A message from the General Manager

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2 A message from the General Manager We began 2014 with a focus on delivering exceptional results to help grow your business and motivate your staff. The launch of our new BioSurface Peel revolutionised client results in the treatment room, the release of Dermalogica Connect provided you with free online presence and business support whilst the FaceMap Our Nation Campaign helped open your doors to more new clients. Now in 2015 we look to celebrate 20 years of supporting the Professional Skin Therapist in Australia by sharing the milestones and individual stories that have helped shape our brand to be a cult favourite for skin care professionals, makeup artists and consumers alike. This year also sees the return of our much anticipated International Congress in Las Vegas. An event that promises to be bigger and better than ever before with over 2,500 attendees from across the globe. To date we have over 200 registered attendees from Australia and it is still not too late to join the party. It will be a guaranteed action packed few days! In 2015 we are also excited to launch a brand new global advertising campaign and continue to do what we do best - deliver game-changing product innovations, exceptional education, business support and incentives to give you the edge over your competition. Thank you for your continued support and passion for the Dermalogica brand and I look forward to celebrating a new chapter in our brand story! Suzette Cassie

3 Share your Dermalogica memories and photos! 2015 marks our 20th anniversary in Australia. Thank you for being part of our journey and for helping us set an industry precedent in skin health, education and product innovation. Share your Dermalogica photos and memories to have them feature across social media. Submit your stories to

4 The evolution of Dermalogica Australia was established. Special Cleansing Gel. Multi-Active Toner UltraCalming Cleanser Daily Microfoliant becomes top-selling product EA35 launches Total Eye Care Solar Defense Booster. Power Rich. Skin Hydrating Booster We re not pretty campaign launched Daily Resurfacer

5 happy sad happy/sad campaign launches Barcelona Congress MicroZone Concept launched AGE smart Istanbul Congress Age Reversal Eye Complex Overnight Repair Serum MultiVitamin Power Serum BioSurface Peel PowerBright TRx Las Vegas Congress Revolutionary new retail and treatment innovations FaceMapping Concept launched Solar Defense System medibac Clearing ChromaWhite TRx UltraCalming FITE SM initiative SkinPerfect Primer SPF30 UltraCalming Eye Serum Clear Start Dermalogica Australia s 20 year anniversary Breakout Control PROFESSIONAL expert STRENGTH

6 BioSurface Peel & PowerBright TRx synergy This year Dermalogica will be highlighting the uniquely advanced BioSurface Peel treatment and PowerBright TRx product range to consumers, sharing our cutting edge formulas and professional-strength treatments. Capitalise on this promotion and keep up to date on our campaign news by on social media. Prepare your clients for results in 2015 By Introducing the PowerBright TRx products and BioSurface Peel treatments to your clients you can deliver real results that will help you revolutionise your treatment rooms and retail sales. Below are some suggested promotional offers to help keep your appointment books full and your retail sales soaring. 1 Purchase 6 BioSurface Peel Treatments and receive a PowerBright TRx treatment kit for FREE (also included is the BioSurface After Care Kit). 2 Purchase 6 BioSurface Peel Treatments and receive your first BioSurface Peel FREE 3 Purchase a BioSurface Peel Treatment and get XX savings on your next 3 BioSurface Peel Treatments 4 Pay for 6 BioSurface Peel Treatments and receive a FREE C-12 Pure Bright Serum 50ml. Before After Out of all the brightening agents that have been introduced to the cosmetic industry, Oligopeptide-34 is indeed the most effective, non-hydroquinone skin whitener to have been tested. Dr Diana Howard, Head of Research and Development

