L'Oréal S.A. ($OR)

Ladies and gentlemen, dear shareholders, dear friends, it is a great pleasure to see you all here at the Palais des Congrès for our Annual General Meeting. For me, this gathering holds a special significance. It has now been 20 years since I had the privilege and pleasure of serving this assembly, and it is now with the same emotion that I welcome you today for the 21st consecutive year. First of all, I would like to thank you for your presence and your loyalty, and I welcome all those joining us for the first time. Every year, more and more of you choose to be part of the L'Oréal adventure. We now have nearly 430,000 individual shareholders which is the largest number of our history and a remarkable increase of over 10% in just 1 year. I would also like to thank the shareholders who voted by mail and those following remotely for the live broadcast at this Annual General Meeting. Finally, I thank the members of your Board of Directors who are all present in the front row, and I would like to extend my greetings to them. I would like to remind you that this meeting is open to the public through its live broadcast on the L'Oréal website. As I say every year, it is intended to be friendly, warm and courteous as it has always been. As we know, this annual gathering is important, and we wanted to be as informative and enjoyable as possible. After the various presentations, you will have the opportunity to ask questions about any topics you would like to explore further. Our ushers are already available to collect any questions you may have on the cards provided for this purpose. And of course, these questions will be compiled before the discussion begins. Our shareholders joining us remotely may also submit their questions via the general meeting streaming platform, which is available on the lorealfinance.com website. These questions will be addressed during the general meeting based on a representative selection of the topics that have drawn a large number of shareholders' attention and within the allotted time. Priority will be given as much as possible to questions asked by shareholders present in the room. Please note that the list of shareholders present or represented will be finalized at 11:30 a.m. in order to determine the voting conditions at the end of the meeting and to keep you informed. As usual, we will start a short film. It is very short, but as you know we renew it every year. We call it our L'Oréal business cards. So in just 2 minutes it sums up the key information regarding your group. Let's have a look. [Presentation]

Thank you. I will now proceed with the official opening of our meeting. My capacity as Chairman of the Board of Directors, I will chair the meeting. These scrutineers are the 2 shareholder members of the meeting who either personally or as proxies hold the greatest number of votes who have agreed to serve in this capacity. They are Tethys represented for the purpose of serving as a scrutineer by Mr. [ Alexandre ] and Nestle represented by Ms. Béatrice Guillaume-Grabisch who serves as a scrutineer. The Chairman and the scrutineers constitute the bureau of the meeting who appoints Ms. [indiscernible] sitting on my left as Secretary of the Board of Directors. As the Secretary of the meeting, Mr. Nicolas Hieronimus is the Chief Executive Officer and he needs no introduction, Mr. Christophe Babule needs no introduction either Chief Administrative and Financial Officer. They are also present here with me. The statutory auditors are present in the room, Ms. [indiscernible] representing EY and Mr. David Dupont, representing Deloitte. Mr. [indiscernible] is also attending this AGM for the 20th time, I think, he is also attending the meeting today. No shareholder has requested the inclusion of proposed resolution or items on the agenda of the meeting. I will now ask Ms. [indiscernible] to provide us with the provisional quorum status as well as some additional information regarding our meeting.

Mr. Chairman, the shareholders were duly convened to this meeting in accordance with legal formalities. Prior to the start of this meeting, registration have not yet been completed. The provisional attendance sheet recorded the representation of [ 81.91% ] of the of the company's going shares. 1,200 shareholders are presented at today's meeting and I'd like to thank them. 90,000 shareholders have granted proxy to the Chairman and 15,560 shareholders have voted by mail. The meeting therefore, has the required quorum to pass resolutions on both ordinary and extraordinary matters. All documents required to be provided to shareholders have been made available to them. During the legal time frames the company has responded in accordance with legal requirements to request for documents submitted to it. The documents related to the notice of this meeting are available right here on the table. The documents have been deemed in order by the bureau. And since these documents have been made available to you, as usual, we will not read them in full. Mr. Chairman, the meeting is now duly constituted and may therefore validly deliberate.

Thank you, [ Emily ]. Now, very briefly, I would like to explain to you how our assembly will proceed. It is going to be very similar to the previous years. We listened carefully to your feedback to determine the topics that we could address during this assembly. The themes that you're most interested in. We send a survey to thousands of you to gather your opinions. We received a large number of responses, and we'd like to thank you for that. That is why this year, we have chosen to focus particularly on the topics that are especially relevant to you. The strategy and outlook for your group, especially regarding sustainable development and the use of artificial intelligence. As we do every year, we will begin with Mr. Christophe Babule who will present the group's economic and financial performance in 2025. Mr. Nicolas Hieronimus will discuss the 2025 performance from a strategic point of view and will present the strategy and outlook for the group for the coming years. It will also be the opportunity to discuss some of the achievements under our L'Oréal for the Future sustainability program. Mr. Samuel du Retail will outline L'Oréal strategy regarding the use of artificial intelligence and the growth potential it represents. This is a highly strategic topic. Then I will share with you my reflections on the year and the evolution of your company's governance. And I will report on the work carried out by the Board of Directors in 2025. Ms. Sophie Bellon, I would like to thank in advance, is the Chair of the Human Resources and Compensation Committee, she will provide an update on the compensation of executive corporate officers in connection with the resolutions to be voted on by the shareholders meeting. [ Ms. Emilie Thiery ] will present the various drafts resolutions, the statutory auditors will present their reports. And then of course, we will answer your questions during a general discussion. Finally, we'll proceed to the vote on the resolutions. This is a very clear agenda. And will start with Christophe, who is going to present the group's performance in 2025.

Good morning, ladies and gentlemen. Let me share with you some of the key highlights of your company in 2025. Like-for-like growth came in at 4%, marking another year of market outperformance. At 74.3%, our gross margin reached a new all-time high, up 10 basis points from last year despite the adverse impact from tariffs in the U.S.A. Our operating profit margin increased 20 basis points reaching 20.2% for the first time, record margin. And our operating net cash flow was of EUR 7.2 billion, up almost 8%. Consolidated sales increased by 1.3% crossing the EUR 44 billion mark. On a like-for-like basis, growth amounted to 4%. The change in scope was a positive 0.9%, reflecting the acquisitions of the Korean brand Dr.G the styling brand Color Wow and the premium skincare brand Medik8 as well as the impact of hyperinflation accounting in Argentina and Turkey. ForEx had a negative impact of 3.6% due to the strengthening of the euro throughout the year. As you know, your company is strengthening and modernizing its IT platform, which impacts the phasing of quarterly growth. As you can see on the left, like-for-like growth adjusted for the impact of this transformation accelerated quarter after quarter from 2.6% in the first quarter to 5% in the fourth quarter, driven by the ramping up of our innovation plan. On the right, we have the published like-for-like growth by quarter. As you can see, there is no difference over the full year between the adjusted figures and the like-for-like figures. By the end of 2026, we will have completed approximately 60% of our total IT transformation. Let's now move on to our regions. All regions posted positive momentum with growth of almost 10% emerging markets are the most dynamic. SAPMENA-SSA grew by 10.9% and Latin America by 8.3%. Growth in Europe remained very robust at 4.4% with particularly strong performances in the Spain, Portugal and Germany, Austria, Switzerland clusters. In North America, sales increased by 3.4%, accelerating strongly between the first and second half of the year. In North Asia, sales grew by 0.5%. Let's take a closer look. Overall, growth in North Asia accelerated from minus 1% in H1 to plus 2% in H2. This was driven by Mainland China, our largest market in the region, where growth went from plus 1% to plus 5%, helped by the gradual recovery of the market, especially in our Luxe division. Let's now move on to our divisions. All our divisions progress. On a like-for-like basis, they all grew and accelerated between H1 and H2. The Professional Products Division saw the fastest growth, up 7.5%, supported by the ongoing boom in the premium hair care. The Consumer Products division grew by 3.5%, driven by hair care and a clear recovery in makeup in the second half. L'Oréal Luxe grew by 2.8%, with momentum accelerating to 3.6% in the second half. And the Dermatological Beauty division grew by 5.5%, driven by both hair care and skin care. All key brands contributed and SkinCeuticals became the division's third billionaire brand. Let's move on to our categories. All categories grew each of them progressed. At 12.9%, Hair Care was the most dynamic category driven by strong volume growth. All divisions, professional, consumer and dermatological contributed. Fragrances maintained their double-digit pace at 10.4%, growing twice as fast as the market driven by Cutera brands and boosted by a very successful launch plan. Make-up increased by 3.5% with a strong acceleration between the first and the second half, particularly in North America. Hair color grew by 0.6%, driven by consumer products and finally Skincare increased by 0.4%, gradually accelerating to reach nearly 2% in the second half. Thanks to the recovery of the dermatological Beauty division, driven by its innovations. Next, I would like to share our e-commerce performance with you. E-commerce is growing by 13%. In 2025, sales in e-commerce amounted to EUR 13 billion, crossing the 30% threshold for the first time, an increase of 200 basis points compared to 2024. Let me remind you, 10 years ago, e-commerce contributed only EUR 1.3 billion or 5% of our sales. Why does it matter? First, it means that we are winning with the winners, global beauty market growth in e-commerce is 4x that in brick and mortar. Second, e-commerce is a true game changer in emerging markets, where its weight rose by 400 basis points in 2025. Third, e-commerce is not only margin accretive but also highly cash generative. Let's now move on to the income statement. As you can see in this table, 2025 was a very good year in terms of results. The gross margin increased by 10 basis points. Operating profit increased by 2.4% to nearly EUR 8.9 billion. The operating margin reached a new record of 20.2%, up 20 basis points despite unfavorable exchange rates and tariffs. Net profit, excluding nonrecurring items attributable to owners of the company, slightly progressed to approximately EUR 6.8 billion. Net profit attributable to owners of the company after taking nonrecurring items into account amounted to EUR 6.1 billion. It was impacted by the exceptional French tax of EUR 253 million and a decrease in dividends received of nearly EUR 100 million following the reduction of our stake in Sanofi in February 2025. Finally, net earnings per share, excluding nonrecurring items stood at EUR 12.71 in 2025, slightly up compared to last year. Excluding ForEx impact, the increase is 2.8%. Let's move on to the cash flow statement. Gross cash flow reached over EUR 8.3 billion. Working capital requirements improved significantly reflecting more efficient management across all its components. Investments reached EUR 1.5 billion or 3.4% of sales, slight decrease compared to 2024. Operating net cash flow amounted to approximately EUR 7.2 billion, an increase of 7.8% compared to the previous year. Our balance sheet remained robust with shareholders' equity of EUR 35 billion or 57% of the total balance sheet. The financial situation remains sound. At the end of December, net debt amounted to EUR 2.1 billion and EUR 254 million, excluding financial lease debt. The gearing ratio stood at 5.9%, the financial leverage at 0.2x based on an EBITDA of over EUR 10 billion. As you know, last year, we announced the acquisition of Kering Beaute and the increase of our stake in Galderma. Both transactions were finalized in early 2026. We estimate that our financial leverage will be less than 1x EBITDA by the end of the year, a very healthy level that allows us to seize potential new opportunities. The long-term issuer credit ratings that new group received from Moody's and Standard & Poor's remain unchanged and of great quality. This quest for robustness is ongoing. Group continued its efforts in many areas as part of internal control and risk management. In 2025, we can mention the monitoring of policies put in place for risk management related to the use of artificial intelligence, an update on fraud risks and the deployment of control systems, the monitoring of digital challenges and risks and the animation of ethical policies and culture. All of these initiatives were presented to the Audit Committee and for ethical polities and risk management to the Board of Directors. The solid performance of your company in 2025 and the quality of its balance sheet led the Board of Directors to propose a further 2.9% increase in the dividend to EUR 7.2 per share. The dividend has progressed strongly throughout the last 10 years. As you can see on the graph on the left, over the last 5 years, L'Oréal's share price has increased. This performance put us clearly ahead of our peers in the Beauty and Luxe sectors, plus 9%. Over the same period, the CAC 40 increased by 31%, driven by banking, energy and defense stocks. On the right, total shareholder return for shareholders, which is a composite measure of profitability, including both share price appreciation and income received as dividends. So you can see that at the end of December 2025 this return stood at 10.6% for over 10 years. Let's have a look at revenue for Q1 published 2 days ago. Your group is off to a great start this year, posting growth well above that of the market. In a geopolitical and economic context that remains disrupted. Sales amounted to EUR 12.2 billion, up 6.7% on an adjusted like-for-like basis and 3.6% on a reported basis. By division adjusted like-for-like growth is as follows. The Professional Products division posted exceptional growth of 13.1%. The Consumer Products division grew by 4.1%, driven by strong growth in emerging markets, notably in SAPMENA-SSA. L'Oréal Luxe recorded growth of 5.6%, supported by the continued momentum of fragrances and the gradual recovery in China. In the Dermatological Beauty division grew by more than 10% and driven by a solid innovation plan in skin care. Let's move on to growth by region. All regions posted robust adjusted like-for-like growth. Emerging markets remain the most dynamic region with growth of 10.7%. North America had a very good start at plus 7.6%, and your group continues to gain market shares, thanks to the success of its innovation. Europe remains very robust at 5.5%; North Asia posted solid growth of 4.8%, driven by China; while Travel Retail Asia remained disrupted. Now regarding our L'Oréal for the future ESG program. 2025 was a key year. The halfway point of this program we assessed our progress and learnings, refine our road maps and reinforced our commitments. We have introduced new targets addressing key material topics, including virgin plastic reduction, nature regeneration and water resilience. Let's take an example. L'Oréal reduced the use of virgin plastic for product packaging by 37% in absolute numbers compared to 2019, and our objective is to reach 50% by 2030. Finally, in 2025, L'Oréal was once again rewarded for its social and environmental performance and recognized among the best companies in the world by nonprofit organizations, rating agencies and international bodies. Thank you for your attention.

