la biosthetique latam

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2

Agenda

Company History 1

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3

Brand Assets

Business Opportunity

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4 The Team

5 Deal

Company revenues (millions)

€ 250

For over 40 years it focused on building reputation rather than sales

Founded in 1947 by the discoveries of physiological connections between hair and skin by biochemist Marcel Contier

Sales has grown for 33 years in a row

Company History - 65 years of continuous success (1/3)

With great products and outstanding service to Salons sales boosted.

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Canada France Germany Austria Benelux Denmark England Greece Italy Spain Switzerland Turkey

Belarus Bosnia Bulgaria Croatia Kazakhstan Lithuania Poland Romania Russia Serbia Slovenia Ukraine

Hong Kong Malaysia Singapore Taiwan Australia New Zealand

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Now available in Colombia to take over LATAM

Company History - 29 countries (2/3) 1

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Company History - 8,000 salons (3/3) 1

Agenda

Company History 1

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3

Brand Assets

Business Opportunity

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4 The Team

5 Deal

Brand Assets – A unique set

Strong concept � Superior

product �

Better � Salon�proposition�

Premium� experience�

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Strong Concept: “Un cabello sano solo puede nacer de un cuero cabelludo sano.”

Mismos síntomas tienen diagnósticos diferentes

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La falta de brillo, suavidad, la caída del cabello, la caspa, o cabellos encrespados son solo síntomas, y un mismo síntoma puede tener orígenes muy disimiles.

Por medio del entendimiento profundo del cuero cabelludo y el cabello mejoramos la estructura capilar y los resultados no solo se sienten y se ven de forma inmediata, sino que el tratamiento también actúa en profundidad contra las causas del problema. Los principios activadores capilares y biomiméticos específicos para el cabello y el cuero cabelludo contenidos en los shampoos de LA BIOSTHETIQUE mejoran la calidad capilar ya desde el lavado y ejercen una influencia positiva sobre el cuero cabelludo. A diferencia de los demás productos que son fuertes en surfactantes, La Biosthetique es de origen natural, donde tensioactivos de azúcar de origen vegetal limpian de forma suave y en profundidad, respetando el manto protector del cuero cabelludo.

Strong concept: French beauty heritage with work-class German development

Every day the eyes of the international fashion community fall on this beautiful place - the Place Charles de Gaulle in the heart of Paris. Trends are born here and top designers reside here.�

Headquarter Paris, Place de l’Etoile

They apply the latest scientific findings and the highest quality standards to produce the best possible formulas

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State of the Art laboratory

LA BIOSTHETIQUE products are

developed by dedicated scientists in advanced modern laboratories in Germany�

Superior product: from head to toe (2/2)

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Scalp & Hair Care�

Skin Care & Body Care�

Skin & Hair Care for Men �

Styling & Finish�

Make up Collection �

Hair Colour�

LA BIOSTHETIQUE Academy Five First-class education and training center for international LA BIOSTHETIQUE Hairdressers in the heart of Paris, Madrid, Vienna, Verona and Pforzheim

5 international Academies 65 training modules, including “Salon Management” 60 full time international trainers 150 professional independent trainers and freelancers

Better salon proposition: unprecedented support to hairdressers (1/3)

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La Biosthetique exclusivity only for Salons accounts as one of its most appealing propositions to the channel

Better salon proposition: true exclusivity to Salons (2/3)

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La Biosthetique Availability outside the Salon ebay sample: 15 listings

Kérastase Availability outside the Salon ebay sample: 1,710 listings

1 Based on German hairdresser market, the brand commands superior business results. The following figures are approximate, as some provide from surveys. •  average figure of the German hairdressing market ** average figure of a survey at La Biosthetique hairdressers

Salon performance results with and without La Biosthetique

Better salon proposition: superior business results to the Salon1 (3/3)

