L'Oréal - 2018 Registration Document

L’Oréal’s corporate social, environmental and societal responsibility METHODOLOGICAL NOTES

METHODOLOGICAL NOTES 3.5.

SOCIAL DATA 3.5.1. Scope of consolidation 3.5.1.1. The workforce indicated and its breakdowns correspond to the total workforce (1) . The employees of the French companies Retail Excellence 4, Atelier Cologne and Saint Gervais Mont Blanc, representing a total of 522 employees, are included in the total workforce. The various breakdowns of these numbers are calculated in proportion to the breakdown of the French workforce. They are included in the indicators concerning collective agreements, health coverage and financial protection in the event of unexpected life events. These employees are excluded from all other data. Indicators 3.5.1.2. The indicators chosen are those used in the management of employees and of the social aspects of the Company. They reflect the results of the Human Resources policy. Data 3.5.1.3. Four methods are used to collect data for the defined scope: most of the data are collected using the dedicated s “Country Reporting” intranet system, available in all countries in which there is a L’Oréal subsidiary. The system covers several topics - workforce, training, absenteeism, labour relations, the L’Oréal Share & Care programme, remuneration, diversity, recruitment and profit sharing: at the beginning of each year, the local Human Resources s Directors provide the required data for the previous year; other data are collected by each department concerned s ( i.e. Training, Recruitment) using dedicated systems which follow the same operational and dissemination approach; if information is not consolidated for the entire Cosmetics s Division scope, it can be extrapolated from the available results for the entities connected to the local Information Systems (IS), provided that the scope covered by such entities is representative; lastly, the specific data relating to “managers” and other s specific populations (expatriates, key positions, etc.) are gathered from the “CAROL” online career monitoring system, deployed in all Cosmetic Divisions subsidiaries.

The number of employees trained is calculated on the basis of all types of training format and length. The number of employees trained who received less than 1 hour’s training is not significant. Concerning the Share & Care indicator relating to healthcare coverage, the best practices in the countries are regularly evaluated in each country in which the Group is present. A process of continuous improvement of these systems has been put in place. They are reviewed each year, taking into account the Statutory Auditors’ recommendations and monitoring objectives for subsequent years: updating the indicators to be monitored, improving their definition and the communication, monitoring and control process. The safety indicators relate to all sites: plants, distribution centres, administrative sites, research centres and stores, as well as sales forces. Safety reporting covers 99% of plants and distribution centres and over 90% of the workforce of the administrative sites, research centres, sales forces and stores. The safety indicators of the plants and distribution centres sold or closed during the financial year are reported in full up to the date of their exit from the scope. The plants or distribution centres that join the Group have a maximum period of two years to integrate the environmental and safety reporting systems. In accordance with this rule, data from the Logocos NaturKosmetik site in Germany, which recently joined the Group, are not integrated into the 2018 EHS reporting. Indicators 3.5.2.2. The indicators applied are those used in the management of the Group’s sites. They reflect the results of the Group’s Environment, Health and Safety (EHS) policy. Data 3.5.2.3. The following method is used to collect data for the defined scope: The health and safety data are collected using the dedicated site reporting intranet system, available in all countries in which there is a L’Oréal subsidiary. The required data are reported every month by the local managers. HEALTH AND SAFETY DATA 3.5.2. Scope of consolidation 3.5.2.1.

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Subsidiaries in Venezuela were deconsolidated on 31 December 2015. Certain recent acquisitions/subsidiaries (Luxembourg, Côte d'Ivoire, (1) Bangladesh, Modiface, Stylenanda, Logocos Naturkosmetik, Société des Thermes de La Roche-Posay), whose information systems have not yet been integrated into the Group's system, are excluded from reporting. They represent 1.21% of the Group's employees. The goal is to include them in the 2019 reporting.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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