Contents PRESENTATION OF THE GROUP INTEGRATED REPORT* 5 1.1 The L’Oréal Group: the fundamentals 6 1.2 Business model: Economic and corporate excellence to create lasting value for all 14 1.3 2021 Financial Results and Corporate Social Responsibility commitments 36 1.4 An organisation serving the Group’s development 50 1.5 Internal Control and risk management system 51 CORPORATE GOVERNANCE* 53 2.1 Framework for the implementation of corporate  governance principles 54 2.2 Composition of the Board of Directors 57 2.3 Organisation and modus operandi of the Board of Directors 75 2.4 Remuneration of directors and corporate officers 96 2.5 Summary table of the recommendations of the AFEP–MEDEF Code which  have not been applied 127 2.6 Summary statement of trading by directors and corporate officers in L’Oréal shares in 2021 128 2.7 Statutory auditors’ special report on regulated agreements 128 RISK FACTORS AND CONTROL ENVIRONMENT* 133 3.1 Definition and objectives of Internal Control 134 3.2 Components of the Internal Control and Risk Management system 135 3.3 Systems relating to the preparation and processing of financial and accounting information 141 3.4 Vigilance Plan 144 3.5 Risk factors and risk management 158 L’ORÉAL’S SOCIAL, ENVIRONMENTAL AND SOCIETAL RESPONSIBILITY* 169 4.1 Introduction 170 4.2 Main non-financial risks 177 4.3 Policies, performance indicators and results 179 4.4 L’Oréal for the Future: 2021 results 258 4.5 Methodological notes 260 4.6 Cross-reference tables, including NFIS and GHG footprint 267 4.7 Statutory Auditor's reports 274 2021 CONSOLIDATED FINANCIAL STATEMENTS * 283 5.1 Compared consolidated income statements 285 5.2 Consolidated statement of comprehensive income 286 5.3 Compared consolidated balance sheets 287 5.4 Consolidated statements of changes in equity 288 5.5 Compared consolidated statements of cash flows 290 5.6 Notes to the consolidated financial statements 291 5.7 Consolidated companies at 31 December 2021 340 5.8 Statutory Auditors’ report on the consolidated financial statements 343 PARENT COMPANY FINANCIAL STATEMENTS* 347 6.1 Compared income statements 348 6.2 Compared balance sheets 349 6.3 Changes in shareholders’ equity 350 6.4 Statements of cash flows 351 6.5 Notes to the financial statements of L’Oréal SA 352 6.6 Other information relating to the financial statements of L’Oréal  S.A. 368 6.7 Five-year financial summary 370 6.8 Investments (main changes including shareholding threshold changes) 371 6.9 Statutory Auditors’ report on the financial statements 372 STOCK MARKET INFORMATION SHARE CAPITAL* 377 7.1 Information relating to the Company 378 7.2 Information concerning the share capital* 380 7.3 Shareholder structure* 383 7.4 Long-term incentive plans* 388 7.5 The L’Oréal share/the share market 393 7.6 Information policy 398 ANNUAL GENERAL MEETING 401 8.1 Draft resolutions and Report of the Board of Directors to the Ordinary and Extraordinary General Meeting to be held on Thursday 21  April 2022 402 8.2 Statutory Auditors’ Reports 425 APPENDICES 429 9.1 Statutory Auditors 430 9.2 Historical financial information included by  reference 430 9.3 Person responsible for the Universal Registration Document and the Annual  Financial Report 430 9.4 Declaration by the person responsible for the Universal Registration Document and the Annual Financial Report  431 9.5 Cross-reference table with the Universal Registration Document 432 9.6 Annual Financial Report cross-reference table 434 9.7 Cross-reference table with the AMF tables on the remuneration of directors and corporate officers 434 9.8 Management Report cross-reference table 435 1 2 3 4 5 6 7 8 9 Detailed chapter contents can be found at the beginning of each chapter. * This information forms an integral part of the Annual Financial Report as provided in the article L.  451-1-2 of the French Monetary and Financial Code.