L'Oreal : Presentation by Jean-Paul Agon, Chairman and CEO (PDF 6.68 MB)

REIGNITING GROWTH

JEAN-PAUL AGON

Chairman & Chief Executive Officer

Barclays Global Consumer Staples Conference

September 10th, 2020

September 10th, 2020

BEAUTY MARKET

L'ORÉAL

-11.7% 2

-13/-14% 1

September 10th, 2020

1L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates. 2H1-2020like-for-like sales growth.

MONTHLY SALES EVOLUTION1

+8.4%
	FEBRUARY	MARCH	APRIL	MAY	JUNE
JANUARY	-2.3%				-4.6%
		-18.5%		-19.1%
			-34.3%

September 10th, 2020

1Like-for-like.

PROFESSIONAL	CONSUMER	L'ORÉAL	ACTIVE
PRODUCTS	PRODUCTS	LUXE	COSMETICS
RESILIENCE DESPITE CLOSURE	SELL-OUT IN LINE WITH THE	PERFORMED SIGNIFICANTLY	STRONGLY GAINING
OF SALONS, REBOUND SINCE	MARKET DESPITE FOOTPRINT	BETTER THAN THE MARKET	SHARE GLOBALLY
END OF LOCKDOWN	ON MAKE-UP		+9%
	EXCLUDING MAKE-UP,
	SALES ARE FLAT

MARKET1	L'ORÉAL2	MARKET1	L'ORÉAL2	MARKET1	L'ORÉAL2
	-21.3%	≃-6%		-16.8%
≃-28%		-9.4%	≃-23%

MARKET1

L'ORÉAL2

≃-4%

September 10th, 2020 1L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates. 2H1-2020like-for-like sales evolution.

% IN Q2 1	+17.5%1
+30
STRONG GROWTH					H1 PERFORMANCE
IN E-COMMERCE
OUTPERFORMING
IN SKINCARE	MARKET
			L'ORÉAL

-4% 2

September 10th, 2020

1Like-for-like sales growth. 2L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates.

RECORD GROWTH	ACCELERATION	STRONG ACCELERATION
IN H1	EVEN AS STORES RE-OPEN	OUTSIDE OF ASIA

+65%

X2

THE MARKET

25%

OF SALES

		+75%	+82%	USA
			+119% IN Q2
	+63%
+54%
				WESTERN EUROPE
				+91% IN Q2
Q1	APRIL	MAY	JUNE

September 10th, 2020 1Like for like sales growth. Sales achieved on our brands' own websites + estimated sales achieved by our brands corresponding to sales through our retailers' websites (non audited data)

OPERATING MARGIN	LIMITED DECLINE IN
CLOSE TO FY 2019	EARNINGS PER SHARE 1
		(% SALES)	€4.38
18.6	% 18.0%			€3.82

FY 2019	H1-2020	H1-2019	H1-2020
September 10th, 2020	1Diluted earnings per share, excluding non-recurring items, after non-controlling interests.

HIGH

GROSS MARGIN

(% SALES)

73.1% 73.1%

H1-2019H1-2020

September 10th, 2020

1Selling, general and administrative expenses

LOWER SG&As 1

THANKS TO COST DISCIPLINE

€3Bn

€2.7Bn

H1-2019H1-2020

SUSTAINED R&I

INVESTMENTS

(% SALES)

3.1% 3.5%

H1-2019H1-2020

September 10th, 2020

SUSTAINED A&P

INVESTMENTS IN RELATIVE VALUE

(% SALES)

30.2% 30.5%

H1-2019H1-2020

PROTECTING	SUPPORTING	SUPPORTING
OUR EMPLOYEES	CAREGIVERS	OUR PARTNERS

September 10th, 2020

NO FURTHER LOCKDOWN

CONSUMERS ARE BACK TO BEAUTY

September 10th, 2020

POWERFUL LAUNCH PLAN

PROFESSIONAL	CONSUMER	L'ORÉAL	ACTIVE
PRODUCTS	PRODUCTS	LUXE	COSMETICS

ALL GEOGRAPHIES	ALL	ALL
& DIVISIONS	CHANNELS	TOUCHPOINTS
CONTINUED ACCELERATION	CREATING O+O	SHOPPABLE
OUTSIDE OF CHINA	EXPERIENCE WITH	LIVE-STREAMING
		RETAILERS
STRONG DOUBLE-DIGIT	STRONG PARTNERSHIPS	SOCIAL COMMERCE
GROWTH
		WITH PURE PLAYERS
		RELENTLESS PUSH
		ON D2C

September 10th, 2020

MORE

SERVICES

VIRTUAL TRY-ONS

TELECONSULTATION

IN-STORE VIRTUAL TESTERS

September 10th, 2020

MORE	MORE
DIGITAL MEDIA	CONNECTIONS
MEDIA SHIFT	MASSIVE INCREASE OF
	CONVERSATIONS ONLINE
DIGITAL SPEND NOW
GREATER THAN
TRADITIONAL MEDIA

