LOREAL_Registration_Document_2017

1 Presentation of the Group Integrated report A CLEAR STRATEGY : BEAUTY FOR ALL

RESEARCH FACILITIES AROUND THE WORLD

16 evaluation centres 20 research centres 6 regional hubs 3 global centres (France)

Research and Innovation budget

Research and Innovation Headcount

Number of patents

2015 2016 2017

794 850 877

2015 2016 2017

3,871 3,862 3,885

2015 2016 2017

497 473 498

New research centre in Brazil L'Oréal inaugurated its newest research centre in Rio de Janeiro in October 2017, based on a collaborative, digital approach open to the scientific ecosystem and fully committed to sustainable innovation. It aims to accelerate the development of products intended to meet the diversity of beauty expectations of Brazilian consumers. This state-of-the-art centre has a twofold mission: to make the best global innovations of L'Oréal relevant for local consumers and to act as a catalyst for global innovations in hair care, sun protection and hygiene, three categories where we can take inspiration from very demanding Brazilian consumers.

Openness and agility: a breath of fresh air The scientific and technical ecosystems in emerging non-beauty fields offer a rich seam of possibility for L’Oréal, whose research teams have entered into collaboration agreements with universities and scientific institutes ( Open Research ), formed partnerships with suppliers and start-ups ( Open Innovation ) and set up ties with the best subcontractors ( Open Development ). At the same time, Research is gradually rolling out a project-based model for faster and more agile working. This approach combines multidisciplinary teams, fast prototyping and interaction with consumers to develop the right products at the right time. By focusing on its major areas of expertise, R&I is steadily pursuing its policy of improving the performance of completely safe and exemplary products, refocusing on consumers, agility and speed, drawing on digital technologies, and ensuring that innovation remains its foremost concern.

REGISTRATION DOCUMENT / L'ORÉAL 2017

16