2025 Universal Registration Document

Note 23 Transactions and balances with related entities and parties

All material related-party transactions were entered into on an arm’s length basis.

Note 24 Off-balance sheet commitments

24.1 Lease commitments

Operating lease commitments amounted to €19.3 million due in less than one year, €27.3 million due between one and five years and €2.1 million due after five years.

24.2 Other off-balance sheet commitments

Confirmed credit facilities are set out in note 19.

Purchase commitments relating to equity investments are detailed in notes 29 and 30.

Other off-balance sheet commitments can be broken down as follows:

Other off-balance sheet commitments
€ millions	31.12.2025	31.12.2024
Commitments in connection with employee retirement obligations and related benefits⁽¹⁾	Commitments in connection with employee retirement obligations and related benefits ⁽¹⁾ 31.12.2025 (283.7)	Commitments in connection with employee retirement obligations and related benefits ⁽¹⁾ 31.12.2024 (242.9)
Commitments to buy out non-controlling interests⁽²⁾	Commitments to buy out non-controlling interests ⁽²⁾ 31.12.2025 354.6	Commitments to buy out non-controlling interests ⁽²⁾ 31.12.2024 15.1
Guarantees given⁽³⁾	Guarantees given ⁽³⁾ 31.12.2025 1,797.2	Guarantees given ⁽³⁾ 31.12.2024 2,011.8
Capital expenditure orders and service contracts⁽⁴⁾	Capital expenditure orders and service contracts ⁽⁴⁾ 31.12.2025 782.1	Capital expenditure orders and service contracts ⁽⁴⁾ 31.12.2024 472.9

The discount rate used in 2025 to measure commitments was 4.00% for plans providing for the payment of capital and 4.25% for annuity plans, compared with 3.50% and 3.50% respectively in 2024. Interest rate levels resulted in a funding surplus for pension liabilities in the amount of €251.0 million at end-2025 versus €218.7 million at end-2024.An agreement for the pooling of employee-related liabilities was set up in 2004. Pursuant to this agreement, commitments are allocated among the French companies in the Group and their financing is organised in proportion to their respective payroll costs (customised for each plan) so that the companies are joint and severally liable for meeting the aforementioned commitments within the limit of the collective funds built up.
At 31 December 2025, commitments to buy out non-controlling interests mainly include the put option granted to the non-controlling shareholders of CSA Topco (Medik8) for €347.3 million.
This caption includes various sureties and guarantees on behalf of direct and indirect subsidiaries amounting to €1,733.1 million at 31 December 2025, versus €1,961.6 million at 31 December 2024. It also includes funding commitments to a philanthropic fund that supports vulnerable women, and to the L’Oréal Climate Emergency Fund.
Including irrevocable commitments for IT contracts and energy purchases (these services will be re-billed to Group entities).

24.3 Contingent liabilities

In the normal course of its activities, the Company is involved in legal proceedings and is subject to fiscal, customs and administrative controls. The Company sets aside a provision when a risk is found to exist and the related cost can be reliably estimated.

No non-recurring event or dispute is highly likely to have a material impact on the Company’s earnings, financial position, assets or operations.

Note 25 Changes in working capital

Changes in working capital can be broken down as follows:

Changes in working capital
€ millions	31.12.2025	31.12.2024
Inventories	Inventories 31.12.2025 1.5	Inventories 31.12.2024 —
Accounts receivable	Accounts receivable 31.12.2025 81.3	Accounts receivable 31.12.2024 187.9
Accounts payable	Accounts payable 31.12.2025 201.2	Accounts payable 31.12.2024 15.9
TOTAL	TOTAL 31.12.2025 283.9	TOTAL 31.12.2024 203.7

Note 26 Changes in other financial assets

This caption mainly comprises long-term investments with the Group’s cash pool.