Company

Profile
2021

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 01. WHO WE ARE
p.03

02. THE COSMETICS MARKET

p.09

03. OUR DIVISIONS, BRANDS

& BUSINESS MODEL
p.13

04. OUR PILLARS

p.19

05. OUR COMMITMENTS

p.28

06. OUR CORPORATE FONDATION

p.37

07. OUR GOVERNANCE

p.40
• COMPANY PROFILE • 2

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Who we are
A PURE PLAYER CREATED #1 COSMETICS
IN BEAUTY IN 1909 GROUP
W O R L W I D E (1)

(1) Source: WWD, “Beauty’s Top 100”, April 2021.

 27.99 85,400 150
BILLION EUROS EMPLOYEES COUNTRIES
OF SALES(1)

5.20 7 -4.10%
BILLION EUROS BILLION FINISHED LIKE-FOR-LIKE
IN OPERATING PROFIT (1) PRODUCTS SOLD SALES GROWTH (1)(2)

39 35 964
PLANTS BRANDS MILLION EUROS
(3.4% OF SALES)
INVESTED IN
RESEARCH&INNOVATION (1)

21 500
RESEARCH PATENTS REGISTERED
CENTRES IN 2020

(1) On 31st December 2020.

(2) Based on a comparable structure and identical exchange rates.

• COMPANY PROFILE • 5

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 UNITED NATIONS WORLD’S MOST REFINITIV
CDP UNIVERSUM
COMPACT ETHICAL COMPANIES DIVERSITY & INCLUSION

Recognition by No.1 for

the United Nations 12th Recognition
the 5thconsecutive year. N°6 in the Refinitiv N°10 in the Universum
for exemplary commitments on as one of the
L’Oréal is the only company in the Diversity and Inclusion Index. Global Ranking.
improving the environment, working “World’s Most
world ranked 3“A” by CDP
conditions, human rights and Ethical Companies”(2)
five years in a row (1).
fighting corruption.

(1) CDP is an independent international organization which assesses companies’ environmental performance. • COMPANY PROFILE • 6
(2) Ethisphere® Institute is the global leader in defining and advancing the standards of ethical business practices.

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 Create
the beauty
that moves
the world

• COMPANY PROFILE • 7

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 Integrity Respect
Because acting with integrity Because what we do
is vital to building and has an impact on many
L’Oréal was built on maintaining trust and different stakeholders.
strong ethical principles good relationships.
that guide its
development and shape
its reputation. These
principles are namely the
foundation of the
Group’s policies in terms
of compliance,
responsible innovation,
environmental
stewardship, social and
societal responsibility
and philanthropy.
Transparency Courage
Because we must always Because ethical
be sincere and able to justify questions are rarely easy
our actions and decisions. but must addressed.

• COMPANY PROFILE • 8

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The Cosmetics
Market
 market online beauty
growth market sales

≃ -8% ≃+40%
GROWTH IN WORLDWIDE
GROWTH IN 2020(1)
ONLINE COSMETICS SALES(2)

+€200 Bn ≃22%
ESTIMATED SALES OF SHARE OF E-COMMERCE
THE MARKET(2) IN THE BEAUTY MARKET(2)

(1) Source: WWD, Beauty’s Top 100, May 2020, based on 2019 sales
(2) Source: L’Oréal estimates for the global cosmetics market in 2020 based on manufacturers’ net prices.
Excluding soap, toothpastes, razors and blades. Excluding currency effects

• COMPANY PROFILE • 10

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 Sales
(2019 sales in billions of USD)(1)

33.43
UNILEVER(2) 22.49

ESTÉE LAUDER(2) 15.90

PROCTER & GAMBLE(2) 13.90

SHISEIDO(2) 10.09

COTY(2) 8.65

(1 Source: WWD, Beauty’s Top 100, May 2020, based on 2019 sales
(2) Estimated cosmetics sales according to WWD.

• COMPANY PROFILE • 11

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by business by geographic
segment (1) zone (1)

NEW MARKETS

NORTH LATIN WESTERN AFRICA EASTERN ASIA

AMERICA AMERICA EUROPE MIDDLE EUROPE PACIFIC
EAST

24% 8% 16% 3% 6% 43%

42% SKINCARE

22% HAIRCARE

16% MAKEUP

FRAGRANCES
10% (1) Source: L’Oréal estimates for the global cosmetics market in 2020 based on manufacturers’ net prices. Excluding soap,
toothpastes, razors and blades. Excluding currency effects.

