1. Broadway Nails Product Submission
Presented to:
Presented by: Simon Roberts - Chemcorp International
Enzo Zovic - Counterpoint Marketing
May 2007

2. 1. Introduction: Company Profile
2. The Broadway Nails Difference & Market Share
3. Benefits for
Woolworths
4. Advertising
& Promotion
5. The proposed Broadway Range
6. New Line Support
7. Summary

3. Company Profile
Chemcorp International is a well-established company distributing hair, nails & beauty products since Chemcorp is a market leader in hairbrushes and hair accessories with over 15,000 retailers stocking their brands throughout Australia and New Zealand. Chemcorp products are exported to over 20 countries throughout the world.
Chemcorp’s Head Office is located in Sydney, with affiliate offices in Shenzhen and Hong Kong. Chemcorp International Shenzhen China office was established to co-ordinate and supervise production and quality control for many of its products.

4. Total US Artificial Nails 26 weeks
Total US Grocery/Pharmacy/Mass Merchandisers
67.6 share
+6.3 points
+1.4
+3.8
26.6 share
-5.6 points #1
-4.9
+0.2 #2
-0.9
-0.7
-0.4
+1.1
+0.4
+0.3
-0.1 #3
+0.0
-0.1 #4
68.8 share
+8.0 points
Total US Pharmacy
+2.5
Share strength and growth of Kiss and Broadway, the #1 and #2 brands in Grocery/Pharmacy/Mass Merchandiser markets.
Pacific World brands, Nailene-Fingr’s-Revlon, #3, #4 and #5, continue to show minimal share growth or declining shares.
+4.0
24.6 share
-6.4 points
-5.2
+0.2 #1 #2
-1.4
-0.8
-0.5
+1.5
+0.0
+0.0
-0.2
+0.0
-0.1 #3 #4
Share & Share Change
Source: ACNielsen 26 week Data ending 20/1/07

5. Artificial Nail Top 25 category items
The Top 25 SKU’s represent 33.0% of the entire Artificial Nail Category
Kiss & Broadway represent all of the US top 22 items and 24 of 25 best US SKU’s #1
00554 B’way Real Life
$710,355 –2.1%
#10
00553 B’way Real Life
$259,703 –1.0%
#19
10390 Kiss 1 Easy Step Deco’d
$201, % #2
00556 B’way Real Life
$594, %
#11
16004 Kiss 100 Nails
$243, %
#20
00002 Kiss Complete Salon Acrylic
$195,924 –3.6% #3
00385 Kiss CustomFit French
$404,329 –10.6%
#12
00003 Kiss Acrylic Sculpture
$238,546 –0.7%
#21
00384 Kiss CustomFit French
$186, % #4
00555 B’way Real Life
$366, %
#13
00086 Kiss All or One Remover
$234, %
#22
20004 Kiss 100 Nails
$172, % #5
#14
10419 B’way Fast French
$234, %
10412 B’way Fast French
$337, %
#23
12503 IBD Salon Nail Glue
$168,844 –21.4%
Strength of Kiss & Broadway skus in Artificial Nail category. Top 22 best selling skus. 24 of 25 best selling skus.
00383 B’way Deceptions
$233, % #6
00088 B’way Deceptions
$334, %
#15
#24
00808 Kiss Fashion Toenails
$137,369 –24.7%
00388 Kiss CustomFit French
$230, % #7
10443 Kiss 1 Easy Step French
$298, %
#16
#25
00807 Kiss Fashion Toenails
$112,177 –20.3%
02069 Kiss Procision Glue
$214, % #8
11012 Kiss Max Speed Glue
$275, %
#17
00562 B’way D’Luxe Nail Art
$208, % #9
00387 Kiss CustomFit French
$270, %
#18
Source: Grocery/Pharmacy/Mass Merchandisers ACNielsen 12 week Data ending 20/1/07, (Dollar Volume, % Chg v. LY)

6. Food/Pharmacy/Mass Merchandisers Artificial Nails By Segment
The Artificial Nail Category is a $44.8 million category posting growth of 3.4%, over the past 26 weeks.
Traditional French and Decorated Nails represent 45.2% of the entire category with a growth rate of 13.3% and 3.1%, respectively.
Segments w/in the Artificial Nail category & % breakdown.
Multiple products required in a typical nail application means additional purchases for the retailer.
Source: ACNielsen 26wk data ending 20/1/07

7. The Broadway Nails Difference
Compared to our competitors, Broadway Nails have:
Superior quality plastic
Tapered nail design
Snugfit cuticle for comfort
Comfortable nail arches
No. 1 selling range of artificial nails in the USA*
Market leader in 45 countries throughout the world
*Based on A.C. Neilsen Data

8. Benefits for No. 1 artificial nail range in the world
The first retail (grocery) chain to list the product
All product inners of 2 or 6
Stand out packaging & innovative product design will grow the category
Competitive Margins & Pricing
Product support through Print advertising & promotion
Radio Frequency Electronic Article Surveillance Labels on most products

9. Advertising & Promotion
Broadway Nails has editorial & magazine advertising across major Australian magazines such as Dolly, Girlfriend, Cosmopolitan, New Idea, NW & Cleo. Press advertising in Body + Soul, Sunday Telegraph.
Advertising would be tagged - Available at
if ranged in all stores.

