8 8.1.1. Ordinary part Resolutions 1, 2 and 3: Approval of the annual (parent company and consolidated) financial  statements for 2021, allocating the company’s net income and setting the dividend Explanatory statement Having reviewed the Reports of the Board of Directors and the Statutory Auditors, the Annual General Meeting is called on to approve: • the parent company financial statements for 2021, with  an income statement showing net income of €3,860,498,991.57 compared with €4,158,826,992.71 for 2020; and • the 2021 consolidated financial statements. The details of these financial statements are set out in the 2021 Annual Financial Report and the main data included in  the package containing the convening notice to the Annual General Meeting. The Board of Directors proposes to the Annual General Meeting: • an ordinary dividend of €4.80 per share, representing an increase of 20% over the dividend for the previous year. The rate of distribution of the ordinary dividend (ordinary dividend paid/net income diluted per share excluding non-recurring items, attributable to owners of the Company) would be 54.4 % in 2021. Over the last five financial years, this rate was: Year 2016 2017 2018 2019 2020 Rate of distribution 51.1% 53.4% 54.4% 49.7% 54.8% • a preferential dividend per share of €5.28, corresponding to a 10% increase over the ordinary dividend. The preferential dividend will be granted to the shares held in registered form since 31 December 2019 at the latest, and which have continuously remained in registered form until the dividend payment date in 2022. The number of shares eligible for this preferential dividend may not exceed, for the same shareholder, 0.5% of the share capital at the closing date of the previous financial year. If the Annual General Meeting approves this proposal, the ex-dividend date for the dividends (both ordinary and preferential) will be 27 April 2022 at midnight, Paris time, and they will be paid on 29 April 2022. The amount of the ordinary dividend and the preferential dividend is eligible for the tax deduction provided for in Article  158, 3.2° of the French General Tax Code, which is applicable in the event that an individual beneficiary opts to tax his or her income from movable assets on the progressive scale of income tax. First resolution: approval of the 2021 parent company financial statements The Annual General Meeting, voting in accordance with the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Reports of the Board of Directors and the Statutory Auditors, approves the Report of the Board of Directors and the 2021 parent company financial statements, as presented, and the transactions reported in  these financial statements and summarised in these Reports,  showing net income of €3,860,498,991.57, versus €4,158,826,992.71 for 2020. Second resolution: approval of the 2021 consolidated financial statements The Annual General Meeting, voting in accordance with the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Reports of the Board of Directors and the Statutory Auditors, approves the 2021 consolidated financial statements and the transactions included in these financial statements and summarised in these Reports. Third resolution: allocation of the Company’s net income for 2021 and setting of the dividend The Annual General Meeting, voting in accordance with the quorum and majority conditions required for Ordinary General Meetings, on the proposal of the Board of Directors, decides to allocate the net income for the 2021 financial year, amounting to €3,860,498,991.57 as follows: No allocation to the legal reserve which already represents over one-tenth of the share capital _ Amount allocated to shareholders as dividend* (including preferential dividend) €2,596,707,105.60 Balance that will be allocated to the “Other reserves” item €1,263,791,885.97 * Including a primary dividend equal to 5% of the amounts paid up on shares, i.e. the total amount of the share capital. This amount is calculated on the basis of the number of shares forming the capital at 10 February 2022 and will be adjusted to reflect: • the number of shares issued between 10 February 2022 and the date of payment of this dividend following the full vesting of new free shares granted and giving rights to said dividend; and • the final number of shares eligible for the preferential dividend, taking into account sales or transfers to a bearer account between 10  February 2022 and the date of payment of the dividend. L ’ ORÉAL I UNIVERS AL REGISTRATION DOCUMENT 2021 403 ANNUAL GENERAL MEETING Draft resolutions and Report of the Board of Directors to the Ordinary and Extraordinary General Meeting to be held on Thursday 21 April 2022