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1、2022 UNIVERSAL REGISTRATION DOCUMENTIncluding the Annual Financial Report,the Integrated Report and the Non-Financial Information StatementContents1Presentation of the Group Integrated Report*51.1The LOral Group:the fundamentals 61.2LOral,a value-creating model 141.32022 Financial Results and Corpor
2、ate Social Responsibility commitments361.4A tailored,agile and responsive organisation 501.5Internal Control andriskmanagement system512Corporate governance*532.1Framework for the implementation ofcorporategovernanceprinciples542.2Composition of the Board at31December2022572.3Organisation and modus
3、operandi oftheBoard ofDirectors722.4Remuneration of directors andcorporateofficers912.5Summary table of the recommendations ofthe AFEPMEDEF Code whichhave not beenapplied1142.6Summary statement of trading by directors and corporate officers inLOral shares in2022 1152.7Statutory Auditors Special Repo
4、rt onregulatedagreements1153Risk factors and risk management*1173.1Definition and objectives of Internal Control1183.2Components of the Internal Control andRiskManagement system 1193.3Preparing and processing accounting andfinancial information1243.4Vigilance Plan1263.5Risk factors and risk manageme
5、nt1414Social,environmental and societal responsibility*1514.1Introduction1524.2Main non-financial risks 1604.3Policies,performance indicators and results1624.4LOral for the Future:2022 results2314.5Methodological notes 2324.6Cross-reference tables,including NFIS andGHGbalance2394.7Statutory Auditors
6、 Reports24452022 Consolidated Financial Statements*2535.1Compared Consolidated Income Statements2545.2Consolidated Statement of Comprehensive Income2555.3Compared Consolidated Balance Sheets2565.4Consolidated Statements of Changes in Equity2575.5Compared Consolidated Statements ofCashFlows2595.6Note
7、s to the Consolidated Financial Statements2605.7Main consolidated companies at31December 20223105.8Statutory Auditors Report on the ConsolidatedFinancial Statements3136Parent company financial statements*3176.1Compared income statements3186.2Compared balance sheets3196.3Changes in shareholders equit
8、y3206.4Statements of cash flows3216.5Notes to the financial statements ofLOralS.A.3226.6Other information relating to the financial statements ofLOralS.A.3376.7Five-year financial summary3386.8Equity investments(main changes including shareholding thresholdchanges)3396.9Statutory Auditors Report on
9、the financial statements3407Share capital and stock market information3457.1Information relating to the Company3467.2Information concerning the share capital*3487.3Shareholder structure*3507.4Long-term incentive plans*3537.5The LOral share/the share market3587.6Information and shareholder dialogue p
10、olicy3638Annual General Meeting3658.1Draft resolutions and Report oftheBoard ofDirectors totheOrdinary and Extraordinary General Meeting tobeheldon Friday21April20233668.2Statutory Auditors Report3859Appendices3879.1Statutory Auditors*3889.2Historical financial information includedbyreference 3889.3
11、Declaration by the person responsible fortheUniversal Registration Document andtheAnnual Financial Report*3889.4Cross-reference table with the Universal Registration Document3899.5Annual Financial Report cross-reference table3919.6Cross-reference table withtheAMFtables ontheremuneration ofdirectors
12、andcorporate officers3919.7Management Report cross-reference table3929.8Glossary 394Detailed chapter contents can be found atthe beginning of each chapter.*This information forms an integral part of the AnnualFinancial Report as provided in the article L.451-1-2of the French Monetary and Financial C
13、ode.NFPSNFPSUniversalRegistrationDocument2022INCLUDING THE ANNUAL FINANCIAL REPORT THE INTEGRATED REPORT AND THE NON-FINANCIAL INFORMATION STATEMENTThe Universal Registration Document has been filed on March 16,2023 with the French Financial Markets Authority(AMF),as competent authority under Regula
14、tion(EU)2017/1129,without prior approval pursuant to article 9 of saidregulation.The Universal Registration Document may be used for the purposes of an offer to the public of securities or admissionof securities to trading on a regulated market if completed by a securities note and,if applicable,a s
15、ummary andany amendments to the Universal Registration Document.Thewhole is approved by the AMF in accordance withRegulation(EU)2017/1129.This Universal Registration Document,including the Annual Financial Report,is a reproduction of the official versionwhich has been prepared in ESEF format and is
16、available on the issuers websitewww.loreal-.This document,available onwww.loreal-,is a free translation of the original 2022 Universal RegistrationDocument issued in French Language and is provided solely for information purposes.In case of discrepancy betweenthe French and English versions,the Fren
17、ch language version of the Universal Registration Document shall prevail.In a turbulent environment,LOral showed outstanding agility and overcame a series ofchallenges thanks to the assets that make it strong.The first of these assets is our people:the LOralians.They are the secret to our companys s
18、uccess.Theirdetermination to go that extra mile and their spirit of solidarity were,once again,exemplary.They have my utmost admiration.Nicolas Hieronimus inspiring leadership was ofcourse crucial in guiding teams and unlocking theimpressive growth momentum in our sales,marketshares and results.He a
19、nd the Executive Committee succeeded in swiftly rising to challenges while seizing every opportunity in an ever-changing market.Thecomplementarity of our roles as Chairman andCEO is crucial in pursuing LOrals ambitious andharmonious development.I know our people are utterly committed to fighting for
20、a more sustainable planet and a more caring world.As Chairman,I will always ensure LOral continues to embody and inspire change with perseverance,ambition and sincerity.Dual financial and social excellence will always be atthe heart of our business model.On behalf of the Board of Directors,I would l
21、ike tothank and congratulate our CEO,the members of the Executive Committee and all our employees around the world for their remarkable achievements.LOrals highly demanding governance is also oneof its fundamental assets.With their wide-ranging expertise and fruitful exchanges,our directors foster a
22、long-term vision and set a clear course for the Group.This year,the Board focused on strategies in Research&Innovation,Beauty Tech and Green Sciences,as well as our corporate social and environmental responsibility.Another key asset is the loyalty of our shareholders,withwhom the Group has a very cl
23、ose relationship.Inthis respect,2022 was a year to remember in terms ofThe many awards received by LOral for the quality of its financial communications.Finally,our founding principles never waver.They give us the stability to weather any storm.Underpinned by entrepreneurial spirit,boldness,imaginat
24、ion and ethics,LOral is full of resources,thrives on its diversity andisconcerned about the world we live in.All of these assets fill me with immense confidence inthe future.We are perfectly prepared to create the best of beauty.Our market is solid,our value creation model isbalanced and virtuous.Ou
25、r governance is robust and vigilant.Our teams are talented and determined.Our brands are strong and inclusive.Innovation is inourDNA and greatly augmented by our Beauty Tech and digital edge.More than ever,LOral is driven by tremendous energy.“More than ever,LOral is driven by tremendous energy”JEAN
26、-PAUL AGON Chairman of the Board of Directors of LOral2LORAL UNIVERSAL REGISTRATION DOCUMENT 20222022 was another year of remarkable,balanced and responsible performance.Reinforcing its position as the worlds leading beauty company,LOral grew 1.8times faster than the market,with+10.9%like-for-like g
27、rowth and+18.5%reported,outperforming themarketacross all Divisions,all geographic Zones and all categories for the second year in a row.The LOral engine fired on all cylinders andtheGroup delivered another strong operating margin improvement.In line with our dual ambition ofeconomic and corporate p
28、erformance,LOral hascontinued to deliver strong environmental andsocial performance.Our teams around the world are at the heart of this tremendous collective success.Over the past three years,in a context ofunprecedented poly-crisis,we have continued totransform ourselves and make our business model
29、 more virtuous.Leveraging our Research&Innovation capacity and strong brands,as well as our digital leadership,we have widened the gap with themarket:we have emerged stronger from 2022 andare confident in our ability to achieve another year ofgrowth in sales and profits in 2023.Looking forward,we al
30、ready see the dawn of a new era,multipolar and fragmented,augmented by Tech and Artificial Intelligence,with the highest expectations in terms of sustainability,purpose and cultural diversity.LOral is uniquely positioned to win in this new world and evolve from beauty for all to beauty for each,by l
31、everaging its strengths:an unrivalled portfolio of desirable brands;our innovation leadership tochampion Beauty Tech and stimulate consumers appetite for beauty with cutting-edge products and services;our industrial agility and our multipolar model strategically centralised and operationally decentr
32、alised,with a strong entrepreneurial spirit.We are confident that the beauty market will grow yet further and that we will outperform,thanks to ourunique culture.LOral is ready for a new era!“LOral has emerged stronger from 2022,we are fit for the future”NICOLAS HIERONIMUS Chief Executive Officer of
33、 LOralWatch the full interview with the CEO by scanning this QR code or on LORAL UNIVERSAL REGISTRATION DOCUMENT 202234LORAL UNIVERSAL REGISTRATION DOCUMENT 2022CHAPITRE 1Presentation of the Group Integrated Report*1.1The LOral Group:the fundamentals 61.1.1Our Sense of Purpose(raison dtre)61.1.2The
34、strategy and fundamentals of LOral71.1.3Stable governance91.2LOral,a value-creating model 141.2.1Business model141.2.2Value chain161.2.3A global business focused on beauty181.2.4The beauty market,resilient in a turbulent macroeconomic climate201.2.5Key figures211.2.6Significant dates in the Groups d
35、evelopment251.2.7Ongoing transformation to meet new aspirations261.2.8The mission of the Research department:responsible,inclusiveinnovation,in absolute safety271.2.9Operations,specialised expertise and core values to contribute to growth301.32022 Financial Results and Corporate Social Responsibilit
36、y commitments361.3.12022 Results361.3.2Corporate Social Responsibility(CSR):sharedandlasting growth461.4A tailored,agile and responsive organisation 501.4.1LOral S.A.501.4.2Operational Divisions501.4.3Geographic zones501.4.4Functional Divisions501.5Internal Control andriskmanagement system51*This in
37、formation forms an intregral part of the Annual Financial Report as provided in Article L.451-1-2 of the French Monetary and Financial code.NFPS151This chapter presents the wellbalanced business model of the LOral Group,its strategicorientations,its 2022 results,itsnon-financial performance,and its