Thank you so very much, Christophe. I'd like to give the floor to Mr. Nicolas Hieronimus, CEO, who will present to you the company's activity in 2025, it's strategy and outlook.

Ladies and gentlemen, dear shareholders, I'm very happy to find you again at this general assembly meeting, a privileged moment, which reunites us each year, the great L'Oréal family. I have sincere thoughts for all our employees, business partners and all of our consumers who live in countries which are war-torn and suffer the train of tragic consequences. In this world of crises and of permanent volatility, your commitment in the long run, dear shareholders, is paramount to allow L'Oréal to approach the future with confidence and a steady heart. I wish, therefore, to express to you our gratitude for a faithful support in 2025 and in the past because 2025 was determining year for L'Oréal. We achieved solid results, reinforcing our position as the world's #1 in beauty despite the geopolitical context while transforming the group in depth. Of course, none of this would be possible without the unfailing commitment of 95,000 employees of L'Oréal, who work daily to create the beauty that moves the world. It is, therefore, for me the occasion to pay tribute to their talent, which is the beating heart of the L'Oréal adventure. Today, I'm preparing to share with you the key aspects of the performance of L'Oréal in 2025, but also to explain to you how we are transforming the group at high speed to accelerate the growth of your group. But before entering into the heart of my remarks, I'd like to thank the members of your Board of Directors, in particular, Paul Bulcke, Béatrice Guillaume-Grabisch and Thierry Hamel whose mandates are coming to their end today. And of course, our Chairman, your Chairman, Jean-Paul Agon, for his trust and his always clear cited advice. The 2025 results are the perfect expression of the resilience and the agility of the L'Oréal model. Despite the headwinds linked to trade tensions in the political and physical instability in France, L'Oréal achieved a new year of growth at plus 4% on a like-for-like basis, a pace superior to the global beauty market, which grew by approximately plus 3.5%, allowing us to reinforce our leadership and to widen the gap with the majority of our major competitors. L'Oréal's performance is all the more significant as it translated into a virtuous dynamic, which saw our sales accelerate from quarter-to-quarter throughout the year and which continues in 2025. In 2025, for the first time since 2022, all our regions, all our divisions and all of our categories were in growth. This performance rest on the combination of 3 key pillars. The strength of the multipolar model of L'Oréal; two, our multi-division category strategy; and three, the quality of the management of our profit and loss account. The first major teaching of this year is, therefore, the exceptional resilience of our multipolar model. We have an operational footprint without equal within the beauty industry with 37 factories and more than 160 distribution centers across the world, combined with the balance of our geographical footprint, the agility of our operations teams allow us to adapt in real time to the jolts of the world economy. I particularly welcome the sustained growth pace of L'Oréal in emerging markets. And today, in total, they represented 17% of our turnover and nearly 40% of sales growth becoming real growth engines for the group with considerable potential. This performance in emerging markets is mainly supported by the Gulf countries cluster, which ranked as the fifth contributor to growth in 2025 and of which we are convinced that it will maintain its dynamic after the end of a conflict. The Gulf countries are followed closely by Mexico, Brazil, engine countries of South American continent. In 2025, we also initiated a new strategy of conquest for the Indian market, which the members of your Board of Directors we're able to measure the promising perspectives during a trip organized in the autumn of which you see a few images here. The spearhead of a conquest of new consumers in emerging markets is the consumer product division very clearly, which is a pioneer in the development of accessible product innovations adapted to local cultures like the Garnier Toque Seco cream created for the needs of the Brazilian consumer and which is today marketed with success in numerous countries around the world. The other major factor of the year 2025 is the return to growth of the North Asia zone with the promising celebration throughout the year of Mainland China, where our Luxury division reached a record market share, and more generally, the good performances of L'Oréal in mature markets. In North America, L'Oréal experienced a similar dynamic with a significant acceleration between the first half and the second half. While in Europe, L'Oréal continue to outperform a robust beauty market despite high market shares with growth of plus 4.4%, supported by the development of Eastern and Southern European markets. Finally, we are capitalizing on our lead in the digital universe that we master like no other large beauty group. E-commerce was in growth in all regions in 2025 and represent today 30% of L'Oréal's turnover. Beyond the balance of the geographical footprint, the success of L'Oréal rests on capacity to implement a multi-division category strategy, which exploits the strength of each of our divisions to cover multiple categories at all price levels in all distribution channels. Say hair care, for example, we capitalize there on the striking power, the complementarity of 3 divisions to launch multiple innovations. With the acceleration of the ranges from L'Oréal Paris, Fructis from Garnier, the success of the dermatological hair care ranges, Dercos, CeraVe and Kerastase which is experiencing exceptional growth, we grew in total more than 2x faster than the market in 2025 to reach a global market share of 16%. Historical leader in hair color with 27% market share, L'Oréal continues to irrigate the market with new innovations both on the professional circuit and on the mass consumption market. And if the complementarity of the divisions is the key to success, I wish to pay a particular tribute to the performance of the professional product divisions, the place of our birth, let's say, which reached this year a record market share of 27%. In fragrances, L'Oréal is the undisputed world leader of the booming market with the entry of young consumers who are adepts of the use of multiple perfumes. In 2025, we strongly reinforced our leadership with growth of 2x superior to the market. How can one not mention the incredible success stories of Yves Saint Laurent, Armani and now Prada and Valentino, which demonstrates our unique capacity to combine the inspiration of the great Cutera brands with our own know-how in perfume creation and in marketing. And for the first time this year, 3 brands of L'Oréal rose the first 3 steps of the podium for feminine fragrances in Europe [ Libre by Yves Saint Laurent ]. This makes me really happy even snatched from channel the place of #1 perfume in the world. This is a great news, great work teams. In makeup, the depth of our portfolio in terms of price levels and architypes of women, Couture Addicts Gen-Z passing through women allows us to satisfy and recruit all beauty fans. Makeup is the category where we most accelerate the pace of our launches and our activations in the consumer products divisions and the luxury Cutera brands because it is the category which evolves at the speed of culture and fashion. This winning recipe led us to reinforce our position as a world leader with a market share of 17%. Finally, skin care is our first category at 37% of L'Oréal's turnover and presents a strong still growth potential. This growth is underpinned by a conviction that the future of skin care will intimately link beauty and health and a method and acceleration of our innovations founded on science. The success of the Dermatological Beauty division is, without doubt, the best example of it with a compound annual growth rate of 20% in skin care over the last 5 years. In 2025, all the brands of the division were in growth like SkinCeuticals, which became the third billionaire brand in euros of the division benefiting from the boom in aesthetic clinics where it is sold mostly in North America. But L'Oréal is also ideally positioned to seize opportunities in skin care across all divisions, thanks to our unique brands portfolio, which allows us to play on multiple price levels from EUR 3 for our Garnier Sorbet hydration cream to EUR 450 for Helena Rubinstein. These innovations allow us to seduce new consumers in emerging markets while accompanying our existing consumers at all ages of life. It is this multi-division strategy, which allows us to place 4 brands in its global top 5 and to be the leader of it with 15% market share. As you have heard, our 2025 overperformance is not the result of chance, it rests on the complementarity of our brands and our divisions and of course, on the acceleration of the launches of new product innovations that were marketed in 2025. I want, therefore, as is our want, salute the unequaled creativity of our marketing research and operations teams by inviting you to see again in video their most beautiful... [Presentation]

