Highlights For the six months ended 30 September 2017 2018 Change - - PowerPoint PPT Presentation

Highlights

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For the six months ended 30 September 2017 2018 Change (million €)

Net sales – reported rates 548.2 595.4 +8.6% Growth at constant rates +12.4% Like-for-like growth* +4.9%

Gross profit margin 82.8% 82.4%

• 0.4 pp

Operating profit margin 2.5% 1.0%

• 1.5 pp

Net profit margin 2.0% 0.9%

• 1.1 pp

Earnings per share (€ per share) 0.008 0.005

• 37.5%

Net cash 167.2 164.4

• 1.7%

* On a like-for-like basis: at constant rates and excluding Le Couvent des Minimes and LimeLife

Seasonality: very low profit contribution from 1H

548 1,319

200 400 600 800 1,000 1,200 1,400

1H FY2018 FY2018

Net sales (million €) 42%

14 141

20 40 60 80 100 120 140 160

1H FY2018 FY2018

Operating profit (million €) 10%

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Net Sales Breakdown

Sales by segment Exposure to growth markets

USA 16.9% Japan 16.2% China 11.4% Hong Kong 9.8% France 7.6% Brazil 4.0% UK 3.9% Russia 3.1% Taiwan 2.4% Other countries 24.7% Sell-out 73.2% Sell-in 26.8%

(1H FY2018: 72.4%) (1H FY2018: 27.6%)

• 50

50 100 150 200 250 300 350 400 Comp stores Non-comp stores & others Sell-in FX rates

million €

1H FY2018 1H FY2019 9%

• verall sales growth: 8.6%

local currency growth: 12.4% currencies: -3.8% Contribution to growth(2) : 73% 19% +2% +49% +8%

• verall sales growth: 8.6%

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(1) Others include LimeLife, marketplaces, mail-orders and other service sales (2) Excluding the impact of foreign currency translation effects

Net sales up 12.4% at constant exchange rates

(8.6% at reported rates)

(1)

20 40 60 80 100 120 France UK USA Brazil Russia 1H FY2018 1H FY2019 1% 0% 61% 4% +2% +66% 3% +10% +12% Contribution to growth(1) :

• 1%

million €

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(1) Excluding foreign currency translation effects (2) Excluding LimeLife, growth is 0.9% at constant rates

Sales growth by geography – Americas and Europe

(at constant rates)

(2)

• 50

50 100 150 200 Japan Hong Kong China Taiwan Other countries FX rates 1H FY2018 1H FY2019

• 1%

14% 12%

• 1%

6%

• 0%

+19% +14%

• 3%

+3% Contribution to growth(1) : million €

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(1) Excluding foreign currency translation effects

Sales growth by geography – Asia and Other Countries

(at constant rates)

1.4%

• 5.1%

15.8%

• 7.9%
• 2.0%
• 0.1%

1.3% 5.4% 7.6%

• 3.0%
• 0.6%

2.0%

Japan Hong Kong China Taiwan Other countries Group 1H FY2018 1H FY2019

• 4.9%
• 1.9%
• 6.1%

3.6%

• 4.8%
• 4.6%
• 0.8%

3.3% 6.4% 4.2%

France UK USA Brazil Russia

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(1) Including own E-commerce and excluding stores closed for renovation

Same store sales growth profile (1)

1H FY2019 compared to 1H FY2018

Profitability analysis

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% of net sales For the six months ended 30 September 2017 2018 Change

Gross profit margin 82.8 82.4 (0.4) Distribution expenses (54.2) (55.0) (0.8) Marketing expenses (14.2) (14.6) (0.4) Research & development expenses (1.4) (1.4) 0.0 General & administrative expenses (10.7) (10.5) 0.2 Other losses & gain from J.V. 0.2 0.1 (0.1) Operating profit margin 2.5 1.0 (1.5)

