oriflame capital markets day 2017 -...

Oriflame Capital Markets Day 2017Celebrating 50 years and looking forward

February 16, 2017

2

13.00 – 14.30

Oriflame celebrating 50 years Alexander af Jochnick, Chairman of the Board

Business Area Update, Strategic direction Magnus Brännström, CEO & President

2016 Financials Gabriel Bennet, CFO

14.45 – 15.45

Product Culture & Hero Sets Alexandra de Greck, VP Global Product Marketing

The Success Plan, Digital Michael Cervell, SVP Global Direct Sales

Sustainability Antonia Simon-Stenberg, VP Sustainability & Quality

Management

16.00 – 17.00

Financial Outlook Gabriel Bennet, CFO

Concluding remarks Magnus Brännström, CEO & President

Q&A

AGENDA

©Oriflame Cosmetics AG, 2017

Alexander af Jochnick, Chairman of the Board

February 16, 2017

Oriflame celebrating

50 years

Magnus Brännström, CEO & President

February 16, 2017

Oriflame celebrating

50 years

5©Oriflame Cosmetics AG, 2017

1960s 1970s 1980s 1990s 2000s 2010s

ORIFLAME CELEBRATING 50 YEARS

2016Sales: €1,249.4m

Markets: 60+

Beauty company selling direct

Around 3 million consultants

€1.2 billion in sales annually

>90% of orders online

Around 1,000 cosmetic products

Manufacturing in China, India, Poland & Russia

Around 6,000 full-time equivalent employees


LONG-TERM FINANCIAL TARGETS

-5%

5%

15%

25%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Lc sales growth Target

10%LOCAL SALES

DEVELOPMENT

15%OPERATING MARGIN

0.0%

5.0%

10.0%

15.0%

2004 2005 2006 2007 2008 2009 2010* 2011* 2012 2013* 2014* 2015* 2016

Operating margin Target

* Adjusted Operating margin

©Oriflame Cosmetics AG, 2017 7

RAPID SHIFT OF GEOGRAPHIC FOOTPRINT

Asia

&Turkey

Europe

& Africa

CIS

Latin

America

SALES SPLIT

2010

OPERATING PROFIT

2016

2010 2016

12%

27%

26%

35%

6%

25%

56%

13%

12%

27%

17%

45%

1%

24%

66%

9%


BUSINESS AREA UPDATE


LATIN AMERICA

0%

5%

10%

15%

20%

0

30

60

90

120

150

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Net Sales LTM Op Margin % LTM€m

YE'16 YE'15 Change

Sales, €m 148.6 136.9 9%

Lc sales - - 22%

Operating profit, €m 21.7 16.0 36%

Operating margin 14.6% 11.7% -

Registered actives ‘000

288 263 10%

Sales 22% in lc, 9% in €

Most markets performed well

Solid development in Mexico and Peru

- Strong leadership development

- Successful incentive programs

MarketSales 2016

(€m)

% of Business

Area Sales

% of Group

sales

1. Mexico 81.2 55% 7%

2. Colombia

3. Peru

Markets: Chile, Colombia, Ecuador, Mexico, Peru.


EUROPE & AFRICA

0%

5%

10%

15%

20%

100

150

200

250

300

350

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Net Sales LTM Adj. Op Margin % LTM€m


Stable sales development in Europe

- Strongest performance in main markets

Improved performance in Africa

- Macroeconomic and exchange rate

challenges remain

YE'16 YE'15 Change

Sales, €m 329.4 329.1 0%

Lc sales - - 4%




812 774 5%

MarketSales 2016

(€m)

% of Business

Area Sales

% of Group

sales

1. Poland 47.6 14% 4%

2. Romania

3. Morocco

Markets: Algeria, Bosnia, Bulgaria, Croatia, Czech Rep., Denmark, Egypt, Estonia,

Finland, Greece, Holland, Hungary, Kenya, Kosovo, Latvia, Lithuania, Macedonia,

Montenegro, Morocco, Nigeria, Norway, Poland, Portugal, Romania, Tanzania, Tunisia,

Serbia, Slovakia, Slovenia, Spain, Sweden, Uganda, UK/Ireland.


