2013-02-11 18:13:09 -
Clichy, February 11(th), 2013 at 6:00 p.m.
Annual Results 2012
STRONG GROWTH IN SALES AND PROFITS
* Sales: 22.46 billion euros
* +10.4% based on reported figures
* +6.2% excluding currency fluctuations
* +5.5% like-for-like
* Operating profit: +12.3% at 16.5% of sales
* Net profit after non-controlling interests: +17.6%
* Net earnings per share*: +13.6% at 4.91 euros
* Dividend**: +15% at 2.30 euros
* Net cash flow: +26.4% at 2.58 billion euros
The Board of Directors of L'Oréal met on February 11(th), 2013 under the
chairmanship of Jean-Paul Agon and in the presence of the Statutory Auditors.
The Board closed the consolidated financial statements and the financial
statements for 2012.
Commenting on the annual results, Mr Jean-Paul Agon, Chairman and Chief
Executive Officer of L'Oréal, said:
"2012 was a good year for L'Oréal on many fronts. The Group achieved strong
sales growth, and once again demonstrated its ability to outperform the beauty
market, and to gain market share, even in the more difficult markets of Western
Europe and the United States. 2012 was also a very good vintage in terms of
innovations - amongst the most remarkable in the industry - in each of our
Divisions and major business segments.
2012 also marked a milestone in the acceleration of the Group's
internationalisation, as the "New Markets" became the number one geographic
zone.
Lastly, the profits and cash flow have grown very strongly, reaching record
levels, and confirming the power of our business model.
In view of these successes and improvements, we are facing the future with
optimism and confidence. Confidence in the positive dynamics of our market.
Confidence in the strength of our "Beauty for all" mission, in our
"universalisation" strategy, and in our ambition to conquer one billion new
consumers. And finally, confidence in the fundamentals of L'Oréal: its research,
its ability to innovate and create high quality products, its outstanding
portfolio of brands, its business model, which creates both value and cash flow,
and lastly the unique strength of its teams.
The Group is thus well prepared to outperform the market in 2013, and to achieve
another year of sales and profit growth."
The Board of Directors has decided to propose to the Annual General Meeting of
April 26(th), 2013 the payment of a dividend of 2.30 euros per share, an
increase of +15% compared with the previous year, and the setting up of a new
share buyback plan amounting to 500 millions in the 1(st) half of 2013.
The Board will also propose to the Annual General Meeting the renewal of the
terms of office of Mrs Françoise Bettencourt Meyers, of Mr Peter Brabeck-
Letmathe and Mr Louis Schweitzer. It will also propose the appointment as new
Board Director of Mrs Virginie Morgon, Executive Board Member and Chief
Investment Officer of Eurazeo, one of the leading investment companies listed in
Europe.
*Diluted net earnings per share, based on net profit excluding non-recurring
items after non-controlling interests.
** Proposed at the Annual General Meeting of April 26th, 2013.
A - 2012 sales
Like-for-like, i.e. based on a comparable structure and identical exchange
rates, the sales trend of the L'Oréal Group was +5.5%.
The net impact of changes in consolidation amounted to +0.7%.
Currency fluctuations had a positive impact of +4.2%.
Growth at constant exchange rates was +6.2%.
Based on reported figures, the Group's sales, at December 31(st), 2012, amounted
to 22.463 billion euros, an increase of +10.4%.
1.Sales by operational division and geographic zone
+---------------------------+----------------------------+
| 4(th) quarter 2012 | At December 31(st), 2012 |
| | | | |
| €m | Growth | €m | Growth |
| | | | | | |
| |Like-for- |Reported| |Like-for- |Reported|
| | like | | | like | |
+---------------------+-------+----------+--------+--------+----------+--------+
|By operational | | | | | | |
|division | | | | | | |
| | | | | | | |
|Professional Products| 741.7| 2.4%| 5.3%| 3,002.6| 2.1%| 6.7%|
| | | | | | | |
|Consumer Products |2,613.4| 5.8%| 8.7%|10,713.2| 5.0%| 8.9%|
| | | | | | | |
|L'Oréal Luxe |1,516.7| 6.2%| 12.3%| 5,568.1| 8.3%| 16.0%|
| | | | | | | |
|Active Cosmetics | 331.9| 7.1%| 8.6%| 1,528.0| 5.8%| 7.5%|
| | | | | | | |
|Cosmetics total |5,203.6| 5.5%| 9.2%|20,811.9| 5.5%| 10.3%|
| | | | | | | |
|By geographic zone | | | | | | |
| | | | | | | |
|Western Europe |1,805.0| 1.4%| 3.2%| 7,399.6| 0.6%| 2,1%|
| | | | | | | |
|North America |1,289.0| 7.3%| 14,8%| 5,210.7| 7.2%| 18.3%|
| | | | | | | |
|New Markets, of |2,109.6| 8.2%| 11.3%| 8,201.6| 9.2%| 13.6%|
|which: | | | | | | |
| | | | | | | |
| - Asia, |1,089.0| 6.5%| 11.7%| 4,287.0| 9.6%| 18.4%|
|Pacific | | | | | | |
| | | | | | | |
| - Eastern | 381.1| 4.0%| 7.4%| 1,405.0| 3.9%| 5.1%|
|Europe | | | | | | |
| | | | | | | |
| - Latin | 474.7| 13.5%| 12.0%| 1,826.6| 10.4%| 8.7%|
|America | | | | | | |
| | | | | | | |
| - Africa, | 164.7| 14.6%| 16.9%| 683.0| 14.7%| 17.6%|
|Middle East | | | | | | |
| | | | | | | |
|Cosmetics total |5,203.6| 5.5%| 9.2%|20,811.9| 5.5%| 10.3%|
| | | | | | | |
|The Body Shop | 290.3| 4.1%| 9.8%| 855.3| 4.9%| 11.4%|
| | | | | | | |
|Dermatology((1)) | 236.4| 0.9%| 4.8%| 795.5| 5.9%| 12.9%|
| | | | | | | |
|Group total |5,730.2| 5.3%| 9.0%|22,462.7| 5.5%| 10.4%|
+---------------------+-------+----------+--------+--------+----------+--------+
(1) Group share, i.e. 50%.
