Exane BNP Paribas 14 th European Seminar

Transcription

1 Exane BNP Paribas 14 th European Seminar Paris - June 14 th, 2012 Christian MULLIEZ Executive Vice-President Administration & Finance

2 Agenda 1. Highlights on the cosmetics market 2. In tune with the world's shifts 3. Confidence for 2012 and beyond 4. Profit & Loss: a virtuous dynamic set in motion 2

3 The world is experiencing 3 major shifts 3

4 Worldwide Cosmetics Market: 153Bn Annual growth rate of +4.3% ( )* 5.0% +4.4% 3.0% * Excluding soap, toothpaste and razors. Net manufacturing price (sell-in) Provisional estimates for Source: L Oréal estimates 4

5 Worldwide Cosmetics Market (2011) TOP 10 countries ranking USA JAPAN BRAZIL CHINA RUSSIA FRANCE GERMANY UNITED KINGDOM ITALY SPAIN Source: L'Oréal data (BMS). 5

6 Increasingly diverse beauty expectations Strongly rooted beauty routines across continents CHINA INDIA BRAZIL Cleansing foams Whitening creams Eye care UV protection Lip balms Liquid foundation Shampoo/scalp massage Henna Hair Colour Rose & lemon essence Fairness creams Talcum powder Kajal (eyes) Hair oil Deodorants Hair Colour Shampoo, conditioner Moisturizing lotion Body oil Deodorant Perfume / Cologne Nail care 6

7 Worldwide Cosmetics Market by zone 2011 Estimates Foreign Exchange Rate (%) Travel Retail North America Western Europe Eastern Europe Africa Middle East Asia (excl. Japan) Japan Latin America L Oréal / BMS - Excluding soaps, razors and toothpastes. Sell-in. 7

8 Agenda 1. Highlights on the cosmetics market 2. In tune with the world's shifts 3. Confidence for 2012 and beyond 4. Profit & Loss: a virtuous dynamic set in motion 8

9 In tune with the world's shifts 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. 9

10 In tune with the world's shifts OUR STRATEGY UNIVERSALISATION 10

11 In tune with the world's shifts OUR AMBITION 1NEW BILLION CONSUMERS 11

12 In tune with the world's shifts Research and Innovation Operations and Supply Chain Stronger commitment to sustainability 12

13 A Powerful and Unique Research & Innovation 6 Regional hubs 19 Research centers 16 Evaluation centers 50 Scientific and regulatory departments New New New 13

14 An attractive, comprehensive and diversified portfolio of brands which is still developing Professional Products 13.8% * (Hair salons) Consumer Products 48.3% * (Mass retailers) Luxury Products 23.6% * Active Cosmetics 7.0% * (Pharmacies) The Body Shop 3.8% * * as a % of 2011 Group sales 14

15 Leveraging on acquisitions Latest strategic acquisitions CPD / PPD GALDERMA L OREAL LUXE 15

16 Agenda 1. Highlights on the cosmetics market 2. In tune with the world's shifts 3. Confidence for 2012 and beyond 4. Profit & Loss: a virtuous dynamic set in motion 16

17 A promising start to the year 12 months 2011 Q Like-for-like Like-for-like Reported Professional Products +2.5% +3.1% +5.6% Consumer Products +4.5% +5.1% +7.2% L Oréal Luxe +8.2% +12.2% +17.8% Active Cosmetics +3.2% +4.7% +5.3% Cosmetics total +5.0% +6.4% +9.2% The Body Shop +4.2% +3.9% +6.4% Dermatology*/Galderma +8.4% +6.6% +18.4% Consolidated sales +5.1% +6.4% +9.4% * Group share, i.e. 50 % 17

18 Q1-2012: Cosmetics like-for-like sales growth by region North America +6.6% Western Europe +1.7% Eastern Europe +2.1% Japan +10.4% Africa, Middle East +11.4% Asia Pacific excl. Japan +16.2% Latin America +8.5% New Markets: +11.2% 18

19 Confidence for Ability to create major innovations Lancôme Visionnaire New Molecule LR 2412 INOA New standard of oxidative hair colour Super Stay 12 hours in one step 19

20 Confidence for Ability to optimize our A&P Media E-commerce Services 20

21 Confidence for Ability to develop our major brands L Oréal Luxe More luxury than ever H KEY INITIATIVES Lancôme Rénergie Eclat Multi-Lift YSL Forever Youth LIberator Giorgio Armani Aqua di Gio Essenza Success of Lancôme, Kiehl s Rising level of luxury in designers brands Strength of face care strategy Kiehl s Clearly Corrective White 21

