BRAND PRESENTATION COMPANY HIGHLIGHTS: AHAVA LABORATORIES

• Created in 1988 by 3 kibbutzes from the Dead Sea

• The only company located on Dead Sea shores

• Fully owned production facilities at the Dead Sea

• DSL is the creator of the AHAVA Brand

• In-house R&D laboratory

• Has the legal right to extract minerals from the Dead Sea

• European headquarters in Wiesbaden, Germany

• North American headquarters located in NYC, USA

• Sold in 30 countries at department stores, pharmacies, Drug stores, ’s, specialty stores, perfumeries, Duty Free and travel retail and more

2 KEY PILLARS OF OUR

1. OUR DEAD SEA HERITAGE

• For thousands of years, the Dead Sea has attracted visitors from around the world, searching to renew their skin’s vitality and youthfulness with the mineral-rich deposits and salt waters along its shores.

• Its’ high mineral content, low concentrations of pollens, allergens, and UV rays and high atmospheric pressure makes it an epicenter for health research and treatment.

• Allows human body to literally float on its surface.

• 34% minerals: Vital to the skin’s healthy functions Helps cellular renewal for a youthful looking skin Facilitates cell-to-cell communication Helps nourish skin’s top layers

• Our earth is the Dead Sea. We use the 4 elements of our earth to create innovative products to stop time: Dead Sea Mud, Salt, Water and Plants

• All of our products include a unique blend of Dead Sea minerals called the OsmoterTM

3 KEY PILLARS OF OUR FOUNDATION

1. OUR DEAD SEA HERITAGE

OSMOTERTM - Unique To AHAVA

• Osmoter™ = A perfectly-balanced concentrate of Dead Sea minerals that effectively replenishes, rehydrates and recharges the skin

• Osmoter™ = AHAVA

• Osmoter™ = the essence of Dead Sea power

• Osmoter™ = the best mineral composition for promoting youth

4 KEY PILLARS OF OUR FOUNDATION

1. OUR DEAD SEA HERITAGE

ELEMENTAL BEAUTY FROM THE DEAD SEA

Science and nature should work in balance. Through decades of research in our Laboratories on the Dead Sea shores, our scientists have harnessed the nourishing properties of Dead Sea minerals– the highest concentration of minerals in the world, to create The OsmoterTM, found in every AHAVA product. This natural, clinically-proven mineral complex elevates your skin’s moisture level and restores your natural skin balance. The power of science, combined with our understanding of the elements of nature, brings you a youthful radiance, lit from within.

5 KEY PILLARS OF OUR FOUNDATION

2. OUR R&D- PATENTS

• 1989 - Osmoter™ (AHAVA exclusive/natural ingredient)

• 1996 - Liquid Salt (new technology)

• 1998 - 3D™ Complex (smoothing face care complex)

• 2000 - Dermud™ /leave on mud (AHAVA exclusive skincare concept)

• 2011 - Extreme™ Complex (new anti-aging collection)

• 2012 - Urban™ Complex (new UV broad spectrum tec.)

• 2013 – Dead Sea Osmoter Concentrate™ (Exclusive concentrated Osmoter™ cellular technology)

• 2015 - Dead Sea Metabiotics™ (Positive stress technology for mature skin)

• 2016 - Crystal Osmoter™ (Exclusive mineral delivery system)

6 KEY PILLARS OF OUR FOUNDATION

3. AHAVA AND THE ENVIRONMENT

• Manufactures consciously (green chart, ISO14000)

• Preserves the Dead Sea’s ecological balance

• Implements the Water Return Process

• Complies with numerous international quality standards including ISO 9001: Quality Management

ISO 22716: Cosmetics Good Manufacturing Practice (GMP) ISO 14001: Environmental Management OHSAS 18001: Health & Safety

7 KEY PILLARS OF OUR FOUNDATION

3. AHAVA AND THE ENVIRONMENT CORPORATE SOCIAL RESPONSIBILITY Our Corporate Social Responsibility Statement

At AHAVA Dead Sea Laboratories, we focus our energy, resources, heart and love on creating skin-friendly, AHAVA environment-friendly products and experiences that create LOVES Nature happiness, and on initiatives that strengthen communities, protect the Dead Sea Region and its natural environment, AHAVA and advance consumer wellness, empowerment, and AHAVA LOVES education. LOVES Giving We owe everything to nature, and dedicate a special, long-term commitment to protect the Dead Sea Region AHAVA for generations to come. We strive to not just be a good LOVES Education neighbor in the region, but also a good corporate citizen, building stronger, better, sustainable communities in the places we conduct business.

