L'Oréal - 2018 Registration Document

3 L’Oréal’s corporate social, environmental and societal responsibility PERFOR MANCE INDICATORS AND RESULTS

permanent disability: for all employees, a fraction, s depending on the extent of the disability, ranging up to 90% of their gross income, limited to 8 times the French annual social security ceiling, net of all deductions; Death: s for all employees, the payment of a Lump Sum Death • Benefit, increased depending on the employee’s family status. The amount of this Benefit is doubled in the event of accidental death, for the employees affiliated with the AGIRC supplementary • pension scheme, the payment of a Spouse Pension to the surviving spouse. This ensures that the spouse has an income similar to the Surviving Spouse Pension that would have been paid by AGIRC if death had occurred at the age of 65, for all employees, the payment of an Education Annuity • to each dependent child, according to an age-based schedule. The total amount of the Lump Sum Equivalent for these guarantees may not exceed €2.3 million per event. Minimum guaranteed lump sum death benefits L’Oréal has established an additional guaranteed Lump Sum Death Benefit that supplements, where applicable, for all employees, the Lump Sum Death Benefit in an amount equal to three years’ average income. The total amount of the risk capital needed to fund the Surviving Spouse Pension and Education Annuity, the Lump Sum Death Benefits and the minimum guaranteed Lump Sum Death Benefit is capped. Healthcare expenses The healthcare scheme is compulsory for all the employees of L’Oréal and its French subsidiaries. Employees have the option of including their family members in these schemes. Contributions are generally individual. The contribution by the employee is partly financed by the Company. Promoting diversity and inclusion 3.3.2.6. L’Oréal’s commitment to Beauty for All requires the Group to have the most diverse teams, reflecting the diversity of the world and its consumers. As a structuring element of corporate culture and a driver of performance and innovation, diversity and inclusion are naturally central to the Group’s strategy and its HR policy. L’Oréal shapes and guarantees working environments where everyone can feel valued and fulfilled, and where everyone can develop, regardless of their social, cultural or religious background, their gender, their sexual orientation, their age or any disability. L’Oréal has set three objectives to continue to make progress on diversity and inclusion: strengthen gender equality and ensure that women 1. represent 50% at all levels and functions; accelerate the inclusion of people with disabilities, 2. internally, with a minimum goal in all countries. The Group also adopts an inclusive approach towards consumers, suppliers and all stakeholders;

the calculation base, plus 0.5% per year for the first 20 years, then 1% per year for the following 20 years, nor exceed the average of the fixed part of the salaries. Around 120 Senior managers (active or retired) are eligible for this scheme subject to the requirement, for those in active employment, that they fulfil all the conditions after having ended their career with the Company. Collective Retirement Savings plan (PERCO) Since 2003, L’Oréal has proposed that employees make savings with a view to their retirement within the scope of the PERCO. The additional employer contribution for the mandatory profit sharing amount invested in the PERCO is 100% up to a gross amount of €1,000 invested, and 50% beyond that amount. Each year, employees may also invest up to 10 days of paid leave in the PERCO, with an additional employer contribution of 20%. Pre-retirement arrangements L’Oréal pays close attention to its employees’ retirement conditions. The existing arrangements are, in particular: early retirement leave (“ congé de fin de carrière ”, CFC): this s early retirement arrangement consists of exempting employees from the requirement to perform their activities, while maintaining their remuneration (up to a limit of €10,000 gross/month) as well as profit sharing, incentives and paid leave; retirement compensation (“ indemnité de départ à la s retraite ”, IDR): the scale set by collective agreement is more favourable than that of the National Collective Agreement for Chemical Industries. Thus, when he/she retires, an employee may benefit from retirement indemnities ranging from 2 months’ salary for 5 years’ service to eight months’ salary for 40 years of service. In order to increase the special leave prior to retirement, the employee may opt to convert his/her retirement indemnities into time, or he/she may choose to receive payment of the retirement indemnities which will be made at the time when he/she leaves the Company. These commitments are guaranteed by external financial cover aimed at gradually building up funds derived from premiums paid to external organisations. Employee Benefit schemes in France In addition to the compulsory guarantees provided for by the collective bargaining agreements, L’Oréal has set up, in France, under an agreement, an Employee Benefit scheme providing additional collective guarantees to its employees. All these guarantees are based on the gross income up to eight times the French annual social security ceiling, except for the Education Annuity which is limited to up to four times the ceiling. They are generally financed on Brackets A, B and C of income as defined by the French social security, except for the Education Annuity which is based on Brackets A and B, and the Surviving Spouse Pension which is based on Brackets B and C. This Employee Benefit scheme provides guarantees in the event of: temporary disability: for all employees, 90% of their gross s income limited to 8 times the French annual social security ceiling, net of all deductions, after the first 90 days off work

REGISTRATION DOCUMENT / L'ORÉAL 2018

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