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Jean-Paul AGON
Chairman & Chief Executive Officer
CAGNY
FEBRUARY 23rd, 2018
February 23rd, 2018
A GOOD YEAR FOR
THE BEAUTY MARKET
AND FOR L’ORÉAL
February 23rd, 2018
A GOOD YEAR
FOR THE BEAUTY
MARKET
+4/+5%*
*Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact
February 23rd, 2018
A GOOD YEAR
FOR THE
DEVELOPMENT
OF L’ORÉAL
February 23rd, 2018
*Like-for-like sales growth
Q1
2017
+4.2%
Q2
2017
+4.3%
Q3
2017
+5.1%
Q4
2017
+5.5%
ACCELERATED GROWTH*
February 23rd, 2018
*2017 like-for-like sales growth
BEST YEAR SINCE 2000
STRONG GROWTH IN MAKEUP: +18%*
ACCELERATION IN SKINCARE: DOUBLE-DIGIT GROWTH
OUTPERFORMING THE LUXURY MARKET
7 YEARS IN A ROW
KEEP UP THE MOMENTUM:
ICONIC COMPLEMENTARY BRANDS
OUTSTANDING INNOVATIONS
DIRECT TO CONSUMER
L’ORÉAL LUXE : +10.5%*
February 23rd, 2018
OUTPERFORMED THE HEALTHY DERMOCOSMETIC
MARKET FOR THE 7TH YEAR
LEADING BRANDS + POWERFUL ADVOCACY MODEL
E-COMMERCE: +46%** GROWTH, NOW 10%** OF SALES
CERAVE IS STEP CHANGING THE DIVISION’S FOOTPRINT
#1 DERMOCOSMETIC
BRAND WORLDWIDE
#1 AMERICAN
MEDICAL AESTHETIC
SKINCARE BRAND
WORLDWIDE
#1 MOISTURIZER
RECOMMENDED BY
US DERMATOLOGISTS
February 23rd, 2018
ACTIVE COSMETICS +5.8%*
*2017 like-for-like sales growth **2017 like-for-like sales growth. Sales achieved on our brands’ own websites and
estimated sales achieved by our brands corresponding to sales through retailers’ websites (non-audited data)
*2017 like-for-like sales growth
CONTRASTED US PERFORMANCE
GAINED SHARE IN MAKEUP:
MAYBELLINE #1, L’ORÉAL PARIS NOW #2
LOST SOME GROUND IN HAIRCARE LAST YEAR
+1.4%*
+2.4%* +2.3%*
+3.0%*
Q1 Q2 Q3 Q4
IMPROVEMENT THROUGHOUTTHE YEAR
ACCELERATION IN
THE NEW MARKETS,
INCLUDING DOUBLE-DIGIT
GROWTH IN CHINA IN H2
CONSUMER PRODUCTS: +2.2%*
February 23rd, 2018
4 LEVERS TO PROPEL GLOBAL GROWTH:
1
GLOBAL BRANDS MEETING
NEW ASPIRATIONS
2
GAME-CHANGING
INNOVA
TIONS
3
MARKETING REINVENTED
IN THE DIGITAL AGE
4
OMNICHANNEL
STRATEGY
CONSUMER PRODUCTS
February 23rd, 2018
*2017 like-for-like sales growth **Q4-2017 like-for-like sales growth
A SUBDUED MARKET
IN NEED OF REINVIGORATION
PROGRESSIVE IMPROVEMENT
OF OUR PERFORMANCE TOWARDS
THE END OF THE YEAR
+2%**
4TH QUARTER
PROFESSIONAL PRODUCTS: +0.2%*
February 23rd, 2018
NEW WORKING
METHODS
(new commercial organization,
launch of e-learning platform)
NEW CUSTOMER
EXPERIENCE
(salon - exclusive products and services)
REDEFINITION OF OUR STRATEGY TO ACCELERATE GROWTH
NEW CONSUMER
IN-SALON JOURNEY
(roll-out of Salon Emotion)
NEW ONLINE-OFFLINE
INTERACTIONS
(professional hair care lines available
on relevant beauty e-commerce
platforms, drive to salon mechanisms)
PROFESSIONAL PRODUCTS
February 23rd, 2018
IN STRATEGIC CATEGORIES
IN STRATEGIC CHANNELS
IN STRATEGIC REGIONS
STRENGTHENED POSITIONS
February 23rd, 2018
MAKEUP SKINCARE
OUTPACED THE 2 MOST IMPORTANT CATEGORIES
STRENGTHENED POSITIONS IN STRATEGIC CATEGORIES
WEIGHT IN
THE MARKET
37%*
L’ORÉAL
GROWTH
+8%**
WEIGHT IN
THE MARKET
19%*
L’ORÉAL
GROWTH
+10%**
February 23rd, 2018 *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact. **2017 like-for-like sales growth
*2017 like-for-like sales growth. Sales achieved on our brands’ own websites and estimated sales
