Interim report 1 January

Interim report 1 January - 30 June 2011

Three months ended 30 June 2011

  · Local currency sales increased by 5% and Euro sales decreased by 2%
to €366.7m (€375.0m). Excluding Oriflame's business in Iran, sales
growth was 7% in local currency.
  · Average size of the sales force increased by 5% to 3.8m consultants
and closing sales force was up by 4%.
  · EBITDA amounted to €45.7m (€44.3m).
  · Adjusted operating margin was 10.5% (10.1%) resulting in an adjusted
operating profit of €38.4m (€37.9m).
  · Adjusted net profit amounted to €24.2m (€29.5m) and adjusted EPS
after dilution amounted to €0.42 (€0.52), negatively affected by €1.4m
in foreign exchange losses compared to gains of €8.1m last year.
  · Cash flow from operating activities amounted to €31.1m (€22.9m).
  · Credit facilities of €430m secured.

Six months ended 30 June 2011

  · Local currency sales increased by 6% and Euro sales increased by 4%
to €763.5m (€736.8m). Excluding Oriflame's business in Iran, sales
growth was 8% in local currency.
  · EBITDA amounted to €99.1m (€93.6m).
  · Adjusted operating margin was 11.1% (10.9%) resulting in an adjusted
operating profit of €85.1m (€80.1m).
  · Adjusted net profit amounted to €55.6m (€66.7m) and adjusted EPS
after dilution amounted to €0.97 (€1.17).
  · Cash flow from operating activities amounted to €48.5m (€43.8m).

Significant events after the end of the period

  · In mid July, Oriflame issued new private placement notes of $195m
and €25m respectively.

“The weak market conditions continued in the second quarter and
Oriflame's sales in local currency increased by 5%. The positive
development in EMEA and Asia continues, where Asia is becoming
increasingly important for the overall performance of the group. Despite
the strong head wind of currencies, I am pleased to note that the
operating margin continues to improve. On top of this, we managed to
renew our credit facility and complete additional private placement
notes with longer maturities and lower cost. I am confident that the
group is in a good position to grow further once the market conditions
improve,” CEO Magnus Brännström comments.

For further information, please contact:

Magnus Brännström, Chief Executive Officer
                                 Telephone: +35 269 115 1930
Gabriel Bennet, Chief Financial
Officer                                            Telephone: +41 798
263 713
Joakim Banestig, Sr. Director Investor Relations
                             Telephone: +41 791 033 521
Johanna Palm, Sr. Manager Investor
Relations                                Telephone: +46 765 422 672

Oriflame Cosmetics S.A.
24 Avenue Emile Reuter, L-2420, Luxembourg
www.oriflame.com (http://www.oriflame.com)
Company registration no B.8835
Interim report 1 January - 30 June 2011

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