‘It is time

to act’

1 L’Oréal in brief

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…

Introduction

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

27 International brands*

Key figures

stCOSMETICS GROUP

WORLDWIDE 20.3 BILLION EUROS OF SALES

IN 2011

INTERNATIONAL

BRANDS (1)

27

130 COUNTRIES 613

PATENTS REGISTERED IN 2011

68,900 EMPLOYEES

2 Ambition &

Strategy

Our ambition

1 BILLION

new consumers

A Clear Strategic Project

Universalisation and beauty for all

A Clear Strategic Project

19 Research Centres

16 Evaluation Centres

6 Regional Poles

Research and marketing close to the markets

Ethical ambition

Our Ethical Values Integrity, Respect, Excellence,

Courage and Transparency

Code of Business Ethics:

A reference document available

in 35 languages

Our ambition To be an exemplary company by acting in an ethical

and responsible way

Ethics Day Webchat 2012 :

2600 questions,

22,000 employees (+ 20% vs. 2011)

Ethics day 2012: Theme: Community ethics

‘Ethics in everyday life’

Vigeo France ranks L’Oréal as

the leading Company in

Social Responsability

L’Oréal recognized

as one of the most ethical

companies in the world

The L’Oréal Spirit A true commitment

3 Diversities

Strategy

Minorities Small

Business Social

Inclusion Fair Trade

Inclusion of People with Disabilities

5 C

om

mu

nities

Employment/Revenue

85+ Initiatives

40+ countries

30+ Million Euros invested in Solidarity

Initiatives

Mission: Help economically vulnerable people find long-term access to work and an

income

Diversity & Purchasing : Solidarity Sourcing

Diversity & Beauty

Partners with brands Anticipate & integrate

diverse consumers

Diagnosis tools Measure & track

Consumer insights

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

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.

Diversity and Business

Meet our consumers’ different needs through:

All distribution

channels

To be accessible

to all public

Different Beauty segments

Skin, Hair, Make-up, Fragrance, Oral cosmetics

27 international brands

Different cultural origins

Business units, Research and Evaluation centers all around the world

Understanding and integrating differences

4 HR

Diversities Mission

d

•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

1 Objective

3 Strategic areas

L’Oréal n°1 in Diversities Management worldwide To search, seduce and retain 1 billion new consumers

Social and Ethnic Origin

Gender Disability

Our 3 global priority dimensions

Ou

r 3

glo

ba

l pri

ori

ty a

ctio

n le

vers

Training

Career management

Recruitment & integration

• Diversify recruitment pools

• % of visible minorities when

possible

Diversities

training

FOR ALL

employees

Respect, at least, the legal

employment requirement

50/50 recruitment

balance

• 50 % women in ManCom until 2015

• Equal pay for equivalent

work

5 HR Objectives

for 2015

2010-2015 Global Diversities Policy

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

12443 managers trained (end 2012)

2005-2012 Main achievements in Europe

5 Diversities

Activities

15 countries, 24 participants, 1 network sharing on Diversities

International Diversities Meeting 2012

Why?

Allows us to publish our first Worldwide Diversities Report

Measure country progress according to the 3 Global Priority Dimensions

Dashboard

Every country will get its own report with score and guidelines.

A legal update A dashboard for

piloting

Aim to publish first Worldwide

Diveristies Report

Clear overview on your current

‘diversity situation’

What is it? Qualitative and quantitative indicators organized around 6 domains :

Gender, Disability, Social & Ethnic Origins, Diversities Training, Local

Diversity Policies, Seniors.

The result?

Next!

Measure: Country Reporting

6 Diversities

Achievements

151 key worldwide actions

- Structures

- Commitments

- Field actions

14 recognitions

- Awards, trophies

- Labels

- Rankings, ratings

• Diversity Charter Belgium

• Ethics Charter (2nd Edition) • 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) • 2nd “Emploi & Diversité” career fair labelled by the European commission

• “La Minute de la Diversité” radio campaign (RMC, France)

• Lycée Henri IV partnership (France)

• “L’Oréal’s Initiatives to Promote Diversity”, corporate advertising

• 2ND special edition Respect Magazine (10 000 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)

Diversities at L’Oréal:

Milestones

SOS Racisme trial (1st instance, discharge )

SOS Racisme trial (2nd instance, conviction for Garnier )

Blue: structures L'Oreal has taken part of, or created by L'Oreal

Red: L’Oréal’s signed commitments

Green: price/award

• Ethics Charter

• Vice-President Diversity (USA)

• SOS Racisme Action « It’s gonna be possible » (France)

• Development of day care centers (36 cribs in Canada)

• Diversity Charter France

• “Global Diversity Award ” (USA) • Africagora Career fair (France , UK, Belgium)

• Education Charter France • Diversity Observatory (24 in France) • “Diversity Innovation Award” (Prague) • Launch of Diversity Training in Europe (objective: 8000 managers) • 1st “Emploi & Diversité” career Fair (22 recruitments, France) • 1st 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)

• Apprenticeship Charter France

• Appointment: Worldwide Diversity Director

• “International Leadership Award” Anti-Defamation league (USA) • Diversity Policy formalization

• INED survey (France)

• Coordination of Disability Insertion (France)

• Partnership CEP Sciences Po (France)

•Schueller leave (France)

• End Career Leave (France)

• Global Compact

• Audits on Disability (France)

2000 2002 2004 2005 2006 2007 2003 2001 1993 1970 1983

Achievements

• 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

•Diversity charter Spain •Diversity charter Italy • Diversity Label (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)

• Comedd (French commission on Measurement)

• Diversity training for Top Management

• 1st numeric « Respect Magazine » special edition (France)

• Diversity Training: in 16 countries . 6200 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)

• 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)

• Parenthood Charter France • Diversity Charter Germany

• 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)

• 1st “Emploi & Diversité” Senior job fair (France)

• 1st “Emploi & Diversité” career fair (Italy) • “SNCF Train pour l’emploi” career 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

2010 2009 2008

• 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) •Citizen Day

•Research associations fair (France)

• 2nd 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

2011

• 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 (12th edition)

• 1st 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”

• 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

2012

• 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

• 3rd edition of L’Oréal ‘s Disability Trophees (scope : 15 countries)

• Culture Majeure’s training modules

• Certification of the ‘gender equality Model (Mexico)