achieved by our brands corresponding to sales through retailers’ websites (non-audited data)
STRENGTHENED POSITIONS IN STRATEGIC CHANNELS
E-COMMERCE
+ 34%* SALES GROWTH
8%* OF SALES
EQUIVALENT TO OUR
#3 COUNTRY
February 23rd, 2018
*2017 like-for-like sales growth
STRENGTHENED POSITIONS IN STRATEGIC CHANNELS
TRAVEL RETAIL
SOON
2Bn
IN SALES
+ 19%*
SALES GROWTH
EXTENDED
OUR LEADERSHIP
February 23rd, 2018
MARKET*
+6/+7%
L’ORÉAL**
+8.9%
February 23rd, 2018 *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact. **2017 like-for-like sales growth
EXCELLENT OVERPERFORMANCE IN THE NEW MARKETS
STRENGTHENED POSITIONS IN STRATEGIC REGIONS
MARKET* L’ORÉAL**
STRENGTHENED POSITIONS IN STRATEGIC REGIONS
EXCELLENT OVERPERFORMANCE IN THE NEW MARKETS
DOUBLE-DIGIT GROWTH IN ASIA, PACIFIC
+12%
+7/+8%
+ 13%**
ACCELERATION OF
OUR GROWTH IN CHINA
February 23rd, 2018 *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact. **2017 like-for-like sales growth
HIGH QUALITY RESULTS
February 23rd, 2018
*Net cash flow: gross cash flow - changes in working capital - capital expenditure
2016 2017
NET CASH FLOW*
in million euros +19.6%
3,970
2016 2017
3,318
+40bps
18.0%
17.6%
18%
RECORD
OPERATING MARGIN
HIGH QUALITY RESULTS
February 23rd, 2018
*To be proposed at the Annual General Meeting on April 17th, 2018
DIVIDEND PER SHARE SINCE 1963 IN EUROS
Dividend increase for
shareholders who have
continuously held
shares in registered
form for at least 2 years
+10%
LOYALTY
BONUS
3.55* +7.6%
54.3%
PAYOUT RATIO:
HIGH QUALITY RESULTS
A DYNAMIC DIVIDEND POLICY
February 23rd, 2018
HIGH QUALITY RESULTS
POWERFUL, BALANCED & VALUE-CREATING BUSINESS MODEL
FOCUS ON TOPLINE
GROWTH
+
OPERATIONAL
DISCIPLINE
February 23rd, 2018
22.9%
2017
OPERATING MARGIN
BY REGION*
(AS A % OF SALES)
19.2% 20.3%
*Before central group expenses, fundamental research expenses, stock options and free grant of shares and miscellaneous items
WESTERN NORTH NEW PROFESSIONAL CONSUMER L’ORÉAL ACTIVE
EUROPE AMERICA MARKETS PRODUCTS PRODUCTS LUXE COSMETICS
2017
OPERATING MARGIN
BY DIVISION*
(AS A % OF SALES)
20.8%
20.0% 20.0%
21.9%
22.6%
BALANCED BUSINESS MODEL
HIGH QUALITY RESULTS
February 23rd, 2018
*Takes into account the value of the share and the dividend income received (excluding tax credits). At December 31st 2017
ANNUAL TOTAL SHAREHOLDER RETURN*
+10%
+14%
+12%
20
YEARS
5
YEARS
3
YEARS
DOUBLE-DIGIT TSR
February 23rd, 2018
TOTAL CONFIDENCE
IN OUR UNIQUE
BUSINESS MODEL
February 23rd, 2018
SEVEN
REASONS
FOR SUCCESS
February 23rd, 2018
A BEAUTY MARKET
THAT WILL CONTINUE
TO GROW
1
February 23rd, 2018
A CONSTANTLY DEVELOPING MARKET
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
2014 2015 2016 2017
+4/+5%*
*Beauty market annual growth, excluding soaps, toothpates and razors, at constant exchange rate - Source: L'Oréal estimates
≃+3.9%*
203 Bn€
≃+3.6%*
181 Bn€
≃+4%*
205 Bn€
February 23rd, 2018
+2.4 Bn
MIDDLE & UPPER CLASSES
5.6
3.2
2015 2030
UPPER CLASS
SPENDING
Source: World Data Lab for L’Oréal
x2
BETWEEN 2015 & 2030
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
BECAUSE OF THE RISE OF THE MIDDLE & UPPER CLASSES
February 23rd, 2018
BEAUTY
BOTTLED WATER
HOUSEHOLD
CLEANING SUPPLIES
TRADE UP*
TRADE DOWN*
8
20
10
16
9
16