I think our teams do deserve a round of applause. This innovation plan is exceptional. I must say that because creativity and value creation go pari passu. I'd like to pay a particular tribute to our finance teams. Quality, Christophe Babule showed it to you earlier. L'Oréal released operating results represented 20.2% of our sales, that's an increase of 20 basis points compared to 2024. Like Christophe Babule showed it to you earlier, operating results represented 20.2% of our sales, that's an increase of 20 basis points compared to 2024, while ensuring the control of the headcounts and improving the efficiency of our advertising and promotional investments. Thanks to the advances in artificial intelligence, which we'll address later. This exemplary management allows us to a new progression of the dividend, which is established this year EUR 7.20. As you know, at L'Oréal economic performance and social environmental exemplarity are intimately linked. These 2 pillars are the foundation of our sustainable value creation strategy and guide our investment choices over the long term, and I'm very proud that L'Oréal is the only company in the world to have been awarded a AAA by the CDP for the tenth consecutive year. This rewards the progress of our L'Oréal for the Future program and the work of our teams. I particularly welcome the fact that L'Oréal crossed, in 2025, a historical milestone by now reaching 100% renewable energy for its operated sites and its boutiques. The solidity of our financial and extra financial performance is testimony to the reliability of our group even in the periods of major turbulence. This solidity is a key asset for L'Oréal, while we are entering a new era of profound technological, economic and geopolitical mutations, we have the necessary room for maneuver to invest in the transformation of L'Oréal and create the conditions for future growth. As you might have understood, we are resolved not to endure the transformations, but to come, but to contribute to shaping them by investing in the future. It is L'Oréal's DNA to seize what is starting, and we are determined to convert each challenge into an opportunity. Our objective is clear and unchanged to create value for the shareholders, the employees of L'Oréal and for society as a whole. To reach it, we are accelerating today more than ever the transformation of the group by carrying out massive investments in several strategic domains; acquisitions of new brands, which completes our coverage of the beauty market, to scientific research and innovation at the service of our performance and the deployment of new technological tools in the first place, of which is artificial intelligence. In terms of acquisitions, 2025 was a major year. You know since its creation, the group has built itself through targeted acquisitions, which comes to nourish its growth over the long term. Thus over the last 10 years, external growth has contributed to more than 1/4 of the group's total growth. In 2025, we strongly strengthened our coverage of the beauty market, starting with the acquisition of the Korean skincare brand Dr.G, one of the leaders in the promising segment of K-Beauty with the acquisitions of Medik8, Color Wow selective high-growth brands endowed with innovative technologies that we will deploy globally and they also post strong growth. L'Oréal also consolidated its leadership in luxury beauty with the license of the fashion brand Jacquemus, and especially the acquisition of Kering Beaute, which represents a major growth opportunity in view of our unparalleled expertise and development of Cutera brands in beauty. This acquisition allows us not only to exploit the licenses of 3 of the most beautiful fashion brands in the world, Bottega Veneta and Balenciaga and eventually Gucci, but also reinforces our presence in the fast-growing segments of [indiscernible]. L'Oréal's brand portfolio today, the richest and most diversified in the beauty industry. L'Oréal is the only group capable of answering to the entire spectrum of consumer aspirations. Thanks to the complementarity of its palette of brands, which covers all the nuances of beauty. Concerning our investments in scientific research, the year 2025, also set apart as a record year so much so that L'Oréal was recognized by Fortune magazine as the most innovative company in Europe, all economic sectors combined. This recognition reflects the excellence of our 4,000 researchers and 725 patents filed in 2025, the highest number in the history of L'Oréal. The scientific excellence comes to feed our breakthrough innovations put on the market and our leadership in beauty tech once again rewarded by 8 prices at the CES in Las Vegas. At the same time, we reinforced an extended innovation ecosystem through partnerships with institutions at the forefront of global research, including the Institut Pasteur in particular, in biotechnologies, artificial intelligence and even aesthetics, we're a scientific partnership with Galderma. The science is also an engine of the environmental transformation of L'Oréal. Last year announced to you the launch of Laccelerator. The sustainable innovation program endowed with EUR 100 million over 5 years, which was designed in partnership with the University of Cambridge has the ambition to identify and deploy on a large-scale innovation solutions coming from pioneering companies. Out of nearly 1,000 applications received, 13 companies were selected to participate in the first promotion of this program, which must allow L'Oréal to remain at the forefront of its sustainable transformation. Finally, 2025 was a record year of investments in technological and IT tools with more than EUR 1.5 billion. These investments allow the harmonization of our 20 IT systems, of our data and processes to allow the creation of the unified operational language on scale of the group. They also contributed to reinforcing continuously the resilience of our supply chain and our operations which must adapt in real time to the hazards of international context always more unstable. More generally, we have the objective to integrate the best technological tools at the heart of our organizations and our ways of working to make them a long-term competitive advantage for us. The catalyst of this transformation will be a mastery of AI to seize all the potential of this technology. I created a dedicated structure led by Samuel du Retail, General Manager in charge of AI data Insurance Services, which -- who will present to you in a few minutes, our strategy in this field in partnership with the greatest global technological leaders. L'Oréal's AI strategy is holistic and ambitious. It aims to integrate AI at all levels of the company from relationship with the consumer to the whole of our professions while valuing the developments of our employees and creating value for our shareholders. Of course, all these investments for the future fit into the one L'Oréal transformation agenda, which gives an overall consistency to the transformation of group in the beauty market, which is more and more fragmented. The majority of our historical competitors struggle to adapt to the speed of evolution of the beauty universe in perpetual mutation where many in these brands multiplies a femoral as they are innovative in the modes of interaction with consumers. In this context, L'Oréal has all the assets to win the alliance on this -- of the scale capacity of our large international group and the agility of a start-up inherited from the entrepreneurial spirit of our founder. The one L'Oréal road map has, therefore, a simple ambition to reinforce these 2 key aspects of the L'Oréal model, scale, capacity and agility. The other aspect of the one L'Oréal transformation and perhaps the most important is it's cultural dimension because beyond technologies and tools, a true asset of L'Oréal resides in its living forces and the extraordinary richness of the talents that compose it in the 4 corners of the world, one L'Oréal capitalizes on the spirit of solidarity and collective intelligence, which rains within the group, which one could summarize by the famous phrase, one for all and all for one. Today, I'm convinced that L'Oréal is stronger than ever and in the best position to accelerate sustainably its growth. As you've been able to observe, L'Oréal continued its growth acceleration momentum in the first quarter of 2026 with sales increasing by plus 6.7% on a like-for-like adjusted basis. This confirms the dynamism of beauty and of L'Oréal's ability to continue to outperform, and this is Something I'd like to stress. Beauty is today the most commented upon category on social networks or conversations, tutorials and expert opinions continue to multiply. While the quest for health and longevity is lowering the consumption of other categories, it does increase the attention paid to one's appearance. Look good, feel good as we say and it boosts the desire for beauty. The beauty market is indeed stimulated by several major and lasting fundamental trends, which are our future growth drivers for L'Oréal. First, and this is key, the number of consumers is constantly increasing under the combined effects of the emergence of young middle classes eager for beauty in emerging markets and the extension of light spans in mature markets. In this context, L'Oréal objective remains unchanged to reach 2 billion consumers in the next decade with priority given to the recruitment of new consumers to lead this conquest and accelerate our growth in units in the years to come, we can count on, first, our unique offering in terms of formats and prices, which offer accessible brands like Garnier, Maybelline and Mixa but also recruitment formats for our most premium brands in fragrance as in skin care. And of course, our strength in e-commerce, an extremely dynamic channel, particularly in emerging channels -- in emerging markets, which we constantly outperform. In parallel beauty routines and protocols are becoming more sophisticated, creating new opportunity for value growth. Let's take hair care, for example, the increase in population diversity creates new needs. Simply consider that the textured hair population expected to grow by 400 million over the next 15 years. This type of hair requires more sophisticated, more numerous and higher-value products. We are responding to the explosion in needs for sophisticated hair treatments with multiple innovations across our brands, but also with our acquisition of Color Wow, whose original and unique technology propels us directly into a position of global leadership in the styling segment, which has seen strong growth recently. Body care is part of the same dynamic of specification. We are, therefore, accelerating the development of higher-value body care, whether medical with CeraVe and Mixa were scented with Cutera hand creams and products from the new NYX body fragrances, not escaping the premiumization trend. To meet the rise of pouch Parfumerie, we've built an offering that covers the entire spectrum of the exceptional with Creed with the new ultra high-end jewel of the Luxe division L'Oréal reinforces its offering composed of the private collections of our [ Cutera ] brands. Another major phenomenon is the strengthening of the culture and local dimension in beauty. With the parallel emergence of regional hubs of influence with global reach here again, L'Oréal is in a position of strength. It is our historical expertise to internationalize our brands while guaranteeing their resonance and relevance in each culture, much like L'Oréal which integrates Chinese New Year celebrations as well as the Diwali Festival in India into its universe. But we also seize these rising regional currents, such as K-Beauty with the acquisition of Dr.G the #1 skincare brand in Korea and 3CE with the first global Korean makeup brand. Finally, we're investing in Omani Beauty and Chinese Beauty with stakes in fragrance brands, Amoue and to summer. Finally, and this is undoubtedly the strongest of all trends. I want to talk about longevity, the obsession with longevity and especially with aging better is fundamentally redefining the consumer journey in skin care emphasizing preventative health and holistic approaches. Our massive investments in research give us a head start, and we are ideally positioned to offer the most advanced beauty protocols. The most sophisticated ones, including diagnostic tools like cell by print, topicals like the new Lancome longevity cream with Urolithin A which has just been launched in the market. Beauty tech devices like the lead face mask that we presented at the CES in Las Vegas this year and beauty supplements, which we will extend to other brands this year and into the future. Faithful to a matter of seizing what is starting or seize the moment we are fully aligned with this trend through our advanced research with a future a joint venture with Kering around wellness and longevity, but also by pursuing our exploration of aesthetics through the increase of our stake to 20% in Galderma. Beauty consumers indeed have a growing interest in aesthetic procedures, which have seen strong growth in recent years globally. As you've heard, L'Oréal is ideally positioned to seize all the opportunities offered by the beauty market and sustainably accelerate its growth. To conclude, allow me to share a conviction with you. In this world of perpetual upheavals, one thing remains invariable, the essential role of beauty for mankind. This deeply human quest is the secret to the vitality of the beauty market in perpetual expansion, which today extends new services, new categories and new technologies that are all growth opportunities for L'Oréal. For over 116 years, we've moved forward with a thirst for innovation that remains intact, ready to meet the beauty aspirations of over 1 billion consumers across the globe. As I said, we want to serve up to 2 billion consumers on the long term. L'Oréal's approaches the future stronger than ever and confident in its ability to continue to outperform beauty market. The challenges of the world in motion do not paralyze us. On the contrary, to stimulate L'Oréal's ability to reinvent itself around a unique combination of scale and agility, which is a major competitive advantage in our time. However, our most precious competitive advantage will always remain our collective, our group. It is the commitment of our teams and the deeply humanistic human-centered ethics of L'Oréal that cement our current and future successes. This foundation of values which continue -- will continue to guide us relentlessly their shareholders to write the next chapter of L'Oréal's Adventure and pursue our mission to create the beauty that moves the world. Thank you.

Congratulations, Nicolas. We're now going to move on to the next topic, a key topic that was introduced by Nicolas, artificial intelligence. So I'm a bit lost with my documents. Thank you, [ Emily ]. We're going to listen to Samuel du Retail, who's been with L'Oréal for a long time, and he is an expert in AI. Samuel is the General Manager of artificial intelligence, data and shared services. It's a role that was designed by Nicolas to ensure operational excellence in the group-wide deployment of AI and data as well as in our shared services centers. Just like many other L'Oreal employees, Samuel, brings extensive experience within the L'Oreal Group, 30 years of seniority. It's not huge, but it's not too bad either. So he's had a Korean finance as a CFO of the Consumer Products division, he served as General Manager of the Consumer Products division in China and General Manager of South Korea, which he led with great success, achieving remarkable results and consistent market share gains across all 4 divisions. He will now outline the fascinating opportunities offered by the use of AI.

Thank you very much, ladies and gentlemen, dear L'Oréal shareholders, it is a great player to speak with you today to share a new chapter in our story. The profound and exciting transformation occurring in the heart of L'Oréal, artificial intelligence. AI represents a paradigm shift in just over 2 years, OpenAI, a global leader in AI models has reached more than 900 million users. It took 12 years for the Internet to reach the same milestone. In 2025, 39% of consumers were already using LLMs to learn about products. And as many as 54% among those aged 20 to 40. 47% trust these models more than friends and family. Previously, their preferred sources of advice as they provide highly structured and well-argued answers. On ChatGPT alone, more than 280 million messages related to health and beauty were exchanged every week in 2025. The good news is that we are in an excellent position to enter this new era. As early as 2010, our group mobilized its entire organization to digitize our ways of working as well as our interactions with consumers and clients. With Beauty Tech, we are going even further, particularly through the categorization and structuring of the company's most critical data. We are consolidated 115 years of the world's largest beauty information database, 17 terabytes of proprietary data covering the 8 key areas of our business, leveraged by our 8,000 experts in technology and digital. These essential preparatory steps now offer us tremendous opportunities because without well structured data and digitized processes, large-scale AI is simply not possible. Building on these strong foundations, our ambition is to become one L'Oréal powered by AI with teams augmented by AI across all our activities. We have structured our acceleration around 3 pillars: AI for our consumers, AI for our business lines and AI for our employees. Let me share a few examples among the many AI use cases at L'Oreal. Let us begin with AI for our consumers. Many of us have already changed our consumption habits in recent months. We used to search through search engines or our favorite e-commerce sites. Now AI invites us into a conversation within large language models like ChatGPT by OpenAI or Gemini by Google, whose capabilities improve every week. Let's try an example together to find sunscreen product using a prompt. "I have fair skin and I'm heading to the Basque Coast this weekend. What sunscreen would you recommend?" AI recommends 2 products: Garnier Ambre Solaire Super UV 50 for the city and Vichy Capital Soleil UV Aqua 50 for the beach. Our portfolio of highly recognized brands, well differentiated, clear and explicitly stating their benefits is a major asset. Our products, the performance of our formulas and ingredients, all scientifically documented are signals that AI systems identify and amplify. By pioneering beauty diagnostic platforms, BeautyGenius and [indiscernible] are also powered by AI. It's self-fueled by our proprietary data. Next, we want to accelerate AI for our business lines, already and increasingly many of our employees across all the departments no longer work alone. A personalized AI agent is embedded in their tools to support them in their daily tasks. Here are a few examples among many others. Our online beauty advisers worldwide engage in 80 million individual conversations per year, either orally or in writing. We have developed an AI agent that detects the nature of the consumer's request, gathers relevant response elements in the appropriate language automates response, phrasing and delivery. Responses are, of course, supervised by advisers. This human AI partnership enables responses that are 3x faster and more appreciated by consumers. Advisers can focus more on meaningful interactions and spend up to 80% less time administrative tasks. A visual recognition agent helps our sales representatives in stores, verify product availability and detect potential stock shortages. This reduces verification time by over 50% with 99% reliability. A documentary AI agent enables more than 10,000 users in our research and marketing teams to securely access over 100,000 proprietary marketing studies across 70 countries. The agent synthetizes relevant reports on a given topic, it identifies global consumer trends, and it's very valuable for our international marketing teams. For our marketing teams, we've also created a tool enabling them to generate brand images and video securely, CreAltech. These designs must comply with our ethics principles, especially inclusion, we do not allow AI generated human faces for advertising purposes. However, our creative teams can stage products, textures and ingredients in just a few minutes and with just a few prompts. Some partnered agencies also use this technology to create higher quality visuals at a lower cost. AI is also significantly accelerating our research and innovation teams in how they understand consumers, discover new molecules and develop new formulas. AI allows us to create a digital hair that reacts to active ingredients similarly to its physical twin, enabling highly reliable predictions on new formula benefits. Of course, the best results are validated through physical testing, always with human supervision. In just 4 years, we have tripled the number of molecules, tested and reduced development time by factor 4, making research and innovation more precise and faster. These agents already exist. We're working to mainstream them and continuously improve their performance. AI helps free our teams from repetitive and low-value tasks. Collectively, we can be more productive and we can unlock new areas of value creation. These skills in using AI require intensive training. And this brings us to our third acceleration pillar. AI for our employees, there should be no better consumer goods company than L'Oréal to learn and grow with AI. 73,000 employees have already been trained in degenerative AI module for all. All of our mandatory training programs have been enhanced with an AI component. And we're taking it a step further with the launch of our AmplifAI program in May, it's a comprehensive self-assessment tool that allows everyone to identify their AI knowledge in the areas where they need to improve. Our goal is for 40,000 employees to have completed the self-assessment by the end of the year. To support them, we have developed a powerful and secure proprietary conversational model, L'Oréal GPT. It allows us to choose among the best models on the market without depending on any single one. We've recently celebrated L'Oréal's GPT's second anniversary. Over 56,000 employees have access to it. With 21,000 using it at least once a day and over 1 million conversations take place each week. We continuously enhance it with new features. Now we can optimize our office tools, spreadsheets, presentation software and internal messaging systems. Recently, we introduced companions to L'Oréal GPT. It's a safe internal environment, each employee can create their own personalized AI, a companion to help them with writing, brainstorming, project analysis, translation and planning. Adoption has been strong. Over 22,000 individual companions have already been created with 254 broader companions under business governance. Last but not least, we are committed to responsible and supervised artificial intelligence. We adhere to the highest standards in terms of personal data protection. We work to address potential algorithmic biases to ensure our systems are more inclusive and work effectively for all skin tones and hair types. We measure the energy consumption of our technologies and prioritize the most energy-efficient conversational models. We work with data center partners who prioritize low-carbon energy sources. The logic which is sometimes complex. The logic behind algorithms is broken down so that it can be understood by those who use them. AI serves humanity, but humans must remain in control. As you can see, the new era is opening before us, a new field of possibilities dedicated to our purpose, creating beauty that moves the world. AI strengthens and accelerates our innovation capabilities and enriches the beauty conversation with our consumers, making it more personal, informed and intimate. This technology a source of productivity and creativity is not meant to replace the women and men at the heart of L'Oréal's success. The goal is to empower them in driving accelerated growth. Thank you very much for your attention.

