LOREAL_Registration_Document_2017

4 2017 Consolidated Financial Statements* NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Data concerning all share option plans during fiscal years 2015, 2016 and 2017 are set out below:

31.12.2017

31.12.2016 Weighted average exercise price

31.12.2015 Weighted average exercise price

Weighted average exercise price

Number of options

Number of options

Number of options 3,798,051

Number of options not exercised at beginning of period

€77.04 5,933,374

€77.61 10,770,989

€75.28

Options granted s Options exercised s Options expired s

-

-

-

-1,509,576

€78.40 -2,080,123

€78.65 -4,808,115

€72.39

-54,700

-55,200

-29,500

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

2,233,775

€76.43 3,798,051

€77.04 5,933,374

€77.61

2,233,775

€76.43 3,798,051

€77.04 4,704,874

€76.16

expired options at end of period s

-

-

3,000

The weighted average share price was €181.49, €163.04 and €162.95 respectively for 2017, 2016 and 2015. The total charge recorded in 2016 and 2015 amounted to €1.6 million and €9.3 million respectively. No stock option plan expenses were recognised in 2017. Free shares b) The table below summarises data relating to the free share plan.

Grant date

Number of shares granted

Number of shares issued/alloted

Number of shares not fully vested

Share subscription plans

Share purchase plans 22.04.2011

Vesting date 23.04.2015 18.04.2016 27.04.2017 18.04.2018 23.04.2019 21.04.2020 21.04.2021

1,038,000 1,325,050 1,057,820 1,068,565

939,300

17.04.2012 26.04.2013

1,233,900

988,180

17.04.2014 22.04.2015 20.04.2016 20.04.2017

1,050

1,015,515

860,150 906,100 906,000

675 125

830,325 898,150 906,000

-

For the conditional grant of shares, the plan provides for a 4-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 20 April 2017, 20 April 2016, 22 April 2015 and 17 April 2014 plans: The calculation will be based on the arithmetic average of the performance in the:

for 50% of shares granted, the increase in comparable s Cosmetic revenues in relation to growth in revenues for a panel of competitors: the 2018, 2019 and 2020 fiscal years under the 2017 plan, • the 2017, 2018 and 2019 fiscal years under the 2016 plan, • the 2016, 2017 and 2018 fiscal years under the 2015 plan, • the 2015, 2016 and 2017 fiscal years under the 2014 plan; • for 50% of shares granted, the increase over the same s period in Group consolidated operating profit.

2018, 2019 and 2020 fiscal years under the 2017 plan; s 2017, 2018 and 2019 fiscal years under the 2016 plan; s 2016, 2017 and 2018 fiscal years under the 2015 plan; s 2015, 2016 and 2017 fiscal years under the 2014 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. A total of 936,300 shares, 1,230,850 shares and 986,220 shares were definitively granted, respectively, on 23 April 2015 under the 22 April 2011 plan, on 18 April 2016 under the 17 April 2012 plan and on 27 April 2017 under 26 April 2013 plan. At 31 December 2017, the performance conditions were deemed to have been met.

REGISTRATION DOCUMENT / L'ORÉAL 2017

246