L'Oréal - 2018 Registration Document

1 Presentation of the Group Integrated report

GOOD GROWTH MOMENTUM FOR SHARED, LASTING DEVELOPMENT

Significant, recent events and prospects 1.3.1.4. Significant events of 2018

On 21 September, L’Oréal announced an investment in the s fund Partech Africa. This investment is an addition to the Group’s previous investments in venture capital funds (Partech International Ventures, Founders Factory, Raise Investissement). On 24 September, L’Oréal was recognised as Global s Compact Lead. This award, made by the United Nations Global Compact, rewards the Group’s ongoing commitment to the world’s largest corporate sustainability initiative. On 4 October, L’Oréal received the First Prize for Europe s from Equileap as the top gender-balanced company. This award recognises the Group’s efforts to promote gender equality all over the world. On 19 November 2018, the L’Oréal Group announced two s important changes within its Executive Committee: Christophe Babule is appointed Executive Vice-President Chief Financial Officer, and will succeed Christian Mulliez as of 8 February 2019. Cyril Chapuy was appointed President L’Oréal Luxe, as of 1 January 2019, reporting to Nicolas Hieronimus, Deputy CEO in charge of Divisions. On 5 December 2018, L’Oréal announced the launch of s BOLD, Business Opportunities for L’Oréal Development, a corporate venture capital fund that will take minority stakes in innovative startups with high growth potential. The fund will invest in new business models in marketing, Research & Innovation, digital, retail, communication, supply chain and packaging. On 20 December 2018, Covalence EthicalQuote ranked s L’Oréal number 1 worldwide across all industries in its reputation index. This ranking of the world’s largest listed companies reflects stakeholder and media perceptions, and companies’ communication on environmental, social, governance and human rights issues. On 22 January 2019, L’Oréal was recognised for the third s year in a row as a global leader in corporate sustainability by non-profit organisation CDP, with three ‘A’ scores for the management of climate change, water security and forests. Significant events that have occurred since the beginning of 2019 No significant event has occurred since the beginning of 2019. 2019 prospects In an economic context that remains volatile and uncertain, we are confident, thanks to our innovations, powerful brands, digital excellence and in particular our outstanding teams all over the world, that we can pursue our corporate social responsibility commitments, outperform the beauty market in 2019 and achieve another year of growth in both sales and profits.

On 16 March, L’Oréal announced the acquisition of the s Canadian company ModiFace, an internationally recognised leader in augmented reality and artificial intelligence applied to the beauty industry. On 22 March, L’Oréal and Giorgio Armani announced the s signing of an agreement to renew their licence until 2050. On 17 April, the L’Oréal Board of Directors decided, in s application of the authorisation approved by the Annual General Meeting of 20 April 2017, to buy back L’Oréal shares for a maximum amount of €500 million in the second quarter of 2018. 2,497,814 shares were bought back from 23 April to 29 May 2018. They were cancelled by the Board of Directors on 26 July 2018. On 2 May, L’Oréal announced the acquisition of 100% of s Nanda Co. Ltd., the Korean lifestyle makeup company founded by Mrs Kim So-Hee in Seoul in 2004. The acquisition was finalised on 20 June 2018. On 15 May, L’Oréal announced the launch of its first s Employee Share Ownership Plan, rolled out in 52 countries, representing a maximum of 500,000 shares. The scheme has proven extremely successful, and gave rise to a capital increase on 24 July 2018. On 25 May, L’Oréal finalised the acquisition of professional s hair colour brand Pulp Riot, which, under the leadership of its two founders David and Alexis Thurston, has been creating industry-leading content and using social media to inspire stylists. On 28 May, L’Oréal and Valentino announced the s signature of a long-term licence agreement for the creation, development and distribution of fine fragrances and luxury beauty products under the Valentino brand. On 13 June, L’Oréal acquired a stake of 49% in the Tunisian s company LiPP-Distribution which distributes the Group’s brands in Tunisia. On 1 August, L’Oréal announced the project of acquisition s for Société des Thermes de La Roche-Posay. This acquisition sustains and reinforces the dermatological positioning of the La Roche-Posay brand. On 1 August, L’Oréal announced the signing of an s agreement to acquire the German beauty company Logocos Naturkosmetik AG, a pioneer in natural and organic cosmetics with brands including Logona and Sante. The acquisition was finalised on 17 October.

REGISTRATION DOCUMENT / L'ORÉAL 2018

36