Oriflame Cosmetics ppt 2009

Slide 1: 

Oriflame Cosmetics

Introduction to Oriflame : 

Introduction to Oriflame Founded in 1967 Cosmetics company selling direct 2.8 million sales consultants Operations in 61 countries of which: Franchisees in 13 countries Production facilities in Poland, Sweden, India, China and Russia 7,500 employees Latin America, 5% Asia, 6% EMEA, 30% Sales by Region 2008 CIS & Baltics, 59% *) Before restructuring costs due to the new operational platform of €8.7m. (€25.8m)

A Long Term Growth Company : 

A Long Term Growth Company 1990 - 2008: CAGR organic sales of over 17% €m

Slide 4: 

Togetherness, Spirit & PassionRespect People, Focus on Customers, Demand Quality,Seek Simplicity and Cost-efficiency, Pursue Long-term Growth To be the #1 BeautyCompany Selling Direct Our Vision Our Mission Our Offer Our Business Opportunity concept Our Values &OperatingPrinciples Our Strategy Where we’re going Our reason for being What we offer What we should be best in the world at How we work together How we create and build the business opportunity concept Our Logotype & Slogan To Fulfil Dreams THIS IS ORIFLAME

Brands and Products : 

Brands and Products Natural Swedish Cosmetics 950 products of which 1/3 new each year R&D Product stories and catalogue communication New product category Wellness Sales by Category 2008 Fragrances 20% Colour C. 26% Skin Care 25% Accessories 9% Personal & Hair Care 20% Wellness Bringing Beauty from Within

The Oriflame Catalogue : 

The Oriflame Catalogue Oriflame’s ”shop window” New offers and catalogues every third week 35 languages Forceful combination of product and catalogue development in Stockholm

Our Business Model : 

Our Business Model

Our Business Opportunity is Unique : 

The Direct Selling Industry is divided into two camps: Our Business Opportunity is Unique

Production and Supply Chain : 

Production and Supply Chain Over 700 million units sourced annually of which approx. 50% in-house Own factories in Poland, Sweden, India, China and Russia Product Fulfilment Project

Market Opportunity : 

Market Opportunity Cosmetics and Toiletries Industry Dynamics 2007 Cosmetics & Toiletries Spending per Capita EUR 2007 GDP per Capita EUR Source: Euromonitor China Turkey Brazil Germany Sweden Asian average

Projected Market Size and Growth by Region (Oriflame markets) : 

Projected Market Size and Growth by Region (Oriflame markets) Source: Euromonitor Fixed 2007 exchange rates. Value at current prices First priority Defend market share in a more competitive environment Grow market share where we have a low penetration Second priority Open markets where possible *) Real Growth (fixed prices)

Direct Selling Industry - Product categories : 

Source: Oriflame estimation based on Euromonitor data and other sources *Selected products in major markets **Includes skin care, make up and other cosmetics ***Other includes jewellery, gift items, auto care, pet products, various services (e.g. flower delivery) and other consumer goods items not accounted for elsewhere Direct selling channel categories Direct Selling Industry - Product categories USD Billion A $111bn industry with 62 million independent consultants (2007). Source: WFDSA 2008.

Financial Highlights 2008 : 

Financial Highlights 2008 Sales +20% in Euro +23% in local currency. Operating profit* +21% to €187.3m (€155.4). Operating margin* 14.% (14.0%). Net profit* €133.1m (€116.0m). *) Before restructuring costs of €14.0m in Q4’07, €8.7M in FY’08 and €25.8m in FY’08

Balance Sheet and Cash Flow Highlights : 

Balance Sheet and Cash Flow Highlights Net debt: €196.3m (€182.0m) Net debt/EBITDA: 0.91 (1.00) Full year interest cover: 7.0 (7.5) Operating cash flow €91.3m (€102.2m) Cash flow from investing activities: €-34.4m (€-36.8m) Retained dividend of €1.25 (€1.25) per share

Regional Overview, Jan - Dec 2008 : 

Regional Overview, Jan - Dec 2008

Financial Outlook and Policies : 

Financial Outlook and Policies Sales growth for 2009 is expected to be above 10% in local currency and the operating margin is expected to be around 11%. Long term financial targets are to achieve local currency sales growth of around 10% per annum and to reach 15% operating margin. Dividend policy is to distribute at least 50% of net profit annually

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 effected 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, commercialization and supply disturbances. : 

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 effected 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, commercialization and supply disturbances.