2023 universal registration document

FINANCIAL TARGETS 2023 (60% OF TOTAL ANNUAL VARIABLE REMUNERATION)

Financial criteria	Weighting	2023 Results	Payment rate	Board appraisal
Like-for-like sales compared to budgetBudget not provided for reasons of confidentiality.	Like-for-like sales compared to budget Budget not provided for reasons of confidentiality.Weighting 15%	Like-for-like sales compared to budget Budget not provided for reasons of confidentiality.2023 Results €41,182.5 million	Like-for-like sales compared to budget Budget not provided for reasons of confidentiality.Payment rate115%	Like-for-like sales compared to budget Budget not provided for reasons of confidentiality.Board appraisal Performance above budget
Sales growth differential compared to main competitorsPanel of competitors: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Kenvue (formerly Johnson & Johnson), Henkel, LVMH, Kao and Coty.	Sales growth differential compared to main competitors Panel of competitors: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Kenvue (formerly Johnson & Johnson), Henkel, LVMH, Kao and Coty.Weighting 15%	Sales growth differential compared to main competitors Panel of competitors: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Kenvue (formerly Johnson & Johnson), Henkel, LVMH, Kao and Coty.2023 Results +5.8 points	Sales growth differential compared to main competitors Panel of competitors: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Kenvue (formerly Johnson & Johnson), Henkel, LVMH, Kao and Coty.Payment rate120%	Sales growth differential compared to main competitors Panel of competitors: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Kenvue (formerly Johnson & Johnson), Henkel, LVMH, Kao and Coty.Board appraisal Maximum objective reached
Operating profit as compared to the budgetBudget not provided for reasons of confidentiality.	Operating profit as compared to the budget Budget not provided for reasons of confidentiality.Weighting 10%	Operating profit as compared to the budget Budget not provided for reasons of confidentiality.2023 Results €8,143.3 million	Operating profit as compared to the budget Budget not provided for reasons of confidentiality.Payment rate110%	Operating profit as compared to the budget Budget not provided for reasons of confidentiality.Board appraisal Performance above budget
Earnings per shareDiluted share attributable to owners of the company per share excluding non-recurring items. as compared to the budgetBudget not provided for reasons of confidentiality.	Earnings per share Diluted share attributable to owners of the company per share excluding non-recurring items. as compared to the budget Budget not provided for reasons of confidentiality.Weighting 10%	Earnings per share Diluted share attributable to owners of the company per share excluding non-recurring items. as compared to the budget Budget not provided for reasons of confidentiality.2023 Results €12.08	Earnings per share Diluted share attributable to owners of the company per share excluding non-recurring items. as compared to the budget Budget not provided for reasons of confidentiality.Payment rate110%	Earnings per share Diluted share attributable to owners of the company per share excluding non-recurring items. as compared to the budget Budget not provided for reasons of confidentiality.Board appraisal Performance above budget
Cash flowCumulative operating cash flow = Cash flow generated by operating activities – purchases of tangible and intangible assets. as compared to the budget	Cash flow Cumulative operating cash flow = Cash flow generated by operating activities – purchases of tangible and intangible assets. as compared to the budget Weighting 10%	Cash flow Cumulative operating cash flow = Cash flow generated by operating activities – purchases of tangible and intangible assets. as compared to the budget 2023 Results €6,116 million	Cash flow Cumulative operating cash flow = Cash flow generated by operating activities – purchases of tangible and intangible assets. as compared to the budget Payment rate100%	Cash flow Cumulative operating cash flow = Cash flow generated by operating activities – purchases of tangible and intangible assets. as compared to the budget Board appraisal Performance in line with objective.
RATE OF ACHIEVEMENT OF 2023 FINANCIAL TARGETS	RATE OF ACHIEVEMENT OF 2023 FINANCIAL TARGETSWeighting	RATE OF ACHIEVEMENT OF 2023 FINANCIAL TARGETS2023 Results	RATE OF ACHIEVEMENT OF 2023 FINANCIAL TARGETSPayment rate112.1%	RATE OF ACHIEVEMENT OF 2023 FINANCIAL TARGETSBoard appraisal

Budget not provided for reasons of confidentiality.
Panel of competitors: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, Kenvue (formerly Johnson & Johnson), Henkel, LVMH, Kao and Coty.
Diluted share attributable to owners of the company per share excluding non-recurring items.
Cumulative operating cash flow = Cash flow generated by operating activities – purchases of tangible and intangible assets.

2023 NON-FINANCIAL AND QUALITATIVE TARGETS (40% OF THE TOTAL ANNUAL VARIABLE REMUNERATION)

Non-financial and qualitative criteria	Weighting	2023 performance indicators	Payment rate	Board appraisal
CSR criteria: L’Oréal for the Future programme	CSR criteria: L’Oréal for the Future programmeWeighting 10%	CSR criteria: L’Oréal for the Future programme2023 performance indicators See indicators page 115	CSR criteria: L’Oréal for the Future programmePayment rate100%	CSR criteria: L’Oréal for the Future programmeBoard appraisal Performance in line with the programme’s trajectory.
Human Resources criteria	Human Resources criteriaWeighting 7.5%	Human Resources criteria2023 performance indicators See indicators page 115	Human Resources criteriaPayment rate110%	Human Resources criteriaBoard appraisal Outperformance.
Digital development criteria	Digital development criteriaWeighting 7.5%	Digital development criteria2023 performance indicators See indicators page 116	Digital development criteriaPayment rate120%	Digital development criteriaBoard appraisal Outperformance. Maximum reached.
Qualitative criteria: Management	Qualitative criteria: ManagementWeighting 7.5%	Qualitative criteria: Management2023 performance indicators See evaluation page 117	Qualitative criteria: ManagementPayment rate120%	Qualitative criteria: ManagementBoard appraisal Outperformance. Maximum reached.
Qualitative criteria: Image, Company reputation, Relations with stakeholders	Qualitative criteria: Image, Company reputation, Relations with stakeholdersWeighting 7.5%	Qualitative criteria: Image, Company reputation, Relations with stakeholders2023 performance indicators See evaluation page 117	Qualitative criteria: Image, Company reputation, Relations with stakeholdersPayment rate120%	Qualitative criteria: Image, Company reputation, Relations with stakeholdersBoard appraisal Outperformance. Maximum reached.
RATE OF ACHIEVEMENT OF 2023 NON-FINANCIAL AND QUALITATIVE TARGETS	RATE OF ACHIEVEMENT OF 2023 NON-FINANCIAL AND QUALITATIVE TARGETSWeighting	RATE OF ACHIEVEMENT OF 2023 NON-FINANCIAL AND QUALITATIVE TARGETS2023 performance indicators	RATE OF ACHIEVEMENT OF 2023 NON-FINANCIAL AND QUALITATIVE TARGETSPayment rate113.1%	RATE OF ACHIEVEMENT OF 2023 NON-FINANCIAL AND QUALITATIVE TARGETSBoard appraisal