Deutsche Bank Access Asia Conference

Transcription

1 Deutsche Bank Access Asia Conference 30 th May Singapore Thierry Prévot Group General Manager, Financial Communications & Strategic Prospective Analysis

2 Agenda 1. L OREAL Strategic Highlights 2. A Promising Start to the Year 3. Confidence for 2012 and beyond 4. Profit & Loss: a virtuous dynamic set in motion 2

3 Mission Beauty for everyone Beauty is a language Beauty is universal Beauty is a science Beauty is a commitment L Oréal, providing beauty for everyone 3

4 2011 Key figures 1 st Cosmetics Group worldwide 27 Global brands (1) 20.3 Billion consolidated sales in 2011 X 8 Dividend in 14 years Employees 613 Patents filed in 2011 (1) These brands annual sales are superior to 50 million euros 4

5 A Powerful and Unique Research & Innovation Budget Employees Patents 721 million euros people Regional hubs 19 Research centers 16 Evaluation centers New New New 5

6 An attractive, comprehensive and diversified portfolio of brands 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 6

7 Strong commitments to create value that benefits everyone 7

8 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 8

9 L Oréal s market shares by region (2011)* based on a new and more complete evaluation of the global cosmetics market L Oréal world : 12.8% New Markets : 8.4% North America 14.2% Western Europe 19.8% Eastern Europe 9.9% Japan 2.6% Latin America 8.6% Africa, Middle East 11.4% ** Asia Pacific excl. Japan 11.1% * Excluding soaps, razors, blades and toothpastes - L Oréal Estimates BMS ** Perimeter: countries where L Oreal is present 9

10 Agenda 1. L OREAL Strategic Highlights 2. A Promising Start to the Year 3. Confidence for 2012 and beyond 4. Profit & Loss: a virtuous dynamic set in motion 10

11 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 % 11

12 Q1-2012: Cosmetics like-for-like sales growth by region 80% of the worldwide market in 27 countries 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% 12

13 Agenda 1. L OREAL Strategic Highlights 2. A Promising Start to the Year 3. Confidence for 2012 and beyond 4. Profit & Loss: a virtuous dynamic set in motion 13

14 Confidence for Ability to create major innovations Lancôme Visionnaire New Molecule LR 2412 INOA New standard of oxidative hair color Super Stay 12 hours in one step 14

15 Confidence for Ability to optimize our A&P Media E-commerce Services 15

16 Confidence for Ability to develop our major brands Professional Products H KEY INITIATIVES The professional difference L Oréal Professionnel New Inoa 2 parts ODS 2 Kérastase Cristalliste Speed up market share gains Redken Chromatics Accelerate growth in the New Markets Dynamize the professional market Matrix Biolage Colorcare 16

17 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 17

18 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 18

19 Confidence for Ability to develop our major brands Active Cosmetics H KEY INITIATIVES Leader of the dermocosmetics market Vichy Idealia Vichy Normaderm Total Mat Growth outside Western Europe Increasing importance of brand portfolio New distribution channels La Roche Posay Rosaliac Innéov Anti-âge cellulaire 19

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

21 Source: Euromonitor 2011 Fixed Exchange Rate Asia-Zone Market Intelligence Total Beauty Market Asia (w/o Japan) L OREAL #1 since 2010 L Oréal Group Competitor No.1 Competitor No.2 Competitor No.3 Competitor No.4 21

22 Example of Asia excluding Japan A targeted offer at the right price: skin care (retail price in euros*) * Generally observed retail prices 22

23 Example of Asia excluding Japan A growing and adapted distribution Traditional distribution Modern trade 23

24 Example of Asia excluding Japan Expanding our distribution: L Oréal Luxe in Chinese cities Lancôme presence end 2010: 41 cities Lancôme presence end 2011 E: 56 cities 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. L OREAL Strategic Highlights 2. A Promising Start to the Year 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% +180bps 20.2% +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% 20.9% 18.4% 18.4% 35% 30.6% 33.2% 36.4% 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, , ,00 30

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."