DESSANGE INTERNATIONAL N°1 of “Haute Coiffure” in the world 40 countries Over 2 000 salons 42 training centers 20 000 collaborators 1 Billion Euros Brand perimeter DESSANGE INTERNATIONAL: a worldwide group • Two major areas of activity: Hairstyling franchises 27 directly operated salons Products • 3 complementary brands that give the group full coverage in the hairdressing market: A very up-market brand positioned in global beauty. 425 salons in 40 countries. A hairdresser, colorist, make-up artist brand, positioned in the mid-luxury market. 420 salons in 14 countries. Leader hair salon franchisor in the United States in the value segment. 1215 salons in the United States. DESSANGE INTERNATIONAL: Organization chart GENERAL COORDINATOR CHAIRMAN OF THE EXECUTIVE BOARD Marie-Hélène Jaffrès Benjamin Dessange GENERAL MANAGER Emmanuel Gasnot LEGAL DEP MANAGER Deputy General Manager Legal – Finance - IT – HR Deputy General Manager Marketing Strategy – Products – North America Philippe Vincent Marie-Laure Simonin Braun ACCOUTING MANAGER HUMAN RESOURCES MANAGER MEDIA AND COMMUNICATION DIRECTOR PRODUCTS COMMERCIAL DIRECTOR France Belgium Spain Italy Luxembourg Switzerland Catherine Villard Muriel Auffrere Marie-Laure Pineau Sophie Lajouanie Larger Sandrine Leycure d’Agostino FRANCHISE COMMERCIAL DIRECTOR FRANCHISE COMMERCIAL DIRECTOR France Belgium Spain Italy Luxembourg Switzerland Europe (out Europe of 6) Africa Middle East South America Asia Oceania Dom Tom Bruno L’Hénaff Annabel Talon PRODUCTS COMMERCIAL DIRECTOR World (out Europe of 6) MARKETING DIRECTOR FRANCHISE PRODUCTS LICENCE INDUSTRY AND LOGISTICS DIRECTOR FRANCHISE North America Chloé Lamoureux Pony Area account managers : Mylène Mulliez – Betty Olivier Xavière Marlaud Jean-Marie Camares History of the Group 1954: The first Jacques DESSANGE hair salon opens PRODUCTS KEY EVENTS 1975: Launch of the first affiliate franchise 1994: CAMILLE ALBANE, a second franchise network, is created 1962: The first 1979: The first salon outside training school France opens is established 1990: The first Jacques DESSANGE beauty and make-up ranges are created, in partnership with Sanofi 1999: The DESSANGE beauty products unit is established and moves to the Lorient (France) production plant, built in 1997. 1996: The first beauty institute opens 1992: Launch of The Phytodess treatment the "Jacques range is DESSANGE created Compétence Professionnelle" hair care range, manufactured by L'Oréal (under license) 2008: OFI Private Equity Capital purchases 65% 2007: The of the Group DESSANGE commits to a International sustainable Group development approach 2000: Launch of the CAMILLE ALBANE make-up range 2006: Remington and DESSANGE combine their skills to create a range of exceptional hair care appliances sold in specialist retail outlets 2010 : Acquisition of the Belgian Master Franchise 2009: Launch of a DESSANGE Paris signature prestige hair care range, sold exclusively in DESSANGE hair salons 2010 : the HAIR SPA concept is created 2010 : Launch of the DESSANGE hair accessories range manufactured by La Brosse et Dupont (under licence) 2011: Acquisition of the DESSANGE United States Master Franchise 2011: Creation of the distance training tool: DESSANGE Learning Lounge Key Figures of the Group EBITDA by Regions Turnover by Regions France & Others France USA USA Others Turnover by Activities Franchise Products & Licenses Owned Salons 3 pillars of our Success • A pioneering spirit: changes behind the boom in the hairdressing sector: • An unique affiliate franchise system: passing on know-how, values and quality • franchise networks licensing creating a vertical diversification through a global beauty concept replication of the affiliation franchise system abroad through training schools, the Group's cornerstone strong growth with an identical level of service throughout the network A world of Excellence: imparted by training schools on every continent confirmed in 2003 when the Group was granted ISO 9001 certification renewed every year, for its cosmetics development and manufacturing plant in Brittany (France) Top-level professionals: DESSANGE International has been able to hire and retain professionals who all share the same quality standards. rigorous partner selection process policy of developing managers' career plans Our Assets • Strong equity and brands’ positioning • Creativity and innovation • High Research & Development spending • Training centers and distance training tool (e- Learning) • Existence of successful international networks • Brand promotion through development of product lines • Directly operating industrial facilities & commitment to sustainable development DESSANGE Paris Femininity, elegance and seduction , 3 words that define the DESSANGE universe, a “Maison de Luxe” dedicated to woman's beauty. Partner for prestigious events and true icons of the movie industry, the brand pampers each day thousands of woman around the world looking for a unique dimension for their beauty. The expertise that can be found in of its DESSANGE Beauty Salon or Spa is the very essence of its products. Haircare, makeup, skincare and bodycare are offering to each woman the glamour, sensory appeal and the professionalism she searches for. Paris Champs Elysées Flagship International DESSANGE Flagships Yalta - Ukraine Bruxelles - Belgium Vienna - Austria Washington - US Communication & Events Show Prestige DESSANGE PARIS : 2 collections per year DESSANGE Paris – Haircare products DESSANGE PARIS, Leader on the international upscale hairstyling market, DESSANGE puts creation and expertise in its exceptional hair care line. Precious and subtle, these products combine formulas containing high concentrations of noble ingredients such as black pearl and subtle fragrance. These products, true concentrates of substance and shine, transform the hair into a divinely soft and luminous texture. DESSANGE Paris – Haircare products • Upscale positioning • 14 SKUS • Public Price Range : 31€ - 48€ • Benchmark : Shu Uemura Art of Hair Leonor Greyl Carita DESSANGE Paris – Hairstyling products New-generation high-tech active ingredients, innovative textures, sophisticated packaging and a distinctive eye-catching design : the DESSANGE hairstyling line combines technical prowess and top-end positioning to enable all hairstylists to give free rein to their creativity. DESSANGE Paris – Hairstyling products • Upscale positioning • 15 SKUS • Public Price Range : 17€ - 26€ • Benchmark : Shu Uemura Art of Style L’Oréal Texture Expert DESSANGE Paris – Skincare products Constantly attentive to women, the brand has built its beauty expertise upon a true understanding of their needs. As their ally, it has created a pure and elegant line for the face, a line that awakens the senses. Made with a combination of proven active ingredients, textures and refined colours, the DESSANGE care products guarantee daily pleasure. Reactivate, nourish and soothe and enhance, firm and plump up or restructure: the range perfectly meets the needs and desires of all beauty types. DESSANGE Paris – Skincare products • Upscale positioning • 13 SKUS • Public Price Range : 20€ - 146€ • Benchmark : Lancôme Estée Lauder DESSANGE Paris – Make-up products Bright shades, modern colours, sensual textures, professional accessories: DESSANGE make-up products unveil each woman’s unique beauty for radiant complexions, sculpted faces, intense eyes. The upscale range developed by our studio make-up artist draws its inspiration from the brand's hairstyle collections. Thus, cut, colour and make-up come together in harmony - a sign of true elegance. As hair stylist, artist and trend-setter, DESSANGE designs ever-surprising, sophisticated collections that set the tone each season. DESSANGE Paris – Make-up products • Upscale positioning • 120 SKUS • Public Price Range : 15€ - 47€ • Benchmark : Lancôme Estée Lauder PHYTODESS Haircare products PHYTODESS are true beauty treatments for the scalp and hair that combine naturality, luxury and hairstyling expertise to reveal and enhance the beauty of your hair. At the heart of their unique formulas, color clays, essantial oils, plant extracts, trace elements and precious metals or stones work together with teh delicate textures and subtle fragrances to offer your real moments of pleasure. The gentle nature of the formulations makes it possible to combine them at will in order to create tailor-made treatments that will bring the professionalism and expert techniques of your hairstylist into your own home. Hairstyling expertise and the wealth of nature as sources of beauty PHYTODESS Haircare products • Mid-scale positioning • Natural active-ingredients with a sustainable sourcing • 18 SKUS • Public Price Range : 18€ - 49€ • Benchmark : Kerastase Phyto René Furterer DESSANGE DEVELOPMENT MODEL Worldwide Development DESSANGE pursues a worldwide development build on : -Franchise (40 countries) -Products distribution - in our