Thank you very much, Samuel. As you can see and as you already knew, artificial intelligence is the next revolution, it has already started, and it is L'Oréal's next revolution. Faithful to what we do, seizing the moment, it's something that we are embracing with great enthusiasm. As I remember, we were digital pioneers. And once again, we want to be leaders when it comes to using AI for L'Oréal. Now it is my turn to speak. Ladies and gentlemen, dear shareholders, as I've already said, it has been 20 years since I first had the pleasure of addressing you to share the best of L'Oréal and the remarkable growth of your company, which the vast majority of you have witnessed. For those of you who attended the AGM in 2006, I'm not going to ask you to raise your hand, that will be embarrassing, but I think there are a few of you in the room. In 2006, remember, we had 18 brands, today we have 40. Our revenue was EUR 14.5 billion compared to EUR 44 billion last year. Market capitalization was EUR 41 billion compared to EUR 200 billion today. The share price key figure was EUR 62 for the 2006 AGM, and this morning, I mean, 5 minutes ago, it was EUR 372.5. The dividend has risen from EUR 1 to EUR 7.2 and more than 52,000 employees were part of the L'Oréal adventure in 2006, there are now more than 95,000. Twenty years ago, I shared with you the reasons to believe in the L'Oréal model. These figures and history have proven it. And I believe in them even more deeply today. We have reinvented ourselves while preserving the very nature of the L'Oreal spirit, passion, entrepreneurial drive and the pursuit of excellence. Another pillar has remained intact. The quality of the bond that unites us. We had approximately 2,000 registered shareholders in 2006, and I am delighted that there are now more than 65,000 of you out of a total of over 430,000 individual shareholders. Your enthusiasm and loyalty honor us as much as they inspire us to do better. In a world brought with tension, this moment of sharing and looking toward the future is more essential than ever. And I hope that through the various comments made, you can feel that your company remains driven by tremendous momentum. The strength of the L'Oreal model is within us, more vibrant than ever. It is this strength that enables us to weather the storms of a complex global environment. It propels us toward our destination with consistency and loyalty to our values. 2025 was a year of change, transformation and preparation for the future. Major strategic initiatives led by your CEO, with the full support of the Board, have been launched. Nicolas has presented them to you in detail, but I would like to revisit some of them because they are what makes the L'Oréal model so unique. First, our obsession with innovation, which has been our top priority from day 1. L'Oréal was built on the belief that imagination is the only limit to the beauty market and that quality and performance always matter most to consumers. This obsession drives our growing research budgets and in 2025, a record investments in technology. Our brand portfolio next. It sets L'Oréal, a part in the industry, and it has grown even stronger with our recent major acquisitions. I fully believe that external and internal growth feed off each other and multiply our potential. And of course, our global footprint and local relevance ensure future growth drivers. And we are ready to seize every opportunity that present. While preparing for the future, your company demonstrated its resilience in 2025 within a complex environment. L'Oréal has cemented its position as the world's #1 beauty company by widening the gap with its major competitors continuing its growth and strengthening its margin. This outperformance confirms once again the strength of our model, which consistently creates value. The Board of Directors has decided to propose a dividend of EUR 7.2, an increase of 3% compared to 2024. So over the past 20 years the dividend has increased sevenfold. For our registered shareholders who have held shares for more than 2 years, the dividend amounts to EUR 7.92. Your loyalty is the strongest work against the turbulence of the world. That's why we always strive to reward it over the long term. Over the past 20 years, your investment has appreciated significantly. Your initial capital has increased 8.5 fold and the total return has averaged over 11% per year. Dear shareholders, you will be pleased to learn that together with our employees, you hold a larger share of the free float that French institutional investors. I would like to sincerely thank each and every one of you. As the Chairman of L'Oréal, I see this as a sign of your trust in our governance pioneering strategy of dual excellence in our business model. Rest assured that we are working tirelessly to earn it. Our dedicated team that you know very well, channels all its energy and creativity into serving you by opening the doors of your home to let you experience L'Oreal from the inside through our extraordinary events, for example, which immerse you in both the excellence of our sites and the history of our business from the [indiscernible] to the state-of-the-art factories, including VivaTech, we fostered this connection through educational initiatives to make the stock market accessible through partnerships with engaged content creators and through our noble presence at the Paris Investor week. We come to meet you all across France. Remember, at last year's AGM, a shareholder requested a meeting in Tolouse. Well, we weren't there on September 22, but not just in Tolouse, obviously. And I would like to take this opportunity to thank the members of the advisory committee for their sound advice, which helps us to better serve you. Our financial communications were recognized with numerous awards in 2025. I'd like to commend the outstanding work of the teams who go above and beyond every day to keep you informed. And as Nicolas said, if we cut our course in 2025, it is thanks to the strength of character of our 95,000 employees starting, of course, with your CEO, Nicolas Hieronimus whose determined and inspiring leadership gives the energy to transform together with his executive committee are present today, they have blazed new trails to combine growth, market expansion and the power of technologies that are already shaping the future. L'Oréal's boldness has a face that of our employees. Each of our successes bears the mark of their unique spirit, their solidarity and agility. Our teams are fully aligned with our ambition and share that extraordinary resilience that is key to succeed in a challenging and uncertain world. On behalf of the Board of Directors, on my own behalf and on yours, I would like to thank and congratulate them most warmly. And I would like to tell them how proud I am of their ability to adapt while upholding our values because when it comes to responsibility, our commitment to action remains unwavering as evidenced by our steady progress. As Nicolas pointed out, our environmental leadership has once again been recognized, and this recognition means a great deal to us. because it comes from the CDP, which is a fully independent global authority, the global reference. We have exceeded 5 years ahead of our schedule. Our goal of helping 100,000 people from disadvantaged communities find employment. And more than 5 million people have been supported globally through our brand's social engagement programs. Of course, we will continue to step up our efforts to support even more people. Finally, the L'Oréal Foundation is more committed than ever to advancing women's place in society. It's a fight that requires constant vigilance, particularly among the youngest generations. In 2025, we announced that our -- for girls and science program, which has been active in French high schools for over 10 years, will expand to an international scale, thanks to UNESCO's support. Dear shareholders, I hope you share my belief that L'Oréal will continue to forge ahead no matter what. Your company is driven by its core values, sustainable responsible value creation, scientific excellence, the focus on people and a commitment to setting an example while turning every transformation into a new source of momentum. I have also trust in our people all focused on the same goal, inventing the future of beauty with high standards and responsibility. Thank you. Me, more once more and now speak about governance every other member of the Board, I'm convinced that deeply that our governance semantics sustainable and plural is our strategic strength over the long term and an essential source of value for L'Oréal. It is our compass in a complex world. Your company can count on a highly committed Board of Directors composed of directors fully mobilized in the interest of the company, its shareholders and all its stakeholders. Your Board of Directors, which I have the honor of chairing, is very proactive and particularly committed. In 2025, the Board met 8 times with an exemplary attendance rate of 99.4%. It's hard to improve this number. Beyond the figures, it is the depth of our reflections and the density of our discussions within the board that I wish to highlight. The Board fully played its role in defining the group's strategic orientations and examining its development opportunities in this context, 2025 was a pivotal year. The Board analyzed and approved several major acquisition projects including Kering Beaute, Color Wow, Medik8 as well as the increase in the stake of Galderma. These transaction strengthened the company's position in high value-added segments. The strategic discussions also focused on development in key markets such as China and the U.S. The exploration of adjacent territories through research and innovation, particularly issues related to longevity and digital marketing with particular attention paid to the deployment of reliable and responsible AI, like Samuel mentioned. The Board's annual seminar was held in India as you saw last October, and it was an opportunity for directors to deepen their knowledge of this strategic market on the ground and to analyze the group's future performance drivers in this region. Geopolitical impacts, digital transformation analysis of the L'Oréal for the Future program, Human Relations and ethics were also at the heart of the Board's attention. As you know, the decisions we take are largely based on the in-depth work of our 4 committees. They make a total of 23x in 2025 with an attendance rate of 100%. You cannot top this. I would like to acknowledge before you, there is central contribution of quality of their work. First, the Strategy and Sustainability Committee, this committee, which I chair, is at the heart of the analysis of L'Oréal's strategic outlook. It examines in detail the performance of brands, product launches and acquisition projects. It is also at the helm when it comes to monitoring the progress of the L'Oréal for the future sustainability program, particularly the climate strategy. The Audit Committee then of -- this committee chaired by [ Jacques Ripoll ] reviews the financial position and the risk mapping of the company. It was particularly involved the main issues and prevention program related to cybersecurity risk as well as sustainability matters notably in connection with the monitoring of the implementation of the CSRD. The Nominations and Governance Committee. This committee chaired by Patrice Caine considered the composition of the Board and its committees supervised the annual assessment of the Board and the review of succession plan for the Chief Executive Officer and the Chairmanship. It also ensured the ethics of L'Oréal's practices, particularly in relation to artificial intelligence. The Human Resources and Compensation Committee at last chaired by Sophie Bellon. This committee made proposals regarding the compensation policy for corporate officers, the assessment of the CEO's performance and reviewed HR policies, including the diversity, equity and inclusion policy, the management of transformation of employees, skills and the sixth worldwide employee share ownership plan. I would like now to share with you the upcoming changes in the composition of your Board in line with the end of their positions within the Nestle group, 2 eminent members of the Board have expressed their wish to end their term of office as Directors at the close of this meeting. First, Mr. Paul Bulcke, Vice Chairman of the Board and former Chairman of Nestle. If I may, dear Paul, you've embodied the strength, stability and mutual trust of the relationship between L'Oréal and Nestle. This historic bond, which we -- which you were the guarantor is an essential pledge for our long-term vision for more than 10 years. You've been a pillar of our Board. Your involvement has been complete and total as shown by your active participation in 3 of our 4 committees. You've left your mark on almost all of our work through your exceptional involvement. What we have shared alongside you is the art of combining the global strategic vision with a very fine understanding of consumers on every continent. Your contribution has been decisive driven by your strong taste for innovation and breakthrough technologies, but also by your uncompromising standards in matters of social and environmental responsibility in particular. Beyond your involvement, I want to salute your mindset, your reflections have been very valuable to us in its growing subjects in all their complexity. You have this rare talent of knowing how to question the status quo of inviting us always with kindness to shift your perspective in order to explore new possibilities. Dear Paul, on behalf of the Board of Directors and on my own behalf, I would like to express our deepest respect and a full gratitude for the remarkable quality of our commitment and contribution to L'Oréal. Bravo. Madam Béatrice Guillaume-Grabisch is also stepping down, after 10 years of outstanding commitment, she's a scrutineer, see her in red, very clearly on stage. After 10 years of remarkable commitment to the work of the Board and the Audit Committee, I would like to particularly acknowledge the quality of her advice, her active contribution for me as well as the richness of her expertise, notably in marketing and recognized skills in steering HR and IT transformation, these qualities have been major assets in the fulfillment of our duties. I'd like to extend to her my sincerest thanks for a constant involvement of her high professional standards and the quality over the exchanges we have shared over the years. Thank you very much, Béatrice. It is now for this meeting to decide on the changes to the composition of your Board. The Board of Directors has decided to submit for your approval the appointment of 3 new directors. Following Nestle's proposal and on recommendation of the Nominations and Governance Committee, the Board first proposes the appointment of Mr. Pablo Isla, last October, he was appointed to succeed Paul Bulcke as Chairman of the Board of Directors of Nestle. I invite you to get to know him on screen.