1) Cosmetics sales
PROFESSIONAL PRODUCTS
In a market affected by the slowdown in southern European countries, and the low
weight of the New Markets, the Professional Products Division posted +2.1% like-
for-like and +6.7% reported growth in 2012.
* In the technical products category, the new-generation long-lasting hair
colourant ODS2 (Oil Delivery System) was rolled out worldwide under the
brands INOA2 by L'Oréal Professionnel, Chromatics by Redken and, at the end
of the year, ColorInsider by Matrix.
Haircare is growing strongly, boosted by hair oils, and by the rising
momentum of the Division's luxury brands: Kérastase, with Cristalliste and
with the recent launch of Initialiste, the first beauty serum with plant
stem cells, along with Pureology and Shu Uemura Art of Hair.
* The Division is making progress in Germany, France and the United Kingdom,
but sales have receded in southern Europe because of a decline in salon
visits. In the United States, the year was marked by SalonCentric's supply
chain reorganisation. The Division's positions are rising strongly in the
New Markets in Eastern Europe, Asia and the Middle East.
CONSUMER PRODUCTS
The Consumer Products Division achieved sales growth of +5% like-for-like and
+8.9% based on reported figures, driven by strategic advances in Western Europe
and North America, along with major product initiatives.
* Haircare is growing strongly, thanks to the good results of the renewal of
Elvive by L'Oréal Paris, its new Arginine Resist for fragile hair, and hair
oils.
In hair colourants, the year-end was marked by the launch of Olia by
Garnier, the first home-use hair colourant to feature ODS technology. This
initiative, which marks a breakthrough in the market, is making a strong
start in Western Europe, and will then be rolled out worldwide.
The facial skincare category is growing, thanks to the worldwide success of
Revitalift Laser by L'Oréal Paris, a major anti-ageing innovation with a
high concentration of Proxylane, and BB Cream by Garnier, whose success has
effectively created a completely new category.
Finally, the make-up category was enlivened by the innovative Volume Express
Mega Plush mascara by Maybelline and by the start of the
internationalisation of the Essie brand.
* The Division set a new all-time record for market share in Western Europe
- notably in France - along with North America. In the New Markets, the
Division is improving its positions in Mexico, Chile, Indonesia, Thailand
and Turkey.
L'ORÉAL LUXE
In 2012, L'Oréal Luxe sales grew by 8.3% like-for-like and +16% based on
reported figures. In each of the four quarters, the Division significantly
outperformed market growth, thanks especially to the dynamism of Lancôme, and
the good performances in Asia and North America.
* The Lancôme brand grew strongly, driven by innovations - in facial skincare
with Génifique Yeux Light Pearl, and in fragrances with the launch of La Vie
est Belle, the top worlwide launch of the year in its category - and thanks
to the brand's new premium luxury positioning, with Absolue L'Extrait. The
year 2012 also brought a change of status for Yves Saint Laurent,
which received the Prestige Brand of the Year award from the American
magazine WWD: the brand is strengthening its multi-business segment
dimension with the launch of Forever Youth Liberator facial skincare, the
success in make-up of Vernis à Lèvres, and more recently, the European
launch of the women's perfume, Manifesto.
The strategic facial skincare category is growing strongly. The successes of
Lancôme are backed up by the powerful worldwide growth of Kiehl's and the
expansion of Clarisonic in instrumental cosmetics in the United States.
Women's fragrances are also being supported by the launch of Ralph Lauren's
Big Pony Collection for Women and by the rising momentum of Flowerbomb by
Viktor & Rolf.
In make-up, the end of the year was notable for the launch of Maestro
foundation by Giorgio Armani, with a remarkably innovative formula, and
finally for the acquisition in December of the Californian make-up brand
Urban Decay.
* The Division outperformed the market in all the major zones and in Travel
Retail.
ACTIVE COSMETICS
2012 was a particularly good year for the Division, with sales growth of 5.8%
like-for-like, and 7.5% based on reported figures, which is roughly twice as
fast as the trend in the dermocosmetics market.
* 2012 brought a new start for Vichy, driven by its new brand identity, and
strong initiatives such as Idéalia, in skincare, and Dercos Neogenic, the
first hair redensifying treatment with stemoxydine.
The La Roche-Posay brand, strongly established with 25,000 dermatologists,
is maintaining its strong growth rate, and has in fact become the top
dermocosmetics brand in Brazil. Its latest innovation, Redermic-R is
extremely promising.
The Division's relay brands are making a strong contribution to its success.
SkinCeuticals, the premium medical and professional brand, is continuing its
internationalisation.
* Lastly, 2012 was the first-ever year in which the Division made more than
50% of its sales outside Western Europe. It also made a breakthrough in
North America, and is maintaining its strong dynamism in Latin America.
Multi-division summary by geographic zone
WESTERN EUROPE
The European context saw the decline of markets in the southern countries,
particularly in hair salons and the luxury segment, and the resilience of the
rest of Europe. At 12 months, L'Oréal sales increased by +0.6% like-for-like,
and +2.1% based on reported figures, thus raising its market share, particularly
in the Consumer Products Division, which consolidated its number one position.
