EXANE BNP PARIBAS - L'Oréal Finance...EXANE BNP PARIBAS A pure player in Beauty for 106 years 22...
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JUNE 10th, 2015 Christian MULLIEZ Chief Financial Officer EXANE BNP PARIBAS
Transcript of EXANE BNP PARIBAS - L'Oréal Finance...EXANE BNP PARIBAS A pure player in Beauty for 106 years 22...
JUNE 10th, 2015
Christian MULLIEZ Chief Financial Officer
EXANE BNP PARIBAS
A pure player
in Beauty for 106 years
2 / June 10th 2015 2 /
*Estimates
L’ORÉAL The world leader in beauty WWD Beauty Biz ranking “Beauty’s Top 100” 2014 sales in billion US $
June 10th 2015 3 /
HAIR
SALONS
MASS
MARKET
DEPARTMENT
STORES
PERFUMERIES
PHARMACIES
DRUGSTORES
MEDISPAS
BRANDED
RETAIL
TRAVEL
RETAIL
HAIRCARE HAIR COLOR SKINCARE FRAGRANCE MAKE-UP
ACROSS ALL
DISTRIBUTION
CHANNELS
ACROSS ALL
BEAUTY
CATEGORIES
All channels, all categories, all prices
E-COMMERCE
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The strongest
research and
innovation
in industry
539 582
624 680
748 761
2009 2010 2011 2012 2013 2014
+3.1% +8.0% +7.3% +9.0% +10.0% +1.6%
A strategy
based on R&D,
Innovation & Quality
Research & innovation budget in million euros
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A unique
portfolio Professional
Products Consumer Products
L’Oréal Luxe
Active Cosmetics
of complementary brands
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AMERICAS
WESTERN EUROPE
AFRICA / MIDDLE-EAST
ASIA / PACIFIC
EASTERN EUROPE
Organisation
8 Strategic regions Strategically centralized
Operationally decentralized
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22.5 Billion € sales in 2014
12.5% Market share
130 Countries
78 610 Employees
17.3% Operating margin
3rd Worldwide advertiser*
Key figures
* Adage – 2013 Global Marketers June 10th 2015 8 /
Our Mission:
Beauty for all
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Our Strategy
Universalisation Globalising while understanding and respecting differences
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Our Ambition
new consumers 1 billion
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Breakdown of 2014 cosmetics sales by region
WESTERN EUROPE
NEW MARKETS
NORTH AMERICA
Balanced geographic positions Balanced operating profit
22.7% 18.7% 19.6%
20.5%**
WESTERN EUROPE
NORTH AMERICA
NEW MARKETS
20.1% 20.3% 20.5% 22.7%
PROFESSIONAL PRODUCTS
CONSUMER PRODUCTS
L’ORÉAL LUXE
ACTIVE COSMETICS
BY DIVISION* (as a % of sales)
BY REGION* (as a % of sales)
* Before central group expenses, fundamental research expenses, stock-option & free grant of shares expenses and miscellaneous items – as a % of total cosmetics sales. In accordance with IFRS 11 accounting
rule, Inneov has been consolidated under the equity method as of January 1st 2014. All figures for earlier periods have been restated accordingly.
** Cosmetics divisions total
35.5%
39.6%
24.9%
A very balanced business model
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* Net operating profit, excl. non-recurring items attributable to owners of the company, with Synthélabo consolidated fully up to 1998; net profit excl. non-recurring items attributable to owners of the company, with Sanofi-Synthélabo equity consolidated from 1999 to 2004; net profit excl. non-recurring items attributable to owners of the company including Sanofi dividend from 2004; IFRS since 2005
x28 IN 30 YEARS
Net profit since 1985*
in million euros
A powerful and long term business model 3 125
113
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0.008 0.025 0.097
0.44
1.80
*Approved at the shareholders’ meeting held on April 22nd, 2015
2.70 2.50€
2.70€*
2013 2014
+8%
LOYALTY BONUS +10%*
Dividend increase for shareholders who have continuously held shares in registered form for at
least two years
Dividend per share since 1963 in euros
A dynamic dividend policy
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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
48.7%
30.2% 31.6%
33.6%
35.7% 36.0% 36.6% 36.8%
38.5% 39.6%
41.1% 41.3%
43.9% 44.9%
46.3%
29.1%
46.8%
50.6%**
* Taking into account the Sanofi history with regards to the dividends ** Based on the dividend approved at the shareholders’ meeting held on April 22nd, 2015
A dynamic dividend policy PAY-OUT RATIO: 1997-2014 as a % of net profit*
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* TSR (TOTAL SHAREHOLDER RETURN) Takes into account the value of the share and the dividend income received (excluding tax credits). As of April 21st 2015
+19.7%
+13.6% +13.3%
20 YEARS
10 YEARS
5 YEARS
A very solid shareholder return*
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50% Others
25% North America 25% Euro
zone
Favourable impact of the monetary environment
Weight in consolidated
sales January 2015
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June 10th 2015
Q1-2014 Q1-2015
€5.64Bn
€6.44Bn
of which:
− like-for-like growth +4.0%
− external growth impact +1.2%
Exchange rate impact +8.9%
Growth at constant exchange rates +5.2%
Reported growth +14.1%
1st quarter 2015 consolidated
group sales
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The announcement on February 11th 2014 of the disposal of 50% of Galderma leads to account for this business in accordance with IFRS 5 accounting rule on discontinued operations. In accordance with IFRS 11 accounting rule, Inneov has been consolidated under the equity method as of January 1st 2014. All figures for earlier periods have been restated accordingly.
