Financial highlights

Highlights

3

* At constant rates, unless otherwise stated.

FY2020 H1 FY2021 H1 Change

Net sales (million €) 727.2 616.6 -15.2%

Gross profit margin 81.2% 82.1% +0.9 pp

Operating profit margin 5.7% 5.3% -0.4 pp

Net profit margin 3.5% 2.8% -0.7 pp

Net debt (million €) (905.4) (698.7) -22.8%

Free cash flow (million €) 79.2 107.6 +35.9%

H1 net sales breakdown

By GeographyBy Brand

* Others include Melvita, Erborian and L'Occitane au Brésil.

*

4

By Segment

L'Occitane

en

Provence

75.0%

ELEMIS

10.5%

LimeLife

8.8%

Others

5.7%

USA

18.5%

China

15.8%

Japan

14.3%UK

10.6%

France

6.1%

Hong Kong

5.2%

Taiwan

2.9%

Russia

2.8%

Brazil

1.8%

Others

22.0%

Sell-out

71.9%

Sell-in

28.1%

-50

50

150

250

350

450

550

650

L'Occitane en

Provence

ELEMIS LimeLife Others FX rates

million €

H1 FY2020

H1 FY2021

-85%

overall sales growth: -15.2%local currency growth: -13.1%

currencies: -2.1%

Contribution

to growth (3) :-19% -11%

-15%

-22%

-22%

overall sales growth: -15.2%

+35%

15%

(2)

5

(1) ELEMIS’ comparable sales growth FY2021 H1 was -11.1%.

(2) Others include Melvita, Erborian and L'Occitane au Brésil.

(3) Excluding the impact of foreign currency translation effects.

H1 net sales by brand

(1)

6

(1) Excluding foreign currency translation effects.

H1 sales growth by geography – Americas and Europe(at constant rates)

0

50

100

150

200

France UK USA Brazil Russia

H1 FY2020 H1 FY2021

-12% -12% -19% -12%

-23%

-13%

-3%

-42%-11%

Contribution

to growth (1) :

-14%

million €

7

H1 sales growth by geography – Asia and others(at constant rates)

(1) Excluding foreign currency translation effects.

-50

0

50

100

150

200

250

Japan Hong Kong China Taiwan Other

geographic

areas

FX rates

H1 FY2020 H1 FY2021

-20% -26% 25% 2% -25%

-17%

-43%

+31%

+15%

-15%

Contribution

to growth (1) :

million €

% of net sales

FY2020 H1 FY2021 H1 Change

Gross profit margin 81.2 82.1 0.9

Distribution expenses (50.4) (50.3) 0.1

Marketing expenses (12.7) (14.4) (1.7)

Research & development expenses (1.4) (1.3) 0.1

General & administrative expenses (10.9) (11.2) (0.3)

Others 0.0 0.4 0.4

Operating profit margin 5.7 5.3 (0.4)

Profitability analysis

8

Gross margin (as % of net sales)

9

81.2%

-0.4-0.4 -0.3 -0.2 +0.2

+0.3+1.7

82.1%

FY2020 H1 production obsolescence Freight &

Duties

FX pricing

&

other

brand

country

product

mixes

channel

mix

FY2021 H1

Distribution expenses (as % of net sales)

10

(50.4%)

-11.7-1.2 +0.3

+2.8+3.0

+6.9

(50.3%)

FY2020 H1

Leverage &

efficiency one-off

FX

reclass

COVID

subsidies

COVID

savings

channel

brand

mix FY2021 H1

Marketing expenses (as % of net sales)

11

(12.7%)

-0.9-0.8

-0.4 -0.2 -0.7 +0.8+0.5

(14.4%)

FY2020 H1

channel

mix leverage

promo

tools,

samples other

advert &

events

China

advert &

events

other

countries

brand

mix FY2021 H1

General and administrative expenses (as % of net sales)

12

(10.9%)

-1.9-0.4

-0.4-0.2

+0.8

+1.8

(11.2%)

FY2020 H1 leverage

phasing

others

invest IT

staffing office one-offs

Covid

mgmt FY2021 H1

Operating profit margin (as % of net sales)

13

5.7%

+8.0

+7.6

+0.4 -0.3 -0.5-0.5

-15.1

5.3%

FY2020 H1 Channel

mix

Covid

Mgmt

brand

mix

Marketing One-off

others

Other

investments

leverage

& efficiency

FY2021 H1

20.2 19.7

2.2

-9.2

32.9

4.4%30.5%

4.1%

-26.2%

5.3%

-10

-5

0

5

10

15

20

25

30

35

40

L'Occitane

en Provence

ELEMIS LimeLife other

brands

Total

operating profit OP %million €

Operating profit by brand

14

15

Working capital ratios

Inventory turnover days

286

+84 +8 -13 -19

346

FY2020 H1 finished

goods,

MPPs

raw

materials

provision FX FY2021 H1

as at: FY2020 H1 FY2021 H1 Change

Inventory turnover days (based on cost of sales) 286 346 60

Trade receivables turnover days (based on net sales) 38 41 3

Trade payables turnover days (based on cost of sales) 200 248 48

Cash Cycle (days of net sales) 54 58 4

16

Capital expenditures

17.8

8.8

12.0

0.0

38.7

3.05.8

2.00.1

10.8

stores Info.

