1. Confidential Business Review 2011
Cost Reduction
July, 28th 2011
Confidential Business Review 2011

2. On Going Projects and Proposals
L’ORÉAL
Cost Reduction
On Going Projects and Proposals
Confidential Business Review 2011

3. ON GOING
PROJECTS
Confidential Business Review 2011

4. PP METALIC FRONT LABELS
PROJECT 1 - Printing reduction without appearance downgrade SH- CD
PP METALIC FRONT LABELS
1- Pantone 356 – Flexo
2- White Base – Silk
3- Pantone Yellow – Offset
4- Pantone 165 – Offset
5- Pantone 161 – Offset
6- White – Offset
7- Pantone 3435 – Offset
8- White text – Silk
9- Varnish
1- Pantone 356 – Flexo
2- Pantone 161 – Offset
3- White – Offset
4- Pantone 3435 – Offset
5- White Base+Text – Silk
6- Pantone Yellow – Offset
7- Pantone 165 – Offset
8- Varnish
Saving: One Silk Screen
1,24 % = € / year
Confidential Business Review 2011

5. TRANSPARENT FRONT LABELS
PROJECT 2 - Printing reduction without appearance downgrade SH - CD
TRANSPARENT FRONT LABELS
1- Silver – Hot stamping
2- White Base – Silk
3- Pantone Yellow – Offset
4- White – Offset
5- Pantone 165 – Offset
6- Pantone 3435 – Offset
7- White text – Silk
8- Silver Silk
9- Lamination
1- Silver – Hot stamping
2- White Base – Silk
3- Pantone Yellow – Offset
4- White – Offset
5- Pantone 165 – Offset
6- Pantone 3435 – Offset
7- White text – Silk
8- Silver Silk
9- Varnish
Saving: Lamination Film
4,51 % = € / year
Confidential Business Review 2011

6. Actual Size: 55 x 127 mm Proposal: 55 x 105 mm
PROJECT 3 - Back Label - Height Reduction for Better Raw Material Use SH - CD
Actual Size: 55 x 127 mm
Proposal: x 105 mm
127mm
Current Material:
Avery GCEX
A -Proposal:
105mm
5,82% saving
B -Proposal:
Ritrama PE 85
Avery PE 85
6,28% saving
PS: Proposed die cut 47x115 doesn`t allow the use of the current art work.
Saving: Less Raw Material
5,82 % = € / year
Confidential Business Review 2011

7. PROJECT 4 – Productivity for all Fructis Products
NEGOTIATED JUNE 2011;
Saving: 3,00 % = € / year
Confidential Business Review 2011

8. Current Material: Avery - GCEX Proposal: Ritrama - PE85 Avery - PE85
PROJECT 5 - Front Label - Raw Material Supplier – Substrate Changing SH - CD
Current Material:
Avery GCEX
Proposal:
Ritrama - PE85
Avery PE85
2,81% saving
2,81% saving
Saving:
2,81 % = € / year
Confidential Business Review 2011

9. PROJECT 6 – Digital Printing for Short Runs
FIRST LABEL JUST DELIVERED;
EXCELLENT OPPORTUNITIES FOR:
L’ORÉAL PROFESSIONAL PRODUCTS AND PROMOTIONAL LABELS;
Confidential Business Review 2011

10. FRUCTIS
Proposals
Confidential Business Review 2011

11. All Back Labels substrate: GCEX Transparent to PE White SH - CD
100% coverage Flexo White
31% coverage Silk White
Change to PE White Ritrama
Saves: Ink
Setup
Plates
Screens
Saving: 2,85 % = € / year
Confidential Business Review 2011

12. ELVIVE – ELSÈVE Proposals
Confidential Business Review 2011
Confidential Business Review 2011

13. Back Label - Height for Better raw Material Use Elvive / Elsève
Actual Size: 60 x 125 mm
Actual Size: 56 x 125 mm
Proposal: x 105 mm
125mm
105mm
Current Material:
Avery GCEX
A -Proposal:
Avery -GCEX
7,81% saving
B -Proposal:
Ritrama PE85
Avery PE 85
8,95% saving
Saving: Less Raw Material
7,81 % = € / year
Confidential Business Review 2011

14. PROJECTS SUMMARY ON-GOING PROJECTS PROJECT PRODUCT ACTION
SAVING (in K€)
Taxes Included
Net 1
FRUCTIS
White Silk Reduction 8 6 2
Varnish instead of Lamination 16 13 3
Back Labels Size Reduction 35 28 4
Productivity
132
104 5
ALL
Raw Material changing
169
133
PROFESSIONAL
Digital Printing
???
TOTAL
360
284
2011 EXPECTED TURNOVER FOR L'ORÉAL (in K€)
5369
4228
EXPECTED SAVINGS IMPACT
6,71%
PROPOSALS
Back Labels Substrate Changing 19 15
ELSÈVE/ELVIVE 57 45 76 60
1,42%
TOTAL - ON-GOING + PROPOSALS
436
343
8,12%
Confidential Business Review 2011

15. SUBSTRATE SUPPLIERS Market Overview Confidential Business Review 2011

16. Substrate Suppliers Established in Brazil since 1967;
Good quality and service;
Price Increasing;
GCEX – strong impact PP+PE;
Baumgarten’s main Supplier;
Opportunities – Near Future
GCEX NG – PET liner 23µ;
GCEX – PET liner 30µ;
Confidential Business Review 2011

17. Substrate Suppliers
Starting Production in Brazil (acquisiton of Gumtac);
Good quality and service;
Competitive Prices;
Baumgarten’s current supplier for Couche Paper and Raflex;
Opportunities – Near Future
RAFLEX – Glasine liner;
Confidential Business Review 2011

18. Substrate Suppliers Production in Chile; Warehouse in Brazil;
Improving Service in Brazil;
Competitive Prices;
Small Baumgarten Supplier;
Opportunities – Near Future
PE 85 - Glasine liner;
Confidential Business Review 2011

19. FINAL COMMENTS
Confidential Business Review 2011

20. Confidential Business Review 2011
Cost Reduction
July, 28th 2011
Confidential Business Review 2011