BRANDSTORM 2012

Who we are
DIFFERENT
A TRULY UNIQUE BRAND IN THE LOREAL PORTFOLIO - The original natural & ethical beauty brand - A worldwide retail environment, providing direct connection with customers, supported by our own assisted sales force - Covering all beauty segments with more than 1200 products NATURES WAY, AN ALTERNATIVE VISION OF BEAUTY - Nature-powered innovations, unique textures, minimum impact on the environment, no images retouching - The right balance between pleasure & respect: 100% vegetarian, never tested on animal, CFT ingredients, responsibly sourced over the world... 5 CORES VALUES SINCE 1976

NATURAL

VALUESDRIVEN
The only brand that manages to change laws through long-standing campaigning!
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Agenda
I. Our heritage

II. Today: what we stand for III. Retail: a specific business model IV. Our product categories
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I.
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Making history: key milestones

1976 1st ever natural store opened in Brighton UK 1986 Save the Whale 1st major campaign with Greenpeace UK Community Fair Trade launched under original title of Trade Not Aid 1990 The Body Shop Foundation launched 1998 Launch of our line of hemp skincare products Debut of our self-esteem / campaign featuring Ruby 2000 1st Human Rights Awards 2008 1st store in India

1978 1st overseas franchise in Brussels

2009 The Body Shop receives RSPCA* 'Lifetime Achievement Award

1981 White Musk, 1st cruelty free musk

1992 Market 1st Body Butter

2006 The Body Shop acquired and joins The LOreal Group

2010 Celebrate 20 years in Japan and 30 years in Canada

1984 Listed on the London Stock Exchange

1997 1st international cosmetics company to sign up to the Humane Cosmetics Standards

2007 Death of Anita Roddick, our fonder

2011 Stop Sex trafficking, our biggest campaign: over > 6M signatures

* Royal Society for Protection of Cruelty against Animals

STORY TO CONTINUE

Anita Roddick, 1 in a zillion

A unique personality: Multi-award winner & Dame of the British Empire
MAVERICK FAMOUS ACTIVIST & AGITATOR A BELIEVER IN THE IMPOSSIBLE MADE POSITIVELY POSSIBLE EXPLOSIVE ENERGY NEVER TAKE NO FOR AN ANSWER

A singular vision: business as unusual - a force for good & change Traveled the world looking for natural ingredients & traditional beauty recipes

Anitas Mission Statement

Dedicate our business to the pursuit of social and environmental changes. Creatively balance the financial and human needs of our stakeholders : employees, customers, franchisees, suppliers and shareholders. Courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising the future. Meaningfully contribute to local, national and international communities in which we trade by adopting a code of conduct which ensures care, honesty, fairness and respect. Passionately campaign for the protection of the environment to defend human rights, and against animal testing within the cosmetic industry. Tirelessly work to narrow the gap between principle and practice, whilst making fun, passion and care part of our daily lives.
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A uniquely strong heritage

A visionary founder Established natural positioning - nature inspired since our origins!

Pioneered ethical business practice

A large portfolio (> 1200 products) with star destination ones

II.
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Our stake on beauty

Simply stated, beauty means vitality, energy - personality traits that have more to do with an individuals character than his or her age or some idealized arrangement of physical features Anita Roddick

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5 core values
At the heart of everything we do since 1976

Pioneered ethical business practice Campaign actively and champion causes closed to our heart The Body Shop Foundation since 1990
> supported more than 2,500 projects to the tune of 18.3M

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 Leading cosmetics company in campaigning to end animal testing At the forefront of research on non-animal alternatives New communications on 100% vegetarian status
2004 ban of animal testing for finished cosmetic products 2009 for ingredients

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 Our strength: pioneered the use of fair trade ingredients in the beauty industry in 1987 Great stories - ingredients: origins, quality, performance - impact to the communities - ...

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 100% committed to limit our impact on the planet Assure customers the origins of our natural ingredients and sustainable sources Set new standards with our eco-conscious products - 100% biodegradable & minimized packaging - & 1st to market 100% recycled PET bottles Move from carbon neutral to absolute CO2 reductions of 50%

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 We are the pioneer of self-esteem in beauty We strive to use imagery which doesnt play on women's insecurities We never conformed to beauty industry stereotypes and have always embraced diversity

We will never alter digitally alter body shapes or retouch models

Ruby, our rubenesque selfesteem icon launched in 1998 "There are 3 billion women who don't look like supermodels and only 8 who do"

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 Activist since 1986 to speak out against injustice and create positive change

Create positive change in collaboration with NGOs and grassroots organisations

Cutting edge initiatives to support the campaigns and make our petitions history
Our biggest campaign ever with over 6.6 millions signatures !
Huge support from influencers and celebrities

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TO: Discerning women everywhere who wish to experiment in self-expression with a beauty brand they can really trust THE BODY SHOP IS: The uniquely original, natural and ethical beauty company THAT: Offers a world of ingenious products inspired by nature, that perform and delight the senses

BECAUSE: We use select natural ingredients that are ethically traded from indigenous sources ; and because we listen to our customers and speak up on issues they care about
SO THAT: They can feel confident about freely expressing (and even indulging) themselves, while helping to make the world a better place.

