Mindspeak <<27th April 2013>>

>>Who Am I?

A wife and mother A consummate marketer

A passionate consumer A believer in Kenya

>>In Life…

“One hand washes another." ~ Zulu Saying~

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>>In Life…

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Determination & Creativity

“One hand washes another." ~ Zulu Saying~

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>>In Life…

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Pragmatism & Realism

Creativity & Determination

1 “One hand washes another."

~ Zulu Saying~

>>In Life…

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Pragmatism & Realism Creativity & Determination

1 “One hand washes another."

~ Zulu Saying~

"If you want something said, ask a man; if you want something done,

ask a woman." ~ Margaret Thatcher ~

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Introducing the World’s No 1 >>Beauty company

>>History 1909 -1956 The First Steps:

Constructing A Model

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• The Company officially becomes L'Oréal

• First hairdressers’ showcase on hair

dyes • Acquisition of Monsavon : which later

became L'Oreal's headquarters • Unveiling of L’Oréal d’Or, a ground

breaking gold hair-lightening product

>>History 1957 – 1983 “on the road to Grand L’Oreal”

Constructing A Model

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2001 – Present day Diversity of Beauty

• A myth is born: Elnett hairspray

• L’Oréal is listed on the stock exchange • Acquisition of Lancôme • Kérastase paves the way for

professional hair care

• Acquisition of Garnier

>>History 1984 – 2000 Become Number

One in the Beauty Industry

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• Polo by Ralph Lauren joins L’Oréal • Biotherm creates skincare for men • Acquisition of La Roche-Posay

History 2001 – Present day Diversity of Beauty

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• Reconstructed skin technology used on

a large scale • Acquisition of Mizani, the premium

ethnic hair brand • L’Oréal demonstrates its corporate

social responsibility by joining the United Nations Global Compact

• The Luxury Division signs a license

agreement with Dutch Designers Viktor & Rolf

Our Business is >>Beauty

Our >>Ambition

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>>Global Brands Consumer Products L’Oréal Luxe Active Cosmetics

Professional Products

Innovation as a permanent quest

Performance & Superior Quality as a requirement

Research at the << Core>> of L ’Oreal

With a Vintage of big Global << Innovations>>

And << More>>

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New Markets the <<First Markets>>

Sources : OECD* and The Boston Consulting Group**. Middle-Affluent class in RDE’s : households with disposable income > $15k in the US adjusted at PPP Countriesincluded:China, India, Indonesia, Pakistan, Thailand, Philippines, Kazakhstan, Malaysia, Vietnam, Russia, Ukraine, Turkey, Brazil, Mexico, Peru, Colombia, Egypt, South Africa, Iran, Nigeria, Algeria, Morocco, Saudi Arabia

2010 2020

1 billion

2,7 billion

Weight of « New Markets »

Middle Affluent Class

Spread of Spending

2010 2030

64% in Western

countries

70% in Asia,

Africa, Latin America

EA 2nd <<Largest Opportunity in Consumption>>

West Africa

East Africa

Central Africa

South Africa

FRENCH-SPEAKING

WEST AFRICA 198M pop.

H&B HEAD 1€

ENGLISH-SPEAKING

WEST AFRICA 109M pop.

H&B HEAD 1€

EAST AFRICA 280M pop. H&B HEAD 1,40€

CENTRAL AFRICA 130M pop.

H&B HEAD 1,30€

SOUTH AFRICA150M pop.

H&B HEAD 11€

Source: Euromonitor 25

<<Closer Home>>

LEA

0 20 40 60 80 100 120

Face Petroleum Jelly Skin Deodorants Hair

Percentage Value Share

Our Ambition >> Be No 1

Source: Est Shares Nielsen RA

L’Oreal

GDP / CAPITA

747

A Focused <<Brand Portfolio>>

Premium

expertise

& innovation for

upper class

consumers.

Innovation & inspiration

brand of reference for people

of African descent to choose

their style in total safety.

Smart innovative

accessible

products for

emerging young

& middle-class

consumers.

Premium

Salon exclusive

hair care.

Fashion make-up

brand for trendy

urban middle-

class women.

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Mass Consumer Brands Professional

Created in

brands

skus

countries

million sales

Circa employees

plant

9 1995

8 €17

250

200

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Interbeauty a <<New Frontier>>

Interbeauty <<Key Acquisition>>

IN HAIR CARE

IN RELAXER TUBS IN BODY

T2012

•46M units

•17M€

OVERVIEW

• 100-110 pricing vs market avg.

STRATEGIC

INTEREST

•Complement premium D&L offer.

•Help reach critical mass.

•Gain depth of distribution.

•Gain factory & workforce.

RS

P

Price positioning vs pillar brand

A

B

C

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Luxury (Segment A+)

Prestige (Segment A)

Masstige (Segment B)

Premium Mass (Segment C+)

Value for Money (Segment C –D)

Allowing Greater << Consumer Reach>>

Supported by <<Brand Activation>>

DISTRIBUTOR WHOLESALER RETAILER CONSUMER

Across the value chain

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Doing Things <<Differently>> to Reach Consumers

Beauty is <<everywhere>>

>>Thank You