ANNUAL REPORT 2013 - RSPO - Roundtable on a nnual r epO rt 2013. 4 Markets CIS Baltics Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova,

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Text of ANNUAL REPORT 2013 - RSPO - Roundtable on a nnual r epO rt 2013. 4 Markets CIS Baltics Armenia,...

  • ANNUA LR E PO RT

    2 0 13

  • 1

    Company overview 2

    Markets 4

    Financial overview 6

    8

    10

    12

    15

    20

    28

    29

    32

    46

    49

    7, 50-51

    52-53

    The share capital and development

    Top 10 shareholders

    Ownership structure

    54-64

    Corporate Governance Report 58

    Report on Internal Control and Monitoring 63

    65

    66-70

    Consolidated income statements 66

    Consolidated statements of comprehensive income 67

    Consolidated statements of changes in equity 69

    70

    71-91

    Note 1: Status and principal activity 71

    Note 3: Segment reporting 75

    Note 4: Other income 76

    Note 6: Auditors remuneration 76

    Note 7: Research and Development 76

    Note 8: Depreciation and Amortisation 77

    Note 11: Earnings per share 77

    Note 12: Property, plant and equipment 78

    Note 13: Intangible assets 79

    Note 14: Investment property 80

    Note 16: Inventories 81

    Note 17: Trade and other receivables 81

    Note 18: Cash and cash equivalents net of bank overdrafts 81

    Note 19: Share capital 82

    Note 20: Reserves 82

    Note 21: Interest-bearing loans 82

    Note 22: Trade and other payables 83

    Note 23: Equity compensation plans 83

    Note 24: Related parties 83

    Note 25: Group companies 84

    Note 26: Provisions, commitments and contingent liabilities 85

    Note 27: Pensions 85

    Note 29: Restructuring 91

    Note 32: Fire case in India 91

    Note 33: Events subsequent to the reporting date 91

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    Quick guide

    O R I F l A M E A N N u A l R E P O R T 2 0 1 3

  • 2

    Company overview

    The combination of an attractive beauty offering, an easily accessible business opportunity and an

    MarkeT enTries

    1994

    Bulgaria

    1995

    PeruLithuaniaromania

    1996

    MacedoniaecuadorCroatiaindia

    1997

    estoniaMoroccoegyptsloveniasri Lanka

    1998

    azerbaijanColombiaBosnia

    2000

    kazakhstanThailandGeorgia

    2001

    serbia &Montenegro

    2002

    Mongolia

    2003

    armeniaMoldovaVietnam

    2005

    Belarus

    2006

    China

    2008

    Pakistankyrgyzstan

    2011

    algeria

    2012

    kenyaUganda Tanzania

    2013

    Tunisia nigeria Myanmar

    1993

    UkraineslovakiaGreece

    1989

    Chile

    1990

    Czechoslovakia

    1991

    PolandHungaryMexico

    1992

    russiaTurkeyLatvia

    1967

    swedenDenmark

    1968

    Finland

    1969

    norway

    1970

    Uk

    1972

    netherlands

    1978

    spain

    1985

    Portugal

    1986

    indonesia

    BUsiness MoDeL

    Through its unique business concept Make Money Today and

    opportunity for people who want to start making money the day

    extensive portfolio of beauty products, creating combined

    attractive cosmetics through products inspired by the natural

    of stores, they decided to move the retail operations into the

    remained true to its original concept of beauty products inspired

    ProDUCT oFFerinG

    of skincare and cosmetics expertise combining innovation and

    of high-quality products for everyday use at affordable prices, following the main principles for its product offering:

    Cosmetics, Fragrance, Personal & Hair Care, accessories and

    VisionTo be the no 1 Beauty Company selling Direct

    Mission

  • 3

    Strategic cornerstones

    O r i f l a m e a n n u a l r e p O r t 2 0 1 3

  • 4

    Markets

    CIS & Baltics Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, Russia, Ukraine

    EMEA Algeria, Bosnia, Bulgaria, Croatia, Czech Rep., Egypt, Finland, Greece, Holland, Hungary, Kenya, Morocco, Macedonia, Montenegro, Nigeria, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Tanzania, Tunisia, Turkey, Uganda

    Sales

    CIS & Baltics 51%

    Regional sales 2013

    Active consultants

    CIS & Baltics 49% (59)

    Active consultants 2013

    CIS & Baltics 54% (64)

    Regional operating profit 2013

    Sales

    Regional sales 2013

    EMEA 28% (28)

    Active consultants

    Active consultants 2013

    EMEA 24% (23)

    Regional operating profit 2013

    EMEA 29% (27)

    2013 DEVELOPMENT IN BRIEF

    Unsatisfactory development impacted by weak demand for cosmetics in some of the core markets, primarily Ukraine. Revised Success Plan introduced during the spring.