[Foreign Language] I am a lawyer by training, and I started my career as [indiscernible]. After that, I had different positions in the banking sector and in other companies. I joined Inditex in the year 2005 as Vice Chairman and CEO. And then in the year 2011, I became Chairman and CEO of the company until the year 2022. Inditex is the parent company of brands so well known as [ Zara ] Massimo Dutti, Bershka. During all those years together with the founder of the company, Amancio Ortega and of course, with the teams all across the world, we were able to achieve significant growth year after year. I feel very proud about different things. But if I would have to mention too, without any doubt, the first one would be how we were able to achieve the integration between the digital and the physical world, keeping the essence of the company. And the second one is that all this growth was always having in mind that we needed to have sustainable growth in the company. I joined the Nestle Board in the year 2018 and then I became Vice Chairman of the company in the year 2024. And since last October, I have the honor to be the Chairman of Nestle. I have always admired very much L'Oréal. I have always followed L'Oréal strategy, L'Oréal culture, L'Oréal values, I have always considered this company very, very close to me from many different points of view. The idea of having a global ambition, but at the same time, having a local approach, also combining the digital and the physical work, having always the consumer, the customer at the center of every decision. And I have always admired very much L'Oréal values such as respect, reliability, taking care of the communities in which the company operates. I believe very much that success for our company is not only having good results. I think L'Oréal is an incredible example of that, having very good results and at the same time, very strong values and very strong corporate governance. I would be dear shareholders extremely honored if you decide to elect me as Board member of the company. I would love to be a very active part in the L'Oréal journey. Merci beaucoup.

We have understood with an exceptional career. Notably, as Chairman and CEO of Inditex, the mother entity of Zara. Mr. Pablo Isla will bring his recognizability, combine transformation and international growth as well as his expertise in governance. His expertise in e-commerce will also be a major asset. Subject to approval of this appointment, which I hope you will move forward with. He will become Vice Chairman of the Board and alongside Mr. Jean-Victor Meyers. The Board also proposes the appointment of Mrs. Anna Lenz, who will also address you also.

[Foreign Language].

I'm delighted to welcome to the Board, madam Anna Lenz, she will bring the full richness of her versatile career and the cross-functional expertise. It's an exceptional career, 30 countries, 6 languages in which you're affluent. Mathematics to HR, HR to finance. It's hard to tap this outstanding career. We will be delighted to welcome you within the Board, Anna. Finally, the Board of Directors proposed the appointment of a new independent director, Madam Christel Bories, who will also introduce herself.

[Foreign Language].

I welcome to the arrival of Madam Christel Bories to the Board. Chairwoman of Eramet and leading executive. She will bring to the Board her ability to steer deep transformations as well as her knowledge of industrial value chains across all continents. The Board of Directors also proposes the renewal of 2 terms of office as Directors. First, the term of office as Director of Mr. Patrice Caine, Chairman and Chief Executive Officer of Thales. He's been a Director of L'Oréal since 2018, Chairman of the Nominations and Governance Committee and a member of Strategy and Sustainability Committee. Mr. Patrice Caine is an independent director, who's very much involved in work and discussions of the Board and the committees of which he is a member. In addition to his strategic vision, his understanding of major geopolitical issues and his industrial expertise, he brings to the Board his in-depth knowledge of new technologies and cybersecurity. Over the 4 years of his term, his attendance at Board meetings has been a 97% and 100% for the committee. Finally, you'll also be asked to decide on the renewal of my term of office as Director subject to approval of this renewal. The Board of Directors will reappoint me as Chairman of Board of Directors or so, I hope should you place your trust in me. I wish you -- wish to assure you my full commitment to chairing the Board's work and of my total determination to serve the definition of L'Oréal's development strategy. Finally, the Board is preparing to welcome Ms. Catherine Olivry, as director representing the employees. She joined L'Oréal in 1989 within research and innovation and succeeds Mr. Thierry Hamel, whom the Board thanks warmly for the quality of his participation. Mr. Benny de Vlieger remains the second director representing the employees. If the meeting approves the proposed candidates, Mr. Pablo Isla would join the Strategy and Sustainability Committee and the Nominations and Governance Committee. He would also join the Human Resources and Compensation Committee, as would Madam Catherine Olivry, Director of representing the employees. And Madam Anna Lenz, who joined the Audit Committee, the Board of Directors would be then composed of 18 Directors, 40% women and 56% independent directors. More than ever, I'm convinced that the complementarity of expertise, freedom of judgment and breadth of perspective of directors are fundamental to deciphering the complexity of our challenges and shaping together future of L'Oréal. I now give the floor to Madam Sophie Bellon, Chair of the Human Resources and Compensation Committee for the presentation of the resolutions relating to the compensation of executive corporate officers. Madam Bellon you're on.

Ladies and gentlemen, dear shareholders. As every year, the Annual General Meeting is called to approve on the one hand, the components of remuneration pay package to the corporate offices paid or granted 2025 as required by the remuneration policies you approved. And on the other hand, the 2026 pay packages from which the components on the remuneration will be paid or granted to the directors and corporate officers as a chairwoman of the Human Resources and Remuneration Committee, I will present these components of remuneration. First of all, for 2025, you are called to vote on the pay package paid to Mr. Agon as Chairman of the Board of Directors. In 2025, the compensation of Mr. Agon is exclusively composed with a fixed annual amount of EUR 950,000 to the exclusion of all any other compensation regarding the components of compensation paid or granted in 2025 to Mr. Hieronimus as CEO. His compensation is as follows: fixed annual remuneration of EUR 2.3 million and a target annual variable compensation of EUR 2.6 million, with a maximum of EUR 3 million or 130% -- 130.4% of the fixed compensation in case of outperformance compared to the set objectives. The objectives and weighing are displayed on the screen. The Board of Directors assessed the performance of Mr. Hieronimus and has set the payment rate at 106.2% of the target bonus i.e. 102.1% for the financial criteria and 112.4% for the nonfinancial and qualitative criteria. Subject to the favorable vote of this resolution, Mr. Hieronimus would be awarded an amount of EUR 2,762,000. The total of the fixed and annual variable payment package of Mr. Hieronimus for 2025, therefore, amounts to [ EUR 562,000 ]. The Board of Directors also decided to grant 20,000 performance shares to the Chief Executive Officer for 2025. Then regarding the compensation policies of the directors and corporate officers. Regarding the pay package policy of the Chairman of the Board of Directors, applicable to Mr. Agon for the year 2026, the Board of Directors renewed the compensation policy applicable to the Chairman of the Board of Directors a fixed remuneration of EUR 950,000 to the exclusion of any other components, no variable compensation, no performance share, no compensation as director. You are then called to approve the compensation of the CEO applicable to Mr. Hieronimus for the year 2026. The Board of Directors renewed the compensation policy applicable to the CEO. You can see the main lines displayed here on screen. This policy balance between short-term and long-term compensation. The compensation of Mr. Hieronimus is composed of a fixed compensation and annual variable compensation and the grant of performance shares, 77% of this compensation is subject to performance conditions. Mr. Hieronimus' fixed compensation remains set as EUR 2.3 million. The target annual variable compensation remains set as EUR 2.6 million and could reach up to 130.4% of the fixed compensation in case of outperformance compared to the set of objectives. The Board of Directors has chosen to renew the same balance between financial and nonfinancial criteria and they are here with displayed on screen. These criteria are directly linked to L'Oréal's strategy and integrate the sustainable development program for 2030 L'Oréal for the Future. Finally, the Board of Directors may decide to grant performance shares to the Chief Executive Officer, this grant would be between 50% and 60% of the maximum annual compensation. Performance conditions would apply to 100% of the granted shares. I remind you that in addition to financial performance criteria, which are being renewed, nonfinancial performance criteria have been introduced since 2022. Finally, regarding the Directors' compensation policy, the Board proposes to the AGM to slightly review the maximum amount of the annual compensation for Directors currently set as EUR 2 million and to increase it to EUR 2.1 million. The goal is to take into account the increase of the number of Directors in view of the appointments submitted for approval to the AGM as well as the evolution of the compensation for members of the Audit Committee. The latter would change as follows: the variable portion of the compensation linked to attendance would increase from EUR 20,000 to EUR 25,000 as the number of meetings held by the committee has increased. To conclude, I would like to thank the members of the Human Resources and Remuneration Committee for their active participation and commitment. Thank you for your attention.

Thank you very much, Ms. Sophie Bellon. I will now ask Ms. [ Emilie Thiéry ] to present the resolutions that will be put to a vote.

Regarding the ordinary meeting, the first 3 resolutions concern the financial statements and the dividend. These elements were presented to you by Mr. Christophe Babule at the beginning of the AGM. Resolutions 4 to 6 concern the appointments of 3 new Directors, namely Mr. Pablo Isla, Ms. Anna Lenz and Ms. Christel Bories. Resolutions 7 and 8 concern the reappointment of Mr. Jean-Paul Agon and Mr. Patrice Caine as Directors. These appointments and reappointments were presented to you by the Chairman during his presentation on the governance of your company. The ninth resolution concerns the revision of the maximum manual amount that may be allotted to Directors, which would be increased from EUR 2 million to EUR 2.1 million, taking into account the increase in the number of directors. Resolutions 10 to 15 concern the compensation elements of the corporate officers. Ms. Sophie Bellon, Chairwoman of the HR and Remuneration Committee reported on this in detail to you a few moments ago. Resolution 16 concerns the new authorization to be granted to your company to continue where applicable its policy to buy back its own shares outside of public offer periods. The authorization will cover a maximum of 10% of the share capital and the purchase price per share may not exceed EUR 700. Regarding the extraordinary meeting in the 17th and 18th resolutions, the AGM is asked to grant the Board of Directors the authorization to decide for a period of 26 months on a share capital reduction by canceling the shares acquired by the company subject to a limit of 10% of the share capital existing on the date of cancellation and on free grant of shares to employees and corporate officers. In the 19th and 20th resolutions, the AGM is asked to delegate to the Board of Directors the authority to decide on a capital increase up to a maximum amount of 1% of the share capital reserved for employees who are subscribers of an employee savings schemes for a period of 26 months and for employees of foreign subsidiaries for a period of 18 months. The cumulative amount of all the capital increases that may be carried out pursuant to all these resolutions may not exceed the maximum amount of 40% of the existing share capital. With the 21st resolution, it is proposed to amend Article 12 of the Articles of Association relating to the general rules about AGMs in order to allow the widespread use of electronic notices of meeting to shareholders, including registered shareholders as permitted by the so-called attractiveness degree into simplify its wording by replacing certain regulatory references with reference to the applicable regulations. Resolution 22 will concern the powers for formalities. Mr. Chairman, we have detailed all the draft resolutions.

