LOREAL_Registration_Document_2017

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

Towards ever more sustainable innovation

profile of 100% of its products by 2020. This is a major paradigm shift: from now on, whenever the Group’s teams invent or

Within the framework of its Sharing Beauty With All programme update a product, they take account not only of the product’s launched in 2013 (see section 3.2.1), one of the main performance and profitability, but also its contribution to commitments made by L’Oréal with regard to Sustainable sustainability. To do this, they act on at least one of the criteria Development consists in improving the environmental or social illustrated below:

INNOVATING SUSTAINABLY: 2017 RESULTS

1 0 0 % t 2 0 2 0 T A R G E T

76% 2017 RESULT

76% OF NEW OR UPDATED PRODUCTS ANALYSED HAVE AN IMPROVED ENVIRONMENTAL OR SOCIAL PROFILE (1) COMPARED WITH 82% IN 2016.

52% of new or updated products have an improved environmental profile thanks to a new formula with a reduced environmental footprint.

31% of new or updated products have an improved environmental profile thanks to a positive societal impact.

48% of new or updated products have an improved social/environmental profile thanks to a new formula including sustainably sourced renewable raw materials or raw materials respecting the principles of green chemistry.

55% of new or updated products have an improved environmental profile thanks to improved packaging.

(1) These are new products, i.e. products for which new formulas have been developed and which are produced for the first time in the Group’s plants or products for which packaging was changed/updated in 2017.

OPERATIONS, EXPERTISE AND 1.2.6. SERVICES CLOSE TO CONSUMERS The Operations Division harnesses the most specialised, agile, effective and connected technological expertise, from packaging design and product development, sourcing and production through to distribution of all the Group’s products, in order to enable the brands to offer consumers worldwide the most advanced cosmetic solutions. Assuming its fundamental responsibilities, the Operations Division guarantees consumers compliance with strict standards of quality, safety, security and societal and environmental responsibility all over the world.

At the forefront of new technologies to better serve consumers with increasing demands The Operations 4.0 programme aims to accelerate the digital transformation of Operations. We are embracing new technologies from end to end of the value chain to respond to new consumer demands. For product development, 3D printing of prototypes for products and/or functional components reduces development times and therefore brings products to the market faster. This fast prototyping allows to respond with agility to consumers' new beauty expectations and to keep pace with evolving cosmetic trends. Two new 3D printing labs were opened in 2017 at L’Oréal sites near Paris and New York. In production, the combination of technologies like 3D printing, artificial intelligence, connected objects ( Internet of Things , IoT), cobots (collaborative robots) and virtual reality are new tools to assist operators in production and to develop new, agile and more flexible production lines.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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