The Group performed well, particularly in France - where the acquisition of
Cadum fully played its part - in the United Kingdom, in Germany and in Northern
Europe.
NORTH AMERICA
In North America, L'Oréal ended 2012 with growth of 7.2% like-for-like and
18.3% based on reported figures. The good results seen in 2011 were surpassed in
2012. The Consumer Products Division became n°1 in its segment, thanks to strong
growth at Garnier, Maybelline and Essie. The end of the year was marked by the
strategic launch of L'Oréal Paris Advanced Hair Care. L'Oréal Luxe outperformed
its market, thanks especially to Clarisonic. The Active Cosmetics Division
significantly increased its presence in drugstores.
NEW MARKETS
* Asia, Pacific: L'Oréal achieved annual growth of +9.6% like-for-like and
+18.4% based on reported figures. The Group is increasing market share in
the region. While the selective channel context slowed in the second half,
particularly in South Korea and in Travel Retail, L'Oréal strengthened its
positions thanks to initiatives by Lancôme, Kiehl's and Yves Saint Laurent.
In China, the Group grew faster than the market, especially with L'Oréal
Luxe, Maybelline and L'Oréal Paris Men Expert. India, Indonesia and Thailand
are particularly dynamic, driven by local initiatives such as Colossal Kajal
by Maybelline, and the Garnier Men range.
* Eastern Europe : With sales growth of +3.9% like-for-like and +5.1% based on
reported figures, the Group is continuing its recovery, and is once again
growing faster than the market. The turnaround is being driven by the
Professional Products Division, with its conquest of new hair salons,
particularly in Russia and Poland, and by the Consumer Products Division,
thanks to the success of Elvive Arginine by L'Oréal Paris and Garnier
ColorSensation hair colourants.
* Latin America : L'Oréal achieved like-for-like growth of +10.4% and +8.7%
based on reported figures, with increased growth in the second half. In
2012, L'Oréal became the market leader in Mexico, and expanded its positions
in Chile, Argentina and Uruguay.
L'Oréal accelerated its roll-out in the countries of Central America, and in
Colombia, with the acquisition of the Vogue brand, the mass-market make-up
leader in Colombia.
In Brazil, the initiatives of Elvive Arginine Resist, hair oils and hair
colourants led to an improvement in positions. The dynamism of the Active
Cosmetics Division in this zone is also worth noting.
* Africa, Middle East : With growth of +14.7% like-for-like and +17.6% based
on reported figures, the Africa Middle East zone recorded very good
performances in Turkey, the Gulf States and the Levant. 2012 was notable for
the rising momentum of new subsidiaries in Egypt and Kenya, and the opening
of a new subsidiary in Saudi Arabia.
2) The Body Shop sales
2012 was a year of acceleration for The Body Shop, whose sales grew by +4.9%
like-for-like and +11.4% based on reported figures.
The brand unveiled its new "Beauty with Heart" identity in 2012, and started
rolling out the new "Pulse" store concept. In addition, The Body Shop continued
its multi-channel approach with a strong increase in e-commerce.
In 2012, the brand strengthened its offering in skincare categories, with the
success of the Chocomania bodycare range, and in facial skincare, with the
innovative Drops of Youth.
The Body Shop achieved dynamic sales in the Middle East and in south-east Asia,
while recording solid scores in Europe.
3) Galderma sales
Galderma sales increased by +5.9% like-for-like and +12.9% based on reported
figures, with a fourth quarter which, as announced, reflected the impact of
competition from generics in prescription products, especially in the United
States.
Epiduo (acne) and Oracea (rosacea) are continuing to grow in the prescription
products category. Epiduo is the world's leading prescription product in the
topical acne treatment market.
Sales of over-the-counter (OTC) products increased strongly, driven by Cetaphil
(a hydrating and cleansing skincare range).
The strong growth of the Restylane range (dermal filler) and the success of
Azzalure (muscle relaxant) have this year once again helped to make Galderma one
of the world leaders in the aesthetic and corrective dermatology market.
Asia and Latin America are growing strongly.
B - Important events during the period 10/01/12 - 12/31/12
* On October 24(th), 2012, L'Oréal USA signed an agreement for the acquisition
of Emiliani Enterprises for its SalonCentric Division. The acquisition was
finalised on December 15(th), 2012.
* On October 31(st), 2012, L'Oréal acquired the Vogue make-up brand in
Colombia. The acquisition was finalised on January 31(st), 2013.
* On November 7(th), 2012, in Indonesia, L'Oréal inaugurated its largest
factory in the world, to meet the rapidly growing demand from the beauty
market in south-east Asia.
* On November 14(th), 2012, a new subsidiary, L'Oréal KSA, was founded in
Saudi Arabia. L'Oréal holds 75% of the entity.
* On November 26(th), 2012, L'Oréal signed an agreement to acquire Urban
Decay. The acquisition was finalised on December 17(th), 2012.
* On December 10(th), 2012, Galderma Pharma S.A. signed an agreement to
acquire Spirig Pharma A.G., a major player in the Swiss dermatology market.
* On December 11(th), 2012, in Mexico, L'Oréal inaugurated the largest hair
colourant product factory in the world.
C - Results 2012
Audited financial statements, certification in progress.
1) Operating profitability at 16.5% of sales
Consolidated profit and loss account: from sales to operating profit.
