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2.92 MB - Oriflame Cosmetics SA by domainlawyer

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									Oriflame Cosmetics

© 2009 by Oriflame Cosmetics S.A. All rights reserved

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
€ million Sales CIS & Baltics, 59%

Sales by Region 2008

EMEA, 30%

Latin America, 5%

Asia, 6%

2008 1,329.1 69.7% 216.6 187.3 14.1%

2007 1,109.4 70.1% 182.4 155.4 14.0%

Change 20% 19% 21% -

Gross margin EBITDA* Op. profit* Op. margin*

*) Before restructuring costs due to the new operational platform of €8.7m. (€25.8m)

© 2009 by Oriflame Cosmetics S.A. All rights reserved

A Long Term Growth Company
€m
1400

1990 - 2008: CAGR organic sales of over 17%
1 109

1 329

1200

1000 766 652 600 395 327 333 447 544 671

918

800

400 242 200 77 0 1990 1991 1992 1993 1994 1995 90 132 181 188

325

355

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

© 2009 by Oriflame Cosmetics S.A. All rights reserved

THIS IS ORIFLAME
Our Logotype & Slogan Our Vision
To be the #1 Beauty Company Selling Direct

Where we’re going

Our Mission

To Fulfil Dreams

Our reason for being

Our Offer Our Business Opportunity concept Our Strategy Our Values & Operating Principles

Look Great

Make Money

Have Fun

What we offer What we should be best in the world at

Brands & Products

Network Marketing

World Class Service

People & Culture

How we create and build the business opportunity concept How we work together

Togetherness, Spirit & Passion
Respect People, Focus on Customers, Demand Quality, Seek Simplicity and Cost-efficiency, Pursue Long-term Growth

© 2009 by Oriflame Cosmetics S.A. All rights reserved

Brands and Products
 Natural Swedish Cosmetics

Sales by Category 2008
Fragrances 20%

Skin Care 25%

 950 products of which 1/3 new each year
 R&D  Product stories and catalogue communication  New product category
Accessories 9% Colour C. 26% Personal & Hair Care 20%

 Wellness

Skin Care
Trust & Competence Enhancer

Colour Cosmetics
Professional Up-trader & Modernizer

Fragrance
Emotional & Prestige Booster

Personal & Hair Care
Energizer

Accessories
Sales Driver

Wellness
Bringing Beauty from Within

© 2009 by Oriflame Cosmetics S.A. All rights reserved

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

© 2009 by Oriflame Cosmetics S.A. All rights reserved

Incentives

Our Business Model
Consumer Independent sales consultants Oriflame

Order

Order

Products

Products

Payment

Payment

© 2009 by Oriflame Cosmetics S.A. All rights reserved

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

“Make money today” opportunity

“Make money today and fulfil your dreams tomorrow™”

“Fulfil dreams tomorrow” opportunity

New recruits make money, but can’t go for their dreams!

New recruits make money, while they go for their dreams!

New recruits spend money, while being told to go for their dreams!

© 2009 by Oriflame Cosmetics S.A. All rights reserved

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

© 2009 by Oriflame Cosmetics S.A. All rights reserved

Market Opportunity
Cosmetics and Toiletries Industry Dynamics
2007 Cosmetics & Toiletries Spending per Capita EUR

250

200
Japan France Spain UK

150
Germany

Sweden

USA

Portugal

Greece

Western European average North American average

100
Brazil

Czech Republic
Latin American average Eastern European average

50
Ukraine

Poland Russia Mexico
Turkey

Asian average

0 0

Indonesia India

China

5000

10000

15000

20000

25000

30000

35000

40000

45000

2007 GDP per Capita EUR Source: Euromonitor
© 2009 by Oriflame Cosmetics S.A. All rights reserved

Projected Market Size and Growth by Region
(Oriflame markets)
Euro million

Fixed 2007 exchange rates. Value at current prices

70 000 60 000 50 000 40 000

Region. Ori markets CIS & B. CEM WE

CAGR 20072012E*

4.2% 3.4% 2.9% 9.3% 2.5% 5.2% 3.0%

30 000

Asia
20 000

LA
10 000 0 2007 2008 2009 2010 2011 2012

Ori markets World
CIS & B. CEM WE LA Asia

*) Real Growth (fixed prices)

First priority  Defend market share in a more competitive environment  Grow market share where we have a low penetration
Source: Euromonitor

Second priority  Open markets where possible

© 2009 by Oriflame Cosmetics S.A. All rights reserved

Direct selling channel categories
Direct Selling Industry - Product categories
USD Billion

A $111bn industry with 62 million independent consultants (2007). Source: WFDSA 2008.

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
© 2009 by Oriflame Cosmetics S.A. All rights reserved

Financial Highlights 2008
 Sales +20% in Euro  +23% in local currency.
€m Sales Q4´08 394.4 276.0 70.0 276.0 66.0 44.6 39.3 0.69 Q4’07 341.6 238.9 69.9 238.9 56.7 48.8 43.6 0.77 Change 15% 16% 14% 16% (8%) (10%) (10%) FY’08 1,329.1 926.1 69.7 926.1 187.3 150.2 133.1 2.36 FY’07 1,104.9 777.8 70.1 777.8 155.4 131.7 116.0 2.05 Change 20% 19% 19% 21% 14% 15% 15%

 Operating profit* +21% to €187.3m (€155.4).
 Operating margin* 14.% (14.0%).  Net profit* €133.1m (€116.0m).

Gross profit Gross margin, % EBITDA* Operating profit* Profit before tax* Net profit* Diluted EPS, €*

*) Before restructuring costs of €14.0m in Q4’07, €8.7M in FY’08 and €25.8m in FY’08

© 2009 by Oriflame Cosmetics S.A. All rights reserved

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

© 2009 by Oriflame Cosmetics S.A. All rights reserved

Regional Overview, Jan - Dec 2008
2008 CIS & Baltics
€767.8m +25% €47.5m +23%

EMEA

Asia

Latin Am.
€58.5m +19% €5.2m +17%

Sales Growth Op. Profit Change Sales Force, avg change

€390.9m +9% €71.4m +10%

€82.4m +32% €3.3m +71%

1,585,800 +29%

685,500 +2%

339,300 +37%

116,700 +33%

© 2009 by Oriflame Cosmetics S.A. All rights reserved

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

© 2009 by Oriflame Cosmetics S.A. All rights reserved

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.

© 2009 by Oriflame Cosmetics S.A. All rights reserved


								
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