CIS

0%

5%

10%

15%

20%

0

100

200

300

400

500

600

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16


Sales -2% in lc, -16% in €

Focus on sustainable growth and improved

margins

Strong leadership development and online activity

Progress made with realizing implemented price

increases

YE'16 YE'15 Change

Sales, €m 325.7 387.0 (16%)

Lc sales - - (2%)

Operating profit, €m 31.9 35.5 (10%)



926 1,281 (28%)

Markets: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan,

Kyrgyzstan, Moldova, Mongolia, Russia, Ukraine.

MarketSales 2016

(€m)

% of Business

Area Sales

% of Group

sales

1. Russia 210.7 65% 17%

2. Ukraine

3. Kazakhstan


ASIA & TURKEY

0%

5%

10%

15%

20%

0

50

100

150

200

250

300

350

400

450

500

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Net Sales LTM Op Margin % LTM€m


Strong growth in China, Indonesia, Turkey and

Vietnam

- Online activity

- Solid leadership

- Skin Care and Wellness

Weaker development in India

YE'16 YE'15 Change

Sales, €m 434.3 348.8 25%

Lc sales - - 30%




980 928 6%

Markets: China, India, Indonesia, Myanmar, Pakistan, Sri Lanka,

Thailand, Turkey, Vietnam.

MarketSales 2016

(€m)

% of Business

Area Sales

% of Group

sales

1. China 139.1 32% 11%

2. Indonesia

3. India

Gabriel Bennet, CFO

February 16, 2017

2016 Financials


SALES PER CATEGORY 2016

2016 IN BRIEF

Skin Care27% (25%)

Colour Cosmetics23% (23%)

Fragrances20% (20%)

Personal & Hair Care16% (17%)

Accessories 6% (8%)

Wellness8% (7%)

SALES PER REGION 2016

0%

5%

10%

15%

400

500

600

700

800

900

1000

1100

1200

1300

1400

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16



Gross margin 70.7% (69.2%)

Operating margin 9.5% (7.5%, adj. 8.3%)

- Currency impact -250 bps

Net profit €66.7m (€34.2m, adj. €43.2m)

- EPS €1.18 (€0.62, adjusted** €0.79)

Asia & Turkey

35% (29%)

CIS26% (32%)

Europe & Africa

27% (28%)

Latin America12% (11%)


QUARTERLY VARIATIONS

0%

5%

10%

15%

0

200

400

600

800

1000

1200

1400

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16


0%

5%

10%

15%

0

50

100

150

200

250

300

350

400

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Net sales Quarter Adj. Op Margin % Quarter€m

o A number of factors impact sales and margins in-

between quarters:

• Effectiveness of individual catalogues and

product introductions

• Effectiveness and timing of recruitment

programmes

• Timing of sales and marketing activities

• The number of effective sales days per quarter

• Currency and hedging instrument effect on

sales and results

16

YTD 2016 SALES AND OPERATING MARGIN ANALYSIS

Oriflame has made certain assumptions to make / calculate an estimate

of the effects of currency, price/mix, etc. on the operating margin.

-5

0

5

10

15

FX

(9%)

Price / mixUnits

13%

€ Sales3

%

LC Sales 12%

%

(1%)

0

2

4

6

8

10

(2,5%)

Adj. O

M Y

TD

2015

8,3%

Selli

ng

& M

arke

tin

g

0,1%0,5%4,2%

FX

Pro

du

ct c

ost

(0,1%)

Oth

er in

com

e

Pri

ce /

mix

(0,7%)

Dis

trib

. & In

fra.

9,5%

(0,3%)

Ad

min

.

