M. Jean-Paul AGON Chief Executive Officer February 16 th 2010
COSMETICS MARKET
Worldwide cosmetics market* Estimates** Sell-in 2009 (shipments) MASS MARKET PHARMACIES LUXURY HAIR SALONS TOTAL *excluding soaps and toothpastes 2009 provisional estimate **L Oréal estimates. Excluding exchange rate impact + 2% à +3% -1% -6% -5% + 1 % February 16th 2010 3
Worldwide cosmetics market* Estimates** Sell-in 2009 (shipments) WESTERN EUROPE NORTH AMERICA JAPAN NEW MARKETS EXCL. JAPAN TOTAL *excluding soaps and toothpastes 2009 provisional estimate **L Oréal estimates. Excluding exchange rate impact -1.2% -2.2% -8.2% + 8.9% +1.0 % February 16th 2010 4
Worldwide cosmetics market* New Markets excl. Japan Estimates** Sell-in 2009 (shipments) LATIN AMERICA ASIA EXCL. JAPAN EASTERN EUROPE AFRICA, ORIENT, PACIFIC TOTAL *excluding soaps and toothpastes 2009 provisional estimate **L Oréal estimates. Excluding exchange rate impact + 10.9 % + 9.1 % + 7.5 % + 7.5 % + 8.9 % February 16th 2010 5
85 OF WORLDWIDE POPULATION % 50 OF WORLDWIDE COSMETICS MARKET %
DIVISIONS
CONSUMER PRODUCTS + 3.2% * * Cosmetic sales like-for-like evolution
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LUXURY PRODUCTS -9.0% * * Cosmetic sales like-for-like evolution
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PROFESSIONAL PRODUCTS -3.3% * * Cosmetic sales like-for-like evolution
25 000 NEW SALONS
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ACTIVE COSMETICS -1.5% * * Cosmetic sales like-for-like evolution
+ 0.7% * * like-for-like evolution
The Body Shop Sales 2009 Variation in % RETAIL SALES (1) RETAIL SALES WITH A COMPARABLE STORE BASE (2) LIKE-FOR-LIKE CONSOLIDATED SALES NUMBER OF STORES (1) Retail sales: Total sales to consumers through all channels. (2) Total sales to consumers by stores which operated continuously from January 1st to December 31st 2008 and over the same period in 2009. + 1.0% -0.6% + 0.7 % 2 550 February 16th 2010 28
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+1 * 0. %* 8like-for-like evolution
REGIONS
+ 3.5% - WESTERN EUROPE 6. 3 % + 1.0% -0.5% -4.0% + 0.6% - 20.2% -7.6% * Cosmetic sales likefor-like evolution February 16th 2010 32
NORTH AMERICA - 3. 4 % * Cosmetic sales likefor-like evolution February 16th 2010 33
Evolution of cosmetics sales 2009 New Markets zone LIKE-FOR-LIKE + 12.2 % + 8.0% +6.3 % +1.8 % 4 th Quarter 3 rd Quarter 2 nd Quarter 1 st Quarter February 16th 2010 34
ASIA EXCLUDING JAPAN +17.9 %* 4 th QUARTER * Cosmetic sales likefor-like evolution
EASTERN EUROPE +11.4 %* 4 th QUARTER * Cosmetic sales likefor-like evolution
LATIN AMERICA +10.3 %* 4t h QUARTER * Cosmetic sales likefor-like evolution
Ukraine +30.3% Korea +35.8% Chile +13.5% Brazil +15.0% India +31.5% China +17.6% * Cosmetic sales like-for-like evolution Argentina +16.0% Indonesia + 21.5% February 16th 2010 38
SOUTH AFRICA
PAKISTAN
Weight of the New Markets zone in cosmetics sales 50% 50 40 36 % 30 25 19.1% 15 0 8% 2000 2010 2020 1990 February 16th 2010 41
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OUR TARGET ONE BILLION NEW CONSUMERS February 16th 2010 44
RECHARCH AND EVALUATION CENTRES 18 RESEARCH CENTRES 13 EVALUATION CENTRES February 16th 2010 46
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CONTRIBUTION OF NEW MARKETS TO THE GROWTH OF SALES AND RESULTS CONTRIBUTION TO SALES GROWTH CONTRIBUTION TO RESULTS GROWTH February 16th 2010 49
3 MAJOR STRATEGIC CHANGES BROADENING OF THE CONSUMER BASE PROFOUND TRANSFORMATION OF THE COMPANY DETERMINED INCREASE OF INVESTMENTS IN R&D AND ADVERTISING & PROMOTION February 16th 2010 50
3 MAJOR STRATEGIC CHANGES BROADENING OF THE CONSUMER BASE PROFOUND TRANSFORMATION OF THE COMPANY DETERMINED INCREASE OF INVESTMENTS IN R&D AND ADVERTISING & PROMOTION February 16th 2010 51
BROADENING OF THE CONSUMER BASE ACCESSIBLE INNOVATION EXTENSION TO NEW CATEGORIES ACCELERATION OF GLOBALISATION February 16th 2010 52
L ORÉAL PROFESSIONNEL INOA LANCÔME GÉNIFIQUE TRADING RIGHT L ORÉAL PARIS ROLL-ON ACCORD PARFAIT VICHY ESSENTIELLES February 16th 2010 53
BROADENING OF THE CONSUMER BASE ACCESSIBLE INNOVATION EXTENSION TO NEW CATEGORIES ACCELERATION OF GLOBALISATION February 16th 2010 54
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BROADENING OF THE CONSUMER BASE ACCESSIBLE INNOVATION EXTENSION TO NEW CATEGORIES ACCELERATION OF GLOBALISATION February 16th 2010 56
