Aesop Retail Operations Manual

Aesop Retail Operations Manual

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 2 UPDATED SEPTEMBER 2019 CONTENTS ABOUT THIS MANUAL ............................................................................................................................................................................................4 I. PURPOSE...................................................................................................................................................................................................4 II. COPYRIGHT AND CONFIDENTIALITY NOTICE.......................................................................................................................................4 III. GLOSSARY OF TERMS.............................................................................................................................................................................5 1. ATTENDANCE EXPECTATIONS.........................................................................................................................................................................6 1.1 SHIFT ATTENDANCE.................................................................................................................................................................................6 1.2 MANAGING BREAKS DURING THE DAY .................................................................................................................................................6 1.3 ANNUAL LEAVE .........................................................................................................................................................................................6 1.4 SICKNESS, ILLNESS OR PERSONAL LEAVE..........................................................................................................................................6 1.5 ROSTERS / SCHEDULES..........................................................................................................................................................................6 2. OPENING AND CLOSING PROCEDURES..........................................................................................................................................................7 2.1 OPENING PROCEDURES .........................................................................................................................................................................7 2.2 THROUGHOUT THE DAY..........................................................................................................................................................................7 2.3 CLOSING PROCEDURES.........................................................................................................................................................................7 3. ATMOSPHERE .....................................................................................................................................................................................................9 3.1 OIL BURNERS............................................................................................................................................................................................9 3.2 DOOR POSITION .......................................................................................................................................................................................9 3.3 NEIGHBOURLY RELATIONS.....................................................................................................................................................................9 3.4 MUSIC.........................................................................................................................................................................................................9 3.5 HOSTING....................................................................................................................................................................................................9 4. STORE CLEANLINESS AND MAINTENANCE OF FITTINGS AND FIXTURES...............................................................................................10 4.1 COUNTER AND POINT OF SALE EQUIPMENT .....................................................................................................................................10 4.2 RUBBISH BINS.........................................................................................................................................................................................10 4.3 SUSTAINABILITY .....................................................................................................................................................................................10 4.4 GENERAL CLEANING (FLOOR, WALLS, WINDOWS, SHELVES, ETC.)...............................................................................................10 4.5 CLEANING OUTSIDE WINDOWS AND IMMEDIATE AREA IN FRONT OF STORE..............................................................................10 4.6 CLEANING MATERIALS ..........................................................................................................................................................................11 4.7 MAINTENANCE OF FITTINGS AND FIXTURES .....................................................................................................................................11 5. MAINTENANCE OF PRODUCT ON SHELVES .................................................................................................................................................12 5.1 REPLENISHING PRODUCTS AND PREPARING FOR VM CHANGES..................................................................................................12 5.2 PRODUCT DISPLAY ................................................................................................................................................................................12 5.3 MAINTENANCE OF TESTERS.................................................................................................................................................................12 6. SECURITY...........................................................................................................................................................................................................14 6.1 ACCESS TO STORE KEYS .....................................................................................................................................................................14 6.2 CASH DRAWER KEYS.............................................................................................................................................................................14 6.3 STORE ALARM ........................................................................................................................................................................................14 6.4 HEALTH AND SAFETY ............................................................................................................................................................................14 6.5 CROWD CONTROL..................................................................................................................................................................................14 6.6 ACCEPTABLE CONDUCT OF CLIENTS IN STORE ...............................................................................................................................15 6.7 THEFT.......................................................................................................................................................................................................15 7. PROCESSING TRANSACTIONS .......................................................................................................................................................................16 7.1 USING THE POINT OF SALE (POS) .......................................................................................................................................................16 7.2 MANUAL RECEIPT BOOKS.....................................................................................................................................................................16 7.3 REQUESTS FOR DISCOUNTS................................................................................................................................................................16 7.4 LOCAL TRADER AND FRIENDS OF AESOP (FOA) ...............................................................................................................................16 7.5 CORPORATE GIFTING SERVICE ...........................................................................................................................................................17 7.6 AMENITY ACCOUNTS .............................................................................................................................................................................17 7.7 PACKAGING AND WRAPPING PRODUCTS...........................................................................................................................................17 7.8 PURCHASE QUANTITY LIMIT.................................................................................................................................................................17 7.9 CUSTOMER RECORDS...........................................................................................................................................................................17 7.10 PRODUCT RETURNS ..............................................................................................................................................................................18