*% of people who traded up/down - Source: McKinsey Global Consumer Sentiment Survey, 2016
BECAUSE OF PREMIUMIZATION
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
HIGHEST
PROPENSITY
TO TRADE UP
L’ORÉAL,
CHAMPION
OF PREMIUM
BEAUTY
February 23rd, 2018
GROWING INTEREST
IN BEAUTY & SELF-CARE
SOCIAL BEAUTY ENHANCES
THE IMPORTANCE OF
PERSONAL GROOMING
BECAUSE OF THE “SOCIAL BEAUTY” REVOLUTION
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
February 23rd, 2 18
2015 2030
1Bn
0.6Bn
BECAUSE THE NUMBER OF SENIORS WILL ALMOST DOUBLE
*Source : Euromonitor
February 23rd, 2018
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
URBAN POPULATION
5Bn*
“CITYZENS” BY 2030
BECAUSE URBANIZATION CREATES NEW NEEDS
*Source : Euromonitor
February 23rd, 2018
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
L’ORÉAL IS A
PURE PLAYER:
THE CHAMPION
OF BEAUTY
2
February 23rd, 2018
100% OF OUR ENERGY IS FOCUSED ON BEAUTY
L’ORÉAL IS A PURE PLAYER: THE CHAMPION OF BEAUTY
BEAUTY
EXPERTISE
BASED ON
SHARP
CONSUMER
& CULTURAL
INSIGHTS
February 23rd, 2018
L’ORÉAL FUNDAMENTALS
ARE MORE RELEVANT THAN EVER
- SUPERIOR QUALITYAND INNOVATION
- POWERFUL BRANDS
- HERO PRODUCTS
3
February 23rd, 2018
SUPERIOR QUALITY AND INNOVATION
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
IN A WORLD OF RATINGS,
REVIEWS AND ADVOCACY
SUPERIOR QUALITY
IS A PARAMOUNT ADVANTAGE
February 23rd, 2018
680
748 761 794
850
877
€877M
DEDICATED
TO R&I
IN 2017
3,885
R&I
EXPERTS
A SUPERIOR QUALITY STEMMING FROM OUR LEAD IN R&I
R&D EXPENSES
IN MILLION EUROS
February 23rd, 2018
SUPERIOR QUALITY AND INNOVATION
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
THE POWER OF BRANDS
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
IN A WORLD OF HYPER CHOICE,
POWERFUL BRANDS ARE
MORE STRATEGIC THAN EVER
February 23rd, 2018
THE POWER OF BRANDS
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
8 BILLIONAIRE BRANDS
DOUBLED SALES
IN 3 YEARS
February 23rd, 2018
THE BIG
GET BIGGER
THE POWER OF BRANDS
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
DOUBLE-DIGIT
LIKE-FOR-LIKE
GROWTH IN 2017
IN CHINA, THE MOST CUTTING-EDGE MARKET,
TOP GROWTH CONTRIBUTORS ARE OUR LARGEST BRANDS
#1 BEAUTY BRAND IN CHINA
#1 LUXURY BRAND IN CHINA
THE POWER OF BRANDS
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
February 23rd, 2018
PROFESSIONAL
PRODUCTS
CONSUMER
PRODUCTS
ACTIVE
COSMETICS
L’ORÉAL
LUXE
MORE THAN EVER, ICONIC BRANDS ARE ESSENTIAL
February 23rd, 2018
IN THE ERA OF ALGORITHMS,
HERO PRODUCTS WIN
HERO PRODUCTS
February 23rd, 2018
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
L’ORÉAL’S
SUPERIOR
DIGITAL
PROWESS
4
February 23rd, 2018
EMPOWERED
LOCAL TEAMS
1,900 EXPERTS
19,000 UPSKILLED
EMPLOYEES
DM1
82% OF MARKETERS
A FULLY DIGITIZED COMPANY
February 23rd, 2018
L’ORÉAL SUPERIOR DIGITAL PROWESS
1.8 BILLION
IMPRESSIONS
4 L’ORÉAL BRANDS IN THE TOP 10 EMV*
STRENGTHENED OUR SOCIAL LEADERSHIP
241M FOLLOWERS +30%
LEADING CONSUMER ENGAGEMENT
L’ORÉAL SUPERIOR DIGITAL PROWESS
* Tribe Dynamics data
February 23rd, 2018
OF MEDIA SPEND
ON DIGITAL
38%
WITH A SHARP
FOCUS ON ROI
L2 DIGITAL IQ
US, CHINA, FRANCE, GERMANY
2 TO 3 BRANDS IN THE TOP 5
MASTERING DIGITAL TOUCHPOINTS – DATA ANALYTICS
L’ORÉAL SUPERIOR DIGITAL PROWESS
February 23rd, 2018