+-----------------------------------------+------------------+-----------------+
| | 2011 | 2012 |
| | | | | |
| | €m |% sales| €m |% sales|
+-----------------------------------------+----------+-------+---------+-------+
|Sales | 20,343.1|100.0 %| 22,462.7|100.0 %|
| | | | | |
|Cost of sales |- 5,851.5 | 28.8 %| -6,587.7| 29.3 %|
| | | | | |
|Gross profit | 14,491.6| 71.2 %| 15,875.0| 70.7 %|
| | | | | |
|Research and development expenses | - 720.5| 3.5 %| - 790.5| 3.5 %|
| | | | | |
|Advertising and promotion expenses | - 6,291.6| 30.9 %|- 6,776.3| 30.2 %|
| | | | | |
|Selling, general and administrative | - 4,186.9| 20.6 %|- 4,610.9| 20.5 %|
|expenses | | | | |
| | | | | |
|Operating profit | 3,292.6| 16.2 %| 3,697.3| 16.5 %|
+-----------------------------------------+----------+-------+---------+-------+
Gross profit increased by 9.5%; it came out at 70.7% of sales, compared with
71.2% in 2011. As in the 1(st) semester, the gross profit underwent the combined
effects of the exchange rate effect due to the weakening of the euro against the
main currencies, of the impact of the consolidation of the American company
Clarisonic, and of a slight increase in customer allowances, in the context of
arbitrage with advertising and promotion expenses.
Research expenses increased strongly at +9.7%, and remained stable as a
percentage of sales at 3.5%.
Advertising and promotion expenses increased by 7.7%; they came out at 30.2% of
sales, slightly below the figure for 2011.
Selling, general and administrative expenses, at 20.5% of sales, once again
declined by 10 basis points compared with 2011.
Overall, operating profit at 3,697 million euros, has increased by 12.3%,
reflecting a significant improvement in profitability compared with 2011, at 30
basis points.
2) Operating profit by branch and division
+---------------------------+-------------------+--------------------------+
| | 2011 | 2012 |
| | | | | |
| | €m | % sales | €m | % sales |
+---------------------------+---------+---------+---------+----------------+
| By operational division | | | | |
| | | | | |
| Professional Products | 578.6 | 20.6% | 615.2 | 20.5% |
| | | | | |
| Consumer Products | 1,859.0 | 18.9% | 2,050.8 | 19.1% |
| | | | | |
| L'Oréal Luxe | 926.3 | 19.3% | 1,077.0 | 19.3% |
| | | | | |
| Active Cosmetics | 286.7 | 20.2% | 311.2 | 20.4% |
| | | | | |
| Cosmetics divisions total | 3,650.6 | 19.3% | 4,054.3 | 19.5% |
| | | | | |
| Non-allocated(*) | - 546.2 | - 2.9% | -577.2 | -2.8% |
| | | | | |
| Cosmetics branch total | 3,104.4 | 16.5% | 3,477.1 | 16.7% |
| | | | | |
| The Body Shop | 68.1 | 8.9% | 77.5 | 9.1% |
| | | | | |
| Dermatology branch(**) | 120.1 | 17.0% | 142.6 | 17.9% |
| | | | | |
| Group | 3,292.6 | 16.2% | 3,697.3 | 16.5% |
+---------------------------+---------+---------+---------+----------------+
* Non-allocated = Central Group expenses, fundamental research expenses, stock
options and free grant of shares expenses and miscellaneous items. As a % of
cosmetics sales.
** Group share, i.e. 50%.
The profitability of the Professional Products Division at 20.5% is in line with
2011. The profitability of the Consumer Products Division and the Active
Cosmetics Division once again improved in 2012. The profitability of L'Oréal
Luxe remained stable in 2012, at 19.3%.
The Body Shop continued to improve its profitability by 20 basis points in
2012, at 9.1%.
Finally, the profitability of Galderma, at 17.9% of sales, grew by 90 basis
points in 2012.
3) Profitability by geographic zone
+------------------------+-------------------+-------------------+
| | 2011 | 2012 |
| Operating profit | | | | |
| | €m | % sales | €m | % sales |
| +---------+---------+---------+---------+
| Western Europe | 1,512.3 | 20.9% | 1,576.2 | 21.3% |
| | | | | |
| North America | 810.1 | 18.4% | 959.7 | 18.4% |
| | | | | |
| New Markets | 1,328.1 | 18.4% | 1,518.4 | 18.5% |
| | | | | |
| Cosmetics zones total* | 3,650.6 | 19.3% | 4,054.3 | 19.5% |
+------------------------+---------+---------+---------+---------+
* Before non-allocated.
Profitability in Western Europe improved by 40 basis points at 21.3%.
Profitability in North America remained stable and its operating profit
increased by 18.5%.
Profitability in the New Markets increased by 10 basis points at 18.5%, and
their operating profit grew by more than 14%.
4) Net earnings per share(**): 4.91 euros
Consolidated profit and loss accounts: from operating profit to net profit
excluding non-recurring items.
+---------------------------------------------+-----------+-----------+--------+
| €m | 2011 | 2012 |% change|
+---------------------------------------------+-----------+-----------+--------+
|Operating profit | 3,292.6| 3,697.3| +12.3%|
| | | | |
|Financial revenues and expenses excluding | - 25.2| - 11.0| |
|dividends received | | | |
| | | | |
|Sanofi dividends | 295.6| 313.4| |
| | | | |
|Profit before tax excluding non-recurring | 3,563.1| 3,999.7| +12,3%|
|items | | | |
| | | | |
|Income tax excluding non-recurring items | - 977.6| - 1,025.3| |
| | | | |
|Non-controlling interests | - 2.5| -2.7| |
| | | | |
|Net profit excluding non-recurring items | 2,582.9| 2,971.7| +15.1%|
|after non-controlling interests(*) | | | |
| | | | |
| | | | |
| | | | |
|Net EPS** (€) | 4.32| 4.91| +13.6%|
| | | | |
|Net profit after non-controlling interests | 2,438.4| 2,867.7| +17.6%|
| | | | |
|Diluted net EPS after non-controlling | 4.08| 4.74| |
|interests (€) | | | |
| | | | |
|Diluted average number of shares |597,633,103|605,305,458| |
+---------------------------------------------+-----------+-----------+--------+
* Net profit excluding non-recurring items after non-controlling interests does
not include impairment of assets, restructuring costs, tax effects or non-
controlling interests.