8 KEY PILLARS OF OUR FOUNDATION

4. SKIN FRIENDLY FORMULATIONS

• All products are Paraben free

• All Cleansing products are SLS/SLES free

• No petroleum, harsh synthetic ingredients, GMOs

• All products are allergy tested and approved for sensitive skin

• PETA certification- cruelty free and vegan

• Vegan.co.il certification

• All packages are recyclable

• All products contain OsmoterTM

9 AHAVA IS THE NEW NATURAL

• AHAVA is a niche brand growing significantly in the massive global skincare market

• Even though we compete with all prestige global skincare brands, we have a unique proposition – we are the New Natural skincare brand

The Old Natural The New Natural Does not contain artificial ingredients X X Does not contain harmful ingredients X X Has different natural ingredients inside X X Is good for the environment X X Organic, BIO, VEGAN X X The natural ingredients are collected from a real source X X The natural ingredients have mythical/authentic stories X The source has an authentic real story X The products are thalking about seasons and natural rythms such as difference in day and night X

10 AHAVA IS THE NEW NATURAL

Natural products are considered less ‘High End’ in general, but as the US market shows us, natural products are moving in the direction of being perceived as such, based on shopping channel.

Market Mapping – USA (example)

Department Stores EsteeLauder ∙ ∙ Lancome ∙ ∙

∙

High End ∙

∙ L'Occitane ∙ AHAVA OwnStore/ Website

Natural

∙ Olay ∙

Drugstore

Scientific Natural 11 AHAVA IS THE NEW NATURAL

Perceptions of AHAVA place it as an opposite to the purely scientific brands and close together with the new natural brands.

Market Mapping - Overall

∙ Caudalie ∙ Estee Lauder ∙ Lancome ∙ Neutrogena ∙ Origins ∙ Shiseido ∙ Clarins ∙ Korres ∙ La Roche Posay ∙ Clinique ∙ Anne Marie Bourlind ∙ AHAVA ∙ Vichy ∙ Olay ∙ Marbert ∙ L'Occitane ∙ Nuxe

∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙

Laboratory Natural

12 MAIN MARKETS

• A leading skincare brand. Distributed in AHAVA boutiques, Super-Pharm, Israel’s leading drugstore chain, and Duty Free stores, corporate channel

• USA Strong presence in Department Stores and specialty stores: ULTA, Nordstrom, Lord & Taylor, ’s, Costco, Beauty Brands; .com retailers, independent perfumeries, and ahavaus.com

• EUROPE Distributed in selective perfumeries and department store chains (, Muller, Douglas, Karstadt, Coin) and in the professional market (Spa institutes, beauty salons and pharmacies)

• ASIA Sold in AHAVA boutiques in Singapore and Hong Kong, China, Taiwan and South Korea

13 AHAVA CONCEPT STORES

• 19 AHAVA FLAGSHIP STORES AROUND THE WORLD: – Jerusalem, Tel Aviv, Dead Sea, Acre – Berlin – Singapore – Budapest

• CONCEPT An “AHAVA Home” to translate the Brand’s unique benefits into an in-store experience, combining: – learning about the powers of Dead Sea minerals – having sensorial experience of the Dead Sea essence

• MAIN OBJECTIVE – Serves as a marketing platform to support brand awareness and image in major cities across the world

