L'Oréal - 2018 Registration Document

1 Presentation of the Group Integrated report

BUSINESS MODEL - A DEVELOPMENT MODEL SERVING A CLEAR MISSION: BEAUTY FOR ALL

1.2. L'ORÉAL GROUP'S PROFILE 1.2.1.

BUSINESS MODEL - A DEVELOPMENTMODEL SERVING A CLEARMISSION: BEAUTY FOR ALL

1.2 BUSINESSMODEL - ADEVELOPMENTMODELSERVINGACLEAR MISSION: BEAUTYFORALL

1.2.1 L’ORÉAL GROUP PROFILE L’Oréal is the world leader in beauty – its sole business, its expertise and its passion for 110 years.The Group is split into Divisions that each has a specific vision of beauty, by consumption universe and distribution channels.

SUPPORT FUNCTIONS

Research and innovation The Corporate Research and Innovation Department is responsible for advanced and applied research. Digital The Corporate Digital Department seeks to accelerate the Group's digital transformation by helping the brands to create enriched spaces for expression and helping the teams to build more interactive,personalised and closer relationships with consumers,while taking advantage of the business development opportunities offered by Digital as a distribution channel. Operations The Corporate Operations Department contributes to the Group’s growth, from the design of packaging, sourcing, production and information systems through to the distribution of the Group’s products thanks to an integrated value chain aimed at guaranteeing consumers around the world compliance with strict quality, security and safety standards, together with societal and environmental responsibility. Human Resources The Corporate Human Resources Department is in charge of recruitment, training and talent development policies and of coordinating social policy. Administration & Finance The Corporate Administration and Finance Department takes responsibility for the Group’s financial policy, management and consolidation, acquisitions, and legal and tax co-ordination, as well as financial reporting, investor and shareholder relations, and strategic planning. Communication and Public Affairs The Corporate Communication and Public Affairs Department is responsible for coordinating corporate communication and coordinating brand communication. Environmental and Social Responsibility The Environmental and Social Responsibility Department is in charge of the Group's Sustainable Development policy through its Sharing Beauty With All programme,sponsorship actions and citizen engagement projects by the Group and the L'Oréal Corporate Foundation.

Professional Products

OUR MISSION

Offer the expertise of professional beauty based on 110 years of knowledge and support for the world of hairdressing.

An exciting mission: beauty for all.

CONTRIBUTION TO PERFORMANCE

Cosmetics are rich in meaning. They allow everyone to nurture their self-confidence,to express their personality and to open up to others. The mission that L’Oréal has set itself,and which drives its teams, is to offer women and men all over the world the very best in cosmetics, in terms of quality,efficacy and safety, to satisfy all their needs and desires for beauty, in their infinite diversity.

Net sales €3,262.5 million 12.1% share of Group sales Operating margin as a % of sales 20.0%

MISSION ♦ A portfolio of unique brands.

♦ Reinvent professional beauty and support the transformation of the industry through digital resources: creation of a direct and inspiring link between brands, professionals and their consumers in each market.

OUR STRATEGY

A unique development strategy: Universalisation Universalisation means globalisation, in a finely tuned understanding of differences and respect for them.Our goal is to offer beauty that meets the specific aspirations of consumers in all parts of the world.In contrast to standardisation, it draws on an ability to listen to consumers and a profound respect for their differences.

OUR BRANDS

The strategy is built on a portfolio of

36 diverse and brands .

complementary

REGISTRATION DOCUMENT / L'ORÉAL 2018

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