Thank you very much, Emilie. I will now give the floor to Ms. Celine Eydieu-Boutté, Ernst & Young, to speak on behalf of the joined statutory auditors. Thank you very much.

Thank you, Mr. Chairman. Ladies and gentlemen, shareholders, good morning. On behalf of the joint auditors, Ernst & Young Audit and Deloitte, I am pleased to present the reports on the performance of our statutory audit engagement for the 2025 financial year. We have issued several reports to enable you to form an informed judgment when voting on the proposed resolutions. Our reports relating to the ordinary general meeting covered the statutory audit of the financial statements and related party agreements. While those issued in connection with the extraordinary general meeting are required by law in relation to proposed capital reductions, authorization to grant free shares and capital increases reserved for employees. In addition, although not subject to a specific resolution submitted for your vote, we have also issued a report on the certification of sustainability information. All of our reports have been made available to you by the company and are included in the universal registration document filed with the AMF published on L'Oréal's website. I will not review each report in detail, but I will focus on the key matters arising from our work and the conclusions reached. With respect to the ordinary general meeting, we issued reports on the statutory audit of the financial statements of L'Oréal S.A. and the consolidated financial statements of the group. As of December 31, 2025, the purpose of our work is to provide you with a reasonable assurance that the financial statements submitted to you do not contain any material misstatements that the accounting methods adopted are appropriate. Any risks are sufficiently covered and prevailing laws and regulations are complied with. We coordinated audit works in more than 15 countries on accounts and internal controls that covered current operations as well as specific events occurring in 2025, such as changes in the scope of consolidation with Color Wow and Medik8 acquisitions and other significant transactions, including IT systems migrations and new debt issuances. As part of our audit of the consolidated financial statements, our report highlights 3 key audit matters that we consider to be most significant or that required particular attention. For each of these matters, we assess the key judgments underlying management's estimates, verify the absence of material misstatement and ensure the appropriate disclosures were provided in the notes to the financial statements. The first point is about the valuation of goodwill and indefinite live brands, which represent approximately 1/3 of the consolidated statement of financial position as at 31st December 2025. The second point is about revenue recognition and the estimation of items deducted from revenue, such as discounts, rebates and other benefits granted to distributors or consumers. Finally, the last point concerns the valuation of positions for tax risks and uncertain tax positions. Regarding the financial statements of L'Oréal S.A., we identified evaluation of investments in intangible assets as a key audit matter. Our work and conclusions were regularly discussed with the Audit Committee and the Board of Directors. In conclusion, having the necessary resources to fulfill our responsibility we issued an unqualified audit opinion on both the statutory financial statements of the parent company and the consolidated financial statements of the group. Within the scope of the ordinary general meeting, we also issued an additional report relating to related party agreements. As we were not informed of any new agreements authorized during the past financial year, our report simply reiterates the continuation of the existing agreement relating to the employment contract of your CEO which was approved by the AGM held on April 20, 2021. With regard to the resolutions concerning the company's share capital submitted within the framework of the extraordinary general meeting, we issued 4 reports. These 4 reports required by law related to proposed authorizations or delegations of authority granted to your Board of Directors in respect of capital transactions, in particular, issuances of shares and securities reserved for employees and beneficiaries of the company savings plan as well as for employees of foreign subsidiaries. None of these reports contains any observations on our part. Where applicable, we will issue supplementary reports when your Board of Directors makes use of these authorizations. For the second consecutive year, we issued a report on the certification of sustainability information. Our work was performed in order to provide limited assurance on the following 3 specific areas: the compliance of the process implemented by your group to determine the sustainability information to be disclosed in accordance with the European sustainability reporting standards ESRS. We also checked compliance with ESRS for the publication of this information in the sustainability report. And the compliance with the disclosure requirements pertaining to the taxonomy. Based on these verifications, we did not identify any material errors, omissions or inconsistencies across these 3 areas. Ladies and gentlemen, shareholders, Mr. Chairman. I thank you for your attention.

Thank you very much. Thank you very much, Ms. Eydieu-Boutté. Let's open the discussion. We received written questions -- 2 written questions. Question from the forum for responsible investment, FIR, 2 questions, including 4 sub-questions. So they are very long questions, and it would have taken the whole Q&A session to answer them orally. So we thought it was a good idea to answer them in writing on our website and the answers have been approved by our Board of Directors. And there was also a question from Mr. [indiscernible]. So the Board of Directors met on April 23, and has responded to them. It was decided to publish the Board's responses to these written questions not to take the whole time of this Q&A session at this AGM. I would like to remind you that questions may be submitted to us in 3 ways: first, questions from the floor, asked directly into the microphone provided by the ushers. And I would like to ask each shareholder to kindly introduce themselves and to ask 1 or 2 brief questions so that as many people as possible may speak. Second, there are questions from the audience that can be collected on the cards provided for this purpose. And finally, questions may be submitted to us via the AGM streaming platform. So far, no question has been asked on the platform. So to allow the ushers to distribute themselves throughout the room, I would like to ask Emilie to read a few questions, the most frequently asked questions prior to the AGM, and we will answer them briefly. Emilie?

The most frequently asked questions is about the stock price. Given that the operational fundamentals remain robust, how do you account for the still disappointing performance and volatility of the L'Oréal's stock price?

It's a question that's quite relevant for all shareholders. It's the key question. So in order to answer this question, I would like to take a step back. Since the beginning of the year, and at the beginning of 2025, if we have a look at the situation, there was a 10% increase in the L'Oréal's stock share. And the CAC 40 increased more than the L'Oréal's share price, which is quite new for us. So I promise you that we will make sure this situation does not last for too long. Over many years, L'Oréal's stock price increased more quickly than the CAC 40 average. We will make sure that it is still the case. Our industry was confronted to global headwinds. For the last couple of years, first of all, there was the slowdown in China. As you know, China's development supported the L'Oréal's stock price, but there was this slowdown in China for a couple of years now, and there was also the impact of U.S. tariffs that didn't help and the war in the Middle East. So there are several externalities creating headwinds that are quite challenging even though the company is performing well. And there's another point something that accounts for the increase in the CAC 40 stock price. Other industries are better supported. The defense sector, for example, Mr. Caine is one of our directors, and he must be pleased, but we do not work in defense. We think that beauty is the best defense. There's also finance and the banking sector. They have never done very well in terms of stock price, but they have pretty good momentum at the moment. In the past few days, you must have seen that the publication of revenue growth in Q1 led to a 9% increase of the stock price in just 1 day. And we are convinced that whatever the environment, at the end of the day, it's up to us to prove through the strength and the momentum of the group that the best investment, the best value is L'Oréal's. And I can assure you that Christophe, Nicolas, myself and everybody in the group are determined to make sure that it will happen. So that's the first answer. Emilie, another question?

Yes, there is a question on the situation in the Middle East, what's the impact on the group and its supply chain?

Yes, this is a very relevant question. Nicolas?

Absolutely, the situation in the Middle East. Well, the first thing that I would like to say is that all of our employees, 1,500 employees working in Saudi Arabia or others are protected. We took all the necessary measures to have them work from home. There's one production plant that's in Egypt, but it's not concerned by the conflict. Other than that, no production site in these territories. So there's no impact for us. But there are a few types of impact. For example, there's the stock price, as Mr. Agon said, it's still much better than our competitors. There's been an impact on revenue. For Q1 '26, it should be around EUR 100 million, but we offset it, thanks to our great sellout in all of our regions. That's the beauty of L'Oréal. When one region in the world is impacted, other managers in other regions of the world are trying to make up for it. That's what we did in Q1, and we're going to do it in Q2. So the region accounts for less than 3% of L'Oréal's revenue. So it's still manageable. We've, of course, a specific challenge for Travel Retail. The Dubai Airport is one of the most important hubs, but the situation is manageable. There are other effects, for example, the impact on logistics, costs or if the conflict were to last, there might be an impact on the price of raw materials for the second half year. And if the brand stayed at around $100 as it is today, that would be an over cost for the group of EUR 100 million in the operational account, so that's the situation we need to face. We need to find a way to juggle the situation and anticipate this situation.

Thank you, Nicolas. Yes, it's something that I did not mention, but over the period on which our stock price increased by 10% in 2025. For our competitors, the stock price went down 17%. And for the luxury sector, I'm sure that you're aware of it, the stock price went down 25%. So when you look at yourself, you feel concerned, but when you compare yourself, you feel better. I'd rather compare myself to the defense sector. And beauty hopefully should carry more value than defense, we'll do everything we can to reach that goal. Third question, Emilie.

There's a question on the future impact of AI on productivity and employment at L'Oréal.

Nicolas, on to you.

Right, I'll be concise. You saw the detailed presentation by Mr. [indiscernible] earlier. The idea of it is quite simple. AI at L'Oréal is the augmentation of human skills of whatever we do. [ Poets ] and farmers can be augmented by AI just as well. We see very clear that iterative task like data compilation and others can be taken up by AI very well, and that frees up some time and energy for employees to focus on higher value tasks. So when we mention increase just like Samuel did, the idea for us is to accelerate growth, thanks to AI not to replace our employees to compensate a lack of growth. We want to pursue growth. That's what we do. And thanks to AI, we can multiply a research, marketing, content creation capacity. And thanks to this, we will be able to increase the pace of growth in the coming years.

Thank you, Nicolas. Fourth question, a very frequent question. What is the impact of tariffs by the Trump administration in the U.S.? How does your organization enable you to respond effectively? Nicolas?

Right. Last year's tariffs have come in, in the summer. So over the 6-month period accounted for a little less than EUR 100 million, has impacted the products we export to the U.S. We produce in the U.S., about half of the units that are sold there. So this is what's great about our multipolar model. We have many plants around the world, including in the U.S. We've 4 plants in the U.S. We've plants in Mexico, 2 in Canada as well. So we dodged, for the most part, the cost of tariffs. It comes in at under EUR 100 million. It's lower than the impact of ForEx effect. So we estimate that -- we estimated that for this year, the impact would be double, but the Supreme Court, as you know, declared that these tariffs are illegal. So just like everyone else, we observe the situation. We may get good news in this year's accounts if for the tariffs are canceled or brought down. That is the tariffs announced by Trump coming at 15%. But our management team is exceptional. The structure of our accounts allow on both fronts to deliver good results despite these factors.

Let's move on to the questions rooms. Let's start with the advisory committee for shareholders around there. I think -- sorry, I can't see clearly, I've lights on my eyes.

[indiscernible] registered shareholder, a member of the commission you just mentioned. I have 3 questions for you. What is the impact of additional corporate tax in France? Is this extra cost born at the expense of the dividend, investment or wages, acquisition, the acquisition of Kering Beaute division. Could you detail its components and what contribution to results is expected from this EUR 4 billion investment? And then in 2024, you acquired Dr.G founded by a dermatologist in response to the growing success of K-Beauty. Where do you now stand on the Asian market, particularly compared to the competition from local Chinese or Korean brands or other digital native brands?

Questions that are write-down, Nicolas.

