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Jean-Paul Agon, CEO of L'Oréal: "I will play the game Pact of responsibility"

LE MONDE | 16/01/2014 at 11:44 |

Interview by Nicole Vulser and Vincent Giret

Jean-Paul Agon, CEO of The Gold eal, is one of the first patrons of the CAC 40 to respond , very favorable to the proposed pact liability companies , Tuesday, Jan. 14, by François Hollande . The President of the world's leading cosmetics also claims that, in the thorny issue of the late pre-emption rights that bind the two major shareholders of L'Oréal - the family Bettencourt (30.3%) and Nestle (29.5 %) - until April, the decision is in the hands of the group Swiss . If the opportunity arises, L'Oréal will, he promises, the means to buy all or part of the shares of Nestlé.

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What do you think of the pact that François Hollande offers companies?

This is really a step in the right direction, which is what France needs.

Was there an emergency?

Yes. Well seen: all industrial production figures, trust, investment, market share, everything was in line with the decline for several years. I'm talking in general, not for L'Oréal. There is need for a strong recovery. The substance and spirit of the measures announced Tuesday in the right direction.

A do we lost eighteen months?

The important thing is that it happens. But the mobilization of all political, industrial, labor, civil society for an economy that creates value, it's been that it was necessary. The most positive is this awareness of a need for energy for the country and its economy.

I do not think this a bit outdated version, with one hand employers and other unions of gifts made to one or the other ... The world today is a global company and France maps extraordinary play . The fact remobilising everyone, all energies to believe that again it is mobilizing to reinvest and grow globally, it's a great dynamic.

The end of family social contributions by 2017 is it a good decision?

Yes. Symbolically it reflects an awareness and proof of economic realism. And I am committed: these cost savings that will come , we will fully the reinvest in the service of the company and its employees.

To create a dynamic boost creative energy, you need a trigger. It is this discourse of trust, partnership, not an opposition speech to business, as there was in the past. The lowering or elimination of family contributions will also trigger this process. I find it quite normal that the state checks if there in return for the investment and the jobs . But it does not take any more than it turns into "machi n," as General de Gaulle, with bureaucratic thirty-six commissions ... Job creation should not be in control bodies! But the process is good, I am very happy for the country.

Were you surprised?

No, I think that at some point the politicians responsible and informed eventually understand reality. It is a principle of reality. I would call it a good pact reality. To be frank, ideology no longer has a place in the economic world. We must be realistic and pragmatic.

François Hollande spoke of a risk of dropping out of France. Have you measured?

Yes, every day we see companies in difficulty, which focused on the French market alone, may péricliter and are suppressed by production costs or expenses too high. When a man policy manager is faced with this reality, he understands that the only way out is through the top.

Thirty billion is enough?

It's a start. Movement that can trigger is greater than the money invested. It is a vibrant, state of mind, a sign that can reverse the logic. We were in constant uncertainty in terms of tax policy and production costs ... Entrepreneurs, small, medium or large, were not really encouraged to undertake , to take risks in such a negative context. A From the moment you change the context, you change the whole situation. Then it has to follow in the acts, and that it is not broken by contradictory actions fortnightly. Confidence, it is not won easily, but it is lost very quickly.

You play the game?

Yes, I play the game and companies want to play the game It's for L'Oréal, the interest of the company, employees and their families.

With the current tax policy, you said having difficulty recruiting foreign managers in France and your expatriates did not want to return to work in France. What is it?

Fiscal policy in France was punitive. Indeed, with the law of the 75% tax on high salaries and all the hype that had been around, senior executives of the group had more desire to make their career in the world rather than return to France. If we reverse the process of confrontation rather negative - anti-contractors and unfavorable to people who make money - there may be an economic recovery which itself will lower their taxes and will therefore more favorable.

While other countries in Europe out of the crisis faster than France, François Hollande was he driven to such an economic turnaround?

There is a necessary skill. It is not a question of being cornered but to be faced with a reality and choose a way to go out . This is a great advance for France to be pragmatic and realistic, as became virtually every country of the world. The French government is in the process of learning , for the first time since the post-war, which is simple works better than what is complicated.

THE REDEMPTION OF SHARES IN NESTLÉ L'OREAL "OPERATION IS GOOD"

What are your results for 2013 and forecasts for 2014?

2013 was a good year. We managed to grow all our businesses and in all regions of the world. In 2014, we expect to grow and a half times faster than the global market.

What can he go in April with late preemption Reciprocal linking the main shareholders of L'Oréal and Nestlé, the Bettencourt family?

This deadline has been known for ten years since the agreements were re-signed in 2004. No one is caught off guard. There are endless possibilities. It is not we who hand. The options are in the hands of the Board of Directors of Nestlé. Its president has publicly stated that the Board of Nestlé should decide on the future of its stake in L'Oreal, which is normal. It is their job. Getting ready for all possible options.

Including the redemption of all or part of the L'Oréal shares held by Nestlé?

If the opportunity arises, we have huge financial resources allow.

What would interest shareholder of L'Oréal?

It would be a good deal: there would be a "accretion". These actions could be canceled, and the value of each share of L'Oréal would thus be increased.

Nestlé has recently sold its stake in Givaudan. Should we see a sign?

They must ask .

Discussions with Nestlé did they begin?

This is secret defense . If there are decisions will be taken at best, in the interest of everyone.

A little "business fiction." That the group will be in ten years?

The cosmetics market will probably doubled. The number of consumers of beauty products will also probably doubled since the middle class will be from 1.5 to 3billion people. The new billion consumers that we intend to conquer will, 80% of new major emerging countries. L'Oréal will be more universal, with the creation of a large The Asian Oréal L'Oréal great South America and a large L'Oréal Africa / Middle East.