LOREAL_Registration_Document_2017

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

Product quality and safety: a priority Offering consumers the highest quality product is an absolute priority. The Group has set up a single product quality and safety management programme that applies to all its plants and subsidiaries around the world. In 2017, 90% of L’Oréal plants were ISO 9001 certified (Quality management) and 100% were ISO 22716 certified (Best cosmetics manufacturing practices). This quality management system guarantees industrial excellence and the quality of products with the same high

standards applicable everywhere in the world. It includes efficient production methods and stringent control standards: around 100 quality controls are carried out on a single product during the production cycle, from the input of raw materials and packaging to when products leave the plant en route to customers. Attesting to the effectiveness of the continuous quality improvement processes, the rate of consumer complaints improves continuously and stood at 52 complaints per million products sold in 2017.

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L’OREAL SELECTS ITS SUPPLIERS ACCORDING TO STRICT STANDARDS AND CRITERIA Relating to quality, safety, and social and environmental responsibility, which are applied worldwide and comply with its responsible purchasing policy

L’OREAL ENSURES CONSUMERS RECEIVE PERFORMING AND HIGH-QUALITY PRODUCTS By respecting the most stringent regulations and through its continuous improvement approach, which is at the heart of its quality policy

QUALITÉ L ’ O R É A L C E R T I F I É

~ 100 QUALITY CONTROLS FOR EACH COSMETIC PRODUCT Products meet the same standards of excellence and quality all over the world Identical processes are followed in the 41 plants, from the reception of raw materials, through the manufacturing of formulas and the packaging of finished products, until products are placed on the market

Operational excellence L’Oréal's industrial facilities are equipped with high-tech innovations, including robotic technologies, automation and cobotics (collaborative robots), for the flexibility required to meet the demands of the market and consumer needs: from high-productivity plants for large-scale production to agile plants producing limited editions. The Group is continuing to roll out its Operational Excellence System in all its plants to meet the challenges of a constantly changing world and go even further in adapting its industrial facilities to the needs of consumers. This process is based on the close involvement of all employees in technical and technological areas relating to safety, quality, ergonomics, environmental impact and production capacity, while at the same time controlling costs. L’Oréal received the Operational excellence award, launched by MEDEF (French entrepreneurs' network) in partnership with

France Qualité. The award recognises operational excellence and continuous improvement to guarantee product quality and safety.

At the heart of production: environmental protection

The Group’s environmental policy aims to roll out best practices in sustainable production to preserve resources. It spans energy efficiency, the use of renewable energy, optimisation of water consumption and recycling, and reduction of waste generation, amongst others. Results in 2017 once again demonstrated L'Oréal's capacity to decouple increased production (+33% since 2005) from environmental impact, with CO 2 emissions cut -73% in absolute terms since 2005, water consumption per finished product down -48% and waste generation per finished product reduced by -37%. It should be noted that 96% of residual waste was recovered in 2017, meaning that it was reused, recycled or used for energy recovery.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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