L'Oréal Finance and Shareholders

You are almost certainly a "bearer" shareholder. Only "registered" shareholders receive all the documents sent out to shareholders as their names appear in the company's books.

If you wish to remain a bearer shareholder but would still like to receive regular information about the group, we advise you to:

- sign up for our service of e-mail alerts in order to be immediately informed of major corporate events
- subscribe to our Letter to Shareholders and order the documents you are interested in (Annual Report, etc.) by contacting us by telephone, by e-mail or by post.
- consult the loreal-finance.com website via your mobile phone.

In order to be able to participate in an Annual General Meeting, if you are a bearer shareholder, we recommend that you ask your financial intermediary for a certificate proving that you are a shareholder at the date of the request. Your financial intermediary will then send this certificate to BNP Paribas Securities Services which will send you your entrance card.

In order to be immediately informed of major corporate events, you can sign up for our system of e-mail alerts.
Financial analyst meetings and Annual General Meetings are also accessible on the website under the Presentations and webcasts section
Financial press releases can be found in the section on Regulated Information

Of course. You can meet the L'Oréal shareholder relations team at meetings arranged all over France. The programme for 2011 includes meetings in Annecy, Bordeaux, Lille, Lyon, Montpellier, Nice, Rennes, Strasbourg, as well as Brussels and Antwerp.

All the dates of meetings for shareholders can be found in the section Shareholders' Corner/Key dates.

You can use either of the following two phone numbers:

- our toll-free line which is specially intended for communications with shareholders:
Toll-free number: 0800 66 66 66 for calls from fixed phones in France.
From abroad : 33 1 40 14 80 50.
- the telephone number of Jean-Régis Carof, Director of Shareholder and Market Authority Relations: 33 1 47 56 82 65

Finally, you can also send us an e-mail using the "Your contacts" section .

The Annual Report is available in the Regulated Information/Annual Report section .
If you want to consult or download some specific chapters, you can access the Annual Report in interactive format.
If you would prefer to receive a hard copy, please fill in the following form:

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L'Oréal has no shareholders club in the same sense as other listed companies.

However, we have created a Shareholder Consultation Committee. There are 18 shareholder members. Half the members will be replaced each year. If you would like to participate, please contact us via this website via the Shareholders' Corner.

For several years now, we have been taking part in the Actionaria shareholder fair. The last Actionaria trade show was held at the Palais des Congrès in Paris on November 18 & 19, 2011. Click here for the dates of forthcoming shareholder events.

From a rolling shareholder panel to a genuine Shareholder Consultation Committee, L'Oréal wants to go even further in the quality of its contact with individual shareholders, to have a clearer understanding of their expectiations, while constantly increasing the relevance and effectiveness of our initiatives towards individual shareholders. Click here to visit the Shareholder Consultation Committee page.

Since 1984, French shares have been "dematerialised", i.e. they are recorded electronically in a securities account and are no longer evidenced by a hard copy certificate. Securities may be held in two forms:
- Bearer shares: when the name of the owner is not disclosed to the issuing company. However, they are not anonymous since they appear in the account managed by the financial intermediary.
- Registered shares: when the name of the shareholder appears in the books kept by the issuing company, which makes it easier for the company to communicate with its shareholders. These shares may be in either of two forms:

- "Managed registered" shares: Management of the securities account is entrusted to a financial intermediary. The financial intermediary charges for this service.
- "Pure registered" shares: The securities are entered directly and solely in the books of the issuing company, which is in charge of the administrative management of the shares (usually via its authorised agent).

The differences between "pure registered shares" and "managed registered shares" are as follows:

- Custody fees: no fees are charged to the shareholder for "directly registered shares" (paid by the Issuer) while increased custody fees are charged for "managed registered shares" (you should ask your financial intermediary for prior information on the applicable charges).

- The custodian : in the case of "managed registered Shares", the custodian may be chosen by the shareholder, while for "directly registered shares", the custodian is the issuer itself or an authorised agent appointed by the issuer (L'Oréal chose BNP Paribas to manage directly registered shares).

