COMPANY PROFILE

COMPANY PROFILE

Farmeco S.A. Dermocosmetics

The PrinciplesCompany MissionCorporate ValuesHistory

CO

NTE

NTS

The StructureOrganization SectionsBoard of DirectorsResearch & DevelopmentMarketing & Promotional Tools

The Global PerspectiveExportsExporting Regions & CountriesInternational ExhibitionsWorld-Wide Advertising

The FutureGrowth Potential

1

2

3

4

To achieve and sustain a leading position in the globalmarket of dermocosmetics, been distinguished forour outstanding services and for our cutting-edge

marketing concepts and products.

THE

PR

INC

IPLE

S

To exploit our resources to the maximum, for the benefit of the company and its

people.

To serve niche markets, with unique marketing approaches, excellence

in service and un-comparable quality of products.

COMPANY MISSION

Reliability

HonestyRespect

Trust

ContinuanceTr

ansp

are

ncy

A specific set of values has been determined on which all efforts by Farmeco S.A. Dermocosmetics, its people, customers and partners depend on and identify with:

o Service of the niche markets of cosmeceuticals and dermocosmetics with high quality products and reliable scientific and marketing support.

THE

PR

INC

IPLE

S

CORPORATE VALUES

Reliability

HonestyRespect

Trust

ContinuanceTr

ansp

are

ncy

o Contribution to and incorporation of scientific and technological advancesthroughout product development, marketing and logistics operations.

o Continuous process of redevelopment and reinvention of our products and services, by adjusting to the changing needs and conditions of the global market environment.

THE

PR

INC

IPLE

S

CORPORATE VALUES

Farmeco S.A. Dermocosmetics was founded in 1977 for the global development and marketing of advanced

cosmeceuticals and dermo-cosmetics.

Since our establishment, the guiding priority has been to evolve through adoption of cutting-edge scientific and technological advances, to be able to lead and serve

niche markets in the cosmetic industry.

THE

PR

INC

IPLE

S

HISTORY

Farmeco S.A. DermocosmeticsAthens

Farmeco s.r.l., Milano

Farmeco S.A. Dermocosmetics is founded as a distributor and marketer of cosmeceuticals.

First production of a dermo-cosmetic product (Evolid®)undertaken by Farmeco S.A. Dermocosmetics from

conception to formulation and manufacturing.

Establishment of in-house Research and Development (R&D) Section.

Initiation of “Exports Initiative” through exports to other European markets (Italy, Finland, Hungary).

o Farmeco S.A. Dermocosmetics acquires the marketing of the unique, world leading Camouflage line Covermark/Coverderm, marketed in the USA since 1932 and in Europe since the 70’s. o Our affiliate, Farmeco s.r.l., Milan, Italy, is founded to pilot our export business.

1977

1981

1989

1992

1994

THE

PR

INC

IPLE

S

HISTORY

First fully independent participation in Cosmoprof Bologna (Italy). Since then Farmeco S.A. Dermocosmetics is constantly present in all major exhibitions like:

First extension of Covermark/Coverderm into treatment products, with the development and launching of Luminous treatment creams.

o Cosmoprof Asia (Hong Kong, China)o Cosmoprof Cosmetica (Sao Paolo, Brazil)o Gulf Beauty (Dubai, UAE)o Intercharm (Moscow, Russia)o Beautyworld (Frankfurt, Germany)o Infarma (Barcelona/Madrid Spain) o Cosmobelleza (Barcelona, Spain)

o Professional Beauty (Johannesburg, South Africa)o Cosmeeting (Paris, France)o Dubai Derma (Dubai, UAE)o Beauty Eurasia (Istanbul, Turkey)o Pharmagora (Paris, France)o Expopharm (Berlin, Germany)o Cosmofarma (Bologna/Rome, Italy)

THE

PR

INC

IPLE

S

HISTORY

1995

THE

PR

INC

IPLE

S

HISTORY1996 Launching of the first-generation Farmeco S.A. Dermocosmetics website (www.farmeco.com)

Our clinical study for Ahacid® products, contacted in cooperation with the Department of Medicine, Aristoteles University of

Thessaloniki, a landmark in the efficacy evaluation of alpha-hydroxyacids, is published in the Cosmetics and Toiletries Magazine

(Vol. 114/No 6, June 1999)

2002

Farmeco S.A. Dermocosmetics launches its Eliminate and Vanish treatment lines and becomes one of the first companies to innovate the cosmetic industry by incorporating in their formulas ingredients of purely biotechnological research.

