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

Highlights 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 2

Seasonality: very low profit contribution from 1H Operating profit Net sales ( million €) ( million €) 1,400 160 1,319 141 140 1,200 120 1,000 100 800 80 548 600 42% 60 400 40 200 14 20 10% 0 0 1H FY2018 FY2018 1H FY2018 FY2018 3

Net Sales Breakdown Sales by segment Exposure to growth markets USA Other 16.9% Sell-in countries 26.8% 24.7% (1H FY2018: 27.6%) Taiwan 2.4% Japan Russia 16.2% 3.1% UK 3.9% Sell-out China Brazil 73.2% 11.4% 4.0% (1H FY2018: 72.4%) France Hong Kong 7.6% 9.8% 4

Net sales up 12.4% at constant exchange rates (8.6% at reported rates) overall sales growth: 8.6% million € local currency growth: 12.4% 400 +2% overall sales growth: 8.6% 350 currencies: -3.8% 300 +8% +49% 250 1H FY2018 200 1H FY2019 150 100 50 0 Comp Non-comp Sell-in FX rates -50 (1) stores stores & others Contribution to growth (2) : 9% 73% 19% (1) Others include LimeLife, marketplaces, mail-orders and other service sales (2) Excluding the impact of foreign currency translation effects 5

Sales growth by geography – Americas and Europe (at constant rates) million € 1H FY2018 1H FY2019 120 +66% 100 +2% 80 60 -1% +10% +12% 40 20 0 (2) France UK USA Brazil Russia Contribution 1% 0% 61% 4% 3% to growth (1) : (1) Excluding foreign currency translation effects (2) Excluding LimeLife, growth is 0.9% at constant rates 6

Sales growth by geography – Asia and Other Countries (at constant rates) million € 1H FY2018 1H FY2019 200 +3% 150 -0% +14% 100 +19% -3% 50 0 Japan Hong Kong China Taiwan Other countries FX rates -50 Contribution -1% 14% 12% -1% 6% to growth (1) : (1) Excluding foreign currency translation effects 7

Same store sales growth profile (1) 1H FY2019 compared to 1H FY2018 6.4% 4.2% 3.6% 3.3% -0.8% -1.9% -4.9% -4.6% -4.8% -6.1% France UK USA Brazil Russia 15.8% 7.6% 5.4% 2.0% 1.3% 1.4% -0.1% -0.6% -2.0% -3.0% -5.1% -7.9% Japan Hong Kong China Taiwan Other Group countries 1H FY2018 1H FY2019 (1) Including own E-commerce and excluding stores closed for renovation 8

Profitability analysis % 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) 9

Gross margin (as % of net sales) -0.4 +0.4 +0.2 -0.4 +0.1 -0.2 -0.1 82.8% 82.4% 1H FX Brand others reclass price LimeLife pro- 1H FY2018 mix rounding Int'l duction FY2019 freight 10

Distribution expenses (as % of net sales) pre- 1H brand LimeLife opening channel 1H FY2018 leverage mix Int'l reclass FX LY mix FY2019 (54.2%) (55.0%) -1.1 -0.5 +0.7 -0.3 +0.4 -0.1 +0.1 11

Marketing expenses (as % of net sales) advertising, mktg LimeLife brand 1H FY2018 event Int'l FX reclass mix 1H FY2019 (14.2%) (14.6%) -0.9 +0.8 -0.1 -0.1 -0.1 12

General & admin expenses (as % of net sales) LimeLife Brand 1H FY2018 Int'l IT FX mix reclass leverage 1H FY2019 (10.5%) (10.7%) +0.5 +0.4 -0.7 -0.2 +0.3 -0.1 13

Operating profit margin (as % of net sales) -0.9 -0.9 2.5% +0.7 -0.7 1.0% +0.4 -0.2 +0.2 -0.2 +0.1 1H ads, LimeLife FX leverage IT price brand pre- channel 1H FY2018 mktg Int'l others mix opening mix FY2019 event LY 14

Working capital ratios 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 Inventory turnover days +6 +3 -6 -7 +21 302 285 1H FY2018 LimeLife lower FX lower lower 1H FY2019 allowance raw mat finished MPP goods boxes 15

Capital expenditures (excl. acquisitions of subsidiaries and financial investments) million € 57.6 45.0 40.5 22.4 13.0 10.4 8.0 5.5 1.7 1.2 stores Info. factories others Total Tech. R&D 1H FY2018 1H FY2019 16

Strategic Review 17

Strategic Review Hero Face Care Product Launch Multi-brand Strategy - Immortelle Reset serum became global - Continued growth for all emerging bestseller brands - Strengthened brand’s association with - Pressed on with LimeLife’s international face care, and boosted face care mix expansion Content Marketing & Engagement Organisational Efficiency & Agility - Prominent brand exposure and relevance - Rolled out new incentive plan to foster with use of aspirational celebrities entrepreneurial culture - Local PR campaigns to showcase brand’s - Other operational improvements on true stories drove awareness, traffic and track: European distribution centre and user-generated content factory in Brazil Omni-channel Experiences Emphasis on Brand Commitments - Unveiled unique retail concepts in key cities - New CSR platform set ambitious goals for each of the Group’s commitments - Expanded presence on Chinese online platforms 18

Outlook Communicate Capitalise on Success of “Pulse” Strategy Brand Values Hero Product - Continue to execute the - Holiday season is key to - Explore possible three- pronged “Pulse” full-year performance extensions to the hero strategy to build trust, product, Immortelle Reset - Holiday campaign will achieve sustainable carry meaningful - Multi-functional team is growth and enhance messages to further set up to leverage on profitability strengthen brand identity collective expertise, in devising 360°-plan and sustaining success 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 19

Disclaimer This document is for information purposes only without any binding effect; in case of 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. 20