14 AHAVA CONCEPT STORES

AHAVA FLAGSHIP – TEL AVIV

15 AHAVA CONCEPT STORES

AHAVA STORE - BERLIN

16 AHAVA CONCEPT STORES

AHAVA ESPACE - SINGAPORE

17 AHAVA CONCEPT STORES

AHAVA BEAUTY CAPSULE – BUDAPEST

18 AHAVA CONCEPT STORES

AHAVA – VISITOR’S CENTER

19 AHAVA CONCEPT STORES

AHAVA INSTALLATION HANKYU, TAIWAN

20 AHAVA CONCEPT STORES

QUMRAN STORE -ISRAEL

21 AHAVA CONCEPT STORES

JAMES RICHARDSON DUTY FREE, ISRAEL

22 AHAVA CONCEPT STORES

AHAVA NA- KOHL’S AND ULTA

23 AHAVA CONCEPT STORES

AHAVA GERMANY

24 AHAVA CONCEPT STORES

AHAVA CHINA K11 STORE, SHANGHAI

25 AHAVA MAJOR RETAILERS AROUND THE GLOBE

26 AHAVA CORE AHAVA CORE FACE

TIME TO CLEAR Cleansing & Purifying

TIME TO HYDRATE Essential Hydration DEAD SEA OSMOTER™ MINERAL RADIANCE Protect, energize and Radiance SUPERSERUMS TIME TO SMOOTH AGE CONTROL - First signs of aging & Even Tone, Brightening EXTREME - Firming and Wrinkle Youth Boosting TIME TO REVITALIZE Superserums Reduction Face and Eyes Promotes Elasticity, Lifting & BEAUTY BEFORE AGE Firming

TIME TO TREAT Comfort & Renewal

TIME TO ENERGIZE For Men

28 AHAVA CORE FACE

• 34 SKUs

• Comprehensive line of care products

• The most basic line addresses essential moisture and protection while the most advanced line targets anti-aging concerns

• Price range - 18€ to 70€

29 AHAVA CORE BODY – BUILT ON THE 4 ELEMENTS

Dead Sea Water Dead Sea Mud Dead Sea Salt Dead Sea Plants

Hydrating Water Soothing Mud Invigorating Salt Nourishing Plants essential daily body for dry, very dry, & enhances skin’s Anti-aging, skin moisture sensitive skin softness pampering

30 AHAVA CORE BODY

• 42 SKUs

• Emphasis on the elements from the Dead Sea with a focus on moisturizing, skin-smoothing benefits

• Price range - 8€ to 40€

31 AHAVA SUPER-PREMIUM AHAVA SUPER-PREMIUM

DIAMOND GLOW Day cream, Night Cream, Mud Mask and Face Serum

33 CLINERAL CLINERAL

Clineral skincare products combine the proven therapeutic virtues of the Dead Sea minerals, mud, and selected plant extracts, to promote skin’s essential functions and alleviate symptoms related to specific chronic skin disorders : Psoriasis, Atopic dermatitis, Eczema, Seborrhea, Diabetic foot, and intolerant skin.

35 CLINERAL

Seborrheic Diabetes skin Eczema Atopic Dermatitis Psoriasis Intolerant skin Dermatitis related problems Facial cream Foot cream Hand cream Body cream Body cream Protective moisturizing cream SPF50 Facial cleansing Gel Foot scrub Body cleansing Joint skin cream Gentle cleansing gel foam Bath oil Calming moisturizing cream Scalp mask

36 CLINERAL

PSO - FOR PSORIATIC PRONE SKIN

• Ideal for reducing symptoms during mild to moderate flare ups

• Helps in reducing scaling, extreme dryness and redness. Contributes to skin’s immediate comfort and smoothness

• Targets the common disordered areas: joints (knees, wrists, elbows) and scalp

• Includes 4 products: PSO Body Cream – 200 ml PSO Joint Skin Cream – 75ml PSO Scalp Shampoo – 250 ml PSO Cream Scalp Mask – 200ml

37 CLINERAL

TOPIC - FOR ATOPIC DERMATITIS PRONE SKIN

• Ideal Ideal for reducing symptoms during mild to moderate flare ups, and for ongoing prevention especially with children

• Calms irritation, reduces redness ,and dryness

• Immediate effective, recommended to use on children*

• Includes 3 products: TOPIC Body Cream - 200ml TOPIC Shower & Bath Oil – 250ml TOPIC Body Cleansing Foam – 200ml

* tested in the children “Shnaider “Hospital on children age 2 -10 years, with mild to moderate AD during 12 weeks. 38 CLINERAL

SEBO - FOR SEBORRHEA PRONE SKIN

• Ideal for reducing symptoms during mild to moderate flare ups

• Immediately helps in reducing and calming of redness and irritation in the seborrhea problematic face areas (nose, eyebrows, forehead)

• A pleasurable facial skincare choice. Provides soothing, comfortable and refreshing daily facial care regimen

• Includes 2 products: SEBO Facial Cleansing Gel – 75ml SEBO Facial Balm Cream – 50 ml

39 CLINERAL

D-MEDIC - FOR DIABETIC- RELATED SKIN DISORDERS

• Ideal as ongoing prevention, for diabetic patients prone to feet disordered symptoms. Not for use on open wounds or ulcers

