JOFFREY CHART IERACHIEVEMENTS INTERVIEW

Explain your most successful experience in concept / product development.

When it comes to product development, the one that comes to my mind now is our ongoing success from our own brand collaboration with up and coming make-up artist Hindash.The success of the product and our collaboration is beyond our expectations, making us think that we might have found the new Huda (today #4 global brand in the GCC and gaining traction WW).Based on the early results, we have lined up 4 more product collaborations in the next 6 months with him and we’ll most

likely move towards producing the eponym brand for Hindash.This success is the combination of a great formula, the bet on the right make-up artist, his appearance in our stores and the fact that his collaboration with us has been endorsed by make-up heavyweights such as Charlotte Tilbury. Please see link below

When it comes to concept development, I should naturally talk about Faces transformation but since a lot has been shared already on Faces, I’d rather focus on “Beauty Nation” which is completely new concept created from scratch that hosts everything indie beauty, whatever the category is. It’s by essence appealing and exciting for the customer and as business owner, it offers us complete agility and flexibility, both in terms of retail format as well as

assortment lines and focusSo far, we have rolled out 5 formats: Faces flagship store, Department store shop in shop, B8ta store, online shop in shop (faces and tryano)Soon to come, mobile pop up, shoppable Instagram, careem collaboration

Provide two examples of generating like-for-like sales while growing EBITDA

In DFS, thanks to the implementation of smart pricing strategy, we reached a very high growth in volume leading to a strong improvement in margin $. It did lead to a significant increase in our sales, both in units and value, further boosting our bottom line.Still in DFS, the revamping of some of our floors in line with our new customer journey allowed us to welcome more brands in our doors within the same space, some of them offering significantly more margin than our ongoing line up. The new brands contributed to a higher level of sales without expanding our footprint (increased productivity) and their higher margin was accretive to our profitability (mix management). At the same time, a better and qualitative usage of our neutral space drove increased customer excitement and better sales thru the maximization of new touch points

Explain how you have managed seasonal activation

We have carried out successful seasonal retailer activation. Under the name first class beauty, we did create a WW beauty event during which we drove many retail activations and engaged all our brand to propose something different to our clients and make the most of the traffic generated during the 15 days of the activation. This activation received the price for best

campaign as soon as its 2nd edition by DFNI and generated a 11 points plus over norm in sales.

Illustrate your most successful Inventory Management optimization.As our supply was previously owned and handled by the distributors of our brand partners (classic middle east business model), we inherited a very concerning stock situation (7,5 months of stock, 40% of it aged 2 years and above)We therefore centralized our supply function, rebuilt our assortment and re-planogrammed all our stores, invested in a forecasting planning and replenishment tool that we will roll out this November (slimstock).We have managed to operate a soft Landing of our stock level, reducing it by more than 15MUS$, freeing up the cash flow to support our equity investment in building up the new faces

In taking over faces, our mission was twofold, 1, transform the brand and concept, 2, turning around a dangerously dropping business without waiting for the new equity and new store concept to kick in• In H2 2017, We laid out the future forward plan and built its fundamentals• In H1 2018, we tested and tracked many business boosting initiatives• In H2 2018, we implemented the most successful prior experiments (sales optimization model, new

commission system)

Share your most noticeable turnaround plan results

-34.2%

-16.7%-19.4%

-16.7%-18.5%

-6.1% -6.4% -5.9%

16.5%

-18.5%

7.4%

-8.5%

-2.2%

8.2% 7.6%

11.9%

(40)%

(30)%

(20)%

(10)%

-

10%

20%

Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Monthly LFL Growth Trend - GCCFaces Sephora GCC Prestige Beauty Market Linear (Faces)

Give your most successful experience as a Change AgentIn one year in the chalhoub group, we did not leave any stone unturned and embarked on the biggest transformation of our concept and network since its creation 20 years ago.Every element has been assessed and altered to meet our goal, to become a relevant and purposeful hybrid beauty retailer of choice.

• Purpose, Values, Vision and mission• Structure• Name and Image• Store concept• Customer journey

• Assortment and brands strategy• Partnerships• Brand collaboration framework

We had started to see the results of the team / methodology changes as we have gradually caught up with Sephora growth (key beauty driver in the region) and beat them in Q4 20128, even before rolling out our new store concepts (small concept November 2018, Main store Mai 2019) and our new image (January 2020)

Describe your most challenging team management experience in terms of size and complexity and how you achieved results

When I arrived in Mexico, I did inherit a fairly big yet dysfunctional team.The purpose of each cluster + individuals was very much undefined leading to many overlaps and an unequal repartition of the workload.This should have been easily solved with a straightforward RACI or LEAD exercise, yet the problem turned out to be deeper.This is when I discovered that the concept of social class was somehow still prevalent in Mexico where it then felt acceptable that some team members were going home at 11pm whereas others were leaving at 5pm.It has been a labor of organization and diplomacy so that we could reach our goal of a more efficient

organization while not upsetting some unspoken cultural background.Instead of a classic top down RACI, I took the whole team outside of the office for a 3 days exercise around our global purpose, starting from the very top of why we exist (now known as the golden circle approach) and expanding it to each and every cluster + individuals’ mission and accountability.It did work very well, even more so when after a few months running our renewed approach, we did update all the KPIs in line with what the organizational exercise was preparing us for, with some minor finetuning that the go live project allowed us to further identify.

Describe your most successful digital strategy for a luxury brand and the importance of eCommerce in terms of revenues

Our current Faces digital strategy is threefold• Making the most of digital technology to enhance brick and mortar experience with the following

tools: Magic mirror, gift wizard, fragrance profiler and multi brand digital tester bar, all acting as data capture enablers.

• Improve our staff capability with digital intelligence, supporting them with an app based tool allowing them to better know their customer (past purchases) and offer them relevant products (based on their history and our AI based ecommerce recommendation tool). This app will soon allow them to also replace inefficient (so far) chatbots so that they all can answer and address customer online requests.

• Our digital solutions will help us promote Customer generated content, as our reward program will incentivize them to post and interact, further boosting our equity and starting to maximize the concept of nano influencers.

Our e-commerce currently only represents 3.2% of our sales as it’s unfortunately crippled by “gray” market place making our equivalent of amazon 35% cheaper than our retail price. To cope with that situation, we’re pivoting towards more exclusivity, specific offers (price opacity) and use our platform as a “travel light concept” allowing us to open smaller door formats in which we mainly carry testers whereas all our offer is available to order online.In the meantime, we’ve developed our traffic drive capability with the addition of a performance marketing headcount and we’re constantly AB testing our funnel for marginal gain on conversion and

reduction of prospect drops along their journey.

In DFS, we created store booster tools for the brands to maximize their sales.The model is pretty seamless as our data portal helped our vendors figuring out where to invest and how much they shall spend towards bridging their gap (gap analysis approach).From there, we made available a wide array of tools by store that the brands can use against $ contribution in order for them to reach their targets.We’re currently working on the same approach in Faces, with more of a bias towards digital touchpoints allowing us for wider booster availability and more granularity.

Explain your most successful turnaround action for increasing gross margin