Coppertone VN

Launch Plan 2015

May 2015
Sun Care Performance and
Key trends in APAC Region
 Sun Care Performance in APAC region
Asian desire for fair and youthful skin a major driver for Sun Care sales

3.5 12.0%
FORECAST
3.0
3.0
10.0% 10.0%

8.8% 8.9%
2.5
8.2% 8.3%
8.0% 8.0%
Value Sales (US$ bn)

7.9%
7.7%
2.0 7.4%
7.2%

YOY Growth
2.0

6.0%
5.6%
1.5 1.4

4.0%
1.0

2.0%
0.5

0.0 0.0%
2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F
*Data provided in historic, current and forecast constant terms

Source: Euromonitor International

Asia will see a gradual shift towards mass brands as usage of Sun Care increases
 Top Subcategories by Value in APAC region
Asian preference for light skin leads to domination of Sun Protection in Sun
Care
After Sun Self-Tanning
4% 2%

47.4%
Sun Protection
94%

Percentage gain of Sun Protection in

2011 Asia Pacific & Australasia over 2006
to 2011
US$ 2018 mn

Million
Total
Sun Protection

Sun Care Sales

US$ 609
Value gain of Sun Protection in Asia
Pacific & Australasia over 2006 to
1,285.2 2011

1,893.8

8.0%
2,784.9

0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0

Value Sales (RSP, US$ mn) CAGR of Sun Protection in Asia
2006 2011 2016F Pacific & Australasia over 2006 -
2011
Source: Euromonitor International
 Key Trends in APAC region
Consumers are trading up, seeking high quality products that offer value-add features

The importance of sun protection

Sun protection is considered as necessity due to the increasing awareness of the need to protect from solar
radiation on a daily basis as a result of intensive advertising campaigns and doctor endorsements.

Diverse formats to suit individual needs

A variety of formats available ranging from cream, spray, powder and stick to suit individual needs.

Multi-functional benefits well received

Consumers are demanding multi-functionality, incorporating skincare benefits such as whitening and anti-
aging ingredients into their sun protection products.

Women trading up
Consumers are choosing quality over price and are increasingly shifting away from mass brands and seeking
premium products for daily usage. Better distribution of premium brands have also contributed to this shift.

Popularity of fair skin

Asian consumers consider fair skin a top priority, contributing to the growing awareness of anti-aging and
whitening functions in sun protection products.

Niche markets serving the needs of various niche groups

Continuous innovation in sun protection products specially formulated for sensitive skin, male sun care, age
and area specific

Source: Euromonitor International

Vietnam Sun Care Market
Market Dynamic, Competitors & Consumers
 Vietnam Sun Care Market Overview (1)
• Market size: around 8 mio USD

Malaysia

Indonesia Value Sales (RSP, US$ mn)

Philippines

New Zealand

Singapore

Vietnam 9.565
Hong Kong, China

Taiwan 2006
2011
Thailand 2016F

India

Australia

Japan

South Korea

China

0.0 200.0 400.0 600.0 800.0 1000.0 1200.0

Source: Euromonitor International

Vietnam Sun Care Market Overview – Mass versus Premium (2)
• Vietnam is dominant with Mass sunscreen products; showing dramatic
growth (2006-2011)
700 30.0%

600
25.0%
24.1%
Value sales. ( RSP, US$ mn)

% CAGR 2006 2-011

500
20.0%

400

15.0% 15.0%
13.7%
300

10.0%
200
7.7%
7.0% 7.1% 7.3%
6.2%

4.8% 5.0%
100 4.2% 4.3% 4.0%

1.8% 1.9%

0 Mass Premium 0.0%

N

H
C

Au

M
V
S

I
J

Source: Euromonitor International

 Vietnam Sun Care Market Overview (3)
• Project to continue with strong growth of 9.4 % (2014-2016)

30.0%

25.0% Vietnam
% CAGR 2006-2011

20.0% China

15.0% India

South Korea
10.0% Australia
Thailand
Singapore
Indonesia
New Zealand
5.0%

Hong Kong, China Taiwan

Philippines
Malaysia
0.0%
0.0% Japan 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

