52 HANSSON PRIVATE LABEL 54 Operating Assumptions 55 Operating Assumptions 56 57 58 59 Revenue Projection Total Capacity (000's) Capacity Utilization 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 85.0% 85.0% 85.0% 85.0% 60 Unit Volume 48,000 52,000 56,000 60,000 64,000 68,000 68,000 68,000 68,000 68,000 61 62 Selling Price Per Unit - Growing at Revenue 2.0% 1.77 1.81 1.84 1.88 1.92 1.95 1.99 2.03 2.07 2.12 84,960 93,881 103,124 112,700 122,618 132,887 135,545 138,256 141,021 143,841 63 64 Production Costs: 65 Raw Materials Per Unit Growing at 1.0% 0.94 0.95 0.96 0.97 0.98 0.99 1.00 1.01 1.02 1.03 66 Manufacturing Overhead Growing at 3.0% 3,920 4,038 4,159 4,283 4,412 4,544 4,681 4,821 4,966 5,115 67 Maintenance Expense Growing at 3.0% 2,250 2,318 2,387 2,459 2,532 2,608 2,687 2,767 2.850 2,936 68 69 Salaried Labor Cost: 70 Managers 4 4 6 6 6 6 6 6 6 6 71 Average Annual Fully Loaded Cost 3.5% 160.0 165.6 171.4 72 Total Salaried Labor Cost 640.0 662.4 1,028.4 177.4 1,064.4 183.6 190.0 196.7 203.6 210.7 218.1 1,101.6 1,140.2 1,180.1 1,221.4 1,264.1 1,308.4 A B C D E F G H I ] K L M N 0 P 74 75 Hourly Labor Cost: Average Fully Loaded Hourly Cost 3.5% 20.00 20.70 21.42 22.17 22.95 23.75 24.59 25.45 26.34 27.26 76 Hours Per Year 2,000 2,000 2.000 2,000 2.000 2.000 2.000 2.000 2,000 2,000 77 Cost Per Hourly Employee 40,000 41,400 42,849 44,349 45,901 47,507 49,170 50,891 52,672 54,516 78 Number of Hourly Workers 450 473 509 545 79 Total Hourly Labor Cost (000's) 18,000.0 19,570.9 21,814.0 24,190.2 582 26,706.0 618 618 618 618 618 29,368.2 30,396.1 31,460.0 32,561.1 33,700.7 80 81 Total Labor Cost 18,640.0 20.233.3 22,842.4 25,254.6 27,807.6 30,508.4 31,576.2 32.681.4 33,825.2 35,009.1 82 83 Selling, General & Administrative/Revenue 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 84 85 Working Capital Assumptions (1): 86 Days Sales Outstanding 47.6x 47.6x 47.6x 47.6x 47.6x 47.6x 47.6x 47.6x 47.6x 47.6x 87 Days Sales Inventory 47.0x 47.0x 47.0x 47.0x 47.0x 47.0x 47.0x 47.0x 47.0x 47.0x 88 Days Payable Outstanding 34.2x 34.2x 34.2x 34.2x 34.2x 34.2x 34.2x 34.2x 34.2x 34.2x 89 90 (1) Based on historical averages. 91 92 Hourly Labor Cost Per Unit 93 94 Units Per Total Labor Hours 0.38 0.38 0.39 0.40 0.42 0.43 0.45 0.46 0.48 0.50 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 95 96 97 144 Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions + 2 HANSSON PRIVATE LABEL 4 5 6 7 Market Net Enterprise Equity Net Book 8 Company: Value Debt Value Beta Revenue EBITDA EBIT Income Value 9 Cathleen Sinclair 298.9 1,329.6 1,628.5 2.22 1,346.8 255.3 163.4 21.5 (1,112.8) General Health & Beaut 319.3 63.1 382.4 1.95 446.1 61.9 51.9 23.8 204.2 1 Women's Care Compan 498.6 55.3 553.9 1.14 397.3 52.7 49.3 77.0 43.7 2 Skin Care Enterprises 1,204.2 371.9 1,576.1 1.35 1,247.6 155.8 125.4 65.3 316.2 3 4 5 Company: EBITDA EBIT Earnings Revenue EBITDA EBIT P/E P/B 6 Cathleen