A robust and balanced business model

The group recorded strong growth in 2015, supported by a positive monetary effect, and outperformed the beauty market in three of its four Divisions. The growth in sales, earnings per share(1) and dividend illustrates the quality and robustness of the L'Oréal business model.

Strong progression of sales
+12.1% based on reported figures

Consolidated sales(3)
(in millions of euros)

  • 20,343
    2011
  • 21,638
    2012
  • 22,124
    2013
  • 22,532
    2014
  • +3.9%(4)
    25,257
    2015

Weight of digital in sales(5)

  • €1.3 Bn sales in e-commerce
  • 5.2% of consolidated sales in e-commerce
  • +37.9%like-for-like e-commerce sales growth

Breakdown of 2015 cosmetics Divisions’ sales
(as %)

Divisions

  • 48.7% Consumer Products
  • 29.8% L’Oréal Luxe
  • 14.0% Professional Products
  • 7.5% Active Cosmetics

Geographic Zones

  • 33.1% Western Europe
  • 27.4% North America
  • 39.5% New Markets:
  • 22.5% Asia, Pacific
  • 7.7% Latin America
  • 6.3% Eastern Europe
  • 3.0% Africa,  Middle East

Business Segments

  • 29.6% Skincare
  • 23.8% Make-up
  • 19.7% Haircare
  • 12.7% Hair colourants
  • 9.8% Fragrances
  • 4.4% Other(6)

A new increase in earnings per share

Operating profit
(in millions of euros)

  • 3,293
  • 3,558
  • 3,760
  • 3,891
  • +12.8%
    4,388
  • 2011
  • 2012
  • 2013
  • 2014
  • 2015

Net profit excluding non-recurring items after non-controlling interests(7)
(in millions of euros)

  • 2,583
  • 2,861
  • 3,032
  • 3,125
  • +11.7%
    3,490
  • 2011
  • 2012
  • 2013
  • 2014
  • 2015

Earnings per share(8)
(in euros)

  • 4.32
  • 4.73
  • 4.99
  • 5.34
  • +15.7%
    6.18
  • 2011
  • 2012
  • 2013
  • 2014
  • 2015

Balance of operating profitability

Operating profitability by Division
(as % of sales)

  • Cosmetics Divisions’ profitability
    20.5%
  • 20.1%
    Consumer Products
  • 20.7%
    L’Oréal Luxe
  • 20.0%
    Professional Products
  • 22.8%
    Active Cosmetics

Operating profitability by Zone
(as % of sales)

  • Cosmetics Divisions’ profitability
    20.5%
  • 22.7%
    Western Europe
  • 18.9%
    North America
  • 19.7%
    New Markets
  • 20.5%
    Cosmetics Divisions’ profitability

A solid balance sheet

  • Shareholders’ Equity 70% of total assets
  • Net cash surplus of 618 million euros
  • Capital expenditure 4.6% of sales

A dynamic shareholder return policy

Dividend per share
(in euros)

  • €2.20
    €2.00
    2011
  • €2.53
    €2.30
    2012
  • €2.75
    €2.50
    2013
  • €2.97
    €2.70
    2014
  • €3.41 (9)
    +14.8%
    €3.10 (10)
    2015
€3.41 = A preferential dividend of 10% for shares held in registered form for two years(9)

Pay-out ratio(11)
(as % of results)

  • 46.3%
  • 46.8%
  • 48.7%
  • 50.6%
  • 50.2% (12)
  • 2011
  • 2012
  • 2013
  • 2014
  • 2015
  • €155.30Share price(13)
  • €87.43 Bn Market capitalisation(14)
(1) Diluted earnings per share, based on net profit from continuing operations, excluding non-recurring items, attributable to owners of the company.
(2) Based on the dividend proposed at the Annual General Meeting on April 20th, 2016.
(3) The announcement on February 11th, 2014, of the disposal of 50% of Galderma leads to account for this business in accordance with IFRS 5 accounting rule on discontinued operations. In accordance with IFRS 11 accounting rule, Innéov has been consolidated under the equity method of January 1st, 2014. All figures for earlier periods have been restated accordingly.
(4) Like-for-like.
(5) Sales achieved on the brands’ own websites and estimated sales achieved by the brands corresponding to sales through retailers’ websites (non-audited data).
(6) “Other” includes hygiene products and sales made by American professional distributors with brands outside of the group.
(7) Net profit excluding non-recurring items after non-controlling interests does not include impairment of assets, restructuring costs, tax effects or non-controlling interests.
(8) Diluted earnings per share, based on net profit from continuing operations, excluding non-recurring items, attributable to owners of the company.
(9) For shareholders who continuously hold their shares in registered form for a minimum of two full calendar years, up to a maximum of 0.5% of the capital for the same shareholder.
(10) Dividend proposed at the Annual General Meeting on April 20th, 2016.
(11) Pay-out ratio based on diluted net profit excluding non-recurring items, after non-controlling interests, per share.
(12) Based on the dividend proposed at the Annual General Meeting on April 20th, 2016.
(13) At December 31st, 2015.
(14) On the number of shares at December 31st, 2015, i.e. 562,983,348.