L'Oréal - 2018 Registration Document

1 Presentation of the Group Integrated report AN ORGANISATION THAT SERVES THE GROUP’S DEVELOPMENT

AN ORGANISATION THAT SERVES THEGROUP’S 1.4. DEVELOPMENT

The Group’s organisation responds to a dual challenge: pursuing the strategy which has enabled L’Oréal to be successful over the last 110 years and at the same time inventing the new L’Oréal of the future, perfectly matched to an ever-changing world.

L’ORÉAL S.A. 1.4.1. L’Oréal S.A. is a French company, with its head office in France. It performs a sales activity that is specific to France. At the same time, L’Oréal parent company has firstly a role of holding company and strategic coordination and secondly that of scientific, industrial and marketing coordination of the L’Oréal Group on a worldwide basis. The subsidiaries operate the Group’s business activities in the country or region in which they are located. To do so, they define the strategy specific to their market, make the most suitable choices, and manufacture, directly or indirectly, and market the products they decide to sell on their market. Almost all of the subsidiaries are owned by L’Oréal S.A. which has a holding or control percentage equal or close to 100% (1) . The detailed list of these subsidiaries is set out in the notes to the consolidated and parent company financial statements.

OPERATIONAL DIVISIONS 1.4.2. The Group’s business activities are organised into four Operational Divisions. In its markets, each Operational Division develops and enhances a range of its own brands of consumer products (see paragraph 1.2.1 “Group Profile”). Travel Retail is a fast-growing transversal channel that conveys the Company’s image and is expanding in line with passenger numbers. By establishing the multi-Division Travel Retail department, the Group has put in place the means to develop this segment using a global shopper strategy: a bespoke approach tailored according to language, culture and beauty rituals, enabling the Group to respond to the aspirations of this new generation of travellers. GEOGRAPHIC ZONE 1.4.3. The Group’s international development has naturally meant that L’Oréal has had to adapt its organisation to the need to coordinate the establishment and development of its brands on every continent. Various geographical zones have been created for this purpose, each with operational responsibility for the subsidiaries based in the countries of its region (see paragraph 1.2.1 “Group Profile”). SUPPORT DEPARTMENTS 1.4.4. Several specialist corporate departments provide their expertise and support to the Operational Divisions, to subsidiaries in their market and to the other business activities (see paragraph 1.2.1 “Group Profile”).

Furthermore, it is mentioned, pursuant to Article L. 232-1 of the French Commercial Code, that L’Oréal S.A. has branches. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2018

44