10. The Broadway Full Range

11. Broadway Top 27 Selling SKUs

12. Proposed Planogram for
Broadway Top 10 Selling SKUs

13. Proposed Planogram for (cont.)
Chemcorp
Item Code
Barcode No.
Description
Inner
Pack
List
Price Per/ Inner *
Less
W/Housing
5% *
NETT
Price
Per
Unit*
Sell (Excl GST) * $
Margin *
RRP
(Incl.
GST)
GP Based on Sell (Excl GST) 1
03.090
#BSF01 Real Life French - Practical 2
$15.92
$15.12
$7.54
$14.50
$6.96
$15.95
48%
03.091
#BSF02 Real Life French - Everyday 3
03.093
#BSF04 Real Life French - Anywear 4
03.072
#BFD02 Fast French Nail Kit - Pink
$13.40
$12.73
$6.35
$12.22
$5.87
$13.45 5
03.075
#BFD05 Fast French Nail Kit - Slope 6
03.084
#BGG05 Natural Deceptions - Clever
$14.93
$14.18
$7.07
$13.59
$6.52
$14.95 7
03.045
#BNK08 Two Step - Short Square
$11.93
$11.33
$5.65
$10.86
$5.21
$11.95 8
03.140
#BGL300 Long Wear Nail Glue
$4.94
$4.69
$2.34
$4.50
$2.16
$4.95 9
03.160
#BBF200 Black Pro Grinder
$11.84
$11.25
$1.87
$3.59
$1.72
$3.95 10
03.161
#BBF222 4-Way Ultra Shiner
* Excludes GST

14. Broadway Nails Projected Sales at CostNo
Chemcorp
Item Code
Barcode No.
Description
Est. Sales
Per week
Per Store
(Units)
Est. 6 Months
Sales
No. Stores
Ranked
Net Cost
Excl GST*
NETT Sales Cost Excl. GST 1
03.090
#BSF01 Real Life French - Practical 2 52
400
$7.54
$156,832
03.091
#BSF02 Real Life French - Everyday 3
03.093
#BSF04 Real Life French - Anywear 4
03.045
#BNK08 Two Step - Short Square 26
$5.65
$58,760 5
03.084
#BGG05 Natural Deceptions - Clever
$7.07
$73,528 6
03.072
#BFD02 Fast French Nail Kit - Pink
$6.35
$66,044 7
03.075
#BFD05 Fast French Nail Kit - Slope
$66,040 8
03.140
#BGL300 Long Wear Nail Glue
$2.34
$24,336 9
03.160
#BBF200 Blank Pro Grinder
$1.87
$38,896 10
03.161
#BBF222 4-Way Ultra Shiner
*PROJECTED SALES AT NETT COST EXCLUDING GST.
TOTAL: $836,996
PROJECTED TRADING TERMS REBATE: $98,347

15. New Line Support Trading Terms New Line Support for 26 weeks
Warehousing 5% off invoice
Business Plan Trading Terms 11.75% by claim
Gross Margin %
New Line Support for 26 weeks
1 x Health & Beauty Catalogue
1 x Fly Buys Promotion
Promotion Program for 12 Months
Grocery Exclusive
If ranged in 600 stores nationally, Broadway Nails would be exclusive to Woolworths supermarkets for 12 months from date of ranging
Total Gross Margin %

16. Exit Strategy Support
Chemcorp will support Woolworths to ensure Broadway Nails is successful
If products do not perform after 26 weeks we will pick up stock
From Woolworths Warehouses
Assist Woolworths in mark downs at store level to help clear stock (mark down 50% off invoice cost)

17. Summary
No 1 Selling range of artificial nails in the U.S.A, U.K. and 45 countries.
Support via extensive magazine advertisements and editorials
In store support via Counterpoint Marketing (420 merchandisers nationally)
Competitive retail pricing on shelf
Out selling competitors in Australian mass merchant retailers
Gross Profit 48% plus (ranged into warehouse)
Exit Strategy for Woolworths