Reasons to invest in L’Oréal

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Some 200,000 individual shareholders
are already taking part in the L'Oréal adventure.

How about you?

Being a L’Oréal shareholder means sharing and supporting a clear strategic project for a new L’Oréal that is more universal, more digital and more sustainable, and investing in a profitable and high-growth share.

5 reasons to take part in the L'Oréal adventure.

1

An exciting mission,

beauty for all

Beauty has always been present in the history of humankind. Beauty is rich in meaning, and helps everyone to build self-confidence and to open up to others.

For more than a century, L’Oréal has devoted itself solely to one business: beauty. Its mission is to offer all the women and men on the planet the best in cosmetics innovation in terms of quality, efficacy and safety.

Created by a researcher, Eugène Schueller, L’Oréal has constantly pushed back the frontiers of science to meet the infinite diversity of beauty desires.

The world leader in beauty(1)

4 Divisions that develop a specific vision
for each consumption universe:

  • L'Oréal Luxe
  • Consumer
    products

    in the mass market

  • Professional
    products

    in hair and beauty salons

  • Active
    cosmetics

    in dermocosmetics

L’Oréal Research and Innovation

  • 850 million euros invested in Research and Innovation
    850

    million euros invested in Research and Innovation

  • 3 862 Research and Innovation employees
    3,862

    Research and Innovation employees

  • 473 patents registered in 2016
    473

    patents registered in 2016

  • 20 research centres worldwide
    20

    research centres worldwide

(1) Source: WWD, “Beauty’s Top 100”, April 2017.

Reason 2 An exciting
mission
2

A unique strategy,

Universalisation

Universalisation is globalisation that captures, understands and respects differences.

To capture every kind of beauty aspiration, L’Oréal is extremely attentive to consumers’ views, and has profound respect for their differences in terms of needs, desires and traditions.

This unique strategy is the world vision that drives L’Oréal.

  • 1
    Research and Innovation global centre
    France
    France
  • 6
    regional hubs
    United States, Japan, China, India, Brazil, South Africa

    Thanks to the group’s Advanced Research expertise, they develop and adapt technologies as close as possible to our consumers.

  • 16
    Evaluation centres
    Centres d'évaluation
  • 42
    Industrial plants

    They are organised by regions to ensure they are close to the different markets, so that all opportunities can be seized.

Reason 1 Reason 3 A unique
strategy
3

An inspiring ambition,

winning one billion new consumers

In a worldwide cosmetics market driven by the rise of the middle classes and the growth of consumer spending, L’Oréal has the ambition to attract one billion new consumers.

To succeed in this aim, the group draws on the vitality of its brands, their innovative power and their internationalisation potential.

A strong beauty market

Growth of the worldwide cosmetics market from 2007 to 2016(1)
(estimated annual growth rate, as %)

Growth of the worldwide cosmetics market from 2007 to 2016 (1)

A strong beauty market

  • 7% E-commerce share of worldwide beauty market (1)
    7%
    E-commerce share

    of worldwide beauty market(1)

  • + 20,7% Growth in worldwide online beauty sales (1)
    + 20.7%
    Growth in worldwide

    online beauty sales(1)

  • + 32,7% Like-for-like sales growth L’Oréal’s E-commerce
    + 32.7%
    Like-for-like sales growth

    L’Oréal’s e-commerce(2)

(1) L’Oréal 2016 estimates of the worldwide cosmetics market in net manufacturer prices. Excluding soaps, oral hygiene, razors and blades. Excluding currency effects. (2) Sales achieved on the brands’ own websites and estimated sales achieved by the brands on retailers’ websites (non-audited data).

Reason 2 Reason 4 An inspiring
ambition
4

A responsible commitment,

Sharing Beauty
With All

Because it is not enough for a company to deliver strong economic performance, L’Oréal is committed to the “Sharing Beauty With All” programme to ensure the group’s long-term success.
This programme will be the main spearhead of our citizen commitment, which goes along with our economic and financial performance over the long term.

L’Oréal has been awarded by the CDP(1) with three “A” ratings – the best possible score – in each of the three fields of environmental protection: combating climate change, managing water in a sustainable way and protecting forests. Only two companies, out of more than 3,000 evaluated worldwide, achieved this rating in 2016.

  • Innovating sustainably
    Innovating sustainably
    82%

    of new products assessed have an improved environmental or social impact(2)

  • Producing sustainably
    Producing sustainably
    - 67%

    of CO2 emissions in factories and distribution centres(3).

  • Consuming sustainably
    Consuming sustainably
    90%

    of the brands have evaluated their environmental and social footprint and took commitments to reduce it(4).

  • Sharing our growth
    Sharing our growth
    88%

    of L’Oréal permanent employees have health insurance coverage in line with the best practices in each country.

Learn more about the

“Sharing Beauty With All”

programme’s commitments in the 2016 Annual Report

Learn more

(1) CDP is an independent global organisation that evaluates companies’ achievements in their environmental performance. (2) New products, i.e. those for which new formulas have been developed and which are produced for the first time in the group’s factories, or products whose packaging was modified/renovated in 2016. (3) In the plants and distribution centres. In absolute value. Period 2005-2016. (4) Calculated as a proportion of 2015 consolidated sales.

2016 Results

Reason 3 Reason 5 A responsible
commitment
5

A solid model,

creating value

Supported by the long-term vision of its shareholding structure, stable management and the expertise and commitment of its 89,300 employees, L’Oréal has always targeted profitable and sustainable growth.
The solid balance sheet, financial situation and results confirm the strength of L’Oréal’s business model, which creates value and generates cash flow.

A balanced and solid business model

The economic performances of L’Oréal from 2011 to 2016

  • Sales
     
    + 27%
  • Operating
    profit
    + 38%
  • Net earnings
    per share(1)
    + 50%

Total shareholder return(2)

Total shareholder return

(1) Diluted earnings per share, after non-controlling interests, excluding non-recurring items. (2) The TSR (Total Shareholder Return) takes into account not only the value of the share but also the dividend income received (excluding tax credits before 1 January 2005). At 31 December 2016.

Past performance is not necessarily a guide to future performance.

Reason 4 A solid
model

How to become a L'Oréal shareholder?

To become a L’Oréal shareholder, all you need is one share.
To purchase one or more L’Oréal shares, you have two possibilities:

A bearer

shareholder

You can make a direct request to your bank or financial institution for L’Oréal shares to be purchased on your behalf and register them on a securities account opened in your name.

A registered

shareholder

You can register your shares directly with L'Oréal in a securities account opened in your name, which allows you to receive information straight from L’Oréal.

Become a registered shareholder and receive a loyalty bonus

+10%