Interim Report 1 January 31 March 2017mb.cision.com/Main/1493/2261709/671928.pdf3 months ended 31...

3 months ended 31 March 2017 Local currency sales increased by 8% and Euro sales increased by 11% to €340.1m (€305.8m).

Number of registered actives decreased by 4% to 3.0m.

EBITDA amounted to €40.4m (€27.7m).

Operating margin was 8.8% (6.9%), favourably impacted by 90 bps from currencies, and operating profit was €29.8m

(€21.1m).

Net profit increased to €19.5m (€10.7m) and diluted EPS €0.34 (€0.19).

Cash flow from operating activities was €-1.5m (€21.5m).

The year to date sales development is approximately 9% in local currency and the development in the second quarter to

date is approximately 11% in local currency.

During the quarter, Oriflame hosted a Capital Markets Day in Stockholm. As part of the day, Oriflame presented an increased level of market disclosure to include the Company’s three largest markets per Business Area as per the 2016

year-end sales results.

Significant events after the end of the quarter The AGM held on 9 May 2017 resolved that a dividend of €1.50 per share, of which €1.00 (€0.40) per share is to be

considered as ordinary and €0.50 to be considered as extra dividend, be distributed and paid in four installments: €0.75 to

the shareholders of record on 15 May 2017, €0.25 to the shareholders of record on 15 August 2017, €0.25 to the

shareholders of record on 15 November 2017 and €0.25 to the shareholders of record on 15 February 2018.

Interim Report 1 January – 31 March 2017

+8% LC SALES

+11% EURO SALES

8.8% OPERATING MARGIN

“During Q1 2017 we continued to focus on balancing sustainable sales development with healthy profitability improvements.

All in all, a positive start of 2017, even though macroeconomic challenges remain in several markets.”

CEO Magnus Brännström

Oriflame Interim report 1 January – 31 March 2017

2

“ CEO Magnus Brännström comments

“During Q1 2017 we continued to focus on balancing sustainable sales development with healthy profitability improvements, reporting high

single digit underlying growth and double digit Euro growth as well as an increase in net profit of over 80 percent. Our strategic categories –

Skin Care and Wellness sets and routines – served as important drivers of growth and price mix development. In addition, our online strategy

and the efficiency measures in manufacturing continued to render results. The strong performance in Latin America and Asia & Turkey

continued, despite a negative impact in India due to the demonetization. The underlying sales performance in CIS was weaker, although the

current currency situation favourably impacted the margins and will allow us to focus further on growth. The local currency sales development

for the group in the second quarter-to-date is solid. All in all, a positive start of 2017, even though macroeconomic challenges remain in several

markets.”

Key financial data 3 months ended 31 March

Sales

Registered actives

Operating profit

Net Sales LTM

Adj. operating margin % LTM

Financial summary

(€m)

3 months ended 31 March

LTM, April ‘16- March ‘17

Year end 2016

2017 2016 Change %

Sales 340.1 305.8 11% 1,283.7 1,249.4

Gross margin, % 71.6 69.5 - 71.2 70.7

EBITDA 40.4 27.7 46% 160.9 148.2

Operating profit 29.8 21.1 41% 127.8 119.2

Operating margin, % 8.8 6.9 - 10.0 9.5

Net profit before tax 27.4 15.7 75% 112.3 100.5

Net profit 19.5 10.7 83% 75.5 66.7

Diluted EPS, € 0.34 0.19 80% 1.33 1.18

Cash flow from operating activities (1.5) 21.5 N/A 90.1 113.1

Net interest-bearing debt 92.7 133.8 (31%) 92.7 82.3

Net interest-bearing debt at hedged values 28.0 78.7 (64%) 28.0 13.2

Registered actives, ‘000 2,991 3,105 (4%) 2,991 3,006

Sales per registered actives, € 111.8 97.4 15% 424.6 411.9

11% (10%)

24% (27%)

30% (29%)

35% (34%)

9% (8%)

27% (25%)

30% (36%)

34% (31%)

7% (7%)23%

(32%)

24% (20%)

46% (41%)

0%

5%

10%

15%

20%

0

200

400

600

800

1000

1200

1400

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Net Sales LTM

Adj. Op Margin % LTM

Asia & Turkey Europe & Africa Latin America CIS


3

+83% NET PROFIT

IMPROVED

CAPACITY

UTILISATION

Three months ended 31 March 2017

Sales in local currencies increased by 8%, negatively impacted by a leap year effect of 1%. Euro sales

increased by 11% to €340.1m compared to €305.8m in the same period prior year. Sales

development in local currencies was impacted by a 12% increase in productivity while the number

of registered actives in the quarter decreased by 4% to 3.0m (3.1m).