PIONEERING BEAUTY TECH SERVICES
L’ORÉAL SUPERIOR DIGITAL PROWESS
February 23rd, 2018
L’ORÉAL SUPERIOR DIGITAL PROWESS
PARTNERING WITH THE BEST TECH AND START UP HUBS
February 23rd, 2018
L’ORÉAL PARIS ON T-MALL
ACCELERATING E-COMMERCE: ALREADY 2.1 Bn € ONLINE SALES
February 23rd, 2018
L’ORÉAL SUPERIOR DIGITAL PROWESS
L’ORÉAL SUPERIOR DIGITAL PROWESS
L’ORÉAL CHINA CONSUMER PRODUCTS: E-COM 1/3 OF SALES
February 23rd, 2018
LEADING O+O
February 23rd, 2018
L’ORÉAL SUPERIOR DIGITAL PROWESS
UNIQUE
MULTIPOLAR
FOOTPRINT
5
February 23rd, 2018
7 DISTRIBUTION CHANNELS
5 BEAUTY CATEGORIES
DEPARTMENT STORES PHARMACIES DRUGSTORES
HAIR SALONS MASS MARKET PERFUMERIES MEDISPAS BRANDED RETAIL TRAVEL RETAIL E-COMMERCE
HAIRCARE HAIR COLOR SKINCARE FRAGRANCES MAKEUP
ACROSS
68 COUNTRIES
ACROSS
ALL PRICE
SEGMENTS
BEING MULTI-DIMENSIONAL GIVES US:
UNIQUE MULTIPOLAR FOOTPRINT
INVALUABLE INSIGHTS INTO
CONSUMERS’RELATIONSHIPS
WITH BEAUTY
ABILITY TO DETECT
CONSUMPTION TRENDS
EARLY
“COMPENSATION EFFECT”
BETWEEN GEOGRAPHIES,
CATEGORIES, CHANNELS
February 23rd, 2018
LEADING
RESPONSIBILITY
CONSCIENCE &
PERFORMANCE
6
February 23rd, 2018
2017 RESULTS
76% OF NEW PRODUCTS HAVE
AN IMPROVED ENVIRONMENTAL
OR SOCIAL PROFILE
53,500 PEOPLE
FROM UNDERPRIVILEGED
COMMUNITIES WERE PROVIDED
WITH ACCESS TO WORK
DECOUPLE OUR ENVIRONMENTAL
IMPACT FROM OUR GROWTH
-73% REDUCTION IN CO2 EMISSIONS
FROM PLANTS AND DISTRIBUTION
CENTRES SINCE 2005
+33% PRODUCTION INCREASE
OUTSTANDING PERFORMANCE IN NON-FINANCIAL FIELDS
February 23rd, 2018
LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE
1 OF ONLY 2
COMPANIES
RANKED AAA
BY CDP
NEWSWEEK GREEN
RANKING 2017
OUR PERFORMANCES ARE RECOGNIZED
February 23rd, 2018
LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE
LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE
L’ORÉAL IS #1 OUT OF 3,000 COMPANIES FOR GENDER EQUALITY
February 23rd, 2018
#1
PERSONAL & HOUSEHOLD
GOODS CATEGORY
#2
GLOBAL COMPANIES FOR
ALL INDUSTRIES COMBINED
9TH YEAR
“ONE OF THE MOST
ETHICAL COMPANIES
IN THE WORLD”
ETHICS
LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE
February 23rd, 2018
UNIQUE CULTURE,
ORGANISATION &
QUALITY OF TEAMS
7
February 23rd, 2018
83,000 BEAUTY
EXPERTS
UNIQUE CULTURE
DECENTRALIZED
ORGANIZATION
February 23rd, 2018
THE POWER OF PEOPLE
UNIQUE CULTURE, ORGANISATION & QUALITY OF TEAMS
CONFIDENCE IN OUR ABILITY
TO OUTPERFORM THE MARKET
AND
TO ACHIEVE SIGNIFICANT
LIKE-FOR-LIKE SALES GROWTH
AND PROFITABILITY INCREASE
February 23rd, 2018
THANK YOU MERCI
February 23rd, 2018
Q&A
Disclaimer
"This document does not constitute an offer to sell, or a solicitation
of an offer to buy, L’Oréal shares. If you wish to obtain more
comprehensive information about L’Oréal, please refer to the
public documents registered in France with the Autorité des
Marchés Financiers (which are also available in English on our
Internet site: www.loreal-finance.com).This document may contain
some forward-looking statements. Although the Company
considers that these statements are based on reasonable
hypotheses at the date of publication of this release, they are by
their nature subject to risks and uncertainties which could cause
actual results to differ materially from those indicated or projected
in these statements."
