www.alfaparfgroup.com

Company Profile

AlfaparfGroup

The profile

Over thirty years’ of growth

Business sectors and brands

Business and organizational

model

Research and innovation

Production

Distribution

Training of professionals

Environmental sustainability,

quality, safety

Offices

3

4

7

12

14

15

17

19

20

22

The profile

ALFAPARF is an Italian multi-national cosmetic company working in hair care, facial care and body

care; integrating research, production and distribution.

Its mission is to raise the quality of the service offered to professional

clientele (hair-stylists, beauticians and estheticians) through

products and services which express Italian taste and creativity and

modern international trends.

The Group is the owner of the following brands: ALFAPARF Milano, Yellow, DIBI Milano, TeN,

Altamoda è…, Becos, Olos, Solarium, Decoderm Make Up I Care, Tisalya, Thermae SPA.

Products and services are the result of research, collaboration with international level professionals,

technological know-how, direct knowledge of professional workers and their requirements.

The Group has five production plants (Italy, Brazil, Mexico, Venezuela and Argentina, the latter

operative since 2013) and approximately 1,300 employees, of which about 400 are based in Italy.

Products and services are distributed in over 80 countries through a network of branches of 20

Countries and 150 distributors.

ALFAPARF Group is one of the leaders in Latin America in hair care and a benchmark in Italy for

beauticians in facial and body care. The Group’s founder and Chairman is Roberto Franchina, the

President is Attilio Brambilla, the Chief Executive Officer is Davide Cortinovis.

3

Alf

ap

arf

Gro

up

80Productsdistributed in

countries

Over thirty years’ of growth

1980.

The year the company was set up. Headquarters: Vaprio d’Adda, in the province of Milan. Employees:

just over ten. Roberto Franchina, founder, begins to develop the business in north and central Italy.

1989.Launch of the Semi di Lino line.

1990.Evolution of the Color is created, permanent dye.

1995.The first exports to Spain. Followed by arrival in Latin America and the establishment of the first

branches in Brazil, Mexico and Argentina.

1997-98.The first production plants are built in Latin America (Brazil, Mexico, Venezuela and Argentina).

Those in Venezuela and Argentina will later be closed down.

2000.The Italian production moves to Osio Sotto (Bergamo).

2002.A group of companies leads to the formation of ALFAPARF Group multi-national Italian cosmetics

company with a business volume of approximately 60 million euros: more than 90% of which is

generated abroad.

2003.The start of business in China.

4

Alf

ap

arf

Gro

up

5

Alf

ap

arf

Gro

up

2008.Work starts on expanding the plants in Italy, Mexico and Brazil. The start of the Private Label

project: aimed at developing production through sub-contractors.

2009.ALFAPARF acquires GTS Group, established in the late 70s, which produces and distributes cosmetic

products for professional and non-professional use, equipment for beauticians and services for

beauty institutes.

2010.ALFAPARF integrates the operational business of GTS: production is moved to the ALFAPARF

plant.

2011.With the new brand DIBI Milano the relaunching of the skin & body care gets underway. ALFAPARF

makes its début in the consumer channel in Brazil with the brand Altamoda è… (hair care),

distributed in shops specialized in hair care products, drug stores, perfume shops. The partnership

the Terme di Chianciano marks the entry into products for spa treatments.

2012.Relaunch of business in China with a new distribution network. Intensification of export to Russia.

Start of business in India, Morocco, Baltic Countries, Arab Countries. The new plant in Venezuela

becomes operative.

2013.Plant in Argentina completed: production starts. The sale of the brand Alta Moda è… is extended to

other Latin American markets. Russian branch opens. Significant investments in Italy on the brand

DIBI Milano.

Business Sectors

ALFAPARF Group has based its growth on hair care. Solid basic skills, research and collaboration

with international level hair stylists have allowed numerous brands to be affirmed in Italy and abroad.

The business in the professional beauty sector (skin & body care), which started in 2004 with the

launch of the brand TeN, received a strong boost in 2009 with the acquisition of GTS Group, owner

of brands with a consolidated market position. Today ALFAPARF is among the leading players in

the Italian professional beauty sector.

