Oriflame China - hkdsa · •Oriflame’s long term target is to achieve an annual sales growth of around 10% in local currency and to reach an operating margin of 15% in 2009

Oriflame China

Björn Holmsen（比恩侯姆森）

Senior Advisor

© Oriflame 2007. All rights reserved

Introduction to Oriflame

• Founded in 1967

• Cosmetics company selling direct

• 2.1 million sales consultants

• Operations in 59 countries of which:

• Market leading position in more than 30 markets

• Franchisees in 13 countries

• Production facilities in Poland, Sweden, India, China and Russia

• 6,400 employees

Latin America, 4% Asia, 5%

Western Europe, 10%

CE & Med. 25%

Sales by Region 2006

CIS & Baltics, 56%

€ million 2006 2005 Change

Sales 917.9 765.7 20%

-

20%

19%

-

Gross margin 69.1% 68.3%

EBITDA 144.6 120.3

Op. profit 127.1 106.7

Op. margin 13.8% 13.9%


A long term Growth Company

77 90132

181 188242

325355

327 333395

447

544

652 671

766

918

0

200

400

600

800

1000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

1990 - 2006: CAGR sales of 17%

€m


Products and Brands

• 800 products of which 1/3 new each year

Sales by Category 2006

Fragrances 17%

Colour C. 26%

Skin care 26%

Accessories 11%

Toiletries 19%

1. Skin CareTrust & Competence Enhancer

2. Colour CosmeticsProfessional Up-trader & Modernizer

3. FragranceEmotional & Prestige Booster

4. ToiletriesEnergizer

5. AccessoriesSales Driver


The Oriflame Catalogue

• Oriflame’s ”shop window”

• New offers and catalogues every third week•100 million copies printed annually•35 languages

• Forceful combination of product and catalogue development in Stockholm


Regional Overview, Jan - Sep 2007

9M 2007 CIS & Baltics

CE. & Med.

WE & Africa Asia Latin

Am.

€45.9m+47%

€35.1m+19%

€3.4m(10%)

83 500+24%

€4.3m n.m

239 900+53%

Sales Growth

€416.8m +24%

€179.3m+14%

€70.5m +9%

Op. Profit Change

€76.2m+18%

€34.1m+10%

€8.0m -

Sales Force, avgchange

1 161 700+28%

525 6002%

142 200+15%


Financial Outlook and Policies

• Sales growth for 2007 is expected to be well above15% in local currency and operating margins, excluding restructuring costs, are expected to be slightly better than in 2006

• Oriflame’s long term target is to achieve an annualsales growth of around 10% in local currency and to reach an operating margin of 15% in 2009

• Dividend policy is to distribute at least 50% of netprofit annually

•Since listing, Oriflame has distributed a total of €5.26 per share to shareholders in ordinarydividends and redemption

Oriflame China Milestones• Rep Office in 2003• Business License 2004• Factory in Kunshan Ready 2005• DS License September 2006• Branches in New Provinces in 2007• Strengthening Local Organsiation October 2007• Currently Applying for New Licenses…

Oriflame Presence in China

Nanjing Wuxi

Suzhou Shanghai (HQ)

Chengdu

Beijing

GuangzhouShenzhen

New MD Oriflame China

• Mr. Ola Strömberg

Documents

Oriflame China - hkdsa · •Oriflame’s long term target is to achieve an annual sales growth of around 10% in local currency and to reach an operating margin of 15% in 2009