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 3 UPDATED SEPTEMBER 2019 7.11 REPORTING FAULTY PRODUCT ...........................................................................................................................................................18 7.12 CUSTOMER COMPLAINTS .....................................................................................................................................................................18 7.13 SENSITIVE SKIN AND NEGATIVE SKIN REACTIONS...........................................................................................................................19 7.14 SAMPLING AND OTHER COMPLIMENTARY POSM..............................................................................................................................19 8. CASH HANDLING AND SALES REPORTING ..................................................................................................................................................20 8.1 HANDLING CASH AND CREDITS CARDS..............................................................................................................................................20 8.2 BANKING..................................................................................................................................................................................................20 8.3 PETTY CASH............................................................................................................................................................................................20 8.4 DAILY SALES REPORTING.....................................................................................................................................................................20 8.5 VERITAS...................................................................................................................................................................................................21 9. INVENTORY MANAGEMENT.............................................................................................................................................................................22 9.1 ORDERING AESOP INVENTORY & POINT OF SALE MATERIAL .........................................................................................................22 9.2 RECEIVING A DELIVERY ........................................................................................................................................................................22 9.3 STORAGE OF INVENTORY.....................................................................................................................................................................22 9.4 STOCK ROTATION (FIFO) AND EXPIRATION .......................................................................................................................................23 9.5 INVENTORY ADJUSTMENTS AND PRODUCT WRITE-OFFS...............................................................................................................23 9.6 STOCKTAKE & CYCLE COUNTING........................................................................................................................................................23 9.7 ORDERING STATIONERY.......................................................................................................................................................................24 9.8 TESTERS..................................................................................................................................................................................................24 10. COMMUNICATION ...........................................................................................................................................................................................25 10.1 NON-VERBAL COMMUNICATION...........................................................................................................................................................25 10.2 GENERAL IN-STORE COMMUNICATION...............................................................................................................................................25 10.3 TELEPHONE ............................................................................................................................................................................................25 10.4 WRITTEN COMMUNICATION..................................................................................................................................................................25 11. BACK OF HOUSE.............................................................................................................................................................................................26 11.1 CONSUMING FOOD AND DRINK............................................................................................................................................................26 11.2 PERSONAL BELONGINGS......................................................................................................................................................................26 12. AESOPIAN PROTOCOLS AND EXPECTATIONS ..........................................................................................................................................27 12.1 KEY PERFORMANCE INDICATORS (KPIs)............................................................................................................................................27 12.2 PERSONAL TELEPHONE CALLS ...........................................................................................................................................................27 12.3 MOBILE TELEPHONES ...........................................................................................................................................................................27 12.4 SMOKING .................................................................................................................................................................................................27 12.5 AESOPIAN COMPLIMENTARY PRODUCT.............................................................................................................................................27 12.6 AESOPIAN DISCOUNT ............................................................................................................................................................................27 12.7 GROOMING AND PRESENTATION ........................................................................................................................................................28 13. COMPUTER FACILITIES..................................................................................................................................................................................29 13.1 COMPUTER USE AND INTERNET ACCESS..........................................................................................................................................29 13.2 IT SUPPORT.............................................................................................................................................................................................29 13.3 AGORA AND ONEDRIVE.........................................................................................................................................................................29 13.4 BACK OF HOUSE DEVICES....................................................................................................................................................................29

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 4 UPDATED SEPTEMBER 2019 About This Manual I. PURPOSE This manual has been produced to provide guidance on all operational procedures and policies encountered when working for Aesop in a retail environment. It does not replace existing policies in your workplace but rather provides the framework for these policies and standards. Specific differences in local policy will be provided by local Retail Operations and should be referenced together with this manual. If in doubt, please do not hesitate to contact a local Retail Operations representative. This manual will be reviewed on a yearly basis (minimum), with all markets being notified of any changes, and be stored on the Global Retail Operations Agora site. This Manual has been written with a specific focus on Aesop Signature Store operations. It is understood that other Aesop spaces such as ECommerce stores or Counters within department stores will need to follow their own specific policies and procedures. However, the attention to detail and thoughtfulness promoted in this manual should be carried through all Aesop spaces. For more information on e-commerce or Counter policies, please refer to the appropriate guides. All procedures and guidelines outlined in this manual should be applicable throughout all regions. However, we should ensure that wherever possible, we conduct ourselves in a manner sensitive to the culture of the communities we are present in. If any practices outlined here are in variance with local law, local law should prevail. Policies and procedures in this manual are to be followed as strictly as possible unless otherwise stated. As part of operational training, all Aesopians are to read and understand expectations outlined in this manual to be put in to practice when working in Aesop retail environments. Local factors may influence changes to these set policies and procedures. Such changes will be devised and implemented by local management ensuring Aesop directives are upheld. For more specific information on local standards, please refer to your Regional Agora site. This manual will reference many other instructional documents, all of which can be found on Agora by searching with relevant keywords. II. COPYRIGHT AND CONFIDENTIALITY NOTICE COPYRIGHT This Retail Operations Manual (Manual) and the compilation of all content in the Manual is the property of Emeis Cosmetics Pty. Ltd. (Emeis) or its content suppliers and is protected by Australian copyright laws. CONFIDENTIAL INFORMATION This Manual is the proprietary and confidential information of Emeis, and is provided to you in your capacity as either: (i) an employee of Emeis or its affiliates; (ii) an authorised distributor of Aesop products (Distributor); or, (ii) an employee of a Distributor (‘you’ or ‘your’). You may only use this Manual in the manner and for the purposes set out below. You may not share this Manual or any of its contents with any third party in any form. At the request of Emeis you must immediately return this Manual to Emeis. INTELLECTUAL PROPERTY All graphics, photographs, logos and product names which are pertaining to the Aesop brand and contained within this Manual may be trademarks (registered or unregistered) or the proprietary property of Emeis or its affiliates in other countries (each and all deemed to be ‘Aesop

