PHILIPPINE SALON INDUSTRY

INDUSTRY OUTLOOKBeauty & personal care industry rebounded strongly from 2010 with the improvement of Philippine economy*Estimated 38% annually growth*Continuous growth in personal beauty care products

Increase in spending of time to enhance and maintain personal appearance, confidence and self esteem; for relaxation

Market leaders in salon industry are franchised system*2010 Euromonitor International

OUR SALON CONCEPT

Optimum investmentNeighborhood salon with high customer accessibility

Maximum sales from competitively priced quality salon services

OUR MISSION:To satisfy our customers for them to look and feel their very bestTo establish an affordable and profitable neighborhood salon investment nationwide.To offer a competitive-best value professional hair rebonding and other hair care and beauty services to all our clients.

OUR VISION:

To be the most admired national “neighborhood” salon chain specializing in a high quality but affordable hair rebonding and other premium hair care services.

ENTREPRENURESHIP HISTORY

Owned/operated a pioneering franchised salon with10 years of experience

Efficient marketing and managing a business (food service industry with 4 years of experience and own a bar &restaurant with 6 years of experience)

Initiated the lowest hair care treatment packages in Bayan Luma 2, Imus Cavite in May 2010 Hair rebonding for only P799.95 any length is the flagship top service Experienced trials and errors in 6 months

Able to establish 3 branches in a strategic and convenient location in Cavite area within two years.

Services offered:

Salons’ LocationMain Office: Unit 5 Legaspi

Bldg. Aguinaldo Highway, Bayan Luma 2, Imus Cavite (between Allied Bank and MotortradeImus)

started in May 2009

First branch: Aguinaldo

Highway, Panapaan I, Bacoor Cavite (beside Atlantika Beer Garden/in front of Ministop)› 2010

Second branch: 89 Nueno Avenue, Imus, Cavite (in front of Pilot School/ Adjacent to Imus Institute) (2011)

Third branch: Imus Public Market (2011)

Reasons for Franchising

› Numerous inquiries especially from customers who are passionate in beauty and be fond of what they are doing

› Give the franchisee an opportunity to run a proven business concept with a successful operational track record.

› Give an affordable franchise investment requirements

ADVANTAGES OF FRANCHISING Operate under a recognized trade

name/trademark, which can have better marketing results.

Low franchise fee 5 years franchise term Low fixed monthly royalty fee

Business Format Franchising complete packages ensure a ready to go “turn-key” franchised unit (e.g. renovation, furniture & fixtures, equipment and initial stocks)Management and operations trainingMarketing support

Avoiding the unnecessary trial and error period in starting and operating a new business.

FRANCHISE PACKAGE I

FULL SIZE SALON

Investment starting atP900 000

Area: 50 sq. m.

Minimum of 6 stations

Minimum of 5 staff

FULL SIZE SALON BASIC P&L MODEL(Based on conservative actual performance)

% share FULL SALONGross Sales 100.0 150,000.00

Less: Royalty 4.0 6,000.00 Advertising Contribution 1.3 2,000.00

Less: Chemicals 10.3 15,450.00 Supplies 1.5 2,250.00

Gross Profit: 82.9 124,300.00

Less: Salaries 22.0 33,000.00 Commissions 7.6 11,400.00 Allowances 0.4 600.00 Rent 13.5 20,300.00 Electricity 10.1 15,150.00 Water 1.8 2,700.00 T.V./ Tel. 1.1 1,600.00

Net Profit (before tax) 26.4 39,550.00 Ave. Daily Gross Sales 5,000.00

FULL SIZE SALON PAYBACK PERIOD MODEL(Based on actual performance)

FULL SALON PAY BACK PERIOD FULL SALON

Franchisee Investments:Franchise Fee 100,000.00 Site Advances/ Deposits 60,000.00 Renovation, Furniture and Fixtures, Equiment 680,000.00 Initial Stocks 50,000.00 Organizational Cost 10,000.00 TOTAL INVESTMENT 900,000.00

Target Payback in Months Investment 900,000.00

Monthly Net Sales 39,550.00 23 Months

FRANCHISE PACKAGE IICOMPACT SALON

Investment starting at

P450 000

AREA: 20 sq. m.

Minimum of 3 stations

Minimum of 3 staff

COMPACT SIZE SALON BASIC P&L MODEL(Based on conservative actual performance)

% share COMPACT SALONGross Sales 100.0 90,000.00

Less: Royalty 3.9 3,500.00 Advertising Contribution 1.7 1,500.00

Less: Chemicals 10.4 9,360.00 Supplies 1.5 1,350.00

Gross Profit: 82.5 74,290.00

Less: Salaries 22.0 19,800.00 Commissions 7.6 6,840.00 Allowances 0.4 360.00 Rent 12.6 11,300.00 Electricity 10.2 9,180.00 Water 1.8 1,620.00 T.V./ Tel. 1.0 900.00

Net Profit (before tax) 27.0 24,290.00 Ave. Daily Gross Sales 3,000.00

COMPACT SIZE SALON PAYBACK PERIOD MODEL(Based on actual performance)

COMPACT SALON PAY BACK PERIOD COMPACT SALON

Franchisee Investments:Franchise Fee 75,000.00 Site Advances/ Deposits 30,000.00 Renovation, Furniture and Fixtures, Equiment 310,000.00 Initial Stocks 25,000.00 Organizational Cost 10,000.00 TOTAL INVESTMENT 450,000.00

Target Payback in Months Investment 450,000.00

Monthly Net Sales 24,290.00 19 Months

FINANCIAL TARGETSFULL SALON:

› Target Monthly Net Sales- P39,550› Target Payback Period- 23 months

COMPACT SALON:› Target Monthly Net Sales- P24,290› Target Payback Period- 19 months

Note: Above financials are not franchise salon sales projections or guaranteed sales but achievable targets based on actual salon operations. Franchise sales performance will depend largely on salon location and managerial skills and marketing efforts of the Franchisee (owner)

APPLICATION REQUIREMENTS

1. Submit a Letter of intent indicated the preferred location, vicinity map, complete contact information.

2. Complete application form

3. Close franchise (Complete financial requirement)

YOUR FUTURE WITH USFor 2012 we are projecting a

minimum of 20% increase in our sales

Unique proprietary store logo and design

Customer’s sensitive quality marketing programs for each salon

Very competitive pricing

YOUR PROFITABLE FUTURE TO THE WORLD OF BEAUTY

AND WELLNESS!

Thank you!