JAFRA Cosmetics International, Inc. Company Fact Sheet About the JAFRA Brand JAFRA Cosmetics International, Inc. is a leading manufacturer of beauty products, offering a whole range of skin care, fragrance, color cosmetics and toiletries, with operations in 17 countries around the globe. The privately-held company has more than 550,000 Independent Contractors (Consultants) and annual revenue in excess of half a billion U.S. dollars. Since 2004, JAFRA has been a member of the Vorwerk Group, a family enterprise established in 1883 with headquarters in Germany. Worldwide Headquarters 2451 Townsgate Road, Westlake Village, CA 91361 Birth of a Global Company USA- 1956 Germany Austria- 1978 Netherlands Switzerland- 1981 Italy- 1978 Russia- 2006 Mexico- 1979 BRazil- 2008 Indonesia- 2013 JAFRA’s Beginnings Founded in 1956 by Jan and Frank Day in Malibu, California, JAFRA offers women a compelling income opportunity through the direct selling of exclusive beauty products. JAFRA’s unique name was derived by combining its co-founders’ first names (JA + FRA). Jan and Frank studied the ancient beauty secrets of the Egyptians and the legendary Royal Jelly Milk Balm was born. Royal Jelly became an overnight success and it has remained JAFRA’s signature product to this day. Company Highlights ▪JAFRA ▪ offers more than 700 innovative beauty and skin care products that bring affordable luxury to the consumer through a diverse and expansive portfolio. JAFRA’s overall philosophy in product development is a unique combination of science and nature, resulting in effective and ecologically-friendly product formulations. ▪Product ▪ collections include Skin Care, Fragrance, Color cosmetics and Toiletries. Building on the success of the Royal Jelly line which kicked off the business, JAFRA Skin Care has expanded to include innovative lines such as the unique Advanced Dynamics regimens and the breakthrough cosmeceutical skin care line, JAFRA PRO. ▪JAFRA ▪ opened a new manufacturing complex in Querétaro, Mexico in early 2010. The $30 million plant is 256,000 square feet, has 850 employees and manufactures over 1,500 SKUs. ▪JAFRA ▪ is committed to empowering women and enabling them to reach their full potential. JAFRA fully lives and embraces its slogan: ‘freedom to be you.’ ▪JAFRA’s ▪ mission is to transform the lives of millions of women around the world. The company has expanded its global presence to include Asia, with market entry into Indonesia in 2013. ▪JAFRA’s ▪ parent company, Vorwerk, is a top Direct Selling corporation, ranking fourth on the 2014 DSN Global 100 List. ▪JAFRA ▪ has been listed as one of the top 100 beauty companies in the world and is number one in Fragrance Sales in Mexico. JAFRA Executive Committee Mauro Schnaidman President & Chief Executive Officer Matt Petersen Senior Vice President & Chief Marketing Officer Tony Prudhomme Senior Vice President & Chief Financial Officer Mari Loli Sanchez Cano President of JAFRA Mexico More information is available online at www.JAFRA.com. Paulo Moledo President of JAFRA USA Jackie Trask Senior Vice President, Worldwide Human Resources Mark Funaki Vice President & General Counsel JAFRA Cosmetics International, Inc. The JAFRA Direct Selling Opportunity Giving Women the Power to Transform their lives through Teamwork, Choices and Success Women are constantly seeking balance as they strive for a fulfilling life with financial independence. For many, the traditional workforce does not fit their needs, so they search for other ways to set their own goals, earn extra income and be rewarded for their achievements. Over half a million women around the world have found a successful career selling JAFRA beauty and skin care products. They have their own home-based businesses as independent JAFRA Consultants, which allows them to work at their own pace and achieve a level of financial independence. JAFRA has a reputation as a cosmetics and skin care innovator and has been listed as one of the top 100 beauty companies in the world. The JAFRA brand offers a selection of more than 700 quality products within the Skin Care, Fragrance, Color cosmetics and Toiletries categories. Joining the JAFRA Family Joining and