38、relationships with its stakeholders,particularly in the context of the LOral for the Future sustainability programme(1).1.1.The LOral Group:the fundamentals 1.1.1.Our Sense of Purpose(raison dtre)The desire for beauty has existed since the beginning of humanity.It is a universal aspiration which cro
39、sses time,countries,and cultures.Beauty is a powerful force that moves us.We know that beauty is more than just looking good.Beauty gives us confidence in who we are,in who we want to be,and in our relationships with others.For over a century we have been dedicated to one sole vocation:creating beau
40、ty.We remain true to the pioneering spirit of our founder and enjoy the unwavering support of his family,who have always accompanied our development.Our goal is to offer each and every person around the world the best of beauty in terms of quality,efficiency,safety,sincerity and responsibilityto sat
41、isfy all beauty needs and desires in their infinite diversity.Because beauty is a permanent quest,we harness the power of our innovation to continually enhance the performance of our products and services.Because we value diversity,we leverage each of our brands to celebrate all expressions of beaut
42、y.Because we strive to be exemplary with a long-term vision,we anchor our actions in our strong values and demanding ethical principles.And because we are the global leader in beauty,we are aware that everything we do can have a meaningful impact.Therefore:We act to shape the future of beauty by lev
43、eraging the best of science and technology,increasingly inspired by nature.We act to drive social innovation by offering the best working conditions,training and social protection for our employees.We act to build an enterprise with inclusivity at its heart by ensuring we are as diverse as the consu
44、mers we serve.We act to nurture lasting partnerships with our clients and suppliers based on mutual trust and collaboration.We act to create value for all our shareholders by sustaining a robust business model.We act to champion the cause of women and to strengthen the communities with which we enga
45、ge.We act to protect the beauty of the planetby fighting climate change,respecting biodiversity and preserving natural resources.At LOral,we share a common purpose to:Create the beauty that moves the world.(1)See section 1.3.2.6LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTE
46、GRATED REPORTThe LOral Group:the fundamentals 1LOrals Sense of Purpose(raison dtre)is a core principle forthe Group,to see ourselves as a high-performing,committed,responsible,inclusive company showing solidarity in decadesto come.LOrals raison dtre is included in the strategiesdefined by its Board
47、of Directors and its business model.LOrals sense of purpose was developed following the workimplemented over almost two years,initiated and driven atthe highest level by Mr Jean-Paul Agon and Mr NicolasHieronimus,as well as several members of the ExecutiveCommittee.LOrals raison dtre was the result
48、of dialogueswith the Groups employees in three of its key countries(France,the United States and China)and many externalstakeholders,including consumers.The progress madewas discussed several times in the Executive Committee.For LOral,the aim was to collect and formalise itscontribution to the world
49、 as a company,its values and itscommitments in one document.This raison dtre was approved on 6 February 2020 by theBoard of Directors,who incorporated it into their ManagementReport published in the 2019 Universal Registration Documentand presented to the Annual General Meeting of Shareholderson 30J
50、une 2020.In 2022,LOral received the Award for ESG Purpose andCommitments at the 2022 General Meeting and GenderBalance Awards ceremony,organised by the Institut duCapitalisme Responsable.A single sentence epitomises LOrals Sense of Purpose:“Create the beauty that moves the world.”It is defined incon
51、crete actions made to consumers,employees,clients,suppliers,shareholders,service providers and communities.LOral is committed to fighting climate change,byrespecting biodiversity and preserving natural resources,andto championing the cause of women.The majority of theGroups brands have supported the
52、ir cause since 2018,infields such as combating violence against women with the“Abuse is Not Love”programme from Yves Saint LaurentBeauty,with LOral Paris backing the Stand Up campaignagainst street harassment and Lancme helping women getaccess to reading with the Write her Future programme or inthe
53、environmental field with Biotherms(1)Water Loversprogramme.In its Management Report,dislosed in the present document,LOrals Board of Directors reports on the implementation ofthe commitments included in its raison dtre,and on theprogress towards the goals set:economic performance is inseparable from
54、 corporatesocial responsibility performance.The results of the Groupsnon-financial performance,which are reviewed by externalauditors along with its financial performance,reflect theachievements of LOral arising from its sense of purpose.Chapter 4 reports on the social,environmental and societalpoli
55、cies and progress,inclusion and ethics within theLOral for the Future programme covering the Groupscommitments to sustainable development;LOral also presents its progress and achievements innonfinancial areas through its annual reporting made tothe United Nations Global Compact;this chapter also rep
56、orts on the Groups financialperformance,particularly through its business model(seesection1.2.);andthe Groups CSR performance is one of the factorsconsidered in determining the variable portion of theremuneration of LOrals executive corporate officers(seesection 2.4.)and the Groups principal executi
57、ves(seesection 4.1.).1.1.2.The strategy and fundamentals of LOral1.A clear vision and strategyLOral has defined a clear vision that is broken down into twopoints:its Sense of Purpose(raison dtre),which is detailedabove,and Beauty for All.LOral aims to offer women andmen around the world the best in
58、cosmetics in terms of quality,effectiveness,safety,sincerity and responsibility in order tomeet all their needs and all their beauty wishes in their infinitediversity.More than ever,LOrals vision takes on its fullmeaning and represents a strong anchor in this increasinglyunpredictable and complex en
59、vironment.LOrals strategy is Glocalisation,meaning the globalisation ofits brands with a detailed understanding and respect for localdifferences,with the aim of winning and satisfying 1.5billionconsumers.Thegoal is to offer beauty by responding to thespecific aspirations of consumers in every region
60、 of the world.In contrast to standardisation,it is based on careful attentionto consumers and a deep respect for their differences.2.One single business:beauty,nothingbutbeauty and all beautyFor over a century,LOral has carried out a single business:creating beauty.Cosmetics are rich in meaning.They
61、 alloweach person to boost their self-confidence,express theirpersonality and open up to others.Focusing on a single business represents a major competitiveadvantage for LOral.The Group boasts more than onehundred years of cosmetic expertise,talented specialists andan in-depth knowledge of consumers
62、.This is built on a detailedknowledge of beauty cultures,needs,desires and aspirations.LOral covers all continents across more than 150 countries,all product categories(2),all distribution channels includingecommerce and Travel Retail,and all price segments.By focusing its energy on a single busines
63、s,along with anobsession for seizing“what is new and fresh”(“Saisir ce quicommence”),LOral is able to identify new consumer trendsand respond rapidly.The digital revolution in particular,in perfect alignment with“social beauty”,connected andshared,acts to speed up the development of the beautymarket
64、 driven by economic,technological,demographicandsociological developments.(1)In 2022 Biotherm launched an ambitious mission to use yacht races,including the Route du Rhum 2022,to raise public awareness of the threats affecting the oceans.(2)Hair colour,skincare,sun care,make-up,perfumes,hygiene prod
65、ucts,etc.LORAL UNIVERSAL REGISTRATION DOCUMENT 20227PRESENTATION OF THE GROUP INTEGRATED REPORTThe LOral Group:the fundamentals13.The challenge of innovation:thestrengthofResearch,Innovation(R&I)andTechnologyInnovation has been and remains the core of theLOral model:the Group was born from a breakth
66、roughinnovation safe hair dye invented by its founder EugneSchueller.LOral believes that beauty happens when scienceand creativity come together to meet the needs ofconsumers who expect new experiences over and aboveproducts and services.The discoveries of R&I,as well as theunique intuition and crea
67、tivity of the marketing teams,meanthat products are constantly evolving to meet consumersneeds.Because LOral records a significant share of its saleswith new products every year,the Group has a duty to bethechampion of cosmetics innovation.On the one hand,the beauty of the future is now focused onGr
68、een Sciences that reconcile efficiency,naturalness andsustainability to give the Groups products,formulas orpackaging a competitive advantage;and,on the otherhand,on Beauty Tech to enhance science via cutting-edgetechnologies on a large scale and to offer unparalleledbeauty experiences.Innovation is
69、 at the heart of the modeland,coupled with technology,is a driving force for growthand discovery of new areas of beauty.Data,artificialintelligence,robotics and nanotechnologies will strengthenand speed up the Groups innovations to help make it achampion of the Beauty Tech.LOral invents the beauty o
70、fthe future while becoming the company of the future.4.Marketing of brands,products,servicesand of the customer experienceOver the next decade,the cosmetics market will becomemore digital and competitive,with the arrival of new playersfrom new markets and other industries such as fashion,luxuryand e
71、-commerce.In this context,LOrals expertise andexcellence in creating and developing major brands that areprized by consumers all over the world will be essential assets.LOral has always been able to create star products,frombrand new franchise launches to innovations that evolveinto“icons”over time.
72、The skills of the marketing departmentsfor our brands and laboratories are key assets in thecollaborative,agile design of new products,services andcustomer experiences.5.Adapting and seizing every opportunity through multi-polar growth in each region and division LOrals global footprint enables it t
73、o steer its growth bycontinuously adapting to the context it faces,seizeopportunities as they arise and minimise exposure to areaswhere business is slower.In terms of regions,China is a majorcontributor for the Group and is set to become the leadingbeauty market;its consumers represent a significant
74、 sourceof growth,both in the local market and in Travel Retail.Then,North America,currently the premier beauty market,isboosted by its demographics,the reinforcement of ethnicdiversity,and the ongoing acceleration of e-commerce.Thethird growth accelerator for the Group is that of emergingmarkets,par
