Investor Days May 2012 f Roze

Frédéric Rozé, President L’Oréal USA

International Financial Analysts May 10, 2012

2

HISTORY OF L’ORÉAL USA

L’ORÉAL USA TODAY

L’ORÉAL USA TOMORROW

AGENDA

L'Oréal USA Investor Days - May 2012

1 HISTORY OF L’ORÉAL USA

4

AT THE BEGINNING…… They were 25


5

1953: Cosmair, Inc. becomes the exclusive licensing agent to import and sell L’Oréal hair color in the United States

1994: Cosmair, Inc. becomes 100% owned subsidiary of L’Oréal SA

2000: Cosmair, Inc. changes its name to L’Oréal USA

2011: L’Oréal USA represents approximately 20% of L’Oréal’s worldwide cosmetic sales

L’ORÉAL USA’S HISTORY


6

PROFESSIONAL CONSUMER LUXE ACTIVE

1954

1993

1998

2000

2007

2007‐2011

1966 / 1983

1996

1998‐2000

2000

2011

1974

1983

1984

2000

2005

2007

2008

2011

2000

2000

2005

2005

BRAND BUILDING FOR L’ORÉAL USAAPPROXIMATELY 40% US BRANDS


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L’ORÉAL USA’S HISTORY

Creative hub for US global brands:

Matrix

Redken

Pureology

Mizani

Maybelline

SoftSheen Carson

Essie

Ralph Lauren

Kiehl’s Since 1851

Skinceuticals

Clarisonic

US hubs drive 20% of L’Oreal

worldwide consolidated

sales.


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DRIVING ORGANIC GROWTH A U.S. WAY OF BEING SUCCESSFUL

MAYBELLINE#1 Cosmetics brand

REDKEN#1 Salon Hair Care brand in US grew 3X since ’98

ESSIE3X growth since acquisition

PUREOLOGY#1 Color Care Brand in the U.S., +60% since L’Oreal acquisition

KIEHL’S4x in 10 years and becoming a global phenomenon

SKINCEUTICALSGrowing 2X since acquisition in 2005

MATRIX#2 U.S. Professional Salon Brand, reaching over 100K community salons

CLARISONICL’Oreal enters the fast growing beauty devices category.


9

Sales Published – Pre and Post IFRS Post IFRS

L’ORÉAL USA HAS GROWN3.5 TIMES IN 15 YEARS

$MM

+7.7%


2 L’ORÉAL USA TODAY

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69%

49.6%

32%

50.4%

28%

13% 12%

4% 7%3% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2000 2010 2015 2020 2025 2030 2035 2040

Caucasian

Total Multi‐Cultural

Hispanic

Black

Asian

All Other

THE US --- A GROWING ENVIRONMENT

Real GDP

Population (m)

Diversity

2000 2010 2020 2030Male 138 152 165 179Female 144 157 171 185Total 282 309 336 364

2009 2010 2011 2012 2013 2015 2015-3.5% 3.2% 1.7% 2.1% 2.3% 3.4% 3.2% Moderate growth.

Significant growth

+55m +18%next 20 yrs.

Rapid change.

Sources: US Bureau of Economic Affairs, Global Insight, US Census Bureau

% Population by Race


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BEAUTY BOUNCES BACK AFTER A DIP IN 2008/2009, REACHING 4.5% IN 2011 $38B MARKET

‐2

‐1

0

1

2

3

4

5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Cha

nge,

%

Source: Growth, Kline , excluding soaps, razors, blades, oral care; market size from internal Beauty Market Survey.


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Skincare continues to be the largest category, while makeup is the fastest growing

Sales by Product Category, 2011 Growth by Product Category, 2011

Source: Kline excluding soaps, razors/blades and oral care.

0.0% 2.0% 4.0% 6.0% 8.0%

Haircare

Toiletries

Skincare

Fragrance

Makeup


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BEAUTY DISTRIBUTION IN THE USA

Food Drug Mass28.5%

Walmart13.8%

Warehouse Clubs 2.4% Dollar Stores 2.6%Other Mass 2.0%

Hair Salon7.0%

Spa/Medical 2.0% Nail Salon 0.7%

Dept Stores14.4%

Spec. Cosm. Stores4.2%

ManufacturersStores 2.1%

DRTV4.6%

e‐tailing 1.5%Vertically

Integrated 7.8%

Person to Person 6.4%

49.3%+2.3%

9.7%+0.4%

26.8%+10.6%

14.2%+1.9%

Mass Professional

Selective Direct

Weight & EvolutionWeight


Source: L’Oreal Beauty Market Survey

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BEAUTY AND TOILETRIES MARKET SHARE EVOLUTIONTOP 10 BEAUTY COMPANIES

Company 2011

Procter & Gamble 14.2%

L'Oréal 13.6%

Estée Lauder 7.8%

Unilever 7.4%

Limited Brands 4.6%

Johnson & Johnson 4.5%

Coty 3.3%

Mary Kay 3.1%

Avon 3.0%

Revlon 2.3%

Private label 1.8%

Source: Growth, Kline , excluding soaps, razors/blades, oral care, at manufacturers net.


