2025 Universal Registration Document

Note 27 Net cash and cash equivalents at the end of the year

Cash and cash equivalents can be broken down as follows:

Net cash and cash equivalents at the end of the year
€ millions	31.12.2025	31.12.2024
Cash⁽¹⁾	Cash ⁽¹⁾ 31.12.2025 2,417.6	Cash ⁽¹⁾ 31.12.2024 290.7
Overdrafts	Overdrafts 31.12.2025 (0.1)	Overdrafts 31.12.2024 —
NET CASH AND CASH EQUIVALENTS	NET CASH AND CASH EQUIVALENTS 31.12.2025 2,417.5	NET CASH AND CASH EQUIVALENTS 31.12.2024 290.7

(1) Cash held with the Group’s cash pool.

Note 28 Other information

Statutory audit fees are presented in note 16 to the consolidated financial statements

Note 29 Acquisition in progress

Strategic partnership with Kering

On 19 October 2025, Kering and L'Oréal announced that they were entering a long-term strategic partnership in luxury beauty and wellness. This binding agreement encompasses the acquisition of all of the shares of Kering Beauté, which owns the House of Creed, and the beauty and fragrance licences of iconic Houses of Kering including Gucci, Balenciaga and Bottega Veneta..

Creed stands among the leading high-end luxury fragrance Houses, celebrated for its craftsmanship and mastery of rare natural ingredients. As part of L'Oréal Luxe, Creed will be best positioned to accelerate even further its global development across both men's and women's markets.

The partnership includes the right to enter into a 50-year licence for Gucci, commencing after expiration of the current licence with Coty, and respecting the Kering group's obligations as per the existing licence agreement. The other two licences were also granted for a 50-year period, starting upon closing of the transaction.

Building on the success of Yves Saint Laurent Beauté, this partnership consolidates the long history of collaboration between two global leaders with complementary strengths: Kering's iconic luxury brands and L'Oréal's unrivalled expertise in beauty, to accelerate the development of these brands and create significant value in these fast-growing segments.

The agreement is valued at €4 billion, payable in cash at closing, expected in the first half of 2026. L'Oréal will also pay royalties to Kering for the use of its licensed brands.

Note 30 Subsequent events

Bond issue

On 7 January 2026, L’Oréal placed a dual tranche bond offering for a total nominal amount of €1,750 million. The offering comprised three tranches:

a €650 million tranche with a 2-year maturity, with a fixedrate coupon of 3-month Euribor +20 bps per year;
a €500 million tranche with a 3-year maturity, with a fixedrate coupon of 2.5% per year;
a €600 million tranche with a 6-year maturity, with a fixedrate coupon of 2.875% per year.

The net proceeds of the bonds will be used for general corporate purposes, in particular to partly fund the acquisition of the additional 10% stake in Galderma announced in December 2025. The bonds were delivered on 12 January 2026.

Acquisition of 10% of Galderma

On 8 December 2025, L'Oréal announced it had acquired an additional 10% in Galderma Group AG. The transaction, expected to close in the first quarter of 2026, will increase L'Oréal's total shareholding in Galderma to 20%. In connection with this additional investment, Galderma's Board of Directors will consider the appointment of two nonindependent director candidates representing L'Oréal to replace the members of the EQT-led consortium, with effect from the 2026 Annual General Meeting. This additional investment was finalised on 10 February 2026 for €4.2 billion.