Oriflame Holding AG

FIRST QUARTER 2017

INVESTOR PRESENTATION
Magnus Brännström, CEO
Gabriel Bennet, CFO
Nathalie Redmo, Sr. Manager IR
May 10, 09.30 CET
 FIRST QUARTER
HIGHLIGHTS

©Oriflame Cosmetics AG, 2017 2

 Q1 HIGHLIGHTS

Sales 8% in lc, 11% in €

Strong performance in LA and Asia & Turkey
Continued improvements in Africa
Weaker underlying sales in CIS
Q2 update: 11% QTD and 9% YTD lc sales

Operating margin 8.8% (6.9%)

Currency impact +90 bps
Net profit €19.5m (€10.7m)

Strong net financial position

Capital Markets Day 2017

©Oriflame Cosmetics AG, 2017 3

 OPERATIONAL HIGHLIGHTS

Price/mix +11%
Unit decline -3%

Registered actives -4%

Lc productivity +12%

Double-digit growth for strategic product categories

Skin Care and Wellness

New launches in Fragrances and Colour Cosmetics

Continued strong online development

Increased use of mobile apps
Launch of new training modules

Improved capacity utilisation in manufacturing

Insourcing efforts, favourable product mix and
pre-production
©Oriflame Cosmetics AG, 2017 4
 REGIONS Europe & Africa

CIS

Latin America
Asia &Turkey

Q1 Regional Split
11% 9% 7%
(10%) (8%) (7%)
35% 34%
(34%) (31%) 23%
27% 46% (32%)
24%
(25%) (41%)
(27%)

30% 30% 24%

(29%) (36%) (20%)
SALES REGISTERED ACTIVES OPERATING PROFIT

©Oriflame Cosmetics AG, 2017 5

 LATIN AMERICA
LTM, LTM,
Q1’17 Q1’16 Change April’16 - April’15 - Change YE'16
March’17 March’16

Sales force and productivity Sales, €m 35.3 29.4 20% 154.5 135.9 14% 148.6

Lc sales - - 21% - - 24% -

Registered actives +9%
Operating profit,
3.3 2.6 27% 22.4 16.8 34% 21.7
€m
Lc productivity +11%
Operating margin 9.5% 8.9% - 14.5% 12.3% - 14.6%
€ productivity +10%
Registered
Continued strong performance in Mexico and Peru actives ‘000
266 243 9% 266 243 9% 288

Strong leadership development

€m Net Sales LTM Op Margin % LTM
Healthy productivity levels
160

Improvements in Ecuador 140

20%

Operating margin +60 bps 120

15%

Negative currency movements 100

Sales leverage 80
10%

60
Price increases
40 5%

20

0 0%
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
©Oriflame Cosmetics AG, 2017 6
 EUROPE & AFRICA
LTM, LTM,
Q1’17 Q1’16 Change April’16 - April’15 - Change YE'16
March’17 March’16
Sales force and productivity Sales, €m 81.3 82.4 (1%) 328.3 329.8 (0%) 329.4

Registered actives +4% Lc sales - - 6% - - 5% -

Operating profit,
10.4 11.8 (11%) 48.5 49.7 (2%) 49.9
Lc productivity +2% €m

€ productivity -5% Operating margin 12.8% 14.3% - 14.8% 15.1% - 15.2%

Registered
802 768 4% 802 768 4% 812
actives ‘000
Stable sales in Central Europe
Healthy growth in Poland and Romania €m Net Sales LTM Adj. Op Margin % LTM

350

Weaker development in Western Europe 20%

300
Continued improvements in Africa
15%
Macroeconomic and exchange rates challenges 250

Operating margin -150 bps 10%

200

Negative currency movements

5%
150
Higher selling and marketing expenses
Positive impact from price increases 100 0%
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

©Oriflame Cosmetics AG, 2017 7

 CIS
LTM, LTM,
Q1’17 Q1’16 Change April’16 - April’15 - Change YE'16
March’17 March’16
Sales force and productivity Sales, €m 99.5 86.6 15% 338.6 365.2 (7%) 325.7

