H A L F Y E A R R E S U L T S 30 th June 2004 P r e s e n t a t i o n of Mr. C h r i s t i a n M U L L I E Z
Consolidated group sales at the end of June, 2004 (in billions of euros) 7.14 7.4 Growth Like-for-like basis +6.4% exchange rate impact -3.3% external growth impact +0.5% 30.06.2003 30.06.2004 Growth Published figures +3.6% 2
Some significant examples of exchange rates evolution (Euro parity) Weight in consolidated sales at 30 th June 2004 Average rate June 2003 Average rate June 2004 2004/200 3 US DOLLAR 23.7% 0.898 0.817-9.0% POUND STERLING 5.6% 1.451 1.487 +2.5% YEN (100) 2.6% 0.754 0.756 +0.3% CANADIAN DOLLAR 2.6% 0.622 0.608-2.2% MEXICAN PESO 1.8% 0.085 0.072-14.4% CHINA YUAN 1.8% 0.108 0.099-9.0% NB : The Euro zone represents 44.4% of consolidated sales at 30 th June 2004 3
Consolidated sales and cosmetics sales by division at the end of June, 2004 (in millions of euros) 30.06.2003 30.06.2004 Like-for-like basis Growth Published figures Professional Products 980 1,027 +7.3% +4.9% Consumer Products 3,951 4,039 +5.1% +2.2% Luxury Products 1,575 1,640 +6.9% +4.0% Active Cosmetics 429 498 +17.5% +16.0% Cosmetics total 6,991 7,254 +6.5% +3.8% Dermatology (*) 139 131 +0.5% -5.6% Group total 7,136 7,397 +6.4% +3.6% * Group s share, i.e. 50% 4
Cosmetics sales by geographic zone at the end of June 2004 (in millions of euros) 30.06.2003 30.06.2004 Like-for-like basis Growth Published figures Western Europe 3,834 3,902 +1.7% +1.8% North America 1,873 1,823 +6.2% -2.7% Rest of the world 1,284 1,528 +21.4% +19.1% Cosmetics total 6,991 7,254 +6.5% +3.8% 5
Cosmetics sales in the rest of the world at the end of June 2004 (in millions of euros) 30.06.2004 Like-for-like basis Growth Published figures Asia 626 +22.1% +23.3% Latin America 344 +17.9% +8.3% Eastern Europe 256 +33.4% +28.3% Other countries 302 +15.2% +17.0% Rest of the world total 1,528 +21.4% +19.1% 6
From consolidated sales to operating profit (in millions of euros) 30.06.2003 30.06.2004 Growth Sales 7,136.8 7,396.8 +3.6% Purchases and variation in stocks -1,255.0-1,297.3 +3.4% Personnel costs -1,381.9-1,383.9 +0.1% External charges -3,175.2-3,290.4 +3.6% Taxes other than on income -105.1-110.1 +4.8% Depreciations -216.9-222.7 +2.7% Provisions +34.4 +26.1 - Operating profit 1,037.2 1,118.4 +7.8% 7
Charges to provisions (in millions of euros) Charges 30.06.2003 Reversals Charges 30.06.2004 Reversals Provisions for current asset depreciation Provisions for liabilities and charges 115.1 113.4 108.9 103.1 57.5 93.5 70.1 102.0 of which reversals (not used) 20.1 20.8 Total 172.7 207.1 181.3 207.5 +34.4 +26.1 8
Consolidated profit and loss accounts in % of sales Sales 2003 First-half 100 2004 First-half 100 Purchases and variation in stocks 17.6% 17.5% Personnel costs 19.4% 18.7% External charges 44.5% 44.5% Operating profit 14.5% 15.1% 9
From operating profit to pre-tax profit (in millions of euros) 30.06.2003 30.06.2004 Growth Operating profit 1,037.2 1,118.4 +7.8% Exchange gains and losses +91.9 +21.7 - Adjusted operating profit (1) 1,129.1 1,140.1 +1.0% As % of sales 15.8% 15.4% Net financial expenses -48.1-49.0 - Pre-tax profit of fully consolidated companies 1,080.9 1,091.2 +1.0% (1) Operating profit including exchange gains and losses 10
From pre-tax profit to net operational profit (1) after minority interests (in millions of euros) 30.06.2003 30.06.2004 Growth Pre-tax profit of fully consolidated companies 1,080.9 1,091.2 +1.0% Income tax -357.7-355.9-0.5% Net profit of fully consolidated companies 723.2 735.3 +1.7% Share in net operational profit of equity affiliates +190.5 +233.2 +22.4% Net operational profit (1) 913.7 968.5 +6.0% Minority interests -5.3-2.7 - Net operational profit (1) after minority interests 908.4 965.7 +6.3% (1) Net profit before provisions for depreciation of treasury shares, capital gains and losses on fixed assets, restructuring costs and amortisation of goodwill 11
From net operational profit (1) to net income after minority interests (in millions of euros) 30.06.2003 30.06.2004 Net operational profit (1) 913.7 968.5 Provisions for depreciation of treasury shares -91.1 +20.4 Capital gains and losses on disposals of fixed assets-net -2.4 +3.2 Restructuring costs -7.3-0.2 Amortisation of goodwill -24.2-30.9 Net income before minority interests 788.7 960.9 Growth +6.0% - - - - +21.8% Minority interests -5.3-2.7 - Net income after minority interests 783.4 958.2 +22.3% (1) Net profit before provisions for depreciation of treasury shares, capital gains and losses on fixed assets, restructuring costs and amortisation of goodwill 12
Compared consolidated statements of cash flows (in millions of euros) Net income of fully consolidated companies Depreciation and provisions Gains and losses on disposals of assets, change in deffered tax and others Operating net cash 30.06.2003 30.06.2004 598.6 345.9-41.6 Cash flow of fully consolidated companies 902.9 Dividends received from equity affiliates 120.2 Change in working capital requirement -296.2 Capital expenditures -250.7-476.2 Dividends paid -442.1 Divestments and others +6.3 Residual cash flow (before acquisitions or disposals) +40.4 Net change in the scope of consolidation* -24.0 Residual cash flow +16.4 727.4 114.0 2.5 843.9 138.8-449.2-237.3 +296.2-505.8 +8.0-201.6-433.1-634.7 * Including debts and liabilities 13
Gearing (*) 31.7% 29.6% 24.5% 16.3% 31.12.2002 30.06.2003 31.12.2003 30.06.2004 (*) Treasury shares deducted from shareholders equity 14
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