1

2014/03/28

2

BIOGRAPHY

Frank PRIVE (L’OREAL, Group Property Director)

Frank PRIVE heads the « Département Immobilier » under the Executive Vice President for Operations. In this role, he has responsability for establishing the standards for all company owned and leased buildings worldwide. He, his department and property regional teams support new projects for factories, warehouses, research laboratories, headquarters buildings, hair dressing teaching facilities. He assumed this role in 2000. Named Property Director of the Year by the French Association of Property Directors in 2005 (ADI). FORMATION: Architect DPLG 1978 / Engineer ESTP 1975 DEA of town planning 1983 ASSOCIATIVE FUNCTIONS: AMO (Architecture et Maîtrise d’Ouvrage) ADI (Association des Directeurs Immobiliers)

2014/03/28

3

1 CONTEXT

2014/03/28

4

1er

611 PATENTS APPLIED IN 2012

22,5 130 COUNTRIES

72 600 MEMBERS

28 (1) Internationl brands with an annual turnover > 50 millions €

WORLWIDE COSMETICS

GROUP

BILLION EUROS - TURNOVER IN

2012 INTERNATIONAL

BRANDS (1)

2014/03/28

5 2014/03/28

6

North America 1 024 600 sqm

702 sites (642 boutiques/distributors)

Latin America 315 700 sqm

48 sites (17 boutiques)

ZAMO-MEA 75 300 sqm

16 sites

Asia-Pacific 508 000 sqm

238 sites (141 boutiques)

Western Europe (France 779 806 sqm/113 sites)

1 381 200 sqm

215 sites

Eastern Europe 137 200 sqm

37 sites

Total Europe 1 518 500 sqm

252 sites (70 boutiques)

3.450.000 sqm 386 sites + 870 boutiques/distributors

REAL ESTATE PORTFOLIO

2014/03/28

7

REAL ESTATE PORTFOLIO OFFICES

WORLWIDE HEAD OFFICES & ADMINISTRATIVES SITES

530 000 28 500

160 000 7 900

sqm

sqm

WORK STATIONS

WORK STATIONS

Including FRANCE

2014/03/28

8

2 HOW TO ADD VALUE TO BUSINESS

2014/03/28

9

Property policy, as added value for the Divisions, business units & countries

Beauty : discrete, simple, timeless architecture

Performance : functionality, flexibility

costs control, cost avoidance schedule monitoring

Employees : risks control, « great place to work »

Environment : sustainable building, « great citizen of the World »

VALUES

Four values in line with Group values :

2014/03/28

10

RENEGOCIATION OF LEASES 2009-2013

Recurrent annual savings

∑ rents addressed

5 M€ 3,4 M€

37,8 M€ 18 M€

∑ rents 107,2 M€

- 15 %

- 7,8 %

Asset Management: Real estate data base and proactive renegociation of leases/cost avoidance and cost savings

PERFORMANCE

2014/03/28

11

CORPORATE SOCIAL RESPONSABILITY

Risk management (safety of employees, solidity, seismic and property audits etc.)

Setting real estate/corporate project guidelines in line with the Group’s business strategy

Taking into account the corporate social responsability where employees and communities are concerned:

• Sustainable design and construction • solidarity sourcing (responsible construction contracts)

2014/03/28

12

3 PROJECT & WORKPLACE MANAGEMENT

2014/03/28

13

Solid real estate teams with broad, generalist profession skillsets - métiers (incl. project management) - type of projects

A new way of steering projects: new boundaries are opening up in Europe and in France

• collaboration between HR and Real estate • collaboration with Purchasing • collaboration between Group Services Department and Real Estate

Department in project management to the service for internal customers-FRANCE

Outsourcing is increasing in pace and becoming more professional, and this benefits the performance of projects: outsourced project management, property advisers/ tenant representatives, brokers/prefered suppliers, notaries, lawyers, programmers, architects, engineering, space planners, economists/quantity surveyors etc.

