The letter to shareholders - N°84 Spring 2023

“Dear Shareholders,

L’Oréal continues on the path to success with an ever-stronger ambition, while acting with the sense of responsibility of a global leader. Dual financial and social excellence will always be at the heart of our business model.

We have set ourselves the ultimate goal of creating value that benefits everyone.

We create value for you, our shareholders. The resilience and outperformance of your Company are the perfect demonstration of its robust, virtuous and value creating business model. The quality of our results puts us in a position to offer a dividend of €6 per share, representing a significant increase of +25%. And the preferential dividend with a 10% loyalty bonus⁽¹⁾, at €6.60, is recognition of your long-term loyalty.

I also know that you attach just as much importance to the quality of our relationship with you, our shareholders. I am delighted to welcome the more than 30,000 new individual shareholders in France who joined us in 2022.

We create value thanks to our 87,400 employees. And for them.Their determination to go that extra mile, their creativity and their spirit of solidarity were, once again, exemplary last year. They have my utmost admiration.

It was only natural that we share L’Oréal’s performance with them. In 2022, we launched a third employee share ownership plan. More than a third of our employees around the world and two-thirds of employees in France are Group shareholders. That is outstanding proof of their attachment to L’Oréal. And it is yet another means of aligning their interests with yours.

We also need to create values. Entrepreneurial spirit, courage, respect, transparency, ethics and responsibility are the values underpinning our long-term future. The culture that binds us is a unique, fundamental asset that no other company could ever copy.

We create value for our ecosystem. L’Oréal is a global company that thrives on its diversity. But our heart beats in France and always will. We have nearly 15,000 employees in the country. Our French plants handle more than 26% of our worldwide production, even though France represents 7% of our sales. We have made France a land of the Group’s scientific and technological excellence, with 2,700 researchers and nearly 70% of our R&D investments.

We create value for our environment and society. Sustainable development has long been a priority for our governance, a pillar of our business strategy and a results-based commitment on the part of each and every employee.

Alongside the many initiatives undertaken by your Company, the Fondation L’Oréal has also stepped up its efforts. This June marks the 25^th anniversary of the For Women in Science programme, which has provided human and financial support to nearly 4,100 female scientists in more than 110 countries.

With your support, L’Oréal is more than ever driven by tremendous energy to continue its beautiful Adventure.”