75、ticularly South-East Asia,India and the MiddleEast,with a population of 3 billion;these markets are young,connected and hungry for beauty products.Although Europeremains the Groups core region as well as its historic cradle,LOral is also expected to accelerate its growth in Africa andcontinue its ex
76、pansion in other regions of the world.The Groups four divisions enable it to meet all consumerexpectations.The Luxe Division is now the Groups primarydivision,responding to the desire for quality and experience inthe upper-middle classes;the Consumer Products Division,theleading division in terms of
77、 units sold,is the main tool forconquering emerging markets;the Dermatological BeautyDivision(1)responds to increasingly high expectations in terms ofskincare and has more than doubled in size in five years;finally,the Professional Products Division enhances thesophistication of the market and the s
78、alon sector.6.The dual goal:economic andcorporate excellence tocreatelasting value for allFor LOral,the economic and financial performance is notsufficient.Because there will be no economic growth withoutsustainability in the future,LOral has set itself the dual goalof excellence,in both the economi
79、c and societal domains.It will be the condition for its success and its long-termexistence.Because LOral is the global leader in beauty,ithas the duty to contribute to the beauty of the planet andbe a champion of CSR.And it is because LOral is a social,environmental,societal and ethical leader that
80、it will achievegreater performance in the future.The two performances gohand in hand and mutually enhance each other,as LOralhas demonstrated to date.7.Prioritising people and social harmony In keeping with the legacy of our founder,Eugne Schueller,individuals and social harmony are at the heart of
81、LOral andmust remain our priority in a climate where attracting talent isbecoming increasingly complex.The Groups values havealways been humanist in nature.In entrepreneurial culture,passionate and committed teams are the strategic intangibleassets that always have and always will make all the diffe
82、rence.LOrals human and social project constitutes both thestrength and the appeal of its model in an ever-changingworld.It is based around two priorities:the attention paidto developing each employee through ongoing training,accelerated career paths or international careers;and aunique social model
83、that combines competitive socialperformance and shared growth(profit-sharing,incentives,employee shareholding plan etc.).For more than 15 years,LOral has been committed todiversity,equity and inclusion and recognised for its actionsworldwide.The Groups policy in this area is further developedin sect
84、ion 4.3.2.6.(1)“Dermatological Beauty”Division,as announced on February 10,2023.Previously named“Active Cosmetics”Division.8LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTThe LOral Group:the fundamentals 11.1.3.Stable governanceThe stability of the Groups govern
85、ance in a changing world makes it possible to work towards long-term objectives and to ensureregular growth.1.1.3.1.Loyal shareholders,stable capital structureShareholders as at 31 December 2022(1)Consisting,in addition of Ms Franoise Bettencourt Meyers,of Mr Jean-Pierre Meyers,MrJean-Victor Meyers
86、and Mr Nicolas Meyers,along with Tthys SAS.(2)Concerns the current and former employees of LOral.The percentage also includes the performance shares granted in accordance with Article L.2251971 of theFrench Commercial Code.Including 1.02%of the share capital as part of the LOral Employee Savings Pla
87、n and employee investment fund as defined byArticleL.225102 ofthe French Commercial Code.1.1.3.2.A balanced and committed Board ofDirectors,which fully plays itsrole ofreflection and strategic impetusThe Board of Directors defines the strategic orientations ofLOral and monitors its implementation,in
88、 accordance withits corporate interest,taking the social and environmentalchallenges of its business activity into consideration.It overseesthe management of both the financial and non-financialaspects,and ensures the quality of the information providedtoshareholders and to the market.The compositio
89、n of LOrals Board makes it possible to takeinto account the specific nature of its shareholding structurewhile guaranteeing the interests of all its stakeholders.At 31 December 2022,the Board of Directors comprised16members:the Chairman,MrJean-Paul Agon;the Chief Executive Officer,MrNicolas Hieronim
90、us;three Directors(one of whom is the Boards Vice-Chairman)from the Bettencourt Meyers family,which owns 34.70%of the share capital Ms Franoise Bettencourt Meyers,MrJean-Victor Meyers and Mr Nicolas Meyers;two Directors(one of whom is the Boards Vice-Chairman)linked to Nestl,which owns 20.11%of the
91、share capital MrPaul Bulcke and Ms Batrice Guillaume-Grabisch;seven independent Directors:Ms Sophie Bellon,Ms Fabienne Dulac,Ms Beln Garijo,Ms Ilham Kadri,MsVirginie Morgon,MrPatrice Caine and MrAlexandreRicard.50%of the Directors are therefore independent(7 out of 14excluding the Directors represen
92、ting the employees);andtwo Directors representing the employees:Mr Thierry Hameland Mr Benny de Vlieger.The Board takes steps to ensure that the Directors come fromdifferent backgrounds,that most of them have internationalexperience acquired in groups with a global dimension,andthat they have comple
93、mentary skills(see section 2.2.1.2.).Thediversity of skills and expertise on the Board enables it tounderstand rapidly and in detail the development challengesthat LOral faces.LOral is attentive to compliance with the principle ofbalanced gender representation on the Board:50%of itsmembers are women
94、(1)and three Board Committees out of fourare chaired by women.(1)Excluding Directors representing the employees.INTERNATIONAL INSTITUTIONAL INVESTORS29.94%MS.FRANOISE BETTENCOURT MEYERS AND HER FAMILY(1)34.70%INDIVIDUAL SHAREHOLDERS5.97%NESTL20.11%FRENCH INSTITUTIONAL INVESTORS7.42%EMPLOYEES(2)1.86%
95、LORAL UNIVERSAL REGISTRATION DOCUMENT 20229PRESENTATION OF THE GROUP INTEGRATED REPORTThe LOral Group:the fundamentals1Composition of the Board at 31 December 2022Board CommitteesAgeFemale/MaleNationalityNo.of offi cesin listedcompanies*IndependenceInitial dateof appointmentExpiry date of term of of
96、fi ce(AGM)Years of serviceon the BoardStrategy andSustainabilityAuditHR and RemunerationNominationsand GovernanceChairmanMr Jean-Paul Agon66MFrench25/04/2006202616CChief Executive Offi cerMr NicolasHieronimus58MFrench20/04/202120251Franoise Bettencourt Meyers and her familyMs Franoise Bettencourt Me
97、yersVice-Chairwoman69FFrench12/06/1997202525 Mr Jean-Victor Meyers36MFrench13/02/2012202410Mr Nicolas Meyers34MFrench30/06/202020242Directors linked to NestlMr Paul Bulcke*Vice-Chairman68MBelgianSwiss120/04/201720255Ms Batrice Guillaume-Grabisch58FFrench20/04/201620246Independent directorsMs Sophie
98、Bellon61FFrench122/04/201520237CCMr Patrice Caine52MFrench117/04/201820264Ms Fabienne Dulac55FFrench118/04/201920233Ms Beln Garijo62FSpanish217/04/201420268Ms Ilham Kadri53FFrenchMoroccan230/06/202020242Ms Virginie Morgon53FFrench126/04/201320259CMr AlexandreRicard50MFrench120/04/202120251Directors
99、representing employeesMr Thierry Hamel68MFrench21/04/20222026 1Mr Benny deVlieger58MBelgian21/04/20222026 250 billion euros(1)After 2021,a year that saw points of sale reopen almost completely and online sales increase,2022 was a turbulent year,but oneduring which the beauty market was able to adapt
100、,reaffirming its sector position as strong and agile in the face of the disruptionsurrounding it.Beyond North Asia,which was affected by Chinas zero-Covid policy,there was significant growth in all Zones,particularly in SAPMENA SSA and Latin America,which experienced double-digit growth.The main wor
101、ldwide players2021 sales in billions of US$(2)In 2021,the top ten cosmetics companies generated aggregate sales of$137.96 billion,or 58.6%of the total revenue of WWDBeautys top 100.(1)Source:LOral estimates of the global cosmetics market based on net manufacturer prices.Excluding soap,toothpaste,raz
102、ors and blades.At constant exchange rates.(2)Source:Beautys top 100,WWD,May 2022,based on 2021 sales.5%4%5%4%3%4%5%5%3%1%4%4%5%4%4%4%4%5%6%5%20002001 2002 20032004 2005 2006 2007 200820092010 2011 20122013 20142015 20162017 20%2020-8%8%2021BY GEOGRAPHIC ZONEBY PRODUCT CATEGORYNORTH ASIA 3
103、2%NORTH AMERICA 28%EUROPE 22%LATIN AMERICA 8%SAPMENA-SSA 10%SKINCARE 41%HAIRCARE 22%MAKE-UP 16%FRAGRANCE 11%HYGIENE PRODUCTS 10%38.223.817.714.69.27.87.57.27.05.0LORALUNILEVERESTELAUDERPROCTER&GAMBLESHISEIDOCOTYBEIERSDORFCHANELLVMHNATURA&CO20LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF
104、THE GROUP INTEGRATED REPORTLOral,a value-creating model11.2.5.Key figuresConsolidated sales(millions)Breakdown of sales(millions)Operating profit(millions)Net profit excluding nonrecurring items(2)attributable to the owners ofthe company(millions)Earnings per share(3)()32,28827,99238,2622
105、LORAL LUXE14,638.1ACTIVECOSMETICS5,124.5BY OPERATIONAL DIVISIONBY BUSINESS SEGMENTBY CURRENCYBY GEOGRAPHIC ZONENORTH ASIA11,321.4LATIN AMERICA2,376.2SAPMENA-SSA2,962.4EUROPE 11,436.7NORTH AMERICA10,164.0SKINCARE15,344.3MAKE-UP7,738.8HAIR COLOURANTS3,361.6HAIRCARE5,750.2PERFUMES4,546.2OTHER(1)1,519.5
106、OTHER CURRENCIES 33.9%EURO 18.5%POUND 3.9%CHINESE YUAN 18.8%DOLLAR 24.9%PROFESSIONALPRODUCTS4,476.8CONSUMERPRODUCTS14,021.3(1)“Other”includes hygiene products and sales made by American distributors with non-Group brands.2020202120225,2096,1606,05419.5%18.6%Operating margin as a%of sales.7.308.8211.
107、264,0994,9397,457202020221202219.1%(2)Non-recurring items primarily include capital gains or losses on disposals of long-term assets,impairment of assets,restructuring costs and clearly identified,non-recurring income and expense items that are material to the consolidated financial state
108、ments.See note 11.4 of the Consolidated financial statements.(3)Diluted earnings per share,based on net profit,excluding non-recurring items,afer non-controlling interests.LORAL UNIVERSAL REGISTRATION DOCUMENT 202221PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1A solid bala
109、nce sheet(millions)Net debt 31.12.2020 31.12.2021 31.12.2022Net cash position=Net cash or net debt(millions)(1)+3,859.4(2)-3,586.4(2)-3,033.2Net debt ratio(Net financial position/Equity)n/a 15.2%11%(1)Net cash or net debt=cash and cash equivalents current and noncurrentfinancial debt.(2)Including IF
110、RS 16 lease debt for 2,035.9 million in 2019,1,681.6 million in 2020,1,670.3 million in 2021 and 1,620.5 million in 2022.Short-term and long-term ratingsShort-term ratingLong-term ratingA1+SEPTEMBER 2022AA SEPTEMBER 2022PRIME-1 MARCH 2022AA1 MARCH 2022202220212020NON-CURRENT ASSETSTOTAL ASSETS AND L
111、IABILITIESTOTAL ASSETS AND LIABILITIESCURRENT ASSETS202220212020CURRENT LIABILITIESASSETSEQUITY&LIABILITIESINCLUDING CASHAND CASH EQUIVALENTSHAREHOLDERS EQUITYNON CURRENT LIABILITIESDEBTS46,844.229,046.814,560.16,405.943,606.928,998.82,174.72,546.59,886.932,794.514,049.62,617.746,844.227,186.55,650.