Great. I'll first start with the first question, additional corporate tax in France. This is not a happy topic exactly. Right, what is this tax? Does it amount to -- is additional exceptional task on corporate entities in France? Cost us EUR 243 million in 2025 accounts this exceptional task. So in total, more than EUR 1 billion were paid this year. EUR 243 million is about 20% of our research budget. So this is not a trifling matter. This is not born at the expense of dividends, investments or wages. It does have an impact on the per share earnings. It's also impacted by lower dollar price, and we offset this by increasing the distribution rate, allowing us to increase the dividends up to EUR 7.20, but this exceptional tax must be just that exceptional. And there will be -- there will have to be good management effort by the French state to make sure that we don't continue -- it doesn't continue to pick the pockets of French companies. There was recently a ranking published by the OCD. France is first in terms of corporate tax rates. I'd rather be #1 in beauty than #1 in corporate tax rates. So over the long run, obviously, companies can and do contribute when they can. They do contribute, but they can contribute to France in other ways by employing people the success of L'Oréal investments, 15,000 L'Oréal employees in France, but jobs generated, overall partners, secondary employments, hairstylists. In total, there are about 100,000 jobs in France. This is part of our value and our ability to help France shine through its products and culture also accounts for something. So let's hope that this tax will be exceptional. We'd rather give back value to shareholders and do something else with our money. Thank you. Thank you for your diplomacy -- diplomatic terms. We could have answered otherwise. But -- let's not do that today. Then, Kering, right, this is an important question. Big acquisition, if I might say. So yes, we are very happy to have been able to move on with this acquisition. It's not only an acquisition, it's a partnership with Kering. It's a good player, a great player in the fashion industry in France, and this confirms definitively L'Oréal's leadership and especially L'Oréal Luxe. Luxe's Leadership in Luxury beauty. I mentioned Armani, Prada, Yves Saint Laurent obviously, this is a brand owned by Kering. It generates EUR 3 billion in sales. It's over and beyond fashion sales. So with this acquisition of Kering Beaute we acquired licenses for 50 years of 3 brands. From today, the acquisition was signed on 31st of March. Brands I mentioned earlier, Bottega notably, we started working on this with getting us teams and on the longer term when there will be an agreement between Kering and Coty, which holds license for mid-2028. We will gain the license for Gucci. We'll be able to work 1 year ahead of time. So this is not yet part of our portfolio, but it's in the interest of everyone to gain this license at an earlier date. And let's end on another topic. It's a brand that has more than EUR 300 million in sales, Creed. It's a high-growth brand. We have relatively lower share of fragrance in the market. So thanks to Creed, we enter this industry in full frontal way, and we can rely on their strength to sell their perfumes. We have high ambitions because I don't have figures in the head, but I know that Gucci is much smaller than Yves Saint Laurent in beauty products, but much bigger in fashion. So you see there's high potential if we apply the winning recipes to all our targets.

And then we have Dr.G, which we've acquired, let's speak to this.

Yes, I did mention this in my presentation. This is the first -- the biggest well-being brand in South Korea, founded by a dermatologist, very light texture, seen as Asian brands, EUR 100 million in sales. We're deploying it globally, progressively. It's already in the Chinese market. I won't give you the full roadmap here in the spirit of secrecy, but we're working on the segment of K-Beauty through this brand. On to this question, there's the very clear emergence of Korean brands, but this accounts for less than 3% of global growth, it's is still non-considerable. Korean producers play a great part. We work with them through French formulas. And in Asia, I'd like to end on this topic by saying that we are gaining market shares in China luxury or beauty products and our market share in skin care is very high, Lancome, CeraVe, La Roche-Posay winners. So La Roche-Posay won, but came at the detriment of other Asian brands rather than French brands like ours. So we hold our good position in Asia. And thanks to the Korean brand, we will continue on this good trend.

Thank you. Do we have anyone else. There's a gentleman here moving about over there, seems to be anxious to ask questions.

Hello, individual investor for a long time, well before 2006, kudos to you, and very happy with the consistency of your results, and thank you for the wonderful dynamic presentation you've just shown. I still have 3 questions to you to understand the group better. First, on progression margins. After good results across all divisions, I still wonder what can be improved? What are the weaknesses of L'Oréal at this date?

Good question. We'll ask Nicolas.

Then L'Oréal versus the low-cost fragrance boom, what do you think about this trend adopt for example, highly rated perfumes, low cost and -- which went high appraisal among young people. Three, solidity of L'Oréal's model against other groups, L'Oréal versus Coty's model. But for L'Oréal what do you think were the major mistakes of Coty's Group, what would you avoid doing? And if I may, I'd like to congratulate you for a great sense of timing. We have -- you managed to organize a visit to 3 days before it was broken into.

Thank you. You've been a shareholder for how long, since when?

'98.

Very good. That's not too old. I entered in '78 this company, so I've been here for a long way. Let's first start with the Coty model. And very quickly less mention this now because I don't think we will be able to talk about it next year. This is how the cookie crumbles. The life cycle of the company, some are born, some other die and Coty, unfortunately, is part of the ones that are dying. So I won't speak ill of this company, of course. I don't think they have a model proper. So nothing to say really about this, but contrary to them, we can still improve. What can we improve, Nicolas?

Well, we often have made proverbs worries that are helpful among the many proverbs that are. We can always improve. 3 out of 4 divisions are top 1 in the world, professional products, Luxe and other products. So this is -- this means that the fourth division can reach #1. And this will mean relying on emerging markets. We have lots of consumers, lots of potential. Why do we have a lower market share in emerging markets as compared to other markets like India and other regions because in these markets, we have a less structured distribution compared to France or in the U.S., small boutique, small shops across huge vast territories like India, Indonesia, let's not even mention Africa and our products, mostly more expensive products couldn't really reach their full potential. And thanks to e-commerce, we're able to do better in India. We have a market share of about 9%, 10%, it's about 8 in shops and already at about 13, 14, 15 on e-commerce side. So there's real potential to improve here, emerging markets, fast-moving goods. And there are always things we can improve. Last year, I said that in skincare, we underperformed, relatively speaking. So we should be able to innovate more to cater to the new taste of consumers. As Mr. Agon said it very currently earlier, beauty is perpetually being renewed. So we cannot sit on our laurels. We must continue to innovate and take on new challenges. And if I may reassure you saying if we have defect we don't have beyond all the nice beauty -- the beauty of our presentations and the appearance is that we are never satisfied with ourselves. We're always criticizing each other constantly egging each other on. I think my colleagues will be able to confirm that. We challenge each other on a daily basis. But this is the recipe for success. I think we're never satisfied. We're always looking up and looking to do better. Low-cost perfumes. Good question, adopt. This is a nice French success story created by previous L'Oréal employee. I think this shows that consumers and young consumers globally have an interest for perfume, especially post COVID. So globally, generally speaking, it's a good news. We have new market entrants. Consumers can try new products -- low-cost products. Low to mediocre quality. And then these consumers can go up the range up to Yves Saint Laurent or other consumers, while Yves Saint Laurent move up to Creed or [indiscernible] so there's a progression across the board for consumers. So this augments the penetration of fragrances, but we do to be careful, and we are careful when fighting against counterfeited goods. We work with our legal teams, sometimes not with this particular brands, there are counterfeited goods that are very close to our products, and we do prosecute or take legal actions against them, so we must remain vigilant in defending our brand and interest. So more fragrances is good news for us. We are #1 in procurement.

Thank you, Nicolas. Let's take another question. I can see someone with their arm raised.

This is a challenging time with the war in the Middle East. You have been very positive and reassuring. And I must say that this AGM is a very high quality. So congratulations to all of you. Special congratulations for Mr. Samuel du Retail. I've been an individual shareholder for a long time now. And I have 2 questions. I'm sorry if I'm a bit unpleasant. I was a bit upset when I watched the TV program, [indiscernible] hearing you this morning. I'm feeling much more reassured, but I would like to know how this TV program was perceived and if you felt concerns? The second question is also a comment. You've been doing great, but there's something missing from your presentation, which is the environment and biodiversity. There are key challenges globally, global warming, for example, and a few years ago, young women took the floor. She was brilliant. I'm being provocative on purpose. What about the environment and biodiversity? Why are they missing at L'Oréal?

Thank you. Your questions are very relevant. I'm sure you're not the only one who had them in mind. So it's great that you asked them. So let's go back to this [indiscernible] program. To be honest, we were very upset watching it, too. And I will ask Nicolas to answer this question. And we'll also get back to you for your second question, which is very relevant.

Of course, we -- it really hurt our feelings. And it also heard our employees' feelings people working in research and development people, who put so much -- so many efforts in developing our formulas. And regarding this program, they want to go viral with biased approaches. So we were not happy. And to be honest, we sent our answers in a 30-page document, we answered 80 questions, demonstrating the quality of our products. How seriously we design our advertising campaigns, use precautions for coloring products, the quality of the social model of L'Oréal, how we commit to sharing value with a company and our employees. Unfortunately, as you were able to see, truth was not the approach that they adopted. They wanted to create something controversial. We did not like it. We shared the information that we -- with our employees, the same information that we shared with the TV program. But bottom line is, as shareholders, you can be fully confident in the fact that L'Oréal focuses on the quality of its formulas and how the company is managed and how employees are managed. Basically, we were pretty angry. Yes, and it's all the more upsetting as in this industry, the company investing the most in R&D is L'Oréal. The most generous company from a social point of view is L'Oréal in France. And it also has the highest level of safety for its products. So every single time they tried to hit us where it hurt, and I think that ethically speaking, it is not acceptable, but anyway, there's nothing we can do about it. So we have to deal with it. The other topic that is quite relevant is sustainable development in biodiversity. Let me reassure you. These are not points that we forget or leave behind, not at all. There is a major topic that we need to focus on. So sometimes sustainable development in the past few years was the key element, and we needed to share key developments with you. This year, we thought that AI was close to your concerns but I would like to reassure you, we are more committed than ever in terms of sustainable development. Regarding the CDP, no one knows what it is, CDP is the carbon disclosure project. It's an independent body and is the most serious independent body in the world in terms of recognition of sustainable development commitments at corporate level. And no one notices it. There's just one company globally across all industries -- is no such company in France, Germany, Japan, no other company got a perfect rating in the past 10 years. Only L'Oreal got that rating. We're the only ones. And we have the same rating this year, which shows that we're consistent. And you recall the presentation made by Alexandra Palt a few years ago regarding the unique commitment of L'Oreal in terms of sustainable development in biodiversity. I can assure you that it is a relevant as ever. Nicolas?

Yes, let me add a couple of things. Last year, in my presentation, I shared the new objectives for the L'Oreal for the future plan. We removed goals that we had already reached. We removed goals that were not realistically reachable. So we talked about this accelerator program. We're going to look for start-ups that can find new types of plastics and new greenfield polymers. But let me share with you a few highlights, things that I'm proud of, 100% of renewable energy for all of our operated site and stores, that's very important biodiversity as part of our goals, 95% of our biosourced ingredients are traceable and there is 56% of the water used in our industrial processes that we use a recycled -- it's the waterloop. Our goal is to reach 100% and that's key for me. We talked a lot about Scope 1, Scope 3. So the overall amount of carbon emissions across the group which also depends on our partners and suppliers. In 2023, there was a reduction in Scope 3, even though the revenue went off, those are values, and we think that in the future, it will be a competitive edge as well, especially vis-a-vis younger generations who carefully select brands focusing on economic performance, but also the environmental commitments. Thank you very much. So there are people who ask their questions using cards. Question, Nicolas, what about production sites outside of France for the Luxe division, unit development in fragrances. So for the Luxe division, our manufacturing sites are mostly in France, north of France, and we're very proud of it. We create jobs and there are a few luxury items produced in our Japanese plant, [ Gotemba. Suzhou ] for China in particular. And also the Takami brand, which is our Japanese brand. But overall, well, there are few formats are produced in our Chinese plants. But in the Luxe division, we're talking about a few items, few units. So everything can be done in France as a for -- in terms of logistics and costs of -- we can stay in our local plants producing the U.S.A. for the U.S. market. But in the Luxe division, the vision is to stay focused on our fresh plants and made in France for a luxury product, is a great selling argument. What about Gucci fragrances and skincare products. Well, it depends on the discussions between Kering and Coty. At the latest, the license will come to an end mid-2028. So at the latest, it will be mid-2028 hopefully a bit earlier. There's something that are close to my heart. In the presentation, Africa who's not mentioned it's a very powerful continent with its demographic growth. So what about L'Oreal? Well, 5 years ago, we started working with Saharan Africa, which is very small for L'Oreal scale. We're reaching EUR 300 million in this region. The continent has a huge population for the number of people who can buy our products. Well, we have 2 subsidiaries, Kenya and South Africa. We're talking about 20 million people spending small amounts or smaller than average. So we need to support this demand with the right products, hair care products, but we're developing double-digit growth last year. And now we have 18 -- sorry, 13% of market shares in South Africa, which is close to our global market share. So it's still small, but it will be better in the next decade. Yes, it will be for the future. For the people replacing us, it is very important. There's 1 continent in the world in which women are truly passionate about beauty. And it's the African continent. So Africa will be an outstanding growth driver for L'Oreal in the next decade.

Going back to questions in the room, we'll take 1 or 2 because we are a bit behind schedule. If you would like to have a lunch, we need to wrap up quickly. Number three, please.