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CPD COMBINED SHARE EVOLUTION MAKE-UP, HAIR CARE/STYLING, HAIR COLOR, FACIAL SKIN CARE

23,5

26,3

28,6

25,1

15,0

17,0

19,0

21,0

23,0

25,0

27,0

29,0

31,0

2007 2008 2009 2010 2011 YTD '12

Competitor #1 = 25.1%

Source: extracted from US IRI for Food Drug Mass, and L’Oreal estimates for Walmart based on IRI Total RetailView panel data

L’Oréal CPD = 26.3%L’Oréal CPD = 26.3%


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0

5

10

15

20

25

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Share

L’ORÉAL PARIS VERSUS REVLON DOLLAR SHARE OF COSMETICS THROUGH Q1 2012

Revlon = 12.4%

L’Oréal Paris = 15.8%L’Oréal Paris = 15.8%

Data Source: 2003 and forward: Extracted from US IRI for Food Drug Mass, without Walmart1995-1998: Nielsen including Wal-martNielsen Data reported historical through 2002


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MAYBELLINE VERSUS COVER GIRLDOLLAR SHARES OF COSMETICS THROUGH Q1 2012

Cover Girl = 16.8%Cover Girl = 16.8%

Maybelline = 20.5%

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Share

Data Source: 2003 and forward: Extracted from US IRI for Food Drug Mass IRI without Walmart1995-1998: Nielsen including Wal-martNielsen Data reported historical through 2002


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0

10

20

30

40

50

60

70

1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Share

* L’Oreal CPD figures include Soft Sheen Carson for 2001 forward onlyData Source: Extracted from US IRI for Food Drug Mass IRI FDM without Walmart from 2003 forward1995 through 1998 Nielsen Including Wal-MartNielsen data reported historical through 2002

USA: DOLLAR SHARE OF WOMEN’S HAIR COLOUR THROUGH Q1 2012

P&G = 27.2%

L’Oréal CPD* = 55.2%


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L’Oréal USA #1 with 36% Market Share

3 x P&G

5 x Estee Lauder

#1 IN SALON HAIR MARKET

Source: Market size and L’Oreal USA share is from Professional Beauty Association survey; competitive shares are internal estimates.


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L’OREAL LUXE #2 IN LUXURY

Estee Lauder #1 38%, L’Oréal Luxe 16%

Clarisonic fastest growing major brand in luxury skincare +144%.

Kiehl’s rapid growth +20%

YSL Signature +15%

Kiehl’s Signature +20%

Giorgio Armani Signature +11%

Victor & Rolf +22%

.


Source: NPD 2011

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THE BODY SHOP TURNING AROUND

Distribution Modernization– Free Standing Stores 253 -9% from prior year

New Pulse Boutiques introduced– Sephora in JC Penney 300 doors – Ulta 450 doors– e-Commerce 16% of total sales, +28% in Q1

Brand Refresh (with pulse Boutiques) – “Beauty with Heart” With new visuals, packaging– Chocomania Sensorial body care– Drop-of-Youth Plant stem cell skin care

Results– +6.6% comp door in 2011 and similar in Q1 2012


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L’OREAL USA #1 BEAUTY ADVERTISER IN THE US


$ (000s) 2009 2010 2011

Total Media Spend $853 $1,118 $1314Advertiser Ranking (all advertisers) #15 #10 #6

Source: Kantar Measured Media ,

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BEAUTY SHARE OF VOICE


2009 2010 2011

L’Oreal USA 22.2% 26.0% 27.8%

P&G 26.5% 23.6% 23.5%

J&J 10.2% 9.2% 7.9%

Estee Lauder 3.7% 4.6% 5.8%

Coty 3.1% 5.8% 5.5%

Source: Kantar Measured Media , beauty categories excluding toiletries, soaps, razors/blades and oral products.