2003

Launching of the “colorceuticals” concept. Incorporation of treatment active ingredients in high quality color cosmetics

is another originality of Farmeco S.A. Dermocosmetics which immediately attracts the interest of consumers.

1999

THE

PR

INC

IPLE

S

HISTORY

2005

o Launching of Peptumax/Botuline anti-wrinkleproducts . Formulated with biomimicking peptides, they are recognized as anothermajor innovation that benchmarks Farmeco S.A. Dermocosmetics as a front runner in the applicationof scientific breakthroughs in cosmetics. Since then, all treatment products have been reformulated to incorporate biomimicking peptides.o Coverderm Camouflage products complete an astonishing3-years’ history as No 1 make-up in Korean TV-shopping, exceeding sales of Euro 50 million!!

2008

o Covermark Leg Magic is voted as the most innovative body beauty product among Spanish pharmacists in an

independent voting.o Another innovation is achieved with the launching of

Maxydrat/Acquamax lines, incorporating the Nobel prize winning acquaporines to provide the only

3-D hydration system.

o Farmeco S.A. Dermocosmetics is awarded the 23rd

international prize of quality by the Trade Leaders Club independent non-profit organization with 7000 enterprises-members from all over the world. The prize is awarded as a recognition of the high quality services and products offered by Farmeco S.A. Dermocosmetics.o Launching of Filteray/Rayblock lines, the first ever products to secure safe and effective sun protection throughout the day, with one application only.

THE

PR

INC

IPLE

S

2009

Re-formulation and re-launch of Luminous, as the only skin whitening line with separate products to address the particular needs of each ethnic group.

Peptumax Yeux is voted as the favorite product of the beauty world in a competition of the “Anne & Stiil” magazine of Estonia.

2011

2012

o Perfect Legs Fluid is voted as the best covering productin the competition of the “Woman and Home”

magazine in South Africa.o Eliminate make-up receives the “Les Nouvelles esthetic”

award during Cosmobelleza 2014.o The year marking the 20th anniversary of our export

initiatives for Covermark/Coverderm finds our productsexported to 83 countries!!

2013

2014

The contemporary concept of the super-powered CC creams is launched, meeting immediately an impressive success.

THE

PR

INC

IPLE

S

Research & Developmento Basic, applied and clinical

research collaborationso Articles & papers in scientific

and professional journals o Membership in scientific societies and professional

organizationsExports

o Exporting countrieso Participation in international

exhibitionso World-wide advertising

Marketingo Priceo Distribution channelso Promotiono Productso Web-based communication

Logisticso Accounting

o Manufacturingo Warehousingo Transporting

Board of Directors

Domestic Market & Distribution Developmento Pharmacy channel sales forceo Exclusive cosmetic store sales forceo Department store beauty advisors

THE

STR

UC

TUR

E

ORGANIZATION SECTIONS

Scienfitic AdvisorProfessor Kostas KostarelosChair of Nanomedicine, Nanomedicine

Lab, School of Medicine, Faculty of Medical and Human Sciences,

The University of Manchester, UK

An academic with international recognition for his innovative research in the field of nanotechnology in biological and life science applications, advises the Board on all scientific developments and valuably contributes to its strategic planning.

President & Chief Executive OfficerMr. Alkis Kostarelos

B.A., Mathematics/Computer Science (1995, Oxford University)M.Sc., Computer Science (1997, University of Edinburgh)

Committed to the mission and to the principles of the company, he leads its dynamic growth into the future.

Having modernized all itsfunctions and infrastructure, he is credited with all recent organizational development and consecutive successes.

Honorary PresidentMr. Menos Kostarelos

B. Pharm. (1967, University of Athens)

A pharmacist-entrepreneur who envisioned, founded and developed Farmeco S.A. Dermocosmetics, its mission, principles and goals.

