Interim report 1 January – 31 March 2014

3 months ended 31 March 2014

  · Local currency sales decreased by 2% and Euro sales decreased by 14% to
€327.2m (€381.3m).
  · Number of active consultants decreased by 5% to 3.5m.
  · EBITDA amounted to €29.4m (€45.2m).
  · Adjusted* operating margin was 7.0% (10.0%), negatively impacted by
approximately 450 bps from currency volatility, partly offset by hedging and
positive price / mix effects, resulting in an adjusted* operating profit of
€23.1m (€38.0m).
  · Adjusted* net profit amounted to €12.0m (€28.0m) and adjusted* EPS amounted
to €0.22 (€0.50).
  · Cash flow from operating activities amounted to €16.9m (€28.4m).
  · Second quarter update: The underlying sales development in the second
quarter to date is approximately -2% in local currency, and the year to date
development is approximately -2% in local currency.
  · New structure of segment reporting reflecting the new Global Business Areas.
* Adjusted for restructuring costs during the quarter €0.4m.

Significant events during and after the end of the quarter

  · In line with the adjusted dividend proposal announced in April, the Board
proposes Q2 dividend payment of €0.25 per share following the AGM on 19 May
2014.
  · Based on the proposed mandate to the Board (subject to approval by the AGM)
and given the exceptional geopolitical events in Russia and Ukraine, impacting
currencies and economic climate, the Board does not intend to make any dividend
payment in Q3. Subsequent dividend payments will be announced in upcoming
quarterly reports.
  · Planned alignment of legal structure continues.

CEO Magnus Brännström comments
“With sharply devaluating currencies and challenges of exceptional nature in our
two largest markets Russia and Ukraine, there is no doubt the company is facing
very tough conditions. As a measure of prudence, the Board is of the opinion
that there should be no dividend payment in Q3. Our new split of Global Business
Areas clearly illustrates the situation: we need to return the momentum and
improve profitability in CIS and Europe while we continue to see a very positive
development in Latin America, Turkey, Africa & Asia.

During the end of the first quarter, additional improvements to the CIS Success
Plan were launched and I am pleased to see the drive among our Leaders despite
the current challenges. There is an undivided focus on restoring growth and
mitigating the negative impact on profitability from the geopolitical situation,
currency headwind and lack of leverage through margin improvements and reduced
cost levels.”

Conference call for the financial community
The company will host a conference call on Wednesday, 7 May at 15.30 CET.

Participant access numbers:
Luxembourg: +352 2 786 0202
Sweden: +46 (0)8 506 443 86
Switzerland: +41 44 580 65 22
UK: +44 20 7153 9154
US: +1 877 423 0830

Confirmation code: 865360#

The conference call will also be audio web cast in “listen-only” mode through
Oriflame’s website: www.oriflame.com or through http://www.media
-server.com/m/p/oe7aw57i

7 May 2014

Magnus Brännström
Chief Executive Officer

For further information, please contact:
Magnus Brännström, Chief Executive Officer, Tel: +352 691 151 930
Gabriel Bennet, Chief Financial Officer, Tel: +41 798 263 713
Johanna Palm, Director Investor Relations, Tel: +46 765 422 672

Oriflame Cosmetics S.A.
24 Avenue Emile Reuter, L-2420, Luxembourg
www.oriflame.com
Company registration no B.8835