7 To give your clients the exceptional results they demand and elevate your knowledge, sign up for these new advanced workshops; PowerBright TRx : brighter skin without compromise and BioSurface Peel. Here you will learn from the experts about the different causes and preventative measures to treat hyperpigmentation as well as the latest information on advanced skin exfoliation. PowerBright TRx : brighter skin without compromise NEW Support Materials available for download from the Business Centre: Obtain the knowledge you need to effectively treat and prevent skin discolouration and hyperpigmentation, ensuring your clients have the brightest skin ever! Sydney: Brisbane: Melbourne: Perth: Monday 23 rd February Monday 2 nd February Tuesday 17 th February Wednesday 11 th February Duration: full day Hours: 9.30 am 4.15pm Theory and hands-on treatment BioSurface Peel workshops In this one-day theory and practical workshop, we ll explore the latest information on skin exfoliation, peel categories and depth. Learn how Dermalogica s new formulas go beyond the typical chemical peel experience and how to effectively manage your clients expectations. In the afternoon session you will get handson practice with the BioSurface TM Peel protocol to develop your confidence and technique. Sydney: Brisbane: Melbourne: Perth: Monday 16 th February Monday 23 rd February Wednesday 18 th February Tuesday 10 th February display sheets Our clients are loving the BioSurface Peel! Deceptively powerful is an understatement. As a therapist I've always associated "peels" with redness, long downtime and severe shedding of the face. Our clients are leaving calm, hydrated and plumped. The instant results are there for the clients to see and feel and they are loving this treatment. Committing to the education and training to get BioSurface Peel into my business was one of the best business decisions I have ever made. - Beck Corrimal, Beauty by Beck Duration: 1 day Hours: 9.30am 4.30pm Theory and hands-on treatment *To attend the BioSurface Peel workshop you must have attended the following workshops prior: Dermalogica Live certified workshops, UltraCalming and the Dermalogica skin exfoliation workshop.

8 dermalogica incentive programs 2015 loyal- Dermalogica offers expert education, exceptional customer service and complete professional skin care solutions for your business. From skin health to revolutionary peels, Dermalogica is constantly researching, developing and creating the latest technology in skin care as well as key business concepts that will help set your business apart from the rest of the industry. The Loyal-d reward program is aimed at supporting our most loyal Dermalogica stockists for their continued, exclusive support to the brand. Loyal-d Benefits 10% ongoing discount* on all Dermalogica professional products (off invoice) Free merchandise pack** including the following materials valued at over $1, $250 rebate redeemable on support materials (excludes samples) -- Tester unit counter top with header card (empty) plus 35%* off Testers (issued once) 5% ongoing discount* on all Dermalogica retail products (off invoice) -- Tester unit pedestal base -- Tester unit pedestal base wheels Free Dermalogica uniform per Treatment Room (issued once) -- Loyal-d window decal *May not be used in conjunction with other % off discounts. **Variations in Merchandising Packs may occur depending on stock availability. ^Offer must be redeemed at time of application submission. Is my account eligible? Dermalogica must be the only professional skin care brand used and endorsed in your Skin Treatment Centre Must adhere to all points listed in the Dermalogica AAA Minimum total spend of $16,000 (ext GST) per annum* Minimum 10% (ex GST) of total purchases must be invested in professional products (reviewed quarterly). How do I join? Contact your Business Consultant to complete the Loyal-d Application Form on your behalf. Once your application has been submitted and approved by Head Office, these benefits will be applied immediately. *A pro rata calculation will be made for those accounts not part of the programme for a full calendar year. * No backdating of invoices. ** Loyal-D terms and conditions are reviewed quarterly.

