SUPPLY CHAIN REPORT

APRIL 2014

ORGANIC IMMORTELLEFROM CORSICA

CONTENTS

The golden sun of the corsica maquis

Proven effectiveness

THE PLANTATION PROGRAMME: A PIONEERING APPROACH

10 years of partnership and 50 hectares under cultivation

A partnership with committed producers, deeply attached to their land

BIODIVERSITY - FRIENDLY PRACTICES

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INTRODUCTION

Supply chains: the L’OCCITANE commitment

Keys events in 2013

A UNIQUE FLOWER AND A UNIQUE LAND

Immortelle: eternal, legendary and captivating

A flower with renowned anti-ageing properties

PRIORITIES: LOCAL, TRACEABILITY, SUSTAINABILITY AND EQUITY.

L’OCCITANE takes a committed approach to the supply of its ingre-dients and forges long-term partnerships with high added value, built on trust and respect.

Priority is given to small, integrated supply chains, in order to have control over the traceability and quality of the raw materials right up to their delivery.

SUPPLY CHAINS: THE L'OCCITANE

COMMITMENT

IMMORTELLE

10 years ago, L'OCCITANE took steps to avoid putting too much pressure on the wild areas of Corsica and secure supplies of immortelle. It set up an organic immortelle plantation programme, using environmen-tally friendly methods and starting with an area of 50 hectares. All of its actions were rewarded by the "Coup de Cœur du jury" award within the framework of the "Prix Entreprises & Environnement" business and environment awards, organized by the French Ministry of Ecology, Sustainable Development & Energy and the ADEME.*See behind the scenes of our Immortelle industry in Corsica as you read this report.

Since 2008, a dedicated team has guaranteed the quality of the Group's supplies and takes steps to develop sustainable supply chains, working directly with producers.

traceable supply chains60OVER 200 partners in France

OVER 30 contracts

* French Environment and Energy Management Agency

The story of the L’OCCITANE Group is intimately linked to plants, but also to the men and women who grow them.

Founder of L’OCCITANE

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celebrates its 10th anniversary!

The plantation programme

L'OCCITANE strengthens its commit-ment to the producers by increasing the length of contracts.

Contracts now covering a periodof seven years (previously five).

KEY EVENTS

IN 2013

Coup de cœur du juryL'OCCITANE was rewarded for its actions with the "Coup de Cœur du jury" award for biodiversity at the "Prix Entreprises & Environnement" awards organized by the French Ministry of Eco-logy, Sustainable Development & Energy and the ADEME.

of organic cultivation in Corsica, with new plots of land already being planted!

Over 50 hectares

carried out each year by agricultural engi-neers and technicians, to supervise and train the farmers in good cultivation and harvesting practices.

10 field missions

2 new producersjoin the adventure! A total of 8 partner pickers and distillers.

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IMMORTELLE OWES ITS NAME TO ITS EXCEPTIONAL LONGEVITY, FOR THE FLOWER NEVER FADES, EVEN AFTER IT HAS BEEN PICKED…

IMMORTELLE : ETERNAL,

legendary and captivating

Its Latin name, Helichrysum, means "golden sun" – which describes its magnificent golden flowers. For the people of Corsica, immortelle is a flower with a captivating scent that is emblematic of the maquis – the island's fragrant scrubland.

The analysis made by our fragrance evaluator shows that the scent of immortelle evokes warm colours with red and orange hues. Warm and dry floral notes, with balsamic undertones, are also distinctly present.

It is said that, in the 19th century, Napoleon's boat was guided by the powerful, aromatic scents of this plant when he returned home to Corsica.

GOLDENSUN

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A FLOWER WITH RENOWNED

anti-ageing PROPERTIESA GREEK MYTH FROM HOMER'S ODYSSEY TRACES THE EXISTENCEOF IMMORTELLE EVEN FURTHER BACK AND EVOKES ITS ANTI-AGEING AND ANTI-BRUISING PROPERTIES. IT TELLS OF HOW PRINCESS NAUSICAA, WHO SAVES ODYSSEUS WHEN HE IS SHIPWRECKED, RUBBED HIS BODY WITH IMMORTELLE AS AN ELIXIR OF YOUTH.

