Interim results for the half-year ended 30 September 2010
Agenda Results Highlights Strategic Review and Future Prospects 2
1. Results Highlights (million ) Net sales Operating profit Net profit 1 400 +27.8%, + 72.0m 350 331,2 300 259,3 250 200 150 100 50 45 +17.6%, + 5.7m 40 38,1 35 32,4 30 25 20 15 10 5 45 +19.1%, + 4.8m 40 35 29,8 30 25,1 25 20 15 10 5 0 Sep 2009 Sep 2010 0 Sep 2009 Sep 2010 0 Sep 2009 Sep 2010 Note: 1. Net profit attributable to equity holders 3
1. Results Highlights Seasonality FY 2010 Ratios are not representative of FY2011 annual results Net sales ( m) Net profit 1 ( m) 650 550 612,2 90 80 70 81,6 450 350 250 42% 259,3 60 50 40 30 31% 25,1 150 20 50-50 1H2010 FY2010 10 0 1H2010 FY2010 Note: 1. Net profit attributable to equity holders 4
1. Results Highlights sales per segment and geography segments Geography Sell-in 25% B-to-B 4% Other Japan countries 25% 30% Sell-out 71% Brazil 4% Taiwan 4% UK 5% Hong Kong 9% France 11% USA 12% 5
1. Results Highlights new products and new categories particular focus on facial skin care and fragrances which drive higher margins, loyalty and image But also make-up and men s grooming 6
1. Results Highlights sales growth by segment million 180 160 140 120 100 80 60 40 20 0 Contribution to growth (2) : +3.6% Comp stores +86% Non-comp stores +8% Other Sell-Out (1) +24% overall sales growth: 27.8% local currency growth: 16.4% currencies: 11.4% +19% Sep 2009 Sep 2010 Sell-in B-to-B FX rates 13% 45% 2% 35% 4% (1) Includes Mail-order, Internet and other sales (2) Excluding foreign currency translation effects 7
1. Results Highlights sales growth by geography million 100 90 80 70 60 50 40 30 20 10 0 +11.1% +28.2% Sep 2009 Sep 2010-0.7% -0.7% +35.0% +4.2% +19.5% +34.5% Contribution to growth (1) : 17% 14% 1% -1% 10% (1) Excluding foreign currency translation effects -1% 5% 54% 8
1. Results Highlights sales growth emerging and fast growing countries +20% +44% +43% +33% +44% +18% Brazil Russia China Mexico Korea Germany Sep 2009 Sep 2010 9
1. Results Highlights Stores network 1,541 +101 1,642 777 816 764 826 Mar 2010 Sep 2010 own stores non-own stores 10
1. Results Highlights net stores openings 62 43 22 14 13 11 16 29 Asia-Pacific Americas Europe Total Sep 2009 Sep 2010 11
CHINA: Shanghai Nine Cloud May 10 - Opening 12
RUSSIA: Moscow Kashirskii Mall June 10 - Opening 13
Melvita : Paris rue de Rennes July 10 - Opening Melvita Flagship opening: 96 rue de Rennes 75006 PARIS 14
1. Results Highlights net stores openings emerging and fast growing countries 14 3 5 4 5 1 Brazil Russia India China Korea Spain Sep 2010 15
1. Results Highlights Same stores ratios 12,4% 12,0% 11,0% 9,0% 1,2% 6,8% 5,3% 1,6% 1,4% 5,9% 3,5% 4,5% 1,0% 3,6% -4,9% -0,7% -0,6% -2,6% mar 2010 Sep 2010 16
1. Results Highlights profitability analysis % of net sales period ended 30 September 2009 2010 Change Gross profit margin 80.1 81.1 1.0 Distribution expenses (47.4) (46.8) 0.6 Marketing expenses (10.5) (12.5) (1.9) G & A expenses (10.3) (11.0) (0.6) Other (losses)/ gains 0.7 0.6 (0.1) Operating profit margin 12.5 11.5 (1.0) 17
1. Results Highlights capital expenditures million 30 25 23,9 20 15 14,5 16,3 10 5 0 4,6 acquisition of subs 8,1 2,5 3,2 0,4 3,2 3,6 stores software others total Sep 2009 Sep 2010 18
1. Results Highlights working capital ratios 275 224 195 191 32 29 inventory days days of trade receivables Sep 2009 Sep 2010 days of trade payables (1) Average inventory turnover days: average inventory divided by cost of sales and multiplied by 182.5. Average inventory equals the average of net inventory at the beginning and end of each period. (2) Turnover days of trade receivables: average trade receivables divided by net sales and multiplied by 182.5. Average trade receivables equals the average of net trade receivables at the beginning and end of each period. (3) Turnover days of trade payables: average trade payables divided by total purchases and multiplied by 182.5. Average trade payables equals the average of trade payables at the beginning and end of each period. 19
1. Results Highlights Balance sheet key items comparison (million ) 31 Mar 30 Sep 2010 2010 Change Non-current assets 248.7 279.0 30.3 Trade receivables, net 47.9 55.9 8.1 Inventories, net 67.5 86.1 18.7 Cash and cash equivalents 41.8 273.6 231.8 Total assets 436.6 733.6 297.0 Trade payables 59.9 71.1 11.1 Total borrowings 61.9 85.4 23.5 Total equity 161.3 497.5 336.2 20
1. Results Highlights - Balance Sheet Ratios 31 Mar 30 Sep period ended 2010 2010 Profitability Return on total assets (ROA)(1) 19.4% 4.1% Return on equity (ROE)(2) 51.9% 6.0% Liquidity Current ratio (times)(3) 0.90 3.00 Quick ratio (times)(4) 0.58 2.43 Capital adequacy Gearing ratio(5) 14.2% 11.6% Debt to equity ratio(6) 12.4% ns (1)Net profit / total assets (2) Net profit attributable to equity holders of the Company / shareholders' equity excluding minority interest (3) Current assets / current liabilities (4) Current assets - stocks / current liabilities (5) Total debt / total assets) (6) Net debt / total assets - total liabilities * 100%) 21
2. Strategic review and prospects First half achievements: Sales Growth Increased Same Stores sales growth Strong development of emerging countries Strong development of travel retail and B-to-B Investments 62 net store openings (vs. 43), renovations Marketing: promo tools, advertising Launched Melvita in major countries Increased infrastructure in R&D, Marketing and international management Re-built inventories 22
2. Strategic review and prospects Second half prospects: focus on execution Future Growth Continue investment in new stores in emerging and fast growing countries Focus on the holiday season to achieve successful sales during this key period Continue to develop Melvita in France and key markets Explore strategic acquisition opportunities Operational Efficiencies Finalize SAP for first go-lives in FY2011 Continue improving supply chain forecasting and inventory management Implement factories and central warehouse projects 23