9 - The Platinum Circle programme rewards Dermalogica accounts for exceptional sales performance. Accounts are rewarded based on two tiers of achievement Platinum Circle and VIP Platinum Circle. to reach platinum circle $50,000 - $99,999 per year ex. GST rebate Achieve level for first time or with growth less than 5% 1% $50,000 minimum $500 Achieve level and grow by 5% - 9.9% 2% $52,500 minimum $1,050 Achieve level and grow by 10% 3% $55,000 minimum $1,650 to reach vip status $100,000 + per year ex. GST Achieve level for first time or with growth less than 5% 6% $100,000 minimum $6,000 Achieve level and grow by 5% - 9.9% 6.5% $105,000 minimum $6,825 Achieve level and grow by 10% 7% $110,000 minimum $7,700 to reach group status (three or more skin centres) $225,000 + per year ex. GST Achieve level for first time or with growth less than 5% 6% $225,000 minimum $13,500 Achieve level and grow by 5% - 9.9% 6.5% $239,625 minimum $15,575 Achieve level and grow by 10% 7% $247,500 minimum $17,325 Benefits of achieving Platinum Circle status for 2015 (based on 2014 purchases) Rebate: Stockists that qualify will receive a product rebate based on spend and growth. Priority Referrals: Platinum circle stockists have priority in recommendation to consumers that call the toll free line, and when consumers search for their closest stockist, Platinum Circle stockists have a logo appear next to their account name at dermalogica.com.au Product Previews: Receive an advanced priority preview of every new retail product and advance launch deal shipping. Recognition: Dermalogica recognises our top performing accounts on an annual basis. Details on this recognition will be provided by your Business Consultant. Note: Changes to Platinum Circle Rebate structure for 2015 purchases to be announced in April Terms and conditions: Rebate to be used on future purchases, not to pay account. Rebates are valid until May All invoices up to 31st December 2014 are to be paid by 31st January, Rebates are calculated annually. Capped at total spend of $550,000 p.a.

10 important updates effective from March 1st, 2015 Website policy To ensure a comprehensive, accurate portrayal of Dermalogica and our products, we have updated our Web Site Policy governing all web sites exhibiting the Dermalogica name, trademark or any likeness of Dermalogica and/or Dermalogica products. We have designed these specifications to protect your business and ours. The updated website policy form is available on the Business Centre and is effective from the 1st of March Key changes include: You may only sell Dermalogica Retail Products to End-Users in Australia only from your registered, authorised URL (this excludes third party sites such as ebay, Amazon and Gumtree). All product names and Dermalogica images (including banners) must be presented in accordance with Dermalogica s brand guidelines unless expressly authorised in writing by us. The Dermalogica logo must retain the correct height/width ratio, in accordance with Dermalogica s brand guidelines. The word Dermalogica, The International Dermal Institute, or any registered product names or derivatives cannot be incorporated into a website/company logo. All e-commerce or online retailing shall follow prudent and reasonable business practices, timely product delivery, and responsive customer service, including offering consumers a 100% satisfaction guarantee on Dermalogica Retail Products as provided in the Agreement. Any products with an expiry date must be sold with a minimum usage period of 6 months. Any advertising (including but not limited to Banner Advertising and Search Engine Marketing) that use the words Dermalogica, The International Dermal Institute, or any registered product names shall maintain a presentation standard that is consistent with and supports the Dermalogica brand and image. For example wording such as cheap, bargain or discounted may not be consistent with and supportive of the Dermalogica brand and image An official Dermalogica Authorised Stockist logo must appear on either your homepage and/or Dermalogica brand page. This logo which is accessible via the Dermalogica Business Centre, must link to the authorised stockist page on dermalogica.com.au

11 To access MyAccount, MyEducation and The Business Centre all accounts will now need to log onto Dermalogica Connect using your unique login details. If you haven t already setup your Dermalogica Connect login or have lost your login details you can contact the Connect Support Network by ing connectsupport@dermalogica.com.au or by calling What can you access through Dermalogica Connect? MyAccount Affiliate Program My Education Congress 2015 web page Business Centre Admin Documents Create a Connect Website for your Skin Treatment Centre Use connect to create your website! In under 15 minutes you can create a uniquely customised Dermalogica Connect website for your Skin Treatment Centre. Increase your outreach by advertising to your clients and potential new clients. There are only two things that you will need to have at hand when setting up your website: Welcome message/about us blurb Skin Treatment Centre contact details Once you have entered this information you can further customise your website by adding your business logo, add visuals by choosing from a range of stock images, highlight promotions (up to 4 promotions at one time), add treatments, update layouts and themes, add social media links and track your website statistics. Paperless statements Monthly account statements will no longer be mailed out as we are choosing to go paperless in a bid to help the environment. Paperless statements are a great way to stay organised. Instead of receiving a paper statement in the mail, you will now access your statement by logging onto MyAccount through Dermalogica Connect.

