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Year-end report 1 January – 31 December 2013

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3 months ended 31 December 2013

  • Local currency sales decreased by 1% and Euro sales decreased by 10% to €371.2m (€410.6m).
  • Number of active consultants increased by 1% to 3.5m.
  • EBITDA amounted to €52.0m (€64.1m).
  • Adjusted* operating margin was 12.6% (13.7%) resulting in an adjusted operating profit of €46.8m (€56.2m).
  • Adjusted* net profit amounted to €27.2m (€37.2m) and adjusted EPS amounted to €0.49 (€0.65).
  • Cash flow from operating activities amounted to €63.7m (€77.9m).
  • First quarter update: The underlying sales development in the first quarter to date is around -3% in local currency.

12 months ended 31 December 2013

  • Local currency sales decreased by 1% and Euro sales decreased by 6% to €1,406.7m (€1,489.3m).
  • EBITDA amounted to €166.5m (€204.2m).
  • Adjusted* operating margin was 10.1% (11.8%) resulting in an adjusted operating profit of €142.4m (€175.1m).
  • Adjusted* net profit amounted to €84.4m (€121.5m) and adjusted EPS amounted to €1.52 (€2.13).
  • Cash flow from operating activities amounted to €112.1m (€183.7m).
  • The Board of Directors will propose a total dividend for 2013 of €1.00 (€1.75) per share, corresponding to 71 percent of net profit, as previously communicated paid in quarterly instalments, with the first payment amounting to €0.25 per share payable following the AGM on 19 May 2014.

* Adjusted for restructuring costs during the quarter €2.2m, on YTD €5.8m

CEO Magnus Brännström comments

“During the fourth quarter, CIS and Europe underperformed. The revised Success Plan introduced in the CIS region last year has not yet resulted in desired effects, and thus after evaluating the first phase further improvements will be introduced during the spring. In addition, strong currency headwind is impacting sales and profit negatively and Ukraine continues to be a challenge fuelled by the recent development in the country.

Looking at the operations, I feel confident about the new product launch plan, the development of our online business and the upcoming improvements in our sales and recruitment activities. I am also pleased to see that our measures to drive efficiency are progressing well in line with plan.

Importantly, our key growth markets in Asia, Latin America and Africa continue to perform very well, representing around 30% of total sales with growth of approximately 20%. Further geographical expansion is continuing.”

Conference call for the financial community
The company will host a conference call on Friday, 14 February at 09.30 CET.

Participant access numbers:
Luxembourg: +352 2 786 0202
Sweden: +46 (0)8 506 443 86
Switzerland: +41 44 580 65 22
UK: +44 20 7153 9154
US: +1 877 423 0830

Confirmation code: 973258#

The conference call will also be audio web cast in “listen-only” mode through Oriflame’s website: www.oriflame.com or through http://www.media-server.com/m/p/gedyetka

14 February 2014

Magnus Brännström
Chief Executive Officer

For further information, please contact:
Magnus Brännström, Chief Executive Officer,  Tel: +352 691 151 930
Gabriel Bennet, Chief Financial Officer,           Tel: +41 798 263 713
Johanna Palm, Director Investor Relations,     Tel: +46 765 422 672

Oriflame Cosmetics S.A.
24 Avenue Emile Reuter, L-2420, Luxembourg
www.oriflame.com
Company registration no B.8835

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