The letter to shareholders - N°81 - Spring 2022

Dear shareholders,

Your Group published its first quarter sales on Tuesday, 19 April. Against the backdrop of the invasion of Ukraine and strengthened sanitary measures in China, L’Oréal had a strong first quarter, with strong growth in sales, at +13.5% like-for-like and +19.0% reported.

In the first three months of the year, the growth trend continued in the global beauty market, with consumer purchasing behaviour unaffected by inflation. L’Oréal pursued its premiumisation and innovation strategy and continued to outpace the beauty market across all Zones and Divisions, recording strong growth by volume and value. L’Oréal Luxe, Professional Products and Active Cosmetics all achieved double-digit growth, and our Consumer Products Division again outperformed the market despite supply-chain challenges. We made the most of our omnichannel strategy, with a clear revival in offline sales while e-commerce⁽¹⁾ continued to grow, representing 25.8% of sales.

Our growth was balanced across all geographic Zones, with continued outstanding momentum in North America, double-digit growth in mainland China, and an acceleration in emerging markets as well as in Europe, where growth was muted by a number of lockdowns in early 2021.

In these challenging times following the invasion of Ukraine, I would like to express our support for all our Ukrainian employees, whose protection remains our absolute priority.

Thanks to the unrelenting efforts of our teams across the world, we will pursue our strategy of harnessing cutting-edge innovation and investment to drive the growth of our brands and enhance their desirability going forward.

While mindful of volatility and uncertainty, we remain optimistic about the outlook for the beauty market and confident in our ability to outperform the market in 2022 and achieve another year of growth in sales and profits.

1^st QUARTER 2022 SALES