REIGNITING GROWTH JEAN-PAUL AGON - L'Oréal Finance
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REIGNITING GROWTH
JEAN-PAUL AGON
Chairman & Chief Executive Officer
KEPLER CHEUVREUX
September 8th, 2020
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September 8th, 2020
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BEAUTY MARKET L’ORÉAL
-11.7% 2
≃-13/-14% 1
September 8th, 2020 1L’Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates. 2H1-2020 like-for-like sales growth.
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MONTHLY SALES EVOLUTION 1
+8.4%
FEBRUARY MARCH APRIL MAY JUNE
JANUARY
-2.3%
-4.6%
-18.5% -19.1%
-34.3%
September 8th, 2020 1Like-for-like.
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PROFESSIONAL CONSUMER L’ORÉAL ACTIVE
PRODUCTS PRODUCTS LUXE COSMETICS
RESILIENCE DESPITE CLOSURE SELL-OUT IN LINE WITH THE PERFORMED SIGNIFICANTLY STRONGLY GAINING
OF SALONS, REBOUND SINCE MARKET DESPITE FOOTPRINT BETTER THAN THE MARKET SHARE GLOBALLY
END OF LOCKDOWN ON MAKE-UP
EXCLUDING MAKE-UP,
SALES ARE FLAT
+9%
MARKET1 L’ORÉAL2 MARKET1 L’ORÉAL2 MARKET1 L’ORÉAL2
MARKET1
≃-6% L’ORÉAL2
-21.3% -16.8%
-9.4%
≃-28% ≃-23% ≃ -4%
September 8th, 2020 1L’Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates. 2H1-2020 like-for-like sales evolution.
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+30% IN Q2 1 +17.5% 1
STRONG GROWTH H1 PERFORMANCE
IN E-COMMERCE
OUTPERFORMING
IN SKINCARE MARKET
L’ORÉAL
≃ -4% 2
September 8th, 2020 1Like-for-like sales evolution. 2L’Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes. H1-2020 provisional estimates, at constant exchange rates.
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RECORD GROWTH ACCELERATION STRONG ACCELERATION
IN H1 EVEN AS STORES RE-OPEN OUTSIDE OF ASIA
+65% +75%
+82% USA
+63% +119% IN Q2
≃
THE MARKET
X2 +54%
WESTERN EUROPE
25% +91% IN Q2
OF SALES
Q1 APRIL MAY JUNE
September 8th, 2020 1Like for like sales growth. Sales achieved on our brands’ own websites + estimated sales achieved by our brands corresponding to sales through our retailers’ websites (non audited data)
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OPERATING MARGIN LIMITED DECLINE IN
CLOSE TO FY 2019 EARNINGS PER SHARE 1
(% SALES)
€4.38
€3.82
18.6%
18.0%
FY 2019 H1-2020 H1-2019 H1-2020
September 8th, 2020 1Diluted earnings per share, excluding non-recurring items, after non-controlling interests.
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HIGH LOWER SG&As 1
GROSS MARGIN THANKS TO COST DISCIPLINE
(% SALES)
€3Bn
73.1% 73.1%
€2.7Bn
H1-2019 H1-2020 H1-2019 H1-2020
September 8th, 2020 1Selling, general and administrative expenses
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SUSTAINED R&I SUSTAINED A&P
INVESTMENTS INVESTMENTS IN RELATIVE VALUE
(% SALES) (% SALES)
3.1% 3.5% 30.5%
30.2%
H1-2019 H1-2020 H1-2019 H1-2020
September 8th, 2020
C1 - Internal usePROTECTING SUPPORTING SUPPORTING
OUR EMPLOYEES CAREGIVERS OUR PARTNERS
Drastic health and security 15 million units Freeze receivables from more
measures on all workplaces of hand sanitizers and than 100,000 small professional
(factories, warehouses …) hand creams donated clients and perfumeries
Limited number In 40 countries Shortening leadtime
of people infected of payments to 9,000 most
70% of our factories mobilized vulnerable suppliers
100% employment
& 100% fixed salary
September 8th, 2020
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C1 - Internal useNO FURTHER LOCKDOWN
CONSUMERS ARE BACK TO BEAUTY
September 8th, 2020
C1 - Internal usePOWERFUL LAUNCH PLAN
PROFESSIONAL CONSUMER L’ORÉAL ACTIVE
PRODUCTS PRODUCTS LUXE COSMETICS
September 8th, 2020
C1 - Internal useALL GEOGRAPHIES ALL ALL
& DIVISIONS CHANNELS TOUCHPOINTS