Unit sales decreased by 3% and the price/mix effect was up by 11%, primarily driven by mix

effect. The positive mix effect is a combination of geographic and product mix, mainly driven by

Skin Care and Wellness.

Local currency sales increased by 21% in Latin America, by 16% in Asia & Turkey and by 6% in

Europe & Africa, while local currency sales decreased by 6% in CIS.

The gross margin at 71.6% (69.5%), benefited from currency movements of 90 bps, price/mix

effects and efficiency measures in the supply chain. The operating margin amounted to 8.8% (6.9%),

negatively impacted by higher costs for the share incentive plan and bonuses and higher selling and

marketing expenses, offset by lower distribution and infrastructure expenses and lower

administrative costs.

Net profit increased to €19.5m (€10.7m) and diluted earnings per share amounted to €0.34

(€0.19).

Cash flow from operating activities amounted to €-1.5m (€21.5m).

The average number of full-time equivalent employees decreased to 6,286 (6,356).

Operational highlights

Brand and Innovation

The strategic categories Skin Care and Wellness continued to perform well, with double digit sales

growth during the quarter. The main initiatives within Skin Care were the launch of NovAge Time

Restore as well as the relaunch of the mass brand Optimals, which primarily targets a younger

audience interested in benefits other than anti-aging. The Wellness growth was primarily driven by

set sales.

In Colour Cosmetics, the new value brand COLOURBOX was launched and the limited edition

Giordani Gold Bronzing Pearls was a popular gift for the Mother’s Day and International Women’s

Day celebrations.

The Fragrance growth was mainly driven by newness and key launches during the quarter were

Eclat Lui, Eclat Mademoiselle, Venture Beyond and Amber Elixir Crystal.

In Personal and Hair Care, the Eleo brand was launched in China and sales within the category

were driven by Hair Care.

Online

During the first quarter, usage of the Company’s mobile apps continued to increase and

smartphones and tablets surpassed desktop computers as the most frequently used devices to

access Oriflame websites. The Company’s new e-commerce platform was successfully implemented

in China, parallel to continued rollout preparations in Asia and Latin America. Several new training

modules were produced and launched in multiple markets as part of the Company’s e-learning

offer, mainly intended to support the on-boarding process of new Consultants.

Service and Manufacturing

Service levels were satisfactory and the number of inventory days increased compared to the same

period last year, although remaining on healthy levels.

The capacity utilisation in manufacturing improved significantly during the quarter, driven by

insourcing efforts, favourable product mix and pre-production. Although the capacity utilisation was

the highest in many years, the overall utilisation of assets remains insufficient. The efforts to identify

and explore production alternatives for third party customers increased in the quarter, and the

new organisation for Cetes Cosmetics AG is now in place.

The implementation of the outsourcing of IT and financial operational services to IBM

continued during the quarter, with the transition of IT services now being complete.


4

STRONG

PERFORMANCE IN

MEXICO AND PERU

+6% LC SALES

Latin America

Key figures

Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Sales, €m 29.4 38.5 40.9 39.8 35.3

Sales growth in € (3%) 8% 16% 12% 20%

Sales growth in lc 13% 27% 26% 21% 21%

Op profit, €m1 2.6 6.1 7.2 5.8 3.3

Op margin 8.9% 15.8% 17.6% 14.5% 9.5%

Registered actives, ‘000 243 286 314 288 266

Sales /registered actives, € 120.9 134.5 130.2 138.5 132.6

¹Excludes costs accounted for in the segments Manufacturing and Other such as financial expenses, gain/loss on exchange rates,

market support and manufacturing overheads. This is in line with prior years.