In order to carry out a stock market trade via your Registered Current Account (Compte Courant Nominatif - CCN), you must have completed and signed a contract for stock market services (click here to download a model of such contract in PDF format). As soon as this contract has been accepted, any shareholder may purchase or sell L'Oréal shares by providing BNP Paribas Securities Services with instructions using any of the following methods:

- online: on the secure website Planet Shares, dedicated to directly registered shareholders: planetshares.bnpparibas.com
- By mail : fill in that form and send it at the following address:
Service Actionnaires L'Oréal - BNP Paribas Securities Services
Service Emetteurs, Grands Moulins de Pantin, 9 rue du Débarcadère, 93761 Pantin Cedex, France
- By telephone to the toll-free number: 0.800.66.66.66 or +33 1 40 14 80 50 from abroad
- By fax to: 33 (0)1 55 77 34 17

N.B.: any trade order placed by telephone must be confirmed in writing within 48 hours (click here to download a model of such document in PDF format - in French).

You will be required to provide the following mandatory information in order to place a trade order (without this information, your trade order may be rejected):

- your surname, first name and address
- the name of the share and the ISIN code
- the nature of the trade order (purchase or sale)
- the quantity of shares concerned
- the trade execution price: market price, limited price (in such a case, the price should be specified), best limit price
- date of validity of the trade order: exact day or end of the month
- date and your signature

Finally, the fees and taxes applicable to trade orders for L'Oréal shares are as follows:

- Brokerage fee: 0.15% exclusive of taxes of the gross amount of the trade with a minimum of €6.10 + VAT at a rate of 19.6% for residents of France and 8.5% for residents of French Overseas Departments (Départements d'Outre Mer - DOM).
- Bank fees: €7.62 + VAT at a rate of 19.6% for residents of France and 8.5% for residents of French Overseas Departments (Départements d'Outre Mer - DOM).

Shares are never registered automatically. You have to expressly ask your financial intermediary to register them in writing.

You can register them as:

- either "directly registered shares": in which case you should send a letter to this effect to your custodian (click here to download the order form). The shares will be delivered to the issuing company in order to be registered as "directly registered shares". N.B.: L'Oréal will meet the cost of transfer fees up to a maximum of 50 euros, on presentation of the corresponding receipt..
- or as "managed registered shares": in which case your shares will be kept in the custody of your financial intermediary; your financial intermediary will inform L'Oréal that the shares have been registered as "managed registered shares".

If they have held their shares as registered shares for over two years, these shareholders will receive a preferential dividend for the fraction of the shares they hold amounting to 0.5% of the share capital at the closing date of the previous fiscal year. For the fraction exceeding 0.5%, the dividend received will be the normal dividend paid to all shareholders.

For example: A shareholder owning 6,000,000 shares (i.e. around 1% of the share capital of L'Oréal) would receive a preferential dividend for 2,992,000 shares (which represent 0.5% of the share capital) and an ordinary dividend for the rest (3,008,000 shares).

The L'Oréal share is listed on the Paris Stock Market, on Eurolist Compartment A. The share is eligible for the deferred settlement service (Service de Règlement Différé).

Since the commencement of the European directive called "MIF" ("Marchés d'intruments financiers" - financial instruments markets).

Unsponsored ADRs (American Depositary Receipt) circulate freely in the United States at the initiative of several banks working in the USA.

The L'Oréal share was first quoted on the spot market on 8 October 1963.

At December 31, 2010, L'Oréal's share capital is held as follows:

- Mrs Bettencourt and her family: 30.9%,
- Nestlé: 29.7%,
- Public: 37.5%,
- Treasury stock: 1.9%.

- ISIN: FR0000120321
- Loyalty bonus code – dividend +10% in 2012: FR0010833269
- NYSE Euronext: OR.PA
- Bloomberg: OR:FP 
- Reuters: OREP.PA
- Datastream: F:OR@F
- Mnémo: OR

The main stock indexes on which the L'Oréal share is listed are as follows: CAC 40, Euronext 100, DJ Euro Stoxx 50.

At 31 December 2010, the percentage represented by the L'Oréal share was:

- 2.86% for the Cac 40
- 3.06% for Euronext 100
- 1.26% for DJ Euro Stoxx 50.

At 31 December 2010, floating shares represented 37.54% of L'Oréal's capital. This figure can be broken down as follows:

- international institutional investors (21.79%),
- French institutional investors (9.37%),
- individual shareholders (5.67%)
- employees (0.71%).