112、912,300.01,706.843,606.943,013.423,592.66,300.311,541.01,579.543,013.430,937.612,075.82,713.822LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1Change in the LOral share price compared tothe CAC 40 index(from 27 February 2013 to 28Febr
113、uary 2023)Steady increase in dividend per share()(1)The LOral Board of Directors met on 12 May 2020 and,in the exceptionalcontext of the Covid-19 health crisis,decided to abandon the planned 10.4%dividend increase and to propose a dividend of 3.85 to the Annual GeneralMeeting,identical to the amount
114、 paid in 2019.(2)Dividend proposed to the Annual General Meeting of 21 April 2023.10-year evolution of a portfolio of approximately 15,000 invested in LOral shares withreinvestmentof dividends Date of transactionNature of transactionInvestment()Income()Number ofsharesafter the transaction31.12.2012P
115、urchase of 143 shares at 104.90 15,000.714310.05.2013Dividend:2.30 per share328.90143Reinvestment:purchase of 3 shares at 134.05 402.1514605.05.2014Dividend:2.50 per share365.00146Reinvestment:purchase of 3 shares at 123.90 371.7014907.05.2015Dividend:2.70 per share402.30149Reinvestment:purchase of
116、3 shares at 168.60 505.8015203.05.2016Dividend:3.10 per share471.20152Reinvestment:purchase of 3 shares at 157.80 473.4015503.05.2017Dividend:3.30 per share511.50155Reinvestment:purchase of 3 shares at 184.55 553.6515827.04.2018Dividend:3.55 per share560.90158Reinvestment:purchase of 3 shares at 196
117、.90 590.7016130.04.2019Dividend:3.85 per share619.85161Reinvestment:purchase of 3 shares at 245.10 735.3016407.07.2020Dividend:3.85 per share631.40164Reinvestment:purchase of 3 shares at 288.30 864.9016729.04.2021Dividend:4.00 per share668.00167Reinvestment:purchase of 2 shares at 343.10 686.2016929
118、.04.2022Dividend:4.80 per share811.2016930.12.2022Reinvestment:purchase of 3 shares at 348.90 1,046.70172TOTAL21,231.205,370.25TOTAL NET INVESTMENT15,860.94Portfolio value at 31 December 2022(172 shares at 333.6,price at 30 December 2022(1):57,379.The initial capital has thus been multiplied by 3.8
119、over 10 years(10-year inflation rate=12.99%Source:INSEE)and the finalcapital is 3.6 times the total net investment.The Total Shareholder Return of the investment is thus 14%peryear(assuming that the shares are sold on 30 December 2022,excluding tax on capital gains).NOTE:Any income tax that may be p
120、aid by the investor asaresult of the successive dividend payments is not taken intoaccount.(1)The last trading day of 2022 is Friday,December 30,2022.20000222023LORALCAC 40 INDEXED TO LORAL375.1 500300350400450500113.45 3,691.57,267.9202120071.3820081.4420
121、091.5020101.8020112.0020153.1020163.3020173.5520224.002.50201320142.7020122.3020193.85(1)20183.85x 4.3in 16 years20204.806.00(2)LORAL UNIVERSAL REGISTRATION DOCUMENT 202223PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1LOral recognised for its non-financial performanceCDP:AA
122、A for the seventh consecutive yearGlobal leader in sustainable development for our actions on combating climate change,protecting forestry and sustainable water management.The CDP is a not-for-profit organisation that encourages companies to publish their environmental data and assesses their sustai
123、nable development performance and their transparency.S&P Global Ratings:85/100The ESG assessment reflects the Groups ability todeliver strong performance through thecommitment of LOrals senior managers toanambitious sustainability strategy.The ESG rating issued by S&P Global Ratings assesses acompan
124、ys ability to prepare for future risks and opportunities in terms of sustainable development.EcoVadis:83/100 Platinum AwardThe Group was awarded the Platinum award byEcoVadis.Figuring in the top 1%of companies assessed by the agency,LOral was recognised foritsnon-financial performance in four major
125、areas:Ethics,the Environment,Social&Human Rights,andResponsible Purchasing.EcoVadis is one of the worlds foremost non-financial rating agencies.This assessment,which is based oninternational standards,focuses on the extent towhich CSR principles have been integrated intoacompanys actions and practic
126、es.Ethisphere:13th yearIn 2022,LOral was recognised for the 13th time asone of the worlds most ethical companies.TheGroup is therefore one of the companies withthemost advanced business ethics practices.The Ethisphere Institute,a world leader in the definitionand promotion of ethical standards,recog
127、nises companies that have demonstrated their commitment to ethical business practices throughprogrammes that have a positive impact onemployees,communities and,more broadly,onstakeholders,and that contribute to sustainable and profitable long-term commercial performance.Bloomberg Gender-Equality Ind
128、exLOral was recognized for the fifth consecutive time by the Bloomberg Gender-Equality Index,whichacknowledges the most advanced companies in the area of gender equality among 418 companies evaluated in 45 countries.The Bloomberg Gender-Equality Index recognises themost advanced companies in the are
129、a ofgenderequality.Universum:5th placeIn 2022,LOral was ranked#5 in the world(business schools),making it the first EU multinational company in the Top 5.The Universum“Worlds Most Attractive Employers”ranking compiles the results of surveys conducted in10countries:The United States,China,Germany,the
130、United Kingdom,France,India,Italy,Brazil,Russia and Canada.24LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model11.2.6.Significant dates in the Groups development1928 1929 Monsavon Imdia,the first rapid oxidative hair dye1964 1963 1960 19
131、53 1935 1934 Lancme Listing of LOral on the Paris Stock Exchange Launch of Elnett hairspray Cosmair becomes LOrals agent in the United States Ambre Solaire,the first filtering sun protection oil DOP1965 1970 1973 1979 1981 1988 Laboratoires Garnier Biotherm Gemey,entry into consumer make-up First ep
132、idermis model reconstructed by LOrals Research department Creation of Laboratoires dermatologiques Galderma Armani licence2000 1998-2000 1996 1994 1993 1989 Creation of the Chinese subsidiary Softsheen and Carson Maybelline Acquisition of US agent Cosmair Redken 5th Avenue La Roche-Posay2003 2004 20
133、06 2007 2008 2009 LOral acquires majority control of Shu Uemura Absorption of holding company Gesparal The Body Shop Creation of the Fondation LOral YSL Beaut LOral celebrates its 100-year anniversary and has set a goal to attract one billion new consumers2016 2015 2014 2013 2012 2010 IT Cosmetics N
134、iely Cosmticos LOral/Nestl Strategic Agreement Magic Holdings and NYX Professional Makeup Disposal of Galderma Announcement of the Sharing Beauty with All programme for 2020 and the Share&Care programme Urban Decay Essie Cosmetics 2017 2018 2019 2020 2021 CeraVe Disposal of The Body Shop Modiface,Ar
135、mani(licence renewal),Stylenanda,Pulp Riot,Valentino(licence),Thermes de la Roche-Posay Licensing agreement with Prada Definition of the sense of purpose(raison dtre):Create the beauty that moves the world.Announcement of the LOral for the Future programme for 2030 Mugler and Azzaro fragrances Takam
136、i Co and Youth ToThe People LOral announces a reorganisation of geographic zones Agreement between LOral and Nestl forthe repurchase by LOral of 4%of its own shares held by Nestl Skinbetter Science in the United States LOrals 1st 3 billion bond including a sustainability-linked tranche 3rd employee
137、shareholding plan Acquisitions or licenses Important dates2022 Founding of Socit Franaise de Teintures Inoffensives pour Cheveux by Eugne Schueller1909 Matrix et Kiehls since 1851LORAL UNIVERSAL REGISTRATION DOCUMENT 202225PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model11.2.7
138、.Ongoing transformation to meet new aspirationsWith 38.26 billion in net sales and nearly 87,400 employeesin2022,LOral is the world leader in beauty.Because the beauty market is a growing market with a focuson the future,the Group is,now more than ever,in a positionto seize all opportunities,strengt
139、hen its leadership and ensuretomorrows success.Building on a long-term vision,with a clearstrategy,LOral continues its development by relying on itsfundamental assets and transforming itself to respond to thenew aspirations of consumers,employees and society,tobecome the company of the future.Digita
140、l transformation to become thechampionDigital technology has radically transformed the Group,and isfully integrated in the business,in all brands,jobs and countries.It is based on a solid network of over 3,800 digital experts,almost 62,000 trained employees and a wealth of inhouseknow-how.Digital ha
141、s boosted LOrals strengths tenfold andrepresents a booster of opportunities and growth.It enhancesthe power of brands and products,enriches the connectionwith consumers and creates experiences,new services andpersonalisation.E-commerce is an additional source of business,and a growthaccelerator beca
142、use it means we can reach new consumerswherever there is no existing distribution network.Theproportion of the Groups sales represented by e-commercemultiplied by nearly 6 between 2015 and 2022(5%to 28%(1),with growth in all Zones and Divisions.LOral aims to increaseits e-commerce business to reach
143、up to 50%of its sales.This means strengthening its industrial flexibility,adapting itssupply chain in an“omnichannel”approach and redesigningthe downstream value chain immediately.The new frontier of LOrals digital adventure is theMetaverse,which will provide infinite opportunities to interactwith c
144、onsumers and even market products in virtual universes.Transformation to Beauty Tech to invent the beauty of the futureTechnology,particularly Beauty Tech,is the future of beautybecause of the phenomenal breakthroughs in artificialintelligence,robotics,the Internet of Things,3D printing,nanotechnolo
145、gy,biotechnology,etc.,which make it possible toexpand LOrals offering and satisfy all consumer expectations.LOral,which is already a digital-first company,decided tobe the pioneer,champion and leader of Beauty Tech in all itsareas of application.By building up state-of-the-art,secure IT,its leadersh
146、ip in Beauty Tech and its expertise in artificialintelligence and data will enable LOral to be a data-drivencompany for all its activities and business lines.The ongoingtransformation of Operations towards greater agility is integralto the Groups ambition to become a world leader in BeautyTech.Beaut
147、y Tech will ensure that beauty for all evolves into beautyfor each person.To achieve this,LOral has a uniquestrength:being the only company that can combine morethan 110 years of scientific beauty expertise and knowledgeofour consumers with cutting-edge digital excellence.Transformation of our formu
148、lation towards Green Sciences,to combine performance,safety and sustainability The transformation of our formulations towards the GreenSciences is at the heart of the beauty of the future.This newfrontier of research,which combines biotechnology with newagronomic and cultivation techniques,is making
149、 it possiblefor LOral to expand its portfolio of raw materials andtodevelop ingredients with a favourable environmental profileto break free from petrochemicals.This programme helps tominimise the environmental impacts associated with thecultivation of the plants these ingredients are sourced from,s
150、o as to rely on eco-friendly transformation procedures.Thistransition will provide consumers with performance,safetyand sustainability,and LOral with a new competitiveadvantage.Transformation towards an increasingly sustainable business model,within the planetary boundaries defined by scienceThrough
151、 its LOral for the Future programme,LOral has setitself a number of ambitious targets for combating climatechange:in terms of reducing its CO2 emissions in order toachieve“carbon neutral”status(2)for its sites,in terms of theuse and recycling of water in its industrial processes and interms of its p
152、roduct design(formulation and packaging)through bio-sourcing and the circular economy.On the social front,LOral ensures that its strategic supplierspay their employees a decent living wage and adopts policiesto help people from disadvantaged communities to accessemployment.The Group has also committ
153、ed on the one handto supporting women in vulnerable situations with a charitableendowment fund of 50 million,and secondly,to investing100 million in two investment funds dedicated to the circulareconomy and the regeneration of ecosystems.In 2022,LOral co-founded the EcoBeautyScore Consortium,withmor
154、e than fifty players from the beauty sector,to set up ascheme to indicate the environmental impact of cosmeticproducts so that consumers can make more sustainablechoices.(1)Sales achieved on our brands websites and with e-commerce pure players+estimated sales achieved by our brands corresponding to
155、sales through our retailerswebsites(non-audited data).(2)A site can claim“carbon neutral”status if it meets the following requirements:Direct CO2(Scope 1)=0,with the exception of:the gas used for catering,the fuel oil used for sprinkler tests,fossil energy consumptions during maintenance of on-site
156、renewable facilities,cooling gas leaks if they are lower than 130 tonnes CO2eq./year;and Indirect CO2 Market Based(Scope 2)=0.The renewable energy sources must be located on site or less than 500 kilometres from the site,and be connected to the same distribution network.The“carbon neutral”status,as
157、defined above,is achieved without carbon offsetting.Seesection4.3.1.1.3.B/.26LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1Transformation of work:reinventing the“future of work”while strengthening the LOral culture All across the gl
158、obe,the working world has undergoneprofound changes as a result of the Covid-19 health crisis,particularly with remote working becoming more widespread,a phenomenon that employees now want in their everydaylives,as well as a key factor in the appeal of an employer.Inthis new“hybrid”working environme