The strategy of diversification has led to building a range of solutions

which cover all professional requirements in hair care, facial care

and body care.

7

Alf

ap

arf

Gro

up

The brands

Eleven brands: some are by now long established benchmarks for hair care and professional beauty

professionals; others are the answer to new visions of wellness and beauty. All of them express the

pursuit of excellence and contribute to creating a unique portfolio of products.

Alfaparf Milano. It is the main brand, supported by a strong character of innovation. The product

portfolio, which covers all professional requirements (colour, shape, care, styling), is composed of

20 lines for a total of over 300 references. Semi di Lino and Evolution of the Color are the flagship

products of the brand.

Yellow. Born in Brazil to meet the requirements of the national population (hair straightening

products). Today it is commercialized all over the world and is aimed at a young target with seven

lines, 150 SKUs and a competitive value for money ratio.

Altamoda è... For the first time, Alfaparf group creates, designs and presents a brand for the

retail channel. After the successful launch in Brazil, Altamoda è …in 2013 has been launched in

Argentina too.

8

Alf

ap

arf

Gro

up

9

Alf

ap

arf

Gro

up

Olos, La Bellezza è Natura. It’s the cutting edge brand in research and natural beauty treatments.

DIBI Milano. With a 30 year history in professional beauty and distributed in over 30 Countries, the

brand is by now synonymous with beauty institutes. Attention to technology applied to beauty is

the distinctive quality of this offer, made possible through collaboration with prestigious universities.

The DIBI Milano beauty centres provide a diagnostic system, the latest equipment and top quality

lines of cosmetics with guaranteed and certified results.

Becos. Identifies a complete range of products, equipment and services for beauty professionals.

The Becos Club are oriented to a young target audience.

TeN. The acronym stands for Technology and (e) Nature, but also for “10” meaning the quality of

the performance. It identifies a wide range of products for advanced professional cosmetics.

Decoderm Make Up I Care. From research in the Group’s laboratories and beauticians’

experience, the first line in Make Up Care is born. Paraben free and perfume free. It knows your

skin, takes care of it, and brings out the beauty of every woman.

10

Alf

ap

arf

Gro

up

11

Alf

ap

arf

Gro

up

Solarium. It’s synonymous with tanning: a line of sun care products for face, body and hair

produced with advanced photo protective technology.

Thermae SPA. Born from the collaboration with Terme di Chianciano, it identifies a new line of spa

treatments for hair and body. Natural products completely paraben and paraffin free.

Tisalya. It’s the first line of medicinal herb-based liquid food supplements, cold extracted with

ultrasound technology. Mixed with the precious spa water of the Fonte Acqua Santa delle Terme di

Chianciano, the herbs create a product suitable for the protocols of body beauty.

Business and organizational model

ALFAPARF Group works according to a model which integrates research, production and

distribution, guaranteeing direct control of the whole value chain.

The operating activities are organized by business and geographical areas according to a matrix

defined model typical of multinational groups, which implies close functional collaboration among

the operating areas (hair care, skin & body care, sub-contractor production) and the foreign

branches of ALFAPARF Group (Europe, Americas and Asia). The model enables, amongst other

things, to effectively satisfy the evolution of requirements in the various markets in which the Group

operates.

The principles:

1.

Assisting professionals according to their respective characteristics.

2.

Continuous research for products and services able to improve the services provided

by professionals.

3. Ensuring the ability to satisfy the evolution of market needs at all times.

4.

Trend towards continual improvement.

5.

Circulating ideas and knowledge acquired from operating all over the world.

6.

Basing products and services on direct knowledge of professionals and on the

verification of their requirements.

12

Alf

ap

arf

Gro

up

Research and Innovation

Promoting research and innovation has always been one of ALFAPARF’s core strategies, translated

into numerous products which have made a name for themselves in Italy and abroad. A strong

impulse towards innovation derives from the collaboration with the best beauty professionals and

from the international distribution network which picks up on market trends and requirements and

gears research towards satisfying them.