OM

YT

D 2

016

%

SALES VS. PY OP MARGIN VS. ADJ. PY


YTD operating cash flow €113.1m (€122.2m)

Net profit before tax €+33.2m

Non-cash items in net profit before tax €-26.7m

Impact from changes in working capital and

provisions €-4.1m

Inventories €8.2m

Receivables, prepaid exp., asset derivatives €-74.7m

Payables, accrued exp., liability derivatives €68.1m

Provisions €-5.7m

Interest, charges, taxes €-11.5m

YE’16 YE'15

Net profit before income tax,

€m100.5 67.3

Op. profit before changes in

wc, €m123.0 116.4

Change in working cap. and

provisions, €m42.6 46.7

Operating CF, €m 113.1 122.2

CF Investing Activities, €m (11.9) (15.5)

YTD 2016 CASH FLOW

0

50

100

150

200

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Total inventory€m

0

25

50

75

100

125

150

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Operating cash flow LTM Capex LTM€m


FINANCIAL POSITION

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0

50

100

150

200

250

300

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Net Debt at hedged values*

Net Debt at hedged values* / EBITDA LTM

* Adjusted for fair value movements of the USD private placement notes

0

1

2

3

4

5

6

7

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Interest cover (LTM)

Net debt at hedged values €13.2m (€94.0m)

- Net debt €82.3m (€171.6m)

Net debt at hedged values/ EBITDA (LTM) 0.1 (0.8)

- Net debt/EBITDA (LTM) 0.6 (1.5)

Interest cover (Q4): 6.9 (6.5)

Interest cover (LTM): 6.6 (4.8)

Total dividend of €1.50 per share

- Ordinary dividend of €1.00 (€0.40) per share

- Extra dividend of €0.50 per share

COVENANT DISCLOSURE

Consolidated Net Debt to Consolidated EBITDA: 0.3, (covenant at ≤ 3.0 times)

Consolidated EBITDA to Consolidated Finance costs: 13.8, (covenant at ≥ 5.0 times)

Consolidated Net Worth: €212m, (covenant at ≥ €120m)

€m


February 16, 2017

Looking forward

20

€129 BILLION INDUSTRY

B&PC 29%

(€38 BILLION)

THE DIRECT SELLING INDUSTRY (2015)

Source: Euromonitor International, Direct Selling Market Sizes - 2015

(Retail Value at Recommended Selling Prices including Sales Tax, Year-on-Year Exchange Rates)


B&PC HISTORICAL AND FORECASTED PERFORMANCE

-

100,000

200,000

300,000

400,000

500,000

600,000

2010 2015 2020

€m

CAGR 5%

CAGR 5%

THE OVERALL MARKET

-

50,000

100,000

150,000

200,000

2010 2015 2020

€m

CAGR 7%

CAGR 6%

ORIFLAME MARKETS

Source: Euromonitor International, Beauty and Personal Care Market Sizes - Historic 2010-2015 / Forecast 2020

(Retail Value at Recommended Selling Prices, Year-on-Year Exchange Rates)


AlgeriaBelarus

China

Czech Republic

ColombiaEgypt

Greece

India Indonesia

Kazakhstan

Mexico

MoroccoPeru

Poland

Romania

Russia

Spain

Sweden

Turkey

Ukrai…

United Kingdom

USA

Brazil

0

100

200

300

400

500

600

700

800

0 10,000 20,000 30,000 40,000 50,000 60,000

2015 GDP per capita €

2015 Beauty & Personal

Care spend per capita €

GROWTH OPPORTUNITY IN KEY MARKETS

Source: Euromonitor International, Income & Expenditure - Consumer Expenditure on Personal Care per Capita 2015 (Current Prices, Year-on-Year Exchange

Rates), GDP per Capita 2015 (Current Prices, Year-on-Year Exchange Rates)

23

RETAIL

BUSINESS MODEL

BASED ON

ADVERTISING

DIRECT SELLING

BUSINESS MODEL

BASED ON

RECOMMENDATION

RECOMMENDATION IS ORIFLAME’S STRENGTH


24

2011-2016, TV viewing by 18-24-year-olds has fallen by

40%In mobile alone, YouTube reaches more

18-34-year-olds and 18-49-year-olds than any

other TV network, broadcast or cable

Source: The Acumen Report from DEFY Media

25

1960s -1970s 1980s 1990s 2000s

HOME PARTIES + PERSON TO

PERSON SELLING

+ NETWORK

MARKETING

+ ONLINE

ORDERING

+ BUSINESS TOOLS

2010s

+ ONLINE SELLING

& RECRUITING

A RECOMMENDATION

FROM A FRIEND

IS TRUSTED BY

VS 55% FOR BILLBOARD

ADVERTISING (Nielsen)