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Average Market Salon*

La Biosthetique Salon**

La Biosthetique Salon

Average Market Salon

€53.00

€36.00

Service turnover per female client

La Biosthetique Salon

Average Market Salon

3.3

2.1

Services per visit of a female client

La Biosthetique Salon

Average Market Salon €3.00

€11.00

Retail turnover per client (both sex)

La Biosthetique Salon

Average Market Salon €170

€284

Service turnover per day and employee

La Biosthetique Salon

Average Market Salon €15.00

€58.00

Retail turnover per day and employee

European typical salon: •  100sq mts •  5 employees •  $30k-$40k monthly revenues •  ~$7,500 La Biosthetique sales

The Beauty Ritual® conducted in Salons help to command a superior product experience with the consumer, developing a bond with the brand that result in strong advocacy

Premium experience: spa like treatment for the client

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Agenda

Company History 1

2

3

Brand Assets

Business Opportunity

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4 The Team

5 Deal

1 Total Hair & Nail Salons revenue in 2011 was $46b, were salon revenues is estimated at 20%. 2 Based on team analysis from L’Oreal sales and market share on the Salon channel 3 Based on EuroMonitor 4 Christian Bardin, president of cosmetics consultancy CBA Associates

White space market in Americas Total Beauty and Personal Care sales in Salons

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Business opportunity - no brand presence in Americas (1/5) 3

Market by 2014 $80.3B4

Total Beauty Market $54B3

Market by 2014 $62.3B4

Total Beauty Market $59B3

•  Year II •  Revenues: $5.4M

Early Expansion •  Year III

•  Revenues: $13.8M

Follow on •  Year IV •  Revenues: $21.8M

Potential Entry on US

Colombia 2013

Miami & FL 2014

Central America Countries

US Market: Besides FL exclusivity distribution agreement, we have the right to distribute across US, with continental exclusivity based upon performance

•  Year I

Pilot Countries

Business opportunity - Four steps to our expansion plan

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Argentina Distribution exclusivity agreement based upon performance

Continental US

Chicago, IL

Los Angeles, CA

New York, NY

San Francisco, CA

Mexico Caribbean Countries

Venezuela

Peru Ecuador

Chile

Brazil

Assumptions

▪ Gross Margin: ~62%

▪ Shelf price slightly below Kerastase

▪ Market Share: 10% in year 7 of top Salons

▪ Salon gross margin: above competitors at 40%-45%

▪ Marketing investment: 15% - 10% of gross sales

▪ U$ to EUR E/R: 1.30

▪ Salons per Sales Rep: 30

▪ Average sales per Salon: $2,200 for first year

▪  Investments: working capital, Academy, flagship salons, marketing, SG&A

La Biosthetique represents a +$40 million revenue business

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Cash Flow from Operations (millions USD)

Operating Profits (millions USD)

Financial Breakdown (year 5) Revenues (millions USD)

Expect at least a 5x terminal value on top (~1.3x revenues)

0  

5  

10  

15  

20  

25  

30  

35  

40  

45  

1   2   3   4   5   6   7  

Other  LATAM  

Caribbean  

Chile  

Colombia  

Venezuela  Peru  Ecuador  

Florida  

Mexico  

 (0)    (0)    1    

 3      5    

 6      7    

13.6%  

16.4%   17.9%  

-­‐25%  

-­‐20%  

-­‐15%  

-­‐10%  

-­‐5%  

0%  

5%  

10%  

15%  

20%  

 (2)  

 -­‐        

 2    

 4    

 6    

 8    

 10    

 12    

1   2   3   4   5   6   7  

OperaLng  Profit  

Profit  aOer  tax  

Profit  aOer  tax  to  Revenues  

 (3.0)  

 (2.0)  

 (1.0)  

 -­‐        

 1.0    

 2.0    

 3.0    

 4.0    

 5.0    

 6.0    

 7.0    

 8.0    

1   2   3   4   5   6   7  

Net  Cash  Flow  

Expected  Piad  out  Dividend  

100%  

38%  

5%  12%  

3%  15%  

27%  

Our Vision��

“Become the consumer and hair dresser brand of choice at the Salon, making La Biosthetique a $100 million distribution business in Americas in five years” �

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Agenda

Company History 1

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3

Brand Assets

Business Opportunity

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4 The Team

5 Deal

The team - Founded by highly experienced CPG executives

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Raul Lamus ▪  Highly seasoned finance expert, investor, and entrepreneur. Raul worked for over 18

years at Procter & Gamble as Argentina CFO and Fabric Care Finance Director, overseeing a $1.5B operation. He complemented his skills with tax and treasury experience at Kraft LATAM. As member of New World Angels, he is an active investor and entrepreneur, with a profound passion and experience on the CPG business.

Gustavo Souss ▪  Expert in marketing, retail and strategy with strong ties to the fashion industry. He worked

for over eight years at Procter & Gamble, managing a $300 million dollar business in Beauty Care Mexico. After completing his MBA from Harvard Business School he mastered his strategic thinking working two years at McKinsey & Co. Born and raised on the heart of the fashion and textile industry through his family background, he remains strongly connected and advises some top designers on business matters.

Carlos Eduardo Orozco ▪  Seasoned manager, expert in Salon channel, Beauty products, strategy and

organizational behaviors, highly knowledgeable of north Latinamerica countries. Carlos has over 28 years of work experience as Henkel Regional President North LATAM and an independent strategic and organizational consultant. Mr. Orozco has grown Schwarzkopf division to become the second largest player in the Salon channel behind L’Oreal. He has completed several Advanced Management Education programs at Harvard, INSEAD, UCLA and Thunderbird and is an active member at WPO.

Agenda

Company History 1

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3

Brand Assets

Business Opportunity

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4 The Team

5 Deal

We are set to succeed Superior product, brand and proven success in 28 countries and counting

Large cash generation with 30% gross profit

Above competition trade margin and superior service into an underserved channel

Marketing efforts highly productive, well targeted at the point of sale

Lean organization, low distribution cost, better execution

Salon channel seeking out alternatives to L’Oreal 24

Back up slides�

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Agenda

Colombia Early Results 6

7 Products Line up

8 LATAM Opportunity

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9 Flagship Salons samples

10 Competition Overview

Agenda

Colombia Early Results 6

7 Products Line up

8 LATAM Opportunity

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9 Flagship Salons samples

10 Competition Overview

Colombia – Early Results ¤  Top team assembled

¤  Team of six high talented and passionate individual. General Manager with 15 years of CPG experience in addition to Commercial Director, Sales Coordinator and Technical and Educational expert from L’Oreal

¤  Strong rump up of sales ¤  With start of sales on January, we count with already 10 salons up and running,

adding about 5 salons per month for a monthly sales rate at $50k by June 2013 ¤  Make up to be tested as of April, representing a white space with no players supplying

salons, representing a $50k to $100k sales/month

¤  High end positioning & Image ¤  Launch event with top 22 VIP salons in Colombia introduced to the brand ¤  Celebrities presence and PR coverage ¤  Top end merchandising and visuals to decorate Salons ¤  Click here for Brand Introduction and Event videos

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Large PR Coverage

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Mauricio Leal

Alvaro Pedrazza

Kariu Peluqueria

Mapi Peluqueria Jose Botero

Outstanding salon visibility

Colombia – Facebook fun page

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Paris Hilton using La

Biosthetique

Key marketing plan elements

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3.  BUYING •  First month purchase order

incentive thru free training •  Salon incentives to offer the

product •  Launch promotion of free

make up products

7.  REPURCHASE •  Stylist Award Contest •  Web page and online social

media services •  Additional training and services

8.  ADVOCACY •  Attend global academy •  Paris trade show trip •  New products launch •  Webpage with exclusive access

to events and promotions

2.  BROWSING •  Display prominently in top salons •  Academy training for hairdressers •  La Biosthetique quarterly magazine •  Large visuals on Salons •  La Biosthetique merchandising and

brochure materials

1.  AWARENESS •  Sales Reps Salon Visits •  Launch event •  Newsletter, FB fun page, Social media •  Press Release and Beauty Editors

