Organizational Strategy - Sustainable Development - L'Oréal

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2 L’OréaL - GrI DaTa SHEETS 2011 List of group brands: L’OréaL PrOfessiOnneL Kerastase redKen Matrix L’OréaL Paris Garnier MaybeLLine new yOrK sOftsheen.CarsOn essie 2.3 LanCôMe GiOrGiO arMani yves saint Laurent biOtherM KiehL’s raLPh Lauren shu ueMura dieseL CaChareL 2/7 heLena rubinstein CLarisOniC viKtOr & rOLf viChy La rOChe-POsay sKinCeutiCaLs rOGer&GaLLet innéOv the bOdy shOP With a presence in 130 countries, over the 100 years that it has been in existence, the group has managed to attract close to one billion consumers, or approximately 15% of the population of the planet. With the acceleration of globalisation, L’Oréal’s task has grown: using the strength of its international positions and its power to innovate, the group’s ambition is to win one billion new consumers over the next 10 to 15 years. L’Oréal has its registered office in France and operates a commercial business specific to France. at the same time, it operates as a holding company and a strategic, scientific and industrial coordination company for the group on a global basis. Most of the subsidiaries have a development and marketing role for products manufactured by group factories. L’Oréal holds all the capital in the great majority of its subsidiaries. L’Oréal’s registered office is in France. It operates a commercial business specific to France. at the same time, L’Oréal operates as a holding company and a strategic, scientific and industrial coordination company for the group on a global basis. Most of the subsidiaries have a development and marketing role for products manufactured by group factories. L’Oréal holds all the capital in the great majority of its subsidiaries. The cosmetics branch which makes up the major part of group activity (93% of turnover in 2010) has four operating divisions, each with its own distribution network: • L’Oréal Luxe brings together a unique group of prestige brands. The distribution of these brands is selective and shared between department stores, perfumeries, travel outlets and also owned boutiques and electronic commerce sites. Brands in the De Luxe Products Division: LanCôMe, GiOrGiO arMani, yves saint Laurent, biOtherM, KiehL’s, raLPh Lauren, shu ueMura, CaChareL, heLena rubinstein, dieseL et yue sai. • The Consumer Products Division offers the best in cosmetic innovation at affordable prices in all major distribution channels (hypermarkets, supermarkets, drugstores and traditional shops) on all continents. Consumer Products Division brands: L’OréaL Paris, Garnier, MaybeLLine, sOftsheen.CarsOn. • The Professional Products Division which markets products used, but also sold, in hairdressing salons. a favoured partner of hairdressers the world over, it supports them in all facets of their development and offers them high-level training. Its portfolio of differentiated brands allows it to meet requirements from all types of salon. Professional Product Division brands: L’OréaL PrOfessiOnneL, Kérastase, redKen, Matrix. • The active Cosmetics Division distributes its products in all health networks throughout the world, mainly in pharmacies, drugstores, medical spas and, in some countries, via dermatologists. Its unique portfolio of brands, covering all consumer health and beauty needs and its privileged partnership with health professionals makes this division the world number one in derma-cosmetics. Brands in the active Cosmetics Division: viChy, La rOChe-POsay, sKinCeutiCaLs, innéOv, rOGer & GaLLet. The Body Shop branch represented approximately 4% of consolidated turnover in 2010. Created in 1976 in Great Britain by Dame anita roddick, the bOdy shOP is famous for its strong ethical commitment and its products based on natural ingredients. More than 65% of its products contain ingredients originating from its “Community Fair Trade programme”. The brand is present in upwards of 50 countries and distributes its products and expresses its values through a network of exclusive boutiques but also in complementary distribution channels: sales via the Internet and in airport boutiques. The Dermatology Branch makes up approximately 3% of group turnover (L’Oréal share). Comprising GaLderMa, a joint venture between L’Oréal and Nestlé created 30 years ago, this branch is dedicated exclusively to dermatology. Growing steadily over a number of years, the Galderma laboratory passed the one billion euro mark in 2010 and has established itself as a leader in dermatology. Several specialist departments provide expertise and support to the operating branches and divisions: • research and Innovation Department, responsible for basic and applied research. • Operations Department, responsible for the coordination of production and the supply chain. • Human resources department, responsible for recruitment, training, the motivation of talent and the coordination of social policy. • The administration and Finance department, responsible for group financial policy, management and consolidation, information systems and legal and fiscal coordination. • Communications department, responsible for coordinating corporate communications, coordinating communications from the divisions and brands, and sustainable development.
2 L’OréaL - GrI DaTa SHEETS 2011 2.4 L’Oréal would appreciate your opinion on its performance and its reports in the area of sustainable development. Please send your comments, questions and suggestions to: sustainabledevelopment@loreal.com • Head Office: 41, rue Martre 92117 Clichy – France Tel.: +33 1 47 56 70 00 Fax: +33 1 47 56 86 42 • registered Office: 14, rue royale 75008 Paris – France www.loreal.com 2.5 L’Oréal has subsidiaries in 68 countries with 60% of its turnover being achieved outside western Europe. World growth in the cosmetics market has led the group to develop its activities in countries in the “New Markets” zone, representing 37% of cosmetics sales. apart from the currency risks mentioned in the “Covering the exchange risk” document, pages 132 to 134 of the reference document and paragraph 2.3.7, political or economic disturbances in countries where the group achieves a significant part of its turnover, could affect its business. However, its highly globalised presence also favours a balance of sales and reward between countries and geographical areas. However, in periods of severe economic slowdown, growth in group turnover could be affected. > For more details, see the section “Products accessible to the greatest number” on page 8 of the 2011 <strong>Sustainable</strong> <strong>Development</strong> report. 41 PLANTS WORLDWIDE 2.6 NORTH AMERICA 9 LATIN AMERICA 4 L’Oréal Public company (S.a.) with a capital of 120,596,816.40 euros registered in Paris under number: 632 012 100 Head office: 41 rue Martre 92117 Clichy Cedex registered office: 14 rue royale 75008 Paris - France 3/7 WESTERN EUROPE 18 AFRICA – MIDDLE-EAST 3 EASTERN EUROPE 2 ASIA, PACIFIC 5 L’Oréal has its registered office in France and operates a commercial business specific to France. at the same time, L’Oréal operates as a holding company and a strategic, scientific and industrial coordination company for the group on a global basis. Most of the subsidiaries have a development and marketing role for products manufactured by group factories. L’Oréal holds all the capital in the great majority of its subsidiaries.
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