Registered actives -22% Lc sales - - (6%) - - (4%) -

Operating profit,
11.1 7.2 53% 35.8 30.1 19% 31.9
Lc productivity +20% €m

€ productivity +46% Operating margin 11.2% 8.4% - 10.6% 8.2% - 9.8%

Registered
889 1,133 (22%) 889 1,133 (22%) 926
actives ‘000
Russia lc sales -4%
€m Net Sales LTM Adj. Op Margin % LTM
High online activity and leadership development
600
20%
Weaker underlying sales performance
500

Favourable currency situation allows growth focus 400

15%

Visit by local authorities 300

10%

200
Operating margin +280 bps
5%
Favourable exchange rates 100

Price increases 0 0%
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

©Oriflame Cosmetics AG, 2017 8

 ASIA & TURKEY
LTM, LTM,
Q1’17 Q1’16 Change April’16 - April’15 - Change YE'16
March’17 March’16
Sales force and productivity Sales, €m 118.2 103.9 14% 448.6 368.6 22% 434.3

Registered actives +8% Lc sales - - 16% - - 26% -

Operating profit,
21.1 14.7 43% 89.5 60.3 48% 83.1
Lc productivity +7% €m

€ productivity +6% Operating margin 17.8% 14.2% - 19.9% 16.4% - 19.1%

Registered
1,034 961 8% 1,034 961 8% 980
actives ‘000
Strong performance in China, Indonesia, Turkey
and Vietnam Net Sales LTM Op Margin % LTM
€m
Weak development in Thailand 500
20%
450
Negative impact from demonetization in India
400

Operating margin +360 bps 350 15%

300
Favourable geographical mix
250
10%
Sales leverage 200

150
Positive timing of costs 5%
100

50

0 0%
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

©Oriflame Cosmetics AG, 2017 9

 FINANCIALS

©Oriflame Cosmetics AG, 2017 10

 Q1 INCOME STATEMENT LTM, LTM,
Q1’17 Q1’16 Change April’16 - April’15 - Change YE'16
March’17 March’16
Sales mix
Sales, €m 340.1 305.8 11% 1,283.7 1,209.6 6% 1,249.4
Unit sales -3% Lc sales - - 8% - - 11% -

Price/mix +11% Adj. operating

profit, €m
29.8 21.1 41% 127.8 104.1 23% 119.2

Adj. operating
8.8% 6.9% 10.0% 8.6% 9.5%
Gross margin 71.6% (69.5%) margin

Registered
Positive currency impact +90 bps actives ‘000
2,991 3,105 (4%) 2,991 3,105 (4%) 3,006

Positive price/mix
€m
Supply chain efficiency measures Net Sales LTM Adj. Op Margin % LTM

1400
Operating margin +190 bps 20%
1200
Higher costs for share incentive plan and bonuses
1000 15%
Higher selling and marketing expenses
800
Lower distribution and infrastructure expenses
10%
600
Lower administrative costs
400
5%
Net profit €19.5m (€10.7m)
200
Diluted EPS €0.34 (€0.19)
0 0%
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