Association

5.  USAGE •  Beauty Ritual & Scalp diagnostic •  In Salon back-bar differentiated services

6.  REMEMBERING •  Subscription letter •  Share your experience with

the world

Agenda

Colombia Early Results 6

7 Products Line up

8 LATAM Opportunity

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9 Flagship Salons samples

10 Competition Overview

Products line up: Hair Care (1/6) 7

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Scalp & Hair Care�

Dermosthetique � Natural Cosmetic� Edition de Luxe� Cheveux Longs� Structure �

Stabilizante� Regenerante� Pellicules� Soleil � Normalisante �

Methode Vitalisante �

Sensitive�

Products line up: Skin Care (2/6)

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Skin Care & Body Care�

Dermosthetique � Natural Cosmetic� Belesthetique� Methode Essentiale �

Methode Relaxante� Methode Clarifiante � Perfection Visage� Perfection Corps� Methode Soleil �

Methode Antiage�

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Products line up: Styling (3/6)

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Styling & Finish�

Formula Laque � Crème Texture� Crème Reparatrice� Cabellos Finos �

Brillo y Acabado � Toque Final �Forma� Control � Control y Cuerpo �

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Products line up: Men Grooming (4/6)

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Skin & Hair Care for Men�

Le Gel Douche� Le Deodarant Spray�

Le Tonique Energie� Le Styling Gel �

Le Baume Apres Rasage�

Le Crème Energie�

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Products line up: Make up (5/6)

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Make up Collection �

Ombre à paupières� Poudre crème

ombre à paupières �

Eye Performer� Le Rouge� Vernis à

ongles �Mascara Collection�

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Products line up: Hair Colour (6/6)

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Hair Colour�

Tint & Tone - Permanent � Color & Light - Highlifting �

Shine & Tone - Temporary� Glam Color - Temporary�

Shampoo, Conditioner, Scalp Protect, Remover, Thickener - Supplement �

Tint & Tone- Semi Permanent �

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Initial Product Line 2012 Introduction

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Cuidado del Cabello: Protección Color �Shampoo y Acondicionador�

2012 Introduction

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Cuidado del Cabello: Suavidad y Brillo �Shampoo, Acondicionador, Mascarilla, Scalp�

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2012 Introduction

Cuidado del Cabello: Reparación �Shampoo, Acondicionador, Texturizante, Spray Regenerante, Mascarilla �

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2012 Introduction

Cuidado del Cabello: Anti-frizz �Shampoo, Acondicionador, Serum�

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2012 Introduction

Cuidado del Cabello: Línea Scalp Graso, Caído, Caspa�Shampoo, Ampolletas, Scalp�

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2012 Introduction

Styling y Acabado:�Cera Crema Mate – Brillante – Mousse - Laca��

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2012 Introduction

2012 Introduction

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Coloración del Cabello �Color Permanente & Demi-Permanente en 1 mismo tubo �Oxidantes 10, 20, 30 y 40 Vol – Decolorante 7 tonos extra rápido �

Agenda

Colombia Early Results 6

7 Products Line up

8 LATAM Opportunity

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9 Flagship Salons samples

10 Competition Overview

49 Source: World data Bank – GDP Growth 2007-2011

LATAM opportunity: outgrowing developed countries (1/4) 8

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GDP growth rate (CAGR 2001 – 2011) GDP per Capita (USD)

Population by Country (millions 2011)

Total LATAM: $5.7B Brazil represents 44%

GDP by Country (billions USD)