February 23rd, 2018

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Presentation_JP_Agon_Cagny_2018 (1).pptx

  • 1. Jean-Paul AGON Chairman & Chief Executive Officer CAGNY FEBRUARY 23rd, 2018 February 23rd, 2018
  • 2. A GOOD YEAR FOR THE BEAUTY MARKET AND FOR L’ORÉAL February 23rd, 2018
  • 3. A GOOD YEAR FOR THE BEAUTY MARKET +4/+5%* *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact February 23rd, 2018
  • 4. A GOOD YEAR FOR THE DEVELOPMENT OF L’ORÉAL February 23rd, 2018
  • 6. *2017 like-for-like sales growth BEST YEAR SINCE 2000 STRONG GROWTH IN MAKEUP: +18%* ACCELERATION IN SKINCARE: DOUBLE-DIGIT GROWTH OUTPERFORMING THE LUXURY MARKET 7 YEARS IN A ROW KEEP UP THE MOMENTUM: ICONIC COMPLEMENTARY BRANDS OUTSTANDING INNOVATIONS DIRECT TO CONSUMER L’ORÉAL LUXE : +10.5%* February 23rd, 2018
  • 7. OUTPERFORMED THE HEALTHY DERMOCOSMETIC MARKET FOR THE 7TH YEAR LEADING BRANDS + POWERFUL ADVOCACY MODEL E-COMMERCE: +46%** GROWTH, NOW 10%** OF SALES CERAVE IS STEP CHANGING THE DIVISION’S FOOTPRINT #1 DERMOCOSMETIC BRAND WORLDWIDE #1 AMERICAN MEDICAL AESTHETIC SKINCARE BRAND WORLDWIDE #1 MOISTURIZER RECOMMENDED BY US DERMATOLOGISTS February 23rd, 2018 ACTIVE COSMETICS +5.8%* *2017 like-for-like sales growth **2017 like-for-like sales growth. Sales achieved on our brands’ own websites and estimated sales achieved by our brands corresponding to sales through retailers’ websites (non-audited data)
  • 8. *2017 like-for-like sales growth CONTRASTED US PERFORMANCE GAINED SHARE IN MAKEUP: MAYBELLINE #1, L’ORÉAL PARIS NOW #2 LOST SOME GROUND IN HAIRCARE LAST YEAR +1.4%* +2.4%* +2.3%* +3.0%* Q1 Q2 Q3 Q4 IMPROVEMENT THROUGHOUTTHE YEAR ACCELERATION IN THE NEW MARKETS, INCLUDING DOUBLE-DIGIT GROWTH IN CHINA IN H2 CONSUMER PRODUCTS: +2.2%* February 23rd, 2018
  • 9. 4 LEVERS TO PROPEL GLOBAL GROWTH: 1 GLOBAL BRANDS MEETING NEW ASPIRATIONS 2 GAME-CHANGING INNOVA TIONS 3 MARKETING REINVENTED IN THE DIGITAL AGE 4 OMNICHANNEL STRATEGY CONSUMER PRODUCTS February 23rd, 2018
  • 10. *2017 like-for-like sales growth **Q4-2017 like-for-like sales growth A SUBDUED MARKET IN NEED OF REINVIGORATION PROGRESSIVE IMPROVEMENT OF OUR PERFORMANCE TOWARDS THE END OF THE YEAR +2%** 4TH QUARTER PROFESSIONAL PRODUCTS: +0.2%* February 23rd, 2018
  • 11. NEW WORKING METHODS (new commercial organization, launch of e-learning platform) NEW CUSTOMER EXPERIENCE (salon - exclusive products and services) REDEFINITION OF OUR STRATEGY TO ACCELERATE GROWTH NEW CONSUMER IN-SALON JOURNEY (roll-out of Salon Emotion) NEW ONLINE-OFFLINE INTERACTIONS (professional hair care lines available on relevant beauty e-commerce platforms, drive to salon mechanisms) PROFESSIONAL PRODUCTS February 23rd, 2018
  • 12. IN STRATEGIC CATEGORIES IN STRATEGIC CHANNELS IN STRATEGIC REGIONS STRENGTHENED POSITIONS February 23rd, 2018
  • 13. MAKEUP SKINCARE OUTPACED THE 2 MOST IMPORTANT CATEGORIES STRENGTHENED POSITIONS IN STRATEGIC CATEGORIES WEIGHT IN THE MARKET 37%* L’ORÉAL GROWTH +8%** WEIGHT IN THE MARKET 19%* L’ORÉAL GROWTH +10%** February 23rd, 2018 *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact. **2017 like-for-like sales growth