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 5 UPDATED SEPTEMBER 2019 Intellectual Property’). Aesop Intellectual Property may not be used except as is strictly permitted for the performance of your role as: an employee of Emeis or its affiliates, a Distributor, or an employee of any Distributor, or, where Aesop has otherwise provided its express written consent. Unless expressly authorised by Emeis in writing, Aesop Intellectual Property may not be used in connection with any third party product or service or used in any manner that disparages or discredits Emeis or its affiliates. This Manual or any portion of it may not be reproduced, copied, modified, duplicated, disclosed, copied, sold, resold or otherwise exploited for any purpose other than as set out in this Copyright and Confidentiality Notice without the express written consent of Emeis. LICENCE Emeis grants you a limited licence (Licence) to make personal use of this Manual for the purposes of your employment duties at Aesop during the term of your employment, or for the purposes of performing your obligations as a Distributor or employee of a Distributor (as applicable). This Licence does not permit any resale or commercial use of this Manual, any collection and use of any parts of this Manual (including but not limited to product listings, descriptions, or prices), any derivative use of this Manual, or, any disclosure, reproduction or copying of information contained in this Manual. III. GLOSSARY OF TERMS KPI: ‘Key Performance Indicator’. The way that we measure success. POS: ‘Point of Sale’. The place in store where the sale is processed – where the Retail Pro or Cegid system is located POSM: ‘Point of Sale Material’. All non-sellable items used to make a sale such as receipt paper, sachets, testers, price lists, etc. SKU: ‘Stock Keeping Unit’. Anything that is for sale is called a SKU. VM: ‘Visual Merchandise’. The way in which product is displayed. This could be simple or very elaborate.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 6 UPDATED SEPTEMBER 2019 1. Attendance Expectations 1.1 SHIFT ATTENDANCE Aesopians who are opening a store are to arrive at least 15 minutes before opening to prepare themselves and the space. This is reflected in their roster and they are paid accordingly. Attendance is recorded using the approved rostering system. Aesopians are to log in and log out at the beginning and end of each shift respectively, and comply with all locally specific rostering requirements. (See Regional Agora Site for localised information) The times recorded are used to calculate paid time. In the event that an Aesopian forgets to log in or log out, the Store Manager (or appropriate contact) is to be notified and will rectify the discrepancy. 1.2 MANAGING BREAKS DURING THE DAY Please ensure breaks are only taken once a colleague has been informed. Where practicable, breaks are to be scheduled outside of peak sales periods to ensure a high level of customer service is maintained. When in store alone and bathroom / lunch breaks are necessary, please ensure the doors are locked and the approved ‘away from store’ sign is customised with your return time and placed on the front door. 1.3 ANNUAL LEAVE Staff are requested not to apply for leave over peak trading periods of the year. Exceptional requests will be considered on a case by case basis. Please refer to Regional Agora Sites for specific local procedures about applying for and approving annual leave. 1.4 SICKNESS, ILLNESS OR PERSONAL LEAVE Please refer to Regional Agora Sites for specific local procedures about sick leave eligibility and approval procedures. 1.5 ROSTERS / SCHEDULES It is the Store Manager’s responsibility to ensure that their store is adequately staffed at all times. Best practice is that rosters are created in the approved rostering system by Store Managers and approved by the relevant RBM or Retail Operations representative. These are finalised at least one month in advance. Attendance is checked daily against rostered times. It is the responsibility of the Aesopian to check their roster and ensure proper attendance. For more information on local rostering requirements, please refer to Regional Agora Sites.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 7 UPDATED SEPTEMBER 2019 2. Opening and Closing Procedures The tasks outlined below are to be distributed by the Store Manager. Every Aesopian carries the responsibility for general store maintenance and is expected to take initiative where they see standards of tidiness fall. It should be in the interest of every Aesopian to ensure the space they are working in is kept up to Aesop’s exacting standards. An example of a comprehensive Regular Retail Task Checklist of daily, weekly and monthly tasks can be found on the Global Retail Agora site. This checklist can be downloaded and customised per store. Tasks are to be actioned by all Retail Consultants under the guidance of the Store Manager 2.1 OPENING PROCEDURES Individual with opening responsibilities to commence work at least 15 minutes before the store opening time ⎯ Turn lights and music equipment on ⎯ Turn on computers and any other relevant technical equipment. Ensure payment terminals and thermal printers are stocked with paper. ⎯ Open Point of Sale system, Outlook and internet browser to Agora Home Page. ⎯ Count the cash float in the till and, in the case of discrepancy, re-count previous day’s banking. ⎯ Position any necessary paraphernalia outside the store (i.e. Testers/ dog bowls / plants etc.) ⎯ Check answering machine for any phone messages and follow up throughout the day if necessary ⎯ Turn oil burners on and add five drops of approved Oil Burner Blend to each (or as per specific burner guidelines) ⎯ Turn air conditioner / heater on if required ⎯ Ensure testers are in impeccable condition ⎯ Ensure there are sufficient clean towels, tester sticks and cotton pads at each sink ⎯ Clean door and handle with Ethanol ⎯ Clean taps, sinks and all metals, ensuring all are free from marks ⎯ Open Weekly Target Sheet and review the daily target ⎯ Prepare customer refreshments (tea, water, hot/cold towels) if applicable ⎯ Review and discuss any handover notes 2.2 THROUGHOUT THE DAY ⎯ Dust shelves, products and other surfaces from top to bottom ⎯ Maintain cleanliness of store (including floor, POS, testers, sinks, taps, windows, mirrors, VM etc.) ⎯ Re-stock product on shelves and replenish POSM (towels, tester sticks, cups etc.) ⎯ Complete other necessary tasks following Store Manager guidance 2.3 CLOSING PROCEDURES ⎯ Restock shelves and drawers with product ⎯ Ensure testers and sinks are clean for immediate use upon opening the doors the following day ⎯ Vacuum / mop / sweep flooring ⎯ Bring in any necessary paraphernalia from outside the store (i.e. testers / dog bowls / plants etc.) ⎯ Close the front entrance door at closing time. If there is a client inside, or entering the store while closing, let them in, close the door, perform the consultation and see them out

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 8 UPDATED SEPTEMBER 2019 ⎯ Individual with opening responsibilities may now lock door, count the currency and perform all End of Day procedures on the POS to close all registers. ⎯ Leave the allocated amount of float (see Regional Agora Site) in the cash drawer ⎯ Enclose cash deposit amount in the relevant banking bag and transfer to the safe, ready to be deposited at the bank ⎯ Complete Banking Reconciliation Form found on your Regional Agora Site ⎯ Attach credit card payment terminal settlement and all individual transaction receipts to the Z-out Report and store with other Z-outs for the current month ⎯ Complete and submit an online Agora End of Day form ⎯ Close all running computer programs and turn off the printer ⎯ Clean Oil burners and switch off ⎯ Turn off music and unplug iPod from power ⎯ Turn off air conditioner / heater and main lights. Certain lights are left on during the night. Please check with Store Manager if unsure. ⎯ Empty bins and discard waste ⎯ Clean all sinks ⎯ Ensure the back of house, kitchen and bathroom facilities are clean and tidy ⎯ When all tasks are complete, exit the store and look back in to check that all is as it should be. Make any changes as required. ⎯ Set the alarm (if applicable), exit immediately ⎯ Lock the door, and double-check it is locked

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 9 UPDATED SEPTEMBER 2019 3. Atmosphere Our spaces are designed to stimulate all five senses through the distinct atmosphere we create. It is our aim that Aesop customers return not only for our superlative products but for the way they feel when they are in an Aesop space. 3.1 OIL BURNERS Only Aesop-approved oil burners are to be used in store. These can be ordered with other point of sale items. The electric oil burners are discretely placed out of view and remain switched on throughout the day. Add no more than five drops (or as per manufacturer instructions) of the either Jean or Vittorio, Aesop’s two in store burner blends, to ensure the store is aromatically appealing. Replenish oil burners on the hour, every hour. We want our customers to smell the space before they see it. Wipe clean and sterilise burners at the end of each day. 3.2 DOOR POSITION Our spaces are designed to be inviting. To avoid precluding this intention, keep the front door open. Open doors in retail environments convey an invitation for clients to explore and discover the store. Ensure that doors are never obstructed and weather permitting, always remain open. Wherever possible, at least one consultant should be situated near the door, ensuring a warm welcome from the moment a customer walks into the store. If this is not possible, attention is to be paid to the store entrance at all times, ensuring consultants are aware of anyone entering the store and welcoming them accordingly with proper Aesop hosting standards. Closed doors are only acceptable in severe weather conditions when it is necessary to maintain a comfortable temperature in store. An open door with cooling or heating appliances on is undesirable – please consider the environmental impact of this act. When the door is shut, be on hand to open and close it for the customer. 3.3 NEIGHBOURLY RELATIONS It is Aesop policy that we extend a warm hand and develop positive relationships with all our trading neighbours. Upon establishing a store, introductions are to be made with all adjacent neighbours and small sample packs provided to facilitate an understanding of Aesop. This is to be initiated by the Store Manager. 3.4 MUSIC Only Aesop approved music is to be played in store via the Soundtrack Your Brand app located on the store iPod. Multiple approved playlists can be chosen from by Aesop staff to suit the desired ambience of the store. Care is to be taken when choosing a playlist to ensure the mood of the season, time of year or festivity is reflected appropriately. Specially selected playlists or composed music may be played during events or campaigns. In this instance, guidance will be provided by local Marketing or Retail Operations teams. 3.5 HOSTING At Aesop, the notion of hosting is of the utmost importance to us. We welcome, guide and farewell our customers in a manner akin to a friend visiting our home. A range of tools are at your disposal to exude warmth and hospitality, such as oshibori, serving drinks, stowing bags or jackets, offering a spritz of Immediate Moisture Facial Hydrosol on a hot day or providing local recommendations to visitors to the area. To learn more about hosting at Aesop, please seek guidance from your Manager or local Training representative and refer to the Oshibori and Serving Drinks policy documents on Agora.