salon networks - through distributors (17 countries) DESSANGE Paris Business Model DESSANGE flaghsip To set the brand equity for the future salon development and to serve as a relay for marketing and P&R events DESSANGE training academy To serve as a key stone for local partners as well as a recruitment center of new managers and or salons (open-school) DESSANGE products distribution To increase the brand awareness To leverage the brand development DESSANGE training Academy DESSANGE training academy 51 rue du Rocher – Paris - FRANCE International DESSANGE Training centers 42 training centers in the world (Paris, Milano, Moscow, Brussels, Washington DC …) DESSANGE E-learning DESSANGE Paris Franchise - Affiliation system An original policy developed from 1975, which became the backbone of our international expansion. 1. A Brand developer : To fully implement the concept of the Brand first with a flagship and after with sub-franchises, whilst taking into consideration the local realities. 2. An image ambassador : To build the image of the Brand on the Territory, so that the harmony, consistency is preserved all over the world (strategy, marketing plan, development). 3. A commitment of using selected products in each salon : To ensure the image, positioning and referencing of relevant references (retail & professional uses) among 2 000 hair care, skincare and make-up references. 4. A businessman paying attention to organization, training, management, marketing, PR. Our commitments Signing a DESSANGE franchise agreement means an access to: Exclusive concept Brand image Upscale salons specifications and designs Innovative marketing Tailor-made training Support in the opening process Product lines reflecting brand identity « Fall Winter » and « Spring Summer » hair and make-up collections Best commercial terms and support from L’Oréal Professionnel L’Oréal Partnership A strong hairstyling partnership & As our privileged and international partner, L'Oreal supports us in all our projects: - Support in leveraging brand awareness Support in our business development Support in retail conditions : best commercial conditions, animation … Support in training Identified contacts : Eric de la Tour : Exclusive Key Account Manager for L’Oreal PPD 2013 Openings & Projects 2013 Openings Middle-East Dammam Morocco Agadir – Sofitel Thalassa Sea & Spa Middle-East Oman Middle-East Djeddah Ukraine Mariupol Hotel Morocco Casablanca Russia Krasnoyarsk 2013 Openings Georgia Tbilissi Turkey Istanbul UAE Dubai Australia Sydney Ukraine Odessa 2013 Key Projects Germany Baden Baden – Cologne Munich - Stuttgart United Kingdom London Brazil Master Franchise Azerbaijan Master Franchise India Franchise - Bombay Vietnam Franchise Japan Master franchise COMMERCIAL APPROACH Entrance Fees This amount varies depending on the business model. It takes into account : The value of the DESSANGE Paris Brand (prestigious Heritage, history, trademarks associated, brand equity & concept, & potential of growth on the Korean market). The right to be the exclusive partner to open hair salons under that brand on your market The type of agreement and related BP (number of DESSANGE salons) The registration costs of the brand on your market that we renew each year Full assistance to define the layout of the flagship salon (opening process) Specifications, design and proposal from blueprints and validation of the project, travel to site during works, assistance with the various opening procedures & decoration Training and follow-up of the flagship opening (2 DESSANGE senior trainers for about 10 days, you only cover the local expenses, hotels & meals). Access to the DESSANGE brand image, collections, communication, marketing, training and products. Annual Fees It equals a percentage of your services revenues. It includes guarantee that are stipulated with the future franchisee according to the country’s socio-economic situation. On a daily basis, it will give you the following supports : • A complete export organization based in Paris with specialists in each category : marketing, products, training, sales, regulatory… with a dedicated account manager • Access twice a year to an exclusive hair collection made by our Artistic Team and all the B to B & B to C associated tools • Access to our intranet network (news, key figures, events, marketing information, training, products...) • Access to our E-learning platform (exist in 10 languages, has to be developed in Chinese)