90%Word-of-mouth

marketing

Recommendation

Endorsement

Friend

to friend

Social selling

THE ORIFLAME BUSINESS MODEL

– MORE RELEVANT THAN EVER


26

THE PRODUCT PORTFOLIO

o 1,000 cosmetic products,

of which 1/3 are new each year

o Focus on Skin care and Wellness

o Sets and routines

o Better sales mix and price

increases – increased

gross margin


27

MASSIVE PARADIGM SHIFT IN HOW WE

LIVE, WORK, PLAY, TRAVEL, CREATE, LEARN,

BANK AND CONSUME.

TECH

INNOVATION

VALUES

SHIFT

ECONOMIC

REALITIES

SHARING ECONOMY: DRIVERS


28

REAL BUSINESS

REAL REWARDS

REAL DEVELOPMENT

REAL PRODUCTS

REAL PRICE

REAL ADDED VALUE

IT HAS TO BE WORTH IT


29

Attractive success plan

Social belonging and recognition

Personal and professional

development


THE BUSINESS OPPORTUNITY

31

”ECONOMY BASED ON HUMAN

INTERACTION”

SHARING ECONOMY


32

MORE THAN A BUSINESS

FUN BELIEF

AMBITION

CURIOUSITY

LEADERSHIP

CULTURE©Oriflame Cosmetics AG, 2017

34

THIS IS ORIFLAME



GROWTHDRIVERS7

Product Culture & Hero Sets

Success Plan

Conferences

SARPIO

Digital

Customer Experience

Brand & Culture

Alexandra de Greck

Michael Cervell

Antonia Simon-Stenberg

February 16, 2017

Selected growth drivers


PRODUCT CULTURE & HERO SETS

Alexandra de Greck, VP Global Product Marketing

February 16, 2017


27%(25%)

23%(23%)

20%(20%)

16%(17%)

6%(8%)

8%(7%)