CONTINUED ACCELERATION CREATING O+O SHOPPABLE
OUTSIDE OF CHINA EXPERIENCE WITH LIVE-STREAMING
RETAILERS
STRONG DOUBLE-DIGIT SOCIAL COMMERCE
GROWTH STRONG PARTNERSHIPS
WITH PURE PLAYERS
RELENTLESS PUSH
ON D2C
September 8th, 2020
C1 - Internal useMORE MORE MORE
SERVICES DIGITAL MEDIA CONNECTIONS
VIRTUAL TRY-ONS MEDIA SHIFT MASSIVE INCREASE OF
CONVERSATIONS ONLINE
TELECONSULTATION DIGITAL SPEND NOW
GREATER THAN
IN-STORE VIRTUAL TESTERS TRADITIONAL MEDIA
September 8th, 2020
C1 - Internal useTIGHTER COLLABORATION STRONGER BOND CLOSER RELATIONSHIP WITH
WITH RETAILERS WITH HAIRDRESSERS MEDICAL PROFESSIONALS
STRONG JOINT NEW RELATIONSHIP THANKS DIGITALIZATION
BUSINESS PLAN TO STRONG SUPPORT OF CONNECTIONS WITH
DURING THE CRISIS MEDICAL PROFESSIONALS
BACK TO BEAUTY PLAN
WORLDWIDE EXECUTION HUGE INCREASE IN ONLINE MASSIVE AMPLIFICATION
SUPPORT & TRAINING OF REACH
EVENTS TO CREATE
EXCITEMENT WINNING THE BATTLE FOR
SMART OFFERS NEW SALONS AND STYLISTS
TO DRIVE TRAFFIC
September 8th, 2020
C1 - Internal useDRIVING POWER BRANDS SUPERSIZING ENHANCING
AND HERO PRODUCTS ONLINE EVENTS THE O+O MODEL
CHINESE SEAMLESS
VALENTINE’S DAY BRAND EXPERIENCE
SUPERBRAND DAY SHOPPABLE
LIVE-STREAMING
LANCÔME 85 YEARS
ANNIVERSARY SOCIAL COMMERCE
11.11
September 8th, 2020
C1 - Internal useSTRONG SHIFT UNLEASHING LAUNCHES
TO SKINCARE WITH MASSIVE SUPPORT
40%
35%
AS % OF SALES AS % OF SALES
2019 H1 2020
September 8th, 2020
C1 - Internal useSTRONG TRUSTED ASPIRATIONAL BRANDS WILL PREVAIL
WE ARE REINFORCING THE EQUITY OF OUR STAR BRANDS
September 8th, 2020
C1 - Internal useMEDIA INVESTMENT MORE INVESTMENT FOCUS ON ROI
INCREASING IN DIGITAL MEDIA CONVERSION IS INCREASING
AND SALES
September 8th, 2020
C1 - Internal useSTRICT COSTS SMART OPTIMIZATION PERMANENT DECISIVE PORTFOLIO
CONTROL OF A&Ps TRANSFORMATION MANAGEMENT
H1 MEASURES MAINTAINED TO MAXIMIZE ROI TO MAXIMIZE TO FOCUS ON
FOR H2 EFFICIENCY WINNING ASSETS
HEADCOUNT FREEZE PIVOT TO DIGITAL ADAPTING OUR CLOSURE OF
FOOTPRINT: CLARISONIC
TRAVEL BAN VIRTUAL TESTERS DISTRIBUTION
INDUSTRY DISPOSAL OF
CONSULTING FEES REDUCTION OF POS LOGISTICS ROGER & GALLET
MATERIAL
STRICT CONTROL INTEGRATION OF
OF INVESTMENTS MUGLER, AZZARO,
THAYERS, VALENTINO
September 8th, 2020
C1 - Internal useTRIPLE AMBITION:
• OUTPERFORM THE MARKET
• GET BACK TO POSITIVE LIKE-FOR-LIKE SALES GROWTH
• WITHOUT COMPROMISING PROFITABILITY
September 8th, 2020
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C1 - Internal useFINANCIAL
9/11 SARS CRISIS MERS
6%
5%
4%
3%
2%
1%
0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
September 8th, 2020 1L’Oréal worldwide beauty market estimates, excluding razors, soaps and toothpastes, at constant exchange rates.
C1 - Internal useNEW CONSUMERS NEW CHANNELS NEW BEAUTY NEEDS NEW CONNECTIONS
ARE ENTERING ARE INCREASING ARE CREATING ARE ENGAGING
THE MARKET ACCESS TO BEAUTY NEW DEMANDS MORE CONSUMERS
MIDDLE & UPPER ONLY THE BEGINNING MORE HEALTHY MORE SERVICES
CLASSES OF THE E-COMMERCE
JOURNEY MORE NATURAL MORE SOCIAL
AGEING POPULATION
MORE SUSTAINABLE MORE PERSONALIZED
MEN’S CONSUMPTION
September 8th, 2020
C1 - Internal useTHE MOST POWERFUL THE STRONGEST THE LEADING EDGE
FORCE IN R&I PORTFOLIO OF BRANDS IN DIGITAL
THE MOST GLOBAL UNIQUE ORGANIZATION LEAD IN
FOOTPRINT AND CULTURE SUSTAINABILITY
September 8th, 2020
C1 - Internal useIn 2020
We are determined to
outperform the market,
find again the path to
growth if the sanitary
conditions allow it, and
deliver solid profitability.
September 8th, 2020
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"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: 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."
September 8th, 2020
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