In recent years the commitment to research has been intensified: the

activity has been expanded into new sectors and developed abroad,

as well; the research team has reached a total of 50 employees; it

has been enhanced by staff training.

In the hair care sector the biggest efforts have been made in recent years, specifically in hair color and

technical products like decolorants and straighteners; the latter to reduce the volume of frizzy and wavy

hair.

In the skin & body care sector the research work has been focused on moisturizing products,

anti-age and anti-cellulite products, in addition to matching particular products to equipment for

beauty treatments given that their effectiveness is closely connected to the method of application.

The Group’s research activity is mainly carried out in the central laboratory in Osio Sotto (Bergamo)

integrated with a Technical Centre and a Pilot Centre where products for hair care and beauty are

tested on volunteers.

In Osio Sotto, raw materials are evaluated and selected (used also in foreign production and rigorously

tested), product formulas are studied, some effectiveness tests are carried out. Safety and clinical

effectiveness of the products are certified by independent bodies.

Other research laboratories are situated in Brazil and Mexico.

15

Alf

ap

arf

Gro

up

Production

The production structure meets the needs of global distribution

with five plants in Italy, Brazil, Mexico, Venezuela and Argentina. The

production surface area has almost doubled in the last five years,

reaching 100,000 square meters: 35,000 in Brazil, 35,000 in Mexico,

15,000 in Italy, 5,000 in Venezuela and 10,000 in Argentina.

The expansion of the plants has taken place, since the early years of 2000, alongside the adoption

of a management system which has enabled the company to reach high standards of quality. The

Italian plant received ISO 9001 certification and will soon be operating according to the Good

Manufacturing Practice (GMP) which sets out methods, equipment, means and regulations for

production management to ensure appropriate quality standards.

The plants in Mexico, Brazil and Venezuela already operate according to GMP. The

compliance with quality standards for Italy and abroad is the responsibility of a function

of the group (Total Quality Management). Every plant has a quality control laboratory for

individual components, semi-worked, raw materials, packaging and finished products.

Know-how, presence in strategic geographical areas and operating flexibility have made ALFAPARF

an interesting industrial partner for multinational cosmetics companies and those operating in

great distribution. Therefore, production as a sub-contractor has been added to production of

the Group’s own brands. The first agreement, signed with one of the main global distributors of

cosmetics for professional use, was followed by important agreements with other multinationals.

of production surface area100.000m2

14

Alf

ap

arf

Gro

up

Distribution

The solid international distribution network is one of the Group’s strengths, supplying 300,000

customers in over 80 Countries.

The sales activity has been developed according to two operating models: distributors (with an

exclusive agreement with ALFAPARF) and branches (present in 20 countries other than Italy). The

preference for one model or the other varies based on the market (characteristics of requirements,

positioning of ALFAPARF, objectives for growth).

The activity of distributors (150 around the world) is supported by marketing services, training (over

50 centres) and sales assistance.

The branches, run by the ALFAPARF management can count on

over 500 agents who liaise with more than 50,000 professionals,

increasing the wealth of knowledge and experience which is vital for

picking up on new needs and promoting innovation.

150distributors around the world

17

Alf

ap

arf

Gro

up

19

Alf

ap

arf

Gro

up

Training for professionals

As well as its capillary geographical nature ALFAPARF has geared the sales network towards

the quality of the relationship with professionals. The target: to integrate the sale of products with

services which enable hair stylists and beauty professionals to manage their business activities

in the best possible way and provide prompt responses to new trends and requirements coming

from the market

The ability to pass from product supply to a wide range of services has, furthermore, taken on

strategic importance in professional cosmetics: speed of response and quality of solutions are

decisive arms for competing.

Starting from this vision, the Group has built a wide ranging offer

of training on technical professional aspects and on management.

Hair stylists, beauticians and estheticians, based on their own level

of experience and skill, can today find the most suitable solution for

their own needs regarding professional and entrepreneurial growth

in the courses organized by the Group.

Environmental sustainability, quality, safety

The business views environmental sustainability as not only an ethical commitment, but also a

strategic factor for competitiveness.