% CAGR 2014-2016

Source: Euromonitor International

Top 10 brands in the Market

Source: IMS data. This captures pharmacy channel only

No. PRODUCT 2014 (k USD) Growth Share CAGR 2010-2014

1 UVEBLOCK - ISISPHARMA 399 10% 33% 10%

87
2 SUNPLAY SUPER BLOC - ROHTO METHO. 146 4% 12% 12%

3 NEOTONE RADIANCE - ISISPHARMA 131 69% 11% -

4 UNITONE 4 - ISISPHARMA 84 17% 7% -1%

%
5 CAPITAL SOLEIL - L OREAL 67 144% 5% 93%

6 EUCERIN SUN - BEIERSDORF 63 27% 5% 139%

7 SPECTRABAN - GSK 53 -9% 4% -

Top 10 brands
8 SUNPLAY SKIN AQUA - ROHTO METHO. 43 -14% 3% 25%
market share
9 DU MELAS SUN - PIERRE FABRE 42 55% 3% 51%
for Sun care in
10 AVENE HI PROTEC - PIERRE FABRE 32 433% 3% - Vietnam in
11 Others 162 11% 13% -8%
2014
TOTAL SUN CARE 1,220 20% 100% 15%

Page 10
Competitors Benchmark

Brand Coppertone Vichy UVEBlock Neotone Unitone 4 Banana Boat Block Up

Radiance
Format Lotion and Spray Lotion & Spray Lotion Lotion Lotion Lotion and Spray Lotion

Indication Sun protection Sun protection & Sun protection Sun Protection & Sun protection Sun protection Sun protection &
Make-up base Whitening & Daily Care And Anti aging

Classification Cosmetics Cosmetics OTC Drug OTC Drug OTC Drug Cosmetics Cosmetics

Shelf-life 24 months 36 months 36 months 36 months 36 months 36 months 36 months

Pack size 237ml & 177ml 50 ml,150ml, 40 ml 30 ml 30 ml 90 ml,177ml 88 ml

200ml

SPF 30 & 50 50 50 50 50 30,50,110 50

Price 15-17 USD 21-30USD 16USD 37USD 16USD 8-27USD 5USD

Strength -Long heritage - Brand name -Multi-purpose of not only for sun protection but also for -US brand name -Have small size
-Expertise in sun -Rich portfolio skin care/treatment (burnt/dark/ -Expertise in Sun for sampling
care -Products of high Care
-Rich portfolio efficacy -Rich portfolio
-Innovative -Add-in skincare -Products of high
products of high attributes efficacy
efficacy
Weakness -Big pack size -Less focus on -Due to being OTC drug, face restricted advertising and - Not available in - Not available in
-Shorter shelf-life sun care cannot be distributed in other channels except pharmacy pharmacy (MT pharmacy (MT
-Lack of daily skin products versus -Expensive channel focus) channel focus)
care attributes skin care
-MT is newly built products

Page 11
Media Review

‘000 USD

Page 12
 Target users: young females (age from 16 – 25 years old)

Positioning: Sun protection. Message: “Sun Challenge to the skin”

Communication: integrated campaign; using celebrity as brand ambassador

Website Web banner PR TVC

Page 13 Presenter • Presentation Title • Date CONFIDENTIAL – FOR INTERNAL USE ONLY
Product Description: Sun care milk based product – multi-purpose use as combination of sun
protection, skin care and foundation

Target users: young females (age from 20 – 35 years old)

Positioning: Sun protection. Message: Confidence in the sun

Communication: focus in Digital. (Fan page) to have engagement with target users. Leverage “Japan
brand name” to promote the brand
Our Consumer

Page 15
Coppertone Vietnam
Executive Summary
Portfolio

• Portfolio: 7 skus
(Kid, Baby, Sensitive skin, Sport
& Ultra Guard)

• Format: Lotion & Spray

• Pack size: 6 oz (177ml) and 8 oz

(237ml)