Skin Care

Colour Cosmetics

Fragrances

Personal & Hair Care

Accessories

Wellness

SALES BY CATEGORY


HERO BRANDS PILLAR BRANDS

THE PORTFOLIO FOCUS

40

Enhance your total beauty from the inside out –

with Beauty and Wellness products created by Sweden

THE PRODUCT PHILOSOPHY


41

THE PRODUCT PHILOSOPHY


42

150 CONSUMER & CLINICAL TESTS/YEAR

6000+ VOLUNTEERS

CLINICAL INSTITUTE

Oriderm


4343

70%MORE BOUNCE

IN 12 WEEKS

CLINICAL TESTING METHODS

DynaSKIN


444444

CLINICALLY PROVEN

TO IMPROVE MATURE

SKIN

45

1CLEANSE

4MOISTURISE

2EYES

3BOOST

Cleanser & Toner Eye Cream Serum Day Cream

& Night Cream

YOUTH ENHANCING SKIN CARE ROUTINE



PROACTIVE APPROACH CONNECTION TO NATURE COMMUNITY BUILDING

ACCESSIBLE, NATURAL, PROGRESSIVE, TRUSTWORTHY

WELLNESS BY ORIFLAME


1. COMPANY – Business Growth

2. CONSUMER – Best Result & Best Value

3. SELLER – Added Value Proposition

4. LEADER – Recruitment & Business Growth

SKIN CARE AND WELLNESS SETS


Michael Cervell, SVP Global Direct Sales

February 16, 2017

SUCCESS PLAN

ManufacturingRetail or

Department StoreSales Clerk Advertising Customer

TRADITIONAL RETAIL

DIRECT SELLING

Manufacturing Consultant CustomerWord of Mouth Marketing & Personal Advice

DIRECT SELLING – A TRUST BASED PURCHASE

~ 7 MillionCustomers

3 MillionRegistered Actives* * placed >1 order during the last 3 months

Future VIP Segment**

Consultants

** VIP Customers cannot earn

Performance discount & Bonuses

THE ORIFLAME COMMUNITY


3 Million Registered Actives

~ 60% ~ 20% ~ 20%

Save on purchase for

self and family

Earn from

personal selling

Earn Performance

Discount and Bonuses

from Group sales

Income Statement

Sales

Cost of sales / Gross Profit /

Other income

Selling and marketing expenses

- Distribution and infrastructure

- Administrative expenses

Operating Profit

Financial income

- Financial Expenses

Net profit before income tax

- Total income tax expense

Net profit

Selling expenses

approx. 25% of sales

~ 60% ~ 20% ~ 20%


3 Million Registered Actives

~ 60% ~ 20% ~ 20%

Save on purchase for

self and family

Earn from

personal selling

Earn Performance

Discount and Bonuses

from Group sales

~ 1%Directorsand higher

~ 50% of all Performance Discount and

Bonuses are earned by the Directors

PROSPECT

AND RECRUIT

TRAIN

DEVELOP

THE ORIFLAME DIRECTORS – INDEPENDENT BUSINESS PARTNERS

55

Immediate Profit / personal BP

1 CUSTOMER1 PRODUCT

2.2€ / 10 BP

1 CUSTOMER1 PRODUCT

8€ / 38 BP

1 CUSTOMER1 ROUTINE

23€ / 135 BP

4 CUSTOMERS4 ROUTINES

92€ / 540 BP

PRINCIPLE – HOW TO EARN FROM PERSONAL SALES

56

12%15%

18%21%

1800 BP 3000 BP 5000 BP 7 500 BP

14 SETS

IN YOUR GROUP

23 SETS

IN YOUR

GROUP

37 SETS

IN YOUR

GROUP

56 SETS

IN YOUR

GROUP

Total BP for catalogue period

7 500 +

5 000 – 7 499

3 000 – 4 999

1 800 – 2 999

900 – 1 799

450 – 899

200 – 449

Level of Performance Discount

= 21%

= 18%

= 15%

= 12%

= 9%

= 6%

= 3%

Split-out

21%

21%

CONSULTANT

PERSONAL GROUP

* Calculation is based on cost of the SKC set 135BP

PRINCIPLE – HOW TO EARN FROM TOTAL GROUP SALES

3% PDdifferential

15%

18%

21%

57

CONFERENCES

PRINCIPLE – REACHING THE HIGHEST DIRECTOR TITLES

Oriflame bonus4%

0.0625%

0.25%

0.25%

0.5%

1% Gold bonus

Executive bonus

Double Diamond

bonus

Diamond bonus

Sapphire bonus

58

• Brand & history

• Low joining fee

• Wide assortment

at affordable prices

• Routines & Sets

• Free Training

• Leading Digital tools

“Make-money-today”

opportunities

“Fulfil-dreams-tomorrow”

opportunities

ORIFLAME’S UNIQUE POSITION


Michael Cervell, SVP Global Direct Sales

February 16, 2017

DIGITAL

60

+ ONLINE SELLING

& RECRUITING

Offline orders Online orders

1968 1998 2008 2016

1960s -1970s 1980s 1990s 2000s

HOME

PARTIES

+ PERSON TO

PERSON SELLING

+ NETWORK

MARKETING

+ ONLINE

ORDERING

+ BUSINESS TOOLS

2010s

1988

2008

2016

0 Facebook fans

>8,5 million Facebook fans

38% of all orders online

92% of all orders online

1.5 billion page views

3.5 billion page views

21 million visitors

70 million visitors

45 million site visits

200 million site visits

DIGITALIZATION OF THE BUSINESS MODEL


DIGITAL STRATEGY – CONSULTANT CENTRIC

http://gc50.uiux.ru/

62

CONSULTANTS SALES AND RECRUITING TOOLS

Website

Apps

E-Mail

Social

Widgets

E-catalogue

SELL & RECRUIT - ORIFLAME HAS ONE CHANNEL

63

71%of people who bought

beauty productsat least 11 times in the last year said

SOCIAL MEDIAinfluenced what they bought

- Mintel survey


THESE TIPS REALLY WORKED FOR ME!