10% HYGIENE
PRODUCTS

• COMPANY PROFILE • 12

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 Our Divisions,
Brands &
Business Model
Consumer L’Oréal Professional Active
Products Luxe Products Cosmetics
MISSION MISSION MISSION MISSION
to democratize the best provide consumers support hairdressers help everyone in
of beauty with the best products and develop the hair industry their quest for healthy
and brand experience sustainably while benefiting all and beautiful skin
by making it unique
CONSUMER PRODUCTS

L’ORÉAL LUXE

PROFESSIONAL PRODUCTS

ACTIVE COSMETICS

• COMPANY PROFILE • 15

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Salons Mass Market Pharmacies Department Branded Retail Travel Retail E-Commerce
Drugstores Stores
Medispas Perfumeries

Skincare Fragrance Make-up Hair color Haircare

• COMPANY PROFILE • 16

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 (1)

(2) (3)

30

(4)
25

20
(5)

15

10

0
1967 1971 1980 1985 1989 1993 1996 2000 2002 2005 2008 2010 2012 2015 2017 2020

(1) Licence agreement.

1988 2006 2011 2014 2016 2018
(2) Acquisition of the thermal spa La Société des Thermes de La Roche-Posay.
(3) Licence renewal. • COMPANY PROFILE • 17
(4) The brand Clarisonic was sold in 2020.
(5) The brand The Body Shop was sold in 2017.
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 breakdown of 2020 sales (as%)

BY BY BY
DIVISIONS GEOGRAPHIC BUSINESS
ZONES SEGMENTS

Consumer Products 41.8% Western Europe 26.8% Skincare and sun protection 39.5%

L'Oréal Luxe 36.4% North America 24.7% Makeup 21.3%

Professional Products 11.1% Asia Pacific 35% Haircare 15.2%

Active Cosmetics 10.8% Eastern Europe 6% Hair colouring 10.6%

Latin America 5.2% Fragrances 9%

Africa, Middle East 2.2% Other (1) 4.4%

(1) Source: “Other” includes hygiene products as well as sales by American professional distributors with non-Group brands.

• COMPANY PROFILE • 18

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 Our
Pillars
Employees
 112 years
OF ENTREPRENEURIAL SPIRIT

Freedom to go beyond, that’s the beauty of L’Oréal

#10
MOST ATTRACTIVE
COMPANY
FOR STUDENTS(1)

#6
MOST DIVERSE AND
INCLUSIVE COMPANY
ACCORDING
TO REFINITIV(2)

Source: Business students, all industries combined, Universum, 2020.

6th place among the top 100 companies worldwide in terms of diversity and inclusion out of 9,000 evaluated.

• COMPANY PROFILE • 21

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Science

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 4,000 3
R&I EXPERTS GLOBAL CENTERS
IN EUROPE

500 13
EVALUATION CENTRES
PATENTS REGISTERED IN 2020

21 964
RESEARCH CENTERS ORGANIZED MILLION EUROS (3.4% OF SALES)
INTO 6 REGIONAL HUBS INVESTED IN RESEARCH INNOVATION

• COMPANY PROFILE • 23

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 6
Regional
hubs
EUROPE
USA
GERMANY JAPAN
8
CHINA
7 INDIA

3 MEXICO
centre
Global centres
BRAZIL
France
SOUTH AFRICA

INDONESIA

21
Research
centres

13
Evaluation
centres
24

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Technology
Reinventing Innovating Innovating Revolutionizing
the Beauty through through Beauty
Experience Products Industry through Digital
 €7.4 Bn 40,000
OF SALES IN E-COMMERCE (1) PEOPLE TRAINED THROUGH
THE DIGITAL UPSKILLING PROGRAMME

+285 +1.25 Bn
MILLIONS FOLLOWERS VISITS TO OUR WEBSITES (2)
ON OUR SOCIAL MEDIA

26.6%
SHARE OF E-COMMERCE
IN CONSOLIDATED SALES (3)

(1) Sales on our brands’ own websites + estimated sales by our brands via retailer websites (non-audited data).
(2) Source: Google Analytics data - L’Oréal accounts.
(3) Sales on our brands’ own websites + estimated sales achieved by our brands via retailers’ websites (non audited data)

• COMPANY PROFILE • 27

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Our
Commitments
 1
TRANSFORMING OURSELVES
AND RESPECTING PLANETARY
BOUNDARIES

