2023 universal registration document

6.5. Notes to the Financial Statements of L’Oréal S. A.

NOTES CONTENTS

Highlights of the financial year

Reorganisation

On 9 February 2023, L’Oréal’s Board of Directors approved two proposed partial asset contributions, which were set to take place on 1 July 2023.

These transactions consisted of:

• a contribution to the company L’Oréal France comprising the complete and autonomous branches of business activity of Affaires Marchés France (marketing activity on the French market for products from the Group’s four Divisions – Consumer Products France and Professional Products France, Luxe France and Dermatological Beauty France), Domaines d’Excellence (services activity for subsidiaries based in France, carried out by central services and support functions), and all shares comprising the capital of Luxury of Retail, a wholly owned subsidiary of L’Oréal;
• a contribution, to the L’Oréal International Distribution company, of the complete and autonomous branch of the International Distribution activity (operating the brands of the four Divisions in countries where the brands are not marketed by the Company’s subsidiaries, as well as globally driving the distribution network).

Acquisition/disposal

In April 2023, the Group announced that it had signed an agreement with Natura & Co to acquire Aésop, the Australian luxury cosmetics brand, for €2.4 billion. The acquisition by the subsidiary L’Oréal Australia, wholly owned by L’Oréal S.A., was finalised in August 2023. It was financed in the amount of €0.4 billion by cash held by the Group and a bond issued in May 2023 in the amount of €2 billion in two tranches (see note 18).

Reorganisations of a legal nature were carried out following this acquisition. In November 2023, L’Oréal S.A. acquired 100% of Aésop UK shares from Eméis Holding PTY Ltd for €968.2 million.

In September 2023, L’Oréal sold the Sanoflore brand to Ekkio Capital, a French investment fund specialising in SMEs in the healthcare and beauty sector. The impact of this disposal on L’Oréal S.A.’s income statement was not significant.

Other events

In November 2023, the Group issued a further bond for €1.5 billion in two tranches (see note 18).