1. What is an Employee Share Plan?
An employee share plan offers eligible employees the opportunity to acquire their company’s shares on preferential terms.

2. Will you propose this offer every year? 
This plan is already the third in five years’ time. It demonstrates the Group’s desire to propose additional plans in the coming years, although not at fixed intervals.

3. Who can subscribe?
Employees who work for an eligible L'Oréal Group company that have 24 months of service and are still Group employees on June 22, 2022.

4. When can I subscribe? 
You can subscribe from June 8 to June 22, 2022 (5:59 ET) only.

5. How do I subscribe? 
You may subscribe online via a specially-created subscription tool, using your personal login details (“login”) that will be provided to you by email or mail (if you do not have a L'Oréal email address). Employees with no access to the internet may request and complete a subscription form. Please refer to the Local Supplement for details.

6. If I lose my login details, what do I do?
Employees may send an email to [email protected] during the subscription period should they need assistance to connect or to subscribe.

7. Can I modify/cancel my subscription? 
You may modify your subscription online until the last day of the subscription period, i.e., June 22, 2022 at 5:59pm ET. After the subscription period, subscriptions can no longer be modified and are irreversible. You will be responsible to pay for your investment in full. 

8. What is the minimum investment? 
The minimum investment is one L’Oréal share.

9. What is the maximum subscription per employee? 
The maximum investment is 50 L'Oréal shares, capped at 25% of your 2022 gross annual compensation.

10. What do we mean by “gross annual compensation”? 
An employee’s gross annual compensation consists of their annual salary and any commissions or bonus payments received in 2022 (see the Local Supplement for details).

11. What are the risks if I do not comply with the 25% gross annual salary limit?
Employees must agree to comply with this limit by signing their subscription form (online or in writing). The risk is that the number of shares you request may be reduced if you do not comply with this limit.

12. What is the exchange rate that will be used to convert the Reference Price from Euros to U.S. Dollars?
The conversion of the Reference Price to U.S. dollars will be based on the exchange rate between the euro and the dollar applicable at 1:00 p.m. London Time on June 2, 2022, sourced from Reuters as the mid EUR/USD rate.

13. What is the ticker symbol for the L’Oréal? Where can I research the L’Oréal share price?
The L'Oréal stock as part of the Employee Share Plan is not traded on the U.S. Stock exchange so there is no ticker symbol. The symbol on the Paris Stock Exchange is OR. You may check the current L’Oréal share price and review its history at www.loreal-finance.com. Note, L’Oreal ADRs (American Depository Receipts) do trade on NASDAQ under the symbol LRLCY but ADRs are different than ordinary shares.

14. Are there tools we can reference to help understand the risks associated with currency fluctuations?
You can review the history of the Euro to Dollar exchange rate at federalreserve.gov. The main risk is that as the exchange rate fluctuates, the value of your shares will fluctuate. To understand what types of events and factors impact the exchange rate, check with trusted sources like Bloomberg and Reuters.

15. If I choose to pay for my shares by check, either in full or partially, where do I send my payment?
Reference page 3 of the Local Supplement.

16. When will I receive my free shares associated with my share purchase in 2022? 
The free shares will be distributed at the end of the lock-in period, i.e., around July 26, 2027, subject to certain conditions (see the Local Supplement).

17. How will I be taxed on the value of the share discount and free shares?
The value of the difference between the subscription price and the fair market value of the shares on the share delivery date, and the full value of the free shares on the share delivery date, will be taxed as earned income.

18. What are the cases of early release? 
Consult your Local Supplement, which will specify all valid cases in your country.

19. How will my share purchase be confirmed? 
Initially, when you subscribe online, you will receive a confirmation statement. In July 2022, every employee who subscribes under the Plan will receive a notification stating the number of shares allocated to them.

20. How do employees obtain the early release of their shares? 
See Local Supplement for more details around early release of shares. For L'Oréal USA, early release requests are submitted through the My Share Ownership page in PRISM. For Travel Retail Americas, please email Raysa Rivadeneira at [email protected].

21. Is it possible to release only a portion of my shares?
Yes. You can request the release of all or some of your locked-in, subscribed shares. However, a reason for release may be given only once: if an employee releases part of their locked-in shares, the rest will remain locked in through the release date unless the employee experiences another reason for early release.

22. What is a dividend? 
A dividend is part of the earnings that the company pays out to its shareholders. This payment is not made automatically; it depends upon the company’s annual results and the decision of the shareholders at the Annual General Meeting.

23. Can I reinvest dividends? How will they be paid?
No, the dividends are cash dividends paid annually, subject to approval at the Annual General Meeting of shareholders. For active L'Oréal USA employees, the annual dividend is paid through payroll. Terminated participants can receive dividends paid to their bank account by Global Shares, the plan's Custodian, assuming that the participant has set up his/her banking details appropriately.

24. What happens if I leave the company before the 5 years?
If you resign before the 5 year vesting period, you will forfeit any free shares associated with your purchase. However, the shares you purchased at the 20% discount are yours and, as a result of your termination, you can choose to sell them, transfer them to a personal account, or maintain them with the Plan Custodian (Global Shares). You will be responsible for paying off your company loan in full, if applicable. If you retire or are subject to a company initiated termination (not for cause), you would retain your rights to the free shares.

25. What happens to my shares in the event of my death?
You may designate a beneficiary for your shares on the custodian’s website. The free shares will be accelerated to your beneficiary after your death (i.e., they do not need to wait until 2027 to receive the free shares).

26. Where can I find the Local Supplement?
You may review or download a copy of the Local Supplement from the Documentation tab of www.invest.loreal.com.