starting a JAFRA business is easy – both financially and practically. It takes only a matter of minutes to join JAFRA. Consultants don’t have to worry about taking out a loan, stocking inventory or paying for costly overhead. Joining JAFRA means: ▪Consultants ▪ control their own schedules and determine the amount of time they devote to their business. ▪Consultants ▪ can choose to be their own boss or bring extra income into their family while maintaining a quality of life. ▪Consultants ▪ are able to find success regardless of age, education or background. “Launching a small business can be expensive,” said Matt Petersen, Chief Marketing Officer of JAFRA. “JAFRA – and its direct sales approach – has removed the financial barriers and the risks, so our Consultants can focus on maximizing their earning potential.” New Consultants automatically become part of a team of peers. In this nurturing environment, they learn marketing skills, build new relationships and benefit from their team’s extensive marketing experience. Consultants receive: ▪Professional ▪ online sales and marketing tools ▪Access ▪ to frequent events, meetings and training seminars ▪Support ▪ from a corporate national sales team, whose mission is to work hand-in-hand with Consultants to help them achieve their goals and dreams Flexible Selling Model Launched in 1956 in Malibu, California by entrepreneurs Jan and Frank Day, JAFRA experienced immediate success as a direct sales company with a ‘home party’ marketing model. Over the decades, marketing has changed dramatically. JAFRA now supports a variety of flexible and innovative selling systems for its Consultants, including selling one-on-one or in small group environments, as well as marketing via websites, blogs and through social networking avenues. JAFRA’s Company Slogan: ‘freedom to be you’ With the slogan “freedom to be you,” JAFRA celebrates the unique spirit within every woman, and all the things that make her imperfectly perfect and individually beautiful. JAFRA believes in making confidence contagious, spreading success and inspiring individuality. JAFRA creates beauty products and business opportunities that cater to all that women need, allowing them to explore, discover, reinvent and reveal their true potential. “The sky is the limit with JAFRA,” said Petersen. “We’re committed to helping women in all parts of the world reach their full potential, and our compensation program is proof of this commitment. We offer our Consultants the opportunity for personal and professional growth. Through their own efforts, they can transform their lives and achieve the lifestyle they want and deserve.” More information is available online at www.JAFRA.com. JAFRA Cosmetics International, Inc. Mission and Values Our Mission To transform the lives of millions of women around the world Our values We Value People who... Have passion to serve our customers Develop leaders and leadership Work together as a team Act with trust and integrity Are inspired by the power of people More information is available online at www.JAFRA.com. JAFRA Cosmetics International, Inc. JAFRA Executive Committee Mauro Schnaidman JAFRA President & Chief Executive Officer Mauro Schnaidman is a seasoned Brazilian executive and was appointed President and Chief Executive Officer of JAFRA Cosmetics International, Inc. in October 2013. Reporting directly to Vorwerk’s Executive Board, Mauro is responsible for the overall management of JAFRA, which has an international network of more than 550,000 independent Consultants worldwide. His international expertise has spanned over 20 years in various industries and continents. From his early executive days at Pepsi and Unilever, to his management roles within Revlon and AOL, to his most recent position as President of Sara Lee Coffee and Tea Southern Europe, Mauro has contributed to major expansion and growth within top companies throughout America, USA and Europe. Mauro graduated from the Escola de Engenharia Mauá, and studied Leadership at the IMD Business School and EDP at the University of Pennsylvania – The Wharton School. Mauro is a member of the CEO Council for the WFDSA (World Federation Direct Selling Association). He