Countries

Chile, Colombia, Ecuador, Mexico, Peru.

Development

Local currency sales in the first quarter increased by 21% as a result of a 9% increase in the number

of registered actives and an 11% increase in productivity compared to prior year. Euro sales were

up by 20% to €35.3m (€29.4m). The strong performance in Mexico and Peru continued during the

quarter and improvements could be seen in Ecuador. The solid performance in the region was

driven by strong leadership development and healthy productivity levels.

Operating profit amounted to €3.3m (€2.6m) and operating margin to 9.5% (8.9%). The

operating margin was negatively impacted by exchange rates, offset by sales leverage and price

increases.

Europe & Africa

Key figures

Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Sales, €m 82.4 81.2 70.4 95.3 81.3

Sales growth in € 1% 3% (1%) (2%) (1%)


Op profit, €m1 11.8 12.4 8.9 16.8 10.4

Op margin 14.3% 15.2% 12.7% 17.7% 12.8%

Registered actives, ‘000 768 740 655 812 802


1Excludes costs accounted for in the segments Manufacturing and Other such as financial expenses, gain/loss on exchange rates,


Countries

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.

Development

Local currency sales in the first quarter increased by 6%, as a result of a 4% increase in registered

actives and a 2% increase in productivity. Euro sales decreased by 1% to €81.3m (€82.4m). Stable sales development in Central Europe, with healthy growth in Poland and Romania, while the

development in Western Europe was weaker. The situation in Africa continued to improve, with

price increases implemented to balance the macroeconomic and exchange rates challenges.

Operating profit amounted to €10.4m (€11.8m) and operating margin decreased to 12.8%

(14.3%), burdened by negative currency movements and higher selling and marketing expenses,

partly offset by positive impact from price increases.


5

+15% EURO SALES

17.8% OPERATING

MARGIN

CIS

Key figures

Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Sales, €m 86.6 78.0 67.2 93.9 99.5

Sales growth in € (20%) (20%) (13%) (10%) 15%

Sales growth in lc 0% 4% (3%) (10%) (6%)

Op profit, €m1 7.2 5.2 5.5 14.0 11.1

Op margin 8.4% 6.7% 8.1% 14.9% 11.2%

Registered actives, ‘000 1,133 913 784 926 889




Countries

Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Ukraine.

Development

Local currency sales in the first quarter decreased by 6%, as a result of a 22% decrease in the

number of registered actives and an increase in productivity of 20%. Euro sales were up by 15% to

€99.5m (€86.6m). Local currency sales in Russia decreased by 4%, with continued high online

activity and leadership development. The underlying sales performance in the region was weaker,

although the current favourable currency situation will allow further focus on growth.

During the second quarter 2016, Oriflame’s premises in the Moscow area were visited by local

authorities. In April 2017, a similar visit occurred. The Company remains surprised by these

unannounced visits.

Operating profit amounted to €11.1m (€7.2m) and operating margin increased to 11.2% (8.4%),

favourably impacted by exchange rates and realised price increases.

Asia & Turkey

Key figures

Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Sales, €m 103.9 109.5 97.5 123.3 118.2

Sales growth in € 23% 26% 26% 23% 14%


Op profit, €m1 14.7 23.1 17.7 27.6 21.1

Op margin 14.2% 21.1% 18.1% 22.4% 17.8%

Registered actives, ‘000 961 923 895 980 1,034

Sales /resgistered actives, € 108.2 118.8 109.0 125.7 114.4



Countries

China, India, Indonesia, Myanmar, Pakistan, Sri Lanka, Thailand, Turkey, Vietnam.

Development

First quarter sales growth in local currencies was 16% as a result of a 8% increase in the number of

registered actives and a 7% increase in productivity. Euro sales were up by 14% to €118.2m

(€103.9m). Most markets performed well with strong performance in China, Indonesia, Turkey and Vietnam in particular. The development in Thailand was weak and the demonetization continued to

have a negative impact in India. The combination of solid leadership, online activity and the focus on

Skin Care and Wellness sets and routines continues to be the key success factor in the region.