    2013 DEVELOPMENT IN BRIEF

    Overall development impacted by weak consumer markets in Southern and Central Europe. Administrative and supply chain

    some of the core activities were decentralised to better respond to local market needs.

    OPERATIONS PRODUCTIONMoscow, Russia Global factory supplying all regions Lipsticks, LipglossesNoginsk, Russia Currently under construction

    GROUP DISTRIBUTION CENTRESKiev, Ukraine Serving the Ukrainian marketNoginsk, Russia Serving primarily the Russian market

    OFFICES

    CATALOGUE PRINTINGRussia and CIS markets printed in Ukraine

    OPERATIONS PRODUCTION Warsaw, Poland Global factory supplying all regions. Skin Care, Body care/toiletries, Colour Cosmetics (colour emulsions)Eker, Sweden Global factory supplying all regions. Toiletries, Fragrances

    GROUP DISTRIBUTION CENTRESWarsaw, Poland Serving nine markets, Budapest, Hungary Serving eleven markets

    OFFICES

    CATALOGUE PRINTINGTurkey and the majority of the African markets are printed locally in each market. All other EMEA markets printed in Poland

  • MarketsSales Sales

    Regional sales 2013

    Asia 13% (10)

    Regional sales 2013

    Latin America 6% (6)

    Active consultants Active consultants

    Active consultants 2013

    Asia 13% (13)

    Active consultants 2013

    Latin America 6% (4)

    Regional operating profit 2013

    Asia 7% (5)

    Regional operating profit 2013

    Latin America 8% (2)

    Sales

    CIS & Baltics 51% (56)

    Regional sales 2013

    Latin America 8% (6)Asia 13% (10)

    EMEA 28% (28)

    Active consultants

    CIS & Baltics 49% (59)

    Active consultants 2013

    Latin America 6% (4)

    Asia 18% (13)

    EMEA 27% (24)

    CIS & Baltics 54% (64)

    Regional operating profit 2013

    Asia 7% (5) Latin America 8% (2)

    EMEA 31% (29)

    Asia China, India, Indonesia, Myanmar, Pakistan, Sri Lanka, Thailand, Vietnam

    OPERATIONSPRODUCTIONNoida, India Skin Care, Body care/ toiletries, Colour CosmeticsKunshan and Beijing, China Skin Care, Body care/toiletries, Colour Cosmetics,

    OFFICES

    Delhi, India

    CATALOGUE PRINTINGPrinted locally in each market

    Latin America Chile, Colombia, Ecuador, Mexico, Peru

    OPERATIONSPRODUCTION

    plus one under construction

    GROUP DISTRIBUTION CENTRESFour Group Distribution Centres in four countries

    OFFICES

    Fribourg, Switzerland and in Luxembourg

    Ireland, New Dehli, India, Prague, Czech Republic, Stockholm, Sweden,

    OPERATIONSOFFICES

    CATALOGUE PRINTINGProduced and printed in Chile for all Latin American markets

    Group

    operated by franchisees

    2013 DEVELOPMENT IN BRIEF

    Strong sales development and operating margin held up despite strong currency headwind.

    2013 DEVELOPMENT IN BRIEF

    A year of mixed development in the different regions continued challenges in many parts of CIS and Europe while strong development in Asia, Latin America, Africa and Turkey. Several initiatives carried out delivering underlying margin improvement however overshadowed by strong currency headwind.

    2013 DEVELOPMENT IN BRIEF

    Strong sales development driven by increase in active consultants and solid operating margin improvement from cost control and leverage on overheads.

  • 6

    Financial overview

    Long-term financiaL targets

    Colour Cosmetics 24% (24)

    Sales by product category 2013

    Accessories10% (9)

    Wellness5% (5)

    Personal & Hair Care 20% (20)

    Skin Care 21% (22)

    Fragrances 20% (20)

    CIS & Baltics 51% (54)

    Regional sales 2013

    Latin America 8% (7)Asia 13% (11)

    EMEA 28% (28)

    CIS & Baltics 54% (62)

    Regional operating profit 2013

    Asia 7% (5)Latin America 8% (4)

    EMEA 31% (29)

    CIS & Baltics 49% (51)

    Latin America 6% (6)

    EMEA 27% (28)

    Sales force 2013

    Asia 18% (15)

  • the share

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    coLour cosmetics

  • 8

    O r i f l a m e a n n u a l r e p O r t