III.

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Our global reach in 2010

2,605 stores

Retail sales of 1.066 Bn

Total transactions 58,8 M

4M of loyalist customers (3%)

65 countries & territories worldwide - EMEA: 1328 stores - Asia: 859 - Americas: 418

8,800 employees* - Store: 7,540 - Office / warehouse: 1,260

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* Company markets

A worldwide store network

The only truly worldwide natural player
The largest player in the single-brand retail store based sector of the beauty industry A strong franchise network:

Company-owned markets: 17 countries / 1,088 stores

Franchise markets: 49 countries / 1,517 stores

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A direct connexion to customers

Stores, the single biggest point of contact with the brand: - n1 purchase driver (62%)

Friendly and professional service - sales associate <> n1 positive influencer (30%) - the best way to experiment our products, with great advices

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In-store communications

Brand Image

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In-store communications

Values

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In-store communications

Values

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In-store communications

Values

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In-store communications

Values

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In-store communications

Values

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In-store communications

Overview

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IV.
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5 main categories
2010*

Body Care Skincare Gifting Make-Up Fragrance Mens Body Wash Haircare Accessories
* Retail Sales in value

25% 17% 11% 13% 13% 3% 5% 3% 4%

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Product Portfolio
ICONIC INNOVATION

Bodycare Body butters

Skincare Tea tree oil

Bodycare Body Butter Duo

Bodycare Earth Lovers

Skincare Vitamin E Moisture Cream

Bodycare Hemp Hand Protector

Make-up Limited Edition Brush With Fashion

Skincare Natrulift 44

Top 10 worldwide products

TOP 10 = 8.5% of total TBS sales value in 2010* Rank
1 2 3 4 5 6 7 8 9 10

Product
HAND PROTECTOR HEMP BODY BUTTER SHEA

BODY BUTTER COCONUT BODY BUTTER MORINGA MOISTURE CREAM VITAMIN E

BODY BUTTER OLIVE OIL TEA TREE BODY BUTTER STRAWBERRY BODY BUTTER MANGO EDT JAPANESE CHERRY BLOSSOM
Top 10 Global products / Datas for 2010

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Nature, a given
HIGH EFFICACY Potent nature: tea tree, hemp GLOBAL SOURCING From the 4 corners of the globe Harnessed by our CFT local artisans UNIQUE TEXTURES Highly sensorial, raw, debanalized

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Body Butter Duo

Launched Q2.2011 [Bodycare category] Range: Vanilla, Sweet Pea, Floral Acai, Macadamia NEW INNOVATIVE BODY BUTTER DUO: TWO LEVELS OF MOISTURISATION IN ONE CONVENIENT PRODUCT 2 TEXTURES: ONE FOR NORMAL SKIN AREAS, ONE FOR DRY SKIN AREAS BREAKTHROUGH 360 SUPPORT
STORE IMPACT, MEDIA COVERAGE, CELEBRITY ENDORSEMENT Did you know? FIRST TO MARKET BODY BUTTER IN 1992 FULL OF COMMUNITY FAIR TRADE INGREDIENTS
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Earth Lovers
Launched Q1 2011 [Bath Category] / 7 shower gels range:
Apricot & Basil, Watermelon & Eucalyptus, Pear & Lemongrass, Fig & Rosemary, Lemon & Thyme, Cucumber & Mint, Unfragranced

100% BIODEGRADABLE FORMULA 100% RECYCLED & RECYCLABLE BOTTLE 2ND PRODUCT RANGE LAUNCHED HOLDING THE NEW ECO-CONSCIOUS LABEL MOISTURISING CFT ALOE VERA SULPHATES, COLORANTS & PARABENS FREE ORIGINAL IN STORE & ON STREET THEATRALISATION
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Brush with Fashion

Launched Q1 2011 [Make-up category] Range: Eye Palettes, Face Illuminator,
Cheek Tint, Hi Shine Gloss, Mini Brush Kit

SUBSTAINABLE CRUELTY-FREE LIMITED-EDITION COLLECTION INSPIRED BY CATWALK 1st CO-BRANDING WITH LONDON COLLEGE OF FASHION
DESIGNED BY ONE OF THEIR STUDENT

SUPPORTED BY FASHION DESIGNER, WILLIAM TEMPEST!

AMAZING PR COVERAGE WORLDWIDE
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Natrulift
Launched Q3 2010 [Skincare category] UPLIFTING ANTI-AGING RANGE:
Facial wash, Cream cleanser, Toner, Serum, Day cream, Night Cream

WITH CFT POMEGRANATE EXTRACT, OUR NATURAL ALTERNATIVE TO RETINOL PROMOTE SELF-ESTEEM
Its not about turning back the clock or promising some magical elixir of youth. Its an acknowledgement of the fact that as we age our skin has different needs. Anita Roddick

IN-STORE DEMONSTRATION BY MOLLY WALSH, CELEBRITY ESTHETICIAN

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TO BE CONTINUED...

 2011 The Body Shop International Plc. All rights reserved. No reproduction without prior permission of the owner. A registered trademark of The Body Shop International Plc. trademark of The Body Shop International Plc.