Click here to see the graphic chart.

The Board of Directors has decided to propose that the Annual General Meeting of Shareholders of April 22, 2011 should approve a dividend of €1.80 per share, an increase of +20% compared with the dividend paid in 2010.

This dividend will be paid on May 4, 2011 (ex-dividend date April 29 at 0:00 am).
Over the past 10 years, the dividend paid has more than tripled, increasing from €0.54 for the 2001 financial year to €1.80 for the 2010 financial year (an overall increase of +233%).

The rate of distribution of the company's profits has also grown significantly and regularly: it has risen from 29.1% of the results in 1997 to 44.9% of the results in 2010.

For many years, the Board has proposed to the Annual General Meeting a dividend that has increased strongly and regularly as a reflection of the continual improvement in your group's results. To obtain details of the evolution of dividends, as well as the dividend distribution rate, click here.

1) For French individual tax residents:

A) Ordinary tax treatment:

- A system of a 40% tax deduction in respect of the gross amount of the dividend payment: dividend payments are subject to personal income tax (impôt sur le revenu des personnes physiques - IRPP) in respect of 60% of the gross amount of such dividend income;

- Fixed annual standard tax deduction: €1,525 for single, divorced or widowed taxpayers or for married couples who are taxed separately, or €3,050 for married couples or those having entered into a French form of civil partnership agreement (PACS) filing joint tax returns;

For dividends paid from January 1, 2008 onwards, the social contributions (CSG, CRDS, social levy and social surcharges) are paid directly by the French institutions paying the dividends (with a total rate of social contributions amounting to 13.5% since October 1, 2011).

B) Optional tax treatment (deduction of tax at source) for dividends paid from January 1, 2008 onwards:

Upon election by the taxpayer, dividends may be subject to a Prélèvement Forfaitaire Libératoire Optionnel (PLFO) - an optional deduction of personal income tax at source - at the current rate of 21% on the gross amount of the dividends paid, plus the social contributions (CSG, CRDS, social levy and social surcharges), at a total rate of 13.5% since October 1, 2011, i.e. total deductions of 34.5% in 2012.

N.B.: The taxation described in paragraphs A) and B) is replaced by a mandatory withholding of 55% when the dividends are transferred directly onto an account on the books of a financial institution located in a Non-Cooperative State or Territory (NCST).  For a French resident, this withholding will be increased by the social contributions and levies in force (at a total rate of 13.5% since October 1, 2011).

2) For French individual non-tax residents:

The taxes that will apply depend on the shareholder's place of tax residence and whether or not his/her State of residence has signed a tax treaty with France aimed at limiting double taxation.
Where France has signed a tax treaty with the shareholder's country of residence, the amount of the dividend will be calculated on the basis of the documents sent to the custodian of his/her L’OREAL shares:
- it will be subject to withholding tax at the rate of 30% where no document is submitted before the date of the dividend payment, or

- it will be subject to application of more favourable provisions provided for by international tax treaties, subject to withholding tax at the rate of 21% where the shareholder is domiciled in a European Union Member State or a State which is a party to the European Economic Area Agreement that has entered into an administrative assistance agreement with France in order to combat fraud and tax evasion on condition that the shareholder so requests and sends the custodian of his/her L'OREAL shares, prior to the date of payment of the dividend, a certificate of tax residence (form No. 5000), duly completed and signed by the shareholder and also signed by the tax authorities of his/her country of residence; or

- it will be subject to withholding tax at the reduced tax treaty rate if the shareholder sends the custodian of his/her L’OREAL shares, prior to the date of payment of the dividend, a certificate of tax residence (form No. 5000), duly completed and signed by the shareholder and also signed by the tax authorities of his/her country of residence (simplified procedure).

