Our business. One mission. One ambition. Strong values. One strategy The universalisation of beauty. Beauty. Win over one billion new consumers.

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1 It is time to act

2 1 L Oréal in brief

3 Introduction Our business Beauty One ambition Win over one billion new consumers. One strategy The universalisation of beauty. One mission Offer all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety to meet the infinite diversity of beauty needs and desires all over the world. Strong values Passion, excellence, innovation, entrepreneurship, responsibility and respect

4 27 International brands* *International brands with annual sales of more than 50 million euros

5 Key figures st 20.3 COSMETICS GROUP WORLDWIDE 130 COUNTRIES INTERNATIONAL BRANDS (1) BILLION EUROS OF SALES IN 2011 PATENTS REGISTERED IN ,900 EMPLOYEES

6 2 Ambition & Strategy

7 Our ambition 1 BILLION new consumers

8 A Clear Strategic Project Universalisation and beauty for all

9 A Clear Strategic Project Research and marketing close to the markets 6 Regional Poles 19 Research Centres 16 Evaluation Centres

10 Ethical ambition Our ambition To be an exemplary company by acting in an ethical and responsible way Our Ethical Values Integrity, Respect, Excellence, Courage and Transparency Ethics day 2012: Theme: Community ethics Ethics in everyday life The L Oréal Spirit A true commitment L Oréal recognized as one of the most ethical companies in the world Code of Business Ethics: A reference document available in 35 languages Ethics Day Webchat 2012 : 2600 questions, 22,000 employees (+ 20% vs. 2011) Vigeo France ranks L Oréal as the leading Company in Social Responsability

11 3 Diversities Strategy

12 Diversity & Purchasing : Solidarity Sourcing Mission: Help economically vulnerable people find long-term access to work and an income Minorities Small Business Employment/Revenue Social Inclusion Inclusion of People with Disabilities Fair Trade 5 Communities 85+ Initiatives 40+ countries 30+ Million Euros invested in Solidarity Initiatives

13 Diversity & Beauty Notion of Inclusive Marketing Leverage Diversity in Marketing and Communication to add value in 3 approaches: 1- Consumer Relevancy & Awareness 2-Market Change Adaptation 3- Product Innovation Diagnosis tools Measure & track Consumer insights Partners with brands Anticipate & integrate diverse consumers Accompany the brands in their new markets opportunities Ex. Garnier: in South Africa adapted its products to the physiology of specific ethnic groups within the marketplace. Ex. La Roche Posay: Adapted packaging with text in braille.

14 Diversity and Business Meet our consumers different needs through: All distribution channels Different Beauty segments 27 international brands Business units, Research and Evaluation centers all around the world To be accessible to all public Skin, Hair, Make-up, Fragrance, Oral cosmetics Different cultural origins Understanding and integrating differences

15 4 HR Diversities Mission

16 Our 3 global priority action levers d Global Diversities Policy 1 Objective L Oréal n 1 in Diversities Management worldwide To search, seduce and retain 1 billion new consumers 3 Strategic areas Human Resources Equal opportunities in Recruitment and Career path Marketing/Communication Target addition for the business Purchasing Give awareness to our suppliers, give access to L Oréal 5 HR Objectives for 2015 Our 3 global priority dimensions Gender Disability Social and Ethnic Origin Recruitment & integration 50/50 recruitment balance Respect, at least, the legal employment requirement Diversify recruitment pools % of visible minorities when possible Training Diversities training FOR ALL employees Career management 50 % women in ManCom until 2015 Equal pay for equivalent work

17 Main achievements in Europe Commitments 8 Diversities Charters EU Diversity Committee Founder of Diversity Lab Structures Diversities Observatories Gender 7 countries GEES certified 4 countries -> audited in 2012 Disability CSR-Disability Network L Oréal Disability Trophies 2012 Diversities Training managers trained (end 2012)

18 5 Diversities Activities

19 International Diversities Meeting countries, 24 participants, 1 network sharing on Diversities

20 Measure: Country Reporting Why? A legal update Clear overview on your current diversity situation A dashboard for piloting Aim to publish first Worldwide Diveristies Report What is it? Qualitative and quantitative indicators organized around 6 domains : Gender, Disability, Social & Ethnic Origins, Diversities Training, Local Diversity Policies, Seniors. The result? Allows us to publish our first Worldwide Diversities Report Measure country progress according to the 3 Global Priority Dimensions Dashboard Next! Every country will get its own report with score and guidelines.