Tech.

factories

R&D

others Total

million €

FY2020 H1 FY2021 H1

Strategic review &

Outlook

Iconic position in key categories underpinned resilience

- COVID-19 opened a window of

opportunity to showcase the

brand’s expertise

- Timely communication angles

helped support resilient sales

performance TW IG: Hand washing video

SG MY: eDMs on

hand care tips

KR: Kakao message on Art of Soap

AU IG: Inviting

consumers to use

our sinks

TW website: Eye treatment for days of wearing masks

18

Online and omni-channel the star of the show

*Online channels include e-commerce, marketplaces, web partners and digital direct selling.

Global:

+80.8%

Mix: 40.7%

US:

+46.2%

Mix: 81.1%

Brazil:

+264.4%

Mix: 34.9%

UK:

+114.6%

Mix: 57.0%

France:

+79.0%

Mix: 17.6%

Russia:

+232.1%

Mix: 27.5%

China:

+83.5%

Mix: 32.3%

HK:

+245.4%

Mix: 1.5%

Japan:

+91.1%

Mix: 35.6%

Taiwan:

+94.8%

Mix: 6.9%

19

Accelerating social selling initiatives

Livestreaming

Utilising top KOLs in

China to increase

reach and awareness

Clienteling

US beauty advisors

communicated with

customers via SMS and

social media;

10% of US retail sales

Click-and-Collect

Customers across

Europe can order

online for

pick-up in store

Chat & Shop

Omni-channel personal

shopper platform in

Korea riding on

Kakao Talk

20

ELEMIS x Sephora China Launch

• Launched in July with 125 doors, and

broke into top 10 exclusive skincare

brands in Sephora in our first month of

sales

• 360° launch campaign, with celebrity

endorser Angela Wang, generated

200M+ impressions

• 20% of our customers are new to

Sephora, representing broad appeal

beyond Sephora’s core demographic

• Building off our launch momentum to

accelerate our expansion with plans for

a full rollout to Sephora’s entire

network by FY2021 Q4

21

Territory Launch

Austria LIVE

Belgium LIVE

France LIVE

Germany LIVE

Italy LIVE

Netherlands LIVE

Poland LIVE

Spain LIVE

Hong Kong LIVE

Korea LIVE

Malaysia LIVE

Singapore LIVE

Taiwan LIVE

Thailand LIVE

Australia Upcoming

Japan Upcoming

Switzerland Upcoming

22

Swift rollout of e-commerce sites globally

Multi-brand strategy forges

new growth and profit engines

- Improved significantly in FY21 Q2

- Restructuring underway to focus on profitability

- Strong country prioritisation: Japan, France and China

- Strong performance, particularly in FY21 Q2 with close to 30% growth

- Remains profitable

- Improved significantly in FY21 Q2

- Restructuring underway, refined strategy to aim at improving profitability

- Closed 39 underperforming kiosks in FY21 H1

- Achieved 35% growth in FY21 H1

- Turned profitable with 4.1% operating profit margin

- Performed in line with expectations despite near halt to spa and maritime channels

- Digital channels remained in high growth

- Record high operating margin of 30.5%

23

3 sustainability priorities

Maximize our POSITIVE IMPACT on

the society and the environment

beyond profit and customers/employees/suppliers satisfaction

Mitigate

THE CLIMATE CRISIS

and anticipate its

consequences

on our business

Preserve and restore

BIODIVERSITY

within and outside of our

value chains

Empower ALL PEOPLE

in our communities,

with a focus on

women empowerment

24

25

Outlook

Accelerate Transformation Holiday Season Growth & Profitability

- Began restructuring

process to accelerate

transformation, and to

become more efficient and

flexible

- Actively addressing loss

areas – emerging brands,

likely acceleration to US

store rationalisation

- Monitoring the latest wave of

COVID-19 in various

markets around the world

- Focused on delivering strong

holiday season

- Although COVID-19 may

impact consumer sentiment

for some time, the Group

will continue to build trust,

achieve sustainable

growth and enhance

profitability

The Group remains confident of its resilience backed by

the inherent strength of its brands, products and web-based activities,

to emerge from the crisis even stronger

26

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.

Disclaimer