2
EMPOWERING OUR BUSINESS ECOSYSTEM
HELPING ITS TRANSITION
TO A MORE SUSTAINABLE WORLD

3
CONTRIBUTING TO SOLVING THE CHALLENGES
OF THE WORLD
BY SUPPORTING URGENT SOCIAL
AND ENVIRONMENTAL NEEDS

• COMPANY PROFILE • 29

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For the
Planet
 -81% 96%
REDUCTION IN CO2 EMISSIONS OF NEW OR RENOVATED PRODUCTS
IN ABSOLUTE TERMS IN PLANTS LAUNCHED IN 2019 HAVE AN
AND DISTRIBUTION CENTRES SINCE IMPROVED SOCIAL
2005 OR ENVIRONMENTAL PROFILE(1)

-49% -37%
REDUCTION IN WATER CONSUMPTION IN REDUCTION OF WASTE GENERATED IN
PLANTS AND DISTRIBUTION CENTRES PLANTS AND DISTRIBUTION CENTRES
SINCE 2005 SINCE 2005

3“A” 97%
RATINGS FROM CDP (2) FOR REDUCING OF THE GROUP’S STRATEGIC
CARBON EMISSIONS, MANAGING SUPPLIERS (3) HAVE BEEN ASSESSED
WATER SUSTAINABLY AND AND SELECTED ON THE BASIS OF
PREVENTING DEFORESTATION THEIR ENVIRONMENTAL
AND SOCIAL PERFORMANCE

(1)In 2017, SPOT replaced previously used social and environmental performance evaluations for formulas and packaging. SPOT takes
more criteria into consideration and ensures a more comprehensive and strict analysis. Different impacts are weighted based on their
contribution to the product’s overall impact (excluding acquisitions and subcontractors)
(2) CDP is an independent international organization which assesses companies’ environmental performance.
(3)Strategic suppliers are suppliers whose added value is significant for the Group by contributing sustainably to L’Oréal’s strategy
by their weight, their innovations, their strategic alignment and their geographical deployment.

• COMPANY PROFILE • 31

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For the
People
 96% 92%
OF THE GROUP’S PERMANENT OF THE GROUP’S PERMANENT
EMPLOYEES BENEFIT FROM HEALTH EMPLOYEES HAVE ACCESS
COVER THAT REFLECTS BEST TO FINANCIAL PROTECTION
PRACTICE IN THEIR COUNTRY OF
RESIDENCE

100,905 64%
PEOPLE FROM UNDERPRIVILEGED OF MANAGERS ARE WOMEN
COMMUNITIES GAINED ACCESS TO
EMPLOYMENT

81,138 54%
PEOPLE GAINED ACCESS TO WORK OF WOMEN AT KEY STRATEGIC
THROUGH THE SOLIDARITY POSITIONS (1)
SOURCING
PROGRAMME

(1) In 2020, 54% of our 5,300 key positions were held by women.

• COMPANY PROFILE • 33

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 €315,000
REDISTRIBUTED IN 2020 THANKS TO
PAYROLL GIVING INITIATIVE.

19,00
HOURS VOLUNTEERED THROUGH
THE PARTICIPATION OF 7,587
EMPLOYEES WORLDWIDE

• COMPANY PROFILE • 34

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For the
Products
 ~100
QUALITY CONTROLS FOR EACH
OF OUR COSMETICS PRODUCTS
96%
OF NEW OR RENOVATED PRODUCTS
IN 2020 HAVE AN IMPROVED
ENVIRONMENTAL OR SOCIAL PROFILE
85%
OF NEW OR RENOVATED PRODUCTS
HAVE AN IMPROVED ENVIRONMENTAL
PROFILE, DUE TO PACKAGING WITH
A LOWER ENVIRONMENTAL FOOTPRINT
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47
CLAIMS PER MILLION PRODUCTS
SOLD (ON FEBRUARY 2020 FOR THE
YEAR 2019 )
39%
OF NEW OR RENOVATED PRODUCTS
HAVE AN IMPROVEDENVIRONMENTAL
PROFILE, DUE TO A NEW FORMULA
WITH A LOWER ENVIRONMENTAL
FOOTPRINT
• COMPANY PROFILE • 36
 Our
Corporate
Fondation
 Since 1998, over

3,600 117
FEMALE SCIENTISTS HAVE COUNTRIES
BEEN SUPPORTED WORLDWIDE

• COMPANY PROFILE • 38

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 3,200 33,500
BENEFICIARIES OF PROFESSIONAL BEAUTY FREE BEAUTY AND WELLNESS TREATMENTS
TRAINING WORLDWIDE PROVIDED IN 2020 IN FRANCE

