Professional Documents
Culture Documents
Jean-Paul AGON
Chairman & Chief Executive Officer
February 23rd, 2018 *Excluding razors, soaps and toothpastes. 2017 provisional estimates - source: L’Oréal estimates. Excluding exchange rate impact
A GOOD YEAR
FOR THE
DEVELOPMENT
OF L’ORÉAL
+5.5%
+5.1%
+4.2% +4.3%
Q1 Q2 Q3 Q4
2017 2017 2017 2017
February 23rd, 2018 *Like-for-like sales growth
L’ORÉAL LUXE : +10.5%*
*2017 like-for-like sales growth **2017 like-for-like sales growth. Sales achieved on our brands’ own websites and
February 23rd, 2018 estimated sales achieved by our brands corresponding to sales through retailers’ websites (non-audited data)
CONSUMER PRODUCTS: +2.2%*
+1.4%*
CONTRASTED US PERFORMANCE
GAINED SHARE IN MAKEUP:
Q1 Q2 Q3 Q4 MAYBELLINE #1, L’ORÉAL PARIS NOW #2
LOST SOME GROUND IN HAIRCARE LAST YEAR
1 3
GLOBAL BRANDS MEETING MARKETING REINVENTED
NEW ASPIRATIONS IN THE DIGITAL AGE
2 4
GAME-CHANGING OMNICHANNEL
INNOVATIONS STRATEGY
A SUBDUED MARKET
IN NEED OF REINVIGORATION
PROGRESSIVE IMPROVEMENT
OF OUR PERFORMANCE TOWARDS
THE END OF THE YEAR
+2%**
4TH QUARTER
February 23rd, 2018 *2017 like-for-like sales growth **Q4-2017 like-for-like sales growth
PROFESSIONAL PRODUCTS
IN STRATEGIC CATEGORIES
IN STRATEGIC CHANNELS
IN STRATEGIC REGIONS
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
STRENGTHENED POSITIONS IN STRATEGIC CHANNELS
E-COMMERCE
8%* OF SALES
EQUIVALENT TO OUR
#3 COUNTRY
*2017 like-for-like sales growth. Sales achieved on our brands’ own websites and estimated sales
February 23rd, 2018 achieved by our brands corresponding to sales through retailers’ websites (non-audited data)
STRENGTHENED POSITIONS IN STRATEGIC CHANNELS
TRAVEL RETAIL
SOON
EXTENDED
+ 19%* OUR LEADERSHIP 2Bn
SALES GROWTH IN SALES
+8.9%
+6/+7%
MARKET* L’ORÉAL**
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
STRENGTHENED POSITIONS IN STRATEGIC REGIONS
EXCELLENT OVERPERFORMANCE IN THE NEW MARKETS
MARKET* L’ORÉAL**
ACCELERATION OF
OUR GROWTH IN CHINA + 13%**
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
+40bps
18.0%
17.6% 3,970
3,318
February 23rd, 2018 *Net cash flow: gross cash flow - changes in working capital - capital expenditure
HIGH QUALITY RESULTS
A DYNAMIC DIVIDEND POLICY
DIVIDEND PER SHARE SINCE 1963 IN EUROS
10%
+
Dividend increase for
shareholders who have
3.55* +7.6%
continuously held
LOYALTY shares in registered
form for at least 2 years
BONUS
February 23rd, 2018 *To be proposed at the Annual General Meeting on April 17th, 2018
HIGH QUALITY RESULTS
POWERFUL, BALANCED & VALUE-CREATING BUSINESS MODEL
FOCUS ON TOPLINE
GROWTH
+
OPERATIONAL
DISCIPLINE
2017 2017
OPERATING MARGIN OPERATING MARGIN
BY REGION* BY DIVISION*
(AS A % OF SALES) (AS A % OF SALES)
22.9% 22.6%
21.9%
19.2% 20.3% 20.0% 20.0%
20.8%
