2022 Universal Registration Document

Methodology used for calculating ratios

Pursuant to Article L. 22-10-9 of the French Commercial Code, for the calculation of average and median remuneration, the scope used is that of L’Oréal S.A., which comprises 9,703 employees as at 31 December 2022 (i.e. 64% of the workforce at L’Oréal France) of whom 7,178 are managers and sales representatives, 2,065 are technicians and supervisors and 460 employees and manual workers. This scope is representative of the various business lines of L’Oréal: Operations (plants and distribution centres), Sales, Marketing, Digital, Research, Support functions, etc.

This information is also provided for the France scope, grouping together L’Oréal S.A. with all its subsidiaries in France, i.e. 15,123 employees, of whom 9,682 are managers and sales representatives, 3,541 are technicians and supervisors and 1,900 are employees and manual workers.

For reasons of comparability, and in accordance with the recommendations of the AFEP, the number of employees

selected for the calculation of average and median remuneration corresponds to a full-time equivalent work force continuously present over 24 months, excluding corporate officers. Remuneration is calculated on the basis of all amounts paid and performance shares granted during the financial year in question.

The elements composing the executives’ remuneration used in the calculation are:

• the annual fixed remuneration paid in 2022 (on an annua lbasis);
• the annual variable remuneration paid in 2022 (on an annual basis); and
• the performance shares valued on the grant date in 2022in accordance with the IFRS applied for the preparation of the consolidated financial statements.

The elements composing employee remuneration used in the calculation are:

• annual fixed remuneration paid in 2022;