©Oriflame Cosmetics AG, 2017 11

 GROUP CURRENCY IMPACT ON SALES SINCE 2010

©Oriflame Cosmetics AG, 2017 12

 10%
12%
14%
16%
18%

0%
2%
4%
6%
8%
Q1 '11

0%
Q2 '11

2%

©Oriflame Cosmetics AG, 2017

Q3 '11

8%
Q4 '11

5%
Q1 '12

7%
Q2 '12

4%
Q3 '12

0%
Q4 '12

3%
PRICE/MIX IMPACT ON SALES

Q1 '13

3%
Q2 '13
5%

Q3 '13
9%

Q4 '13
5%

Q1 '14
4%

Q2 '14
7%

Q3 '14
7%

Q4 '14
9%

Q1 '15
9%

Q2 '15

Q3 '15
14% 14%

Q4 '15
15%

Q1 '16
16%

Q2 '16
12%

Q3 '16
11%

Q4 '16
12%

Q1 '17
11%

8%
Average

13
 Q1 SALES AND OPERATING MARGIN ANALYSIS

Sales vs. PY OP Margin vs. PY

%
%
10 0,4% 0,6%
15 LC
Sales
€
Sales
0,8% 8,8%
8% 11% 0,9% (0,0%) (0,3%) (0,5%)
8
6,9%
10 3%
6
(14%)
(16%) 4
5 (2%)
11%
(16%)
(2%) 2
0
(3%)
0

Selling & Marketing

Admin.
OM Q1 2016

OM Q1 2017
Other income
Price / mix

Distrib. & Infra.

Product cost
FX
-5
Units Price / mix FX
Oriflame has made certain assumptions to make/calculate an estimate of
the effects of currency, price/mix, etc. on the operating margin.

©Oriflame Cosmetics AG, 2017 14

 €m Net Debt at hedged values*
Net Debt at hedged values* / EBITDA LTM
FINANCIAL POSITION 300 1.6

1.4
250
1.2
Net debt at hedged values €28.0m (€78.7m)
200
1.0
Net debt €92.7m (€133.8m)
150 0.8
Net debt at hedged values/ EBITDA (LTM) 0.2 (0.6)
0.6
100
Net debt/EBITDA (LTM) 0.6 (1.1)
0.4
Interest cover (Q1): 8.2 (4.7) 50
0.2
Interest cover (LTM): 7.5 (5.2) 0 0.0
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
* Adjusted for fair value movements of the USD private placement notes

Interest cover (LTM)

8.0
COVENANT DISCLOSURE
7.0
Consolidated Net Debt to Consolidated EBITDA: 0.3
(covenant at ≤ 3.0 times) 6.0

Consolidated EBITDA to Consolidated Finance costs: 5.0

18.2 (covenant at ≥ 5.0 times) 4.0

Consolidated Net Worth: €212m 3.0

(covenant at ≥ €120m)
2.0

1.0

0.0
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
©Oriflame Cosmetics AG, 2017 15
 Operating cash flow LTM Capex LTM
€m
CASH FLOW 150

125
Q1’17 Q1’16 LTM’17 YE ’16

Net profit before income tax, 100

27.4 15.7 112.2 100.5
€m
75
Op. profit before changes in
34.3 18.5 138.8 123.0
wc, €m
50
Change in working cap. and
(23.4) 13.7 5.5 42.6
provisions, €m 25

Operating CF, €m (1.5) 21.5 90.1 113.1

0
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
CF Investing Activities, €m (3.0) (1.7) (13.2) (11.9)

Total inventory
Q1 operating cash flow €-1.5m (€21.5m) €m

200
Negative timing of working capital between Q4 2016 and Q1 2017
Net profit before tax €+11.7m
Non-cash items in net profit before tax €+4.1m 150

Impact from changes in working capital and

provisions €-37.1m
100
Inventories €-19.5m
Receivables, prepaid exp., asset derivatives €-2.0m
50
Payables, accrued exp., liability derivatives €-16.2m
Provisions €0.6m
Interest, charges, taxes €-1.7m 0
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
©Oriflame Cosmetics AG, 2017 16
 CONCLUSIONS
AND GOING FORWARD

©Oriflame Cosmetics AG, 2017 17

 CONCLUSIONS AND GOING FORWARD

Sustainable sales development with healthy

profitability improvements:
Euro growth and lc growth
Strong net profit increase

Continued success from online leaders and strategic

product categories

Efficiency measures in manufacturing render results

Macroeconomic challenges remain

Positive start of 2017

©Oriflame Cosmetics AG, 2017 18

 CAUTIONARY STATEMENT
Some statements herein are forward-looking and the actual outcome could be materially different.
In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors like,
for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of
competing products and their pricing, product development, commercialisation and supply disturbances.

©Oriflame Cosmetics AG, 2017 20