% change
Like-for-like Reported
Professional Products +3.5% +16.0%
Consumer Products +1.7% +11.6%
L’Oréal Luxe +7.5% +20.1%
Active Cosmetics +7.6% +10.2%
Cosmetics Total +4.0% +14.3%
The Body Shop +4.2% +9.1%
Consolidated Total +4.0% +14.1%
1st quarter 2015 consolidated sales
by division
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% change
Like-for-like Reported
Western Europe +1.3% +4.0%
North America +2.4% +25.2%
New Markets +7.5% +17.4%
of which:
- Asia, Pacific +5.8% +26.6%
- Latin America +10.0% +12.0%
- Eastern Europe +9.2% -7.1%
- Africa, Middle-East +11.3% +31.8%
Cosmetics Total +4.0% +14.3%
1st quarter 2015 cosmetics sales
by region
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Digital: a fantastic opportunity for beauty
Real time listening and dialogue More advice and service Personalized relationships E-commerce
Sources: Google Inside 2014, Facebook Audience Jan 2015, e-Marketer 2014
Beauty queries per year
on Google 4.5Bn
addressable beauty
addicts on Facebook 160M
views on Beauty on
YouTube/quarter 15Bn
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*Direct and indirect sales
in e-commerce
800M€ *
digital people recruited in
4 years
700 of our media
dedicated to digital
16%
Accelerating
Group
digitalisation
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in the top 10 Source: L2 Digital IQ Index: Beauty
USA:
5 L’Oréal brands
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24
of CPD sales in e-commerce
10%
of ACD sales in e-commerce
17%
Pioneering and leading e-commerce
China
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Make-up Men skincare Women skincare
Pioneering and leading e-commerce
NO1 NO1 NO1
China
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Decentralized
organisation
Entrepreneurial
spirit
Multi-brand /
multi-channel
approach
Be the Leader of Digital Beauty
Perfect match with L’ORÉAL culture
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A compelling
Acquisitions Strategy
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3 833
5 750
7 667
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15 333
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Consolidated sales
(€m)
IFRS norms from 2004 The announcement on February 11th 2014 of the disposal of 50% of Galderma leads to account for this business in accordance with
IFRS 5 accounting rule on discontinued operations. In accordance with FRS 11 accounting rule, Inneov has been consolidated under the equity method as of January 1st 2014. 2013 figures have been restated accordingly.
Acquisitions to foster our future organic growth
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Since 1995 Since 1988 Since 1999
3 examples
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+11%
CAGR
+16%
CAGR
+21%
CAGR
strengthen our presence and potential on
key strategic markets
Skincare in China and Asia
Haircolor in Brazil and Latin America
Make-up in America and worldwide
Beauty for people of multicultural origin
Entering the professional
skincare market
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On-going transformation and progress
from responsibility
to positive impact
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(1) Formulas produced in L’Oréal factories in 2014,excluding make-up and perfume. (2) In absolute value, 2005-2014. (3) Calculated as a percentage of consolidated sales 2013.
67%
INNOVATING SUSTAINABLY
of new products assessed
have an improved environmental or social impact (1)
-50%
PRODUCING SUSTAINABLY
reduction in CO2 emissions in factories and distribution centres (2)
25%
CONSUMING SUSTAINABLY
of brands have
implemented initiatives to raise consumer awareness (3)
85%
SHARING OUR GROWTH
of L’Oréal’s permanent
employees have health insurance coverage in line with the best practices in each country.
2014 progress report
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3.0%
5.0%
+3.5%
*Excluding soaps, toothpastes and razors. 2014 provisional estimates. Source: L’Oréal estimates. Excluding exchange rate impact.
On-going Growth of the Cosmetics market
Worldwide Cosmetics
Market 1993-2014*
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NEW
TARGETS NEW FORMS OF
DISTRIBUTION
Middle class
Men
Seniors
E-commerce Travel retail
Spas Multi-ethnic Branded
retail
New Frontiers
Digital is supporting consumption in a number of categories
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No1 NORTH AMERICA
14.3%
No1 WESTERN EUROPE
19.5%
No1 EASTERN EUROPE
12.1%
No8 JAPAN
2.1%
No1 ASIA PACIFIC
9.4%
excl. Japan
No2 AFRICA
MIDDLE EAST 11.1%
(in the countries where L’Oréal is
present)
No3 LATIN AMERICA
8.2%
*Excluding soaps, razors and toothpastes. L’Oréal Estimates BMS Ranking based on Euromonitor 2014 figures
L’ORÉAL “WORLD”:
12.5% “NEW MARKETS”:
8.3%
L’Oréal Ranking and market share by region in 2014*
A leader with strong potential
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2015 Ambition
Strengthen our positions Substantial increase in profits Moderate increase in profitability
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Universal Digital Sustainable
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A leader with the spirit of a
challenger
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A large company with the spirit of a
Start-up
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40 / June 2015
Françoise Lauvin Head of Investor Relations Tel. : + 33 1 47 56 86 82
Fax : + 33 1 47 56 74 93
email : [email protected]
Sophie Gasperment Group General Manager, Financial Communication
Strategic Prospective Tel. : + 33 1 47 56 86 22
Fax : + 33 1 47 56 74 93
email : [email protected]
June 10th 2015 40 /
-------------------------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 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 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: 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.”