Operating margin increased to 17.8% (14.2%) and operating profit was €21.1m (€14.7m). The

margin was positively impacted by a favourable geographical mix, sales leverage and timing of costs.


6

Sales, operating profit and registered actives by Global

Business Area

Sales (€m)


2017 2016 Change in

Euro Change in

lc

LTM, April’16-March’17

Year end 2016

Latin America 35.3 29.4 20% 21% 154.5 148.6

Europe & Africa 81.3 82.4 (1%) 6% 328.3 329.4

CIS 99.5 86.6 15% (6%) 338.6 325.7

Asia & Turkey 118.2 103.9 14% 16% 448.6 434.3

Manufacturing 4.5 2.1 109% 107% 6.2 3.8

Other 1.3 1.4 (12%) 2% 7.5 7.6

Total sales 340.1 305.8 11% 8% 1,283.7 1,249.4

Operating profit (€m)

3 months ended

31 March

Change

2017 2016

LTM,

April’16-March’17

Year end 2016

Latin America 3.3 2.6 27% 22.4 21.7

Europe & Africa 10.4 11.8 (11%) 48.5 49.9

CIS 11.1 7.2 53% 35.8 31.9

Asia & Turkey 21.1 14.7 43% 89.5 83.1

Manufacturing 4.9 3.3 46% 10.7 9.1

Other (21.0) (18.5) (14%) (79.1) (76.5)

Total operating profit 29.8 21.1 41% 127.8 119.2

Registered actives (´000)

31 March

Change

2017 2016 Year end

2016

Latin America 266 243 9% 288

Europe & Africa 802 768 4% 812

CIS 889 1,133 (22%) 926

Asia & Turkey 1,034 961 8% 980

Total 2,991 3,105 (4%) 3,006


7

0.2 NET DEBT AT

HEDGED VALUES

/EBITDA

Cash flow & investments

Cash flow from operating activities in the first quarter amounted to €-1.5m (€21.5m), driven by

higher EBITDA, offset by working capital increase and negative timing of payables between the

fourth quarter 2016 and the first quarter 2017.

Cash flow used in investing activities amounted to €-3.0m (€-1.7m).

Financial position

Net interest-bearing debt at hedged values amounted to €28.0m (€78.7m). The net debt at hedged

values/EBITDA ratio was 0.2 (0.6).

Net interest-bearing debt amounted to €92.7m (€133.8m). The net debt/EBITDA ratio was 0.6

(1.1). Interest cover amounted to 8.2 (4.7) in the quarter and to 7.5 (5.2) during the last twelve

months.

Covenant disclosure

As per the end of the first quarter 2017, the financial measures as defined in the Revolving Credit

Facility Agreement and the Private Placement Notes Amendment document were as follows:

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

Consolidated EBITDA to Consolidated Finance costs: 18.2 (covenant at ≥ 5.0 times)

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

Note that the definition of these measures differ from the definitions of the Net Debt to EBITDA

and Interest cover disclosed in the other sections of the report, primarily related to gains from

sales of assets and cash in non-OECD markets.

Related parties

There have been no significant changes in the relationships or transactions with related parties

compared with the information given in the Annual Report 2016.

2017 Annual General Meeting

Oriflame Holding AG has held its 2017 Annual General Meeting in Zurich (Kloten), Switzerland, on

9 May 2017. For further information please see the separate press release issued on 9 May 2017.

Dividend

The AGM held on 9 May 2017 resolved that a dividend of €1.50 per share, of which €1.00 (€0.40)

per share is to be considered as ordinary and €0.50 to be considered as extra dividend, be

distributed out of the capital contribution reserve and paid in four instalments as follows: €0.75 to

the shareholders of record on 15 May 2017, €0.25 to the shareholders of record on 15 August

2017, €0.25 to the shareholders of record on 15 November 2017 and €0.25 to the shareholders of

record on 15 February 2018. The dividend will be taken from a reserve from capital contribution

amounting to CHF 112,250,000 to be created with funds from the Company’s capital contribution reserve. This reserve amount includes a buffer of 25% for exchange rate fluctuations. Any excess

amount of the reserve remaining after payment of the final installment will be automatically

reallocated to the capital contribution reserve. In the unlikely event that the reserve will not be

sufficient for the payment of any of the instalments, such payments will be adjusted downwards on a

pro rata basis.