  • 14. *2017 like-for-like sales growth. Sales achieved on our brands’ own websites and estimated sales achieved by our brands corresponding to sales through retailers’ websites (non-audited data) STRENGTHENED POSITIONS IN STRATEGIC CHANNELS E-COMMERCE + 34%* SALES GROWTH 8%* OF SALES EQUIVALENT TO OUR #3 COUNTRY February 23rd, 2018
  • 15. *2017 like-for-like sales growth STRENGTHENED POSITIONS IN STRATEGIC CHANNELS TRAVEL RETAIL SOON 2Bn IN SALES + 19%* SALES GROWTH EXTENDED OUR LEADERSHIP February 23rd, 2018
  • 16. MARKET* +6/+7% L’ORÉAL** +8.9% February 23rd, 2018 *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact. **2017 like-for-like sales growth EXCELLENT OVERPERFORMANCE IN THE NEW MARKETS STRENGTHENED POSITIONS IN STRATEGIC REGIONS
  • 17. MARKET* L’ORÉAL** STRENGTHENED POSITIONS IN STRATEGIC REGIONS EXCELLENT OVERPERFORMANCE IN THE NEW MARKETS DOUBLE-DIGIT GROWTH IN ASIA, PACIFIC +12% +7/+8% + 13%** ACCELERATION OF OUR GROWTH IN CHINA February 23rd, 2018 *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact. **2017 like-for-like sales growth
  • 19. *Net cash flow: gross cash flow - changes in working capital - capital expenditure 2016 2017 NET CASH FLOW* in million euros +19.6% 3,970 2016 2017 3,318 +40bps 18.0% 17.6% 18% RECORD OPERATING MARGIN HIGH QUALITY RESULTS February 23rd, 2018
  • 20. *To be proposed at the Annual General Meeting on April 17th, 2018 DIVIDEND PER SHARE SINCE 1963 IN EUROS Dividend increase for shareholders who have continuously held shares in registered form for at least 2 years +10% LOYALTY BONUS 3.55* +7.6% 54.3% PAYOUT RATIO: HIGH QUALITY RESULTS A DYNAMIC DIVIDEND POLICY February 23rd, 2018
  • 21. HIGH QUALITY RESULTS POWERFUL, BALANCED & VALUE-CREATING BUSINESS MODEL FOCUS ON TOPLINE GROWTH + OPERATIONAL DISCIPLINE February 23rd, 2018
  • 22. 22.9% 2017 OPERATING MARGIN BY REGION* (AS A % OF SALES) 19.2% 20.3% *Before central group expenses, fundamental research expenses, stock options and free grant of shares and miscellaneous items WESTERN NORTH NEW PROFESSIONAL CONSUMER L’ORÉAL ACTIVE EUROPE AMERICA MARKETS PRODUCTS PRODUCTS LUXE COSMETICS 2017 OPERATING MARGIN BY DIVISION* (AS A % OF SALES) 20.8% 20.0% 20.0% 21.9% 22.6% BALANCED BUSINESS MODEL HIGH QUALITY RESULTS February 23rd, 2018
  • 23. *Takes into account the value of the share and the dividend income received (excluding tax credits). At December 31st 2017 ANNUAL TOTAL SHAREHOLDER RETURN* +10% +14% +12% 20 YEARS 5 YEARS 3 YEARS DOUBLE-DIGIT TSR February 23rd, 2018
  • 24. TOTAL CONFIDENCE IN OUR UNIQUE BUSINESS MODEL February 23rd, 2018
  • 26. A BEAUTY MARKET THAT WILL CONTINUE TO GROW 1 February 23rd, 2018
  • 27. A CONSTANTLY DEVELOPING MARKET A BEAUTY MARKET THAT WILL CONTINUE TO GROW 2014 2015 2016 2017 +4/+5%* *Beauty market annual growth, excluding soaps, toothpates and razors, at constant exchange rate - Source: L'Oréal estimates ≃+3.9%* 203 Bn€ ≃+3.6%* 181 Bn€ ≃+4%* 205 Bn€ February 23rd, 2018
  • 28. +2.4 Bn MIDDLE & UPPER CLASSES 5.6 3.2 2015 2030 UPPER CLASS SPENDING Source: World Data Lab for L’Oréal x2 BETWEEN 2015 & 2030 A BEAUTY MARKET THAT WILL CONTINUE TO GROW BECAUSE OF THE RISE OF THE MIDDLE & UPPER CLASSES February 23rd, 2018