159、nt,LOral has optedfor balanced and flexible solutions between on-site andremote working to preserve and promote opportunities forexchange,cooperation and creativity.Furthermore,in a context of accelerated digitalisation ofconsumption,production,distribution and communicationmethods,the Group anticip
160、ated the global impact thesetransformations will have on its structure by continuing todevelop its employees skills in these areas,as well as byrecruiting new expertise,particularly in the field of technology.Thanks to its various initiatives,LOral took 5th place in theUniversum global ranking 2022
161、of business school studentspreferred companies for the second consecutive year.The Group is the highest-ranked EU multinational companyinthis prestigious ranking.Ongoing structural transformation torationalise and identify synergies In spring 2020,LOral launched an initiative entitled NEXT tosimplif
162、y its structures with a view to a post-Covid world.This review involves simplifying the organisation(by creatingfive internal shared service centres and seven geographicareas),reviewing the brand portfolio of each Division on anannual basis,and finally,simplifying the number of products ineach brand
163、s catalogue to reduce complex manufacturingand research.1.2.8.The mission of the Research department:responsible,inclusiveinnovation,in absolute safetyThe cosmetics market is driven by supply and innovation.LOrals success is fed by its permanent obsession forinnovation,which feeds into its performan
164、ce in all its forms.With more than 4,222 researchers and spending ofapproximately 3%of sales,LOral has the top R&I force in thecosmetics industry.This is a considerable asset,with a level ofexpertise and a wealth of unique scientific and technicaldata.The performance,security and absolute safety ofi
165、ngredients,the superior quality of the products and thesincerity of their claims are the fundamentals that inspiretheGroups laboratory teams every day.From upstream to downstream Advanced Research teams create,develop and source rawmaterials,drawing on the knowledge of skin and hair fromaround the w
166、orld.The Application Domains teams developformula architectures that improve the performance of activeingredients.The Development Laboratories create innovativeformulas with a proven superiority for each brand.Thisinnovation model is nurtured by a constant dialogue betweenthe laboratories and market
167、ing to respond to the expectationsof consumers,supporting them with the latest technologicalbreakthroughs.Research facilities around the worldIn order to adapt to consumer expectations worldwide,LOrals Research teams work in 20 cosmetics researchcentres and 13 assessment centres.The research centres
168、 aregrouped into three global centres in France and 6 regionalhubs(1)that identify consumer needs and study their beautyregimes.R&I teams build on this rich seam of local scientificecosystems to develop collaboration agreements andpartnerships of excellence.The data generated enablesresearchers to d
169、evelop new beauty products or experiences,that are in tune with market needs and local expectations.R&I:a vast ecosystem open to the world(1)Global centres in France:Advanced Research,Haircare and Cosmetics.Regional hubs:Japan,US,China,India,South Africa and Brazil.R&IInternallaboratoriesUNIVERSITIE
170、SRESEARCH INSTITUTIONSSUPPLIERSSTART-UPSLORAL UNIVERSAL REGISTRATION DOCUMENT 202227PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1Group laboratories established around the worldResearch and Innovation expenses(millions)ResearchheadcountNumber of patents filed2020 9644,04450
171、02021 1,0294,05451720221,1394,222561Research:the transition to Green Sciences and Biology is picking up speed The scientific revolution of Green SciencesGreen Sciences cover all the scientific fields on which R&I reliesto achieve LOrals objectives in terms of the preservationof natural resources and
172、 biodiversity.They have completelyrevolutionised the way we understand and do science,whichfocuses on three areas:sustainable cultivation to reinvent the way we grow our rawmaterials.By applying these responsible agriculturaltechniques,LOral is preserving water resources,contributingto soil health a
173、nd strengthening biodiversity while limitinggreenhouse gas emissions and respecting populations andtheir ecosystems;green transformation such as biotechnology,greenextraction and green chemistry,to extract and transform rawmaterials to obtain the ingredients required for formulations;formulation sci
174、ences,which,by combining ingredients fromGreen Sciences,enable us to offer responsible andsustainable products to consumers,while complying withour safety and performance requirements.“Sustainable”partnershipsThe R&I teams worldwide are bringing about a new scientificrevolution in cosmetics,based on
175、 the principle:Science xNature x Technologies.This dynamic innovation ecosystemmakes it possible to increase the opportunities for researchand innovation to:explore new areas of knowledge;transform the portfolio of raw materials through partnerships(e.g.Microphyt for microalgae)(1);innovate in exten
176、ded labs with the Green Sciences Incubator,thereby supporting start-ups.(1)Financing via BOLD,LOrals venture capital fund.6Regional hubs3Global centres(France)20Research centres13Evaluation centres28LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-cr
177、eating model1Innovation at the heart of the business modelAn estimated 50 million people globally live with limited finemotor skills,making certain daily habits,like applying makeup,challenging.Developed by LOral scientists and engineers,HAPTA is a handheld,ultra-precise smart makeup applicatorfor u
178、sers with limited hand and arm mobility,offering them theability to apply lipstick at home(1).HAPTA will help individualsfeel more independent,confident,and empowered to enjoythe self-expressive power of beauty(2).HAPTA will be launchedin 2023 by Lancme,first as a lipstick applicator followedbyaddit
179、ional makeup applications.Our technological innovations in the beauty domain received16 awards,including six innovation awards at the 2023Consumer Electronics Show in Las Vegas,and for the third yearrunning,the judges prize in the“Augmented Beauty”category of Time Magazines special edition dedicated
180、 to the100 Best Inventions of the year.New levels of performance for the Groups iconic anti-ageing ingredient:Pro-XylaneTwenty years after Pro-Xylane was first discovered,R&Iunveils a new raw material:Pro-Xylane PRO.A productof glycobiology(3),ProXylane improves the synthesis ofglycosaminoglycans,mo
181、lecules that play a key role in theskins ageing process.LOral has published 12 scientificpublications and filed more than 70 patent applicationsworldwide for this innovative anti-ageing active ingredient.UVMune 400,the first sun filtering technology toeffectively protect against ultra-long UVA raysU
182、VA and UVB rays are some of the main causes of skin cancer.It is essential to stay protected from these rays throughout yourlifetime.LOral has a long history of expertise in thedevelopment of sunscreens,starting with its patenting ofMexoryl SX in 1982,and of Mexoryl XL in 1989.Together theseproducts
183、 protect against UVB and short UVA rays,but are lesseffective against ultra-long UVA,the 30%of solar rays thathave so far been insufficiently filtered and which cause deepskin damage.After 10 years of research in collaboration withBASF,in 2021 LOral launched UVMune 400,a solar filtrationtechnology p
184、owered by Mexoryl 400,the first solar filter toabsorb ultra-long UVA rays so effectively.This is the Groupsbiggest suncare innovation in 30 years.This technology isbehind the launch of La Roche-Posays Anthelios UVMune 400,a hybrid product that provides both seasonal and dailyprotection.Inclusivity a
185、t each stage of LOrals innovation model Enhancing the inclusivity of beauty experiences with a more thorough knowledge ofconsumers in their infinite diversityLOral aims to offer the best in beauty for all skin and hairtypes,all genders,all identities,cultures,age groups,beautyregimes and all lifesty
186、les.Research places learning about skinand hair from around the world at the heart of its innovationstrategy,so as to better understand consumers in their infinitediversity.This makes it possible to:identify the technical and emotional drivers connected withthe expectations and specific needs of eac
187、h consumer;better anticipate the technological and digital issues of thebeauty of the future;evaluate the effectiveness of beauty routines in the mostappropriate and inclusive way possible.Designing the future of beauty with“Typology”,an extensive international studyIn 2022,R&I launched the“Typology
188、”programme,which aimsto enhance its expertise in the diversity and representativenessof individuals worldwide,so as to develop inclusive services,incompliance with applicable regulations.The study targeted 8 countries and 15,000 volunteers ofall genders,ages,phototypes,hair types and ethnic origins.
189、It aims to collect reliable information and personal data onasample of people representing more than half of the worldspopulation.Only the data required for this study,provided toLOral in an anonymised format,was collected(4).The studyof this data sample provides a better understanding of theissues
190、consumers encounter in their beauty routines,countryofresidence and environment.Developing objective evaluation methods anddiagnostic tools that are increasingly inclusiveThe market is changing and there is strong growth in demandfor personalised services and diagnostics.In order to offerconsumers m
191、ade-to-measure experiences,LOral usesclinical skin diagnostics that take this diversity into account.In2022,the Research teams designed an inclusive clinical skindiagnosis tool based on Artificial Intelligence,using the datafrom this study,making it possible for algorithms andconclusions to be suffi
192、ciently corroborated.The performanceof this algorithm was then validated and confirmed in aninclusive study in the United States,where subjects anddermatologists met numerous diversity criteria.This essentialstudy has also been the subject of a scientific publication,cowritten by Dr Nina Jablonski a
193、nd DrAurlie Jean,who aremembers of LOrals Global Diversity,Equity&InclusionAdvisory Board.(1)Press release of 4January 2023:https:/ will incorporate technology originally created by Verily to stabilise utensils to give people with limited hand and arm mobility the ability to eat with confidenceandin
194、dependence.(3)Expertise in the importance of sugars for skin.(4)450,000 responses,60,000 photos and videos taken via smartphone,and 240,000 photographs captured via SkinCam.LORAL UNIVERSAL REGISTRATION DOCUMENT 202229PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1Research wi
195、th commitment,infulltransparencyBeauty without animal testingIn the 1980s,Group committed to developing alternatives toanimal testing to assess the safety of its ingredients and itsproducts.Today,none of the Groups products or ingredientsare tested on animals by LOral.LOral definitively stoppedthe s
196、afety testing of its products on animals in 1989.The Groupbelieves that there are other effective ways of ensuring thatcosmetic products are safe.Over 40 years ago,LOral wasthe first company to develop reconstructed skin,which is amore accurate way to test the effects of ingredients andcosmetic prod
197、ucts on human skin than any other method;this is currently the case in the laboratories of LOralssubsidiary,Episkin,in France,China and Brazil.It is availabletogovernments,organisations and other companies so theydo not have to resort to animal testing.LOral contributed to the approval of dozens of
198、alternativemethods of testing the safety of its products and has also beenactive in advocating for alternative methods in China.LOralhas been working with the Chinese authorities for over10 years on introducing methods that are free from animaltesting for all cosmetic products.Over the last few year
199、s,China abolished the requirement to carry out animal testingthat applies to most cosmetics sold in the country.Since 2014,the Chinese authorities no longer test nonfunctional cosmetics(such as shampoo or make-up)that are manufacturedlocally.Since 2021,these same cosmetics imported into Chinano long
200、er need to be tested on animals,subject to acertificate of compliance with manufacturing best practices.In 2022,Episkin launched a new innovative reconstructedcornea model(HCE SkinEthic),which is already availablein Brazil,Argentina,Colombia and Chile.Based on this newmodel,the Time-To-Toxicity(TTT)
201、evaluation method wasincluded in the OECD(1)test guidelines in 2022.Approval of thismethod has made it possible to predict eye irritation with asingle in vitro test.This is a major step in the fight against animaltesting.Transparency:a key challenge in recent years and for the futureLOral continues
202、to strengthen its commitment totransparency in order to meet growing consumer demandforinformation about the composition of products.Launchedin 2019,the“Inside our Products”website is available in45countries and in 8 languages,and references more than1,300 ingredients.This content is gradually being
203、 added to thewebsites of the Groups major brands.At the same time,the expansion of the Product Impact Labelling(PIL)systemprovides consumers with information on the environmentaland social impact of certain products in the Garnier,LaRoche-Posay,LOral Paris,Vichy and Biotherm brands inFrance.The late
204、st transparency initiative is the InFragrancescheme:based on an analysis of 20,000 perfume formulas andthanks to the collaboration of our main fragrance suppliers(Firmenich,Givaudan,IFF and Mane),this approach allowsconsumers to understand the natural or synthetic origin ofingredients,their olfactor
205、y properties and the way in whichthey are combined to create the fragrance of products.As aresponsible leader in the beauty industry,LOral would likethis model to be open to other players in the sector,bothmanufacturers and retailers,so as to provide moretransparency to consumers.1.2.9.Operations,sp