The first instalment of €0.75 per share (record date 15 May 2017) will have expected payment date

23 May 2017. The last day of trading the share including dividend right is on 11 May 2017 (Ex-Date

12 May).


8

11% SECOND QUARTER

TO DATE LC SALES

9% YEAR TO DATE LC

SALES

Significant events during the quarter

During the quarter, Oriflame hosted a Capital Markets Day in Stockholm. As part of the day,

Oriflame presented an increased level of market disclosure to include the Company’s three largest

markets per Business Area as per the 2016 year-end sales results.

Personnel

The average number of full-time equivalent employees decreased to 6,286 (6,356).

Year to date and second quarter update

The year to date sales development is approximately 9% in local currency and the development in

the second quarter to date is approximately 11% in local currency.

Long term targets

Oriflame aims to achieve local currency sales growth of approximately 10 percent per annum and

an operating margin of 15 percent.

The business of the Group presents cyclical evolutions and is driven by a number of factors:

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 effect on sales and results

Financial Calendar for 2017 The second quarter 2017 report will be published on 17 August 2017

The third quarter 2017 report will be published on 8 November 2017


9

Other A Swedish translation is available on www.oriflame.com.

Conference call for the financial community

The Company will host a conference call on Wednesday, 10 May 2017 at 9.30 CET.

Participant access numbers:

SE: +46 (0)856642698

DK: +4582333178

FI: +358 (0)981710491

UK: +44 (0)2030089802

NO: +47 (0)23500252

US: +18557532235

The conference call will also be audio web cast in “listen-only” mode through Oriflame’s website:

www.oriflame.com or through http://oriflame-ir.creo.se/170510

May 10, 2017

Magnus Brännström

Chief Executive Officer

This report has not been audited by the Company´s auditors.

For further information, please contact:

Magnus Brännström, Chief Executive Officer Tel: +41 798 263 754

Gabriel Bennet, Chief Financial Officer Tel: +41 798 263 769

Nathalie Redmo, Sr. Manager IR Tel: +41 799 220 173

This information is information that Oriflame Holding AG is obliged to make public pursuant to the

EU Market Abuse Regulation. The information was submitted for publication, through the agency of

the contact person set out above, at 07:15 CET on May 10, 2017.

Oriflame Holding AG

Bleicheplatz 3, CH-8200 Schaffhausen, Switzerland

www.oriflame.com

Company registration no CHE-134.446.883

http://www.oriflame.com/

http://oriflame-ir.creo.se/170510


10

Consolidated key figures 3 months ended

31 March

20171 2016

LTM, April’16-

March’17

Year end

2016

Gross margin, % 71.6 69.5 71.2 70.7

EBITDA margin, % 11.9 9.1 12.5 11.9

Operating margin, % 8.8 6.9 10.0 9.5

Return on:

- operating capital, % - - 39.8 38.0

- capital employed, % - - 29.6 26.7

Net debt at hedged values / EBITDA (LTM) 0.2 0.6 0.2 0.1

Net debt / EBITDA (LTM) 0.6 1.1 0.6 0.6

Interest cover 8.2 4.7 7.5 6.6

Average no. of full-time equivalent employees 6,286 6,356 6,216 6,233

Definitions Operating capital

Total assets less cash and cash equivalents and non interest-bearing liabilities, including deferred tax liabilities.

Return on operating capital

Operating profit divided by average operating capital.

Capital employed

Total assets less non interest-bearing liabilities, including deferred tax liabilities.

Return on capital employed

Operating profit plus interest income divided by average capital employed.

Net interest-bearing debt

Interest-bearing debt excluding front fees less cash and cash equivalents.

Interest cover

Operating profit plus interest income divided by interest expenses and charges.

Net interest-bearing debt to EBITDA

Net interest-bearing debt divided by EBITDA.

EBITDA

Operating profit before financial items, taxes, depreciation, amortisation and share incentive plan.