• Reg. status: Cosmetic

• Shelf-life: 24 months
Output
No. Material No. Material Description Code
1 1030766 COPPERTONE KIDS LOTION 8oz SPF50 VNM 70735 (old 171) • Distribution channel: Pharmacy,
2 1030828 COPPERTONE SS LOTION 6oz SPF50 VNM 280 Modern Trade
3 1030801 COPPERTONE SPORT C-SPRAY 6oz SPF50 VNM 167
4 1030835 COPPERTONE SPORT LOTION 8oz SPF30 VNM 887
• Target launch: Jul’15
5 1030815 COPPERTONE UG LOTION 8oz SPF30 VNM 8183
6 1030854 COPPERTONE UG C-SPRAY 6oz SPF50 VNM 173
7 1030678 COPPERTONE WB LOTION 8oz SPF50 VNM 70733 (old 177)
Pricing
PTT bef. VAT PTT aft. VAT
No. IU NUMBER Nam e of product Pack Size VAT Margin
in VND in VND

1 1030678 Coppertone WB Lotion 8 fl.oz SPF50 VNM 8 oz (237ml) 320,364 10% 352,400 70%
2 1030766 Coppertone Kids Lotion 8 fl.oz SPF50 VNM 8 oz (237ml) 343,273 10% 377,600 72%
3 1030801 Coppertone Sport C-spray 6 fl.oz SPF50 VNM6 oz (177 ml) 276,273 10% 303,900 75%  Price is set premium (15-17USD) and
4 1030766 Coppertone Sport Lotion 8 fl.oz SPF30 VNM 8 oz (237ml) 343,273 10% 377,600 72% competitive versus key competitors (<30% +)
5 1030854 Coppertone UG Spray 6 fl.oz SPF50 VNM 6 oz (177 ml) 279,364 10% 307,300 75%  Margin >70% in total
6 1030815 Coppertone UG Lotion 8 fl.oz SPF30 VNM 8 oz (237ml) 244,818 10% 269,300 75%
7 1030828 Coppertone SS Lotion 6 fl.oz SPF50 VNM 6 oz (177 ml) 327,364 10% 360,100 75%
VND

Page 18
Coppertone SWOT

Strengths Weaknesses
- Long heritage (>70 years) - Big pack sizes
- No.1 pediatrician recommended brand - Short shelf life upon market arrival (15-16
- Expertise in sun care months)
- Rich portfolio with innovative products - Missing skin feel/ Daily skin care attributes
- No irritation is the challenge in the “Shield Me” segment
- Convenience, Easy Application and Value - MT team is just set-up upon the launch
offerings

Opportunities Threats
- Expand business to sun care category - Small market size
- Category with continuously healthy growth - Mass segment dominates the market
over years - The biggest brand in mass segment -
- Premium segment with lots of players Sunplay is well-established and
(mostly cosmetic brands) but being not very aggressively doing advertising
active in advertising
- Increasing sun protection-conscious
consumers
- Consumers have high awareness and
reasonable knowledge of the category
(educated by Sunplay)

Page 19
 Key Challenges 2015

1. Shelf-life: Short shelf life (13-14 months shelf-life) of 3 skus upon launch in Jul’15

No. Coppertone Code Total quantity Production Date

2015
1 Sensitive Skin Lotion 6 oz 280 8,700 25/8/2014
SPF50
2 Ultra Guard Lotion 8oz SPF30 8183 6,700 25/9/2014

3 Sport Lotion 8oz SPF30 887 9,600 25/9/2014

4 Sport Spray 6oz SPF50 167 16,400 25/12/2014

5 UG Spray 6oz SPF50 173 3,600 25/12/2014

6 Water Baby Lotion 8 oz SPF50 70733 3,780 25/1/2015

7 Kids Lotion 8 oz SPF50 70735 26,200 25/1/2015

total 76,800
2. Distribution: Newly-set up MT channel needs time to be developed

Page 20
Coppertone Vietnam
Business Plan
Page 22
BCC Vision and Role of Coppertone

BCC Vietnam Vision

In every home, every day

We dream that EVERY HOME in Vietnam will have
AT LEAST ONE of our products ANYTIME of the year & use it to
keep the family HEALTHY.