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COLORADOAurora

ARKANSASNorth Little Rock

ILLINOISInstitute for Ethnic Hair & Skin (Chicago)

NEW YORKL'Oréal USA Headquarters

NEW JERSEY

Clark, Franklin, Piscataway

Cranbury, South Brunswick,Burlington, Dayton

Clark

KENTUCKYFlorence

OHIOSolon Streetsboro

POWERFUL NETWORK OF LABS & PLANTS

6 Manufacturing Plants

10 Distribution/Assembly Centers

3 Research & Development Sites

Note: Solon and Clark scheduled to close in 2015

TEXASGarland

Washington

Redmond


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LEVERAGING SUSTAINABILITY

Focus Areas for L’Oréal USA:

Behaving ethically and responsibly in the communities where we operate

– Annual Citizens Day- engaging employees in local volunteer projects

• Reducing impacts from our operations– Investing in renewable sources of energy: Franklin,

Piscataway, Berkeley Heights, North Little Rock– USGB LEED certifications: Franklin, Berkley Heights, Clark R&I pending– Wall-to-Wall: In-house component supply – Committing to aggressive footprint reduction targets

– -50% Greenhouse Gases– -50% Water consumption per unit of finished product– -50% Waste per unit of finished product


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A COMPANY OF TALENT

10,518 Employees of which 93% are Americans.

Embracing Diversity:

Our recruitment of diverse profiles pushes our business forward and drives innovation and creativity across all our teams

In our Research & Innovation labs, our scientists represent more than 43different countries of origin (120 company-wide)

Exporting US Talents:

2009: 10 US expats

2011: 29 US expats

2012 goal: Over 50 US expats


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The BEAUTY SHAKER AWARDS

The initiative was launched in 2010 as one event and 2 awards open to all L’Oréal USA employees to recognize teams that excel in their jobs and incent individuals to think out of the box, dare, be creative.

1. The Excellence award for teams or projects that have demonstrated excellence in an initiative in the last 12 months

2. The Out of the Box award for individuals or teams that demonstrated “Out of the box” thinking in a concept/solution or for new breakthrough ideas that can shake the way we work or the Beauty World.

3. In 2011, the Digital Category was added.

Approximately 2000 employees participated each year resulting in dozens of projects being implemented across all Divisions and Functions of the company.


3 L’ORÉAL USA TOMORROW

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THERE IS STILL OPPORTUNITY AHEAD

Source: For the US Kline, excluding soaps, razors/blades, oral care.

L’Oréal Share Of Market

Total Beauty

13.6%

18.5% 19.6%


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TOP 5 GROWTH CONTRIBUTORS TO THE GOAL OF WINNING 1 BILLION NEW CONSUMERS

Source: L’Oreal estimates –Strategic Prospective – December 2010

ChinaIndiaUS 70MMBrazilPakistan


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GEOGRAPHIC PENETRATION OPPORTUNITY


L’Oréal

North East 79.5%

Mid West 73.3%

South 82.1%

West 77.0%

Source: Target Research Group 8/2010. Females 13+ who use any beauty product form selected manufacturers.

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Used Any L’Oréal

% Consumers

Total Age 13+ 62.3% 159.4MM

Females 78.6% 100.9MM

Males 45.9% 58.5MM

Non-Users 97MM

100MM NON-USERS OF L’ORÉAL PRODUCTS IN THE USA

LUSA Research Study 2010: consumers who used any brand in past 12 monthsL'Oréal USA Investor Days - May 2012

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CATEGORY OPPORTUNITIES

Source: Kline excluding soaps, razors/blades and oral care.

L’Oreal #1 22.3%Nail #3

L’Oreal #3 8.3%Hand & Body #11 Facial skincare #2 Sun care #5

L’Oreal #3 10.6%Men’s #1Women’s #4

L’Oreal #2 20.8%Shampoo #3Conditioner #3

L’Oreal #20


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ENGINES OF GROWTH

Under Weighted Categories

Facial Skincare

Hand and Body

Women’s Fragrances

Haircare

Under Weighted Distribution

E-Commerce

Free Standing Stores

DRTV

Demographics

Under Served Consumers Groups

US Population Growth

Product Innovation

Digital Focus

Selective Acquisitions


Thank you!

-------------------------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 complètesconcernant L’Oréal, nous vous invitons à vous reporter aux documents publics déposés en France auprès de l’Autorité des Marchés Financiers (également disponibles enversion anglaise sur notre site Internet www.loreal-finance.com).Ce document peut contenir certaines déclarations de nature prévisionnelle. Bien que la Société estime queces déclarations reposent sur des hypothèses raisonnables à la date de publication du présent communiqué, elles sont par nature soumises à des risques et incertitudespouvant 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 atthe 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 orprojected in these statements."

Investor Days May 2012 f Roze

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