• Helps in restoring feet comfort and softness redness

• Reduces feet dryness, roughness & cracks

• Includes 2 products: D-MEDIC Foot Gel Scrub – 100ml D-MEDIC Foot Cream – 125ml

40 CLINERAL

X-ZEM - FOR CONTACT DERMATITIS (ECZEMA) PRONE SKIN

• Ideal Ideal for reducing symptoms during mild to moderate flare ups

• Calms eczema irritations and itching sensations

• Smoothes and reduces dry skin flakes on hands

• Includes 1 product: X-ZEM Hand Cream– 125ml

41 CLINERAL

SKINPRO - FOR INTOLERANT AND VERY SENSITIVE SKIN

• Not a skin disorder but rather a skin condition \concern

• Common for over 50% of adults

• Addresses wide number of costumers

• Includes 3 products: SPF 50 Protective Day Cream – 50ml Calming Moisturizing Cream – 50ml Gentle Cleansing Gel – 75ml

42 PRO LINE PRO LINE

From the World’s Ultimate Natural Spa to Urban Spa. Deliver an authentic Dead Sea experience & orientation & mineral expertise. PROFESSIONAL Every treatment is designed to offer the unique skincare treatment Dead Sea experience, based on the exclusive expertise of AHAVA’s mineral know how and the therapeutic natural power of the Dead Sea elements to skin. Multi benefit treatments, targeting overall skin concerns that can fit all - every age, skin type and gender. All treatments are strongly linked to promoting retail products sales. The 2017 Treatment Menu: 5 for woman, 2 Facials for men, 4 Body treatments, Hand & Foot treatments, Recommended face massage

44 PRO LINE

CABIN PRODUCTS

FACE BODY PU Hydration Cream Mask 250m PU Mineral Foot Cream 250ml PU Facial Mud Exfoliator 250m PU Mineral Hand Cream 250m PU Purifying Mud Mask 250m PU Massage Oil 500ml PU Facial Massage Cream 250ml PU Precious Desert Oil 500ml PU All in one Toning 500ml PU Liquid Dead Sea Salt 500ml PU Mineral Toning Water 500ml PU Mineral Body 500ml PU Dead Sea Osmoter™ Face Concentrate 100ml PU Natural Dead Sea Mud 4kg PU Dead Sea Osmoter™ Eye Concentrate 50ml PU Natural Dead Sea Mud 50kg PU Crystal Osmoter™ Concentrate 100ml PU Natural Dead Sea Crystals 25kg PU Skin Comforting Essence 30ml PU Smoothing Body Exfoliator 1kg – April 2017 PU Brightening & Renewal Serum 100ml PU Butter Salt Scrub 1kg – TBD April 2017 PU Facial Renewal Gel 250ml PU Radiance & Lifting Mask 250ml PU Mineral Detox Mud Mask – April 2017 PU Dunaliella Reviving Mask* – Oct.2017 PU Multi benefit Pee*l – Oct.2017

* Tentative name, product still in development stage. 45 PRO LINE

FACE TREATMENTS

Absolute Skin Renewal 60 min Mineral Osmoter™ Recharge 60 min A 3 step skin renewal treatment (multi benefit Long-lasting, deep hydrating facial (targets concerns) includes deep cleansing, degreasing and Dehydration in all skin types) Based on AHAVA’s new mineral spotless peel bar to challenge all skin exclusive Osmoter™ concentrations, to boost and faults. Every renewal step in this treatment encourages revive even the most dehydrated complexions. flawless, ageless skin and perfect radiant tone. Pure delight!

Mineral Detox 60 min Mineral Uplift 60 min An age prevention, antioxidant & anti-pollution facial. This turn-back-time treatment targets skin’s suitable for all skin types. Targets skin’s daily challenges smoothness, fine lines, wrinkles and elasticity such as pollutants, free radical, dirt… that generates includes the one an only peel-off reviving Dead Sea premature aging, dull, fatigue complexation. A designed Dunaliella alga mask and a warm Crystal Osmoter™ Detox mud mask reinforces skin’s natural defense to firm-a–lift massage to help uncover your skin’s youth. combat first signs of ageing caused by these life stressors.

