L'Oréal - 2018 Registration Document
1 Presentation of the Group Integrated report
BUSINESS MODEL - A DEVELOPMENT MODEL SERVING A CLEAR MISSION: BEAUTY FOR ALL
NET DEBT
SHORT-TERM RATINGS
31.12.2016 31.12.2017 31.12.2018
A1 +
Standard & Poor’s
SEPTEMBER 2018
Net cash position = Net cash or net debt (€ million) (1) Net gearing (Net financial position/Equity)
+ 481,4 + 1 872,2
+ 2 751
PRIME 1
Moody's
APRIL 2018
F1 +
Fitch Ratings
SEPTEMBER 2018
n/a n/a Net cash (+) or net debt (-) = cash and cash equivalents – current and (1) non-current debt n/a
A SOLID BALANCE SHEET (€ MILLION)
ASSETS
EQUITY & LIABILITIES
38,457.5
38,457.5
35,630.2 35,339.1
35,630.2 35,339.1
Total assets and liabilities
Total assets and liabilities
24,818.5
26,933.6
24,504.0
25,584.6
24,320.1 25,991.2
Shareholders' equity
Non-current assets
1,174.4 1,333.8
1,241.3 1,398.7
1,264.6 1,888.0
Non-current liabilities Debts (current and non-current)
10,045.6
11,019.0 12,466.3
Current assets
1,746.0
3,046.6 3,992.0
Including cash and cash equivalent
8,012.4
8,883.8
7,973.6
Current liabilities
2018
2018
2016
2016 2017
2017
AN AMBITION: UNIVERSALISATION, 1.2.3. TO MEET GLOBAL DEMAND FOR BEAUTY L’Oréal relies on a single strategy – Universalisation – meaning globalisation that respects differences. This strategy aims at offering beauty attuned to the specific expectations of consumers in every region of the world. It is based on a keen ability to listen to consumers and a profound respect for their differences in each and every country. This is why the Group’s Research and Marketing teams in all its markets are alive to the specific needs of its customers and laboratories around the world. The innovation policy is based on affordability and on the adaptation of products to the beauty rituals and lifestyles of all men and women in their infinite diversity. AN INTERNATIONAL PRESENCE 1.2.4. L’Oréal was founded in France in 1909 and quickly expanded in Western Europe and developed a significant and strategic presence in these markets. In 2018, it generated 29.9% of its sales on this historical territory. To make Universalisation a really powerful strategy, the global market has been organised into 5 large homogeneous regions, even more attentive to consumers and closer to their desires.
In addition to the country and marketing strategy which underlies Universalisation, the Group is a resolutely multi-centric organisation with its “nerve centre” in France. Each major region has its own centre of expertise or excellence for Research and Marketing activities. Research therefore has 6 regional hubs across the globe, led by central teams and fuelled by the Group’s core expertise and fundamental knowledge. L’Oréal’s ambition is to win one billion new consumers in the coming years, i.e. double the number of men and women that use its products worldwide. The conquest of this billion new consumers will partly take place in New Markets, driven by a two-fold phenomena. On the one hand, the growth in the number of consumers thanks to the emergence of an increasingly numerous middle class, that wants to access quality products. On the other hand, the growth in expenditure per consumer, which is still five times lower than in mature countries. L’Oréal has a considerable growth potential in the New Markets, which are already the Group’s leading geographic zone. Moreover, although L’Oréal’s market share is much larger in the mature countries, its brand penetration still has significant scope for improvement, and the Group is continuing to invest in this direction.
REGISTRATION DOCUMENT / L'ORÉAL 2018
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