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 % 1990 + 14.0 % 2000 + 17.5 % 1991 + 11.7 % 2001 + 13.6 % 1992 + 16.0 % 2002 + 13.1 % 1993 + 12.1 % 2003 + 10.1 % 1994 + 19.1 % 2004 + 10.3 % -2-
Profit before taxes + 10.3 % 2,063 M 1,870 M 2003 2004-3-
Consolidation rate of US $ in euros 1.15 1.1 1.05 1 0.95 0.9 0.85 0.8 2001 2002-4- 2003 2004
Growth of consolidated sales 2004 Growth excluding exchange rate impact + 6.8 % Exchange rate impact - 3.2 % Growth published figures + 3.6 % -5-
United States 2004 macroeconomic indicators 2004 GDP growth + 4.4% Housing Starts + 8.9% Consumer spending* + 3.8% Retail sales Automotive Gasoline Home and gardens equipment Furniture/home decorating Electronics/appliance Total + 4.3% + 17.8% + 14.7% + 7.0% + 7.7% + 7.6% * ex. inflation 2.2% in 2004-6-
Evolution of worldwide cosmetic market Geographical zones at constant exchange rates 2004 Western Europe + 1.8 % North America + 2.5 % - 1.0 % Japan Rest of the world + 8.7 % Worldwide market + 3.3 % -7-
Growth of cosmetics sales + 6.3 % 14,220 M 13,704 M 2003 2004-8-
1993-2004 like-for-like growth Worldwide cosmetics market* and L Oréal sales 10.6% 11.0% + 10% 8.6% 7.3% 5.0% + 5% 7.4% 7.1% 5.2% 4.4% 5.3% 8.7% 8.1% 7.1% 5.4% 5.5% 5.3% 7.0% 6.3 % 5.4% 4.3% 4.6% 3.3% 4.0% 3.3 % 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Market growth L Oréal growth (*) excluding soaps and toothpastes -9-
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USA sales 4 300 in million dollars 3 800 3 300 2 800 2 300 1 800 1 300 800 1995 1996 1997 1998 1999 20002001200220032004
2004 cosmetics sales Growth driver countries Growth Like-for-like M + 52.6 % 363 Mainland + 58.2 % 291 Hong Kong + 33.5 % 72 Chine Taïwan Thaïland Mexico Brazil Russia + 22.2 % + 15.0 % + 12.6 % + 12.5 % + 42.4 % 105 59 262 260 231 Australia + 14.1 % 217 South Africa Turkey India + 7.2 % + 26.3 % + 46.1 % 104 72 39-14 -
Group operating margin 2003-2004 2003 2004 % Sales % Sales 13 % Operating profit 14.6 % 14 % Adjusted operating profit* 14.9 % *including exchange gains and losses - 20 -
Cosmetical and dermatological Research in M 1995 1996 1997 1998 1999 Research budget 200 220 255 287 325 383 432 % Sales 3.0 % 2.9 % 2.9 % 3.0 % 3.0 % 3.0 % 3.1 % Employees 1 837 1 949 2 089 2 245 2 376 2 564 2 743-21 - 2000 2001 2002 2003 2004 469 480 507 3.2 % 3.3 % 3.4 % 2 822 2 860 2 979
Purchases in % of consolidated sales 1999 Purchases and variation 19.0% in inventories 2000 2001 2002 2003 2004 18.6% 18.7% 17.6% 18.0% 17.7% - 22 - Tuesday17April 26th2005, 2005 février
Cosmetics sales by business segment - 2004 Perfumes 10.4% Colourants 17.2% Others 3.3% 8% Professional Make-up 21.4% Other circuits 16.9 % Hair care 24.9% 22.8% Skin care - 23 -
Number of plants and number of units produced per plant 116.4 Millions of units per plant 45.8 Number of plants 38 37 35 35 36 37 38 35 39 40 35 35 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004-24 -
Impact of «value analysis» A single compact for a better quality 0,6 million units 0,6 million units 1 million units 1,8 million units 4 million units 19 % savings on compact component cost - 25 -
Margins Rest of the World 1999-2004 Operating profit (% of Sales) 10.3% 11% 10% 8.4% 9% 8% 7.5% 7.4% 2000 2001 8.7% 7% 6% 5.2% 5% 4% 1999 2002-26 - 2003 2004
L Oréal share price 2004 Source: DATASTREAM - 27 -