21 6 Diversities Achievements

22 Achievements Diversities at L Oréal: Diversity Charter Belgium Ethics Charter (2 nd Edition) 151 key worldwide actions - Structures - Commitments - Field actions 14 recognitions - Awards, trophies - Labels - Rankings, ratings Milestones Apprenticeship Charter France Education Charter France Diversity Observatory (24 in France) Diversity Innovation Award (Prague) Launch of Diversity Training in Europe (objective: 8000 managers) 1 st Emploi & Diversité career Fair (22 recruitments, France) Creation : Diversity Committee Diversity Observatories (2 in Spain, 2 in Belgium) Diversity Worldwide network (30 correspondents) 1st European Laboratory on Diversity (CSR Europe) Suppliers Convention Together for Diversity Patnership L Oréal Clichy (France) New management evaluation criteria (leads with human sensitivity) 2 nd Emploi & Diversité career fair labelled by the European commission La Minute de la Diversité radio campaign (RMC, France) Schueller leave (France) End Career Leave (France) Coordination of Disability Insertion Ethics (France) Charter Partnership CEP Sciences Po (France) Vice-President Diversity (USA) SOS Racisme Action «It s gonna be possible» (France) Development of day care centers (36 cribs in Canada) Global Compact Audits on Disability (France) Diversity Charter France Global Diversity Award (USA) Africagora Career fair (France, UK, Belgium) Appointment: Worldwide Diversity Director International Leadership Award Anti-Defamation league (USA) Diversity Policy formalization INED survey (France) 1 st special edition Respect Magazine (4 000 printed, France) Training on Disability (France) Objective processing of applications of POOL, L Oréal s recruitment website (home address has been deleted) Intergeneration management training (Canada) Lycée Henri IV partnership (France) L Oréal s Initiatives to Promote Diversity, corporate advertising 2 ND special edition Respect Magazine ( printed, France) Audit on seniors IF (France) Pulse Internal image survey (6 questions on diversity) B A BA : french language learning program to cleaning staff (France) Blue: structures L'Oreal has taken part of, or created by L'Oreal Red: L Oréal s signed commitments Green: price/award SOS Racisme trial instance, discharge ) (1 st SOS Racisme trial (2 nd instance, conviction for Garnier )