  • 29. BEAUTY BOTTLED WATER HOUSEHOLD CLEANING SUPPLIES TRADE UP* TRADE DOWN* 8 20 10 16 9 16 *% of people who traded up/down - Source: McKinsey Global Consumer Sentiment Survey, 2016 BECAUSE OF PREMIUMIZATION A BEAUTY MARKET THAT WILL CONTINUE TO GROW HIGHEST PROPENSITY TO TRADE UP L’ORÉAL, CHAMPION OF PREMIUM BEAUTY February 23rd, 2018
  • 30. GROWING INTEREST IN BEAUTY & SELF-CARE SOCIAL BEAUTY ENHANCES THE IMPORTANCE OF PERSONAL GROOMING BECAUSE OF THE “SOCIAL BEAUTY” REVOLUTION A BEAUTY MARKET THAT WILL CONTINUE TO GROW February 23rd, 2 18
  • 31. 2015 2030 1Bn 0.6Bn BECAUSE THE NUMBER OF SENIORS WILL ALMOST DOUBLE *Source : Euromonitor February 23rd, 2018 A BEAUTY MARKET THAT WILL CONTINUE TO GROW
  • 32. URBAN POPULATION 5Bn* “CITYZENS” BY 2030 BECAUSE URBANIZATION CREATES NEW NEEDS *Source : Euromonitor February 23rd, 2018 A BEAUTY MARKET THAT WILL CONTINUE TO GROW
  • 33. L’ORÉAL IS A PURE PLAYER: THE CHAMPION OF BEAUTY 2 February 23rd, 2018
  • 34. 100% OF OUR ENERGY IS FOCUSED ON BEAUTY L’ORÉAL IS A PURE PLAYER: THE CHAMPION OF BEAUTY BEAUTY EXPERTISE BASED ON SHARP CONSUMER & CULTURAL INSIGHTS February 23rd, 2018
  • 35. L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER - SUPERIOR QUALITYAND INNOVATION - POWERFUL BRANDS - HERO PRODUCTS 3 February 23rd, 2018
  • 36. SUPERIOR QUALITY AND INNOVATION L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER IN A WORLD OF RATINGS, REVIEWS AND ADVOCACY SUPERIOR QUALITY IS A PARAMOUNT ADVANTAGE February 23rd, 2018
  • 37. 680 748 761 794 850 877 €877M DEDICATED TO R&I IN 2017 3,885 R&I EXPERTS A SUPERIOR QUALITY STEMMING FROM OUR LEAD IN R&I R&D EXPENSES IN MILLION EUROS February 23rd, 2018 SUPERIOR QUALITY AND INNOVATION L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
  • 38. THE POWER OF BRANDS L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER IN A WORLD OF HYPER CHOICE, POWERFUL BRANDS ARE MORE STRATEGIC THAN EVER February 23rd, 2018
  • 39. THE POWER OF BRANDS L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER 8 BILLIONAIRE BRANDS
  • 40. DOUBLED SALES IN 3 YEARS February 23rd, 2018 THE BIG GET BIGGER THE POWER OF BRANDS L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER DOUBLE-DIGIT LIKE-FOR-LIKE GROWTH IN 2017
  • 41. IN CHINA, THE MOST CUTTING-EDGE MARKET, TOP GROWTH CONTRIBUTORS ARE OUR LARGEST BRANDS #1 BEAUTY BRAND IN CHINA #1 LUXURY BRAND IN CHINA THE POWER OF BRANDS L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER February 23rd, 2018
  • 43. IN THE ERA OF ALGORITHMS, HERO PRODUCTS WIN HERO PRODUCTS February 23rd, 2018 L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
  • 45. EMPOWERED LOCAL TEAMS 1,900 EXPERTS 19,000 UPSKILLED EMPLOYEES DM1 82% OF MARKETERS A FULLY DIGITIZED COMPANY February 23rd, 2018 L’ORÉAL SUPERIOR DIGITAL PROWESS
  • 46. 1.8 BILLION IMPRESSIONS 4 L’ORÉAL BRANDS IN THE TOP 10 EMV* STRENGTHENED OUR SOCIAL LEADERSHIP 241M FOLLOWERS +30% LEADING CONSUMER ENGAGEMENT L’ORÉAL SUPERIOR DIGITAL PROWESS * Tribe Dynamics data February 23rd, 2018
