Global momentum drives growth NEW YORK LONDON MUMBAY STOCKHOLM MONTREAL OSLO MOSCOW BUENOS AIRES KUALA LUMPUR SAÕ PAULO CARACAS

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1 NEW YORK LONDON MUMBAY STOCKHOLM MONTREAL OSLO MOSCOW BUENOS AIRES KUALA LUMPUR SAÕ PAULO CARACAS Global momentum drives growth 16. L ORÉAL 2004 ANNUAL REPORT

2 UNITED STATES Garnier scores points with Fructis The launch of GARNIER Fructis shampoo and haircare products early in 2003, and its styling line, Fructis Style, in 2004, proved highly successful in the United States. The market share gains recorded by the brand already make it a serious challenger for its competitors. This haircare success story has strengthened the position of the GARNIER brand as the third pillar of the Consumer Products Division in the U.S. market, alongside L ORÉAL PARIS and MAYBELLINE. BRAZIL Dermatologists fully support Active Cosmetics In Brazil, where frequent dermatological consultations encourage the use of high value-added cosmetics, the Active Cosmetics Department proved an instant success when it launched in Today, VICHY and LA ROCHE-POSAY are continuing their roll-out in Brazil and the rest of Latin America. Their success is backed up by an even stronger commitment to dermatologists, together with eye-catching and top quality merchandising, and improved advisor training. 18. L ORÉAL 2004 ANNUAL REPORT

3 > GLOBAL MOMENTUM JAPAN Kérastase magic does the trick KÉRASTASE is introducing Japanese women to haircare institute luxury. The brand s professional and sophisticated hair salons, a byword for luxury and well-being, are proving phenomenally successful in Japan. Customers receive a comprehensive service from attentive advisors, a personal diagnosis, special haircare services and expert massages. These ingredients create a truly magical environment. UNITED KINGDOM ReFinish from L Oréal Paris: an exceptional start Following its outstanding success in the United States, the ReFinish micro-dermabrasion kit from L ORÉAL PARIS Dermo-Expertise is now conquering Europe. Launched in October in the United Kingdom, this innovative and upmarket product was launched with a dedicated media campaign highlighting the close links between the Dermo-Expertise brand and the world of dermatology. RUSSIAN FEDERATION Vichy, leader in skincare The VICHY brand, sold through a network of some 3,000 pharmacies across the Russian Federation, is now number one in skincare products across all distribution channels. Its success is due to the strength of the professional advice and the closer contact with customers at the point-of-sale. Product visibility has also improved through high-quality merchandising. VICHY s combined efforts have helped to modernise Russian pharmacies. L ORÉAL 2004 ANNUAL REPORT. 19

4 CHINA A Maybelline lipstick in the hand of every woman in China The sales of MAYBELLINE, which has been in China since 1998, really took off thanks to an ambitious and effective strategy quality for everyone that enabled the brand to extend its presence beyond the 600 largest Chinese towns. MAYBELLINE hostesses travel all over the country to teach customers the art of make-up through lessons and demonstrations. In a recent survey, 95% of Chinese women questioned named MAYBELLINE as their favourite make-up brand. The group s target of putting a MAYBELLINE lipstick in the hand of every woman in China is becoming a reality. Water Shine lipstick is winning over increasing numbers of consumers, thanks to its combination of quality and very competitive pricing. UNITED STATES Redken wins over American men Redken For Men is on its way to conquering the United States. The launch was supported by targeted communication in highly fashionable New York venues. In the space of a few weeks, the brand and its all-new haircare range have succeeded in seducing U.S. hairdressers and their customers. 20. L ORÉAL 2004 ANNUAL REPORT

