L'Oréal - 2018 Registration Document

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

increase the diversity of socioeconomic and cultural 3. origins in our teams. On top of these three priority issues, L’Oréal’s actions extend to the LGBTI community and to raising awareness of all forms of gender-based violence. The Group’s diversity and inclusion policy is also reflected outside the Company: L’Oréal takes the same approach to its suppliers, consumers, local communities, NGOs and associations dedicated to inclusion on each continent. To achieve its objectives, L’Oréal calls notably on an internal network of “Diversity Coordinators” ; , in all of its entities. These employees are the guarantors of the diversity and inclusion policy, which they adapt to their local context. L’Oréal was a founding member in 2004 of the first “Diversity Charter” in France, and is now a signatory of 19 charters (Morocco, Hong Kong, Baltic countries, Czech Republic, Hungary, Poland, Slovakia, France, Argentina, Mexico, United States, Austria, Belgium, Denmark, Germany, Italy, Netherlands, Portugal, Spain). In September 2018, L’Oréal welcomed members of the “Diversity Charter” network for the signature of a new version of the document signed by more than 3,800 companies and organisations based in France. The Group shares its achievements and progress in a new dedicated section on the loreal.com website, as well as on all local versions. Guaranteeing and achieving gender equality Achieving real gender equality, up to the highest levels of responsibility, is a key challenge for the Company, both to promote a culture of Inclusion and to increase L’Oréal’s ability to innovate. The Group therefore ensures that all jobs are accessible to women and men, both at the level of recruitment and with regard to career development possibilities. Special attention is given to pivotal periods such as parenthood (see section 3.3.2.4. “L’Oréal Share & Care”). Since 2007, L’Oréal has collaborated with INED (National Institute for Demographic Studies), which analyses the gender pay in the Company in all professional categories. The aim is to guarantee identical pay for people with the same level of skills and the same classification. Overall, the gender pay gap in France narrowed from 10% to 3% between 2007 and 2017, and has now been eliminated for workers and supervisors. The pay gap measurement approach is being rolled out in several subsidiaries: Germany, China, United States, India, Nordic countries (Denmark, Finland, Norway, Sweden), United Kingdom.

L’Oréal and equity At 31 December 2018, women account for: 69% of the total workforce; s 64% of executives; s 46% of expatriates in place; s 45% of Group key positions (1) ; s 69% of employees who were promoted; s

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66% of international brands are managed by women s 47% in positions of greater responsibility within L'Oréal s SA (2) ; 54% in positions of greater responsibility within the s Group (3) ; 31% of the Executive Committee members; s 46% of the members of the Board of Directors. s

COMPANIES UNITED TO END VIOLENCE AGAINST WOMEN

In November 2018, L’Oréal was the first company to join the One In Three Women network, the first European network of companies committed to fighting violence against women in the private sphere. One In Three Women is an initiative launched by Fondation Agir Contre l’Exclusion (FACE) and the Kering Foundation. It was launched on 9 November 2018 under the patronage of the Minister for Equality between Women and Men and the Fight Against Discrimination. Its aim is to create and test modules to combat violence against women and to support the employees concerned, through specialised NGOs. Very concrete actions are to be implemented, such as international research to measure the impact of domestic violence in companies, training to better understand these violences and its impact at work, awareness kits for companies (posters, useful numbers, first recommendations, etc.), and events to mobilise and raise awareness. L’Oréal France launched the #StOpE initiative against so-called “ordinary” sexism at work, together with AccorHotels and EY, in December 2018. This initiative brings together 30 companies and organisations that have signed a commitment under the patronage of the French Minister for Equality between Women and Men and the Fight Against Discrimination. These companies have committed to rolling out in 2019 at least one of the eight priority actions that were identified and selected.

; The Statutory Auditors have expressed a reasonable assurance with regard to this indicator. Group key positions: Positions that are identified as key for the Group and followed directly on an international level by the members of the HR Audit (1) Committee (approximately 1,200 positions).

These positions represent 10.8% of L'Oréal S.A. employees as at 31 December 2018. (2) These positions represent 8.2% of Group employees as at 31 December 2018. (3)

REGISTRATION DOCUMENT / L'ORÉAL 2018

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