Annual General Meeting

JEAN-PAUL AGON
Chairman and Chief Executive Officer of L’Oréal

Watch the video highlights on loreal‑finance.com

Given the exceptional context related to the Covid-19 pandemic, the Annual General Meeting of L’Oréal shareholders was held on Tuesday 30 June 2020 behind closed doors at the Group’s head office in Clichy, and broadcast live on the www.loreal‑finance.com website.

“In 2019, L’Oréal experienced its highest growth in twelve years and outperformed a particularly dynamic market. Historically, our growth is the result of a winning strategy of concentrating our resources and our energy on the six growth drivers that are the most powerful in the market: Asia, luxury, dermocosmetics, skincare, e-commerce and Travel Retail. Although some of these drivers have been momentarily affected by the Covid-19 crisis, we are convinced they will return to growth, because they are driven by underlying trends.

The single most significant aspect of your Group’s performance in 2019 was that it made us strong and fully empowered as we entered this crisis. Right from day one, protection and solidarity have been the two watchwords guiding all our actions. Our absolute priority has been to take all the necessary measures to protect the health of our employees in each country in which we operate, and to ensure their economic security. Our second watchword has been solidarity. Solidarity with the healthcare workers to whom we owe so much, with our customers who we have supported, with those of our suppliers who are most fragile, and with the people who are most vulnerable.

I have been impressed by the extraordinary mobilisation of our teams in standing together with those who need it most, and thus making a tremendous contribution to the collective effort. It is also thanks to their commitment and resilience that we have successfully maintained our activity over the last few months. Despite the crisis, we are ready and able to maximise all growth opportunities, wherever they are, and to continue to win market share. This spirit of ambition and resolve is the key to everything we do. It enables us to continue to outperform the market in troubled times.

Everywhere we look, there are signs of an upturn in cosmetics consumption. In China, the first country to emerge from the crisis, the market is growing again, and I have no doubt that this trend will take hold worldwide. In 42 years at L’Oréal I have experienced and managed numerous crises; I know that the beauty market is highly resilient and will return to growth. The appetite for beauty products remains intact.

If we are traversing this crisis with a degree of serenity, that’s because L’Oréal was fully prepared to tackle it. Well prepared because your Group has strong and widely recognised brands that are reassuring for consumers.

And also well prepared because your Group is a leader in both digital and e-commerce, which is clearly the distribution channel of the 21^st century. We were also well prepared to cope with this kind of challenge because your Group has a healthy and solid financial situation. And lastly, we were well prepared because we are strategically concentrated and operationally decentralised. This is a huge advantage when taking measures tailored to the specifics of each country. It has enabled us to be quick and agile in making the most of all opportunities.

That is why I am resolutely confident in the future of your company and, despite the uncertainties the world is currently facing, I am absolutely convinced that the new decade will be exciting, inspiring and full of opportunities for L’Oréal. I am confident about the future of your company because our corporate mission statement is clear. Our sens of purpose, our values and our commitments have never been as relevant as they are today. They also provide a strong mainstay in the current unpredictable and changing environment.”