11

Quarterly Figures

Financial summary Q4’151 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Sales, €m 339.5 305.8 309.6 278.9 355.1 340.1

Gross margin, % 70.3 69.5 71.5 70.4 71.2 71.6

EBITDA, €m 39.7 27.7 40.6 30.8 49.0 40.4

Adj. operating profit, €m 38.9 21.1 30.8 25.2 42.0 29.8

Adj. operating margin, % 11.5 6.9 9.9 9.0 11.8 8.8

Adj. net profit before income tax, €m 31.0 15.7 27.1 20.4 37.3 27.4

Adj. net profit, €m 15.2 10.7 18.1 12.7 25.2 19.5

Adj. EPS, diluted € 0.27 0.19 0.32 0.23 0.44 0.34

Cash flow from op. activities, €m 68.8 21.5 35.8 (5.8) 61.7 (1.5)

Net interest-bearing debt, €m 171.6 133.8 106.5 111.8 82.3 92.7

Registered actives, ‘000 3,246 3,105 2,862 2,648 3,006 2,991

Sales, €m Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Latin America 35.6 29.4 38.5 40.9 39.8 35.3

Europe & Africa 97.0 82.4 81.2 70.4 95.3 81.3

CIS 104.0 86.6 78.0 67.2 93.9 99.5

Asia & Turkey 100.4 103.9 109.5 97.5 123.3 118.2

Manufacturing 0.7 2.1 0.4 0.7 0.6 4.5

Other 1.8 1.4 2.0 2.2 2.2 1.3

Oriflame 339.5 305.8 309.6 278.9 355.1 340.1

Adj. operating Profit, €m Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Latin America 5.1 2.6 6.1 7.2 5.8 3.3

Europe & Africa 15.2 11.8 12.4 8.9 16.8 10.4

CIS 8.9 7.2 5.2 5.5 14.0 11.1

Asia & Turkey 19.8 14.7 23.1 17.7 27.6 21.1

Manufacturing 2.3 3.3 1.6 2.5 1.6 4.9

Other (12.4) (18.5) (17.6) (16.6) (23.8) (21.0)

Oriflame 38.91 21.1 30.8 25.2 42.0 29.8

Registered actives, ‘000 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Latin America 263 243 286 314 288 266

Europe & Africa 774 768 740 655 812 802

CIS 1,281 1,133 913 784 926 889

Asia & Turkey 928 961 923 895 980 1,034

Oriflame 3,246 3,105 2,862 2,648 3,006 2,991

Adj. operating Margin, % Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Latin America 14.3 8.9 15.8 17.6 14.5 9.5

Europe & Africa 15.7 14.3 15.2 12.7 17.7 12.8

CIS 8.6 8.4 6.7 8.1 14.9 11.2

Asia & Turkey 19.8 14.2 21.1 18.1 22.4 17.8

Oriflame 11.51 6.9 9.9 9.0 11.8 8.8

1Adjusted for non-recurring items of €6.3m

€ Sales Growth in % Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Latin America 10 (3) 8 16 12 20

Europa & Africa 3 1 3 (1) (2) (1)

CIS (30) (20) (20) (13) (10) 15

Asia & Turkey 32 23 26 26 23 14

Oriflame (4) (1) 3 6 5 11

Cash Flow, €m Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17

Operating cash flow 68.8 21.5 35.8 (5.8) 61.7 (1.5)

Cash flow used in investing activities (2.3) (1.7) (3.3) (2.3) (4.6) (3.0)


12

Condensed consolidated income statements

Earnings per share

€

3 months ended March

2017 2016

LTM, April’16-

March’17

Year end

2016

EPS:

- basic 0.35 0.19 1.36 1.20

- diluted 0.34 0.19 1.33 1.18

Weighted avg. number of shares outstanding:

- basic 55,740,805 55,608,563 55,724,276 55,691,352

- diluted 56,944,134 56,055,560 56,927,605 56,537,639

Total number of shares outstanding (excluding treasury shares)

