2024 universal registration document

d) Remuneration

The variable portion of the Chief Executive Officer’s current remuneration incorporates quantitative and qualitative nonfinancial objectives, including objectives associated with the L’Oréal for the Future programme. Since 2016, non-financial objectives in line with the Group’s goals for sustainability have been included in the variable remuneration of the top management, including international brand managers and country managers.

For the conditional grant of free shares, plans since 2022 stipulate the fulfilment of non-financial performance criteria, of which:

the fulfilment of environmental and social responsibility commitments made by the Group as part of the L’Oréal for the Future programme;
gender balance within strategic positions including the Executive Committee.

Note 14 Off-balance sheet commitments

14.1 Lease commitments

These amounted to €94.5 million at 31 December 2024 compared with €91.0 million at 31 December 2023 and €122.7 million at 31 December 2022, of which:

€39.1 million was due within one year at 31 December 2024, compared with €39.4 million at 31 December 2023 and €46.7 million at 31 December 2022;
€48.4 million was due within 1 to 5 years at 31 December 2024, compared with €47 million at 31 December 2023 and €61.3 million at 31 December 2022;
€7.0 million was due in over five years at 31 December 2024, compared with €4.6 million at 31 December 2023 and €14.8 million at 31 December 2022.

14.2 Other off-balance sheet commitments

Confirmed credit lines are discussed in note 9.1.11.

Other significant off-balance sheet commitments have been identified and measured. They chiefly fall due within one year and are as follows:

€ millions	31.12.2024	31.12.2023	31.12.2022
Guarantees given⁽¹⁾	Guarantees given ⁽¹⁾ 31.12.2024 314.9	Guarantees given ⁽¹⁾ 31.12.2023 279.0	Guarantees given ⁽¹⁾ 31.12.2022 308.9
Guarantees received	Guarantees received 31.12.2024 123.0	Guarantees received 31.12.2023 126.5	Guarantees received 31.12.2022 110.4
Capital expenditure orders⁽²⁾	Capital expenditure orders ⁽²⁾ 31.12.2024 528.1	Capital expenditure orders ⁽²⁾ 31.12.2023 581.7	Capital expenditure orders ⁽²⁾ 31.12.2022 508.0
Firm purchase commitments under logistics supply and service contracts⁽³⁾	Firm purchase commitments under logistics supply and service contracts ⁽³⁾ 31.12.2024 2,033.9	Firm purchase commitments under logistics supply and service contracts ⁽³⁾ 31.12.2023 2,237.7	Firm purchase commitments under logistics supply and service contracts ⁽³⁾ 31.12.2022 1,852.1

These consist mainly of guarantees given to governmental bodies or concerning loans granted to third parties who are partners of the Group, and the net commitment toward the L’Oréal Foundation for its long-term action programme.
Despite their strategic nature, none of these investments taken individually is material enough at Group level to warrant more detailed disclosure.
Including irrevocable commitments for energy purchase contracts, particularly on green energies such as purchase power agreements recognized as own use.

Note 15 Transactions with related parties

15.1 Transactions with associated companies (Related parties)

Equity-accounted companies include joint ventures only.

The consolidated financial statements include transactions carried out between the Group and its equity-accounted companies, considered to be related parties. The main transactions with these related parties and the associated outstanding balances are as follows:

€ millions	2024	2023	2022
Sales of goods and services	Sales of goods and services 2024 —	Sales of goods and services 2023 —	Sales of goods and services 2022 —
Financial expenses and income	Financial expenses and income 2024 —	Financial expenses and income 2023 —	Financial expenses and income 2022 —