is also an active member of WPO (World Presidents’ Organization) and Ambassador of Barcelona in Los Angeles at Barcelona Global Initiative. He is fluent in English, Portuguese and Spanish. Tony Prudhomme Senior Vice President & Chief Financial Officer Tony Prudhomme was appointed Senior Vice President and Chief Financial Officer of JAFRA Cosmetics International in September 2014. In his current position and as a member of JAFRA’s Management Board, Tony leads the Worldwide Finance and IT teams as well as Global Operations and is responsible for planning, implementing, managing and controlling all financial-related activities of the company. With his deep knowledge and experience in General Management, Operations, Finance, Business Development, and Technology, Tony is a valuable asset to the company. Prior to joining JAFRA, Tony was the Chief Operating Officer and Chief Financial Officer at Beyond Meat, a developer of new plant protein products. He previously held the positions of Chief Operating Officer at Zodiac Marine & Pool and Chief Risk Officer and CFO Latin America at Dole Food Company. Tony received his B.S. degree in Accounting from California State University, Northridge and is a Certified Public Accountant. Jackie Trask Senior Vice President, Worldwide Human Resources Jackie Trask was appointed Senior Vice President, Worldwide Human Resources in April 2011 and became a member of JAFRA’s Executive Committee in July 2013. In her current position, Jackie leads Human Resources at the global level, driving the accomplishment of worldwide business goals while cultivating an engaging work culture and commitment from employees. Prior to joining JAFRA in December 2006, Jackie led several HR organizations or HR functional areas for companies, including Triad Financial Corporation, Conexant Systems, Gateway and Pepsico. She has been a Human Resources consultant for the Hay Group and Towers Perrin. Jackie received a B.A. degree, Cum Laude from Harvard University and her MBA from the Wharton School, with a specialization in Strategic Human Resources. More information is available online at www.JAFRA.com. Matt Petersen Senior Vice President & Chief Marketing Officer Matt Petersen was appointed Senior Vice President and Chief Marketing Officer of JAFRA Cosmetics International in August 2014. In his current position and as a member of JAFRA’s Management Board, Matt leads the Worldwide Marketing and R&D teams in strengthening the JAFRA brand and optimizing business results. After receiving his B.A. degree from Boston College and beginning his career with the Walt Disney Company, Matt gained extensive leadership experience through diverse Marketing roles at Mattel and PepsiCo. Prior to joining JAFRA, Matt held numerous high-level positions at Mattel and was most recently Vice President of U.S. Marketing, a role in which he was responsible for strategy, marketing programs, media and social and promotional programs. Previous roles proved his creativity and passion for marketing while demonstrating his strengths in global branding, consumer-focused creative, portfolio development and product packaging design. Paulo Moledo President of JAFRA USA Paulo Moledo was appointed President of JAFRA USA in April 2014. Reporting directly to the CEO, Paulo manages the direction of JAFRA’s USA market, while also contributing to the overall growth of the company as a member of JAFRA’s Management Board. Paulo’s résumé boasts achievements in high growth attainment, operating margin expansion, inventory reduction, and significant external debt reduction. Prior to joining JAFRA, Paulo served as General Manager for Avon Mexico and Argentina, where he was responsible for sales, marketing, communications, supply chain and finance. In addition to various roles at Avon, Paulo previously held positions for companies such as Ford Motor Company, Revlon and AOL. Paulo received a Bachelor’s Degree in Economics from MacKenzie University in Brazil and an MBA in International Business from the University of Miami. Paulo is fluent in English, Spanish and Portuguese. Mark Funaki Vice President & General Counsel Mark Funaki was appointed Vice President and General Counsel