L'Oréal Finance

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News release - February 18, 2012

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PUBLICATION OF THE REMUNERATION COMPONENTS OF L'ORÉAL'S CHAIRMAN & CEO MADE PURSUANT TO THE AFEP MEDEF CODE OF CORPORATE GOVERNANCE FOR LISTED COMPANIES OF APRIL 2010

I. The Board of Directors decided on February 13th, 2012, based on the proposals made by the Human Resources and Remuneration Committee, the following concerning the remuneration of Jean-Paul Agon, Chairman & CEO:

Remuneration in respect of 2011

The variable part of Jean-Paul Agon’s remuneration for 2011, following examination by the Human Resources and Remuneration Committee of the allocation criteria published in the 2010 Annual Report (volume 2, page 83), was set by the Board at 1,785,000 euros, that is 85% of the target of 2,100,000 euros.

Note: the fixed part of the remuneration of Jean-Paul Agon had previously been set by the Board of Directors at 2,100,000 euros in respect of 2011.

The total remuneration in respect of 2011 represents an increase of +2.77% versus 2010.

Remuneration in respect of 2012

The Board of Directors decided to maintain the fixed part of the remuneration of Jean-Paul Agon at 2,100,000 euros.

The Board of Directors also decided to maintain for the variable part of the remuneration, the target of 100% of the fixed part of the remuneration i.e. 2,100,000 euros. The Board of Directors maintained the same performance allocation criteria which will be published in the 2011 Annual Report.


II. In view of the current economic and social context and in support of the general effort given the difficult environment, Jean-Paul Agon has decided to renounce irrevocably to 200,000 of the 400,000 share subscription options granted by the Board of Directors on April 22nd, 2011.

Jean-Paul Agon will hence retain 200 000 share options from the Plan decided by the Board of Directors’ meeting of April 22nd, 2011. The exercise of these options is related to performance conditions, the achievement of which will be recorded at the end of a period of 5 years following the date of allocation.

“This news release does not constitute an offer to sell, or a solicitation of an offer to buy L’Oréal shares. If you wish to obtain more comprehensive information about L’Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers, also available in English on our Internet site www.loreal-finance.com.
This news release may contain some forward-looking statements. Athough the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements.”

Contacts at L'Oréal

Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel.: +33 1 47 56 83 02
Jean-Regis.CAROF@loreal.com

Financial analysts and institutional investors
Mrs Françoise LAUVIN
Tel.: +33 1 47 56 86 82
Francoise.LAUVIN@loreal.com

Journalists
Mrs Stephanie CARSON-PARKER
Tel.: +33 1 47 56 76 71
Stephanie.CARSONPARKER@loreal.com

Switchboard
Tel.: +33 1 47 56 70 00

For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, and the Internet site for shareholders and investors, http://www.loreal-finance.com, or its mobile version on your cell phone, http://loreal-finance.mobi; alternatively, call +33.1.40.14.80.50.