3 MAJOR STRATEGIC CHANGES BROADENING OF THE CONSUMER BASE PROFOUND TRANSFORMATION OF THE COMPANY DETERMINED INCREASE OF INVESTMENTS IN R&D AND ADVERTISING & PROMOTION February 16th 2010 57
THOROUGH TRANSFORMATION OF THE COMPANY INDUSTRIAL CHANGE ACCELERATION OF REORGANISATION REDUCTION OF COSTS February 16th 2010 58
INDUSTRIAL CHANGE CENTRALISATION OF PURCHASING CLOSURE AND TRANSFER OF SITES BETTER UTILISATION OF EQUIPMENT ADVANCES IN PRODUCTIVITY
Gross profit (as % of sales) 2008 2009 GROSS PROFIT (as % of sales) 70.4% 70.5% + 10 basis points 17 février 2009 February 16th 2010 60
INVENTORY -17 REDUCTION MILLION 0EUROS DECREASE OF TRADE ACCOUNTS RECEIVABLE INCREASE IN OPERATING NET CASH - 31 MILLION 2EUROS + 40.3 %
THOROUGH TRANSFORMATION OF THE COMPANY INDUSTRIAL CHANGE ACCELERATION OF REORGANISATION REDUCTION OF COSTS 17 février 2009 February 16th 2010 62
THOROUGH TRANSFORMATION OF THE COMPANY INDUSTRIAL CHANGE ACCELERATION OF REORGANISATIONS REDUCTION OF COSTS 17 février 2009 February 16th 2010 63
Selling, general and admin. expenses (as % of sales) 2008 2009 SELLING, GENERAL AND ADMIN. EXPENSES (AS % OF SALES) 21.5% 21.4% - 10 basis points February 16th 2010 64
3 MAJOR STRATEGIC CHANGES BROADENING OF THE CONSUMER BASE PROFOUND TRANSFORMATION OF THE COMPANY DETERMINED INCREASE OF INVESTMENTS IN R&D AND ADVERTISING & PROMOTION February 16th 2010 65
Research expenses (in millions of euros) 609 +3.7% 588 2008 2009 February 16th 2010 66
Research & Development (as % of sales) 2008 2009 RESEARCH & DEVELOPMENT (as % of sales) 3.3% 3.5% + 20 basis points February 16th 2010 67
Cosmetic and Dermatological Research Number of L Oréal patents 674 700 628 600 569 576 500 529 2006 2007 2008 2009 2005 February 16th 2010 68
Advertising and promotion (as % of sales) 2008 2009 ADVERTISING AND PROMOTION (as % of sales) 30.0% 30.8% + 80 basis points February 16th 2010 70
L Oréal Share of voice END DECEMBER 2008 2009 EUROPE 15 (1) * 36.3 % 38.6 % USA (2) - (14 categories) 19.5 % 22.3 % CHINA 13 % 19 % RUSSIA (3) - (10 categories) 21.1 % 28.8 % BRAZIL (4) 7.2 % 9.5 % (1) Zenith Optimedia (2) CMR Stradegy (3) TNS Gallup Adfact (4) Ibope monitor * End November, L Oréal perimeter February 16th 2010 71
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GROSS MARGIN RESEARCH & DEVELOPMENT EXPENSES + 0 1BASIS 2BASIS POINTS POINTS + 0 0 8BASIS ADVERTISING SELLING, GENERAL AND PROMOTION AND ADMIN. EXPENSES EXPENSES + - 0 1BASIS POINTS POINTS 17 février 2009 February 16th 2010 73
2 0 1 0
Dividend per share 1.44 1.50 * + 4.2% 2008 2009 * Proposed at the Annual General Shareholders Meeting to be held on April 27th, 2010 17 février 2009 February 16th 2010 75
OUR MISSION TO OFFER WOMEN AND MEN THE WORLD OVER THE BEST QUALITY, MOST EFFECTIVE, SAFEST COSMETICS AND THEREBY SATISFY ALL THEIR BEAUTY NEEDS AND DESIRES IN ALL THEIR INFINITE DIVERSITY.
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http://www.loreal-finance.com Thierry Prevot Directeur Général de la Communication Financière Group General Manager, Financial Communications Tel. : + 33 1 47 56 86 22 Fax : + 33 1 47 56 74 93 email : tprevot@dgaf.loreal.com Caroline Millot Directeur des Relations avec les Investisseurs Head of Investors Relations Tel. : + 33 1 47 56 86 82 Fax : + 33 1 47 56 74 93 email : cmillot@dgaf.loreal.com Avertissement / Disclaimer «Ce document ne constitue pas une offre de vente ou la sollicitation d une offre d achat de titres L Oréal. Si vous souhaitez obtenir des informations plus complètes concernant L Oréal, nous vous invitons àvous reporter aux documents publics déposés en France auprès de l Autorité des Marchés Financiers (également disponibles en version anglaise sur notre site Internet www.loreal finance.com).ce document peut contenir certaines déclarations de nature prévisionnelle. Bien que la Société estime que ces déclarations reposent sur des hypothèses raisonnables àla date de publication du présent communiqué, elles sont par nature soumises àdes risques et incertitudes pouvant donner lieu àun écart entre les chiffres réels et ceux indiqués ou induits dans ces déclarations.» "This document does not constitute an offer to sell, or a solicitation of an offer to buy, L Oréal shares. If youwishto obtainmore comprehensive information about L Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers (which are also available in English on our Internet site: www.loreal finance.com).this document may contain some forwardlooking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."