognised for the ninth time as one of the world’s most ethical companies by the Ethisphere Institute. L’Oréal is one of the world’s 34 UN Global Compact LEAD companies, it won the Transparency Grand Prix for its Ethics Charter for the second time and received the Prix d’Excellence in the Ethical Governance and Ethical Leadership categories by the Chair of the Law and Business Ethics Masters at Cergy-Pontoise university. Ethics day on 11 October 2018: live webchat with Jean-Paul Agon open to all employees worldwide. 2018 RESULTS

Continuation of the Company’s digital transformation s

L2 Digital IQ ranking s

QUALITATIVE CRITERIA

Management

Image, Reputation, Dialogue with stakeholders

RATE OF ACHIEVEMENT OF TARGETS NON-FINANCIAL AND QUALITATIVE CRITERIA

95.0%

Attendance fees 2.5.4.3. At the Board meeting of 28 November 2014, Mr Jean-Paul Agon informed the members of the Board of Directors that he no longer wished, in his capacity as Chairman and Chief Executive Officer, to receive attendance fees. The Board of Directors took due note of the decision made by Mr Jean-Paul Agon for 2014 and the following years.

Award of performance shares (ACAs) 2.5.4.4. Within the scope of Articles L. 225-197-1 et seq. of the French Commercial Code and the authorisation of the Combined General meeting of 20 April 2016, taking into account Mr Jean-Paul Agon’s performances and the stronger share price, the Board meeting of 17 April 2018 decided to grant him 30,000 performance shares (ACAs – Conditional grants of shares).

REGISTRATION DOCUMENT / L'ORÉAL 2018

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