of JAFRA Cosmetics International, Inc. in 2004. He became a member of JAFRA’s Executive Committee in January 2014. In his current positions, Mark manages corporate legal affairs, provides legal guidance on all aspects of the company’s business and supervises all in-house legal staff. He has been an asset to JAFRA since 2000, when he joined the company as Associate Counsel. Prior to working at JAFRA, Mark was an Associate at Cades Schutte LLP, where he practiced corporate and transactional law. Mark received a B.A. degree in Public Policy from Duke University and his J.D. from Vanderbilt University Law School. JAFRA Cosmetics International, Inc. Company Timeline A revolution in beauty OUR HISTORY began in 1956... begins here... 1956 AUGUST 6th JAFRA is founded by Jan and Frank Day. The first JAFRA Beauty Party is held: Jan and Frank make $26 and book 2 more beauty parties. 1957 Royal Jelly Milk Balm is introduced and remains signature product line. 1961 Signature body care line, Royal Almond, is introduced. 1966 JAFRA opens its own lab in Santa Monica, CA. 1973 JAFRA becomes a subsidiary of Gillette Corporation. Consultants: 5,000 Sales: US$ 4 million 1974 JAFRA opens its first corporate offices at Warner Center, Canoga Park, CA. JAFRA joins Direct Selling Association. 1977 1978 Jandé (made especially for Jan Day) debuts as JAFRA’s premier fragrance. Groundbreaking year for HQ in Westlake Village, CA. Market Opens in Italy, Austria, Netherlands and Germany. 1979 Mexico market opens. 1980 JAFRA HQ Opening Ceremony in Westlake Village, CA. 1981 VISION Innovation and Switzerland market opens. Skin care line introduced. 1984 1985 Color Care Program (New Packaging, Supertones and Tinted Moisturizer with SPF) is launched. 1st product brochure literature featuring product pictures & pricing available to Consultants. JAFRA launches new PABA-free, oil-free, water resistant Suncare Line. 1986 JAFRA celebrates 30 years! JAFRA introduces its Professional Nail Care Line. 1987 Introduced Skin Care Line (Generation II) for 4 skin types + Hypoallergenic/Fragrance Free. 1991 Mexico reaches 100,000 Consultants! 1992 May 2nd The city of Thousand Oaks celebrates JAFRA Day! 1993 Men’s Skin Care Line is introduced. Skin Care Line, Generation III, is introduced. 1994 European distributors established. 1995 1998 Time Corrector Night Moisturizer is introduced. APRIL 30th JAFRA is acquired by Clayton, Dubilier & Rice. Consultants: 248,000 Sales: US$ 245 million Continued Growth... JAFRA milestones 2000 “Circle of Excellence” created to honor top JAFRA Consultants Worldwide. Tech Beauty Service (TBS) Skin Care line is introduced. 2001 Spa line, Tender Moments Baby Line are launched. 2002 Royal Jelly Vitamins & Define Your Body are introduced. 2004 JAFRA is acquired by Vorwerk & Co. KG Holding, the World’s 4th largest direct selling company. Consultant Base: 410,000 Sales Revenue: US$ $417 million 2005 Vorwerk celebrates 75 years in Direct Sales. JAFRA ranked #5 in the Top 10 Global Fragrance Brands. 2006 JAFRA celebrates 50 years! Russia market opens. 2007 Dynamics Skin Care line launches. JAFRA ranks #5 among “Top 25 Private Companies.” JAFRA ranks #9 among “America’s 500 largest Sales Forces: Direct Sales.” New Mission, Vision and Values Campaign launched. A look to the 2008 FUTURE... Royal Jelly Advanced with Sirtuin Activators & Cellspan Complex introduced. Brazil Market opens. 2009 Men’s Dynamics Line introduced. Querétaro, Mexico Manufacturing Plant opens. Employees Worldwide: 1,657 2010 Consultant Base: 550,000 Sales Revenue: US$ 500+ million India Market Opens. New Corporate Website launched. New Color Line introduced. 2011 JAFRA celebrates its 55th Anniversary! JAFRA PRO introduced. 2012 Worldwide Corporate Social Media Strategy launches. Introduction of beautifully revamped corporate and regional websites. JAFRA awarded DSA digital media for corporate. 2013 Indonesia Market opens. JAFRA reaches out to younger demographics through launches like JAFRA Vibe. Vorwerk celebrates its 130 Year Anniversary. Mauro Schnaidman joins JAFRA as President & Chief Executive Officer. 2014 JAFRA launches Advanced Dynamics. JAFRA rebrands with “freedom to be you” tagline.