Global economic performance at the service of the brands and the commercial entities 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 involve tracking the total landed cost, i.e., the final full cost of a product, which includes 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 € million) PRODUCTION AND SALES OF THE OPERATIONAL DIVISIONS BY GEOGRAPHIC ZONE IN 2021: PRODUCTION CLOSE TO ITS MARKETS 332 329 2019 2020 2021 278 11.3% 5.5% 10.1% 30.5% 9.5% 7.2% Latin America North Asia 49.1% 31.5% 20.0% 25.3% Europe North America SAPMENA - SSA Production Sales L ’ ORÉAL I UNIVERS AL REGISTRATION DOCUMENT 2021 35 PRESENTATION OF THE GROUP INTEGRATED REPORT Business model: Economic and corporate excellence to create lasting value for all 1