206、ecialised expertise and core values to contribute to growthLOrals Operations Division creates innovative,inclusive andsustainable beauty in collaboration with its partners.Theyharness the power of technology and strive for excellenceto design,develop,supply,produce and distribute productsand service
207、s worldwide.Consumers are at the heart of thedecisions made by the Operations Division,which seeksthe most agile and effective solutions,and guaranteescompliance with strict standards of quality,safety and CSRatthe global level.Resilience and transformation for growth Relying on an approach of opera
208、tional excellence conductedfor years,the expertise and commitment of the Operationsteams have boosted the Groups growth.In a challengingglobal context,they have demonstrated their agilityand resilience,while pursuing their digital,sustainable andinnovative transformation.The hightechnology industry
209、is atthe heart of the Operations Division,and this enhances itsagility across the entire value chain,enabling it to meetmarket challenges.Thanks to science and new technologies,the OperationsDivision can be innovative and is able provide a specificresponse to the new challenges posed by consumerexpe
210、ctations for personalisation,agility and traceability,on theone hand,and to the employee experience on the other,such as simplification,ergonomics and real-time access toinformation.In production,the combination of new technologies and thedeployment of additional capacity worldwide provideflexible a
211、nd agile production solutions.The omnichanneltransformation of the supply chain continues,providing anoptimised customer experience and increased interactionwith consumers,and responsibly promoting the use of newtechnologies(IoT(2),connected products,big data).(1)Organisation for Economic Co-operati
212、on and Development.(2)Internet of Things.30LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1At the centre of design and development isinnovation in responsible packagingThe packaging of a product is the first identifying link betweena
213、brand and its consumers.Thanks to science,experience andperformance,packaging is a key differentiating factor fortheproduct and therefore of its perceived value creation for theconsumer.The LOral teams,distributed over five PackagingHubs around the world,specialise in design,consumerexperience,innov
214、ation and product development.They relyon the expertise of laboratories dedicated to materials andpackaging to create cutting-edge innovations worldwide.LOral filed 50patents for packaging in 2022.Since 2007,LOral has adopted an eco-design process for itspackaging.This process comprises three steps:
215、Reduce theintensity of packaging and thus use fewer resources;Replaceimpactful materials with materials that have a betterenvironmental footprint(renewable,post-consumer recycled);Recycle by creating packaging that contributes to thecircular economy.At the end of 2022,97%of the Groups products have
216、animproved environmental or social profile(1).By 2030,100%ofthe plastic used in the packaging of LOral products will beeither recycled or bio-sourced and LOral will reduce thevolume ofpackaging used for its products by 20%comparedto 2019.In 2022,78.1%of the PET plastic used came fromrecycled sources
217、.Pursuing its strategy to participate in the circular economy,in 2022 LOral signed a partnership with US chemicalscompany Eastman for a multi-year contract for the supplyofplastic produced from the molecular recycling of polyesterwaste.A purchasing programme that combines economic,environmental and
218、social value with the highest standards in terms ofquality andsecurity To accompany the Groups growth,Purchasing Departmentselects the most economically,environmentally and sociallyeffective suppliers in accordance with the LOral Buy&Careresponsible purchasing policy.Supplier performance ismonitored
219、 thanks to precise indicators relating to social,environmental and ethical criteria and through their abilityto innovate and to meet the Groups requirements in termsofquality,agility,service and competitiveness.LOral builds solid relationships with its suppliers to ensure itsprocurement is responsib
220、le and to guarantee the flexibility,reliability and traceability of its supply streams.In a climateoftension and volatility,these long-term supplier relationshipsplay a key role in the Groups ability to secure the volumeand price of its raw materials supplies.In 2022,the Groupconducted 1,145 social
221、audits,a total of more than 16,000since 2006.From 2010,LOral chose to engage with suppliers that havean inclusive solidarity model in order to provide access toemployment for people from economically or sociallydisadvantaged communities,such as people with adisability,the long-term unemployed or fai
222、r-trade suppliers(seesection4.3.3.6.).At the end of 2022,85,544 people hadbeen able to access employment via LOrals SolidaritySourcing programme.Manufacturing performance that relies onaglobal system combining agility withoperational excellence LOral has 38 high-tech factories around the world,locat
223、edclose to its consumer markets.This network of plants isconstantly evolving to accommodate the growth of theGroup,incorporate acquisitions,embrace external innovationsand adapt to rapid changes in the beauty market.It issupported by a network of subcontracting partners to dealwith cyclical peaks in
224、 demand.The Groups manufacturing organisation is also based onspecialisation by technology(2)to maximise best practices,increase agility,improve productivity and to optimiseinvestments.As such,the Aulnay-sous-Bois factory in the Parisregion,which celebrated its 30th year of operation in 2022,hasadap
225、ted to manufacture perfumes for the Luxe Division,inresponse to a growth in demand.This site is a prime exampleof LOrals agility,its expertise in“French-style luxury”andthe territorial connection of its manufacturing base.In 2022,theOperations Division also adjusted its skincaremanufacturing capacit
226、y worldwide,with major projects intheUnited States,North Asia and Europe(France),in responsetostrong growth in this category.(1)Basis of calculation representing 72%of all projects,excluding items considered to be irrelevant,such as ad hoc animation and promotion products and regulatorycompliance le
227、ading to changes that are not visible to consumers.(2)Haircare,skincare,makeup,perfumes,hygiene products,etc.LORAL UNIVERSAL REGISTRATION DOCUMENT 202231PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1Manufacturing footprint by geographic zoneOperational excellenceLOrals indu
228、strial sites use the most advanced technologies robotic technologies,automation and cobotics(collaborativerobots)continuously adapting to meet the demands of themarket and the diversity of consumer offerings:fromlargescale production plants for the consumer productsmarket to agile plants producing u
229、ltra-luxury limited editions.Regardless the technology used or the market in which itoperates,the Group deploys its Operational ExcellenceSystem in all its plants throughout the world.This is a systemicapproach that relies on the commitment of all Operationsemployees in technical fields,process cont
230、rol and the cultureof operational excellence,to guarantee safety,hygiene,quality,product availability,levels of service,productivity,ergonomics and environmental impact.Product quality and safety:a priorityOffering consumers the highest quality product is an absolutepriority.Over several decades,the
231、 Group has set up a singleproduct quality and safety management programmethat applies to all its plants and subsidiaries around theworld.In 2022,97%of LOral plants were ISO 9001(Quality Management)certified and 100%were ISO 22716(Best cosmetics manufacturing practices)compliant.This unique quality m
232、anagement system guaranteesmanufacturing excellence and the quality of products withthe same high standards applicable everywhere in the world.It includes efficient production methods and stringent controlstandards:around 100 quality controls are carried out on asingle product during the production
233、cycle,from the inputof raw materials and packaging to when products leavetheplant and heads towardscustomers and consumers.The ongoing quality improvement process has been effectiveas seen in the low rate of consumer complaints in 2022:46complaints per million products sold(1).(1)At 30November 2022.
234、Incl.FRANCE54333EUROPESAPMENASUB-SAHARAN AFRICALATIN AMERICANORTH AMERICANORTH ASIA112038 factories in the world32LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1Employee safety is at the centre ofLOralsmodelIn 2022,the Safety Managem
235、ent System,which applies to theGroups teams and all administrative sites,laboratories,plants,distribution centres and shops,was recognised by RoSPA(1),which allotted 58 awards to LOral.LOrals factory in NorthLittle Rock,USA was a finalist for the highly prestigious SirGeorge Earle Trophy.This award
236、recognises excellence inmanagement and performance in terms of health,safety andwell-being,both at and outside work.At the heart of production:environmentalprotectionThe Groups environmental policy aims to roll out bestpractices in sustainable production so as to limit the directimpact of the Groups
237、 business activities on the environment,and to preserve biodiversity and resources:energy efficiency,use of renewable energy,optimisation of water consumptionand recycling,reduction of waste generation etc.In 2022,LOral continued to prioritise programmes to reduce itsenvironmental footprint(2)with,s
238、ince 2019,a 57%drop in CO2emissions in absolute value(-91%since 2005),a-6%drop inwater withdrawal per unit of finished product(-54%since2005),and a-3%drop in waste generation per unit of finishedproduct(-40%since 2005).It should be noted that 96%ofresidual waste was recovered in 2022,meaning that it
239、 wasreused,recycled or used for energy recovery.(1)Royal Society for the Prevention of Accidents.(2)Continuation of renewable energy projects around the world(e.g.,start-up of two new treatment plants in France).LOral selects suppliersaccording to strictstandards and criteriain respect of quality,sa
240、fety,and socialand environmental responsibility,applied worldwide and compliantwith its responsible purchasing policyLOral offers consumerseffective and high-qualityproductsby respecting the most stringentregulations and through its continuousimprovement approach,which is central to its quality poli
241、cyQualitCERTIFILORAL100 quality controlsFor each cosmetic productIdentical processes are followed in the 38 plants,from the reception of raw materials,through the manufacturingof formulas and the packaging of finished products,until products are put on the market Products meet the same standards of
242、excellenceand quality all over the world100%of the Groups plants*Best practices in cosmetics manufacturing*Quality managementare ISO 22716*compliant 97%of the Groups plantsare ISO 9001*compliant Plants certified to the highest levelLORAL UNIVERSAL REGISTRATION DOCUMENT 202233PRESENTATION OF THE GROU
243、P INTEGRATED REPORTLOral,a value-creating model1A long-standing commitment to responsible production(plants and distribution centres compared with 2005At the end of 2022,60owned plants and distribution centres(industrial sites),including 22factories(1),are“carbon neutral”(2).All sites in the North A
244、sia Zone(continental China,Japan,SouthKorea,Hong Kong and Taiwan)and those in LOral Brazilbecame“carbon neutral”(3)in 2022(see section 4.3.1.1.3.).At year-end 2022,there were five Waterloop factories(Burgosin Spain,Settimo in Italy,Vorsino in Russia,Libramont in Belgiumand Yichang in China):all the
245、water required by the utilities(equipment cleaning,steam production etc.)comes fromreused water or water recycled in a closed loop on the site(see section4.3.1.1.4.).LOrals commitment for over 25 years to environmentalleadership was recognised in 2016,2017,2018,2019,2020,2021and 2022 withthe best po
246、ssible rating by the CDP(3):a triple“A”.LOralis thus the only company in the world,out of morethan 12,000 companies assessed,to receive a triple“A”ranking for the seventh consecutive year,for its commitmentand results in the three key areas:the fight against climatechange,sustainable water managemen
247、t and the fight againstdeforestation.A responsible,omnichannel logistics strategy The Groups Supply Chain Department organises andoptimises the delivery of every one of the over 6.5 billionLOral products to all customers,as well as directly toconsumers.It is responsible for making sure that the prod
248、uctsare delivered under optimum conditions,at the right time andat the best cost.The Supply Chain Department and itsdistribution centres were particularly strategic and responsivein 2022 in order to support LOrals growth in an extremelyvolatile market.LOrals unique features in a global market are it
249、s diverserange of distribution channels and its portfolio of manydifferent beauty and cosmetic product categories.LOralcontinuously optimises all information flows and physical flowsfrom suppliers tocustomers.Presence across all distribution channels(1)Libramont in Belgium,Settimo in Italy,Burgos an
250、d Alcal de Henares in Spain,Rambouillet,Ormes,Gauchy,Vichy,LaRoche-Posay,Aulnay,Saint-Quentin,Lassigny andCaudry in France,Karlsruhe and Salzhemmendorf in Germany,Yichang and Suzhou in China,Gotemba in Japan,Funza in Colombia,Sao Paulo in Brazil,Florence intheUSA,and Baddi in India.This factory has
251、achieved“carbon-neutral”status,thanks to its use of 100%of renewable hydroelectric energy and an improvement in its energyefficiency.(2)A site can claim“carbon neutral”status if it meets the following requirements:Direct CO2(Scope 1)=0,with the exception of:the gas used for catering,the fuel oil use
252、dfor sprinkler tests,fossil energy consumptions during maintenance of on-site renewable facilities,cooling gas leaks if they are lower than 130 tonnes CO2eq./year;andIndirect CO2 Market Based(Scope 2)=0.The renewable energy sources must be located on site or less than 500 kilometres from the site,an