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 10 UPDATED SEPTEMBER 2019 4. Store Cleanliness & Maintenance of Fittings and Fixtures 4.1 COUNTER AND POINT OF SALE EQUIPMENT Counter and point of sale equipment (such as computers, keyboards, scanners, cords and cables etc.) must be clean and tidy at all times. The counter is to be wiped regularly with an approved cleaning product, especially after busy periods. 4.2 RUBBISH BINS General waste and recyclables bins located on the shop floor, back of house and bathroom must be emptied at the close of business each day, or whenever necessary throughout the day. It is recommended that bin liners are used in general waste bins for ease of emptying rubbish and to maintain a clean receptacle. Where possible, please reuse plastic packaging (such as the plastic bags use to ship Aesop Cotton Bags) to line small bins, instead of using a new bin liner. Store Managers are to provide guidance as to where and how cardboard and other recyclable items may be disposed of. 4.3 SUSTAINABILITY Aesop actively seeks to understand the social and environmental risks and impacts within our organisation and are committed to taking proactive steps to minimise these. Within a retail setting, all efforts to reduce unnecessary wastage of resources are to be taken. Specific areas of focus for retail spaces are water, paper and electricity. Wherever possible and within reason, consultants are to take steps to preserve these resources. Further, every effort should be made to recycle relevant materials. To learn more about Sustainability at Aesop, please visit Agora. 4.4 GENERAL CLEANING (FLOOR, WALLS, WINDOWS, SHELVES, ETC.) All internal concrete, tiled and wooden floors must be swept and mopped at the end of each day. Carpeted flooring is to be vacuumed at the end of each day. All other surfaces visible to clients must be cleaned throughout the day as required. Stock and stationery drawers are to be kept clean and tidy at all times, with the same care taken as to product on display. Please maintain these areas as if they may be viewed by customers at any time. All product must be kept free of dust and wiped or dusted as necessary throughout the day. Surfaces under product must also be wiped clean. Interior window sills and any other shelving must be kept dust and deceased insect free at all times. Bathrooms are to be cleaned at the end of each day, ensuring that there is an adequate supply of hand towels, hand wash and unbleached, recycled toilet paper. 4.5 CLEANING OUTSIDE WINDOWS AND IMMEDIATE AREA IN FRONT OF STORE Ensure the footpath directly outside the store is clear of rubbish and swept each morning. All glass, inclusive of windows, must be cleaned properly with an appropriate cleaning product at the beginning and end of each day to remove fingerprints, marks and smudges. Windows and mirrors must be maintained to a spotless standard at all times and consistently reviewed throughout the day. Store windows must be thoroughly cleaned once per week (or as directed by local Retail Operations) either by an external cleaner or rostered Aesopians.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 11 UPDATED SEPTEMBER 2019 4.6 CLEANING MATERIALS Cleaning materials must never be left within view of clients. Ensure that all equipment and materials are stored out of sight. Any branded cleaning products used in the front-of-house may be decanted into spare amber glass/plastic bottles if safe to do so, otherwise should only be used before or after store opening hours Only Aesop issued cotton handtowels are to be used during sink consultations. Older, stained towels can be repurposed for cleaning or dusting but are to be kept out of customer’s view. All towels are to be laundered once or twice per week as required, either using in-house washing facilities or an external laundry service. Ethanol (in a provided glass brown bottle with an Aesop ‘Ethanol’ label) is to be used on Aesop product (excluding Fragrance and Room Spray bottles) and stainless-steel fittings only. To clean other surfaces, a gentler cleaning option is to be used to prevent unnecessary damage to surface finishes. In some cases, Body Cleansers, Aesop Animal and Hand Wash (with the exception of exfoliating products) may be used to clean certain surfaces. The use of Aesop product for cleaning will ensure continuity of fragrance within the store. Local Retail Design and Development will provide further details regarding cleaning unique surfaces in each space. This information is to be passed on to consultants by the Store Manager. 4.7 MAINTENANCE OF FITTINGS AND FIXTURES Minor interior repairs and maintenance such as plumbing, electrical and servicing of fixtures are to be arranged by the Store Manager following local procedure (see Regional Agora Site). Major structural maintenance or repair must be arranged with the assistance of RBMs and local Retail Operations. Spare light globes are to be kept in stock and replaced immediately when broken. Store equipment such as air conditioning units and refrigerators are to be cleaned regularly and serviced as required. It is the Store Manager’s responsibility to ensure that maintenance issues are followed up and addressed in a timely and efficient manner with minimal disruption to store operations.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 12 UPDATED SEPTEMBER 2019 5. Maintenance of Product on Shelves 5.1 REPLENISHING PRODUCTS AND PREPARING FOR VM CHANGES Every role at Aesop is connected, and to ensure the best result, all Aesopians must work collaboratively. With regards to keeping store inventory at a financially reasonable level, Visual Merchandisers and Store Managers are expected to cooperate with regular communication. There is a fine balance between maintaining an abundant and generous VM display while ensuring economically suitable stock levels. This can only be preserved through communication and understanding on both sides. Visual merchandise displays are to be maintained at all times. The display format set by the Visual Merchandiser may only be altered with their consent. Store Managers are welcome to communicate intended changes to the Visual Merchandiser and then send photographs of the new display for final approval. It is important to begin preparing for large display changes before the Visual Merchandiser arrives at your store. Stock that is planned for a new theme or campaign is to be isolated and removed from the storage area, cleaned and prepared in advance. Aesopians are to assist Visual Merchandisers when requested, however priority is always to serve clients. 5.2 PRODUCT DISPLAY All product visible to customers on shelves or in shop floor storage must be aligned in rows with labels facing the same way. After busy periods such as lunch time rushes etc., time is to be allocated to check that all product continues to be neatly merchandised. The spouts on 500 mL pumps must all be aligned in the centre of the gap in the label. To achieve this while ensuring the recommended Period After Opening (PAO) timeframe is not compromised, gently twist the spout in a clockwise direction (the opposite direction to the ‘Open’ arrow on the spout) until the spout is aligned in the centre of the gap in the label. It is vital that the base of the pump is not untwisted and remains tightly closed at all times. 5.3 MAINTENANCE OF TESTERS Testers are to be in immaculate condition at all times. The arrangement of testers at the sink is to be determined by the local VM representative and maintained in this order by all retail staff. After a consultation has concluded, any available staff are to tidy up the sink as soon as possible. This does not necessarily mean that the consultant who performed the consultation will clear away the testers and used towels etc. Priority is to have the sink cleared as soon as possible. Internal jar rims, as well as the inside of lids and caps, are to be wiped over daily with Ethanol and disposable tissues to ensure product is always clean (see image below). Only Ethanol is to be used when cleaning testers as it will not negatively impact the product formulations. Incorrect: Correct: Testers are to be replaced as soon as their contents drop below one-third full. A good indicator for this is if the product has fallen below the line of the label. An exception to this rule is 10 mL Parsley Seed Anti-Oxidant Eye Cream tester which should be replaced once the glass at the

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 13 UPDATED SEPTEMBER 2019 bottom becomes visible. Testers should be replaced before this point if they begin to look untidy or worn. Please ensure any damaged caps or pumps are promptly replaced. Tester labels must always be forward facing and presented in the approved order. Sufficient tester sticks, cotton pads and tissues are to be on hand at all times. Tissues are to be removed from their cartons, and the carton disposed of responsibly.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 14 UPDATED SEPTEMBER 2019 6. Security Staff and Customer safety are paramount. Staff are to be alert at all times. At no time, nor for any reason should a staff member place themselves in harm’s way. 6.1 ACCESS TO STORE KEYS Staff members who open stores will be provided with a store key. It is the responsibility of the key holder to keep the key safe at all times. In the case of a lost key, please notify the Store Manager and the RBM immediately. Should a key be lost, the Store Manager is to arrange for the locks to be changed without delay. Each Store Manager (or central Operations representative) must keep an up-to-date log detailing every consultant who carries a key to the store. Should a key-holder leave Aesop, the key is to be returned to the Store Manager on their final shift and this return noted in the key log. A template version of a Retail Key Log can be found on the Global Retail Operations Agora site 6.2 CASH DRAWER KEYS The cash drawer must be kept locked at all times. The key is to be returned its designated hidden position at the end of each day by the individual closing the space. 6.3 STORE ALARM All stores not located inside a secure shopping centre are fitted with an alarm system supplied by a reliable security company who will monitor any disturbance and provide support when alarm the is activated. Alarm codes are to be changed at least on a biannual or on an as-needs basis. This is organised by the Store Manager. At no time should an Aesopian put their safety in jeopardy by defending the store or products from a threat. 