FINANCIAL ANALYSTS MEETING - loreal-finance.com · FINANCIAL ANALYSTS MEETING Mr. Jochen Zaumseil Executive Vice-President Western Europe Zone September th17 , 2013 . 2 1. COSMETICS

FINANCIAL

ANALYSTS

MEETING

Mr. Jochen Zaumseil Executive Vice-President

Western Europe Zone

September 17th, 2013

2

1. COSMETICS MARKET IN WESTERN EUROPE

3 * L’Oréal / BMS - Excluding soaps, razors and toothpastes. Sell-in.

Western Europe

Asia-Pacific excl. Japan

North America

=

Cosmetics Market in 2012*

Size by region

Capital Market Days - September 17th, 2013


3%

5%

6%

7%

11%

23%

12%

15%

18%

3%

5%

7%

8%

11%

14%

15%

18%

19%

SunCare

Styling

HairColor

BodyCare

HairCare

MakeUp

Hygiene

Fragrances

Face Care

Western Europe

North America


Weight by category in Western Europe and North America


5

13%

8%

2%

27%

51%

8%

11%

11%

26%

45%

Direct Sales

Professional

Dermocosmetics

Luxury

Mass

Western Europe

North America

* L’Oréal / BMS - Excluding soaps, razors and toothpastes. Sell-in.


Weight by channel in Western Europe and North America


6

France

111 USA

108

Brazil

61

China

11

India

3

Russia

52

Japan

195

South Africa

26

Mexico

26

UK

98

Spain

88

Italy

93

Germany

80

World



Beauty Consumption by Capita (in euros – excluding Travel Retail)


7

* L’Oréal / BMS - Excluding soaps, razors and toothpastes. Sell-in.

2 JAPAN

6 FRANCE

1 UNITED STATES

5 RUSSIA

4 BRAZIL

3 CHINA

7 GERMANY

10 SPAIN

9 ITALY

8 UNITED KINGDOM


TOP 10 Markets (Bn euros/sell-in)

39

25

15

12

7

7

7

6

4

6


8

* L’Oréal / BMS - Excluding soaps, razors and toothpastes.Sell-in, H1-2013 provisional estimate

South Europe = Italy, Spain, Portugal & Greece North Europe = France, Germany, UK, Switzerland, Belgium, Netherlands, Austria, Sweden, Norway, Denmark & Finland

2010 2011 2012 H1-2013

Western Europe + 0,8% + 0,7% + 0,0% - 0,9%

North Europe + 1,1% + 0,8% + 0,7% + 0,0%

South Europe -1,1% -0,7% -3,1% -3,6%

Western Europe Beauty Market Growth*

2010/H1-2013


9

2. KEY PLAYERS

10

* Euromonitor Sell-out – Beauty & Personal Care excluding soaps, oral care and razors & blades

2%

2%

3%

3%

4%

4%

6%

7%

8%

19%

Johnson & Johnson

Chanel

Estée Lauder

LVMH

Coty

Henkel

Unilever

Beiersdorf

Procter & Gamble

L'Oréal

TOP 10 Players of the Cosmetics Market

in Western Europe in 2012* (market share, %)


11

*Euromonitor Sell-out – Beauty & Personal Care excluding soaps, oral care and razors & blades

**Panel IRI/Nielsen Europe 14 sell-out

***Internal Estimate

****Kline sell-in

*****IMS Europe 8 Panel sell-out

TOTAL* Mass** Luxury*** Salons**** Dermocosmetics*****

#1 L'Oréal L'Oréal L'Oréal L'Oréal L'Oréal

#2 P&G P&G Estee Lauder P&G Pierre Fabre

#3 Beiersdorf Beiersdorf LVMH Henkel Beiersdorf


in Western Europe in 2012 by Channel


12

*Euromonitor Sell-out – Beauty & Personal Care excluding soaps, oral care and razors & blades

Skincare = Face + Body + Sun care

Hygiene = Shower Gel + Intimate Hygiene + Bath Additives + Talcum Powder + Deodorants + Shaving

TOTAL* Hair Care* Skincare* Make-Up* Fragrances* Hygiene*

#1 L'Oréal L'Oréal L'Oréal L'Oréal Coty Unilever

#2 P&G P&G Beiersdorf Coty L'Oréal Beiersdorf

#3 Beiersdorf Henkel Estee Lauder P&G LVMH Colgate

L'Oréal


in Western Europe in 2012 by Category


13

* L’Oréal / BMS - Excluding soaps, razors and toothpastes.Sell-in.