55,740,805 56,055,560 55,740,805 55,740,805

3 months ended March

€’000 2017 2016

LTM, April’16- March’17

Year End 2016

Sales 340,134 305,805 1,283,711 1,249,382

Cost of sales (96,730) (93,264) (369,933) (366,467)

Gross profit 243,404 212,541 913,778 882,915

Other income 11,957 10,654 45,634 44,331

Selling and marketing expenses (129,590) (114,647) (464,459) (449,516)

Distribution and infrastructure (24,433) (23,241) (95,248) (94,056)

Administrative expenses (71,569) (64,165) (271,894) (264,490)

Operating profit 29,769 21,142 127,811 119,184

Financial income 7,590 16,265 13,183 21,858

Financial expenses (9,940) (21,733) (28,719) (40,512)

Net financing costs (2,350) (5,468) (15,536) (18,654)

Net profit before income tax 27,419 15,674 112,275 100,530

Total income tax expense (7,936) (5,002) (36,750) (33,816)

Net profit 19,483 10,672 75,525 66,714


13

Condensed consolidated statements of comprehensive income

€’000


2017 2016

LTM, April’16-

March’17

Year end

2016

Net profit 19,483 10,672 75,525 66,714

Other comprehensive income

Items that will not be reclassified subsequently

to profit or loss:

Remeasurements of net defined liability, net of tax - - (316) (316)

Revaluation reserve 223 (30) 22 (230)

Total items that will not be reclassified subsequently to profit or loss

223 (30) (294) (546)

Items that are or may be reclassified subsequently to profit or loss:

Foreign currency translation differences for foreign

operations 7,896 (2,008) 22,203 12,299

Effective portion of changes in fair value of cash flow hedges, net of tax

(389) (949) (2,159) (2,719)

Total items that are or may be reclassified subsequently to profit or loss

7,507 (2,957) 20,044 9,580

Other comprehensive income for the period, net of tax

7,730 (2,987) 19,751 9,034

Total comprehensive income for the period 27,213 7,685 95,276 75,748


14

Condensed consolidated statements of financial position

€’000

31 March,

2017 31 December,

2016 31 March,

2016

Assets

Property, plant and equipment 169,502 164,831 152,655

Intangible assets 13,928 13,849 16,604

Investment property 542 542 542

Deferred tax assets 31,382 25,702 22,008

Other long-term receivables 929 948 937

Total non-current assets 216,283 205,872 192,746

Inventories 172,519 166,833 148,590

Trade and other receivables 76,981 71,352 71,258

Tax receivables 8,201 7,647 7,890

Prepaid expenses 38,292 36,283 34,064

Derivative financial assets 68,988 72,338 59,356

Cash and cash equivalents 170,691 185,469 136,048

Total current assets 535,672 539,922 457,206

Total assets 751,955 745,794 649,952

Equity

Share capital 79,850 79,850 79,788

Treasury shares (90) (90) (621)

Share premium 632,085 632,085 654,381

Reserves (153,749) (167,017) (180,412)

Retained earnings (313,621) (333,104) (390,744)

Total equity 244,475 211,724 162,392

Liabilities

Interest-bearing loans 196,645 199,713 265,211

Other long-term liabilities 3,992 3,691 839

Net defined benefit liability 3,917 3,859 3,740

Deferred income 289 296 332

Deferred tax liabilities 2,848 2,869 2,591

Total non-current liabilities 207,691 210,428 272,713

Current portion of interest-bearing loans 65,637 66,836 3,319

Trade and other payables 78,570 95,292 70,719

Dividend payables 31 11,167 -

Deferred Income 390 421 125

Tax payables 18,916 17,032 15,313

Accrued expenses 125,145 122,208 109,416

Derivative financial liabilities 6,774 5,458 3,909

Provisions 4,326 5,228 12,046

Total current liabilities 299,789 323,642 214,847

Total liabilities 507,480 534,070 487,560

Total equity and liabilities 751,955 745,794 649,952


15

Condensed consolidated statements of changes in equity

€’000

Share capital

Treasury shares

Share premium

Reserves

Retained earnings

Total equity

At 1 January 2016 79,788 (621) 654,381 (178,675) (401,416) 153,457

Net profit - - - - 10,672 10,672

Other comprehensive income, net of tax

- - - (2,987) - (2,987)

