L'Oréal - 2018 Registration Document

6 Stock Market Information Share capital INFORMATION CONCERNING THE SHARE CAPITAL

STATUTORY SHARE OWNERSHIP 6.1.12. THRESHOLD (EXTRACTS FROM ARTICLE 7 OF THE ARTICLES OF ASSOCIATION) “Any person, acting alone or in concert, who comes to hold, directly or indirectly, a number of shares or voting rights representing a fraction of the share capital or voting rights, taking into account equivalent securities under the meaning of Article L. 233-9 of the French Commercial Code, equal to 1% or a multiple of this percentage, and lower than 5%, must inform the Company of the total number of shares, voting rights and securities giving access to the share capital that it holds, as well as of equivalent securities under the meaning of Article L. 233-9 of the French Commercial Code, within a period of five trading days, from the date of the threshold crossing, pursuant to the notification and content conditions stipulated by the legal and regulatory provisions applicable to declarations of legal threshold crossings, and, notably by declaring the information that must be provided when a legal threshold is crossed to the French Financial Markets Authority (AMF), in accordance with its general regulations. Such notice must also be given to the Company when a shareholder's ownership falls below one of the thresholds set forth above". This provision of the Articles of Association supplements the legal requirements covering disclosures concerning the crossing, upwards or downwards, of thresholds relating to one-twentieth, one-tenth, three-twentieths, one-fifth, one-quarter, three-tenths, one-third, one-half, two-thirds, eighteen-twentieths or nineteen-twentieths of share capital or of voting rights. “If not disclosed in accordance with the conditions stipulated by law or by the Articles of Association, the shares of the offending shareholder exceeding the fraction which should have been disclosed are deprived of voting rights, in accordance with the conditions stipulated in the French Commercial Code, if during a General Meeting the failure to disclose is noted and if one or more shareholders together holding at least 5% of the share capital so request during said meeting”. See the complete text of the Company’s Articles of Association on the www.loreal-finance.com website, “ Financial information ” section.

Similarly, any shareholder who can prove, at the end of a financial year, that shares have been registered in his name for at least two years and that they continue to be registered in his name at the date of completion of an increase in capital carried out through capitalisation of reserves, profits or share premiums by the distribution of bonus shares, shall be entitled to an increase in the number of bonus shares to be distributed to him, equal to 10%, this number being rounded down to the nearest lower unit in the event of fractional share rights. The new shares created in this manner will be identical, for the purposes of calculating the rights to the preferential dividend and to the increased share allocations, to the old shares from which they result. The number of shares eligible for these preferential dividends may not exceed 0.5% of the share capital at the closing date of the past financial year, for the same shareholder. The losses (if any) shall be charged to the retained earnings B. from preceding financial years or to the reserve funds, and the balance shall be booked into a special ‘carry forward’ account.” ANNUAL GENERAL MEETING 6.1.11. Annual General Meetings are governed by all the legal provisions and regulations laid down in this connection. It is specified that, in accordance with Article 12 of the Company’s Articles of Association, if the Board of Directors decides when the General Meeting is called, any shareholder may take part in the meeting by videoconference or by any other telecommunication or remote transmission means including the Internet, under the conditions stipulated by the applicable regulations at the time it is used. If this decision is taken, it is communicated in the meeting notice published in the Bulletin des Annonces Légales Obligatoires (B.A.L.O). Since the Annual General Meeting of 29 April 2004, double voting rights have been eliminated. Applying the provisions of French law No. 2014-384 of 29 March 2014, the Annual General Meeting of 22 April 2015 confirmed that each share entitles the holder to only one vote at General Meetings.

INFORMATION CONCERNING THESHARECAPITAL * 6.2.

STATUTORY REQUIREMENTS GOVERNING CHANGES IN THE SHARE CAPITAL 6.2.1. AND SHAREHOLDERS’ RIGHTS None. ISSUED SHARE CAPITAL AND AUTHORISED UNISSUED SHARE CAPITAL 6.2.2. The share capital amounted to €112,079,330.40 at 31 December 2018. It was divided into 560,396,652 shares with a par value of €0.20 each, all of the same class and ranking pari passu . French Commercial Code) the currently valid authorisations granted to the Board of Directors by the Annual General Meeting of shareholders concerning the capital. It shows the use made of such authorisations over the financial year and presents the authorisations which are to be put to the vote at The table set out below which summarises (particularly in the Annual General Meeting on 18 April 2019. application of Articles L. 225-129-1 and L. 225-129-2 of the This information is an integral part of the Annual Financial Report, as provided for in Article L. 451-1-2 of the French Monetary and Financial Code. *

REGISTRATION DOCUMENT / L'ORÉAL 2018

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