L'Oréal S.A. (OTCPK:LRLCF) Q2 2023 Earnings Call Transcript July 28, 2023 3:00 AM ET Company Participants Francoise Lauvin - Investor relations Nicolas Hieronimus - CEO Christophe Babule - CFO Laurent Schmitt - Global Head of Corporate Finance and Financial Communication Conference Call Participants Bruno Monteyne - Bernstein Celine Pannuti - JPMorgan Olivier Nicolai - Goldman Sachs Ian Simpson - Barclays Guillaume Delmas - UBS Fulvio Cazzol - Berenberg Sarah Simon - Morgan Stanley Robert Ottenstein - Everc ...

Financial Data and Key Metrics Changes - L'Oréal reported a consolidated sales increase of 18.5% to over €38 billion, with a double-digit like-for-like growth of 10.9% and an operating profit margin of 19.5%, up 40 basis points [4][5][17] - Earnings per share (EPS) surged by 27.6% to €11.26, marking the best growth in almost 30 years on a reported basis [4][24] - The gross profit increased by 16.1% to €27.6 billion, with a gross margin of 72.4%, slightly down from the previous year [15][17] Performance by Business Division - The Professional Products Division grew by 10.1%, while L'Oréal Luxe achieved a growth of 10.2%. Active Cosmetics posted a remarkable growth of 21.9%, and the Consumer Products Division saw its best growth in 20 years at 8.3% [8][32][47] - The Consumer Products Division reached €14 billion in sales, with a balanced growth from both value and volume [33][34] - Active Cosmetics nearly doubled in size since 2019, reaching €5.1 billion with a profit margin of 25.4% [78] Market Performance Data - Europe and North Asia accounted for around 30% of sales, with North America exceeding 26% [9] - North America showed strong momentum with a 10.4% like-for-like growth, while North Asia grew by 6.6% despite challenges in China [11][12] - Emerging markets grew by 20.5%, contributing significantly to overall growth, particularly in India and Latin America [12][13] Company Strategy and Industry Competition - L'Oréal aims to achieve carbon neutrality for all its sites by 2025, with 110 sites already achieving this status [30] - The company is focusing on premiumization and innovation across its brands, particularly in skincare and hair care, to capture market share [38][59] - L'Oréal Luxe is positioned to outperform the luxury market, with a diversified brand portfolio and strong growth in emerging markets [70][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite macroeconomic challenges, citing early signs of reduced inflation and a recovering Chinese market [118] - The company highlighted the resilience of the beauty market, noting that consumer demand for beauty products remains strong even during economic downturns [118] - Management emphasized the importance of innovation and digital engagement in driving future growth [115][117] Other Important Information - The balance sheet remains robust with shareholders' equity of €27.2 billion and a net debt of €3 billion [28][29] - The Board of Directors proposed a 25% increase in dividends to €6 per share, reflecting a payout ratio of 53.3% [29] - L'Oréal's commitment to social and environmental performance was recognized, with various awards and initiatives aimed at sustainability and community support [31][105] Q&A Session Summary Question: What are the growth drivers for the Consumer Products Division? - The division is focusing on the upper half of the middle class, which represents a significant market opportunity, and is leveraging digital tools to enhance consumer engagement [38][45] Question: How is L'Oréal addressing supply chain challenges? - The company has maintained product availability close to 100% and is adapting its operations to mitigate supply chain disruptions [93] Question: What is the outlook for the Professional Products Division? - The division is confident in maintaining growth momentum through innovation and expanding its presence in emerging markets [59][60]

Financial Performance & Market Position - L'Oréal achieved its highest growth in 33 years, with a like-for-like sales increase of +16.1%[4], and +11.3% compared to 2019[4] - The company outperformed the beauty market, growing at twice the market rate[27] - L'Oréal's global market share increased by +1 percentage point to approximately 14.2% in 2021[56, 58] - The company's operating margin increased from 18.6% in 2020 to 19.1% in 2021[83] - Earning per share increased by +20.9% from €7.30 in 2020 to €8.82 in 2021[85] - The proposed dividend per share increased by +20% from €4.00 in 2020 to €4.80 in 2021[87] Market Trends & Growth Drivers - The overall beauty market rebounded with an estimated growth of approximately +8%[7] - E-commerce and travel retail channels experienced significant growth, both at approximately +16%[12] - Skincare and fragrances categories showed strong growth, with approximately +21% and +8% respectively[9] - North America experienced substantial growth of +22%[59] - China's beauty market continued to grow dynamically, with approximately +16% growth in Q4 2021 compared to Q4 2019[17]

