LEGAL NOTICES

This is a free translation into English of the 2014 L’Oréal Annual Report issued in the French language and is provided solely for the convenience of English–speaking readers. In case of discrepancy, the French version prevails.

Competitive positions and market share held by the group’s divisions and brands mentioned in this report are based on studies, panels and polls obtained from specialised organisations and companies, or, in the absence of comprehensive studies, are the result of estimates made by L’Oréal on the basis of available statistical data.

COPYRIGHT

In accordance with laws governing literary and artistic property rights or other similar rights, the reproduction or redistribution of the elements that make up the L'Oréal website, in whole or in part, is strictly prohibited.All of the brands cited herein are registered trademarks. L'Oréal is happy to welcome you to its website and to present its activities to the widest possible audience. The Group declines all responsibility for any difficulties encountered in accessing the site or for communication line failure.A L'Oréal subsidiary or agent is located in all countries mentioned in the L'Oréal Worldwide section. They can provide information about the products marketed in their respective countries and can indicate where you can find the product(s) you seek.

CREDITS

Mert Alas & Marcus Piggott for Lancôme, Ellen von Unwerth, L’Oréal, Jezperklausen / / Thinckstock, Julien Luttenbacher for L’Oréal Paris, Sam Tsao pour YSL Beauté, L’Oréal Paris, Richard Burbridge, Garnier, Charles Helleu, Kiehl’s, Patricia Schwoerer, Paola Kudacki, Kerastase, Alain Costa, La Roche Posay, SkinCeuticals, Maybelline New York, Kenneth Willardt, Thomas Gogny, Sixtine, Hervé Abbadie, Stéphane de Bourgies, Marcel Grubenmann, Leandro Bergamo, Si Kwik Faz, LWA/Dann Tardif/Blend Images/ Photononstop, Gettyimages, Claudius Hauzwaun, NYX, mG, NIELY, Décléor, Carita, Abaca , Patric Shaw, LaCompagny/Pascal Dolémieux, Rob Matthews, Gaston Guerra, Alex Smith, Peter Lindbergh, Fabien Sarazin, Urban Decay, YSL Beauté, Shu Uemura, Lancôme, Clarisonic, Eric Sauvage, Olivier Arnaud, Kwang-Ook Kim, Eric Mercier, Matthew Brookes,Thierry Gonzales, Jean-Baptiste Degez, Jean-Charles Recht, L’Oréal Professionnel, Alain Costa, Thibaut de Saint Chamas, Redken, Salon Centric, Styleseat, Vichy, Kettiger, Ana Shumilova, Adrian Bedoy / Corporate Creativity, Lothar Schmidt, Hazel Thompson, David Parfitt / The Body Shop, Leonardo Bergame, Axel Javier Alexander/ L’Oréal, Gil Le Fauconnier, Blackjack Agency/L’Oréal, Simon Nicol, Rolento, L’Oréal R&I, Archives L’Oréal/DR, Yamada Taro / Getty images , Zanskar/ Thinckstock, Norman Chan / Thinckstock, Master Graphic, Ju Huang Zong, Mundocom, Matteo L'Oréal R&I, I.Walter L'Oréal R&I, Cyril Abad /Agence Capa, Qiao Rongbing, Paco Santamaria, Stéphane Cardinale / People Avenue, Alexis Raimbault , Brainsonic, Goodnews, Stoyan Vassev, Nicolas Fagot pour Studio 9, Alain Buu, Terry Richardson, , L’Oréal/DR, up2u, Ghislain & Marie David de Lossy/Cultura / Photononstop, X.

Design and production

Publicis Consultants | Verbe

TERMS OF USE FOR THE SITE WWW.LOREAL-FINANCE.COM/ENG/ANNUAL-REPORT-2014

The Site has been developed for L’Oréal, a company with a capital of 112 246 077,80 euros, with its registered office located at 14 rue Royale – 75008 Paris, registered in the Commercial and Companies Registry of Paris under the number 632 012 100, acting for its Financial Communications Department telephone number: 01.47.56.70.00 (hereinafter the "Company" or "we").

Publication Director: Sophie Gasperment Hosting: BTFrance, registered office located at Immeuble Jean Monnet, 11 place des Vosges – Quartier Gambetta, 92400 Courbevoie La Défense 5, France CEDEX, registered in the Commercial and Companies Registry of Nanterre under the number 702 032 - Tel. +33 (0)1 46 67 28 00

1. INTELLECTUAL PROPERTY

The Site and the elements that comprise it (such as marks, images, text, videos, etc.) are protected by intellectual property rights. The development of this Site represents a significant investment and work in common on the part of our teams. For this reason, except as expressly stipulated herein, we have not granted you any right other than that of consulting the Site for your strictly personal and private use. All use, reproduction or representation of the Site (in whole or in part) or of the elements which comprise it, on any media whatsoever, for other purposes, including, but not limited to, commercial purposes, is not authorized. On an exceptional basis, we may expressly authorize you to reproduce and/or represent all or part of the Site, on certain media. Any request for authorization in this regard must be submitted in advance to the following e-mail address: [email protected].

