Loreal 2013 Annual Report Download - page 7
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Please find page 7 of the 2013 Loreal annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Thisstrong commitment to
innovation isat the heart
ofL’Oréal andenables us to
stay onestep ahead. To rise
toit, we have once again
increased our Research and
Innovation budgets, which
have risen faster than our
sales. We are investing in all
areas: in Advanced Research
and in formulation; in France
and in our five regional hubs,
anchored in the planet’s
major cosmetics markets.
Another reason is the vitality
ofour brands. They play a key
role in these successes.
Thebrands are always
reinventing themselves,
to stay perfectly attuned to
consumers who are constantly
changing. Today more than
ever, our brand portfolio is
the most varied, richest and
most powerful in the industry.
It is this richness that enables
us to meet the whole world’s
beauty expectations so
effectively.
Through globalisation, our
brands have strengthened
their positions across all
geographic zones. Moreover,
the group’s growth iswell-
balanced: Western Europe
remains very solid, North
America recorded another
year of growth and market
share gains in a less buoyant
context, and the NewMarkets
excluding Japan posted
double-digit growth.
And in terms of results?
2013 was also a good year for
progress in results and in
profitability, which reached a
record level. These results
once again confirm the
strength of L’Oréal’s business
model, which creates value
and generates cash flow.
Theyillustrate the group’s
ability to continue to deliver
sustainable and profitable
growth. Their solidity, together
with the company’s very
favourable prospects, have
led the Board of Directors to
propose to the next Annual
General Meeting a further
significant increase in
dividend of +8.7% to 2.50 euros.
Is governance one of
the factors in L’Oréal’s
success?
There is no doubt about it.
Thequality of governance
isunderpinned by highly
committed directors endowed
with complementary expertise.
They ensure that all decisions
assist in the implementation
ofthe strategic orientations
they have approved.
TheBoard draws on the quality
of the contribution made by
itsspecialised committees,
whose remits have been
expanded since their creation.
In 2014, the Board will propose
to the Annual General
Meeting the appointment as
new Board Director of
MrsBelen Garijo, of Spanish
nationality, President and CEO
ofMerck Serono, the
pharmaceutical subsidiary
ofthe German group Merck.
Out of a total of fourteen
directors, five women will have
a seat on the Board, and there
will be a substantial proportion
of independent directors.
Ingovernance matters,
L’Oréalwants its behaviour
tobe exemplary too.
WE HAVE OUTPERFORMED
THE MARKET ACROSS
ALL DIVISIONS AND
GEOGRAPHIC ZONES.
“
“
IN FEBRUARY 2014 YOU ANNOUNCED A STRATEGIC TRANSACTION
UNDER WHICH L’ORÉAL WILL BUY 48.5 MILLION OF ITS OWN SHARES
FROM NESTLÉ. WHAT DOES THIS DEAL INVOLVE?
This transaction represents a very positive strategic move for L’Oréal,
itsemployees and its shareholders. The buyback of 48.5 million of
ourown shares, that is 8% of share capital, will be partially financed
through the disposal to Nestlé of our 50% stake in GALDERMA for an
enterprise value of 3.1 billion euros, and for the remainder in cash for
anamount of 3.4 billion euros. L’Oréal is focusing exclusively on its
cosmetics business. L’Oréal will benefit from the very significant and
reinforced presence of thefounding Bettencourt Meyers family, who will
continue to fully support the company as it always didinthe past.
Furthermore, Nestlé, which has always been a loyal andconstructive
shareholder, will continue to provide its active support. Lastly, all of
L’Oréal’s shareholders will benefit from this transaction, with an
accretive impact on the company’s earnings, resulting from the
buyback and subsequent cancellation of L’Oréal sharesheld by Nestlé.
⁄ STRATEGIC TRANSACTION
BETWEEN L’ORÉAL AND NESTLÉ
•••
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