116 268
TRAINING CENTRES COUNTRIES

• COMPANY PROFILE • 39

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Our
Governance
 Eugène Schueller François Dalle Charles Zviak
1909 -1957 1957 -1984 1984 -1988

Sir Lindsay Owen Jones Jean-Paul Agon Nicolas Hieronimus

1988 -2006 CEO from 2006 to 2021 CEO Since 2021
Chairman since 2011

• COMPANY PROFILE • 41

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 Mrs Françoise Bettencourt 33.17 %
Meyers and her family(2)

Nestlé S.A. 23.20 %

International 29.60 %
institutional investors

French institutional investors 7.87 %

Individual shareholders 4.59 %

Employees(3) 1.57 %

(1) As of 31st December 2020.

(2)Consisting of Mrs Françoise Bettencourt Meyers, Mr Jean-Pierre Meyers, Mr Jean-Victor Meyers and Mr
Nicolas Meyers, succeeding Mrs Liliane Bettencourt, and Téthys SAS.
(3)Concerns the employees and former employees of L’Oréal. Pursuant to law no. 2015-990 of 6 August 2015,
since 2016, the percentage also includes the performance shares granted in accordance with Article L. 225-197-1
of the French Commercial Code. Including 0.83% as part of the L’Oréal Employee Savings Plan and employee
investment fund as defined by Article L. 225-102 of the French Commercial Code.

• COMPANY PROFILE • 42

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 Jean-Paul Nicolas Christophe Vincent Cyril Myriam Vianney Asmita Omar Blanca
Agon Hieronimus Babule Boinay Chapuy Cohen-Wilgryn Derville Dubey Hajeri Juti
Chairman Chief Executive Chief Financial President President President President Chief Digital & President Chief Communications &
Officer Officer Travel Retail Active Cosmetics Europe Zone Marketing Professional Products. Public Affairs Officer
Luxe
Officer

Barbara Jean-Claude Fabrice Alexandra Alexis Stéphane Frédéric Vismay Antoine

Lavernos Le Grand Megarbane Palt Perakis-Valat Rinderknech Rozé Sharma Vanlaeys
Deputy CEO in charge of Executive Vice-President President Chief Corporate President President Chief Global President Chief Operations Officer
North Asia Zone & Sustainability Officer & Consumer Products North America & Growth Officer South Asia, Pacific,
Research, Innovation Human Relations
Chief Executive Officer Fondation L’Oréal L’Oréal USA Middle East &
& Technology
L’Oréal China North Africa Zones

• COMPANY PROFILE • 43

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 Jean-Paul Françoise
Agon Bettencourt Meyers
Chairman Vice-Chairwoman of
Chairman of the Strategy the Board of Directors.
and Sustainable Development Member of the Strategy &
Committee. Sustainable Development Committee.
Member of the Appointments &
Chairman of
Governance Committee.
Fondation L’Oréal
Member of the Human Resources &
Remuneration Committee.
Paul
Bulcke
Vice-Chairman of
the Board of Directors.
Member of the Strategy &
Sustainable Development Committee.
Member of the Appointments &
Governance Committee.
Member of the Human Resources &
Remuneration Committee.
Ana Sofia Sophie
Amaral Bellon
Member of the Human Resources Chairwoman of the Appointments
& Remuneration Committee. & Governance Committee.
Chairwoman of the Human Resources
& Remuneration Committee.
Member of the Audit Committee.
Patrice
Caine
Member of the Strategy &
Sustainable Development Committee.
Member of the Appointments &
Governance Committee.
Fabienne
Dulac
Member of the Audit Committee.
Member of the Human Resources
& Remuneration Committee.

Belén Béatrice Ilham Georges Jean-Victor Nicolas Virginie

Garijo Guillaume-Grabisch Kadri Liarokapis Meyers Meyers Morgon
Member of Member of L’Oréal Board member Member of Member of the Strategy & Sustainable L’Oréal Board member Chairwoman of the
the Audit Committee. since the 30th of June 2020. the Audit Committee. Development Committee. since the 30th of June 2020. Audit Committee.
the Human Resources &
Member of the Audit Committee
Remuneration Committee

• COMPANY PROFILE • 44

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 Create
the beauty
that moves
the world

• COMPANY PROFILE • 45

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