6.4 HEALTH AND SAFETY Vigilance must be applied when using ladders, carrying boxes, handling electrical items and undertaking all other similar physical tasks within the store. All pre-existing medical conditions should be taken into account when allocating and sharing these responsibilities among the team. If yourself, a colleague or a customer is injured in store please: ⎯ If required, call an ambulance immediately and wait with the injured person until the ambulance arrives ⎯ Ensure you / they are safe and comfortable ⎯ If necessary, usher remaining clients out of the store ⎯ Call Head / Local Office to notify of injury ⎯ Complete required reporting as promptly as possible and forward to your local HR contact. ⎯ Complete any other documentation required by local law as supplied by local Aesop management Please refer to your Regional Agora site or connect with your local Retail Operations Manager for specific local Health and Safety Policy. 6.5 CROWD CONTROL Should the number of clients within a store rise above a level where one-on-one consultations are not viable, the Store Manager will allocate dedicated roles to each Consultant. Such roles include POS, door greeter, wrapping, floor and sink consultations and any other applicable roles.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 15 UPDATED SEPTEMBER 2019 This will facilitate the most efficient processing of each sale. When handing a client over to another Consultant, ensure they are made aware of the change by using the name of the Consultant who will be continuing the transaction (i.e. when accompanying client to the POS; “Sarah will process your sale for you”). Client, personal and store safety are paramount concerns for Aesop. If for any reason store traffic increases beyond a safe and manageable level at any given time, the Store Manager is to determine when the front door is to be closed, with an Aesopian situated outside enabling clients to exit before further clients enter. Such action should only be taken in extreme traffic circumstances where product is in jeopardy of being knocked over and customer comfort is impacted. 6.6 ACCEPTABLE CONDUCT OF CLIENTS IN STORE There is to be no smoking anywhere within an Aesop space. Food preparation may only take place in the back of house. The only foodstuffs to be eaten by staff on the shop floor are those that have been approved by the local head office (usually consisting of nuts and dried fruit). These may be offered to clients at the discretion of the Store Manager. Customers are welcome to enter the store with their own food and drink, however every effort must be made by the consultant to ensure no mess results. Children must be supervised by their guardian at all times and must not be at risk within the store nor risk the product. If appropriate, a 50mL deluxe sample or 45g Body Cleansing Slab may occupy even the most unruly of children. Animals are welcome in store, provided they are kept under control and on a leash. If a customer is conducting themselves in a manner that is offensive, dangerous or in any way harmful to the store, its staff or its contents, all Aesopians are empowered to ask for them to exit the store. 6.7 THEFT Aesopians are to greet all individuals entering the store to acknowledge that they have been sighted. If you witness or suspect someone of shop lifting in your store, please do not confront or chase the individual – while this may be your instinct, your personal safety must always come first. If your store or counter is subject to a theft, please follow the below procedure: ⎯ Once you suspect there has been a theft and the store is clear of customers, check that all staff are safe and review the stock levels. ⎯ If you find there has been a theft, please inform your Manager and discuss how to proceed and who to inform. If your Manager is not present or contactable, contact your RBM or Retail Operations Manager/Coordinator. ⎯ If stolen product can be 100% verified, Store Managers may perform an inventory adjustment to write-off the stolen item and balance the stock. ⎯ The Store Manager must check in with all staff members involved to ensure their wellbeing, and offer additional support or training, supported by RBMs and Retail Operations.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 16 UPDATED SEPTEMBER 2019 7. Processing Transactions 7.1 USING THE POINT OF SALE (POS) When processing a sale, it is imperative that product barcodes are scanned to ensure transaction and SOH accuracy. The calculated total of the sale, itemised products and quantities must always be cross-checked to ensure the transaction in the POS matches the products physically purchased by the Customer. Following this check, payment may be taken and the transaction finalised. The POS system is to be used to process every sale unless extreme circumstances restrict its use. In these cases, manual receipt books can be used. For comprehensive guidance, please refer to the relevant Retail Pro or Cegid guides, found on Agora. 7.2 MANUAL RECEIPT BOOKS Aesop Manual Receipt Books are available for use if the POS system fails. Manual receipts capture the same data as a POS receipt, excluding customer data. The original receipt is presented to the customer and the carbon copy maintained for store record keeping. To ensure global privacy compliance, customer data is not to be recorded on manual receipts. Manual receipts must be entered into the POS system as soon as it becomes available, and always on the same day of the sale. In extreme circumstances (eg. if the computer is not working at the end of day or for a period of days), manual sales may be entered in the next day or when the computer has been restored. Please ensure your local Aesop Finance representative is notified of any discrepancies and provided with the appropriate detail. 7.3 REQUESTS FOR DISCOUNTS With an unwavering commitment to quality and excellence, Aesop prides itself on offering our customers superlative products to purchase. As such we approach discounting with restraint, only offering it in certain circumstances. Our conditions for offering a discount are usually based on the customer’s relationship with Aesop. Discounts are not offered as Aesop transitions out seasonal ranges, to customers making large volume purchases or to clear product with imperfections. We will never diminish our confidence in the value of our product or the deep respect we have for our loyal customer base by discounting. For comprehensive guidance, please refer to the Our Approach to Discounting policy document on Agora. 7.4 LOCAL TRADER AND FRIENDS OF AESOP (FOA) A significant ideology at Aesop is to foster a strong relationship with the local neighbourhood. This extends to both customers and other businesses. It is expected that Store Managers work to build relationships with the local community through the appropriate offering of gifts or a small discount as recognition of a bond between their store and the individual/business. A one-off discount of 10% can be offered through the point of sale system to neighbouring business. An ongoing Friends of Aesop discount of 10% can be applied to a customer profile at the discretion of a Store Manager. To have the discount applied, the Store Manager must contact the local Retail Operations representative identifying the name and place of work of the customer, contact details and the nature of the relationship. FOA discounts greater than 10% (FOA20, FOA30, FOA50) must be initiated and approved by Head Office. For more information, please contact your local Retail Operations team.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 17 UPDATED SEPTEMBER 2019 7.5 CORPORATE GIFTING SERVICE Corporate gifting orders are facilitated by the Wholesale or Business Development team via a direct Corporate Gift Enquiry through Aesop.com. Aesop Signature Stores may facilitate corporate purchases of fewer than 15 units. Please ensure the Wholesale or Business Development team is contacted before finalizing the purchase. Corporate gift requests of greater than 15 units must be referred to the Wholesale or Business Development team. For further guidance, please refer to the Our Approach to Discounting policy document on Agora and your Regional Agora site. 7.6 AMENITY ACCOUNTS The Wholesale or Business Development team in each subsidiary or region is responsible for managing Amenity partnerships with approved businesses. The Amenity business will frequent their closest Aesop signature store to replenish pre-approved products with an applied Amenity discount. If you receive interest in-store from a business, please direct the customer to the Contact Us section of Aesop.com where they can complete a Wholesale and Amenity Enquiry form. 7.7 PACKAGING AND WRAPPING PRODUCTS Consultants are to always offer to gift wrap products that are purchased as a gift. The offer should be automatic and pre-emptive. For correct wrapping technique, please refer to the Aesop Gift Wrapping videos located on Workday Learning. Some customers may require their purchase to be securely wrapped if they are travelling or sending a gift via post. Cushion Paper is available to order for this purpose and should be kept on hand in store to accommodate this need. 7.8 PURCHASE QUANTITY LIMIT Customers are only permitted to purchase a maximum of five units of each product from Signature Stores, Counters and Aesop Online. Aesop is aware of grey market and on-selling activities across the world and wish to limit this as it can be damaging for the end-user and for brand perception. Some reasons for purchasing above this amount are reasonable, and for Hair Care, Body Care and Home products, discretion should be applied. Exceptions should be made for loyal clients, those who live in rural locations and can only visit infrequently, or for clients who mention the products are for gifts. For large purchases of multiple single products of five units or more, please refer the customer to Wholesale or Business Development team who will be able to provide further services not necessarily available at store level. For comprehensive guidance, please refer to the Maximum Quantities policy document on Agora. 7.9 CUSTOMER RECORDS At Aesop, we invite customers to create a customer record with us. Information acquired from customers includes first name, last name, email address, and/or contact number. These details are stored in our point of sale system and can be accessed at any time in the future by Retail Consultants. For a prescriptive brand such as Aesop, customer records are a vital customer service tool. At Aesop, we take privacy and consent very seriously. Customer data is only ever used internally, and never given or sold to external parties. We do not collect and store a customer’s personal information if they are under the age of 16. We do not divulge details from a customer record to anyone other than the owner of the record. For comprehensive guidance, please refer to the Customer Records: Cegid or Customer Records: Retail Pro policy documents on Agora.