LOREAL_Registration_Document_2017

2 Corporate governance *

REMUNERATION OF THE EXECUTIVE OFFICERS

DIGITAL DEVELOPMENT CRITERIA

2017 RESULTS

Increase in sales achieved in e-commerce s

3rd country in the Group in terms of sales (€2.1 billion representing +34%/2016) s Implementation of a digital performance management tool in the 30 first countries of the Group. Partnerships with start-ups: Founders Factory Partech, incubator at Station F, Modiface and s Perfect Corp. Development of connected objects: launch of UV Sense, the first portable, battery-free electronic UV sensor. Development of the Hair Color 3D try on application launched by L’Oréal Professional Over 15,500 people trained and assisted (2015-2017), via daily e-learning practices (more than s 190,000 modules viewed), collaborative work sessions, reverse mentoring. Learning expedition by the Executive Committee to Seattle in November 2017. Digital skills test (DM1) used for all external and internal recruitment to develop personalised training plans. L2 Digital IQ 2017 ranking: at least 3 Group brands in the Top 10 Beauty in China, the United s States, Germany, the United Kingdom and France. 1 billion visitors to all of the Group's websites and 2.2 billion videos viewed on the Internet. 241 million L’Oréal brand social network followers (+30%/2016). "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 3,000 managers in 2017. "Pulse" survey (internal employee opinion survey): improved results for 25 of the 28 questions s asked in 2016. Personal involvement in the Sharing Beauty With All programme and the L’Oréal Share & Care s programme, internally and with regard to the international experts and organisations involved with these projects. L’Oréal came first in the Newsweek 2017 Global 500 Green Rankings which assess the s performance of the largest groups in terms of Sustainable Development. L’Oréal is one of only two companies in the world, among nearly 3,000, to have received three s times a "A" rating from the Carbon Disclosure Project for the second year in a row, i.e., the highest score in three areas: the climate, sustainable water management and the fight against deforestation. Attendance at forums and conferences which promote the value of the Company in society: s Global Positive Forum (Paris, 1 September 2017 – how to build a better world for future s generations) CDP Europe Awards (Brussels, 20 November 2017 – on the role of companies in the fight s against climate change) International Economic Forum of the Americas (Paris, OECD, 7 December 2017 - s on globalisation and inequality) Diversity: L’Oréal entered the TOP 100 of Bloomberg's 2018 Gender-Equality Index. The index s promotes companies which are highly committed to professional equality. The Group received the maximum score in the "Products" and "Commitment to Communities" categories of the index. Ethics: L’Oréal was once again recognised in 2017 by Ethisphere as one of the World’s Most s Ethical Companies, and has been part of the United Nations Global Compact 100 stock index since its creation. Ethics Day, 13 October 2016: live webchat with Mr Jean-Paul Agon open to all employees worldwide.In 2017, L’Oréal received Labrador's Transparency Grand Prix for its code of Ethics. 2017 RESULTS High retention rate for the Top 250. s Changes in the Executive Committee. s

Partnerships and innovation s

Continuation of the Company’s digital s transformation: Training: s Continuation of the recruitment policy s for business segment experts

L2 Digital IQ ranking s

QUALITATIVE CRITERIA

Management

Image, Reputation, Dialogue with stakeholders.

RATE OF ACHIEVEMENT OF TARGETS EXTRA-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, the Board of Directors decided on 20 April 2017, taking into account Mr Jean-Paul Agon’s performances, to grant him 32,000 performance shares (ACAs – Conditional grants of shares).

REGISTRATION DOCUMENT / L'ORÉAL 2017

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