L'Oréal S.A. (OTCPK:LRLCF) Q4 2021 Earnings Conference Call February 10, 2022 3:00 AM ET Company Participants Francoise Lauvin - Head, Investor Relations Nicolas Hieronimus - CEO Christophe Babule - CFO Alexis Perakis-Valat - President, Consumer Product Division Cyril Chapuy - President, L'Oréal Luxe Myriam Cohen-Welgryn - President, Active Cosmetics Omar Hajeri - President, Professional Products Division Conference Call Participants Olivier Nicolai - Goldman Sachs Guillaume Delmas - UBS Ian Simpson - Barcl ...

L'Oréal S.A. (OTCPK:LRLCF) Q2 2020 Earnings Conference Call July 31, 2020 5:00 AM ET Company Participants Francoise Lauvin - Head, Investor Relations Jean-Paul Agon - Chairman and CEO Christophe Babule - CFO Mark Prestwich - Group General Manager, Financial Communication and Strategic Perspective Conference Call Participants Celine Pannuti - JPMorgan Guillaume Delmas - UBS Richard Taylor - Morgan Stanley Marion Boucheron - MainFirst Fulvio Cazzol - Berenberg Iain Simpson - Barclays Jeremy Fialko - HSBC Chri ...

2020 half-year results 31 July 2020 Mr Christophe Babule Chief Financial Officer l'Oréal Like-for- like % change -11.7% of which: ➢ external growth impact +0.3% Change at constant exchange rates -11.4% Consolidated sales at the end of June 2020 €14.81Bn H1-2019 H1-2020 €13.07Bn ➢ Currency impact -0.3% Reported change -11.7% 2 31 July 2020 3 31 July 2020 Changes in exchange rates (against the euro) | --- | --- | --- | --- | --- | |---------------------|-----------------------------------------------|-------- ...

| --- | --- | --- | --- | |-------|-------|-------|---------------------------------------------------| | | | | | | | | | | | | | | | | | | | IN POLE POSITION FOR THE DECADE AHEAD | | | | | Jean-Paul AGON CHAIRMAN & CHIEF EXECUTIVE OFFICER | | | | | 21 February 2020 | KEY INDICATORS 2019 SALES €29.9 Bn #1 BEAUTY PLAYER WORLDWIDE1 OPERATING MARGIN 18.6% NET PROFIT2 €4.4 Bn OPERATING CASH FLOW3 €5 Bn EARNINGS PER SHARE4 €7.74 MARKET CAPITALIZATION5 c. €15O BILLION 1Source: WWD, Beauty's Top 100, May 2019. 2Ne ...

L'Oreal SA (OTCPK:LRLCF) Q4 2019 Earnings Conference Call February 7, 2020 3:00 AM ET Company Participants Jean-Paul Agon - Chairman & CEO Jean-Régis Carof - Director, Shareholder & Market Authority Relations Christophe Babule - EVP & CFO Nicolas Hieronimus - Deputy CEO, In Charge of Divisions Brigitte Liberman - President, Active Cosmetics Division Nathalie Roos - President, Professional Products Division Alexis Perakis-Valat - President, Consumer Products Division Cyril Chapuy - President, L'Oréal Luxe Co ...

THE POWER OF BEAUTY Jean-Paul AGON Chairman & Chief Executive Officer CAGNY 22 FEBRUARY 2019 L'ORÉAL 22 February 2019 KEY INDICATORS 2018 SALES 26.9 BILLION € OPERATING MARGIN 18.3% 3.9 BILLION € 7.08 € NET CASH FLOW2 EARNINGS PER SHARE3 #1 BEAUTY PLAYER WORLDWIDE NET PROFIT1 4 BILLION € MARKET CAPITALIZATION 124 BILLION €4 1Net profit, excluding non-recurring items after non-controlling interests. 2Net cash flow = Gross cash flow + changes in working capital - capital expenditure.3Diluted earnings per shar ...