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 18 UPDATED SEPTEMBER 2019 7.10 PRODUCT RETURNS Aesop Retail Consultants are required to accept all returns and exchanges without hesitation. You must never be reluctant to process a refund in fear it will negatively affect your store’s daily target, even if the original purchase was made in a different store. Graciousness and unconditional customer service may mean a customer returns to your store for their next purchase instead. If a customer returns with product to your store, this is an opportunity to re-engage with them and create a long-lasting positive impression. You will never be reprimanded for giving a refund or exchange. Returned or exchanged product cannot be re-sold and must be adjusted out of stock. Aesop tamper evidence does not offer a guarantee against adulteration of product. A refund can be issued upon presentation of proof of purchase in the form of an electronic or paper receipt, bank statement, client profile history in the POS system or if you or a colleague recall selling the item to the customer. The refund should be issued via the same tender as detailed on the proof of purchase i.e. cash, credit card or Aesop Gift Card (where applicable). If the customer is unable to provide proof of purchase, or presents a gift receipt, please honour an exchange of equal or greater value at recommended retail price (RRP). If the exchange is for a product of greater value, the customer is required to pay the difference. If the customer does not wish to exchange for another product/s to the value of the returned product, an Aesop Gift Card can be issued where available. If an Aesop Gift Card is not available, an exchange to the full product value will need to be honoured. For comprehensive guidance, please refer to the Global Refund and Exchange Policy document on Agora. 7.11 REPORTING FAULTY PRODUCT Any product returned or exchanged for the reasons listed below should be reported in a timely manner on the Product Quality Issue and Return Report on Agora. Information provided through this form is monitored by the Product and Regulatory Compliance teams. ⎯ Negative Skin Reaction (must be reported on the day of return or exchange) ⎯ Packaging Fault (relating to manufacturing) ⎯ Product Fault (aroma, appearance, skin feel) ⎯ Damaged in Transit (relating to damage by courier/freight company in transit from warehouse to store) Customer or employee feedback relating to the reasons above but not connected to a product return may also be reported via this online form. 7.12 CUSTOMER COMPLAINTS Handling compliments and complaints is part of working in Retail. When a customer lodges a complaint, always take a calm approach and listen carefully before responding, following the four-step model below: 1 Acknowledge: Show the customer you have listened. 2 Clarify: Develop a deeper understanding of the concern. 3 Respond: Answer based on what you have discovered 4 Confirm: Check that the concern is now resolved All Retail Consultants should feel empowered to resolve problems. Should the need arise, complaints can be directed towards management or Head Office. What is important is to delight the customer by resolving the difficulty in a timely and considered manner. Aesop staff are never reprimanded for offering product, refunds or exchanges they believe are absolutely necessary to rectify a situation.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 19 UPDATED SEPTEMBER 2019 For comprehensive guidance, please refer to the Complaint Handling policy document on Agora. 7.13 SENSITIVE SKIN AND NEGATIVE SKIN REACTIONS Sensitive skin is complex, and the needs of sensitive skin are highly nuanced and variable from individual to individual. With this in mind, we always proceed with caution when recommending products for sensitive skin and encourage patch testing on an inconspicuous area of skin prior to first use. Sample sachets can be offered for this purpose. Products that have passed external testing and state sensitive skin suitability on the label (and Aesop.com), should be sold with confidence, however for assurance for those with sensitive skin, a sample sachet of the product being purchased can be included in the purchase to assist with patch testing prior to opening the product to ensure customer comfort for those prone to reactions. If a Customer were to suffer an adverse reaction during a skin demonstration, it is important to remain calm and recommend that the demonstration be concluded. Consultants should not recommend treatment for the reaction, other than quickly rinsing the area with tepid water. In the case of a serious adverse reaction, it may be recommended that a Customer consult a doctor or a dermatologist. For comprehensive guidance, please refer to the Negative Skin Care: Sink Demonstration policy document on Agora. Product returns or complaints based on a negative skin reaction should be acknowledged with care and sensitivity. The Customer should be offered a refund or exchange for their product. If appropriate, a Consultant may wish to recommend a suitable alternative in the Aesop range. However, the Customer should be advised to take sachets to their GP prior to patch testing. Any incident where a customer has a negative skin reaction and states that they have sought medical attention must be reported within 24 hours of the customer visiting the store, via the Product Quality Issue and Return Report form on Agora. 7.14 SAMPLING AND OTHER COMPLIMENTARY POSM Aesop produces single-use sample sachets of products from our Skin Care, Hair Care and Fragrance ranges. Sample sachets are a strictly prescriptive tool that allow our customers to experience products in the comfort of their own home. It is Aesop policy to offer sample sachets to customers with consideration and purpose. They are never to be used as gifts to reward customers for purchasing large quantities of full-sized product. If your customer makes a large purchase, please offer them a complimentary 15mL or 50mL. Please discuss with your manager how and when to introduce complimentary product to customers. For comprehensive guidance, please refer to the Sample Sachet policy document on Agora. Complimentary pumps for facial cleansers are available for customers should they wish to use them. If the customer is replenishing their product, they should be encouraged to recycle their old pump by removing from their old bottle and attaching it to their new one. The best way for consultants to communicate this is upon purchase of the cleanser, to ask “Do you already have a pump at home for this cleanser?” This implies that they do not need another one. Should they request a replacement, the consultant is to offer one without hesitation.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 20 UPDATED SEPTEMBER 2019 8. Cash Handling and Sales Reporting 8.1 HANDLING CASH AND CREDITS CARDS All locations keep a set amount of cash in the cash drawer at all times, known as ‘float’. The float amount is verified every day as part of regular opening and closing procedures. If a discrepancy occurs and reamins after a thorough re-count, cash takings from the day are sacrificed to return the total to the correct amount. This will be automatically calculated by the POS system during the closing process. Any discrepancies should be noted on the Banking Reconciliation form. When processing a transaction, the calculated total of the sale, itemised products and quantities must always be cross-checked to ensure the transaction in the POS (or manual receipt book) matches the products physically purchased by the Customer. Following this check, payment can be taken and the transaction finalised. Ensure accurate cash amounts are entered in the POS and the correct change is given to the Customer. Credit Card payments must be processed through the payment terminal in line with compliance requirements. For comprehensive guidance regarding Payment Card Industry Data Security Standard requirements, please refer to the Information Security & PCI DSS Policy document on Agora. 8.2 BANKING Banking Reconciliation Forms must be completed at the end of each day. All locations are to deposit cash takings at the bank on a minimum weekly basis, to prevent the accumulation of large quantities of cash. If a store accumulates a large amount of cash throughout the week (amount as designated by Local Retail Operations), an additional banking deposit should be completed as soon as viable. Please refer to your Regional Agora site for details of local banking procedures. 8.3 PETTY CASH All locations are allocated a certain amount of Petty Cash to be used for approved miscellaneous expenses throughout the month. Please refer to your Regional Agora site for specific Petty Cash guidelines and reconciliation procedures. 8.4 DAILY SALES REPORTING All locations must complete an online Agora End of Day form at the close of each day. Completing the End of Day form is intrinsic to Aesop Retail and an important part of how your day finishes. End of Day content is visible to Stores and Counters globally, as well as all Local and Head Office staff. The End of Day form provides invaluable commentary on the store / counter performance for those who were not there. While sales data indicates how the store traded, this information can also raise new questions. As actual participants in the day’s activities, illustrating moments of note to assist the wider business in learning more about our valued Customers and your specific location is vital. All Consultants are encouraged to contribute to EOD form content throughout the day. Please visit to your Regional Agora site to access your local End of Day form, and refer to the Agora End of Day Guidelines and How to Complete the Agora End of Day Form (Cegid) documents on Agora for comprehensive guidance.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 21 UPDATED SEPTEMBER 2019 8.5 VERITAS Veritas is a retail reporting tool that acts as the single, centralised, source of truth at Aesop, assisting business operations and driving retail performance by empowering proactive, real-time decision making. This dashboard is home to our key performance information, made up of the following pillars: — Productivity — Product — Inventory — Consultant — Traffic — Donation Regular exploration of Veritas is encouraged to learn more about individual and store performance. Please refer to Veritas Updates & Training on the Agora Global Retail Operations site.