Louis Vuitton [ Kering ]. I'm a registered shareholder. You talked about AI. I asked Mistral to ask you a question. There were a couple of recommendations -- don't be ignored. Sometimes managers can try to beat around the bush. Also, I should try not be perceived as being hostile to you. Anyway, they talked about cash investigation, we talked about this already. And then in 2023, the CEO, Nicolas Hieronimus, received 300x the minimum wage. So how do you account for this concentration of wealth while employees do not benefit from the same increase?

Well, thank you very much, Mistral, for this recommendation. Future AGMs should be interesting. But please do not just send your Mistral AI to ask us questions. Otherwise, it's going to be boring for us. I hope you can attend in-person in the future. So Nicolas Hieronimus is not Chairman and CEO. And AI sometimes make a lot of mistakes. So he's not Chairman and CEO because I'm the Chairman. You can let Mistral know.

Let me answer on behalf of Nicolas regarding his wage. He is Chief Executive Officer. Second, market capitalization in France, global leader of beauty and his compensation is quite consistent with other French CEO. And it's around 50% of the global competitors or sometimes 2, 3, 4 times smaller than us. So there is the compensation committee that decides based on a benchmark they decided that this compensation was justified. Now regarding shareholders' dividend, let's ask people in the room, dear shareholders, what do you think? Do you think that shareholders got too much money from L'Oreal? No. Okay. So you can tell Mistral that its comments are not quite relevant. If you want to develop a company, if we want to turn the company into a leader and a pioneering company for the future, you need well paid leaders and well paid shareholders. Thank you, next question, please. Last question. I hope it's not going to be asked by Mistral or Claude. Go ahead, number 6.

I have been shareholders since the 1970s. Congratulations to all of you for your work. Congratulations to your employees. You answer just more question partially regarding the recycling of water in your side. What about PFAS and TFAs. Can you tell us more about them? Congratulations. Thank you, sir.

PFAS and TFAs. Okay. I'm not an expert in TFA, but for PFAS. What I can tell you is that we fully removed them from our products. 100% of L'Oreal products on the market since early 2025 that do not contain any PFAS. TFA, well, I'm not quite confident to answer you. I could ask somebody. Barbara Lavernos is in charge of research, she's great, she's telling me it's the same answer, so her answer must be right. Now regarding water, that's a very important topic for us. So we talked about what we call the waterloop having a closed loop for water in our industrial side not to lose any, the goal is to reach 100% by 2030, we're at 56%. And why aren't we at 100% yet because it means investments and we do it in priority in regions with a huge water stress. So we do it there first rather than in other regions. And also one of our new commitments, L'Oreal for the future in regions impacted by water stress. In each category, we want to have, at last, 1 product that can be used without water. So dry shampoo, leave-in conditioner, we know that water is a key challenge. That's the answer what I would like to share with you. No PFAS, no TFA. Thank you very much, sir. Thank you for being a shareholder since 1970s.

We'll now move on to the vote of resolutions. Before that, Madam Emilie Thiéry will give you a final quorum and a few practical explanations on voting procedures. Shall we now give you the final quorum? The final attendance sheet records the representation of 436 million and some shares, that's a little more than a 81% of the total shares composing the company's share capital entitled 1,797 shareholders present at the meeting. 340 shareholders represented. 9,050 shareholders granted proxies to the Chairman and 15,000 in some shareholders have voted by correspondence. As a reminder, resolutions of an ordinary nature are approved by simple majority of resolutions of an extraordinary nature by 2/3 of the majority to vote, you'll need only 3 buttons on the votingvoting table. The green button for favor, yellow for abstention and red for against, for the record abstentions is not considered a vote cast. We will announce the opening of the vote, an hour glass will appear on the screen, and we will then indicate the closing of vote. Final results will be projected after the vote on each resolution. At the end of the meeting, the full results will be displayed on the screens and will then be available on the website, loreal.finance.com. First resolution, approval of the 2025 current company financial statements. Voting is on. [Voting]

Voting is closed. First resolution is adopted more than 99% to approval to 2025 consolidated financial statements. Please vote now.

We have technical issues -- is it working now? Tablet is not working, is that right? Technical glitch? Unable to unlock it.

So the second resolution is carried by more than 99% of -- all tablets working.

Fixed tablets, we need to end this meeting at 1:00 p.m.

Third resolution, allocation of the company's net profit for financial year 2025 and setting of the dividend. Please vote now. [Voting]

We have people helping us with the tablets, please. Voting is close. Resolution is carried, 99% of votes are in favor. Fourth resolution, appointment of Pablo Isla as a Director. Please vote now. [Voting]

Are they working now? [indiscernible] was to solve this issue. [Technical Difficulty]

[Foreign Language]. Moving down [indiscernible] I had a question on the company's capital. Nestle transferred all its shares that remain in 2025 to holding in Luxembourg for the future of events as there will be new members of Nestle on the Board. Other question on the capital held by the family limited to some 33% after an agreement to last year. Today, the company has a 30%, the family has 34% for some of our company's shares. Over the past 2 years, we have a quorum of 82%. So this brings the total a little more than 40% of the total capital is Nestle not controlling the Bettencourt family in effect and what's the legal teams position, our control -- de facto as the family has more than 30% moved over the threshold after an agreement a couple of years back. We have 82% of total capital represented here, Thiéry, our only Secretary, she's also a legal scholar. She's a specialist in these matters. On Nestle's participation, there was an internal reclassification within the group with no impact on the ownership of shares by L'Oréal. So this does not predict any future evolution. On your question -- for your question on de facto control for this legal matter, there are legal actions at the Court of Cassation and Paris and other courts on the de facto control, but to have the de facto control, you have to have more than 50% of shares to be in such a position by law. So this is the legal answer. The more general answer is this. My knowledge -- Pablo and Anna will certainly be appointed as directors. It doesn't mean that Nestle is not in control of L'Oréal. We understand the question. However, the reclassification of -- internal reclassification has no impact on the situation. Now secondly, I think we can be happy about the fact that Bettencourt Meyers family has a strong presence. This, of course, is the family of the founder, Eugène Schueller, strongly has a strong presence in the company's capital. It gives us continuity, stability, this is very much positive for the company and for the shareholders. Thank you for your question. So I want to answer them in full. Our tablets are working now? I don't know we need to answer questions. I can't hear you, speak louder please.

Share buyback program, what's on that -- purpose is very simple. We want to maintain the number of shares stable. There in and out to stop dilution. As you know, each year, we have employees the shareholding scheme. We also attribute shares -- allocate shares to Directors and we create shares each year. And if we didn't buy back shares, there will be each year more shares floating around and therefore, dilution for all shareholders. That's the idea if Having a very reasonable amount of share buybacks are about 0.5 million each year to stabilize the overall number of floats so that we avoid any dilution of all shares, including yours. Now, our tablets, are they working? WiFi was reset. I was told 30 seconds ago that in a minute, it will be all right. One more question. Lady in orange, next question, please.

It's [ Vanessa Ruiz ], I'm Colombian and Spanish, and like many foreign students, I came to France with the dream to start working in a large company like L'Oréal, have the opportunity to have an open ended contract with Bouygues. We work for you, the group. And today, I'm looking for a new opportunity. I have 2 questions. And you're right. It's a perfect place, Jean-Claude, the Head of HR is here. 2 questions first. What are you looking for in terms of the profiles, what's the differentiating factor with strong suit? And secondly, may I take a picture with you?

This is a perfect demonstration of your interest for L'Oréal, someone being a shareholder and above and beyond, wanting to work for our group, that's great. At the end of the meeting, we'll introduce you to Mr. Le Grand, the Director of HR. He's a remarkable man. We are on a look out for all talents, young people, many talents with a ambition, motivation. The group's development and you seem to fit the build. And congrats also to you because it's the right place in time to say this. Tell us working, I need to from the beginning, Number one. Is it working now? Great. Resolution 1, approval of the 2025 parent company financial statements. Please vote now. [Voting]

Time's up. Resolution 1 is adopted with 99.94% of the votes. Resolution 2, approval of the consolidated financial statements for 2025. Please vote now. [Voting]

Time's up. Resolution 2 is adopted with 99.94% of the votes. Resolution 3, allocation of the company's net profit for financial year 2025 and setting up the dividend. Please vote now. [Voting]

Resolution 3 is adopted with 99.98% of the votes. Resolution 4, appointment of Pablo Isla as a Director. Please vote now. [Voting]

Resolution 4 is adopted with 96.64% of the votes. Resolution 5 appointment of Anna Lenz as a director. Please vote now. [Voting]

Resolution 5 is adopted with 95.29% of the votes. Resolution 6 appointment of Christel Bories. Please vote now. [Voting]

Resolution 6 is adopted, 96.95% of the vote. Resolution 7 reappointment of Jean-Paul Agon as a Director. Please vote now. [Voting]

Resolution 7 is adopted with 96.73% of the votes. Resolution 8 reappointment of Patrice Caine as a Director. Please vote now. [Voting]

Resolution 8 is adopted with 98% of the votes. Resolution 9, establishment of the total maximum amount allowed to Directors as remuneration for their office. Please vote now. [Voting]

Resolution 9 is adopted with 99.78% of the votes. Resolution 10, approval of the information on the remuneration of each of the Directors and corporate officers required by Article L. 22-10-9, of the French Commercial Code. Please vote now. [Voting]

Time's up. Resolution 10 is adopted with 96.92% of the votes. Resolution 11, approval of the fixed and variable components of the total remuneration and benefits paid during financial year 2025 to Jean-Paul Agon, in his capacity as Chairman of the Board of Directors. Please vote now. [Voting]

Time's up. Resolution 11 is adopted for 97.67% of the votes. Resolution 12, approval of the fixed and variable components of the total remuneration and benefits paid during financial year 2025 or allocated for that year to Nicolas Hieronimus, in his capacity as CEO. Please vote now. [Voting]

Time's up. Resolution 12 is adopted with 95.33% of the votes. Resolution 13, the approval of the remuneration policy for Directors. Please vote now. [Voting]

Time's up. Resolution 13 is adopted with 99.89% of the votes. Resolution 14, approval of the remuneration policy for the Chairman of the Board of Directors. Please vote now. [Voting]

Time's up. Resolution 14 is adopted with 97.91% of the votes. Resolution 15, approval of the remuneration policy for the Chief Executive Officer. Please vote now. [Voting]

Time's up. Resolution 15 is adopted with 95.61% of the vote. Resolution 16, authorization for the company to buy back its own shares. Please vote now. [Voting]

Time's up. Resolution 16 is adopted with 99.39% of the votes. Extraordinary resolutions. Resolution 17, authorization granted to the Board of Directors to reduce the share capital by canceling the shares acquired by the company under Article L. 22-10-62 of the French Commercial Code. Please vote now. [Voting]

Time's up. Resolution 17 is adopted with 99.54% of the votes. Resolution 18, authorization granted to the Board of Directors to carry out free grant of existing shares and/or shares to be issued with cancellation of shareholders' preferential subscription rights to employees and directors and corporate officers. Please vote now. [Voting]

Time's up. Resolution 18 is adopted 97.42% of the vote. Resolution 19, delegation of authority granted to the Board of Directors for the purpose of carrying out a capital increase reserve for employees with cancellation of shareholders' preferential subscription rights. Please vote now. [Voting]

Time's up. Resolution 19 is adopted with 99.49% of the votes. Resolution 20, delegation of authority granted to the Board of Directors for the purpose of carrying out a capital increase reserved for categories of beneficiaries consisting of employees of non-French subsidiaries with cancellation of preferential subscription rates. Please vote now. [Voting]

Time's up. Resolution 20 is adopted with 99.49% of the votes. Resolution 21, amendments to Article 12 of the articles of Association related to the General rules of our General Meetings. Please vote now. [Voting]

Time's up. Resolution 21 is adopted with 99.99% of the votes. Resolution 22, powers for formalities. Please vote now. [Voting]

Resolution 22 is adopted with more than 99.99% of the votes. Thank you very much. The resolutions have all been adopted. It's been a bit challenging. But I would like to thank you for that. Please apologize for the technical problems. If some of you experienced difficulties that we have been identified during the vote, please reach out to [ Optivia ] staff. Sorry, again. I would like to thank you for this moment of exchanges, which is very valuable for us, and I hope that you understood the great outlook for L'Oreal for the years to come. Let's meet again here next year at Palais des Congrès, on Wednesday, April 21, 2027, have a great year. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]