Mineral Relief 60 min This treatment efficiently treats problems associated with relatively sensitive skin & skin disorders: roughness, redness, cracking, irritations. The exclusive natural essence integrated in the treatment is concentrated with humectants and calming botanical extracts to provide immediate skin relief and strengthen the week skin barrier

46 PRO LINE

FACE TREATMENTS FOR MEN

Mineral Energy 60 min A comprehensive and pampering treatment, including deep pore cleansing, detox and an anti stress massage. Intense rehydrating boost, based on AHAVA’s powerful botanical anti oxidant ‘G Force’ complex reinforcing & compensating the skin from constant daily stressors.

Mineral Age Control 60 min A pro youth facial, restoring skin’s functions to treat and prevent premature aging signs. exposed to daily extreme aging environment. The skin is provides with a smoother more even tone surface and a definitively younger complexation.

47 PRO LINE

BODY TREATMENTS

Body Contouring –Slimming treatment 90 min Mineral & Stone (salt) Rejuvenation Massage 90 min Based on the powerful natural Dead Sea natural A balancing whole-body treatment that stimulates elements. The synergy between the pure liquid circulation and offers complete destress and Dead Sea gel massage & Dead Sea mud wrap will muscle relaxation. Deeply soothes and calms body, encourage inch loss, leaving the skin silky smooth, skin and mind. giving visible results that will encourage you to continue the slimming process.

Mineral Balance Back Treatment 50 min Since the spine carries the body, and serves as its nerve base and center, this treatment is targeting to ease tension of the two groups of connecting muscles that are located on either sides of the spine, using calming mineral & plant & mud based products along with deep tissue massage.

Mineral & Botanic Uplifting Body Treatment 60 min An amazing calming & pampering treatment based on botanical richness combined with the natural reviving power of the Dead Sea minerals to go with delicate pressure body edges (polar) technique for the relief of the extremities (head, neck, hands & feet). Includes an abrasive smoothing body exfoliator based on natural granules from Grape seeds, Argan shells, Date seeds. The one-of-a kind texture melts as it is massaged on skin generating sensual warmth, accelerating blood circulation to help strengthen and firm the skin. Concluded with a body massage, based on delightful combination of plants that grow in the Judean Desert - legendary Myrrh oil, Palm desert oil (Egyptian balsam) and Jojoba oil in favor of immediate relaxation and glamour !

48 PRO LINE

HAND & FOOT TREATMENTS

Express 20min A brief infusion of softness in the middle of your hard day (Hands\Feet).

Pampering 40min A pampering recess to nourish and hydrate the hands\feet

Total indulgence 60min A total luxurious indulgence of making the hands\feet beautiful and splendidly soft.

49 PRO LINE

MINERALZONE BY AHAVA MineralZone The Concept: by AHAVA Cost - effective 30 min. treatments, affordable fix price (25€ SRP), ideal for targeting pressing top skin concern such as stressed-out skin, lack of radiance, fatigue skin, dehydrated skin, lack of elasticity An opportunity for recruiting AHAVA newcomers in retail channels: chains/perfumeries/ work place/pop up stores/road shows/airports & cruises.

MineralZone by AHAVA

Mix & Mask A multi masking treatment, all at once! Targets all your skin tasks to immediately WOW your skin appearance Detox Time AHAVA’s famous Mineral Mud treatment that reinforces skin’s natural barrier to better cope with daily challenges Skin Fitness Energizing treatment to restore skin’s radiant complexion & recover fatigue and dull skin tone Beauty & Relaxation to go Personalized deep cleansing and relaxing treatment. Pure bliss! Mineral Recharge AHAVA’s exclusive Osmoter™ hydration boost to revive even the most dehydrated skin complexions

50 DSE DSE

52 PRODUCT AWARDS

Israel 2014 Israel 2015

53 PRODUCT AWARDS

NewBeauty 2013 Beauty Prevention 2013 More Magazine 2013 Prevention 2015 Choice Award Beauty Awards Beauty Awards Beauty Awards Softening Butter Smoothing Body Exfoliator Facial Renewal Peel Sleeping Cream Salt Scrub

54 PRODUCT AWARDS

Total Beauty 2014 for Best Harper's Bazaar Taiwan faveable Best Anti-Aging Southern Living’s “2016 Beauty Body Scrub Best Anti-Aging Treatment 2016 Hand Cream Awards” for Best Body Product Dead Sea Plants Extreme Night Treatment Mineral Hand Cream Purifying Mud Soap Smoothing Body Exfoliator

55 THANK YOU