2004 Results. Mr. Lindsay OWEN-JONES February 17 th. 2005

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1 2004 Results Mr. Lindsay OWEN-JONES February 17 th. 2005

2 Growth of pre-tax profit of consolidated companies % % % % % % % % % % % % % % % % % % % %

3 Worldwide cosmetic market geographical zones Growth at constant currencies Western Europe North America Japan Rest of the world % % % % % % -1.0% % Worldwide market % %

4 Pre-tax profit excluding exchange rate impact in M published 1,869.9 at 2004 exchange rates 1,813.9 Growth in published figures % Growth excluding exchange rate % published 2,062.8

5 Cosmetic sales Growth like-for-like % % % % % ( %) ( %) % % % % % Average* : 7.3 % *ex

6 like-for-like growth Worldwide cosmetics market * and L Oréal sales 10.6% 11.0% + 10% 7.3% 7.4% 7.1% 8.6% 8.1% 7.1% 8.7% 7.0% 6.3 % + 5% 5.0% 4.4% 5.2% 3.3% 5.3% 5.4% 5.5% 5.3% 5.4% 4.3% 4.6% 4.0% 3.3 % Market growth L Oréal growth (*) excluding soaps and toothpastes February 17 th, 2005

7 Photo Refinish

a $20 $20 dual-process hair haircolor kit kit that thatshattered the theprice barrier in in the thecategory.

8 WWD Friday February 4 th, 2005 «And Andwhile P&G was wasbusy integrating Clairol. L Oréal was waslaunching new new products such as as Couleur Experte. a $20 $20 dual-process hair haircolor kit kit that thatshattered the theprice barrier in in the thecategory. In In the theskin care care aisle, L Oréal broke new new ground with witha $25 $25 microdermabrasion kit kit that thatisisselling like likebeauty s answer to to the the ipod.»

9 Photo Kerastase

10 Photo stand Giorgio Armani

11 Photo Inneov

12 2004 cosmetics sales by divisions Professional products Consumer products Luxury products Active cosmetics 2004 in M 1,998 7,754 3, Like-for-like growth + 7.6% + 5.8% + 5.2% %

Cosmetics sales by business segment - 2004 Perfumes 10.4% Others 3.3% Colourants 17.

13 Cosmetics sales by business segment Perfumes 10.4% Others 3.3% Colourants 17.2% Make-up 21.4% 8 % Professional Other circuits 16.9 % Hair care 24.9% 22.8% Skin care

USA Sales USA sales 4 300 in millions dollars 3 800 3 300 2 800 2

14 USA Sales USA sales in millions dollars

15 2004 cosmetics sales Growth driver countries Growth Like-for-like M China Mainland Hong Kong % % % Taïwan Thaïland Mexico Brazil Russia Australia South Africa Turkey India % % % % % % % % %

16 Group operating margin M % Sales M % Sales 1, % Operating profit 2, % % Exchange gains % 1, % Adjusted operating profit 2, %

17 Personal costs Personal costs (in M ) % sales of which reversal of provisions (in M ) Personal costs (in M ) excluding reversal of provisions % sales 2, % 2, % 2, % , %

Cosmetics and dermatological research in M 1995 1996 1997 1998 1999

469 480 507 % sales 3.0 % 2.9 % 2.9 % 3.0 % 3.0 % 3.0 % 3.1 % 3.2 % 3.

18 Cosmetics and dermatological research in M Research budget % sales 3.0 % 2.9 % 2.9 % 3.0 % 3.0 % 3.0 % 3.1 % 3.2 % 3.3 % 3.4 % Employees

19 Number of plants and number of units produced by plant Millions of units by plant Number of plants

20 Impact of «value analysis» 19 % savings on Lancôme make-up compact component cost A single compact for a better quality

21 Margins Rest of the world in M Operating profit % sales 5.2 % 7.5 % 7.4 % 8.4 % 8.7 % 10.3 % Adjusted operating profit % sales % % % % % %

22 Cosmetics branch Adjusted operating profit In % of sales Total zones 12.8% 13.4% 13.7% Non allocated* -0.1% +0.5% +1.0% Total cosmetics 12.7% 13.9% 14.8% * As % of total sales

23 Worldwide cosmetics market 1991/2004 (billions $) Average annual growth rate, excluding exchange rate impact +4.5% 99,2 95,1 +4.6% 90,6 +4.3% 86,1 +4.9% 81,6 +5.3% 77,4 +5.5% 73,5 +5.4% 71,3 68,3 +5.3% 62,9 65,1 +4.4% +3.0% +5.0% +4.8% +3.5% 111,5 107,9 103,8 +4.0% +3.3%

24 United States 2004 macroeconomic indicators * ex. inflation 2.2% in (preliminary) GDP growth +4.4% New home sales +8.9% Consumer spending* +3.8% Retail sales Automotive +5.0% Gasoline +17.2% Home and gardens equipment +14.7% Furniture/home decorating +7.0% Electronics/appliance +7.7% Total +8.0%

25 Evolution of consumer confidence and cosmetic market United States and Canada Consumer Confidence Index Index: January 1999 = Canada U.S.A. 100 Canada USA Cosmetic market + 5% +2.3% juil-01 nov-01 mars-02 juil-02 nov-02 mars-03 juil-03 nov-03 mars-04 juil-04 nov-04 Source: U.S. Conference Board. Canadian Conference Board

26 Photo Homme

27 Elderly consumption (% of regular users of anti-ageing skincare products) >70 Source: progression, International RISC Survey, Europe of 5

29 Worldwide cosmetic market by geographical zones Market 2004 (Billions ) Western Europe North America Japan Rest of the World WORLDWIDE MARKET

30 Women between 15 and 75 years old (millions) Eastern Europe Western Europe North America 150 M 123 M Asia Africa Latin America 193 M 137 M 258 M 1,341 M China : 487 M India : 353 M February 17th, 2005

31 India and China China 1994 China 2004 India 2004 GDP per capita 530 $ 1,030 $ 565 $ Cosmetic market 1,090 M$ 4,185 M$ 940 M

Evolution of sales in China (mainland) 3 000 millions of rmb 2 500 2 000 1

32 Evolution of sales in China (mainland) millions of rmb February 17 th, 2005

Evolution of sales in Russia 9 000 millions of roubles 8 000 7 000 6 000 5 000 4 000 3

33 Evolution of sales in Russia millions of roubles February 17 th, 2005

Evolution of sales in India 3 000 millions of roupies 2 500 2 000 1 500 1 000

34 Evolution of sales in India millions of roupies February 17 th, 2005

Evolution of sales in Brazil 1 000 900 800 700 600 500 400 300 200 100 0 millions

35 Evolution of sales in Brazil millions of reals February 17 th, 2005

36 Weight of «Rest of the World» in Cosmetics sales % 19.1% 19.7% 22% 10 8%

37 Rest of the World contribution M 2004 Sales 3,135.4 Adjusted operating profit % Sales 10.4 % Royalties and re-charges % Sales 8.7 % Contribution Rest of the World % Sales 19.1 %

38 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 Ce 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: This 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."

Growth of pre-tax profit of consolidated companies

Growth of pre-tax profit of consolidated companies 1985-2004 1985 + 11.0 % 1995 + 10.0 % 1986 + 15.7 % 1996 + 12.7 % 1987 + 16.9 % 1997 + 17.0 % 1988 + 24.6 % 1998 + 13.1 % 1989 + 17.1 % 1999 + 15.0 %