Finance Assumptions Case data Year 1

Finance. Assumptions • Case data • Year 1 market share is expected to reach 2% Market share growth rate 80. 0% 70. 0% 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% Year 2 Year 3 Year 4 Year 5 • Market share growth rates slow down, starting from 70% in Year 2 to 31% in Year 5 due to the decreasing efficiency of advertising • Russian shampoo market is estimated at 183 mln. litres per year • Ukrainian shampoo market is estimated at 59 mln. litres per year • The sales structure of 250 ml and 400 ml Herbal Essences Shampoo bottles corresponds to the current market sales structure • Year 1 prices in Russia and Ukraine are equal (in $ terms) and are set at 5, 1$ /250 ml bottle and 6, 8$ / 400 ml bottle

Revenue structure Revenue FPLC Distributor Margin Customer Margin Marketing expenses Organizations costs Profit Tax Net Profit

Revenue structure Year 2 Year 1 Cost of Goods Sold Distributor Margin Customer Margin Marketing expenses Organization costs Corporate Tax Net Profit Net Revenue Year 3 Cost of Goods Sold Distributor Margin Customer Margin Marketing expenses Organization costs Corporate Tax Year 4 Net Profit Year 5 Net Revenue Cost of Goods Sold Distributor Margin Customer Margin Marketing expenses Organization costs Corporate Tax Net Profit Net Revenue

Cost structure Distributor Margin 36% Customer Margin 23% Other 29% Transportation cost 1% Warehousing cost 25% Marketing Expenses 6% Freight cost Taxes&Duties 1% 2% Manufacturing cost 5% Organization Costs 1%

Brand Financials Volume, 250 ml, mln pieces Russia Ukraine Volume, 400 ml, mln pieces Russia Ukraine Price, $/250 ml Russia Ukraine Price, $/400 ml Russia Ukraine Net sales revenue, $ mln Cost of Goods Sold, $ mln Gross Margin, $ mln Distributor Margin, $ mln Customer Margin, $ mln Marketing Expenses, $ mln Organization Costs, $ mln Profit, $ mln Net Profit, $ mln Year 1 Year 2 Year 3 Year 4 Year 5 6, 3 10, 8 16, 7 24, 2 31, 7 4, 8 1, 5 8, 2 2, 6 12, 6 4, 1 18, 3 5, 9 24, 0 7, 7 8, 1 13, 8 21, 5 31, 1 40, 7 6, 2 2, 0 5, 1 6, 8 10, 5 3, 4 4, 9 5, 1 6, 5 6, 7 16, 2 5, 2 5, 0 5, 3 6, 7 7, 1 23, 5 7, 6 5, 1 5, 5 6, 8 7, 3 30, 8 9, 9 5, 5 5, 9 7, 4 7, 9 73, 8 122, 0 195, 6 289, 9 409, 7 12, 1 20, 2 31, 3 45, 4 59, 4 61, 7 101, 8 164, 3 244, 5 350, 3 12, 5 20, 7 33, 3 49, 3 69, 6 7, 9 13, 1 21, 0 31, 1 43, 9 2, 0 2, 0 0, 2 0, 2 39, 1 25, 41 65, 8 42, 77 107, 9 70, 12 161, 9 105, 25 234, 5 152, 44