253、d be connected to the samedistribution network.The“carbon neutral”status,as defined above,is achieved without carbon offsetting.Seesection4.3.1.1.3.B/.(3)The CDP is an independent NGO which offers a global system for the measurement and publication of environmental information and which assesses the
254、 strategy,closeinvolvement and results obtained by companies in the fight against climate change,sustainable water management and forest protection.20052022-54%-91%+45%-40%Growthin productionWaste generationper finished productunitWater consumptionper finished product unitCO2 emissionsin absolute te
255、rmsHAIR SALONS E-COMMERCEMASS-MARKETRETAIL CHANNELS DEPARTMENT STORESPERFUMERIESLOCAL RETAILERIN NEW MARKETSPHARMACIESDRUGSTORESMEDISPAS TRAVEL RETAILBRANDED RETAIL34LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model1The goal is to incre
256、ase agility to handle market variations on alldistribution channels and to adapt to market expectations inreal time.Digitalisation of the supply chain and datamanagement are critical challenges,and represent a realopportunity,especially in the retail sector and in storesmanaged directly by LOral.It
257、can provide a comprehensiveview of business in a store,as well as improve understandingofthe consumer purchase journey.The supply chain network composed of 152 distribution centresis a strategic lever to ensure agile coverage of marketchallenges and expand our service offer.To create a moreresponsiv
258、e supply chain,LOral is investing in its distributioncentres to gradually transform them into Fulfilment Centres(1):powered by automation and data,they manage a range ofservices to consumers such as personalisation,box preparationand tailormade delivery.They facilitate stock interoperabilityfor omni
259、channel management and allow enhanced producttraceability.In 2022,in Suzhou in China,LOral beganconstructing its first“Intelligent Fulfilment Centre”to enhanceits offering of personalised beauty services and experiences.In order to reduce its environmental footprint,LOral iscocreating with carriers
260、low-carbon multimodal solutionsadapted to the specific features of each geographic zone(green delivery,reduced air freight,hydrogen engines etc.).Toimprove the energy efficiency of its plants,LOral is rollingout the use of 100%renewable energy worldwide.In 2022,LOral and its partners opened the Grou
261、ps second largestLatin American distribution centre in Jarinu,Brazil.As anecoconstruction,this distribution centre uses 100%renewableenergy.The new Vennecy distribution centre in France has been inoperation since October 2022 for the distribution of consumerproducts.Exemplary in terms of environment
262、al performance(enhanced insulation,optimised mix of natural/LED lighting,passive air conditioning,roof-top photovoltaic power systemand biomass-fired boilers),this centre uses data andautomation to optimise flows and accentuate its ability toadapt to the markets.Global economic performance at the se
263、rvice of the brands and the commercial entitiesIn a climate of short and long-terms global tension,the Operations Division plays a key economic role for all brands and markets,which has an impact on the overall cost of products and their distribution.Economic optimisation efforts led by Operations i
264、nvolve tracking the total landed cost,i.e.,the final full cost of a product,whichincludes the cost of packaging and raw materials,the value added by the plants and all supply chain costs.Commitment to invest in Operations(Production and supply chain commitments in millions)Production and sales of th
265、e operational Divisionsbygeographic zone in 2022:production closetoits markets(1)Distribution centres specially adapted for e-commerce distribution,where packages sent directly to consumers are prepared.32940920202021202227811.3%6.2%9.4%29.6%10.5%7.7%LATIN AMERICANORTH ASIA48.6%29.9%20.2%26.6%EUROPE
266、NORTH AMERICASAPMENA-SSAProductionSalesLORAL UNIVERSAL REGISTRATION DOCUMENT 202235PRESENTATION OF THE GROUP INTEGRATED REPORTLOral,a value-creating model11.3.2022 Financial Results and Corporate Social Responsibility commitments1.3.1.2022 ResultsCommenting on the figures,Nicolas Hieronimus,CEO ofLO
267、ral,said(1):“We achieved a remarkable performancethis year,thanks to our innovation leadership,our highlydesirable brands,our operational agility and the tremendouscommitment of our teams.Comparable growth vs.2019accelerated quarter after quarter and reached+23%overthe full year.Our balanced growth
268、across Divisions andregions once again demonstrates the relevance of ourmultipolar model:strategically centralised and operationallydecentralised with a strong entrepreneurial mindset,thismodel is ideally suited to the current environment.Wehaveemerged stronger from 2022 and reinforced ourposition a
269、s the worlds leading beauty company.Thesehigh-quality results allow us to consistently support our socialand environmental commitments,in line with our dualambition of economic and corporate performance.Mindfulof the current uncertainties,we remain ambitious for thefuture,optimistic about the outloo
270、k for the beauty market,and confident in our ability to keep outperforming themarket and achieve in 2023 another year of growth in salesand profits.”1.3.1.1.Overview of the results for2022Sales:38.26 billion euros,+18.5%reported,+10.9%like-for-like(2);a comparable increase of+23.4%vs 2019.Strengthen
271、ing global leadership in the beauty market.Well-balanced growth between volume and value.28%ofsales in e-commerce.Strong improvement in operating margin:19.5%(+40 bps);operating profit:7,456.9 million euros.Earnings per share(3):11.26 euros,up by+27.6%.Dividend(4):6.00 euros.Third employee share own
272、ership plan successfully rolled outin more than 60 countries.LOral For Youth:25,000 work opportunities per year forunder-30s.LOral Fund for Women:already 30.8 million allocatedto support over 1.2 million women in vulnerable situationthroughout the world.Solidarity Sourcing programme benefiting 85,00
273、0 workersfrom discriminated communities.Sustainability leader:only company in the world to havebeen awarded a AAA rating by CDP for seven years inarow;platinum medal by EcoVadis,which ranked LOralin the global top 1%of best companies assessed in terms ofenvironmental and social performance.Named for
274、 the 13th year as one of the worlds most ethicalcompanies by Ethisphere.1.3.1.2.Consolidated salesSales amounted to 38.26 billion euros at 31 December 2022,upby+18.5%reported.Like-for-like,i.e.based on a comparable scope of consolidationand identical exchange rates,the growth of LOral group saleswas
275、+10.9%.The net impact of changes in the scope of consolidation was+0.4%.At the end of 2022,currency fluctuations had an impact of+7.2%.(1)Press realease of 9 February 2023.(2)Like-for-like:based on a comparable scope of consolidation and identical exchange rates.(3)Diluted earnings per share,based o
276、n net profit,excluding non-recurring items,after non-controlling interests.(4)To be proposed at the Annual General Meeting of 21 April 2023.36LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORT2022 Financial Results and Corporate Social Responsibility commitments1Sa
277、les by Division and Geographic Zone millions202020212022%2022 sales2021/2022 progressionLike-for-likeReported figuresBy DivisionProfessional Products3,097.33,783.94,476.811.7%+10.1%+18.3%Consumer Products11,703.812,233.514,021.336.6%+8.3%+14.6%LOral Luxe10,179.912,346.214,638.138.3%+10.2%+18.6%Activ
278、e Cosmetics3,011.13,924.05,124.513.4%+21.9%+30.6%Group total27,992.132,287.638,260.6100%+10.9%+18.5%By geographic ZoneEurope9,199.310,184.811,436.729.9%+11.6%+12.3%North America6,903.48,155.910,164.026.6%+10.4%+24.6%North Asia8,318.19,863.311,321.429.6%+6.6%+14.8%SAPMENA SSA(1)2,101.92,312.02,962.47
279、.7%+22.0%+28.1%Latin America1,469.31,771.52,376.26.2%+18.6%+34.1%GROUP TOTAL27,992.132,287.638,260.6100%+10.9%+18.5%(1)SAPMENA SSA:South Asia Pacific,Middle East,North Africa,Sub-Saharan Africa.Summary by DivisionProfessional productsThe Professional Products Division recorded strong growth,at+10.1%
280、like-for-like and+18.3%reportedThe Division strengthened its position in the professional beautymarket,maintaining its growth momentum across all geographicZones,with outstanding performances in mainland China,Indiaand Brazil.Itcontinued to perform in all distribution channels in salons,in its Salon
281、Centric network in the United Statesand in ecommerce again confirming the success of itsomnichannel strategy.Growth in the premiumising haircare market was largely drivenby the performance of Krastase,whose sales exceededthe symbolic one-billion-euro mark for the first time,andSrieExpert by LOral Pr
282、ofessionnel,with the success of theMetal Detox innovation.The Division also achieved growth inhair colour,with its iconic lines Shades EQ by Redken and InoabyLOral Professionnel.As the industry leader,the Division continued to involve all itspartner hairstylists in the sustainable transition with th
283、e rolloutofits“Hairstylists for the Future”programme.Consumer productsThe Consumer Products Division posted its best growth in20years:+8.3%like-for-like and+14.6%reported.The Divisions growth was driven by innovation and soundvalorisation,without sacrificing volume.All major brandsoutperformed the m
284、arket,thanks to successful initiatives in thedifferent categories.The Division achieved sustained growth in haircare,with ElviveHyaluron Plump confirming its worldwide success.Makeupwas the Divisions fastest growing category,with successfullaunches including Superstay Vinyl Ink by Maybelline New Yor
285、k-the first long-wear,shiny,liquid lipstick-as well as Bare With Meconcealer and Jumbo False Eyelashes by NYX ProfessionalMakeup.In skincare,Garnier was the Divisions top growthcontributor,with its Vitamin C Brightening Serum a standoutsuccess.North America and Europe saw very robust performances.At
286、 the same time,growth accelerated significantly in LatinAmerica and SAPMENA-SSA,with remarkable performancein high-potential countries such as Mexico,India and Brazil.This more than compensated for the challenging marketconditions in China,where the Division accelerated its marketshare gains in the
287、fourth quarter.LOral LuxeLOral Luxe recorded strong growth,at+10.2%like-for-likeand+18.6%reported,outperforming a global luxury beautymarket that proved dynamic again this year.LOral Luxe strengthened its leadership in fragrance,thefastest-growing category in the selective market.Thisperformance was
288、 driven by global bestsellers,such as LibrebyYves Saint Laurent,LaVie Est Belle by Lancme and Acquadi Gioby Armani,as well as launches that had an impressivestart,including Prada Paradoxe.In skincare,the Divisiongrew three times faster than the market,spurred by theultrapremium segment,with a specta
289、cular performancefrom Helena Rubinstein,cutting-edge innovations such asLancmes Rnergie H.C.F Triple Serum,and the success ofrecent acquisitions including the Japanese brand Takami.TheDivision also grew in makeup,thanks to the initiatives ofYves Saint Laurent and UrbanDecay.In an unsettled environme
290、nt,particularly in the second half ofthe year with the drastic slowdown of the Chinese market,theDivision confirmed the strength of its geographic footprintwhich has allowed it to reinforce its global market sharesince2019.The Division grew in step with the market in Europeand significantly increase
291、d its position in North Asia.LORAL UNIVERSAL REGISTRATION DOCUMENT 202237PRESENTATION OF THE GROUP INTEGRATED REPORT2022 Financial Results and Corporate Social Responsibility commitments1Active Cosmetics(1)The Active Cosmetics Division ended the year with outstandinggrowth,at+21.9%like-for-like and+
292、30.6%based on reportedfigures.Reinforcing its medical prescription leadership,the ActiveCosmetics Division strengthened its recommendation-basedmodel and grew twice as fast as the dermocosmetics market.The Division posted double-digit growth in all Zones,with aremarkable performance in North America
293、,SAPMENASSA andmainland China.La Roche-Posay and CeraVe contributedequally to the Divisions growth.La Roche-Posay,the Divisionsbiggest brand,sustained its outstanding momentum,driven byits main pillars Cicaplast and Effaclar,and by the success ofthe UVMune 400 breakthrough innovation in sun protecti
294、on.CeraVe continued to expand internationally,achievingspectacular growth in both the United States and the rest ofthe world.Vichy maintained its strong momentum thanks toDercos and the Capital Soleil UV franchise in both seasonaland daily sun protection.On the aesthetic front,SkinCeuticalsrecorded
295、double-digit growth,fuelled by the excellentperformance of A.G.E Interrupter antiwrinkle cream.Thenewly acquired brand Skinbetter Science,integrated intotheDivision in the fourth quarter,showed promising potential.Summary by geographic ZoneEurope The Zone achieved growth of+11.6%like-for-like and+12
296、.3%reported.The European beauty market grew beyond pre-pandemiclevels,driven by fragrance,makeup and sun protection.It remained dynamic during the second half of the yeardespite rising inflation.LOral again significantly outperformedthe market thanks to its diversified offering,which meets theneeds
297、of all consumer segments,and its valorisation strategy,allowing Europe to be the Groups number one growthcontributor this year.LOral outperformed in the majority ofcountries,especially Germany,the United Kingdom and Spain.The Central European countries posted very strong growth.LOral also continued
298、to outperform in e-commerce.The Consumer Products Division achieved its strongest growthof the last few years,driven by its makeup rebound and highlysuccessful launches.Leading the fragrances category,LOralLuxe had further success.The Active Cosmetics Divisionoutperformed across the Zone thanks to t
299、he success ofLa Roche-Posay and CeraVe,which continued to expandrapidly.Finally,the Professional Products Division successfullypursued its valorisation strategy,significantly contributing tothe growth of premium haircare in the Zone.North America The Zone ended the year at+10.4%like-for-like and+24.
