L'Oréal - 2018 Registration Document

1 Presentation of the Group Integrated report

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

HAIR SALONS

MASS-MARKET RETAIL CHANNELS

DEPARTMENT STORES PARFUMERIES

CONVENIENCE STORES IN NEW MARKETS

SUPPLY CHAIN

PHARMACIES DRUGSTORES MEDISPAS

E-COMMERCE

TRAVEL RETAIL

BRANDED RETAIL

COSMETICS INVESTMENT COMMITMENTS (PRODUCTION AND SUPPLY CHAIN COMMITMENTS IN € MILLION)

Data management is a critical challenge, and represents a veritable opportunity, especially in the retail sector and in stores managed directly by L’Oréal. Data can provide a comprehensive overall view of business in a store, as well as improve the understanding of the consumer purchase journey. The goal is to increase agility to handle market variations on all distribution channels and to adapt to local consumer requirements. Sustainable Development is also central to the supply chain strategy. To shrink the environmental footprint of transport activities, L’Oréal deployed its global strategic initiative to promote cooperation between carriers and to co-develop tailored solutions to address the specific needs of each geographical zone (Europe, Africa, Middle East, North America, Latin America, Brazil and Asia, Pacific). Global economic performance at the service of the brands and the commercial entities Operations have major economic responsibility for all the brands and markets and that impact total product costs. Economic optimisation efforts led by Operations involve tracking the Total Landed Cost, i.e. , the final full cost of a product, which includes the cost of packaging and raw materials, the value added by the plants and all supply chain costs.

370

340

305

2018

2016 2017

PRODUCTION AND SALES BY OPERATING DIVISIONS BY GEOGRAPHIC ZONE IN 2018: PRODUCTION CLOSE TO ITS MARKETS

41.2%

Western Europe

29.9%

21.9%

North A merica

26.9%

36.9%

New Markets

Production Sales

43.2%

REGISTRATION DOCUMENT / L'ORÉAL 2018

26