Under his leadership the company has gained its strong position in the global dermocosmetic market and its recognition as a

distinguished distributor of exceptional products. His 45 years experience on the cosmetic market has been one of the most

valuable assets of the company.

THE

STR

UC

TUR

EBOARD

OF DIRECTORS

Both applied and basic research and product development efforts have been carried out by an in-house R&D department, responsible also for all clinical trials and studies undertaken, as well as quality control of all productions.

Perhaps the most basic of all fundamental principles on which Farmeco S.A. Dermocosmeticsis firmly grounded, and a strategic source of its competitive advantage is its profound involvement in Research and Development.

Strong links are maintained with academic institutions and research centers across Europe and the United States, while membership to Scientific Societies and Professional Boards assure

that Farmeco S.A. Dermocosmetics has an active role during all technological and regulatory changes prevalent in the cosmetic, pharmaceutical and biotechnology industries.

RESEARCH&

DEVELOPMENT

THE

STR

UC

TUR

E

Collaborations on clinical studies and formulation technology projects with renowned academic andresearch institutions in Europe and the United States are maintained.

RESEARCH&

DEVELOPMENT

THE

STR

UC

TUR

E

From basic research projects to develop advanced treatments, to applied delivery of cosmetic active molecules and detailed clinical evaluations, our collaborating institutions have included:

Basic, applied and clinical research collaborations

o Hospital for Exfoliative & Skin Diseases, Department of Dermatology, School of Medicine, Aristoteles, University of Thessaloniki, Greece

o Institute of Skin and Product Evaluation, Milan, Italyo Department of Pharmaceutical Technology, School

of Pharmacy, University of Patras, Greece

o Department of Medicine, Weill Medical College of Cornell University – New York Hospital, New York, NY, USA

o Department of Medical Physics, Memorial Sloan-Kettering Cancer Center, New York, USA

o Department of Biopharmaceutics, University of Pavia, Italyo Department of Medical Physics, Medical School,

University of Ioannina, Greece

RESEARCH&

DEVELOPMENT

THE

STR

UC

TUR

E

One of the missions of our R&D section is to publish and dissipate all substantial knowledge and technology invented or developed, through the most prestigious scientific journals and professional publications:

o Cosmetics & Toiletries, 1999, (Allured Publishing, Carol Stream, IL, USA)

o Journal of the European Academy of Dermatology & Venereology, 2000,

(Blackwell, Oxford, UK)

o Cosmetics & Toiletries, 2002,(Allured Publishing, Carol Stream, IL, USA)

Articles & papers in scientific andprofessional journals

RESEARCH&

DEVELOPMENT

THE

STR

UC

TUR

E

Membership in scientific societies andprofessional organizations

By actively participating in all relevant scientific societies and professionalorganizations, Farmeco S.A. Dermocosmetics has reassured an active role in the technological and regulatory developments of the industry.

Representative such organizations include:o American Chemical Society (USA)o The Society of Investigative Dermatology (USA)o The Society of Cosmetic Scientists (UK)o The Society of Cosmetic Chemists (USA) o International Society for Bioengineering & the Skin (USA) o Biotechnology Industry Organization (USA)

RESEARCH&

DEVELOPMENT

THE

STR

UC

TUR

E

Achievement of the business development targets that Farmeco S.A. Dermocosmeticshas set through the years, has been possible through loyalty to a few fundamental Marketing Mix principles incorporated in every single product created.

Our Marketing Department is responsible for the creation, adaptation and implementation of the Marketing Mix according to product concept and geographic location.

THE

STR

UC

TUR

EMARKETING

&PROMOTIONAL

TOOLS

PriceOur pricing strategies are designed to range within the upper middle pricing bracket depending on the product, competition and market environment.

Distribution ChannelsOur products are designed to be marketed and sold through the exclusive cosmetic stores & perfumeries, pharmacy & chemist stores, department stores or beauty salons and spas.

THE

STR

UC

TUR

EMARKETING

&PROMOTIONAL

TOOLS

u

PromotionPromotional tools and incentivesare continuously being created and developed in the form of printed advertisements, TV-commercials, in-store display stands and posters, shop window cards, sample kits and gifts-on-purchase, to enhance brand awareness and assist seasonal offers.