23 Diversity charter Spain Parenthood Charter France Diversity charter Italy Diversity Charter Germany Diversity Label (France) National Commitment «Espoir Banlieues» (France) Professional Gender Equality agreement (France) Work-Life Balance Agreement (France) Creation and Vice Presidency of AFMD (Association Française des Managers de la Diversité, France) Parenthood Observatory (France) Disability: ARPEJH Foundation (France) L Oreal Best in class in cosmetics sector in South Africa Diversity Trophy awarded to L'Oreal for the Senior job fair (France) 1st national meeting of the Diversity Observatories (France) Diversity Training : 5000 managers end 2008 (Europe) 1 st Emploi & Diversité Senior job fair (France) Agreement on ages (France) Charter of Professional Insertion of People with disabilities France Club Diverseurope (France): creation of a network between subsidiaries in Europe, to carry out local Diversity projects. Club diversity BCG Women s forum L Oreal Foundation project /Science Po (France): 1st Disability project undertaken with a major educational institution Alpha Diversity Group Trophy for social responsibility report (France) Diversity Trophy for International deployment and communication (France) Prix de l Audace for the Ba BA initiative, teaching French lessons to the cleaning staff (France) Internal Audit on Senior Talent / Vigeo and the Ministry of Employment (France) Diversity charter Sweden Diversity charter Austria Disability Agreement/Convention (France, project) Equality Convention (Spain) International Equality Label (Gender Equality Project/Davos, project) European Equality Label (Arborus, project) Extension of Diversity Observatories (Spain, Belgium, ) Carla Bruni-Sarkozy Foundation/ Lancôme (France) L Oréal Canada «Best Diversity Employer» L Oréal South Africa Broad Based Black Employment Equity scorecard level 5 Diversity Trophy for Global Policy and Diversities Overview Report (France) 1 st Emploi & Diversité career fair (Italy) Comedd (French commission on Measurement) Citizen Day SNCF Train pour l emploi career fair (France) Diversity training for Top Management Research associations fair (France) Recruitment: Participation in the 2nd edition of the Employment and Disability Careers Fair (Spain) Participation in the Employment Equity Forum (South Africa) Objective processing of applications of POOL, L Oréal s recruitment website (age, gender, nationality have been deleted) 1st CSR Europe diversity seminar Senior Talents (Belgium) Management Award «Les Espoirs du Management» (France) ESSEC chair: Diversity & Performance. 1st class of 18 students (France) Launch of Diversity + Inclusion intranet (USA) Création of supplier Diversity KPI S Disability: Partnership with LB Development (France) 1st Disability internal Trophies Sponsorship L Oreal Paris: French team Summer Paralympics Games in Beijing Creation of day care centers (Germnay, France) Partnership: CITITV, with SOS Racisme (France) 1st numeric «Respect Magazine» special edition (France) Diversity Training: in 16 countries trained managers Health project in association with RMC/BFM (France) Diversity and Performance multi company study with IMS and Good will Management (France) PACS Audencia Program (Partenariat Agir pour les Compétences et la Société, France) Brio Audencia program, to build knowledge and access to major universities to high school students from lower income backgrounds (CAI, France) Continuation of the integration of flexible Working Models for Work-Life balance (Germany) Professional Equality diagnosis (Spain) Juntos, Podemos : Integration Program of 5 students with disabilities Spain) L Oreal Impulsa : Training of 15 disadvantaged youth during 6 months at careers in hairdressing (Spain) L Oreal Centenary: implementation of one generosity project in 56 countries 2 nd edition Internal Disability Trophies 1st Diversity Report (France) Cooperation with Arabic World Institute (IMA, France) Extension of the diversity project to Japan/China Diversity training for all employees Creation of FILAPI recreational center (France) Evolve Diversity criteria's: Disability-Health, and Sexual orientation Anonymous CV experimentation (France, Germany) Garnier skin care packs in Braille and customer service accessible to consumers with hearing disabilities (Guide Caro) Blue: structures L'Oreal has taken part of, or created by L'Oreal Red: L Oréal s signed commitments Green: price/award SOS Racisme trial / Cassation : definitive conviction for Garnier

24 Gender Equality European Standard (GEES)(France, Spain, Italy, Belgium, Germany, UK,Ireland) European Diversity Norm (project) Launch of Heart Charter (RMC/BFM) European Diversity Label (AFNOR) (project) AFMD Commission Women and Governance ONCE CSR-Disability Network Diversities Observatories Equity Lab «ENAR 1st award for a Europe without racism» with L Oréal s support Emploi & Diversité Career Fair (12 th edition) 1 st Diversities Encyclopedia Second Chance Institute of Clichy Job in my city Association Energie Jeunes program Elle Platform (project) Article 5bis in the Immigration Law Presage Program (Sciences Po) (project) Launch of a new Diversities Workshop, deployment in Europe, Asia and Latin America Development of an evaluation tool for Diversities Workshop Gender Equality European Standard (GEES)(Portugal, Suède, Pologne) Diversities KPIs Medef Professional Disability Guide (Nora Barsali) Capital Filles Worldwide Diversities Report IFRI conferences Disability Matters Forum 3 rd edition of L Oréal s Disability Trophees (scope : 15 countries) Culture Majeure s training modules Certification of the gender equality Model (Mexico) Creation of a new Facebook Group of partners Parenthood Guide (France) Annual Diversities Report Blue: structures L'Oreal has taken part of, or created by L'Oreal Red: L Oréal s signed commitments Green: price/award

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