** Diluted net earnings per share excluding non-recurring items after non-
controlling interests.
Total finance costs amounted to 11 million euros.
Dividends from Sanofi amounted to 313 million euros.
Income tax excluding non-recurring items amounted to 1,025 million euros,
representing a rate of 25.6%, below the 2011 rate of 27.4%, with the benefit of
a non-recurring fiscal change effect in China.
Net profit excluding non-recurring items after non-controlling interests
amounted to 2,972 million euros, up by 15.1%.
Net earnings per share, at 4.91 euros, increased by +13.6%.
After allowing for non-recurring items, representing in 2012 a charge, net of
tax, of 104 million euros, net profit after non-controlling interests amounted
to 2,868 million euros, an increase of 17.6%.
5) Cash flow statement, Balance sheet and Net financial situation
Gross cash flow amounted to 3,661 million euros, an increase of +13.5%.
The working capital requirement increased modestly, in 2012, by 129 million
euros.
Inventories declined significantly as a percentage of sales, at 9.1% at end-
2012; trade accounts receivable also declined, at 14.3% of sales; investments,
at 955 million euros, amounted to 4.3% of sales, an identical level to 2011. As
a result, operating cash flow increased by 26.4%.
After dividend payment and acquisitions (mainly Cadum and Urban Decay), the
Group recorded, at December 31(st), 2012, a net cash surplus of 1,575 million
euros, compared with 504 million euros at end-2011.
The balance sheet structure is very solid. The reinforcement of shareholders'
equity compared with end-2011 is mainly the result of profit allocated to
reserves and the net increase in value of the Sanofi shares, valued at market
price.
6) Proposed dividend at the Annual General Meeting of April 26(th), 2013
The Board of Directors has decided to propose that the Shareholders' Annual
General Meeting of April 26(th), 2013 should approve a dividend of 2.30 euros
per share, an increase of +15% compared with the dividend paid in 2012. This
dividend will be paid on May 10th, 2013 (ex-dividend date May 7th, at 0:00 a.m.,
Paris time).
7) Share capital
The Board of Directors has set the amount of the share capital at 31(st)
December, 2012 to 608,810,827 shares with a par value of 0.20 euro, representing
a total of 121,762,165.40 euros.
"This news release 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, also available in English on
our Internet site www.loreal-finance.com.
This news release 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.
"This a free translation into English of the 2012 Annual Results press release
issued in the French language and is provided solely for the convenience of
English speaking readers. In case of discrepancy, the French version prevails."
Contacts at L'Oréal (switchboard: +33 1 47 56 70 00)
Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel: +33 1 47 56 83 02
jean-regis.carof@loreal.com
Financial analysts and Institutional investors
Mrs Françoise LAUVIN
Tel: +33 1 47 56 86 82
francoise.lauvin@loreal.com
Journalists
Mrs Stephanie CARSON-PARKER
Tel: +33 1 47 56 76 71
stephanie.carsonparker@loreal.com
For more information, please contact your bank, broker or financial institution
(I.S.I.N. code: FR0000120321), and consult your usual newspapers, and the
Internet site for shareholders and investors,
www.loreal-finance.com, or
its mobile version on your cell phone,
loreal-finance.mobi;
alternatively, call +33 1 40 14 80 50.