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 22 UPDATED SEPTEMBER 2019 9. Inventory Management 9.1 ORDERING AESOP INVENTORY & POINT OF SALE MATERIAL Store Managers and RBMs are responsible for being acutely aware of the inventory levels of their store/s. Stock levels of each SKU should always be within the designated minimum and maximum, including an allowance of stock for visual merchandising (VM) purposes. VM minimums are set in collaboration with Local Retail Operations and Visual Merchandising teams. In markets using Retail Pro, the Order Calculator is used to complete inventory orders. The Order Calculator (a customised Excel document) uses current stock on hand quantities and historical sales data to generate a recommended order quantity for each SKU. Point of Sale Material (POSM) orders are manually created. Once submitted by the Store Manager, the local Retail Operations Coordinator (or equivalent) will review and approve the order before processing for delivery. For comprehensive guidance, please refer to the Order Calculator: Store Manager or Order Calculator: Regional Office guides on Agora. In markets using Cegid, inventory is managed through an auto-replenishment model in the point of sale system. The point of sale uses information about product movement (sales history), outside factors that may affect demand (seasonality), actual inventory levels (stock on hand), stock in transit, visual merchandising and safety stock levels (minimums) to predict the inventory a store will need replenished. Sample Sachets and Deluxe/Amenity Samples are also included in the auto-replenishment model. Orders for all other POSM items are manually raised in the POS system and consolidated with the auto-replenishment order. For comprehensive guidance, please refer to the Auto-Replenishment & Sample Products – Cegid POS document on Agora. 9.2 RECEIVING A DELIVERY When a delivery arrives, the delivery driver must be guided to place the order in a discrete location in the store with minimal disruption to retail operations. Delivered orders are checked off and packed away in an efficient and safe manner outside of peak trading periods. Service to customers must always take priority over unpacking an order. Empty boxes are to be removed from the store in a timely manner and placed in appropriate recycling bins. Managing stock deliveries and unpacking stock safely should be a priority and is every employee’s responsibility. When first receiving an order, priority is given to checking carton labelling for correct addressing and accepting the stock into the point of sale system to update the inventory on hand. Any discrepancies between the physical stock and delivery notice discovered when unpacking the order are rectified through an adjustment to inventory on hand performed after the delivery notice is accepted in. Accurate inventory in the point of sale system is essential for auto-replenishment (Cegid) and prevents end of month reconciliation delays caused by stock being sold into negatives. For comprehensive guidance, please refer to the Global Stock Receipting Policy on Agora. 9.3 STORAGE OF INVENTORY Excess stock and point of sale material must be stored out of boxes (where possible) in designated storage areas. Products in tubes can be stored within their boxes to avoid damage. Despite being out of sight, storage areas must be maintained at the same precise standards as front of house fixtures. Effective organisation of storage areas allows ease of access to product when replenishing the retail floor and enables efficient cycle and stocktake counting.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 23 UPDATED SEPTEMBER 2019 9.4 STOCK ROTATION (FIFO) AND EXPIRATION All Aesop locations utilise a first in, first out (FIFO) system of stock rotation where products with the oldest batch codes are sold first. This method ensures a chronological turnaround of product throughout the year. Store Managers must initiate regular batch checks of all stock to ensure the FIFO system is being adhered to. Generally speaking, all Aesop products have a shelf life of at least three years unopened. Beyond three years, the aroma may decrease, however the quality and effectiveness of the product should not alter. All Aesop products remain safe, effective and enjoyable to use for long periods after their manufacture. Therefore, any stock with a batch number nearing three years from the date of manufacture is still acceptable for sale and customers should observe the normal instructions for use and period after opening (PAO) recommendations. For comprehensive guidance, please refer to the Quality Guidelines: Period After Opening and Batch Codes document on Agora. 9.5 INVENTORY ADJUSTMENTS AND PRODUCT WRITE-OFFS Inventory adjustments are processed in the point of sale system for the following reasons, but not limited to: — Broken / damaged / faulty / aged product found in store — Order discrepancies — Customer returns — Complimentary product for Staff / Customer gift / Marketing initiative — Charitable donation — Conversion to Tester Permission to process inventory adjustments in the POS system is limited to Store Managers (or those approved to complete higher duties). All inventory adjustments are linked to the appropriate NetSuite General Ledger (GL) code to ensure consistent financial and inventory reporting. Product returned or exchanged by a customer cannot be re-sold and must be adjusted out of stock. Aesop tamper evidence does not offer a guarantee against adulteration of product. Each month, adjusted inventory is to be signed off by the Retail Business Manager (RBM) or Cluster Manager (CM). Following approval, unopened product may be distributed to staff for personal use. Uncompromised and unopened product adjusted out of inventory may be considered for donation. For comprehensive guidance, please refer to the Global Product Donations Policy on Agora. An Agora Product Quality Issue and Return Report must be submitted for all inventory adjustments relating to product quality issues or stock damaged in transit. Customer change of mind or incorrect purchase adjustments do not require the completion of this form. For comprehensive guidance, please refer to the Global Inventory Adjustments Policy and Global Refund and Exchange Policy documents on Agora. 9.6 STOCKTAKE & CYCLE COUNTING All Aesop subsidiaries globally (excluding distributers) must complete globally-standardized stocktakes throughout the year as a business requirement. Only Aesop Signature Stores and Department Store Counters with Aesop owned inventory are required to complete stocktake. Stocktakes occur either half-yearly or quarterly, depending on the POS system active in each subsidiary: — Retail Pro subsidiaries must stocktake quarterly. — Cegid subsidiaries must stocktake twice a year (with a full round of cycle counts completed between each stocktake).

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 24 UPDATED SEPTEMBER 2019 Stocktakes generally occur in the first week of February, April, July and October, with all markets completing stocktake on the same day where possible. Stocktake dates are coordinated and confirmed by Global Retail Operations in consultation with Global Finance and ICT. Stocktake dates will be finalised no later than two months in advance. Ideally, all dates within a calendar year will be confirmed well in advance to allow for appropriate business planning. For comprehensive stocktake procedure guidance, please refer to the Global Stocktake section of the Global Retail Operations Agora site. Markets utilising the Cegid POS system must complete weekly cycle counts as overseen by local Retail Operations. Cycle counting focuses on a selection of products that the store physically counts and enters into the POS system to compare against the stock on hand quantity showing. An inventory adjustment is made to correct the stock on hand for any discrepancies that cannot be reconciled, allowing for accurate autoreplenishment and inventory reporting. For comprehensive details, please refer to the Global Cycle Counts Policy – Cegid POS document on Agora. Unofficial cycle counts should be performed in Retail Pro subsidiaries to maintain accurate stock levels. Physical inventory counts can be compared with Retail Pro stock on hand quantities. Discrepancies should be investigated by reviewing write-off logs, delivery packing slips and adjustment records. If the cause of a discrepancy can be found, an inventory adjustment should be performed. Should there be no explanation for a discrepancy, the discrepancy will need to remain until it is resolved at the next official quarterly stocktake. A Retail Pro & Cegid Pre-Stocktake Cycle Count Sheet may be used to perform unofficial cycle counts. Please download a copy of this template from the Global Retail Operations Agora site. 9.7 ORDERING STATIONERY All stationery used at Aesop Signature Stores and Counters must be Aesop-approved. These items can be purchased by the Store Manager from a central location. Please refer to your Regional Agora Site for further guidance. 9.8 TESTERS A comprehensive collection of Aesop product testers must be presented at all Signature Stores and Counters, relevant to the products available for purchase at each location. Appropriate back up quantities (ideally 1 or 2 units depending on the product) should also be kept on hand to ensure swift change over to a new tester when required. Testers are ordered manually via the Order Calculator (Retail Pro) or a Point of Sale Material order (Cegid). If the product contents of a tester falls below one-third full, the label becomes untidy or the packaging is damaged, it must be replaced. If a replacement tester is not available, an inventory item may be converted into a tester by performing an inventory adjustment and applying a ‘Tester’ sticker. Sheets of Tester label stickers are available to order to be kept in the back of house for this purpose. Please refer to section 5.3 Maintenance of Testers in this manual for further information.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 25 UPDATED SEPTEMBER 2019 10. Communication 10.1 NON-VERBAL COMMUNICATION Body language is a powerful mode of communication. It is imperative that Aesopians are aware of their posture and stance in store, especially during quiet periods. Open, positive body language will invite and welcome customer into our spaces. Crossed arms, standing on one leg, and leaning on counters or walls are not positive ways of communicating interest in serving customers. 10.2 GENERAL IN-STORE COMMUNICATION Every aspect of dialogue with a customer matters. Your choice of language, the questions you ask, and your ability to be culturally sensitive all have an impact on the level of comfort that customers expect as a given. As a spokesperson for the company, there is an expectation that Aesopians will make every effort to communicate our message to customers in a respectful, dignified and non-exploitative manner. A level of formality should be observed when interacting with customers, however expressing your personality and responding to the personality of your customer is an important element of any transaction. Together with the products themselves, the way a customer feels when entering, exploring and exiting our stores leaves a lasting impression and ensures they will return and become advocates of our brand to those around them. The treatment of our customers must always be genuine, warm and without any hint of superficiality. Customers are to be hosted as graciously as if you were hosting them in your own home. At Aesop, hosting is a way of being. It means preempting the needs of others, ensuring their comfort and letting them know who we are and what we do. You know the store and products intimately. Please introduce them accordingly—as you would a friend. For further guidance, please refer to the Aesop: Considering the Customer digital learning module on Workday. 