Management Leadership Audit

1. Management Leadership Audit June 22, 2009

2. Site Overview Larry Lebel

3. Overview of Solon Manufacturing SKU’s 2,400 Formulas 350 Formats 203 Packaging Lines 22 Processing Vessels 10 Contract-Manufacturers 15 Employees 302 (266 Perm) 2009 Units 100 M In-House 45 M Contract Manufacturing Average Fill Weight 400 ml

4. Brands We Serve

5. Technical Families • Shampoos – 30M • Conditioners – 51M • Styling – 18M • Aerosols – 32M • Hot Fills – 14M Partners in Excellence

6. Solon Plant and Miller Warehouse Partners in Excellence

7. Solon Plant Partners in Excellence

8. Site History • 1980 Arnie Miller Founded Matrix Essentials, Inc. • 1994 Bristol Myers Squibb Acquires Matrix Essentials, Inc. • 2000 L’Oreal Acquires Matrix Essentials, Inc. • Creation of PPD Haircare Site • 2002 L’Oreal Acquires ARTec • 2003 ARTec is absorbed into Solon portfolio • 2003 Professional Haircolor transitions to Montreal and Perms transfer to Solon • 2004 Redken Haircare transfers from Florence • 2004 Mizani Haircare transfers to Solon • 2007 Perms transition to Montreal, Hot Fills transition to Solon from Florence, Production of Shu Umera begins production • 2008 Production of Pureology Begins Partners in Excellence

9. Vision 2008 2006 Layout UP1 UP2

10. Vision 2008 ProjectCurrent Layout

11. Vision 2008 – Final Stage • UP Merger Complete • Perms Transfer to MTL Complete • Warehouse Consolidation Complete • New Entrance Complete • Hot Fills Transfer Complete • Pre-Weigh Relocation – 2009 Partners in Excellence

12. 2008/2009 Accomplishments • OSHA VPP Star Status • 947 days since last lost time accident • 2MM man hours without lost time accident • ISO 9001 • Successful ISIS Launch • Vision 2008 Final Stage • Pureology Brand Transition to Solon • Improved Environmental Indicators • Ecocert Certification Partners in Excellence

13. Solon 2009 Vision/Challenges • Back to Basics • Safety: Continued Improvement of Culture • Quality: New Quality System/Scoop • Productivity: + 5 Points in OEE • Cost: Manage Costs in a reduced Unit Environment • Execute with Excellence • Optimize the Global Supply Chain • Continued reduction of in-plant inventory • Play a lead role in FG inventory reduction • Low Cost Styling Producer • Solon/Streetsboro Synergies • Employer of Choice Partners in Excellence

14. 2009 Solon Plant Objectives Partners in Excellence

15. Safety Performance & Action Plan

16. 0 5 5 2 9 2008 Safety Performance A total of 5 restricted duty accidents resulted in an ENLARGED RATE = 7.5. • Accident Summary • 2 Slips and falls in parking lot, weather related. • Mechanic injury during troubleshooting, procedure not respected. • Mechanic back injury, osteoporosis. • Trip / Fall on packaging line due to congestion.

17. Safety Pyramid 2009 Actual → 2009 Goals 0 0 0 2 3 3 3 7 16 17 Assume 500k Man Hours June 17 YTD Lost Time 2 = 4.0 3 = 6.0 RestrictedDuty Recordable First Aid Near Miss L’Oreal Frequency Rate = 18 19

18. Incident Analysis 2008 vs. 2009 YTD Root Cause (% of Total)

19. Incident Analysis 2008 vs. 2009 YTD Per Shift (% of Total)

20. Incident Analysis 2008 vs. 2009 YTD Per Department(% of Total)

21. 2009 Improvement Plan • Compliance - Update physical layout and operational procedures to comply with ORS001 guidelines. • Activities not requiring funding moving forward. 2010 implementation budget in process of development. • Teams being developed for 3rd quarter plan refinement and implementation plan. • Investigation of licensing options for 2010. • Training - Conduct CONA developed "Fundamental SH&E" training for all supervisors, managers and management team members. • SHE Steering committees trained by CONA. – Complete • Planned 3Q training for remaining supervisors and above. • Auditing - Revise auditing program to increase involvement and to include the following: • A revised version of Mesur in process to include BBS for department heads and managers. July Completion.

22. 2009 Improvement Plan (cont.) • Roll out of ORS 002 – SIO’s (Safety Improvement Opportunities) will be tracked and reported to CONA monthly. • Hearing Conservation - Elimination of hearing protection within the packaging cells. • Conduct General SHAP for the site. Planned for 3Q. • Added emphasis on “transparency” through out the site. • Increased communication of all incidents with discussion points for review in team meetings.

23. Departmental Activities UP – Daniel Roy HR – Pete Ambrosone IQ – Rachel Jarvis Flows – Max Macesich Logistics – Marne Cario

24. UP safety initiatives • House keeping and safety contest • Between packaging 2 cells, processing and preweigh • Monthly audit perform by UP management • Monthly meeting in processing and packaging team • Review all results with a safety point (results and review of the previous month incident and a monthly safety topic

25. UP safety initiatives • Monthly audit of production area by supervisors • Monthly safety meeting • Rotate to cover every shift • Hourly people involvement • UP safety improvement action plan • Noise reduction on 2 lines • Line 11 from 86.3db to 82.3db • Line 27 from 85.2db to 83.1db

26. UP safety initiatives • Pre-weigh relocation • Improving organization of equipment • Reduction of walkways crossing tow motor aisles • Monthly processing one point lesson on safety

27. Human Resources and Training • HR Staff Meeting Safety Reviews • SHE Monthly Audits • SHE Training Communications • SHE On-Boarding Training for new hires • Maintain the SHE Training Calendar • Manage the development and delivery of SHE Training materials • Maintain the SHE Training Documentation System

28. Human Resources and Training (Cont.) • Issue SHE Training Tracking and Follow-up Reports • Issue Monthly SHE Training attainment report • Review all safety incidents and determine retraining, disciplinary actions • Oversee the Return to Work Program • Conduct SHE related employee physical testing: Audiometrics, Pulmonary Function, Vision Testing, PIT Operator • Incident Investigation input and remediation training

29. Industrial Quality • 2009 Safety Initiatives • Focus groups meet monthly – each participant researches and presents work related safety topic • Safe Lifting, Ergonomics, MSDS, Trips & Falls, Forklift Safety, Lab Safety, Chemical Hygiene, Nitrogen Asphyxiation, Dermal Exposure • Designated individuals to perform internal safety audits • Chemical Exposure Monitoring • Yearly review/training of chemical hygiene program

30. Sub-contracting and Flows • Population: 7 office, 13 hourly • Rigorous forklift reassessment every 3 years • Immediate response to all SOP training needs • Monthly safety meetings • On-going safety action items tracking list • Accountability / report back to staff on progress against safety items • Monthly departmental safety audits • SHAP for major changes • Immediate communication of safety incidents • “Open door” policy on near-miss and suggestions

31. Industrial Logistics • Population: 13 office employees • Safety is a topic for weekly staff meeting • Metrics definition • YTD performance for the site • Recent incidents/accidents • Analysis of similar risks/situations in our immediate environment • Dangerous/safe behaviors • Suggestions for improvements • Auto-criticism • Time-out in case of Restricted duty or Lost Time accident (immediately following event)