Particular attention has been paid to quality, meaning not only

the product’s performance or the compatibility of the industrial

processes, but also regarding a policy of development and protection

of human resources.

Over the years the Group has built an effective system of organizational procedures, analyses and

data collection in order to comply with current norms as far as health and safety in the workplace is

concerned.

Spreading and consolidating the culture of workplace safety is an objective which is translated in

action beyond mere compliance with norms. Much attention is given to informing and training staff

and managers, to providing workers with devices for individual protection, training them to use these

correctly, and monitoring compliance with safety norms.

20

Alf

ap

arf

Gro

up

23

Alf

ap

arf

Gro

up

Offices 22

Alf

ap

arf

Gro

up

EUROPE

Italy

BEAUTY & BUSINESS S.P.A. Via Cesare Cantù 1 20123 Milan

ALFA PARF GROUP S.P.A.Via A. Aldini 20640136 Bologna

Spain

ALFA PARF GROUP ESPANA SL Calle Bergueda 1, Local 3C Planta BajaEl Prat de LLobregatBarcelona

Portugal

MARESANA LDARua do espido 164-c Sala 105Edificio Vianorte 4470-177 Maia

Poland

POL.COSM SP. Z.O.O.UL. NOWA 2305-500 PiasecznoStara IwicznaWarsaw

Russia

Alfa Parf Russia s.r.l.Prospect Andropova 18Bld. 6, offices 4-11, 4-18115432 Moscow

NORTH, CENTRAL AND SOUTH AMERICA

United States

B.I.P. INC.8995 Northwest12th StreetFL 33172 Miami

Brazil

DELLY DISTRIBUIDORA DE COSMETICOS E PRESTAÇÃO DE SERVIÇOS LTDARodovia Presidente Dutra 4300 - parte 18 Bairro Jardim Jose Bonifacio Cidade de São João de Meriti, Rio de JaneiroCEP: 25.565-350

DELLY KOSMETIC COMERCIO E INDUSTRIA LTDAEstrada do Pedregoso, 3229 Distrito Industrial de Campo GrandeCampo Grande, Rio de JaneiroCEP: 23.078-450

Venezuela

DISMAR COSMETIC C.A.Carretera Nacional Guarenas, Guatire, Sector El Refugio, C. C. El Refugio Plata baja, Local PL-1Ciudad de Guatire, Estado Miranda

INDUSTRIAS VEPROCOSM C.A.Zona Industrial Guayabal, Calle La Guairita, Galpon N. 44, Guarenas, Estrado Miranda

Colombia

SABAMA LTDACarrera 13/91/68Santa Fè de Bogota

Ecuador

E.COS. S.A.Av. De Las AmericasEdificio Sono Pal Bodeba 16Guayaquinl

Perù

PERCOSM PERU SACJr. Bolognesi 125, of n. 1004MirafloresLima

Chile

COSMETICA CHI.COSM LTDAV Presidente Eduardo Frei Montala Bodega BBQuilicuraSantiago Norte

Argentina

PRODICOS S.A.Mozart s/n - Parcela 1388Centro Industrial Garín - CP 1619Escobar, Buenos Aires

Mexico

DOBOS S.A. DE C.V.Eye Norte n. 205 – maz 405JA 200Toluca

Guatemala

GUATEMALA COSMETICOS S.A20 Calle 26-30 Conjunto Empresarial DEC.V.Bodega 10, Zona 10Guatemala

El Salvador

CLIO COSMETICS, S.A. de C.V.71 Avenida Norte 315Colonia EscalonSan Salvador

Costa Rica

COSTA RICA COSMÉTICOS COSDIST SRLBarrio Lo Yoses Avenida 10San José

Dominican Republic

PORTA NUOVA S.A.Calle José Contreras 34, Zona UniversitariaSanto Domingo D.N

ASIA

China

ALFA PARF (SHANGHAI) TRADING CO.,LTD 102 Room 2 Building 50 Yu Yao Road Jin’an District Shanghai

OCEANIA

Australia

ALFHAIR LTDUnit 2, 389 Flemington RoadNorth Melbourne VIC 3051