Final results for the year ended 31 March 2011
Agenda Results Highlights Strategic Review and Future Prospects 2
1. Results Highlights (million ) Net sales Operating profit Net profit 900 800 +26.1%, + 160.0m 772,3 160 140 +19.9%, + 21.9m 132,1 160 140 +21.5%, + 18.1m 700 600 500 400 300 200 612,2 120 100 80 60 40 110,2 120 100 80 60 40 84,6 102,7 100 20 20 0 0 0 Mar 2010 Mar 2011 Mar 2010 Mar 2011 Mar 2010 Mar 2011 3
1. Results Highlights sales per segment and geography segments Geography Sell-in 23% B-to-B Other 3% Japan countries 25% 22% Russia 4% Brazil 5% Hong Kong 9% Sell-out 74% USA 12% UK 5% France 10% China 4% Taiwan 4% 4
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 5
1. Results Highlights sales growth by segment million 450 400 350 300 250 200 150 100 50 0 Contribution +5.3% Comp stores +66% Non-comp stores +5% Other Sell-Out(1) Mar 2010 Mar 2011 Sell-in B-to-B FX rates 20% 48% 0% 30% 2% to growth (2) : (1) Includes Mail-order and other sales (2) Excluding foreign currency translation effects overall sales growth: 26.1% local currency growth: 16.2% currencies: 9.9% +21% +10% 6
1. Results Highlights sales growth by geography (1/2) Mar 2010 Mar 2011 +4% +7% +21% +19% +40% Contribution to growth ** : France L'Occitane* France Other UK USA L'Occitane 4% -4% 7% 3% USA O&Co. Brazil -4% 5% Russia 9% * Excluding B-to-B to international customers; Melvita and private label sales in France ** Excluding foreign currency translation effects 7
1. Results Highlights sales growth by geography (2/2) +11% Mar 2010 Mar 2011 +28% +34% +46% +8% Contribution to growth * : Japan Hong Kong China Taiwan Other countries 17% 17% 10% 2% 35% FX rates * Excluding foreign currency translation effects 8
1. Results Highlights sales growth in other fast growing countries +41% +27% +30% +68% +15% Korea Mexico Germany Spain Italy Mar 2010 Mar 2011 9
1. Results Highlights Stores network 1,541 777 +287 1,828 933 764 895 Mar 2010 Mar 2011 own stores non-own stores 10
1. Results Highlights net stores openings 131 77 34 50 7 23 36 58 Asia-Pacific Americas Europe Total Mar 2010 Mar 2011 11
1. Results Highlights net stores openings emerging and fast growing countries 14 14 5 24 1 Brazil Russia India China Mexico 8 7 8 7 6 Korea Canada Spain Germany Italy 12
BRAZIL, Salvadore Salvadore Norte Feb 11 13
INDIA, Kolkata - South City Mall Jan 11 14
CHINA, Yantai Yantai Zhenhua Jan 11 15
Melvita : JAPAN, Yokohama Lumine Mar 11 HONG KONG - Time Square Jan 11 16
1. Results Highlights Same stores ratios 4,0% 14,5% 8,6% 2,7% 4,3% 9,0% 6,2% 18,4% -0,6% -2,4% France UK USA Brazil Russia 1,8% 6,8% 20,0% 9,4% 8,3% 7,5% 4,9% 4,0% 5,3% 2,6% -2,7% -0,6% Japan Hong Kong China Taiwan Other Mar 2010 Mar 2011 countries Group 17
1. Results Highlights profitability analysis % of net sales year ended 31 March 2009 2010 2011 Change Gross profit margin 80.4 81.2 82.5 1.3 Distribution expenses (44.6) (44.2) (44.5) (0.2) Marketing expenses (11.1) (1) (9.1) (11.0) (1.9) R&D expenses (0.7) (0.7) (0.0) G & A expenses (9.8) (9.7) (9.6) 0.1 Other (losses) / gains 0.2 0.5 0.3 (0.2) Operating profit margin 15.0 18.0 17.1 (0.9) (1) includes R&D. 18
1. Results Highlights capital expenditures million 60 50 40 30 29,8 35,6 49,4 20 10 7,3 3,4 15,4 5,4 7,8 8,4 4,7 3,1 0-10 -0,3 acquisition of subs stores Info. Tech. factories R&D other total Mar 2010 Mar 2011 19
1. Results Highlights working capital ratios 230 228 176 179 27 25 inventory days days of trade receivables Mar 2010 Mar 2011 days of trade payables on Cost of Sales (1) Average inventory turnover days: average inventory divided by cost of sales and multiplied by 365. 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 365. 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 cost of sales and multiplied by 365. Average trade payables equals the average of trade payables at the beginning and end of each period. 20
1. Results Highlights Balance sheet key items comparison as at: 31 Mar 31 Mar (million ) 2010 2011 Change Non-current assets 248.7 290.2 41.5 Trade receivables, net 47.9 59.6 11.8 Inventories, net 67.5 101.3 33.9 Cash and cash equivalents 41.8 300.1 258.3 Total assets 436.6 785.9 349.3 Trade payables 59.9 72.5 12.5 Total borrowings 61.9 60.0 (1.9) Other current liabilities 84.5 6.3 (78.2) Total equity 161.3 565.3 404.0 21
1. Results Highlights - Balance Sheet Ratios 31 Mar 31 Mar year ended 2010 2011 Profitability Return on Capital Employed (ROCE) (1) 31.3% 30.4% Return on equity (ROE) (2) 51.9% 17.8% Liquidity Current ratio (times) (3) 0.90 3.35 Quick ratio (times) (4) 0.58 2.67 Capital adequacy Gearing ratio (5) 14.2% 7.6% Debt to equity ratio (6) 12.4% net cash (1)Net profit / total assets (4) Current assets - stocks / current liabilities (2) Net profit attributable to equity owners/ shareholders' equity excluding minority interest (3) Current assets / current liabilities (5) Total debt / total assets) (6) Net debt / total assets - total liabilities * 100%) 22
1. Results Highlights Earnings per share, dividend as at: 31 Mar 2011 Earnings per share ( ) 0.068 total dividend ( million) 19.9 payout ratio 20% dividend per share ( ) 0.0135 23
2. Strategic review and prospects achievements: Sales Growth Increased Same Stores sales growth Strong development of emerging countries Strong development of travel retail Investments 131 net store openings (vs. 77), renovations Marketing: promo tools, advertising Launched Melvita in major countries: Japan, Taiwan, Korea, USA, UK, Russia Increased infrastructure in R&D, Marketing and international management Re-built inventories 24
2. Strategic review and prospects Prospects for FY2012: Future Growth Continue fast pace investment in new stores in emerging and fast growing countries, and in R&D Further develop the awareness of our brands, notably leveraging the digital media Focus on growth opportunities in the USA Continue to develop Melvita in key markets Explore strategic development opportunities in emerging countries Operational Efficiencies Implement our SAP core model in other countries and prepare SAP for manufacturing improve supply chain management (S&OP process, forecasting) Implement factories and central warehouse projects Merge back-office functions at our factories 25
angelica Hydratation : essential for beautiful Skin Moisturising and revitalising effect 26