BUILDING TRUST AND SUPPORTING GROWTH
Working closely with the group’s different entities, the administration, controlling and finance teams help to build and foster a solid relationship of trust with all L’Oréal’s stakeholders.
EXPERTISE, SERVICE, CONTROL
“Trust is based on constant vigilance, fairness, transparency, professionalism and an ethical approach in our relations with all stakeholders”
Christian MULLIEZ
Executive Vice-President
Chief Financial Officer
45
INTERNAL AUDIT
MISSIONS CONDUCTED
IN 2014
SOME
1,800
SHAREHOLDERS ATTENDED
THE ANNUAL GENERAL MEETING
IN 2014
READ THE INTERVIEW
How would you describe 2014 for Administration and Finance?
In a year that was less buoyant in economic terms, the teams strongly contributed to the economic and financial management of L’Oréal’s businesses, the identification of risks and opportunities, and the optimisation of resource allocation. We continued to provide all the entities with standards and best practices, and to roll out data processing, efficiency and control tools in all the business segments.
So trust is at the heart of L’Oréal’s growth?
The relationship of trust that binds the group to all its stakeholders is absolutely crucial for L’Oréal’s sustainable growth. Trust can only be established through constant vigilance, and is based on fairness, transparency, professionalism and an ethical approach in our relations with stakeholders: customers, suppliers, bankers, market authorities, rating agencies and shareholders.
How do you support the Universalisation strategy?
By developing analysis, decision-making and simplification tools such as COMPASS – the new business-oriented financial management system – the administration, controlling and finance teams support the group’s development. In 2014, the Legal and Economic Affairs departments, and the Finance, Controlling, Acquisitions and Strategic Prospective teams were once again actively involved in the analysis of market dynamics and in several strategic acquisitions.
COMPASS, A WORLDWIDE
BUSINESS-ORIENTED MANAGEMENT SYSTEM
The roll-out of COMPASS in the controlling functions is a shining example of the ongoing development of worldwide management and optimisation tools. COMPASS is a single, federating system which facilitates the management of business units, particularly by establishing a language shared by all the entities. Its capacity to adapt to the realities of subsidiaries in different markets makes it a key asset driving the Universalisation of L’Oréal.
A RELATIONSHIP OF TRUST
BASED ON DIALOGUE
The financial communications teams supply fair, accurate and accessible information about L’Oréal’s strategy, activity and prospects. They foster a relationship of trust with individual shareholders, investors, financial analysts and SRI(1) experts through regular contact.
(1) Socially Responsible Investment.
Roadshows, study trips, and financial information meetings are very important forums for presenting L’Oréal, its results and its prospects to analysts, investors and economic and financial journalists.
Inform, discuss and build relationships: these are the three goals that underpin all of our interactions with individual shareholders, whether at the Annual General Meeting, the Actionaria Shareholder Fair, shareholder meetings, or through the Individual Shareholder Consultation Committee.
To share the L’Oréal adventure and business model, digital media took centre stage in financial communication tools in 2014, with the L’Oréal Finance mobile app, the shareholders’ digital magazine L’Oréal Finance Mag, and the first online edition of the Annual Report.
L’Oréal creates value for its shareholders, particularly by redistributing 50.6% of its profits in 2014(1), in the form of a dividend that has never declined since the first listing of the share in 1963. Being a L’Oréal shareholder means investing in a solid growth stock, and sharing in the ambitious project of Universalisation and Beauty for All.
(1) Based on the dividend of 2.70 euros proposed at the Annual General Meeting of April 22, 2015.
L’Oréal offers a loyalty bonus to its registered shareholders: a dividend increase of 10%(1), i.e. 2.97 euros instead of 2.70 euros(2) in 2014. L’Oréal has already more than 30,000 registered shareholders.
(1) For shares held continuously in registered form for at least two years, with a maximum of 0.5% of capital for each shareholder. (2) Dividend proposed at the Annual General Meeting of April 22, 2015.