TIGHTER COLLABORATION

WITH RETAILERS

STRONG JOINT

BUSINESS PLAN

BACK TO BEAUTY PLAN WORLDWIDE EXECUTION

EVENTS TO CREATE

EXCITEMENT

SMART OFFERS

TO DRIVE TRAFFIC

September 10th, 2020

STRONGER BOND	CLOSER RELATIONSHIP WITH
WITH HAIRDRESSERS	MEDICAL PROFESSIONALS
NEW RELATIONSHIP THANKS	DIGITALIZATION
TO STRONG SUPPORT	OF CONNECTIONS WITH
DURING THE CRISIS	MEDICAL PROFESSIONALS
HUGE INCREASE IN ONLINE	MASSIVE AMPLIFICATION
SUPPORT & TRAINING	OF REACH
WINNING THE BATTLE FOR
NEW SALONS AND STYLISTS

DRIVING POWER BRANDS	SUPERSIZING
AND HERO PRODUCTS	ONLINE EVENTS
	CHINESE
	VALENTINE'S DAY
	SUPERBRAND DAY
	LANCÔME 85 YEARS
	ANNIVERSARY
	11.11

September 10th, 2020

ENHANCING

THE O+O MODEL

SEAMLESS

BRAND EXPERIENCE

SHOPPABLE

LIVE-STREAMING

SOCIAL COMMERCE

STRONG SHIFT	UNLEASHING LAUNCHES
TO SKINCARE	WITH MASSIVE SUPPORT

40%

35%

AS % OF SALES	AS % OF SALES
2019	H1 2020

STRONG TRUSTED ASPIRATIONAL BRANDS WILL PREVAIL

WE ARE REINFORCING THE EQUITY OF OUR STAR BRANDS

September 10th, 2020

MEDIA INVESTMENT	MORE INVESTMENT	FOCUS ON	ROI
INCREASING	IN DIGITAL MEDIA	CONVERSION	IS INCREASING
		AND SALES

September 10th, 2020

STRICT COSTS	SMART OPTIMIZATION	PERMANENT	DECISIVE PORTFOLIO
CONTROL	OF A&Ps	TRANSFORMATION	MANAGEMENT
H1 MEASURES MAINTAINED	TO MAXIMIZE ROI	TO MAXIMIZE	TO FOCUS ON
FOR H2		EFFICIENCY	WINNING ASSETS

HEADCOUNT FREEZE	PIVOT TO DIGITAL	ADAPTING OUR
		FOOTPRINT:
TRAVEL BAN	VIRTUAL TESTERS	DISTRIBUTION
		INDUSTRY
CONSULTING FEES	REDUCTION OF POS	LOGISTICS
	MATERIAL
STRICT CONTROL
OF INVESTMENTS

CLOSURE OF

CLARISONIC

DISPOSAL OF

ROGER & GALLET

INTEGRATION OF MUGLER, AZZARO, THAYERS, VALENTINO

TRIPLE AMBITION:

• OUTPERFORM THE MARKET
• GET BACK TO POSITIVE LIKE-FOR-LIKE SALES GROWTH
• WITHOUT COMPROMISING PROFITABILITY

September 10th, 2020

September 10th, 2020

FINANCIAL

9/11 SARS CRISIS MERS

6%

5%

4%

3%

2%

1%

0% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

September 10th, 2020

1L'Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes, at constant exchange rates.

NEW CONSUMERS	NEW CHANNELS
ARE ENTERING	ARE INCREASING
THE MARKET	ACCESS TO BEAUTY
MIDDLE & UPPER	ONLY THE BEGINNING
CLASSES	OF THE E-COMMERCE
	JOURNEY
AGEING POPULATION
MEN'S CONSUMPTION

NEW BEAUTY NEEDS	NEW CONNECTIONS
ARE CREATING	ARE ENGAGING
NEW DEMANDS	MORE CONSUMERS
MORE HEALTHY	MORE SERVICES
MORE NATURAL	MORE SOCIAL
MORE SUSTAINABLE	MORE PERSONALIZED

September 10th, 2020

THE MOST POWERFUL	THE STRONGEST	THE LEADING EDGE
FORCE IN R&I	PORTFOLIO OF BRANDS	IN DIGITAL

THE MOST GLOBAL	UNIQUE ORGANIZATION	LEAD IN
FOOTPRINT	AND CULTURE	SUSTAINABILITY

September 10th, 2020

In 2020

We are determined to outperform the market, find again the path to growth if the sanitary conditions allow it, and deliver solid profitability.

September 10th, 2020

------------------------- 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."

September 10th, 2020