MARKETING&

PROMOTIONAL TOOLS

THE

STR

UC

TUR

E

ProductsAll Farmeco S.A. Dermocosmetics products incorporate cutting-edge technology, clinically tested and supported efficacy claims, aiming to maximize market share in niche cosmeceuticalmarkets and substantiate all promises made to the end-users.

MARKETING&

PROMOTIONAL TOOLS

THE

STR

UC

TUR

E

Web-based CommunicationFive different domain names and the respective web-sites, one for each of our brands, constitute the most recent effort to communicate, promote and educate on all Farmeco S.A. Dermocosmeticsactivities, brands & products and gradually introduce e-commerce relationships with our global distributors ande-support the global Farmeco S.A. Dermocosmetics productend-user.

MARKETING&

PROMOTIONAL TOOLS

THE

STR

UC

TUR

E

With exports to 86 countries in all 5 continents, our exporting doctrine “Think Globally-Support Locally” came about naturally.

The development of novel products and marketing concepts is destined to have a global perspective, while care and support for each of our collaborating companies takes into account local diversities and market peculiarities.

Since launching our “Exports Initiative” in the mid ‘90s, the customer base for all Farmeco S.A. Dermocosmeticsbrands & products has been constantly widening and geographically diversifying.

THE

GLO

BA

L P

ERSP

ECTI

VE

EXPORTS

EuropeThe world’s largest single market for cosmetics has also been our most important exporting region. The presence of Farmeco S.A. Dermocosmeticsproducts and brands in 32 European markets including the 5 major EU markets (Italy, France, UK, Germany, Spain) designate the strong market positioning gained and the concrete distribution network built.

AmericasFrom the Brazilian “tropical” market to the powerhouse economy of the continent, the United States, Farmeco S.A. Dermocosmeticsis building brand awareness for its products and a distribution network eager to tackle the challenges of the region.

THE

GLO

BA

L P

ERSP

ECTI

VE

EXPORTING REGIONS

& COUNTRIES

Middle East, GCC, IranFarmeco S.A. Dermocosmetics products are present in all major markets in the region (UAE, Saudi Arabia, Iran, Kuwait, Syria, Lebanon, Qatar, Bahrain, Egypt, Jordan). Immediately following initiation of our “Exports Initiative", our brands have established a strong presence in the local markets and gained significant market shares.

THE

GLO

BA

L P

ERSP

ECTI

VE

EXPORTING REGIONS

& COUNTRIES

Far East and AsiaThe most heavily populated region of the world is quickly growing inimportance as the consumer markets gradually mature. Under this guiding principle, Farmeco S.A. Dermocosmetics has closely and continuously attended the positioning of its products and brands in Hong Kong and China, Japan, Singapore, Malaysia, Indonesia, Taiwan, Thailand, the Philippines, Sri Lanka and anticipates dramatic growth of its distribution in the area.

Our products are continuously increasing their presence in the other promising giant of the continent, India. Our most successful distribution story in Korea, where Coverderm has met a tremendous success and has created a consumer base of millions in no time, rigidly demonstrates and proves the huge opportunities of our brands in every market.

THE

GLO

BA

L P

ERSP

ECTI

VE

EXPORTING REGIONS

& COUNTRIES

AfricaBy far the most diverse region in the world, as far asboth cultural and economic differences are concerned, Farmeco S.A. Dermocosmetics products and brands are present in both ends of the African spectrum: Morocco, Libya, Tunisia and South Africa, while investing and establishing a wider distribution network throughout the continent.

OceaniaWith presence in both major markets, Australia and New Zealand, Farmeco S.A. Dermocosmeticsis looking at enhancing its Brand Awareness and deepening market penetration.