Ranking Ranking 1. L OREAL 1. L OREAL 2. DANONE 2. PEUGEOT 3. MICROSOFT 3. RENAULT 4. PSA PEUGEOT-CITROEN 4. MICHELIN 5. CARREFOUR 5. DANONE 2005 2004 1 st French Company
1 st French Company 1st Global Diversity Award One of 16 America s Safest Companies
European business Students choose L Oréal as the ideal company to work for Ranking Ranking 1. L OREAL 1. L OREAL 2. MC KINSEY &COMPANY 2. BMW 3. BMW 3. COCA-COLA 4. THE BOSTON CONSULTING GROUP 4. NESTLE 5. COCA-COLA 5. GROUPE VOLKSWAGEN 5 219 business students from 19 4 146 business students from 5 European countries European countries - 30 -
L Oréal included in all Sustainable Development Indexes* *Ecodurable Survey September 2004-31 -
First Quarter 2005 Sales by geographic Zone Growth Sales M Like-for-like Published 1770-3.0 % - 3.1 % North America 893 + 7.8 % + 2.8 % Rest of the World, of which - Asia - Latin America - Eastern Europe - Other countries 819 337 161 159 163 + 12.7 % + 11.5 % + 5.5 % + 21.3 % + 15.0 % + 11.8 % + 9.6 % + 3.6 % + 26.6 % + 12.3 % 3 482 + 3.0 % + 1.6 % 57 + 4.4 % + 1.3 % 3 539 + 3.1 % + 1.6 % Western Europe Cosmetics total Dermatology* Group total IFRS IFRS * Group share, i.e. 50 % - 32 -
Worldwide cosmetics market 1991/2004 (billions $) Average annual growth rate, excluding exchange rate impact + 4.5 % 111,5 107,9 103,8 +3.3% 99,2 95,1 90,6 86,1 81,6 +5.5% 77,4 68,3 65,1 62,9 +5.0% +4.8 % 1991 71,3 73,5 +4.4% +3.0% +5.3 % +5.3 % +4.9 % +4.3% +4.6% +4.0% +5.4 % +3.5% 1992 1993 1994 1995 1996 1997 1998-33 - 1999 2000 2001 2002 2003 2004
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Worldwide cosmetic market by geographic zones Market 2004 (Billions ) Western Europe 32.6 North America 23.0 Japan 10.5 Rest of the World 23.4 WORLDWIDE MARKET 89.5-42 -
Women between 15 and 75 years old (millions) Eastern Europe Western Europe North America 123 M 150 M Africa Latin America 193 M 137 M 258 M Asia 988 M Chine: 487 M Inde 353 M - 43 -
Evolution of sales in China (mainland) 3 000 Million rmb 2 500 2 000 1 500 1 000 500 0 1997 1998 1999 2000 2001 2002 2003 2004-44 -
Evolution of sales in Russia 9 000 Million Rubles 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 20022003 2004 19941995199619971998199920002001-45 -
Evolution of sales in India 3 000 Million Rupees 2 500 2 000 1 500 1 000 500 0 19941995199619971998199920002001200220032004-46 -
Evolution of sales in Brazil 1 000 Million Reals 900 800 700 600 500 400 300 200 100 0 19941995199619971998199920002001200220032004-47 -
Weight of «Rest of the World» in Cosmetics sales 30 25 22% 19.1% 20 19.7% 15.5% 15 10 8% 5 1990 1995 2000-48 - 2003 2004 2010
Jean-Paul AGON 48 years old, Managing Director North America Zone Since September 2001 Joined in septembrer 1978 France LaScad Product Manager 2 years Greece L Oréal Paris Managing Director 5 years France L Oréal Paris Managing Director 3 years Brand Biotherm Managing Director 6 years Germany L Oréal Paris Managing Director 2 years Asia L Oréal Asia Zone Managing Director 4 years - 50 -
http://www.loreal-finance.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 Franceauprès de l Autorité des Marchés Financiers (également disponibles en version anglaise sur notre site Internet www.loreal-finance.com).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 risqueset 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 obtainmore 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: www.loreal-finance.com).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."