PROVIDING CONTENT FOR SOCIAL MEDIA SHARING


Cloud BasedBusiness Support

Checkout

Subscriptions

Personal Beauty Stores

Registration

Order history

Team order

Credit check

Merchandising messages

IMPROVING THE DIGITAL USER EXPERIENCE

66

BIG DATA AND CRM – THE NEXT FRONTIER

TODAY

Same to all Analytical segmentation

STEP 1

Marketing AutomationFrom Oriflame and Leaders

STEP 2

Personalised Digital Experience

STEP 3


Antonia Simon-Stenberg, VP Sustainability & Quality Management

February 16, 2017

SUSTAINABILITY

68

THIS IS ORIFLAME



NATURAL TRUSTWORTHY

ORIFLAME’S SWEDISH ATTRIBUTES

71

PEOPLE PRODUCTS PLANET


72

PEOPLE


73

PRODUCTS


74

PLANET


75

COMMUNICATION



Gabriel Bennet, CFO

February 16, 2017

Financial outlook & Concluding remarks


LONG-TERM FINANCIAL TARGETS

-5%

5%

15%

25%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Lc sales growth Target

10%LOCAL SALES

DEVELOPMENT

15%OPERATING MARGIN

0.0%

5.0%

10.0%

15.0%

2004 2005 2006 2007 2008 2009 2010* 2011* 2012 2013* 2014* 2015* 2016

Operating margin Target

* Adjusted Operating margin


Sales

Cost of sales

Gross profit

Other income

Selling and marketing expenses

Distribution and infrastructure

Administrative expenses

Operating profit

GROWTH DRIVERS IMPACT

ON INCOME STATEMENT Product Culture & Hero Sets

Success Plan

Conferences

SARPIO

Digital

Customer Experience

Brand & Culture


LONG-TERM GROWTH SCENARIO

REGISTERED ACTIVES PRODUCTIVITY

+10%CAGR

+5%CAGR

+5%CAGR

SALES =

80

0

2

4

6

8

10

12

14

16

18

20

OM 2016

9.5% (3.5%)

FX OM 2020

7.0%

Price / mix Product cost Admin.

1.0%

2.0%

~15.0%

Other

PROJECTED OPERATING MARGIN EXPANSION

2016-2020

(1.0%)


Oriflame has made certain assumptions to make / calculate an estimate

of the effects of currency, price/mix, etc. on the operating margin.

81

NEW OPPORTUNITIES IN GLOBAL MANUFACTURING

IN-HOUSE SHARE OF PRODUCT SOURCING

0%

10%

20%

30%

40%

50%

60%

70%

2015 2016 Target 2020

TOTAL IN-HOUSE PRODUCTIONM units


• Initiatives taken to improve the capacity

utilization in manufacturing

• Insourcing external volumes

• Adding new technologies

• External sales opportunities

• Expects ~100 bps positive margin impact by 2020

100

150

200

250

2011 2012 2013 2014 2015 2016

82

EXTERNAL SALES OPPORTUNITIES

• Cetes Cosmetics AG established

• Reach new target groups in other distribution

channels and geographies

• Contract manufacturing

• Support the organic growth of Oriflame while

further leverage the manufacturing assets with

external volumes

83

DIVIDEND POLICY

Oriflame intends to distribute, over the long-

term, at least 50% of the Company’s annual

profit after tax as dividend.

The Board of Directors will propose to the 2017

AGM a total dividend of €1.50 per share for

2016

- Ordinary dividend of €1.00 (€.40) per

share

- Extra dividend of €0.50 per share

Net Debt at hedged values/EBITDA target

range of 0.5 to 1.5

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0

50

100

150

200

250

300

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Net Debt at hedged values* Net Debt at hedged values* / EBITDA LTM€m


CONCLUDING REMARKS

85

CONCLUDING REMARKS

Continue to deliver on the strategy

1. Recommendation model adds value to the customer’s

choice

- Continued focus on strategic product categories

2. It has to be worth it!

- Remuneration model attracting consultants

3. Acting in the new economic environment

- Social selling business model with online as a

catalyst

Promising start of 2017, ready for the next 50 years!


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.

CAUTIONARY STATEMENT

oriflame capital markets day 2017 -...

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