14%

15%

28%

19%

North America

Europe 4 (UK/GER/IT/SP)

France

Western Europe

= 60% of the Beauty Market

in Western Europe

L’Oréal Market Shares

in 2012*


14

3. L’OREAL

15

Sales: € 7,399.6 million

Operating Profit: 21.3%

Employees: 30 798

Factories: 18

Research Centers: 11

Evaluation Centers: 3

Western Europe

Key facts & figures 2012


16

by geographic zone

Western Europe 35.6%

Africa, Middle-East

3.3% Japan 2.7% Asia-Pacific

excl. Japan 17.9%

Eastern Europe 6.8%

Latin America

8.8%

North America 25.0%

L’Oréal cosmetics Sales in 2012

(as a % of sales)


17

Western Europe North America New Markets

21.3%

18.4% 18.5%

* Before central group expenses, fundamental research expenses, stock-option & free grant of shares expenses and miscellaneous items – as a % of total cosmetics sales

Cosmetics operating profit

by geographic zone* (as a % of sales)

Operating profit by region in 2012

(as a % of sales)


18

L’Oréal Market Share

in Western Europe from 2009 to 2012

•L’Oréal / BMS - Excluding soaps, razors and toothpastes.Sell-in.

2009 2010 2011 2012

L'Oréal Western Europe 18.6% 18.8% 18.8% 18.9%


19

28.4 28.9 29.4

11.6 10.8 10.2

10.1 9.7 9.7

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

2011 2012 2013 YTD

L'Oréal CPD

Competitor n.1

Competitor n.2

Market Share in value %

* source : NIELSEN/IRI panel / Total Beauty = Hair + Skincare + Make-Up + Deodorant

Hair = 14 Countries, Skincare = 14 Countries (9 in Bodycare, 9 in Suncare), Make-Up = 12 Countries, Deodorant = 5 Countries

Europe 14 = Germany, Austria, Belgium, Denmark, Spain, France, United-Kingdom, Greece, Italy, Norway, Netherlands, Portugal, Sweden and Switzerland

Total Beauty Mass Market Western Europe*

2011-YTD July 2013


20

Years

50.0 50.6 52.8

27.3 28.0 27.2

0

10

20

30

40

50

60

2011 2012 2013 YTD

L'Oréal CPD

Competitor n.1

* source : NIELSEN/IRI panel

Hair = 14 Countries



Hair Color Mass Market Western Europe*

2011-YTD July 2013


21

24.8 26.0 26.8

20.7 20.5 20.7

8.9 7.8 7.0

0

5

10

15

20

25

30

2011 2012 2013 YTD

L'Oréal CPD

Competitor n.1

Competitor n.2


Years

* source : NIELSEN/IRI panel

Skincare = 14 Countries (9 in Bodycare, 9 in Suncare)


Face Care Mass Market Western Europe*

2011-YTD July 2013


22

4. OPPORTUNITIES

23

One Ambition +70 million consumers

One Strategy Universalization

One Objective Outperform the market

and deliver growth

L’Oréal in Western Europe


24

Strategic Categories Modern Targets

Distribution Extension

New Brands

• Skin Care

• Make Up

• Hair Care

• Seniors

• The «New Smart»

• Clarisonic

• Urban Decay

• Essie…

Many Opportunities to Grow in Western Europe


http://latoilerouge.com/wp-content/uploads/2012/04/ecommerce.jpg

25

WE North WE South WE

Hair

Hair Density

Hair Diameter

Hair Nature

Hair Length

Hair Color

Hair problems

Medium

Thin

Straight to wavy

Shorter

Lighter from Blonde to brown

Flat

Without volume

Stressed hair

Weak

Perceptions enhanced by cold – heating

inside buildings

Very High

Medium to thin

Straight to curly

Longer

Darker from darker brown to black

Unruly (wavy factor)

Oily hair

Damaged hair

(straightening/curl control desire -> high usage of

diffusing dryers and straighteining irons)

Perceptions enhanced by heat and sun creating

bothersome scalp perspiration

Face

Skin Density

Skin Diameter

Skin Nature

SkinColor

Skin problems

Sensitive skin

Thin

- Pores

- Sebum

1-2

Dry skin

Average 40%

Perceptions enhanced by cold weather

Medium

++ Pores

++ Sebum

1-2-4

Skin marks/spots (more ‘olive skin’)

Oily skin related problems

Average 60%

Perceptions enhanced by heat and sun creating

bothersome face perspiration R&I CMI Country Clustering 2013

Beauty Track France/UK/It/Spain Women 15-75

There is a North and a South Consumer


26

SOURCE: Eurostat; L'Oréal data from UK

38 28 23 36

55+ women account for a growing share of European

potential women consumers

The new generation of elder 55-65 spend more

than the average female population

172

83

143

176

214

179

191

113

171

205 222

190

0

50

100

150

200

250

TOTALACHÈTEUSES

MOINS DE 25ANS

DE 25 À 34ANS

DE 35 À 49ANS

DE 50 À 64ANS

65 +

TAM 10 2012

TAM13 2008

Index 120 versus total population

And this will continue 65+ later

Elder Consumers Opportunities


27

WELCOME TO FRANCE

Documents

FINANCIAL ANALYSTS MEETING - loreal-finance.com · FINANCIAL ANALYSTS MEETING Mr. Jochen Zaumseil Executive Vice-President Western Europe Zone September th17 , 2013 . 2 1. COSMETICS