L’Occitane Announces

L’Occitane Announces FY2017 Interim Results
Net sales grew 1.3% at constant rates and 0.9% at actual rates
Gross profit up by 1.7%, while operating profit was affected by deleveraging

Net profit rose 31.7% to €26.4 million

1. Net sales were €551.7 million, an improvement of 1.3% at constant rates
2. Encouraging growth in emerging countries, as well as in emerging brands and
e-commerce channels, largely offsetting the weakness brought by economic
uncertainties and unfavorable retail conditions
3. Stronger yen boosted overall sales in Japan (+15.9% at actual rates), while fastest
growing markets were Brazil, Russia and China (+20.5%, +10.6% and +5.4% in local
currency terms respectively)
4. E-commerce sales grew 6.8%, equivalent to 10.1% of the Group’s retail sales
5. Emerging brands (Melvita, L’Occitane au Brésil, Erborian) contributed more to overall
growth. Renovations and selective opening of stores strengthened the reach and
positioning of core brand, L’Occitane en Provence, within the global beauty market
6. Continued long-term investment in brand positioning, quality expansion, digital
marketing, product development and CRM for all brands
7. Gross profit margin rose to 82.2%, while operating profit was impacted by
deleveraging
8. Net profit rose 31.7% to €26.4 million
9. Net cash increased by 31.6% to €257.3 million
FINANCIAL HIGHLIGHTS
For the six months ended 30 September
(in million €, unless otherwise stated) 2016 2015 Change
Net sales 551.7 546.7 +0.9%
Gross profit 453.4 445.9 +1.7%
Gross margin 82.2% 81.6% +0.6 pp
Operating profit 19.4 31.7 -38.8%
Operating margin 3.5% 5.8% -2.3 pp
Profit for the period 26.4 20.1 +31.7%
Net profit margin 4.8% 3.7% +1.1 pp
Basic EPS (€) 0.018 0.013 +38.5%
Return on capital employed (%) 4.5% 3.6% +1.0 pp
Return on equity (ROE) (%) 3.1% 2.6% +0.5 pp
Gearing ratio (%) 7.5% 9.3% -1.8 pp
Net Cash 257.3 195.5 +31.6%

L’Occitane Announces FY2017 Interim Results
29 November 2016, Page 2
(29 November 2016, Hong Kong) L’Occitane International S.A. (“L’Occitane” or the “Group”;
SEHK stock code: 973), a global, natural ingredient-based cosmetics and well-being products
company with origins and true stories from Provence, France and around the world, today
announces its interim results for the six months ended 30 September 2016 (“the first half of
FY2017”).
The Group recorded net sales of €551.7 million in the first half of FY2017, an improvement of
1.3% at constant rates and 0.9% at actual rates compared to the same period of last year. While
unseasonable weather, terrorism threats, economic uncertainties and toughening retail
conditions in some markets impacted the Group’s performance during the period, the higher
constant growth rate was a testament to the management’s strategy of selective store openings
and success in developing its brands.
Gross profit rose 1.7% to €453.4 million in the first half of FY2017, which was mainly attributable
to better price mix and more efficient supply chain management. Gross profit margin expanded
by 0.6 points to 82.2% in the first half of FY2017.
The Group recorded an operating profit of €19.4 million for the first half of FY2017, a decline of
38.8%, which was mainly attributable to deleveraging and investments in its emerging brands
and in branding activities. However, net profit rose by 31.7% to €26.4 million, reflecting the
management’s ability to expand sales despite the challenging operating environment, the
absence of a one-off, non-cash foreign currency loss that was recorded during the same period
of last year, as well as a tax credit of €6.5mn recorded in the first half of FY2017.
Sell-out sales accounted for 72.6% of the Group’s total sales in the first half of FY2017,
amounting to €400.5 million, an increase of 0.6% at constant exchange rates. This growth was
primarily driven by new stores and newly renovated stores, as well as the growth and
development of the Group’s e-commerce channels, especially marketplaces. Under its selective
omni-channel expansion strategy, the Group’s global own retail store network grew to a total of
1,495 stores during the period, while its e-commerce presence continued to expand.
Sell-in sales accounted for 27.4% of the Group’s total sales in the first half of FY2017, amounting
to €151.1 million, an increase of 3.2% at constant exchange rates. This growth was driven by the
rapid expansion of wholesale and distribution channels for the Group’s emerging brands –
particularly L’Occitane au Brésil, Melvita and Erborian – in line with its multi-brand strategy.
Japan and Brazil were the largest drivers of growth at actual rates during the first half of FY2017,
registering growth of 15.9% (due to the stronger Japanese Yen) and 15.0% respectively. In local
currencies, growth was driven by Brazil and Russia, with the former registering impressive
overall and same-store sales growth. In China, local currency sales grew by 5.4%, despite strong
competition and severe rainfall in many parts of the country, driven mostly by new store
openings, B2B sales and purchases