This artwork was created using Nielsen data.Copyrigh t © 2019 The Nie lsen Com pany (US), LLC. Confidentia l and p roprie ta ry. Do not d istribu te . 190004

KAREN WOLFEVice President, Clien t Consulting

MIND, BEAUTY & SOUL

2This artwork was created using Nielsen data.Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

THE BEAUTY LANDSCAPE CONTINUES TO EVOLVE

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HOLISTIC WELLNESS

Source : NMI; Nie lsen Spectra , * gene ra l popula tion

23%

Life style of Health & Susta inab ility HH’s increase from

16% in 10 years

“The idea tha t you’re exe rcising and trying to ea t we ll and then sla the ring

yourse lf with chem ica ls, parabens, and silicones — it’s not grea t.”

MORE THAN HALF OF BEAUTY CONSUMERS:

● Buy na tura l p roducts; conce rned about hea lth

● Conce rned about the chem ica ls in m y pe rsonal care p roducts*

● Buy na tura l p roducts; conce rned about environm ent

● Willing to give up conven ience for environm enta lly sa fe p roducts

4This artwork was created using Nielsen data.Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

BEAUTY WITH A BRAIN

SUB-ZERO WASTE

CONNECTED CONSUMER

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BEAUTY WITH A BRAIN

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CLAIMS & INGREDIENTS MATTER

Source : Nie lsen Product Inside r powered by Labe l Insigh t Re ta il Measurem ent xAOC, da ta ended 02/24/2017

PERSONAL CARE PRODUCTS MARKETING

LAVENDER

+4%Dollar Growth

vs YAGO

BRAND

BASED ON INGREDIENTS

-4%Dollar Growth

vs YA

+13%Dollar Growth

vs YA

NATURAL LAVENDERFRAGRANCE

ARTIFICIAL LAVENDERFRAGRANCE

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BEING ‘NATURAL’ IS KEY BUT CONSUMERS WANT

Source ; Nie lsen Wellness Track - Tota l US xAOC - 52 wks 12/22/18Beauty & Cosm e tics: Cosm e tics & Nail Groom ing, Facia l Skin Care , Fragrances, Hair Care , Hand & Body LotionNatura l Pre sence is Natura l cla im on package , Natura l is characte ristic based de fin ition of Natura l

na tu ra l | clean | non toxic | sa fe | green | organ ic susta inab le | pure | botan ica l | e co | free from | hypoalle rgen ic

Tota l Beau ty Natura l Pre sence Natura l

1.3%

-0.3%

6.6%

3.9%

14.1%

7.0%

DOLLAR GROWTH

2017 2018

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BRANDS MUST BE MUCH MORE DYNAMIC

Source : Nie lsen Product Inside r powered by Labe l Insigh t Re ta il Measurem ent xAOC, 52 weeks ending 02/24/2018

DOLLAR GROWTH DRIVERS

DO

LLAR

GR

OW

TH

TOTALPERSONAL

CARE

FREE FROM ARTIFICIAL

FRAGRANCES

BOTANICAL EXTRACTS

HUMANE CERTIFIED

LAVENDER CUCUMBER AVOCADO OIL

COFFEE ESPRESSO

28.2%OF PERSONAL

CARE $s

19.3%OF PERSONAL

CARE $s

4.3%OF PERSONAL

CARE $s

1.7%OF PERSONAL

CARE $s

1.0%OF PERSONAL

CARE $s

0.4%OF PERSONAL

CARE $s

0.1%OF PERSONAL

CARE $s

PROVEN TRENDS EMERGING TRENDS

0.1% 2% 5% 19% 11% 11% 45% 71%

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LOOK BEYOND PROVEN INGREDIENTS

Source : Nie lsen Innovation Activity Dashboard , 2018, Based on # of Innovations across Pe rsonal Cleansing/Washing and Skin Care

ALMOND, COCONUT, ALOE VERA, ROSE, SHEA AND CUCUMBER & TEA CONSISTENT AROUND TH Top Scents/Ingredien ts with in Persona l Care Innova tion by Country, 2018

Berry

Rose

Almond

RoseAlmond

AlmondCoconut

Shea

Cucumber & Tea

Almond

Rose

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INCORPORATE INGREDIENTS THAT DRIVE EXCITEMENT & ARE CREDIBLETOP 5 FASTEST GROWING INGREDIENTS IN BEAUTY (YOY GROWTH)

Source - Socia l Standards, Nie lsen Innovation Quick Screen January 2019

WHICH CLAIMS HAVE THE MOST POTENTIAL?