D - Appendices
Appendix 1: L'Oréal Group sales 2011/2012 (€ millions)
+----------------------+--------+--------+
| | 2011 | 2012 |
+----------------------+--------+--------+
| First quarter: | | |
| | | |
| Cosmetics | 4,861 | 5 ,309 |
| | | |
| The Body Shop | 170 | 180 |
| | | |
| Dermatology | 130 | 154 |
| | | |
| First quarter total | 5,160 | 5,643 |
| | | |
| Second quarter: | | |
| | | |
| Cosmetics | 4,644 | 5,162 |
| | | |
| The Body Shop | 168 | 194 |
| | | |
| Dermatology | 177 | 215 |
| | | |
| Second quarter total | 4 989 | 5 570 |
| | | |
| First half: | | |
| | | |
| Cosmetics | 9,505 | 10,471 |
| | | |
| The Body Shop | 337 | 374 |
| | | |
| Dermatology | 307 | 368 |
| | | |
| First half total | 10,150 | 11,213 |
| | | |
| Third quarter: | | |
| | | |
| Cosmetics | 4,600 | 5,137 |
| | | |
| The Body Shop | 166 | 191 |
| | | |
| Dermatology | 172 | 191 |
| | | |
| Third quarter total | 4,938 | 5,519 |
| | | |
| Nine months: | | |
| | | |
| Cosmetics | 14,105 | 15,608 |
| | | |
| The Body Shop | 503 | 565 |
| | | |
| Dermatology | 479 | 559 |
| | | |
| Nine months total | 15,087 | 16,732 |
| | | |
| Fourth quarter: | | |
| | | |
| Cosmetics | 4,766 | 5,204 |
| | | |
| The Body Shop | 264 | 290 |
| | | |
| Dermatology | 226 | 236 |
| | | |
| Fourth quarter total | 5,256 | 5,730 |
| | | |
| Full year | | |
| | | |
| Cosmetics | 18,871 | 20,812 |
| | | |
| The Body Shop | 768 | 855 |
| | | |
| Dermatology | 705 | 796 |
| | | |
| Full year total | 20,343 | 22,463 |
+----------------------+--------+--------+
Appendix 2: Compared consolidated income statements
€ millions 2012 2011 2010
-------------------------------------------------------------------------------
Net sales 22,462.7 20,343.1 19,495.8
-------------------------------------------------------------------------------
Cost of sales -6,587.7 -5,851.5 -5,696.5
-------------------------------------------------------------------------------
Gross profit 15,875.0 14,491.6 13,799.3
-------------------------------------------------------------------------------
Research and development -790.5 -720.5 -664.7
-------------------------------------------------------------------------------
Advertising and promotion -6,776.3 -6,291.6 -6,029.1
-------------------------------------------------------------------------------
Selling, general and administrative expenses -4,610.9 -4,186.9 -4,048.6
-------------------------------------------------------------------------------
Operating profit 3,697.3 3,292.6 3,056.9
-------------------------------------------------------------------------------
Other income and expenses -123.8 -96.3 -153.2
-------------------------------------------------------------------------------
Operational profit 3,573.5 3,196.3 2,903.7
-------------------------------------------------------------------------------
Finance costs on gross debt -34.5 -48.1 -43.8
-------------------------------------------------------------------------------
Finance income on cash and cash equivalents 31.3 28.5 17.2
-------------------------------------------------------------------------------
Finance costs, net -3.2 -19.6 -26.6
-------------------------------------------------------------------------------
Other financial income (expenses) -7.8 -5.6 -9.0
-------------------------------------------------------------------------------
Sanofi dividends 313.4 295.6 283.8
-------------------------------------------------------------------------------
Profit before tax and non-controlling interests 3,875.9 3,466.7 3,151.9
-------------------------------------------------------------------------------
Income tax -1,005.5 -1,025.8 -909.9
-------------------------------------------------------------------------------
Net profit 2,870.4 2,440.9 2,242.0
-------------------------------------------------------------------------------
attributable to:
-------------------------------------------------------------------------------
- owners of the company 2,867.7 2,438.4 2,239.7
-------------------------------------------------------------------------------
- non-controlling interests 2.7 2.5 2.3
-------------------------------------------------------------------------------
Earnings per share attributable to owners of the
company (euros) 4.79 4.11 3.82
-------------------------------------------------------------------------------
Diluted earnings per share attributable to owners
of the company (euros) 4.74 4.08 3.79
-------------------------------------------------------------------------------
Earnings per share attributable to owners of the
company excluding non-recurring items (euros) 4.97 4.36 4.04
-------------------------------------------------------------------------------
Diluted earnings per share attributable to owners
of the company excluding non-recurring items
(euros) 4.91 4.32 4.01
-------------------------------------------------------------------------------
Appendix 3: Consolidated statements of net profit and gains and losses
recognised directly in equity
€ millions 2012 2011 2010
-------------------------------------------------------------------------------
Consolidated net profit for the period 2,870.4 2,440.9 2,242.0
-------------------------------------------------------------------------------
Financial assets available for sale 1,730.9 1,051.6 -852.3
-------------------------------------------------------------------------------
Cash flow hedges 103.0 -6.0 -8.0
-------------------------------------------------------------------------------
Cumulative translation adjustments -134.3 114.5 463.3
-------------------------------------------------------------------------------
Income tax on items that may be reclassified to -116.9 -62.8 15.7
profit or loss( (1))
-------------------------------------------------------------------------------
Items that may be reclassified to profit or loss 1,582.7 1,097.3 -381.3
-------------------------------------------------------------------------------
Actuarial gains and losses -271.9 -172.4 -213.5
-------------------------------------------------------------------------------
Income tax on items that may not be reclassified to 86.7 56.2 76.3
profit or loss ((1))
-------------------------------------------------------------------------------
Items that may not be reclassified to profit or loss -185.2 -116.2 -137.2
-------------------------------------------------------------------------------
Changes in gains and losses recognised directly in
equity 1,397.5 981.1 -518.5
-------------------------------------------------------------------------------
Total net profit and gains and losses recognised
directly in equity 4,267.9 3,422.0 1,723.5
-------------------------------------------------------------------------------
Attributable to:
-------------------------------------------------------------------------------
- owners of the company 4,265.1 3,419.5 1,721.2
-------------------------------------------------------------------------------
- non-controlling interests 2.8 2.5 2.3
-------------------------------------------------------------------------------
((1) )The tax effect is as follows:
€ millions 2012 2011 2010
-------------------------------------------------------------------------
Financial assets available for sale -90.0 -63.9 14.6
-------------------------------------------------------------------------
Cash flow hedges -26.9 1.1 1.1
-------------------------------------------------------------------------
