Personna & Spilo May 13, 2011

1. Personna & SpiloMay 13, 2011

2. Agenda • Hands-Free Razor and Blade Update •  Review Current Business to date • Purchases through April 2011 •  Un-forecasted Demand Impact on Production •  Procedure to Review Sales Trends • Review Current Projects •  Customer Class Overview •  Key Customers Review •  Promotion/Distribution Drivers Brainstorm Session •  Trade Shows – Cosmoprof Promotion

3. Hands-Free Razor Update • Randy to provide status of project

4. Year-to-Date Business Review

5. Year-to-Date Purchases – Personna

6. Year-to-Date Purchases - TBP

7. Forecast Review • Impact of un-forecasted demand on production • Procedure to review sales trends • Connect ASR demand planner with Spilo buyer • Discuss developing scheduled sales trend reviews

8. Sales Recap by Item as of 4/30/11for internal review only

9. Review by Item as of 4/30/11for internal review only • Double Edge Blades – 100 count • Initial sales have not met expectations • Awaiting peggable carton version to show to Sally B/S • Large redistributors have not taken the product – even with the 10% intro incentive • Steve to provide additional information • Hair Shaper Blades - Cartons • Some redistributors are down with many of them not ordering year-to-date • Some redistributors are up $5K - $20K • Pirouette Razor • Loss of Burmax business ($38K year-to-date) • Sally and BSG both down slightly • Flare Razor • Sally (-$7K), Jina Trading (-$3K), Beauty Alliance (-$3K) all down • BSG sales are up by $5K • Mini Shaper Blade – Carded • New customers – Jinny, A1 Trading, Big Man • Bowman and Bens are up • Double Edge Blades - Carded • Sally up 28% ($8K) ytd, Duluth Holdings up 33%

10. Sales Recap by Customer for internal review only

11. Customer Reviewfor internal review only • Sally up with Double Edge Blades still going strong • BSG is up due to addition of the Flare Razor • Williamsport (Shaper Blades), Burmax (Pirouette) and A-1 Trading (Shaper Blades) are down substantially

12. Current Project Review • Update Double Edge Blades to peggable package • Personna to provide die line so Spilo can create mock-ups • Spilo research results on Diane vs. Personna Hair Shaper Blades • Panel found no discernable difference between Personna and Diane • Personna Test Results • Personna Hair Shaper Blades vs. Diane • Vincent Hair Shaper and Double Edge Blades • Gravity-feed Display for Personna 5-pack • 5.5” Toolworx by Personna Economy Shear • Personna sourcing alternate vendors • 7.5” Toolworx by Personna Professional Shear • Bulk on order to arrive by 6/16

13. Sales/Marketing Discussion

14. Customer Class Overview • Each customer class has its unique requirements to do business • The following slides will review in detail those classes with the most opportunity for Personna growth • Focus for developing programs and promotions

15. Customer Class Sales (detail will not appear in final presentation – only % change)

16. Full Servicefor review only

17. OTC’S for internal review only

18. Redistributorfor internal review only

19. International • Per Susan Lewis, customers are stocking up when product is on promotion, causing their order cycles to change • The economy is still impacting her accounts

20. Customer Class Definitions

21. Sally Beauty Supply • They currently have over 2,500 stores • They have tremendous buying power • They sell approximately 65% to the consumer, 35% to a licensed professional • They offer three-tier pricing: • Professional • Club member • Consumer • They require lower than published prices on a regular basis, plus further discounts when a product is advertised • They make additional deductions from every purchase order for Advertising and Distribution, Product Development and Defective Allowance • Vendors are required to contribute to store plan-o-gram sets

22. Full Service Distributors • They sell only to the licensed professionals • Due to their buying power, they demand discounted (contract) prices year-round • They have both stores and distributor salon consultants (DSCs) who call on salons • The majority of Personna’s sales come from the stores • DSCs concentrate on their high volume wet lines • They publish bi-monthly deal flyers • Due to consolidation, there are fewer, larger Full Service Distributors

23. Redistributors • They re-sell product (business to business) to the smaller OTC’s • They generally have very large buying power • They require heavily discounted prices to be competitive • They work on very low margins, which puts downward pressure on prices • Korean Redistributor • They have the most impact on Personna’s business • They distribute a large variety of products (including fashion accessories, retail sundries, etc.) into OTC’s primarily serving the African American community • They are extremely price sensitive • They require a minimum 20% discount off distributor price • They are very savvy and know what’s happening in their business • This is a close community that shares information with each other • Other Redistributors • They sell into to general OTC market • Same price requirements • They are not as specialized in customer base • Vietnamese Redistributor not a factor in Personna’s business • Sells primarily into the large Vietnamese Nail Salon community • They generally prefer lower-end products

24. Over-the- Counter (OTC) Stores • OTC/Korean OTC/OTC Chain • They sell to the professional and the consumer • They typically buy in small quantities from the Spilo catalog and Hot Sheets • Generally pay published regular and deal prices • They may have one store or a chain of stores • The majority of the independent OTCs are found in the West Coast/Florida/NY/New Jersey • Korean OTC – Owned by Koreans, sell primarily to the African American consumer

25. Other Classes • Retail Accounts (Stores, Catalogs, Specialty) • This customer typically has strict compliance policies • Requires UPC’s & detailed carton marking • Specified delivery schedule commitments (can include advanced delivery notice) • Set pricing structure (contract pricing) • Adherence to fees/penalties for non-compliance • Catalogs • This has been a nice area of growth for Spilo • We have a couple of “Key” customers in this category • They primarily sell to the professional • There are a few that sell to the public • Internet Accounts • Small portion of our business but growing • They primarily sell to the public

26. Key Customers

27. Brainstorming Session • Discuss promotional opportunities including: • Instant Rebate Coupons • Distribution Drivers for new accounts • In-Ad Coupons for key distributors • Customer-specific promotion supported by trade publication advertising • Front-end display opportunities – buy the space near the counter • Side-wing/end cap opportunities • Account flyer advertising • Temporary price reduction • Permanent price reduction

28. Thank you!!!