Comment on currency impact, actions and sales trend

This information is to meet the requests for clarification and comments on the
impact on Oriflame’s sales and earnings and foreseen actions following the
recent sharp decline in the Russian Rouble.

Oriflame is increasingly impacted by currency movements as a result of the
Russian Rouble devaluation and the company will intensify its efforts to limit
the currency impact for the group. With Russia being the largest market for the
group, representing around 30 percent of total sales, the Russian Rouble is the
currency with the largest impact on group sales and operating margin.

With the current exchange rates (Rouble to Euro at 90) and compared to prior
year, the gross impact of the exchange rates on group sales is estimated to be
approximately 12 percent for the full year 2014 (compared to 10 percent as
estimated at the time of the quarter 3 announcement) and 14 percent in quarter 4
2014. The gross impact of the exchange rates on operating margin is expected to
be slightly above 400 basis points for the full year 2014 (compared to below 400
basis points as estimated at the time of the quarter 3 announcement) and 500
basis points in quarter 4 2014.

Oriflame has a strategy and strong track record of consistently increasing
prices, in line with or above inflation, in order to ensure the income level for
its consultants, sustain a strong brand position as well as to compensate for
currency devaluation. During the last couple of years, the price increases in
the CIS region have averaged mid to high single digit percent year over year.
The recent sharp devaluation of the Rouble together with the increasing
inflation in Russia, require further actions. As a result, Oriflame will
substantially speed up the pace and level of price increases in Russia during
next year as well as continue to seek further efficiency improvements.

“With a large part of our sales generated in Russia, we are clearly impacted by
the recent additional devaluation of the Rouble. We will continue to carry out
our strategy and sequentially implement price increases at levels required to
enable a healthy business development. Despite the macroeconomic difficulties,
I’m pleased to see a continued positive local currency sales trend for the
fourth quarter in line with earlier communication. I am confident that the
earnings opportunity that Oriflame offers will be increasingly attractive in
this environment, offsetting parts of the Euro productivity drop”, CEO Magnus
Brännström comments..

More information to be released in the full-year 2014 announcement.

For additional information, please contact:
Gabriel Bennet, CFO, Oriflame
+41 79 826 3713

Johanna Palm, Director Investor Relations, Oriflame
+46 765 422 672

Founded in 1967, Oriflame is a beauty company selling direct in more than 60
countries. Its wide portfolio of Swedish, nature-inspired, innovative beauty
products is marketed through approximately 3 million independent Oriflame
Consultants, generating annual sales of around €1.4 billion. Respect for people
and nature underlies Oriflame’s operating principles and is reflected in its
social and environmental policies. Oriflame supports numerous charities
worldwide and is a Co-founder of the World Childhood Foundation. Oriflame is a
Luxembourg company group with corporate offices in Luxembourg and Switzerland.
Oriflame Cosmetics is listed on the Nasdaq Stockholm Exchange.