Expand Portfolio, Be The Most Develop Commercial

Build Healthy Brands Trustworthy Excellence

People, Capabilities,
5+ brands> 3 mil € Customer focus
Geographies & Channels

1 2 3
Helps build high trust from
customers as a leading sun
Role of Helps enter the Sun care
care brand with long
Helps expand to new
Coppert category where BCC did distribution channel
heritage, expertise ,
one not have presence in the (Modern Trade) and new
innovation as well as the
past category
No. 1 pediatrician
Page 23
recommended brand
Launch Objectives & Strategy

Mission Provide freedom for consumers around the world to embrace the sun in their own way

Long Term 1. Top 5 sun care brand by 2020

Objectives 2. Revenue to reach > 3 mio EUR by 2020

Short Term 1. Sales: 611k Euro

(2015) 2. Gain 7% MS in Sun Care category
Objectives 3. Cover 2,000 pharmacy stores (30% total BCC coverage) and 100 MT stores

Category Strategy Consumer Strategy Market Strategy

Segment: ** Water Baby/ Kids: Pharmacy:
 Focus on premium 1) Focus Buyers & decision-makers: married women 25- 1) Focus on A, B class pharmacy retailers
segment 45, ABC, in key cities; those who want the children they and pharmacy chains in main cities
love to be happy and enjoy the sun while being protected 2) Heritage, expertise, leadership and
Portfolio Management: from its harmful rays. innovation to be highlighted
 Focus on selected key 2) Key message: Gentle but effective sun protection 3) Discounts
products: Kid/Baby as ** Sport: Modern Trade:
strategic point of entry 1) Target user: Sun Embracers (adults ages 18-54) ABC in 4) Focus on dedicated Key Accounts
to the category and key cities who are healthy, active. They thoroughly enjoy (Circle K, Family Mart, Guardian) and
Sport as key getting outside and living life with vigor supermarkets in shopping malls (Aeon,
differentiator 2) Key message: Superior sun protection with durability Lotte) in 4 key cities
to withstand the sun and sweat 5) Be prominent & dominant on shelf
 Promoting spray format 3) Margins & Consumer Promo
(with patented spray Communication: ATL for brand awareness and WOM Doctor:
technology) as USP generation whilst Activation for product experience and trial Leverage pediatricians as primary source of
plus convenience to build up trust endorsement
offerings Price: Premium and competitive to key competitors (<30% Other channels (Baby Shop)
+) Do pilot activities at Baby Shop in 1st year in
2key cities (HCM& HN) and roll-out if works
Sales Projection (2015 – 2020)

%growth %growth %growth %growth %growth

Volume (Unit) 2015 (*) 2016 2017 (**) 2018 2019 2020 (***) 16/15 17/16 18/17 19/18 20/19
Coppertone 134% 31% 14% 14% 37%
Baby 2,400 5,800 6,670 7,671 8,821 10,144 142% 32% 15% 15% 38%
Kid 16,200 38,000 43,700 50,255 57,793 66,462 135% 32% 15% 15% 38%
Sport Spray 10,200 24,000 27,600 31,740 36,501 41,976 135% 32% 15% 15% 38%
Sport Lotion 6,000 14,000 16,100 18,515 21,292 24,486 133% 32% 15% 15% 38%
UG Spray 2,400 5,800 6,496 7,276 8,149 9,126 142% 29% 12% 12% 34%
UG Lotion 4,200 10,000 11,200 12,544 14,049 15,735 138% 29% 12% 12% 34%
SS 5,400 12,000 13,200 14,784 16,262 17,889 122% 27% 12% 10% 32%
2015 2016 2017 2018 2019 2020
Value (k Euro)
Coppertone 611 1,431 1,877 2,146 2,448 3,354
Baby 32 77 102 118 135 187
Kid 232 544 719 827 951 1,312
Sport Spray 117 276 365 420 483 667
Sport Lotion 86 200 265 305 350 483
UG Spray 28 68 87 97 109 147
UG Lotion 43 102 131 147 165 222
SS 74 164 207 232 255 337

(*) Sales figures since the launch month of the brand (not full year sales)
(**) Price increase +15%
(***) Price increase +20%