NEED / DESIREC

RED

IBIL

ITY

Quadrant 4 - Low Need / High Credibility

Lower PH Form ula tion Dye Free

Innovation Potential

Quadrant 3 - High Need / High Credibility

Prob iotics, Pe p tide s, Algae , Avocado, Elastin

The New Normal

Quadrant 1 - Low Need / Low Credibility

Creatine , Koji Acid

Trending

Quadrant 2 - High Need / Low Credibility

Plan t Ste m Ce lls , Saffron , Argin ine

Information Potential

11This artwork was created using Nielsen data.Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

WHAT’S IN PRODUCTSMATTERS

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SUB-ZERO WASTE

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Nielsen Product Insider, powered by Label Insight, Retail Measurement xAOC, 52 weeks ending 12/22/18

BRANDS MUST COMBINE ‘GOOD FOR ME’ WITH ‘GOOD FOR WE’

+0.4%CONVENTIONAL

LEVELS OF CLEAN LABEL AND TOTAL STORE SALES GROWTH VS YA

+2.6%NO ARTIFICIALSFree From Artificia l Colors/ Flavors/ Preserva tives/ Swee teners, Horm ones & Antib iotics

+4.2%CLEAN Meets No Artificia l Requirem ents + Conta ins none of the “No No” List of Ingred ien ts Defined

by Nie lsen

+5.8%SUSTAINABLEMeets Clean & <10 Requirem ents + Has A Susta inab ility Cla im

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BEAUTY CATEGORIES HAVE AN OPPORTUNITY

Source : Nie lsen Category Shopping Fundam enta ls 2017, Q: When shopping for Cosm e tics, Face and Hair (S&C), what a ttribu te s a re im portan t to your purchase decision?

ENVIRONMENTALLY FRIENDLY

COSMETICS FACE HAIR

13% 14% 10%

RECYCLABLE PACKAGING

COSMETICS FACE HAIR

6% 8% 8%

NO ARTIFICIAL INGREDIENTS

COSMETICS FACE HAIR

13% 20% 10%

CONVENIENCE

COSMETICS FACE HAIR

26% 25% 19%

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SUSTAINABILITY TAKES MANY FORMS

Source : Nie lsen Quick Screen Study on Susta inab ility Cla im s, January 2019

CLUSTERS ON NEED/DESIRE & CREDIBILITY IND

PRODUCT

PACKAGING

PROCESS

All Natura lHypoalle rgen ic

Toxic Free

Refillab leBiodegradab le

Made From Recycled

Eth ica lly MadeResponsib ly Sourced

Eco-friend lyCrue lty Free

ATTRIBUTECLUSTER

NEED / DESIREC

RED

IBIL

ITY

0

Aver

age

need

/des

ire

50 100 150 200 250 300 350 4000

50

100

150

200

250

300

Average cred ib ility

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SUSTAINABILITY MUST BE EMBEDDED IN KEY PRODUCT ATTRIBUTES

Source : Cincinnati Business Courie r, P&G launching liqu id-free clean ing products for hom e and body, 12/31/18

80% LESS WEIGHT70% LESS SPACE 75% FEWER EMISSIONS

Loopbringsbacktheold‘milkmanmodel’,whereproductsaredeliveredtoyourdoorat thesametimeemptiesarepickedup,washed,refilledandreadiedfordeliverytoanothercustomer.

“ “

17This artwork was created using Nielsen data.Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

KEEP SUSTAINABILITY AT THE CORE

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CONNECTED CONSUMER

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TECH BREAKS DOWN BOUNDARIES

AT HOME DERM PERSONALIZATION PERSONAL BEAUTY CONSULTANT

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ONLINE REPRESENTS BIG OPPORTUNITY

Sources: 1 Nie lsen Tota l E-Com m erce Measurem ent powered by Rakuten , 12 Months Ending 11/30/2018 2 Nie lsen Digita l Shopping Segm enta tion 2018

CONSIDERING TO BUY BEAUTY PRODUCTS

ONLINE IN THE FUTURE 2

32%

BROWSED AND ORDERED BEAUTY

PRODUCTS ONLINE 2

34%

BEAUTY ONLINE DOLLAR GROWTH 1

19%

ONLINE BEAUTY ORDERS MADE ON SUBSCRIPTION 2

4%

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“One thing I like about BirchBox is that I get to try

a lot of brands that I’ve never heard of, and I get to pick one item that will be

in my box for sure”

@prettybunny

CURATED BOXES START THE CONVERSATION & SUBSCRIPTIONS CAN LEAD TO ENGAGEMENT% OF ONLINE DOLLARS ON SUBSCRIPTION

Total Cpg

Total Beauty

Hair Removal

Bath & Body

Hair Care

Skin Care

Cosmetics Fragrance

8%4%

52%

7%

2% 1% 0% 0%

Nie lsen Tota l E-Com m erce Measurem ent powered by Rakuten , 12 Months Ending 11/30/2018

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CHOOSE YOUR CASE

CHOOSE YOUR SHADE

CHOOSE YOUR APPLICATOR

REUSABLE ENABLE PERSONALIZATION, ARE SUSTAINABLE & BUILD LOYALTY

Source : Nie lsen Tota l E-Com m erce Measurem ent Powered by Rakuten In te lligence , 12 Months Ending 11/30/2018

78% GROWTH

Dewy Fin ishSPF 40

Matte Fin ishSPF 50

23This artwork was created using Nielsen data.Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

REDUCE FRICTION& REACH CONSUMERS EVERYWHERE

24This artwork was created using Nielsen data.Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

WHAT’S IN PRODUCTS MATTERS

WEAVE SUSTAINABILITY INTO

PRODUCT FABRIC

REDUCE FRICTION TO ENGAGE CONSUMERS

BEAUTY LANDSCAPE CONTINUES EVOLUTION

This artwork was created using Nielsen data.Copyrigh t © 2019 The Nie lsen Com pany (US), LLC. Confidentia l and p roprie ta ry. Do not d istribu te . 190004

THE SCIENCE BEHIND WHAT’S NEXTTM