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9th June 2011

!Considering the critical evolution of the world which surrounds us, in the scientific, economic and societal arenas, it has become essential to reinvent ourselves by integrating Sustainable Development into our business. !The cosmetics industry is in pole position for Sustainable Development. Our industry has developed a unique expertise by striking a balance between a natural capital and a man-made (chemical) capital by the selection and the formulation of its raw materials.

!Our longevity and our track record have demonstrated our capacity thus far to rise to the challenges of Sustainable Development !Our commitments to respecting ecosystems, while focusing on economic performance and standing up to our societal responsibility, is fully recognized by the markets and our stakeholders.

Our targets for 2015 are ambitious:

50% reduction in greenhouse gas emissions (absolute) 50% reduction in water consumption (per finished product) 50% reduction in generated waste (per finished product)

But, these are only our environmental indicators We have to bear in mind that Sustainable Development is also a societal challenge.

The strategic management of our raw materials ! The abundance of raw materials and the profusion of formulations in our current portfolio - which have contributed to the outstanding success of the Group - are becoming paradoxically a core risk for delivering sustainable growth. The optimization of our intangible value drivers ! In particular, those related to the strength and sustainability of our competitive advantage, mainly our human and intellectual capital and our stakeholders capital

Profound mutations changing the World call into question how we manage our raw materials

Increasing risks related to their access Controversy about Health and Environmental risks

By developing an adaptive response that capitalizes on our know-how in innovation and industrial development

Select those RM necessary and sufficient to ensure the performance of each

formulation, based on considerable in-house knowledge and expertise

Facilitate the management of the premium choice RM and the introduction

of new promising ones thanks to our advanced expertise in predictive methods Simplify our industrial operations, in particular the supply chain Maximize product safety up stream

Intangible value drivers contribute to increasing and sustaining our competitive advantage

Our human and intellectual capital Our relations with stakeholders

LORAL is rated AAA: sector leader amongst its peers *

!* Innovest Strategic Value Advisors, Nov. 2007 Category Personal and Household Products

A deep rooted belief in the valuable role that beauty plays in society *

* Sir Lindsay Owen-Jones / Jean-Paul Agon Rapport DD 2008

They directly impact effectiveness, innovation and opportunity costs therefore revenues, stakeholder satisfaction, corporate reputation, market value, and share price






Net tangible assets

!After Kevin Lane Keller, Strategic Brand Management, 2007

Intangible assets and Good Will

!Sous sa simplicit demploi, le Quantime Annuel cache une trs grande sophistication technique!

Raffinement de la simplicit. Une fragrance arienne construite autour d'une matire d'exception : l'iris. Raffinement de la simplicit. Une fragrance arienne construite autour d'une matire d'exception : l'iris.

Companies are living bodies : Two thirds of companies born at the eve of the 20th century have died

Your knowledge of your market and society together with our unique scientific and technical expertise are a premium asset to be leveraged for creating sustainable growth in a fast changing world We all have the same DNA - the same values - but operate in local contexts. We must speak with one voice, but with different languages in order to interact effectively with our local and regional network of stakeholders Good ideas dont always come from the same place. You can be source of innovation

All of us are responsible for nurturing sustainable growth