N.B.: Withholding tax at the increased rate of 55% applies if the dividends are paid by cheque to a beneficiary resident in a Non-Cooperative State or Territory or transferred directly to an account on the books of a bank located in a Non-Cooperative State or Territory.
If the shareholder submits a tax treaty form (consisting of form No. 5000 + Annex No. 5001) after payment of the dividend, at the latest by December 31 of the second year following the year of collection of the revenues, an amount will be paid to such shareholder corresponding to the difference between the rate of 30% initially withheld and the applicable tax treaty rate (refund procedure).
It should be noted that the tax treaty form (form No. 5000 + Annex No. 5001) and the explanatory notes (No. 5000 NOT) can be downloaded from the www.impots.gouv.fr website in French, English, German, Spanish, Italian and Dutch.
Where France has not signed a tax treaty with the shareholder's country of residence, the rate of withholding source applied will be 30% or 21% without any possibility of recovery.

You can choose to use:

­- the closing trading price for the last stock market trading session in the previous year, i.e. €83.08 on December 31, 2010, or
- the average of the last 30 days’ closing prices for 2010: €85.11.

At least 35 days prior to the date of the AGM, L'Oréal publishes a notice of the meeting in the French official bulletin of legal notices (Bulletin des Annonces Légales Obligatoires - BALO) to inform its shareholders of the holding of an AGM. This notice contains, inter alia, the agenda for the AGM and the text of the resolutions to be put to the vote. The agenda and the text of the resolutions are not however final at this stage.

At least 15 days before the meeting is to be held, a notice inviting shareholders to attend the meeting is published in the BALO and in a journal of legal notices (journal d'annonces légales - JAL). It is sent to registered shareholders by post. This notice specifies the date, place and time, the methods of participation in the meeting and the agenda.

Other means are also at your disposal to keep you informed about the holding of an AGM:

- Financial notices published by L'Oréal in the economic and financial press, which provide advance information on the date and time of the AGM and all the necessary information which will enable you to obtain an entrance card,
- The Shareholders Service Office (Toll-free number: 0800 66 66 66 for calls from fixed phones), +33 1 40 14 80 50 from abroad
- The website specifically intended for shareholders: http://www.loreal-finance.com/eng

In order to provide you with easy access to the AGM, we recommend that you obtain an entrance card prior to the meeting and that you bring it with you to the meeting:

- if you are a registered shareholder: this entrance card can be obtained from BNP Paribas Securities Services at the following address:
Service Actionnaires de L'Oréal - BNP Paribas Securities Services -
G.C.T. Émetteurs - Assemblées - Grands Moulins de Pantin, 9 rue du Débarcadère, 93761 Pantin Cedex, France.

- if you are a bearer shareholder: you should contact your financial intermediary. You must first of all ask for a certificate proving that you are a shareholder at the date of the request. The intermediary will then send this certificate to BNP Paribas Securities Services which will send you your entrance card.

If you are unable to attend the AGM in person, you will have the choice between 3 different possibilities for voting as provided for in the form sent with the file for the AGM:

Voting online on the secured website : http://gisproxy.bnpparibas.com. If you are a registered shareholder, use the identifier number and the password you usually use to consult your account on the GISNOMI website. If you are a bearer shareholder, contact the institution that is the custodian of your shares, to ask for a certificate of participation in order to vote online.

Voting by mail. In order to vote by mail, please fill in the box next to the words "Je vote par correspondance" (I wish to vote by mail) and then fill in the boxes next to any resolutions with which you are not in agreement.

Giving a proxy to the Chairman. As the owner of the shares, you only have to date and sign at the bottom of the form, without filling in anything else. This means that you wish to vote in favour of all the draft resolutions presented or approved by the Board of Directors and vote against all the draft resolutions that may potentially be presented to counter its proposals.

Giving a proxy to your spouse, or to another L'Oréal shareholder. You should then check the appropriate box, and give the surname and first names or corporate name of the proxy appointed.

Whatever method of voting you choose, and regardless of whether you are the holder of bearer or registered shares, you should send at least three days before the AGM your duly completed, dated and signed form to:
Service Actionnaires de L'Oréal - BNP Paribas Securities Services -
G.C.T. Émetteurs - Assemblées - Grands Moulins de Pantin, 9 rue du Débarcadère, 93761 Pantin Cedex, France.

If you have not received your entrance card in time for the AGM, you may nevertheless attend such meeting:

- If you are a registered shareholder, you will simply be required to provide proof of your identity at the shareholder admission desk.

- If you are a bearer shareholder, you may obtain admission by providing a certificate of holding issued by your financial intermediary, together with your identity papers.