Sinclair 19.0% 12.1% 1.6% 1.2x 6.4x 10.0x 13.9x NM 7 General Health & Beauty 13.9% 11.6% 5.3% 0.9x 6.2% 7.4x 13.4x 1.6x 8 Women's Care Company 13.3% 12.4% 19.4% 1.4x 10.5x 11.2x 6.5x 11.4x 9 Skin Care Enterprises 12.5% 10.1% 5.2% 1.3x 10.1x 12.6x 18.4x 3.8x Average 14.6% 11.6% 7.9% 1.2x 8.3x 10.3x 13.1x 5.6x 1 2 3 "4 25 44 Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions + 52 HANSSON PRIVATE LABEL 54 55 56 57 Assets: 2003 2004 2005 2006 2007 58 Cash & Cash Equivalents $4.3 $5.1 $4.8 $7.8 $5.0 59 Accounts Receivable 62.1 70.1 78.8 87.1 93.3 60 Inventory 57.7 58.0 61.2 61.9 67.3 61 Total Current Assets 124.1 133.2 144.8 156.8 165.6 62 63 Property, Plant & Equipment 201.4 202.9 203.1 202.3 204.4 64 Other Non-Current Assets 12.3 12.1 11.8 12.5 10.8 65 Total Assets $337.8 $348.2 $359.7 $371.6 $380.8 66 67 Liabilities & Owners' Equity: 68 Accounts Payable & Accrued Liabilities $42.2 $45.0 $51.6 $53.4 $58.1 69 70 Long-Term Debt 91.6 82.8 73.8 65.8 54.8 71 72 Owners' Equity 73 Total Liabilities & Owners' Equity 204.0 $337.8 220.4 234.3 $348.2 $359.7 252.4 267.9 $371.6 $380.8 74 75 144 Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions + Balance Sheet 75 76 Net Working Capital: 77 Accounts Receivable 62.1 70.1 78.8 87.1 93.3 78 Plus: Inventory 57.7 58.0 61.2 61.9 67.3 79 Less: Accounts Payable & Accrued Expenses 42.2 45.0 51.6 53.4 58.1 80 Net Working Capital 77.6 83.1 88.4 95.6 102.5 81 82 Net Working Capital/Revenue 83 15.4% 15.3% 15.1% 15.0% 15.1% 84 Days Sales Outstanding 44.4x 46.4x 48.3x 49.3% 49.3% 85 Days Sales Inventory 41.3x 38.4x 37.5x 35.0x 35.6x 86 Days Payable Outstanding (1) 34.3x 34.0x 34.3x 34.0x 34.4x 87 Cash-to-Cash 51.4x 50.8x 51.6x 50.3x 50.5% 88 89 90 91 92 93 94 95 96 97 98 99 (1) Based on total operating expenses excluding depreciation. 144 4 144 Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions + 52 HANSSON PRIVATE LABEL 54 55 56 57 Cash From Operations: 2003 2004 2005 2006 2007 58 Net Income $28.9 $32.8 $20.0 $36.0 $38.5 59 Plus: Depreciation 6.8 6.2 6.0 5.9 6.1 60 Less: Increase in Accounts Receivable 3.1 8.0 8.7 8.3 6.2 61 Less: Increase in Inventory 0.5 0.3 3.2 0.7 5.4 62 Plus: Increase in Accounts Payable 0.3 2.8 6.6 1.8 4.7 63 Total Cash From Operations $32.4 $33.5 $20.7 $34.7 $37.7 64 65 Cash From Investing: 66 Capital Expenditures $7.3 $7.7 $6.2 $5.1 $8.2 67 Plus: Increases in Other Non-Current Assets 0.5 (0.2) (0.3) 0.7 (1.7) 68 Total Cash Used in Investing $7.8 $7.5 $5.9 $5.8 $6.5 69 70 Cash From Financing: 71 Repayment of Debt 72 Plus: Dividend Payments 73 Cash Used in Financing 74 75 Total Cash Generated $8.0 $8.8 $9.0 $8.0 $11.0 14.4 16.4 6.1 17.9 23.0 $22.4 $25.2 $15.1 $25.9 $34.0 $2.2 $0.8 ($0.3) $3.0 ($2.8) 76 144 Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions + A B C D E F G H I ] 57 Operating Results: 2003 2004 2005 2006 2007 58 Revenue $503.4 $543.7 $587.2 $636.1 $680.7 59 Less: Cost of Goods Sold 