Items that may be reclassified to profit or loss -116.9 -62.8 15.7
-------------------------------------------------------------------------
Actuarial gains and losses 86.7 56.2 76.3
-------------------------------------------------------------------------
Items that may not be reclassified to profit or loss 86.7 56.2 76.3
-------------------------------------------------------------------------
Total -30.2 -6.6 92.0
-------------------------------------------------------------------------
Appendix 4: Compared consolidated balance sheets
Assets
€ millions 12.31.2012 12.31.2011 12.31.2010
-------------------------------------------------------------------------------
Non-current assets 21,315.5 19,135.0 17,048.2
-------------------------------------------------------------------------------
Goodwill 6,478.2 6,204.6 5,729.6
-------------------------------------------------------------------------------
Other intangible assets 2,625.4 2,477.3 2,177.5
-------------------------------------------------------------------------------
Property, plant and equipment 2,962.8 2,880.8 2,677.5
-------------------------------------------------------------------------------
Non-current financial assets 8,531.3 6,900.9 5,837.5
-------------------------------------------------------------------------------
Deferred tax assets 717.8 671.4 626.1
-------------------------------------------------------------------------------
Current assets 8,209.6 7,722.6 6,996.3
-------------------------------------------------------------------------------
Inventories 2,033.8 2,052.1 1,810.1
-------------------------------------------------------------------------------
Trade accounts receivable 3,208.8 2,996.2 2,685.3
-------------------------------------------------------------------------------
Other current assets 1,006.6 904.1 846.0
-------------------------------------------------------------------------------
Current tax assets 137.2 118.0 104.5
-------------------------------------------------------------------------------
Cash and cash equivalents 1,823.2 1,652.2 1,550.4
-------------------------------------------------------------------------------
Total 29,525.1 26,857.6 24,044.5
-------------------------------------------------------------------------------
Equity & Liabilities
€ millions 12.31.2012 12.31.2011 12.31.2010
-------------------------------------------------------------------------------
Equity 20,936.4 17,637.5 14,865.8
-------------------------------------------------------------------------------
Share capital 121.8 120.6 120.2
-------------------------------------------------------------------------------
Additional paid-in capital 1,679.0 1,271.4 1,148.3
-------------------------------------------------------------------------------
Other reserves 13,690.6 12,368.8 11,107.1
-------------------------------------------------------------------------------
Items recognised directly in equity 3,586.4 2,054.7 1,188.1
-------------------------------------------------------------------------------
Cumulative translation adjustments -109.4 24.9 -89.6
-------------------------------------------------------------------------------
Treasury stock -904.5 -644.4 -850.9
-------------------------------------------------------------------------------
Net profit attributable to owners of the 2,867.7 2,438.4 2,239.7
company
-------------------------------------------------------------------------------
Equity attributable to owners of the company 20,931.6 17,634.4 14,862.9
-------------------------------------------------------------------------------
Non-controlling interests 4.8 3.1 2.9
-------------------------------------------------------------------------------
Non-current liabilities 2,219.2 2,090.2 2,596.6
-------------------------------------------------------------------------------
Provisions for employee retirement 1,226.2 1,128.9 1,129.0
obligations and related benefits
-------------------------------------------------------------------------------
Provisions for liabilities and charges 181.7 226.1 181.3
-------------------------------------------------------------------------------
Deferred tax liabilities 764.4 677.7 462.0
-------------------------------------------------------------------------------
Non-current borrowings and debt 46.9 57.5 824.3
-------------------------------------------------------------------------------
Current liabilities 6,369.5 7,129.9 6,582.1
-------------------------------------------------------------------------------
Trade accounts payable 3,318.0 3,247.7 3,153.5
-------------------------------------------------------------------------------
Provisions for liabilities and charges 552.3 500.7 536.9
-------------------------------------------------------------------------------
Other current liabilities 2,141.1 2,066.7 1,958.1
-------------------------------------------------------------------------------
Income tax 157.0 224.0 166.6
-------------------------------------------------------------------------------
Current borrowings and debt 201.1 1,090.8 767.0
-------------------------------------------------------------------------------
Total 29,525.1 26,857.6 24,044.5
-------------------------------------------------------------------------------
Appendix 5: Consolidated statements of changes in equity
Retained Items
Equity
Common Additional earnings recognised Cumulative
attributable Non-
shares Share paid-in and net directly Treasury translation to
owners of controlling Total
€ millions outstanding capital capital profit in equity stock adjustments the
company interests equity
-----------------------------------------------------------------------------------------------------------------------
At 589,655,903 120.2 1,148.3 13,346.8 1,188.1 -850.9 -89.6
14,862.9 2.9 14,865.8
12.31.2010
-----------------------------------------------------------------------------------------------------------------------
Consolidated
net profit 2,438.4
2,438.4 2.5 2,440.9
for the
period
-----------------------------------------------------------------------------------------------------------------------
Financial
assets 987.7
987.7 987.7
available
for sale
-----------------------------------------------------------------------------------------------------------------------
Cash flow -4.9
-4.9 -4.9
hedges
-----------------------------------------------------------------------------------------------------------------------
Cumulative
translation 114.5
114.5 114.5
adjustments
-----------------------------------------------------------------------------------------------------------------------
Change in
gains and
losses
recognised
directly in
equity and
items that
may be
reclassified
to profit or
loss 982.8 114.5
1,097.3 1,097.3
-----------------------------------------------------------------------------------------------------------------------
Actuarial
gains and -116.2
-116.2 -116.2
losses
-----------------------------------------------------------------------------------------------------------------------
Change in
gains and
losses
recognised
directly in
equity and
items that
may not be
reclassified
to profit or
loss -116.2
-116.2 -116.2
-----------------------------------------------------------------------------------------------------------------------
Total net
profit and
gains and
losses
recognised
directly in
equity 2,438.4 866.6 114.5
3,419.5 2.5 3,422.0
-----------------------------------------------------------------------------------------------------------------------