Page 25
Financials – P&L
'000 Euro 2015 2016 2017 2018 2019 2020
TOTAL VOLUME
Baby 2,400 5,800 6,670 7,671 8,821 10,144
Kid 16,200 38,000 43,700 50,255 57,793 66,462
Sport Spray 10,200 24,000 27,600 31,740 36,501 41,976
Sport Lotion 6,000 14,000 16,100 18,515 21,292 24,486
UG Spray 2,400 5,800 6,496 7,276 8,149 9,126
UG Lotion 4,200 10,000 11,200 12,544 14,049 15,735
SS 5,400 12,000 13,200 14,784 16,262 17,889
TOTAL NET SALES 611 1,431 1,877 2,146 2,448 3,354
Net Sales Growth 134% 31% 14% 14% 37%

COGS 164 383 437 499 569 649

Baby 8 20 23 27 31 35
Kid 57 133 153 176 202 232
Sport Spray 36 84 96 111 128 147
Sport Lotion 21 49 56 65 74 86
UG Spray 8 20 23 25 28 32
UG Lotion 15 35 39 44 49 55
SS 19 42 46 52 57 63

MI2 448 1,048 1,440 1,647 1,879 2,704

GP margin 73% 73% 77% 77% 77% 81%
FTE Cost 2015 expects to
Marketing External 31 72 94 107 122 168
occur since end Q3 when
% of NS 5% 5% 5% 5% 5% 5%
new headcount is on board
Marketing Internal 221 524 682 714 814 1,040
(not full year)
% of NS 36% 37% 36% 33% 33% 31%
Marketing FTE cost 7 23 25 28 31 34
P&I 214 501 657 687 783 1,006
% of NS 35% 35% 35% 32% 32% 30%

Total Marketing Cost 278 651 854 893 1,019 1,308

% of NS 46% 46% 46% 42% 42% 39%
MI3 170 397 586 754 861 1,396

EBIT 170 397 586 754 861 1,396

in % of NS 28% 28% 31% 35% 35% 42%
Cumulated EBIT 170 566 1,152 1,906 2,767 3,303

Page 26
Tactics 2015 (Jul – Dec)
Total P&I: 214k Euro (35% NS)
Jul Aug Sep Oct Nov Dec

MRs & ZPV

Sales team Product Training

DTC Digital (35k Euro):

(125k  Web banners on male and female websites (entertainment, sport /parenting corners, …)
Euro)  Online PRs and SEO
 Content seeding in popular forums for parents & sport lovers (webtretho, lamchame, otosaigon, tinh te, I love
running…) plus organize online contests - Prizes as free sample use for 1month/3 months/ 6 months
 Leverage KOLs (Facebookers, hot boggers, pediatricians) as brand endorsers

OOH (40k Euro):

 Frame-ad in elevators in office buildings/ premium apartments in key big cities

Activation (50k Euro):

 Sampling & Sport Event Sponsorship “Color Me Run” in Hanoi (Sep’15) – Clips/Photos captured to seed
online and used for online PR
 Sampling at Baby Shops in 2 key cities HCM & Hanoi

Build Brand Awareness , Generate WOM and Drive Trial

Pharmacy & Pharmacy (25k Euro): MT (25k Euro):

MT  Merchandising in 300 PH stores (Aug-Dec)  Merchandising in 100 stores (Aug-Dec)
(50k Euro)  DOI 15%  Consumer Promo

Ensure product availability & visibility

Others Agency fee and reapplication/usage cost of KV

(39k Euro)
 In-store Merchandising – Pharmacy Channel

- Timing: 6 months (Aug’15-Jan’16)

- Merchandising type: counter top
- Target: 300 stores
- Scheme:
+ Purchase 1st set (7 skus) – 2,348,200 vnd (incl. VAT). DOI15% on 1 st set
+ Monthly display: to be paid 300k vnd by product

Page 28 Presenter • Presentation Title • Date CONFIDENTIAL – FOR INTERNAL USE ONLY
 THANK YOU

Page 29 Presenter • Presentation Title • Date CONFIDENTIAL – FOR INTERNAL USE ONLY