L'Oréal - 2018 Registration Document

2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Data concerning all share option plans during financial years 2016, 2017 and 2018 are set out below:

31.12.2018

31.12.2017 Weighted average exercise price

31.12.2016 Weighted average exercise price

Weighted average exercise price

Number of options

Number of options

Number of options

Number of options not exercised at beginning of period

2,233,775

€76.43 3,798,051

€77.04 5,933,374

€77.61

Options granted s Options exercised s Options expired s

-

-

-

-919,474

€73.32 -1,509,576

€78.40 -2,080,123

€78.65

-500

-54,700

-55,200

Number of options not exercised at end of period of which: number of exercisable options at end of period s

1,313,801

€78.60 2,233,775

€76.43 3,798,051

€77.04

1,313,801

€78.60 2,233,775

€76.43 3,798,051

€77.04

expired options at end of period s

-

-

-

The weighted average share price was €197.19, €181.49 and €163.04 respectively for 2018, 2017 and 2016. The total expense recognised in 2016 was €1.6 million. No stock option plan expenses were recognised in 2018 or 2017. Free shares b) The table below summarises the data on free share plans vesting after 1 January 2016.

4

Grant date

Number of shares granted

Number of shares issued/allotted

Number of shares not definitively vested

Stock subscription plans

Stock purchase plans 17.04.2012

Vesting date 18.04.2016 27.04.2017 18.04.2018 23.04.2019 21.04.2020 21.04.2021 18.04.2022

1,325,050 1,057,820 1,068,565

1,233,900

26.04.2013

988,180 994,815

17.04.2014 22.04.2015 20.04.2016 20.04.2017 17.04.2018

-

860,150 906,100 906,000 931,000

675 125

809,150 874,225 888,050 927,700

- -

For the conditional grant of shares, the plan provides for a four-year vesting period after which vesting is effective and final, subject to meeting the conditions of the plan. After this vesting period, a 2-year mandatory holding period applies for French residents, for plans prior to 1 January 2016, during which the shares cannot be sold. The performance conditions concern for the 17 April 2018, 20 April 2017, 20 April 2016 and 22 April 2015 plans: The calculation will be based on the arithmetic average of the performance in the:

2019, 2020 and 2021 financial years under the 2018 plan; s 2018, 2019 and 2020 financial years under the 2017 plan; s 2017, 2018 and 2019 financial years under the 2016 plan; s 2016, 2017 and 2018 financial years under the 2015 plan; s and will use a predefined allocation scale based on the performance percentage achieved. No performance condition applies below a block of 200 shares.

for 50% of shares granted, the increase in comparable s Cosmetic revenues in relation to growth in revenues for a panel of competitors: 2019, 2020 and 2021 financial years under the 2018 plan, • the 2018, 2019 and 2020 financial years under the 2017 • plan, 2017, 2018 and 2019 financial years under the 2016 plan, • 2016, 2017 and 2018 financial years under the 2015 plan; • for 50% of shares granted, the increase over the same s period in the Group’s consolidated operating profit.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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