300、6%reported,reaching the 10 billion euro mark in sales.Stronginnovation,operational agility and well-executed valorisationof the offer amid rising inflation were instrumental in achievingthis milestone.The Consumer Products Division strengthened its position,outperforming the makeup market led by NYX
301、 ProfessionalMakeup and Maybelline New York.LOral Luxe outperformedthe market in fragrance,thanks to its unique portfolio and keylaunches like Prada Paradoxe and Viktor&Rolf GoodFortune.The Professional Products Division remained strong inthe salon channel and through the SalonCentric platform,signi
302、ficantly outpacing the market;it performed particularlywell in haircare,with Pureology and Krastase.The ActiveCosmetics Division closed the year with strong double-digitgrowth,well ahead of the dermocosmetics market.CeraVeand La Roche-Posay maintained good momentum;theacquisition of the US skincare
303、brand Skinbetter Science got offto a strong start.North Asia The Zone ended the year at+6.6%like-for-like and+14.8%based on reported figures.LOrals unique brand portfolio and its digital excellencewere once again key drivers to outperform throughout theZone,in all markets and all channels.The Profes
304、sional Productsand Active Cosmetics Divisions continued their double-digitgrowth,leveraging their premium brand portfolio.TheConsumer Products Division capitalised on LOral Parisnotable success in the skincare and haircare categories,andon 3CE Stylenanda growth momentum.LOral Luxe achievedrobust gro
305、wth in a negative market;this remarkableperformance was driven by premium skincare,fragrance andthe strong acceleration of Yves Saint Laurent across the Zone.In mainland China,the beauty market was clearly affected bythe public health restrictions.In this challenging context,LOral grew appreciably,w
306、ith a double-digit increase inonline sales.Leveraging brand love and operational agility,LOral succeeded in providing consumers with qualitypremium and innovative products.This remarkable successresulted in strong offline and online market share gainsthroughout the year,as well as during Double 11,t
307、he worldsbiggest shopping festival;LOral brands topped the rankingsfor each beauty category on Tmall,further consolidating theGroups leadership,notably in luxury,where LOral surpassed30%of market share in 2022.LOral recorded double-digit growth in Japan and Korea,where it outperformed the beauty mar
308、ket,which bouncedback strongly in 2022.All LOral sites in the North Asia Zone became“carbonneutral”(2)in 2022.(1)Dermatological Beauty Division,as announced on 10 February 2023.Preivously Active Cosmetics Division.(2)A site can claim carbon neutral status if it meets the following requirements:Direc
309、t CO2(Scope 1)=0,with the exception of:the gas used for catering,the fuel oil used for sprinkler tests,fossil energy consumptions during maintenance of on-site renewable facilities,cooling gas leaks if they are lower than 130 tonnes CO2eq./year;and Indirect CO2 Market Based(Scope 2)=0.The renewable
310、energy sources must be located on site or less than 500 kilometres from the site,and be connected to the same distribution network.The carbon neutral status,as defined above,is achieved without carbon offsetting.38LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORT2
311、022 Financial Results and Corporate Social Responsibility commitments1SAPMENA SSA(1)The Zone grew strongly,at+22.0%like-for-like and+28.1%reported.In SAPMENA,the Group achieved solid growth across allmarkets despite sourcing challenges.Consumers returnedto stores and LOral recorded booming sales in
312、thebrickandmortar channel.In the Pacific,growth was mainlydriven by the fragrance and skincare categories,notably withthe expansion of La Roche Posay and CeraVe.MaybellineNew York makeup and Garnier skincare both fuelledprogression across South-East Asia.The spectacular growth inIndia was spurred by
313、 the success of the Professional ProductsDivision and the Consumer Products Division across allcategories.Growth in the Gulf States continued to gathermomentum.In Sub-Saharan Africa(SSA),LOral significantly outperformedthe market thanks to the dynamism of all Divisions,with theActive Cosmetics Divis
314、ion achieving spectacular growthfollowing the successful launch of CeraVe in the region.Latin America The Zone posted strong growth,at+18.6%like-for-like and+34.1%based on reported figures.LOral recorded double-digit growth in key countries andgained market share.All Divisions contributed to this im
315、pressiveperformance,led by the Consumer Products Division,whichsaw spectacular growth.The Group continued to increasethe weight of sales in e-commerce,while also enjoyingdoubledigit growth in brick-and-mortar thanks to a winningomnichannel activation strategy.The skincare category drove very strong
316、growth in Mexico,while Brazils performance was propelled by the remarkablegrowth of the Consumer Products Division and LOral Luxe.1.3.1.3.2022 Consolidated resultsOperating profitability and consolidated income statement202020212022 millions%2020 sales millions%2021 sales millions%2022 salesSales27,
317、992.1100.0%32,287.6100.0%38260.6100.0%Cost of sales-7,532.326.9%-8,433.326.1%-10577.427.6%Gross profit20,459.873.1%23,854.373.9%27683.372.4%R&I expenses-964.43.4%-1,028.73.2%-1138.63.0%Advertising and promotion expenses-8,647.930.9%-10,591.032.8%-12059.031.5%Selling,general and administrative expens
318、es-5,638.520,1%-6,074.218.8%-7028.818.4%OPERATING PROFIT5,547.518.6%6,160.319.1%7456.919.5%Gross profit,at 27,683.3 million euros,came out at 72.4%ofsales,compared with 73.9%in 2021,a difference of 150 basispoints.Research&Innovation expenses,at 3%of sales,increasedbymore than+10%.Advertising and pr
319、omotion expenses accounted for 31.5%ofsales,a decrease of 130 basis points.Selling,general and administrative expenses,at 18.4%of sales,decreased by 40 basis points.Overall,operating profit increased by+21.0%to 7,456.9 millioneuros,and amounted to 19.5%of sales,an improvement of40basis points.(1)SAP
320、MENA SSA:South Asia Pacific,Middle East,North Africa and Sub-Saharan AfricaLORAL UNIVERSAL REGISTRATION DOCUMENT 202239PRESENTATION OF THE GROUP INTEGRATED REPORT2022 Financial Results and Corporate Social Responsibility commitments1Net profitConsolidated profit and loss accounts:from operating prof
321、it to net profit excluding non-recurring items:millions202020212022EvolutionOperating profit5,209.06,160.37,456.9+21%Financial revenues and expenses excluding Sanofi dividends-95.9-59.6-73.0Sanofi dividends372.4378.3468.2Profit before tax excluding non-recurring items5,485.56,478.97852.1+21.2%Income
322、 tax excluding non-recurring items-1,383.1-1,535.6-1,793.4Net profit excluding non-recurring items of equity consolidated companies+0.9+0.6+1.5Non-controlling interests-4.2-5.5-6.1Net profit excluding non-recurring items after non-controlling interests4,099.04,938.56,054.1+22.6%EPS(1)()7.308.8211.26
323、+27.6%NET PROFIT AFTER NON-CONTROLLING INTERESTS3,563.44,597.15,706.6+24.10%Diluted EPS after non-controlling interests()6.348.2110.61Diluted average number of shares561,635,963559,791,545537,657,548(1)Diluted earnings per share,based on net profit,excluding non-recurring items,after non-controlling
324、 interests.Net finance costs amounted to 73 million euros.Sanofi dividends totalled 468.2 million euros.This year,inaddition to the annual dividend of 393.7 million euros,Sanofipaid an additional dividend-in-kind in the form of newly listedEuroapishares for an amount of 74.5 million euros.Income tax
325、 excluding non-recurrent items amounted to1,793million euros,representing a tax rate of 22.8%.Net profit excluding non-recurring items after non-controllinginterests stood at 6,054 million euros.Earnings per share(1),at 11.26 euros,increased by+27.6%.Non-recurring items after non-controlling interes
326、ts(2)amountedto 347 million euros net of tax.Net profit after non-controlling interests came out at5,706million euros,increasing by+24.1%.Cash flow statement,Balance sheet andCashpositionGross cash flow amounted to 7,289 million euros,an increaseof+9.8%.The working capital requirement increased by 1
327、,010 millioneuros.At 1,343.2 million euros,investments represented 3.5%of sales.Net cash flow(3),at 4,935 million euros,decreased by 12.7%.The balance sheet remains strong,with shareholders equityamounting to 27.2 billion euros.Proposed dividend at the Annual General Meeting of 21 April 2023The Boar
328、d of Directors has decided to propose a dividend of6.00 euros per share at the shareholders Annual GeneralMeeting of 21 April 2023,an increase of+25%comparedwiththe dividend paid in 2022.The dividend will be paid on28April2023(ex-dividend date 26 April at 0:00am,Paris time).Share capitalAt 31 Decemb
329、er 2022,the capital of the company is formedby 535,186,562 shares.(1)Diluted earnings per share,based on net profit,excluding non-recurring items,after non-controlling interests.(2)Non-recurring items include impairment of assets,capital gains and losses on disposals of long-term assets,restructurin
330、g costs and tax effects of non-recurring items.(3)Net cash flow=Gross cash flow+changes in working capital-capital expenditure.40LORAL UNIVERSAL REGISTRATION DOCUMENT 2022PRESENTATION OF THE GROUP INTEGRATED REPORT2022 Financial Results and Corporate Social Responsibility commitments1Operating profi
331、t by Division(1)202020212022 millions%2020 sales millions%2021 sales millions%2022 salesProfessional Products58218,8%80721.3%95421.3%Consumer Products2,38820,4%2,46620.2%2,77519.8%LOral Luxe2,27622,4%2,81622.8%3,35022.9%Active Cosmetics76625,4%99125.2%1,30325.4%DIVISIONS TOTAL6,01221,5%7,08021.9%8,3
332、8221.9%Non-allocated(1)-803-803-920-2.8%-925-2.4%GROUP5,20918,6%6,16019.1%7,45719.5%(1)Non-allocated=CentralGroup expenses,fundamental research expenses,free grant of shares expensesand miscellaneous items.The profitability of the Professional Products Division came outat 21.3%,stable compared with
333、2021.The profitability of the Consumer Products Division came outat19.8%,vs 20.2%in 2021.The profitability of LOral Luxe improved by 10 basis points,at22.9%.The profitability of the Active Cosmetics Division increased by20 basis points to 25.4%.Non-allocated expenses amounted to 925.1 million euros.Sales by business segment millions2020202120222021/2022 evolutionLike-for-likeReported figuresSkinca