THE

GLO

BA

L P

ERSP

ECTI

VE

EXPORTING REGIONS

& COUNTRIES

Through this extensive and cross-national network of distribution, Farmeco S.A. Dermocosmetics brands & products (particularly the advanced dermoceutical brands Covermark®and Coverderm®) have been found in the world’s most exclusive and renowned cosmetic chains: Sephora (France), Douglas (Austria, The Netherlands, Belgium, Germany, Italy), DM (Austria), Boots (UK, Belgium, UAE, Kuwait), Hondos Center (Greece), Gallerie Laffayette (France), ICI Paris (Belgium, Holland), Corte Ingles (Spain), Pharmacy One (Jordan), I.L.U. (Baltic States), Watson’s (Philippines, Singapore), SOGO (Indonesia), Dischem (South Africa), John Lewis (Australia), to name just a few.

THE

GLO

BA

L P

ERSP

ECTI

VE

EXORTING REGIONS

& COUNTRIES

EXPORTING REGIONS

& COUNTRIES

Presence in multinational exclusive chain stores

Our Exports Department operating at both the headquarters of Farmeco S.A. Dermocosmetics in Athens, Greece and its affiliated company Farmeco s.r.l. in Milan, Italy, apart from maintaining and motivating our exports partners and accounts, aims to strategically plan, prepare and organize exhibition stands for participation to all major international cosmetic exhibitions around the world.

In this way, expansion of the Farmeco S.A. Dermocosmetics exports network is achieved. Some representative exhibitions where Farmeco S.A. Dermocosmetics brands & products are regularly exhibited since initiation of our "Exports Initiative" in 1992, include:

THE

GLO

BA

L P

ERSP

ECTI

VE

INTERNATIONAL EXHIBITIONS

CosmoprofThe largest and most importanttrade event in the cosmeticindustry held every year inBologna, Italy. Cosmoprofattracts exhibitors and visitorsfrom around the world.

Cosmoprof CosmeticaThe largest and most important beauty event aiming to serve the Latin American markets and specifically focusing on the Brazilian market is held annually in autumn in Sao Paulo, Brazil.

Gulf BeautyThe International Trade Fairfor Perfumes, Cosmetics andBodycare attracting visitorsfrom all Arab countries is takingplace at the World Trade Centrein Dubai, United Arab Emirates.

THE

GLO

BA

L P

ERSP

ECTI

VE

INTERNATIONAL EXHIBITIONS

Paris, FranceBologna/Rome, Italy

Cosmoprof AsiaRenowned as the largestinternational beauty showcasein the Asia Pacific region heldevery year at the Hong KongConvention and Exhibition Centre.

Professional BeautyThe only international tradeshow for the beauty industry inthe African continent held at theMTN Sundome in Johannesburg,South Africa.

BeautyworldOne of the most importantinternational trade fairs forcosmetics in the whole of Europeis held every year at the MesseFrankfurt, Germany.

THE

GLO

BA

L P

ERSP

ECTI

VE

INTERNATIONAL EXHIBITIONS

Dubai, UAEMoscow, Russia

Cosmoprof Hong Kong 2017

Cosmoprof Italy 2018

THE

GLO

BA

L P

ERSP

ECTI

VE

INTERNATIONAL EXHIBITIONS

Farmeco S.A. Dermocosmetics brands and products marketed around the world are followed by advertising campaigns in women's magazines, lifestyle and

professional press, television channels and other public media (subway or street poster advertising).

THE

GLO

BA

L P

ERSP

ECTI

VE

WORLD -WIDE ADVERTISINGWORLD-WIDEADVERTISING

Through creation of attractive budgetary schemes, provision of communication strategies and design material, Farmeco S.A. Dermocosmetics creates incentives

and supports all its partner companies across the globe to run high-impact, successful advertising campaigns.

Based on:o proven marketing valueso a global distribution base

o scientific expertise for product developmento use of state-of-the-art electronic media

Farmeco S.A. Dermocosmetics feels confident to continue expanding & diversifyingto different national markets serving customers with its advanced

products and services.

THE

FUTU

RE

GROWTH POTENTIAL

Our aim is to keep having a leading role in providing dermatologically-concious, advanced skin care and treatment products to our collaborating companies and their customers. From optimum make-up to cutting-edge

biotech cosmeceuticals, web-based communication and business-to-business operations, Farmeco S.A. Dermocosmetics is looking proudly

at the future.