  • 47. OF MEDIA SPEND ON DIGITAL 38% WITH A SHARP FOCUS ON ROI L2 DIGITAL IQ US, CHINA, FRANCE, GERMANY 2 TO 3 BRANDS IN THE TOP 5 MASTERING DIGITAL TOUCHPOINTS – DATA ANALYTICS L’ORÉAL SUPERIOR DIGITAL PROWESS February 23rd, 2018
  • 48. PIONEERING BEAUTY TECH SERVICES L’ORÉAL SUPERIOR DIGITAL PROWESS February 23rd, 2018
  • 49. L’ORÉAL SUPERIOR DIGITAL PROWESS PARTNERING WITH THE BEST TECH AND START UP HUBS February 23rd, 2018
  • 50. L’ORÉAL PARIS ON T-MALL ACCELERATING E-COMMERCE: ALREADY 2.1 Bn € ONLINE SALES February 23rd, 2018 L’ORÉAL SUPERIOR DIGITAL PROWESS
  • 51. L’ORÉAL SUPERIOR DIGITAL PROWESS L’ORÉAL CHINA CONSUMER PRODUCTS: E-COM 1/3 OF SALES February 23rd, 2018
  • 52. LEADING O+O February 23rd, 2018 L’ORÉAL SUPERIOR DIGITAL PROWESS
  • 54. 7 DISTRIBUTION CHANNELS 5 BEAUTY CATEGORIES DEPARTMENT STORES PHARMACIES DRUGSTORES HAIR SALONS MASS MARKET PERFUMERIES MEDISPAS BRANDED RETAIL TRAVEL RETAIL E-COMMERCE HAIRCARE HAIR COLOR SKINCARE FRAGRANCES MAKEUP ACROSS 68 COUNTRIES ACROSS ALL PRICE SEGMENTS BEING MULTI-DIMENSIONAL GIVES US: UNIQUE MULTIPOLAR FOOTPRINT INVALUABLE INSIGHTS INTO CONSUMERS’RELATIONSHIPS WITH BEAUTY ABILITY TO DETECT CONSUMPTION TRENDS EARLY “COMPENSATION EFFECT” BETWEEN GEOGRAPHIES, CATEGORIES, CHANNELS February 23rd, 2018
  • 56. 2017 RESULTS 76% OF NEW PRODUCTS HAVE AN IMPROVED ENVIRONMENTAL OR SOCIAL PROFILE 53,500 PEOPLE FROM UNDERPRIVILEGED COMMUNITIES WERE PROVIDED WITH ACCESS TO WORK DECOUPLE OUR ENVIRONMENTAL IMPACT FROM OUR GROWTH -73% REDUCTION IN CO2 EMISSIONS FROM PLANTS AND DISTRIBUTION CENTRES SINCE 2005 +33% PRODUCTION INCREASE OUTSTANDING PERFORMANCE IN NON-FINANCIAL FIELDS February 23rd, 2018 LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE
  • 57. 1 OF ONLY 2 COMPANIES RANKED AAA BY CDP NEWSWEEK GREEN RANKING 2017 OUR PERFORMANCES ARE RECOGNIZED February 23rd, 2018 LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE
  • 58. LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE L’ORÉAL IS #1 OUT OF 3,000 COMPANIES FOR GENDER EQUALITY February 23rd, 2018
  • 59. #1 PERSONAL & HOUSEHOLD GOODS CATEGORY #2 GLOBAL COMPANIES FOR ALL INDUSTRIES COMBINED 9TH YEAR “ONE OF THE MOST ETHICAL COMPANIES IN THE WORLD” ETHICS LEADING RESPONSIBILITY CONSCIENCE & PERFORMANCE February 23rd, 2018
  • 60. UNIQUE CULTURE, ORGANISATION & QUALITY OF TEAMS 7 February 23rd, 2018
  • 61. 83,000 BEAUTY EXPERTS UNIQUE CULTURE DECENTRALIZED ORGANIZATION February 23rd, 2018 THE POWER OF PEOPLE UNIQUE CULTURE, ORGANISATION & QUALITY OF TEAMS
  • 62. CONFIDENCE IN OUR ABILITY TO OUTPERFORM THE MARKET AND TO ACHIEVE SIGNIFICANT LIKE-FOR-LIKE SALES GROWTH AND PROFITABILITY INCREASE February 23rd, 2018
  • 64. Q&A Disclaimer "This document does not constitute an offer to sell, or a solicitation of an offer to buy, L’Oréal shares. If you wish to obtain more comprehensive information about L’Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers (which are also available in English on our Internet site: www.loreal-finance.com).This document may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements." February 23rd, 2018