Total comprehensive income for the period

- - - (2,987) 10,672 7,685

Share incentive plan - - - 1,250 - 1,250

Total contributions and distributions

- - - 1,250 - 1,250

At 31 March 2016 79,788 (621) 654,381 (180,412) (390,744) 162,392

At 1 January 2017 79,850 (90) 632,085 (167,017) (333,104) 211,724

Net profit - - - - 19,483 19,483

Other comprehensive income, net of tax

- - - 7,730 - 7,730

Total comprehensive income for the period

- - - 7,730 19,483 27,213

Share incentive plan - - - 5,538 - 5,538

Total contributions and distributions

- - - 5,538 - 5,538

At 31 March 2017 79,850 (90) 632,085 (153,749) (313,621) 244,475


16

Condensed consolidated statements of cash flows

€’000

3 months ended

31 March

2017 2016

Operating activities

Net profit before income tax 27,419 15,674

Adjustments for:

Depreciation of property, plant and equipment 4,673 4,368

Amortisation of intangible assets 422 955

Change in fair value of borrowings and derivatives financial instruments (144) 2,197

Deferred income (37) (632)

Share incentive plan 5,538 1,250

Unrealised exchange rate differences (5,000) (7,809)

Profit on disposal of property, plant and equipment, intangible assets (3) (20)

Financial income (4,156) (4,517)

Financial expenses 5,635 7,018

Operating profit before changes in working capital and provisions 34,347 18,484

Increase in trade and other receivables, prepaid expenses and derivative financial assets (7,158) (5,150)

Decrease in inventories 1,412 20,952

Decrease in trade and other payables, accrued expenses and derivatives financial liabilities

(16,752) (538)

Decrease in provisions (904) (1,544)

Cash generated from operations 10,945 32,204

Interest received 3,805 5,671

Interest and bank charges paid (4,435) (8,039)

Income taxes paid (11,786) (8,386)

Cash flow from operating activities (1,471) 21,450

Investing activities

Proceeds on sale of property, plant and equipment, intangible assets 31 65

Purchases of property, plant, equipment (2,523) (1,530)

Purchases of intangible assets (468) (212)

Cash flow used in investing activities (2,960) (1,677)

Financing activities

Repayments of borrowings - (56,041)

Decrease of finance lease liabilities - (3)

Dividends paid (11,114) -

Cash flow used in financing activities (11,114) (56,044)

Change in cash and cash equivalents (15,545) (36,271)

Cash and cash equivalents at the beginning of the period net of bank overdrafts 185,365 176,384

Effect of exchange rate fluctuations on cash held 780 (4,394)

Cash and cash equivalents at the end of the period net of bank overdrafts 170,600 135,719


17

Notes to the condensed consolidated interim financial statements of Oriflame

Holding AG

Note 1 • Status and principal activity

Oriflame Holding AG (“OHAG” or the “Company”) is a holding company incorporated in Switzerland and registered at Bleicheplatz 3, CH-8200 Schaffhausen. The principal activity of the Company’s subsidiaries is the direct sale of cosmetics. The condensed consolidated interim financial statements (‘interim financial statements’) of the Company as at and for the three months ended 31 March 2017 comprise the Company and its subsidiaries

(together referred to as the “Group”).

Note 2 • Basis of preparation and summary of significant accounting policies

Statement of compliance The interim financial statements for the three months period ended 31 March 2017 have been prepared by management in accordance with the measurement and recognition principles of IFRS and should be read in conjuction with the consolidated financial statements of the Group as at and for

the year ended 31 December 2016. The interim financial statements were authorised for issue by the Directors on 9 May 2017.

Significant accounting policies, use of judgements and estimates The accounting policies, significant judgements and key sources of estimation uncertainty applied by the Group in these interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2016.

New or amended IFRS standards The new or amended IFRS standards, which became effective 1 January 2017, have had no material effect on the interim financial statements.

Interim Report 1 January 31 March 2017mb.cision.com/Main/1493/2261709/671928.pdf3 months ended 31...

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