Capital 1,991,497 0.4 123.1
123.5 123.5
increase
-----------------------------------------------------------------------------------------------------------------------
Cancellation
of Treasury
- -
stock
-----------------------------------------------------------------------------------------------------------------------
Dividends
paid
(not paid on
Treasury
stock) -1,065.3
-1,065.3 -2.2 -1,067.5
-----------------------------------------------------------------------------------------------------------------------
Share-based 86.8
86.8 86.8
payment
-----------------------------------------------------------------------------------------------------------------------
Net changes
in Treasury 2,739,023 1.7 206.5
208.2 208.2
stock
-----------------------------------------------------------------------------------------------------------------------
Other -1.2
-1.2 -0.1 -1.3
movements
-----------------------------------------------------------------------------------------------------------------------
At 594,386,423 120.6 1,271.4 14,807.2 2,054.7 -644.4 24.9
17,634.4 3.1 17,637.5
12.31.2011
-----------------------------------------------------------------------------------------------------------------------
Consolidated
net profit 2,867.7
2,867.7 2.7 2,870.4
for the
period
-----------------------------------------------------------------------------------------------------------------------
Financial
assets 1,640.9
1,640.9 1,640.9
available
for sale
-----------------------------------------------------------------------------------------------------------------------
Cash flow 76.0
76.0 0.1 76.1
hedges
-----------------------------------------------------------------------------------------------------------------------
Cumulative
translation -134.3
-134.3 -134.3
adjustments
-----------------------------------------------------------------------------------------------------------------------
Change in
gains and
losses
recognised
directly in
equity and
items that
may be
reclassified
to profit or
loss 1,716.9 -134.3
1,582.6 0.1 1,582.7
-----------------------------------------------------------------------------------------------------------------------
Actuarial
gains and -185.2
-185.2 -185.2
losses
-----------------------------------------------------------------------------------------------------------------------
Change in
gains and
losses
recognised
directly in
equity and
items that
may not be
reclassified
to profit or
loss -185.2
-185.2 -185.2
-----------------------------------------------------------------------------------------------------------------------
Total net
profit and
gains and
losses
recognised
directly in
equity 2,867.7 1,531.7 -134.3
4,265.1 2.8 4,267.9
-----------------------------------------------------------------------------------------------------------------------
Capital 5,826,745 1.2 407.6
408.8 1.4 410.2
increase
-----------------------------------------------------------------------------------------------------------------------
Cancellation
of Treasury
- -
stock
-----------------------------------------------------------------------------------------------------------------------
Dividends
paid
(not paid on
Treasury
stock) -1,204.3
-1,204.3 -2.5 -1,206.8
-----------------------------------------------------------------------------------------------------------------------
Share-based 86.4
86.4 86.4
payment
-----------------------------------------------------------------------------------------------------------------------
Net changes
in Treasury -1,856,506 2.4 -260.1
-257.7 -257.7
stock
-----------------------------------------------------------------------------------------------------------------------
Other -1.1
-1.1 -1.1
movements
-----------------------------------------------------------------------------------------------------------------------
At 598,356,662 121.8 1,679.0 16,558.3 3,586.4 -904.5 -109.4
20,931.6 4.8 20,936.4
12.31.2012
-----------------------------------------------------------------------------------------------------------------------
Appendix 6: Compared consolidated statements of cash flows
€ millions 2012 2011 2010
-------------------------------------------------------------------------------
Cash flows from operating activities
-------------------------------------------------------------------------------
Net profit attributable to owners of the company 2,867.7 2,438.4 2,239.7
-------------------------------------------------------------------------------
Non-controlling interests 2.7 2.5 2.3
-------------------------------------------------------------------------------
Elimination of expenses and income with no impact
on cash flows:
-------------------------------------------------------------------------------
· depreciation, amortisation and provisions 691.6 614.3 734.2
-------------------------------------------------------------------------------
· changes in deferred taxes 17.3 85.9 110.0
-------------------------------------------------------------------------------
· share-based payment (including free shares) 86.4 86.8 84.8
-------------------------------------------------------------------------------
· capital gains and losses on disposals of assets -4.3 -1.7 0.1
-------------------------------------------------------------------------------
Gross cash flow 3,661.4 3,226.2 3,171.1
-------------------------------------------------------------------------------
Changes in working capital -129.1 -322.0 132.5
-------------------------------------------------------------------------------
Net cash provided by operating activities (A) 3,532.3 2,904.2 3,303.6
-------------------------------------------------------------------------------
Cash flows from investing activities
-------------------------------------------------------------------------------
Purchases of property, plant and equipment and -955.0 -865.7 -677.9
intangible assets
-------------------------------------------------------------------------------
Disposals of property, plant and equipment and 7.3 15.2 18.3
intangible assets
-------------------------------------------------------------------------------
Changes in other financial assets
(including investments in non-consolidated
companies) 105.8 -1.2 2.3
-------------------------------------------------------------------------------
Effect of changes in the scope of consolidation -466.2 -717.4 -160.7
-------------------------------------------------------------------------------
Net cash (used in) from investing activities (B) -1,308.1 -1,569.1 -818.0
-------------------------------------------------------------------------------
Cash flows from financing activities
-------------------------------------------------------------------------------
Dividends paid -1,268.2 -1,107.6 -921.6
-------------------------------------------------------------------------------
Capital increase of the parent company 408.8 123.5 152.3
-------------------------------------------------------------------------------
Capital increase of subsidiaries 1.4 - -
-------------------------------------------------------------------------------
Disposal (acquisition) of Treasury stock -257.7 208.2 184.0
-------------------------------------------------------------------------------
Purchase of non-controlling interests - - -8.7
-------------------------------------------------------------------------------
Issuance (repayment) of short-term loans -906.7 852.8 -132.6
--------------