22 Confidence for Ability to develop our major brands Consumer Products H KEY INITIATIVES Innovation for all L Oréal Paris Youth Code Lumière L Oréal Paris Nude Magic Garnier Nutrisse Mousse Global and local innovation Value enhancement Geographic expansion Maybelline Dream Nude Air Foam Essie 22

23 Confidence for Ability to accelerate the universalisation of our brands Weight of New Markets in L Oréal s cosmetics sales 38.2% X2 19.1%

24 L Oréal market share vs competitors ( ) Asia Pacific w/o Japan RSP Beauty Market L'Oréal 14,0% 12,0% 10,0% 8,0% 8,5% 8,7% 10,1% 8,9% 10,9% 8,7% 7,0% 11,7% 8,3% 7,4% 11,4% 11,1% 9,0% 8,4% 8,1% 8,0% 10,7% 10,5% 10,1% 9,7% 8,3% 8,4% 10,6% 10,4% 8,9% 10,8% 9,5% 10,3% 6,0% 5,7% 6,2% 4,0% 2,0% 0,0% Source: Euromonitor 2011 Fixed Exchange Rate. 24

25 Confidence for Ability to continue making substantial advances in the industrial, supply chain, and organizational fields PROCUREMENT INDUSTRY SUPPLY CHAIN SG&A Purchasing efficiency programmes Industrial productivity: +6% in 2011 Continuous improvement in supply chain Strict cost control 25

26 Agenda 1. Highlights on the cosmetics market 2. In tune with the world's shifts 3. Confidence for 2012 and beyond 4. Profit & Loss: a virtuous dynamic set in motion 26

27 Profit & Loss account: a virtuous dynamic set in motion 2010 as a % of sales 2011 as a % of sales Gross profit % % +40bps Research and development % % Advertising & promotion % % Selling, general and administrative expenses % % Operating profit % % +50bps 27

28 Profit & Loss account: a virtuous dynamic set in motion Operating profit by division* (as a % of sales) Growth in profitability of each division 20.6% +30bps 18.9% +40bps 19.3% 20.2% +180bps +10bps Professional Products Consumer Products L Oréal Luxe Active Cosmetics * Before non allocated items, or expenses of functional divisions and fundamental research, stock-option & free grant of shares costs which are not allocated to the cosmetics divisions, and non-core activities, such as insurance, re-insurance and banking 28

29 Profit & Loss account: a virtuous dynamic set in motion Operating profit by region (as a % of sales) Cosmetics operating profit by region* (as a % of sales) Weight of the New Markets in the cosmetics operating profit* 40% 36.4% 20.9% 18.4% 18.4% 35% 33.2% 30.6% 30% 28.5% 25% 24.3% 20.6% 20% 18.6% Western Europe North America New Markets 15% * Before non allocated items, or expenses of functional divisions and fundamental research, stock-option & free grant of shares costs which are not allocated to the cosmetics divisions, and non-core activities, such as insurance, re-insurance and banking 29

30 Dividend per share since 1963 (in euros) in euros 2, ,50 1, , ,

31 Key figures - Payout ratio (as a % of net profit*) +11.1% 2.00 ** 2011 dividend per share % 46.3%** 44.9% % 35.7% 36.0% 36.6% 36.8% 38.5% 39.6% 41.1% 41.3% 29.1% 30.2% 31.6% * Taking into account the Sanofi history with regards to the dividends. ** Based on the dividend approved at the shareholders meeting held on April 17 th,

32 Ambitions Continue transforming our marketing models Continue transforming the company Outperform the cosmetics market Achieve growth in our sales and our results 32

33 Thierry Prévot Group General Manager, Financial Communications and Strategic Prospective Analysis Tel. : Fax : thierry.prevot@loreal.com Françoise Lauvin Head of Investor Relations Tel. : Fax : francoise.lauvin@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 à vous reporter aux documents publics déposés en France auprès de l Autorité des Marchés Financiers (également disponibles en version anglaise sur notre site Internet document peut contenir certaines déclarations de nature prévisionnelle. Bien que la Société estime que ces déclarations reposent sur des hypothèses raisonnables à la date de publication du présent communiqué, elles sont par nature soumises à des risques et incertitudes pouvant donner lieu à un 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 you wish to obtain more 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: document may contain some forward-looking 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."