5 > GLOBAL MOMENTUM SOUTH AFRICA Success of Dark and Lovely hair relaxers from SoftSheen.Carson In September, South African consumers were introduced to the latest version of the famous Dark and Lovely hair relaxer line from SOFTSHEEN.CARSON. For the relaunch, the world s leading brand in the ethnic haircare market organised an impressive programme of events particularly appreciated by its customers. The result was an immediate and overwhelming product success. SOFTSHEEN.CARSON has now strengthened the number one position it has held for several years in haircare in South Africa. For the brand and for the group, South Africa constitutes a gateway to the entire African continent. UNITED KINGDOM Lancôme s Hypnôse mascara is a massive hit Striking posters for Hypnôse mascara from LANCÔME are on display on the streets of London and on the sides of London cabs. The impactful campaign focused the attention of U.K. consumers on the extremely innovative formula of Hypnôse, which is now the number one mascara in the U.K. market. This excellent performance in make-up contributed to LANCÔME s nationwide growth. INDIA Vichy moves into India Building on its educational image, VICHY created the original Doctor Vichy concept. Through this service, healthcare professionals provide consumers with personalised advice on their skin, and the use and benefits of VICHY products. The brand s travelling Skin Check-Up Centres have proved extremely successful with Indian women, in cities such as Mumbai, New Delhi, Bangalore, Chennai and Hyderabad. L ORÉAL 2004 ANNUAL REPORT. 21

6 CHINA Matrix, the American dream in Asia MATRIX, the famous American haircare brand, is continuing its global roll-out and is now set to conquer the Chinese market. The scale of the challenge is enormous, with a potential of 300,000 salons in China. As the only global affordable professional brand in China, MATRIX benefits from a unique position in this country. Elsève from L Oréal Paris becomes the number one shampoo in the market 2004 was a winning year for Elsève from L ORÉAL PARIS in the Czech Republic: it became leader in the haircare market and has expanded its market share rapidly with a star product strategy featuring products such as Color Vive, the benchmark for the market. Elsève has become the sought-after brand of young urban women leading active lives. These very demanding and sophisticated consumers are driving growth in the cosmetics markets. MEXICO CZECH REPUBLIC L Oréal leads the way in fragrances In 2004, CACHAREL, GIORGIO ARMANI and RALPH LAUREN scored big successes in Mexico with the launches of their perfumes Amor Amor, Emporio Night, Ralph Lauren Blue and Romance Silver. The Luxury Products Division has reinforced its number one position in the Mexican market. In women s fragrances, RALPH LAUREN has maintained its number one ranking, with perfumes such as Ralph, the unchallenged leader since its first launch. RALPH LAUREN, with Polo Blue, and GIORGIO ARMANI, with Acqua di Gío and Armani Mania are ranked first and second in men s fragrances. 22. L ORÉAL 2004 ANNUAL REPORT

7 > GLOBAL MOMENTUM INDIA Light from Garnier Skin Naturals wins over Indian women After its anti-wrinkle products, eye contour creams and moisturisers with sun protection, GARNIER launched its first anti-blemish skincare product in the Indian market. Light from Garnier Skin Naturals represents a technological breakthrough by combining a sun filter, an exfoliant and anti-oxidants. Its advanced formula makes it a high value-added product, setting it clearly above its competitors. The product perfectly meets the needs of many Indian women, and proved a big success immediately after its launch in an extremely competitive skincare market. The new line s four products are now available from tens of thousands of points of sale, ensuring excellent distribution for this highly innovative range. UNITED STATES Resounding success for Kiehl s KIEHL S is continuing its impressive roll-out in the United States and the rest of the globe. No fewer than 11 new boutiques were opened in 2004, including six in the United States. This success reflects the strong identity of KIEHL S, a brand that can trace its origins back to the opening of a New York pharmacy in L ORÉAL 2004 ANNUAL REPORT. 23

8 HONG KONG VILNIUS TOKYO MEXICO SHANGHAI WARSAW PRAGUE TAIPEI MELBOURNE ISTANBUL MADRID JOHANNESBURG Global expansion is at the heart of L Oréal s growth strategy. The group, now present in over 130 countries, is constantly striving to raise market share and roll out its brands in new countries, to win over increasing numbers of consumers worldwide. L ORÉAL 2004 ANNUAL REPORT. 17

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