In Corsica, immortelle is used by the older generation, who point out its ability to help reduce bruising and treat burns. These properties are now used to advantage in aromatherapy.

Immortelle essential oil was analysed by the L'OCCITANE Laboratories, who discovered that it contains unique anti-ageing active ingredients, including a particu-lar molecule: neryl acetate.

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THE BALAGNE REGION IS ALSO KNOWN AS THE "GARDEN OF CORSICA". IT WAS HERE, AT THE HEART OF THE ISLAND'S FRAGRANT MAQUIS, THAT L'OCCITANE DISCOVERED THIS EXTRAORDINARY WILD PLANT IN 2001.

THE GOLDEN SUN

of the CORSICAN MAQUIS

Helichrysum italicum ssp italicum from Corsica must not be confused with its cousins from Italy or the Balkans, which are not the same.

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ORIGIN: CORSICA ORIGIN: BALKANS

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Neryl acetate

Neryl acetate

CHROMATOGRAPHIC PROFILES OF IMMORTELLE ESSENTIAL OIL

Of the 500 recorded species of Helichrysum, the immortelle endemic to corsica has specific properties.Its high concentration of the anti-ageing active ingredient, neryl acetate, gives it a unique quality, which is due to:• The intrinsic qualities of the plant• The terroir (soil, climate, region) and ecosystems• Local knowledge and skills• Sun exposure

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PROVEN

EFFECTIVENESSL’OCCITANE HAS FILED FIVE PATENTS, WHICH ATTEST TO THE INNOVATIVE NATURE OF ITS RESEARCH INTO THE REMARKABLE ANTI-AGEING EFFECTIVENESS OF ITS FACE CARE PRODUCTS MADE WITH IMMORTELLE FROM CORSICA COMBINED WITH OTHER ACTIVE INGREDIENTS.

TO ALLOW ADDITIONAL BIOLOGICAL ACTIVITIES, L’OCCITANE SELECTED:

- New immortelle cell extracts, obtained using an ecological and innovative extrac-tion technique that fragments the very "core" of the flower.

- Its powerful active ingredients: immortelle essential oil, obtained by distillation and floral water.

COMBINATION OF IMMORTELLE AND MYRTLE ESSENTIAL OILS AND NATURAL ACTIVE INGREDIENTS

2ND AND 3RD PATENTS:

2009

IMMORTELLE CELL EXTRACT

4TH PATENT:

2011

COMPLEX OF NATURALLY DERIVED ACTIVE INGREDIENTS

5TH PATENT:

2013

IMMORTELLEESSENTIAL OIL

1ST PATENT

2001

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Originally, the immortelle plant was picked in the wild, in the Corsican maquis. The L'OCCITANE Immortelle face care range was launched in 2001 and was an immediate success. As this success continued to grow, so did the need for immortelle essential oil. When the flowers are picked in accordance with sustainable guidelines, this actually "cleans" the maquis and indirectly helps to prevent fires.

However, this method, used in the past, did not ensure a sustainable supply of immortelle and there was a risk of putting too much pressure on the wild areas of Corsica. As a result, L’OCCITANE set up the first plantation programme in Corsica in 2004, with 50 hectares of immor-telle planted using organic methods, to protect the natural environment and encourage biodiversity.

2011Launch of programme no. 2 (objective: 60 ha of cultivation)

AN INNOVATIVE PROGRAMME THAT IS

celebrating ITS 10TH ANNIVERSARYTHE IMMORTELLE RANGE- A pioneering approach in a uniqueterroir (soil, climate, region, etc.)

- A range that has been symbolicof L’OCCITANE since 2001

2001 Launch of the Immor-telle range

2003First germina-tion trials in Corsica

2004- First hectare planted- Launch of programme no 1 (objective: 50 ha)

2007First "real" harvest

A COMPLETE AND INTEGRATED SUPPLY CHAIN

- Quality and traceability are guaranteed from the harvest to the distillation of the plant, which is carried out in five distilleries in Corsica. - L’OCCITANE has contributed financially to setting up the cultivation, while its commitment to the producers and distillers is demonstrated through multi-year contracts.