0.0 0.5 1.0 1.5 2.0 2.5

Brazil

Mexico

Argentina

Colombia

Venezuela

Chile

Peru

Ecuador

0 50 100 150 200

Brazil

Mexico

Argentina

Colombia

Venezuela

Chile

Peru

Ecuador

- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Brazil

Mexico

Argentina

Colombia

Venezuela

Chile

Peru

Ecuador

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Brazil

Mexico

Argentina

Colombia

Venezuela

Chile

Peru

Ecuador

Total LATAM: 3.7% World: 2.6% Euro Area: 1.1% North America: 1.6%

Source: World data Bank and Cepal Stats

LATAM opportunity: strong macro-economic perspective (2/4) 8

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11.3

8.5 7.4

15.8 13.8

11.5

0 2 4 6 8

10 12 14 16 18

Hair Care Fragrances Skin Care

2010 2014

Latin America Beauty Care Market Forecast USD Billions

1 HBA Global Expo 2010

"The Latin American market for beauty and personal care products, lead by Brazil, already nearly matches the US market and has huge growth potential," Christian Bardin, president of cosmetics consultancy CBA Associates

LATAM opportunity: High growth in Beauty Care Categories (3/4) 8

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300 111

96

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26 12

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50

100

150

200

250

300

Brazil Hair Care Salon Market Size 2010 Euro, millions

Salon 7%

Hair Care Mass

Market 93%

Brazil Salon vs. Mass Market 2010, %

50%

20%

50%

80%

US Brazil

Salon Products Retail Products

Salon sales against retail sales 2010, %

Opportunity on retail sales based on: •  High price of products vs. mass

market; •  Lack of training and qualifications

of hairdressers to sale •  Inadequate portfolio; •  Poor visibility of retail products at

the Salon

400,000 Total Brazil Salons

120,000 Professional Salons

800 Kerastase Salons

650 La Biosthetique

Targets

Source; GCI based on The Latin America Klein Group - E/R: Euro to R$ 2.33 for 2010

LATAM opportunity: Salon is an underdeveloped channel (4/4) 8

Agenda

Colombia Early Results 6

7 Products Line up

8 LATAM Opportunity

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9 Flagship Salons samples

10 Competition Overview

La Biosthetique Ossig, Vienna

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La Biosthetique Le Salon, Amsterdam and Munich

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La Biosthetique Sergio, Berlin

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La Biosthetique Salon White, Madrid

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La Biosthetique Ruth Nowark, Bocholt

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La Biosthetique Goerner & Cuber, Berlin

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La Biosthetique Steinhoff, Reutlingen

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La Biosthetique Frank Koster, Hamburg

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La Biosthetique Ossig Salon, Vienna

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La Biosthetique Lehamann & Hauser, Stuttgart

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La Biosthetique Haare&Mehr, Unterhaching

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La Biosthetique Coiffure Beaute, Paris

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La Biosthetique Wolf’s City SPA, Mannheim

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La Biosthetique H&B, Australia

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La Biosthetique Josef, Switzerland

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La Biosthetique Dinter, Karlsruhe

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Agenda

Colombia Early Results 6

7 Products Line up

8 LATAM Opportunity

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9 Flagship Salons samples

10 Competition Overview

Exclusivity Total Beauty Premium line Academy Flagship Salons Margin & Service Available only in Salons through expert advice

Hair, Color, Styling, Skin, Make up and Men

Top tier price through superior product performance

World-class experts deliver the highest training caliber

Posses premium Spa like spaces

High margin, long term relationships and valuable services

High Medium Low

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Competition Overview 10

Exclusivity Total Beauty Premium line Academy Flagship Salons Margin & Service Available only in Salons through expert advice

Hair, Color, Styling, Skin, Make up and Men

Top tier price through superior product performance

World-class experts deliver the highest training caliber

Posses premium Spa like spaces

High margin, long term relationships and valuable services

High Medium Low

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Competition Overview

La Biosthetique company success is based on: Salons as unique channel, a total beauty concept with large range of high ticket products, and heavy investment in education through its Academies to drive hairdressers advocacy

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