12 expert programme There are skin care professionals, and there are skin care experts. Take yourself to the next level with the Dermalogica Expert programme - our 3-tiered series of workshops designed to empower you to be confident across all levels of your profession and makes you one of the highest-trained Dermalogica skin therapists in the country. Benefits for Experts Expert Pin Expert Certificate Expert T-shirt Expert photo and mention on the Dermalogica Facebook Page Dermalogica Product (to value of $100 incl. GST) VIP treatment experience* Have your name listed and highlighted on the Dermalogica Store Locator at dermalogica.com.au Expert Inner Circle member C S E Changes to the Expert Program in 2015 As of March 2015 we are launching a new practical workshop that will form part of the Expert Tier. This 3 hour practical workshop is your last step in the journey of becoming a Dermalogica Expert and also where you can demonstrate your mastery of knowledge designing and performing a Dermalogica expert treatment. If you haven t reached Dermalogica Expert status by the end of February 2015, then this workshop will need to be added to your education pathway. If you have already obtained Expert status please feel free to book into this workshop where you can put your current knowledge and expertise into practice. Today I completed my Dermalogica skin expert programme. It has given me the opportunity to increase my retail sales, knowledge, confidence and my ability to treat clients needs and concerns. The staff are all so friendly, helpful and make the learning experience enjoyable. The programme is rewarding and is a great way to set goals and achieve them. I would recommend it to anyone who wants to be their best. Suella Hetherington Dermalogica Expert

13 Once you become a qualified Dermalogica Expert the benefits don t stop there as you are now an exclusive member of the Expert Inner Circle group which will provide you with the following ongoing benefits: Telephone training support Initial training for all new products and concepts Invites to our varied Dermalogica and IDI events and launches Exclusive customised tailored trend workshops Feature on the Dermalogica website and social platforms Bonus offers Congress offer Join the club 2015 Congress offer If you reach Dermalogica Expert status and have registered for Congress you will automatically qualify to receive an exclusive $200 gift voucher as an added bonus to use while staying at the luxury Cosmopolitan hotel. Existing Dermalogica Expert/ Become a Dermalogica Expert (1st October March 15) Receive a $200 Cosmopolitan Hotel Gift Voucher* *Cosmpolitan Gift Voucher redeemable for anything at the Cosmopolitan of Las Vegas (excludes gaming). Please note that the gift listed is subject to change, should this occur, arrangements will be made by Dermalogica to supply a substitute gift where possible.

14 congress 2015 The Dermalogica tribe will be coming together from over 60 countries for our biggest Congress ever in Las Vegas! Congress delegates will experience the future of professional skin care first-hand as our experts share the latest formula innovations, industry trends, treatment modalities and business-building tools Istanbul 2003 Barcelona 1999 Bangkok 2005 Sydney 2001 Hong Kong 1997 Hawaii Track your journey to Vegas by downloading the Congress mobile app. This interactive app will allow you to: Engage with the tribe before, during and after Congress. Keep up with attendees by accessing the app s Activity Feed, which highlights useful comments, photos, ratings and more. View the complete event schedule and get detailed presenter information. Receive announcements and obtain the most up-to-date event information. Earn points, badges and prizes top the leader board! Expand your professional network and have fun! To download the app: 1. Visit the Apple App Store or Google Play 2. Search Dermalogica Congress

15 Absolutely amazing experience, one of the best things I have ever done. Lots of fresh ideas from fantastic speakers. So inspiring! Can t wait for the next one. - Sally G, Australia It was a great honour to be part of such a fantastic event. The presentations were inspiring to be in the same room as Jane Wurwand was to experience true hero worship. Everyone always says she is a skilled and very empowering speaker and I have to agree. Overall I learnt so much and am very keen to share it all with the rest of the SON group. - Sally C, Australia An amazing opportunity which I will never forget. I have come back to work inspired, motivated, full of ideas and eager to face the future. I have already made several key changes and am already reaping the rewards. - Katherine, England

16 @DermalogicaAUS Dermalogica customer service hotline: fax: (02) chandos street, crows nest nsw 2065