2. USE OF THE SITE

In the first place, we would like to remind you that use of the Site implies that you have available the necessary hardware and software resources for use of the Internet. Furthermore, we would like to remind you that the Internet does not allow the guarantying of the security, availability and integrity of data transmissions, accordingly we cannot be held liable in the event of errors, omissions, deletions, delays, faults (including, but not limited to, by the actions of viruses), of the lines of communication, the hardware and the software which is not under our control or in the event of non-authorized use or possible degradation of the content published on this Site. Even though we try to keep the Site accessible at all times, we cannot guaranty you access in all circumstances. In fact, and in particular for reasons of maintenance, updating, or other reasons which are beyond our control, access to the Site may be interrupted.

We defend the values of toleration and of respect of the rights of others. This is the reason that this Site may not be used as a vehicle for racist, violent, xenophobic, malicious, obscene or illicit proposals. In using this Site, you agree not to:

• distribute, injurious, defamatory, non-authorized, malicious content, infringing on privacy or image rights, inciting violence, racial or ethnic hatred;

• use the Site for political, promotional or proselytizing purposes;

• publish promotional or advertising content;

• divert the Discussion Space from its intended purposes, including, but not limited to, using it as a dating service;

• distribute information or content capable of upsetting the sensibilities of the young;

• conduct illegal activities, including, but not limited to, infringing on the rights as to software, marks, photographs, images, text, video etc.

We would like to stress that you must hold all rights and/or authorizations with respect to any applicable content that you wish to publish on this Site. In this regard, we recommend not publishing content (in particular photographs) showing recent architectural items, advertising creations, images of clothing designs in which the mark may appear (initials, logos, color code of the brand, etc.). Finally, we note that content (including, but not limited to, photographs and videos) showing minors will not be accepted on this Site.

3. INFORMATION CONTAINED ON THE SITE

a. General provisions

We try to provide you with accurate and up to date information. Nevertheless, transmissions of data and information over the Internet not benefiting from absolute technical reliability, we cannot guaranty the accuracy of all of the data that is included on this Site. Furthermore, we would like to stress those inaccuracies and omissions may appear in the information available on this Site in particular through intrusion by third parties. Please inform us about any error or omission at the following e-mail address: [email protected]

b. Financial information provided on the site

Financial information provided on the Siteis delivered for information purposes only. Therefore, L'OREAL not incur any liability whatsoever for the use that the User makes / make of such information. No warranty, expressed or implied, is made as to their suitability for a particular purpose. In any case, L'OREAL reminds the user that the information provided on the Site shall not be considered a recommendation to invest in any manner whatsoever. As such, they cannot in any way be interpreted as canvassing from L'OREAL. Similarly, they do not constitute an offer to subscribe, purchase or exchange of shares and / or other listed or unlisted securities of L'OREAL. Therefore, for any transaction that would be done, it is highly recommended to first gather user and under his responsibility, any advice and / or any information likely to enlighten in its approach, with of a professional financial advice. Users are informed that the quotations displayed on the Site are in principle disseminated with a lag of thirty (30) seconds from the time of their issuance. Finally, it is clarified that the information, specifically share prices are provided by an external service provider in L'OREAL. Neither L'OREAL nor its information provider cannot be held responsible for errors or delays in the transmission of information and their possible consequences

c. Hypertext links

The hypertext links implemented on the Web Site may take your to Web sites published by third parties as to which we do not control the content. In consequence, and to the extent these hypertext links have been included on this Site in order to facilitate your navigation of the Internet, the consultation of such third party Web sites is entirely your choice and your exclusive liability. Furthermore, if you wish to create hypertext links to this Site, a prior request for authorization must be submitted to us at the following address: [email protected]

d. Cookies

Cookies are small files that are left on your computer during your navigation of a Web site (such as for example the pages consulted, the date and time of consultation, etc.) and which may be read during your visit to the same Web site. To benefit from all of the functionalities of the Site, it is better to set the browser to accept cookies. We would like to stress that the cookies do not permit us to identify you and the period for the conservation of the information recorded by the cookies on your computer is 6 months

4. PRIVACY AND PERSONAL DATA

We may come to collect personal data which relates to you, in particular when you: (i) register for a service; (ii) download Downloadable Content; (iii) use a Segment and/or a diagnostic tool; (iv) register for a game/competition (v) send us an e-mail; (v) respond to a poll or study. This personal data will be the subject of automatic processing and may be used in three different ways:

• Statistical studies: we compile and study your personal data in order to define your profile and better adapt our services to your expectations. These statistical studies are strictly confidential;

• Monitoring of the customer relationship: if you send us a message, the data is kept and used to send a response to your request and to ensure its monitoring

• Provision of services: sending of newsletters, access to certain counseling spaces, etc.