PROJECT MANAGEMENT

2014/03/28

14

- company culture - flexible, functional working spaces - efficiency of the buildings, the surface areas, the investments - growth capacity - integration of new working methods - collaborative - IT and mobility tools - ergonomic/natural light/acoustic comfort/air quality - metiers & activities oriented - modern image - welcoming and keeping talents - integration of human resources and social relations topicsetc. - cross-fertilization between cultures and geographical zones

The transformation of tertiary work spaces is becoming an essential factor for employee performance and for optimisation of real estate portfolios.

OFFICES – WORK PLACE MANAGEMENT

2014/03/28

15

4 L’OREAL HEADQUARTERS MODERNIZATION IN CLICHY - FRANCE

2014/03/28

16

World Head-Quarters Espace, Clichy, France –

2004-2014

Jean-Michel WILMOTTE - Architect

Modernization and improvment of working environment: 6500 sqm offices refurbishment 5000 sqm services More international, open, innovative, collaborative, agile and flexible

2014/03/28

17 2014/03/28

L’Oréal worldwide headquarters : Clichy Campus

Bâtiment A

Bâtiment B

Bâtiment Logistique

Bâtiment Jardin

Atrium

Galerie

Plan du rez-de-chaussée

Governance

18

One sponsor : Jean-Paul Agon

One project leader : Bertrand de Senneville

Two heads :

Property : Frank Privé

Human Resources / Group services department + Campus : Bruno d’Alton

Dedicated project management :

Property : Rémi Lavaine

Human Resources + Campus : Sandra Naggar + Dominique Caudry

Technical support teams

Workshops (change management)

September 2013

Time scheduling

Opportunity: purchase of land 2004

Expression of needs 2004 - 2007

Architectural competition 2007

First Design 2008

Optimization 2009

Detail design and bidding 2010

Works 2011 - 2014

19

20

Business oriented: Participatory design

11 workshops (1 to 4 meetings per workshop) on different subjects: workplaces, meeting rooms, cafeteria, logistic area, sustainability, IT tools and solutions…

Employees + unions + staff representatives involvement

Users centric design

Needs collection

Direct observations

Prototyping and test pour some sensitives topics

2014/03/28

Building B

21

Flexibility of the building for an easy work organisation

In order to balance the existing shape of the building and increase flexibility in the working areas, the architect Wilmotte brief was to maximize:

Modularity of partitioning and technical equipment

HVAC , Electricity and IT on a regular grid

Optimize the use of floor depth for open spaces and common areas

Introduce transparency and daylight

2014/03/28

Building B

22

Functionality: redefinition of work environment

Building dedicated to the Consumer Products Division International Marketing teams (DMI) >250 New marketing workstations

2014/03/28

Building B

23

Workspaces: - Human scale open spaces - Bubble/Box – phone booth - Activity based design : wide range of spaces dedicated to collaborative or condidential activities - Customized meeting rooms for marketing teams

« Great place to work »

2014/03/28

24

« Great place to work »

2014/03/28

Work station of a « Directeur Marketing » Work station of a « Directeur d’Axe »

Salle métier (category meeting room) Product cart, workbench

25

« Great place to work »

Services to employees:

- Conference rooms - Auditorium - Business center - Cafeteria - New restaurant - Snack / Deli - Fitness center - Lounge - Concierge - IT Kiosk

2014/03/28

26

CORPORATE SOCIAL RESPONSABILITY &

SUSTAINABILITY

Sustainability: L’OREAL standards SI07 guideline

HQE Label

- Environmental & safety management of works

- Low environmental impact

- Safe materials; labelized wood products

- Solar hot water

- Creation of a garden (rainwater collection)

5000 sqm + 137 trees

- Green roof

- Energy savings by additional thermal

insulation

- Acoustic comfort

- Low consumption (water & electricity) and optimized

lighting

- Reduction of carbon footprint

- Solidarity sourcing: 21’000 work hours

2014/03/28