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DETERMINED TO MAKE THIS PROGRAMME AN INNOVATIVE AND SUSTAINABLE PROJECT, L'OCCITANE WORKS WITH LOCAL AND PROVENÇAL TECHNICIANS TO FIND APPROPRIATE, ECOSYSTEM-FRIENDLY TECHNICAL APPROACHES.

The producers are mainly located on the eastern coast of Corsica and in the Balagne region, which offer a wide range of pedoclimatic and environmental conditions.

The support of local organizations and the funding from L'OCCITANE for the plantation programme have been levers to convince the farmers to join this adventure.

The immortelle industry is based around 8 corsican farmers and distillers who produce the essential oil, as well as technicians who supervise the project, and L’OCCITANE, who providesan outlet for the total volume produced.

A PARTNERSHIP WITH COMMITTED PRODUCERS,

deeply attached TO THEIR LAND

1 TON OF IMMORTELLE= approx. 2 kg of essential oil

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THE YELLOW IMMORTELLE FLOWERS DO NOT NEED ANY SPECIAL TREATMENT: THESE HARDY, ROBUST PLANTS ARE USED TO THE ARID SOIL OF THE MAQUIS.

This production method makes it possible to protect the environment and support non-polluting farming methods. The agronomic techniques practised help to preserve soil fertility and invigoratethe soil.

CHOOSING ORGANIC FARMING,

to respect THE ENVIRONMENT

The prohibition of the use of pesticides, chemical fertilizers and GMO seeds contributes to the quality of the water and helps to preserve the landscape and genetic heritage of the region. Helichrysum italicum is adapted to the Mediterranean climate and needs no irrigation. As a result, it does not have a negative effect on water management.

Our plots of immortelle are certified in accordance with the European organic farming standards and controlled by Ecocert.

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In order to preserve the sites where immortelle grows naturally, as well as the genetic heritage of Helichrysum italicum, the plots of land were planted with seeds from wild immortelle plants that grow close to the cultivation areas. This practice makes it possible to preserve the gene-tic diversity of the plant and ensure a continuity between the natural and cultivated environments without any negative interactions.

An application has been filed for the PGI (Protec-ted Geographical Indication) label, and a workshop dedicated to the production of certified-organic plants is now operational in Upper Corsica.

DUE TO ITS INSULARITY AND THE DIVERSITY OF ITS LANDSCAPES, CORSICA IS HOME TO OVER 3,000 PLANT SPECIES. IMMORTELLE BELONGS TO THE 5% OF ENDEMIC SPECIES.

CONSERVING NATURAL

RESOURCES

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AGRO-ECOLOGICAL PRACTICES

to support BIODIVERSITY

The banks and hedges are preserved, to provide an ecological reserve

for the fauna and flora.

The plots of land are farmed semi-extensively or extensively, in

particular by sheep grazing, to limit the use of mechanized equipment.

The low input needs of the cultiva-tion help to considerably reduce the

impact of productionon climate change.

Ecological continuity of the agro-pastoral areas

Sheep grazing on naturalgrass cover

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ALL OF THE ACTIONS TAKEN WITH OUR EIGHT CORSICAN PARTNERS TO COMBINE THE SECURING OF SUPPLIES WITH RESPECT FOR THE ENVIRONMENT HAVE BEEN REWARDED BY THE "COUP DE CŒUR DU JURY" AWARD FOR BIODIVERSITY.

RECOGNITION FOR OUR ACTIONS

supporting BIODIVERSITY

APRIL 2014

A DESIRE FOR CONTINUITY

Communication about the plantation programme has given momentum to the Corsican immortelle industry and the region now has over 100 hectares of organically immortelle. The L’OCCITANE programme has re-energized the aroma-tic and medicinal plant industry, enabling young farmers to become professionalized thanks to the supervision of the technicians.To ensure the sustainability of this industry and renew ageing cultivations, a second plantation programme has been set up. In just two years, 80% of the target (to plant 60 hectares) has been achieved.

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