• Furthermore, and if you have given your authorization by checking the box for such purpose, we may come to transfer your data to our commercial partners;

In conformity with the provisions of data privacy laws, you have a right to disclosure, correction, addition and deletion for the data that relates to you. To exercise this right, it suffices to send us an e-mail with proof of your identity to the following address: [email protected]

5. MODIFICATION OF THE SITE AND AMENDMENT OF THE TERMS OF USE

We may come to modify the content and information included on this Site as well to amend these Terms of Use, including, but not limited to, in order to comply with applicable new legislation and/or regulations and/or to improve the Site. Any modification and/or amendment shall be integrated into these Terms of Use.

6. APPLICABLE LAW

The present Terms of use are subject to French law

INFORMATION ON COOKIES

WHAT ARE COOKIES?

Cookies are small text files stored on your device (computer, tablet or mobile) when you are on the Internet, including on L’Oreal Group’s websites.We mainly use these Cookies on our sites in order to make your browsing more pleasant and to improve the use and the functionality of them; for instance, to recognize you on your next login and to offer you content tailored to your expectations and your interests. We also use these files to perform traffic statistics and to determine how you discovered our sites.

WHICH COOKIES DO WE USE?

Depending on your device, we set up Cookies in particular to: • identify you and learn more about you to offer you a personalized browsing,
• ensure a secure browsing and fight against fraud,
• offer you content related to your interests,
• suggest commercial offers taking into account in particular your preferences and your latest purchases.

HOW TO SET UP COOKIES THROUGH MY INTERNET BROWSER?

The settings from the Internet browsers are usually programmed by default to accept Cookies, but you can easily adjust it by changing the settings of your browser.
However, if you choose to disable the Cookies on your browser, you might not be able to benefit from all the functionalities offered by our websites.
For more information on the setting of Cookies, please consult the following links:
http://www.cnil.fr/vos-libertes/vos-traces/les-cookies/ (in French) or http://www.aboutcookies.org/ (in English);
For Internet Explorer™: http://windows.microsoft.com/fr-FR/windows-vista/Block-or-allow-cookies,
For Safari™: http://support.apple.com/kb/ht1677?viewlocale=fr_FR,
For Chrome™: https://support.google.com/chrome/answer/95647?hl=fr,
For Firefox™ : https://support.mozilla.org/en-US/kb/enable-and-disable-cookies-website-preferences,
For Opera™ : http://help.opera.com/Windows/10.20/fr/cookies.html.

ARE WE WELCOMING COOKIES FROM THIRD-PARTIES ?

Cookies from third-party websites may be stored on your device and are aimed to personalize and/or improve the content (including advertising) which may be offered to you during your navigation. Depending on the supports, several Cookies of third-party may be stored, including: Content of Social Networks: we may publish on our supports content from social networks. Thus, by consulting this content on our supports, a Cookie from this social network may be stored on your device. We invite you to read the Cookie Policy of these social networks for more information. Flash: Flash Cookies are files stored by the software Flash. This tool is often set up as an extension of the Internet browsers in order to display dynamic objects, as animated graphics or video sequences. Thus Flash Cookies may be installed since the use of this application. We invite you to read the Cookie Policy on the site www.adobe.com

DO WE PUT COOKIES ON THIRD-PARTY SUPPORT?

We may put our Cookies on websites of our partners broadcasting advertisements for our brands and/or products.These Cookies are mainly used to present you appropriate content, corresponding to your interests, and to evaluate the consultation of our content (including advertising).

WHICH COOKIES ARE SET UP ON THIS SITE?

At 10/7/2014*, the following Cookies are used on this Site:

•STATUS :Working.
•NAME OF THE COOKIE:Identity.
•PURPOSE: Identification.
•NATURE:Functional (Mandatory).
•DESCRIPTION: Identification of the visitor when he/she logs in.

•STATUS: Working.
• NAME OF THE COOKIE: Google Analytics.
• PURPOSE: Attendance and use of the site.
• NATURE:Performance (Optional).
• DESCRIPTION:A unique identifier is granted to each visitor through the Cookie __utma. Thus, the same visitor shall not be recorded twice.

•STATUS: Working.
• NAME OF THE COOKIE: Doubleclick.net.
•PURPOSE: Evaluation of the advertising impact.
• NATURE: Advertising (Optional).
• DESCRIPTION: This Cookie is used to understand how Internet users react to our advertising campaigns. It allows us to understand and evaluate the clicks on our advertisements to help us improve our offers.

* the names of the Cookies used are updated at least once a year, on January 1 of each year. As a reminder, by disabling Cookies through your Internet browser, you will disable all the Cookies, including those required for the good functioning of our websites.