2011 ANNUAL REPORT HALLE BERRY EMMA STONE Alan T. Ennis President and Chief Executive Offi cer Dear Fellow Shareholders, Our strategic goal is to profi tably grow our business. 2011 was a year of many notable achievements, as we continued to execute our business strategy despite continued uncertain global economic conditions. From a fi nancial perspective, we grew net sales for the second year in a row, sustained competitive operating margins, achieved our fourth consecutive year of positive free cash fl ow and improved our capital structure. From a marketplace perspective, we introduced innovative, high-quality, consumer-preferred products across our entire portfolio, we acquired the SinfulColors brand, and we signed two of Hollywood’s most sought-after actresses, Emma Stone and Olivia Wilde, as Global Brand Ambassadors for our Revlon brand. NET SALES OPERATING INCOME 1,400 220 14.7% 1,350 $1,381.4 200 15.1% $203.3 1,300 $1,321.4 $199.8 180 1,250 $1,295.9 13.2% 1,200 160 $170.8 1,150 $ in millions 140 $ in millions 1,100 120 1,050 1,000 100 2009 2010 2011 2009 2010 2011 % of Net Sales ADJUSTED EBITDA1 FREE CASH FLOW2 $254.4 275 $266.0 100 $260.4 19.3% $97.7 250 19.7% $236.5 80 $82.3 225 18.2% $74.4 60 200 175 40 $ in millions 150 $ in millions 20 125 100 0 2009 2010 2011 2009 2010 2011 % of Net Sales Guided by our vision of “Glamour, excitement and innovation through high-quality products at affordable prices,” we are focused on the fi ve elements of our business strategy, specifi cally, to (i) build our strong brands; (ii) develop our organizational capability; (iii) drive our company to act globally; (iv) increase our operating profi t and cash fl ow; and (v) improve our capital structure. BUILDING OUR STRONG BRANDS Our portfolio of iconic, powerful brands includes Revlon®, Almay®, SinfulColors™, Mitchum®, Gatineau®, Ultima II® and Charlie®. During 2011, we continued to focus on building our strong brands with an emphasis on the following key drivers of profi table growth: • Innovative, high-quality, consumer-preferred brand offering; • Effective brand communication; • Appropriate levels of advertising and promotion; and • Superb execution with our retail partners. In meeting the needs of consumers, our global portfolio planning process delivered new products across our portfolio, while at the same time keeping our established franchises relevant and competitive. New products include: • Revlon ColorBurst ™ Lip Butter – A buttery balm that instantly hydrates lips while providing color with a shiny fi nish. • Revlon ColorStay™ 16 Hour Eyeshadow – An upgrade of our eyeshadow quads offering 16-hour wear in impactful colors in runway-inspired and classic shades, showcased in new premium design and packaging. • Revlon Age Defying with DNA Advantage™ Makeup – A full coverage moisturizing makeup which helps protect the skin’s DNA to fi ght signs of aging. • Revlon PhotoReady Airbrush™ Mousse Makeup – A mousse makeup that goes on “light-as-air” and contains innovative photo-chromatic pigments that bend and refl ect light to give a fl awless, airbrushed appearance. • Revlon® ColorStay™ Longwear Nail Enamel – A nail color line containing exclusive light-curing technology that provides a gel-like shine and up to 11 days of shatter-proof color when worn with ColorStay™ base and top coats. • Revlon Top Speed™ Fast Dry Nail Enamel – An advanced line of on-trend nail color that sets in 60 seconds. • Revlon Root Erase™ by ColorSilk™ – An extension of our Revlon ColorSilk product line that erases roots and grays with ease, for beautiful, seamless color in 10 minutes. • Almay Intense i-color™ kits – Building upon the formula and packaging innovations behind the Almay Intense i-color smoky-i™ kit, which helps consumers achieve a smoky eye look with ease, we extended the franchise with satin-i™ and shimmer-i™ kits. DEVELOPING OUR ORGANIZATIONAL CAPABILITY We strengthened the capabilities of our leadership team in 2011 through key management appointments, including Xavier Garijo as Chief Supply Chain Officer and Lauren Goldberg as General Counsel. We are focused on continuously strengthening our capabilities by developing our people and by recruiting talented and experienced individuals across all functions in the organization. DRIVING OUR COMPANY TO ACT GLOBALLY Acting globally is a principle that guides how we think, plan and act across all of our brands and regions. We are leveraging brand positioning, portfolio planning and brand communications plans globally, and we are focused on improving our operating effi ciency through many activities, including global supply chain management. INCREASING OUR OPERATING PROFIT AND CASH FLOW During 2011, we increased profi tability, achieving operating profi t of $203 million, and sustained