February 23rd, 2018 *Before central group expenses, fundamental research expenses, stock options and free grant of shares and miscellaneous items
DOUBLE-DIGIT TSR
ANNUAL TOTAL SHAREHOLDER RETURN*
+14%
+12%
+10%
20
YEARS
5
YEARS
3
YEARS
February 23rd, 2018 *Takes into account the value of the share and the dividend income received (excluding tax credits). At December 31 st 2017
TOTAL CONFIDENCE
IN OUR UNIQUE
BUSINESS MODEL
+4/+5%*
≃+4%*
≃ +3.9%*
≃ +3.6%* 205 Bn€
203 Bn€
181 Bn€
February 23rd, 2018 *Beauty market annual growth, excluding soaps, toothpates and razors, at constant exchange rate - Source: L'Oréal estimates
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
BECAUSE OF THE RISE OF THE MIDDLE & UPPER CLASSES
+2.4 Bn
MIDDLE & UPPER CLASSES
UPPER CLASS
SPENDING
x2
BETWEEN 2015 & 2030
5.6
3.2
2015 2030
BOTTLED WATER
16
8 L’ORÉAL,
HOUSEHOLD
CLEANING SUPPLIES CHAMPION
TRADE DOWN* TRADE UP*
OF PREMIUM
BEAUTY
February 23rd, 2018 *% of people who traded up/down - Source: McKinsey Global Consumer Sentiment Survey, 2016
A BEAUTY MARKET THAT WILL CONTINUE TO GROW
BECAUSE OF THE “SOCIAL BEAUTY” REVOLUTION
GROWING INTEREST
IN BEAUTY & SELF-CARE
1Bn
0.6Bn
2015 2030
URBAN POPULATION
5Bn *
“CITYZENS” BY 2030
BEAUTY
EXPERTISE
BASED ON
SHARP
CONSUMER
& CULTURAL
INSIGHTS
IN A WORLD OF RATINGS,
REVIEWS AND ADVOCACY
SUPERIOR QUALITY
IS A PARAMOUNT ADVANTAGE
R&D EXPENSES
IN MILLION EUROS
877
850
794
€877M 748 761
680
3,885 DEDICATED
R&I TO R&I
EXPERTS IN 2017
8 BILLIONAIRE BRANDS
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
THE POWER OF BRANDS
THE BIG
GET BIGGER
DOUBLE-DIGIT
LIKE-FOR-LIKE
GROWTH IN 2017
DOUBLED SALES
IN 3 YEARS
February 23rd, 2018
L’ORÉAL FUNDAMENTALS ARE MORE RELEVANT THAN EVER
THE POWER OF BRANDS
1,900 EXPERTS
19,000 UPSKILLED
EMPLOYEES
DM1
82% OF MARKETERS
EMPOWERED
LOCAL TEAMS
1.8 BILLION
IMPRESSIONS
OF MEDIA SPEND
38% ON DIGITAL
WITH A SHARP
FOCUS ON ROI
L2 DIGITAL IQ
US, CHINA, FRANCE, GERMANY
5
February 23rd, 2018
UNIQUE MULTIPOLAR FOOTPRINT
BEING MULTI-DIMENSIONAL GIVES US:
INVALUABLE INSIGHTS INTO ABILITY TO DETECT “COMPENSATION EFFECT”
CONSUMERS’ RELATIONSHIPS CONSUMPTION TRENDS BETWEEN GEOGRAPHIES,
WITH BEAUTY EARLY CATEGORIES, CHANNELS
7 DISTRIBUTION CHANNELS
DEPARTMENT STORES PHARMACIES DRUGSTORES
HAIR SALONS MASS MARKET PERFUMERIES MEDISPAS BRANDED RETAIL TRAVEL RETAIL E-COMMERCE
5 BEAUTY CATEGORIES
ACROSS
ACROSS
ALL PRICE
68 COUNTRIES
SEGMENTS
HAIRCARE HAIR COLOR SKINCARE FRAGRANCES MAKEUP
February 23rd, 2018
6
LEADING
RESPONSIBILITY
CONSCIENCE &
PERFORMANCE
2017 RESULTS
1 OF ONLY 2
COMPANIES
RANKED AAA
BY CDP
NEWSWEEK GREEN
RANKING 2017
9TH YEAR
“ONE OF THE MOST
ETHICAL COMPANIES
IN THE WORLD”
#1
PERSONAL & HOUSEHOLD
GOODS CATEGORY
#2
GLOBAL COMPANIES FOR
ALL INDUSTRIES COMBINED
February 23rd, 2018
UNIQUE CULTURE,
7 ORGANISATION &
QUALITY OF TEAMS
83,000 BEAUTY
EXPERTS
UNIQUE CULTURE
DECENTRALIZED
ORGANIZATION