2022 ANNUAL REPORT – THE ESSENTIALS OUR PURPOSE The desire for beauty has existed since the beginning of humanity. It’s a universal aspiration which crosses time, countries, and cultures. Beauty is a powerful force that moves us. We know that beauty is more than just looking good. Beauty gives us confidence in who we are, in who we want to be, and in our relationships with others. No. 1 For over a century we have been dedicated to one sole vocation: creating beauty. We remain true to the pioneering spirit of our founder and enjoy the unwavering support of his family, who have always accompanied our development. in beauty worldwide (1) 87,400 36 employees global brands Our goal is to offer each and every person around the world the best of beauty in terms of quality, efficacy, safety, sincerity and responsibility to satisfy all beauty needs and desires in their infinite diversity. Because beauty is a permanent quest, we harness the power of our innovation to continually enhance the performance of our products and services. Because we value diversity, we leverage each of our brands to celebrate all expressions of beauty. 38.26 Because we strive to be exemplary with a long-term vision, we anchor our actions in our strong values and demanding ethical principles. billion euros of sales And because we are the global leader in beauty, we are aware that everything we do can have a meaningful impact. 150+ 561 countries patents filed in 2022 We act to drive social innovation by offering the best working conditions, training, and social protection for our employees. We act to nurture lasting partnerships with our clients and suppliers based on mutual trust and collaboration. billion euros in operating profit We act to create value for all our shareholders, by sustaining a robust business model. We act to champion the cause of women and to strengthen the communities with which we engage. CONTENTS 04 — Chairman’s message Performance Brands 05 — Interview with the 10 — Financial performance 14 — Acquisitions 12 — Social & environmental 15 — Global brands 06 — Board of Directors We act to shape the future of beauty by leveraging the best of science and technology, increasingly inspired by nature. We act to build a business with inclusivity at its heart by ensuring we are as diverse as the people we serve. 7.45 Chief Executive Officer Therefore: performance 07 — Executive Committee 08 — Strategy and Ethical principles 16 — Luxe 18 — Consumer Products 20 — Dermatological Beauty 22 — Professional Products Shaping the future of beauty 26 — The Green Sciences revolution 27 — Beauty augmented by technology 28 — Towards a more sustainable model 29 — Talent and diversity 30 — A responsive and responsible supply chain (1) Source: Beauty’s Top 100, WWD, May 2022, based on 2021 sales. We act to protect the beauty of the planet by fighting climate change, respecting biodiversity and preserving natural resources. At L’Oréal, we share a common purpose to: Create the beauty that moves the world 3 More than ever, L’Oréal is driven by tremendous energy JEAN-PAUL AGON Chairman of the Board of Directors In a turbulent environment, L’Oréal showed outstanding agility and overcame a series of challenges thanks to the assets that make it strong. The first of these assets is our people: the L’Oréalians. They are the secret to our company’s success. Their determination to go that extra mile and their spirit of solidarity were, once again, exemplary. They have my utmost admiration. Nicolas Hieronimus’ inspiring leadership was of course crucial in guiding teams and unlocking the impressive growth momentum in our sales, market shares and results. He and the Executive Committee succeeded in swiftly rising to challenges while seizing every opportunity in an ever-changing market. The complementarity of our roles as Chairman and CEO is crucial in pursuing L’Oréal’s ambitious and harmonious development. I know our people are utterly committed to fighting for a more sustainable planet and a more caring world. As Chairman, I will always ensure L’Oréal continues to embody and inspire change with perseverance, ambition and sincerity. Dual financial and social excellence will always be at the heart of our business model. On behalf of the Board of Directors, I would like to thank and congratulate our CEO, the members of the Executive Committee and all our employees around the world for their remarkable achievements.