82.8%

• 0.4
• 0.4
• 0.2
• 0.1

+0.1 +0.2 +0.4 82.4% 1H FY2018 FX Brand mix

• thers

rounding reclass price LimeLife Int'l pro- duction freight 1H FY2019

Gross margin (as % of net sales)

10

(54.2%)

• 1.1
• 0.5
• 0.3
• 0.1

+0.1 +0.4 +0.7 (55.0%) 1H FY2018 leverage brand mix LimeLife Int'l reclass FX pre-

• pening

LY channel mix 1H FY2019

Distribution expenses (as % of net sales)

11

(14.2%)

• 0.9
• 0.1
• 0.1
• 0.1

+0.8 (14.6%) 1H FY2018 advertising, mktg event LimeLife Int'l FX reclass brand mix 1H FY2019

Marketing expenses (as % of net sales)

12

(10.7%)

• 0.7
• 0.2
• 0.1

+0.3 +0.4 +0.5 (10.5%) 1H FY2018 LimeLife Int'l IT FX Brand mix reclass leverage 1H FY2019

General & admin expenses (as % of net sales)

13

2.5%

• 0.9
• 0.9
• 0.7
• 0.2
• 0.2

+0.1 +0.2 +0.4 +0.7 1.0%

1H FY2018 ads, mktg event LimeLife Int'l FX

• thers

leverage IT price brand mix pre-

• pening

LY channel mix 1H FY2019

Operating profit margin (as % of net sales)

14

Working capital ratios

15

Inventory turnover days

285 +21 +6 +3

• 6
• 7

302

1H FY2018 LimeLife lower allowance FX lower raw mat MPP boxes lower finished goods 1H FY2019 as at: 30 Sep 2017 30 Sep 2018 Change Inventory turnover days (based on cost of sales) 285 302 17 Trade receivables turnover days (based on net sales) 34 33

• 1

Trade payables turnover days (based on cost of sales) 200 204 4 Cash Cycle (days of net sales) 49 51 2

40.5 5.5 10.4 1.2 57.6 22.4 8.0 13.0 1.7 45.0 stores Info. Tech. factories R&D

• thers

Total million € 1H FY2018 1H FY2019

Capital expenditures

(excl. acquisitions of subsidiaries and financial investments)

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Strategic Review

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Strategic Review

Hero Face Care Product Launch

• Immortelle Reset serum became global

bestseller

• Strengthened brand’s association with

face care, and boosted face care mix

Content Marketing & Engagement

• Prominent brand exposure and relevance

with use of aspirational celebrities

• Local PR campaigns to showcase brand’s

true stories drove awareness, traffic and user-generated content

Omni-channel Experiences

• Unveiled unique retail concepts in key

cities

• Expanded presence on Chinese online

platforms

Multi-brand Strategy

• Continued growth for all emerging

brands

• Pressed on with LimeLife’s international

expansion

Organisational Efficiency & Agility

• Rolled out new incentive plan to foster

entrepreneurial culture

• Other operational improvements on

track: European distribution centre and factory in Brazil

Emphasis on Brand Commitments

• New CSR platform set ambitious goals

for each of the Group’s commitments

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Outlook

With a renewed sense of focus, the Group is confident to pursue its mission to be a leader in the affordable premium natural beauty space and deliver long-term value to its shareholders

• Explore possible

extensions to the hero product, Immortelle Reset

• Multi-functional team is

set up to leverage on collective expertise, in devising 360°-plan and sustaining success

“Pulse” Strategy

• Holiday season is key to

full-year performance

• Holiday campaign will

carry meaningful messages to further strengthen brand identity

Communicate Brand Values

• Continue to execute the

three-pronged “Pulse” strategy to build trust, achieve sustainable growth and enhance profitability

Capitalise on Success of Hero Product

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This document is for information purposes only without any binding effect; in case

• f any inaccuracies, incompleteness or inconsistency with other documents, only

the Company’s latest issued annual or interim report for detailed financials shall prevail and shall be deemed to be the only official document. The financial information and certain other information presented in a number of tables have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers.

Disclaimer