highly competitive operating income margins. We also achieved our fourth consecutive year of positive cash fl ow, with free cash fl ow(2) of $74 million. IMPROVING OUR CAPITAL STRUCTURE We improved our capital structure by refi nancing our bank credit facilities during 2011, which lowered our cost of borrowing and extended maturities, and Moody’s upgraded our credit rating in April 2011. We believe that our current capital structure provides us with the fl exibility to continue to execute our business strategy. In closing, I am very proud of our accomplishments and am excited about the future of Revlon. We have achieved a great deal over the past several years and I would like to extend my sincere appreciation to our employees around the world for their accountability, collaboration, communication and execution in making Revlon a global success. I also thank our Board of Directors for their leadership, counsel and support, and our stakeholders for their continued interest in Revlon. Alan T. Ennis President and Chief Executive Offi cer April 2012 1. Adjusted EBITDA is a non-GAAP fi nancial measure that is reconciled to net income, its most directly comparable GAAP measure. Adjusted EBITDA is defi ned as income from continuing operations before interest, taxes, depreciation, amortization, gains/losses on foreign currency fl uctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses. 2. Free cash fl ow is a non-GAAP measure that is reconciled to net cash provided by operating activities, its most directly comparable GAAP measure. Free cash fl ow is defi ned as net cash provided by operating activities, less capital expenditures for property, plant and equipment, plus proceeds from the sale of certain assets. PHILANTHROPY We are most fortunate to be in a position to carry on the 80-year heritage of the Revlon brand, which has represented glamour, excitement, innovation and relevance for all women around the world. We continue to build upon this heritage and are proud of our long-standing and continued philanthropic efforts under the banner of Revlon Cares™. As an ambassador for women’s health, we have helped raise millions of dollars for important programs, including EIF Revlon Run/Walk for Women, Look Good...Feel Better and the National Breast Cancer Coalition, which help support medical research, physician training, clinical care and education and awareness initiatives. 1 3 2 4 1: Runners take off at the start line of the 2011 EIF Revlon Run/Walk for Women in Times Square, New York. 2: Halle Berry hosting the 2011 EIF Revlon Run/Walk for Women in Los Angeles. 3: Debut of a new Revlon-powered Rex Healthcare Mobile Mammography Unit, which provides women in North Carolina with free mammography screenings. 4: Revlon Global Artistic Director Gucci Westman applies makeup at Revlon’s 2011 Fashion Night Out event benefi tting Look Good...Feel Better. 2011 BEAUTY AWARDS 2011 BEAUTY AWARDS – U.S. 2011 BEAUTY AWARDS – CHINA Allure People Style Watch Cosmopolitan Readers’ Choice Awards Best Beauty Cheapies Beauty Awards • Revlon Super Lustrous Lipstick in • Revlon Age Defying with DNA • Best Cream Foundation: Softsilver Rose Advantage Makeup in Soft Beige Revlon Age Defying with • Revlon Just Bitten Lipstain + Balm – • Almay Smart Shade Smart Balance DNA Advantage Makeup Breakthrough Beauty Award! Pressed Powder • Best Nail Enamel: Revlon Top Speed • Revlon Super Lustrous Lipgloss in • Almay Intense i-Color Smoky-i Kit Fast Dry Nail Enamel Shine City Shape 2011 BEAUTY AWARDS – INDIA Best of Beauty Awards 2011 Beauty Awards • Revlon ColorBurst Lipstick in • Revlon CustomEyes Shadow & Liner Beauty & Style Candy Pink • Almay Smart Shade Smart Balance Editor’s Choice Award 2011 • Revlon Grow Luscious Lash Liner Pressed Powder • Eyeliner category: • Almay Oil-Free Makeup Revlon ColorStay Eyeliner Eraser Sticks Women’s Wear Daily Game Changers in Beauty Awards 2011 BEAUTY AWARDS – Allure.com • Almay Wake-Up Makeup Editors’ Favorite SINGAPORE • Almay Wake-Up Makeup 2011 BEAUTY AWARDS – Singapore Women’s Weekly • Almay Oil-Free Makeup AUSTRALIA 2011 Awards Eraser Sticks • Best Foundation – Oil-Free (under beautyheaven Glosscars $40): Revlon PhotoReady Makeup Good Housekeeping Best in Beauty Awards Gold Winner in 2nd Annual • Best Eyeshadow: Revlon ColorStay 2011 BEAUTY AWARDS – Anti-Aging Awards 12 Hour Eye Shadow SOUTH AFRICA • Revlon ColorSilk Haircolor • Best Lipstick: Must Have Makeup Revlon ColorBurst Lipstick Finesse Magazine • Revlon PhotoReady Concealer • Best Foundation: Beauty Awards • Almay Oil-Free Makeup Eraser Sticks Revlon ColorStay Makeup • Best Mascara: Revlon Grow Luscious Mascara #1 of “30 Drugstore Deals” 2011 BEAUTY AWARDS – • Almay Intense i-Color Smoky-i Kit NEW ZEALAND 2011 BEAUTY AWARDS – U.K. HarpersBazaar.com