405.2 432.3 496.2 513.4 558.2 60 Gross Profit 98.2 111.4 91.0 122.7 122.5 61 Less: Selling, General & Administrative 37.8 44.6 45.8 51.5 49.0 62 EBITDA 60.4 66.8 45.2 71.2 73.5 63 Less: Depreciation 6.8 6.2 6.0 5.9 6.1 64 EBIT 53.6 60.6 39.2 65.3 67.4 65 Less: Interest Expense 5.5 5.8 5.9 5.3 3.3 66 EBT 48.1 54.8 33.3 60.0 64.1 67 Less: Taxes 19.2 22.0 13.3 24.0 25.6 68 Net Income $28.9 $32.8 $20.0 $36.0 $38.5 69 70 71 Margins: 72 Revenue Growth NA 8.0% 8.0% 8.3% 7.0% 73 Gross Margin 19.5% 20.5% 15.5% 19.3% 18.0% 74 Selling, General & Administrative/Revenue 7.5% 8.2% 7.8% 8.1% 7.2% 75 EBITDA Margin 12.0% 12.3% 7.7% 11.2% 10.8% 76 EBIT Margin 10.6% 11.1% 6.7% 10.3% 9.9% 77 Net Income Margin 5.7% 6.0% 3.4% 5.7% 5.7% 78 Effective Tax Rate 39.9% 40.1% 39.9% 40.0% 39.9% 79 80 81 82 83 144 Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions + A B C D E 52 HANSSON PRIVATE LABEL 54 FL G H I ] 55 56 Percent Cost of 57 Cost Components: Amount Est. Life Depr Maintenance Maintenance 58 Facility Expansion $10,000 20yrs. 500 5.0% 500 59 Manufacturing Equipment 20,000 10yrs. 2,000 5.0% 1,000 60 Packaging Equipment 15,000 10yrs. 1,500 5.0% 750 61 Working Capital (1) 12.817 0 0.0% 0 62 Total Investment 57,817 4,000 2,250 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 144 (1) The increase in working capital is not expected to ocurr upfront at the time of the initial investment. It is assumed to take place throughout the year, and should be considered as part of the 2009 cash flows. Note: working capital is defined as accounts receivable plus inventory less accounts payable and accrued expenses. At the end of the project, working capital will be returned in an amount equal to accounts receivable less accounts payable. Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions + A B C D E F G H I ] K L M N 57 58 Company: 59 Cathleen Sinclair 60 General Health & Beauty 61 Women's Care Company 62 Skin Care Enterprises 63 Average Debt/ Debt/ Equity Debt Asset Value Equity Beta Beta Beta 81.6% 444.9% 2.22 0.25 0.79 16.5% 19.8% 1.95 0.00 1.74 10.0% 11.1% 1.14 0.00 1.07 23.6% 30.9% 1.35 0.00 1.14 32.9% 49.1% 1.67 0.06 1.18 64 65 Dbet/ Debt/ Asset Equity Cost of Cost of Assumptions: 66 Value Equity Beta Beta Equity Debt WACC 10-Year Treasury 3.75% 67 0.0% 0.0% 1.18 1.18 9.67% 7.75% 9.67% Market Risk Premium 5.00% 68 5.0% 5.3% 1.18 1.22 9.86% 7.75% 9.60% 69 10.0% 11.1% 1.18 1.26 10.07% 7.75% 9.53% Tax Rate 40.0% 70 15.0% 17.6% 1.18 1.31 10.30% 7.75% 9.45% 71 20.0% 25.0% 1.18 1.36 10.56% 72 25.0% 33.3% 1.18 1.42 10.86% 7.75% 7.75% 9.38% Est. Hansson EBITDA Multiple 7.0x 9.31% Est. Hansson Enterprise Value 514.5 73 74 Existing Net Debt 49.8 75 Plus: New Expansion Debt 57.8 76 Total Estimated Debt 107.6 77 78 Existing D/V 9.7% 79 Estimated New D/V 20.9% 80 81 Assumed Debt Beta 0.00 82 Estimated Cost of Debt 7.75% 144 4 144 Hist Inc Hist Bal Hist Cash Comps WACC Investment Assumptions +