10.3 TELEPHONE A confident, clear manner should be maintained when answering telephone calls. The opening line should always be, ‘Thank you for calling Aesop …’ Discretion during telephone calls is always appreciated - please no speaker phone or loud voices. Always obtain the caller’s full name, the company they represent (if relevant) and the reason for their call before assisting, redirecting or advising of store locations. If all consultants are occupied with customers, the phone should be left to go to voicemail. The voicemail should be checked as soon as possible when a consultant is available, and the call returned. The voicemail script is as follows: “Thank you for calling Aesop [location]. We are located at [address]. Our opening hours are as follows [e.g. Monday to Friday, 9am to 5pm with a late night trade on Thursday until 9pm. Saturday 10am to 5pm and Sunday 11am to 4pm.]. All our consultants are currently occupied. Please leave a message with your name and contact number and we will return your call.” 10.4 WRITTEN COMMUNICATION Aesop values the written word highly and errs on the side of formality with all written communication, both internal and external. Communication by email or letter should not be sent without proof reading the message in full and altering as required. Responses to issues of particular sensitivity should be checked by the Store Manager prior to sending. All email correspondence should begin with “Dear…” and close with “Best Regards”. All emails should be composed in Arial Narrow, point 10, black font. For comprehensive guidance, please refer to The A – Z of Written Communication at Aesop on the Agora Work Life site.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 26 UPDATED SEPTEMBER 2019 11. Back of House The back of house should be as meticulously presented as the front of house. We are a company of meticulous detail and cleanliness; this is not a façade. Once a delivery is received, the boxes should be unpacked in an orderly manner – one box at a time, the boxes packed down and discarded in a recycling receptacle. The product is not to be stored in the boxes, with exception of the tubes which can be retained in the boxes to preserve the packaging, ensuring they are displayed in pristine condition. Please ensure that the boxes are temporarily stored beyond sight lines from the store interior on delivery. Please cast a critical eye from the store and ensure that all sight lines are free from visual distraction and all cables neatly expressed if it is not possible to conceal them. For comprehensive guidance, please refer to the Everyday Considerations: A Guide to Aesop Back of House presentation on Agora. 11.1 CONSUMING FOOD AND DRINK It is requested that consultants do not eat on the shop floor. It is expected that all beverages are decanted into Aesop-appropriate receptacles if they are to be consumed in store. There is to be no use of non-Aesop branded merchandise in the retail space. Amber jars containing nuts, dried fruit or other approved dry foods (supplied by Aesop) may be kept and consumed in the back of house out of view of Customers. During special events, Marketing will encourage and guide stores to present food items and refreshments for customer consumption. This will be arranged in coordination with Marketing and/or Retail Management. 11.2 PERSONAL BELONGINGS Personal belongings are to be kept secure and out of sight in the designated personal storage area in the back of house or other designated area within the store, as directed by your Store Manager.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 27 UPDATED SEPTEMBER 2019 12. Aesopian Protocols and Expectations 12.1 KEY PERFORMANCE INDICATORS (KPIs) As an Aesop Consultant, your role involves hosting customers, performing consultations and prescribing Aesop products. Six Key Performance Indicators (KPIs) have been set to measure your individual performance, as well as that of your store / counter and subsidiary. — Skin Care Percentage — Multiple Unit Transactions (MUT) — Average Transaction Value — Sample Sachets — Linkage — Conversion *Please note Conversion may not be measured in your space. Please discuss KPI expectations with your Store Manager. 12.2 PERSONAL TELEPHONE CALLS We request that personal calls be kept to a minimum while working. Preferably, personal calls should be made during rostered breaks outside of the retail premises or quietly in the back of house area. As much as possible, calls are to be limited to one incoming and one outgoing personal call per day outside of breaks. 12.3 MOBILE TELEPHONES Personal mobile telephones are requested to be turned off or switched to silent while in store and during trading hours. Mobile telephones are not to be used on the shop floor during trading. 12.4 SMOKING Smoking is prohibited within and immediately outside stores for all Aesop staff. If consultants are to smoke, it is essential their breath is fresh, and clothes do not smell of smoke as they continue their shift. 12.5 AESOPIAN COMPLIMENTARY PRODUCT Twice yearly, all Aesopians are invited to complete an order for complimentary Aesop products. This ensures you always have access to your favourite products and have the opportunity to try others across our growing range. This is one of the ways Aesop provides recognition and reward to each of you who have contributed to our business over the past six months. For comprehensive guidance, please contact your local Human Resources department or visit your Regional Agora site. 12.6 AESOPIAN DISCOUNT From the commencement of employment, employees are offered a staff discount of up to 50% when they purchase products from any Aesop signature store or online. This discount is offered on most (but not all) products and is capped annually (calendar year) per employee. The discount is intended for employees to purchase products for personal use and occasional gift giving. The discount allows employees the opportunity to experience a greater range of products throughout the year. Employees must not re-sell product purchased at the employee discount rate or participate with or facilitate any other person in the re-selling of product purchased at the discount rate. Any distribution of Aesop product by an employee for any form of gain will be treated as serious misconduct.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 28 UPDATED SEPTEMBER 2019 For comprehensive guidance please refer to the Global Employee Discount Policy and your Regional Agora site. 12.7 GROOMING AND PRESENTATION Aesop is scrupulous and painstaking in sourcing ingredients of the highest quality in order to create superb products for the skin, hair and body. Our regard for quality and integrity extends to a passionate concern for impeccable presentation and design – from our packaging and labels through to our Counters and Signature Stores. It naturally follows that we pay concerted attention to our appearance, with key aspects of Aesop style and identity in mind. As such, all Aesopians are expected to follow Aesop Grooming and Presentation guidelines. For up-to-date guidance, please refer to the Grooming & Presentation policy on Agora.

AESOP CONFIDENTIAL – INTERNAL USE ONLY AESOP RETAIL OPERATIONS MANUAL 29 UPDATED SEPTEMBER 2019 13. Computer Facilities 13.1 COMPUTER USE AND INTERNET ACCESS Internet access is provided to facilitate access to email, IT support, sales data reporting and Aesop’s internal platform, Agora. The use of Aesop computers is for business purposes only and must comply with the Aesop Global ICT Security and Usage Policy, located on Agora. 13.2 IT SUPPORT ICT Support Requests should be logged through an email to [email protected] or via the ICT Support Portal, aesop.zendesk.com. The ICT team will triage requests and respond in accordance with the ICT Helpdesk support policy. In the event of a business-critical incident, the ICT team can be reached by telephone. For comprehensive guidance and local contact telephone numbers, please refer to the ICT Helpdesk Guide on the ICT Agora site. 13.3 AGORA AND ONEDRIVE Agora is Aesop's internal communication and collaboration platform, created for use by all Aesopians globally. The purpose of Agora is to host and deliver communication and knowledge, and streamline operations to assist Aesop to become a successful Digital Business. Retail employees are encouraged to browse Agora daily for internal announcements, articles, interviews, product information, training materials and more. Administrative tasks, forms or surveys will also need to be completed on Agora regularly, as directed by local Retail Operations and Human Resources. Agora should be the default homepage in the browser on your Point of Sale computer and Back of House device. Agora can be accessed on personal devices by typing agora.aesop.com into your browser. Agora is also home to Yammer, an internal social platform which provides a collaborative environment to connect Aesop colleagues globally and provide an easy way for all to share interesting, relevant and stimulating experiences. Please refer to the Aesop Global Yammer Usage Policy on Agora for user compliance policy. Every Aesop retail location (and Aesop Office employee) has an Aesop OneDrive space to store and share documents, images and videos etc. Only work-related documents relevant to yourself or your retail location may be stored in OneDrive. The desktop and OneDrive of all Point of Sale computers and Back of House devices must remain organised and uncluttered, free of unnecessary files and folders. To learn more about Agora or OneDrive, please visit the Agora Introduction page in the About section of Agora. For further assistance, please contact IT Helpdesk. 13.4 BACK OF HOUSE DEVICES A Back of House device (or tablet) is provided to all retail locations. This is to ensure all employees have the alibility to access to Aesop platforms, Signature Store / Counter and personal aesop.com emails, complete Digital Learning Modules and perform basic work tasks away from the Point of Sale computer. Like all the other Aesop facilities, the Back of House device should be treated with care and stored in a secure place when not in use. The Back of House device may be used in the front or back of house. If there is no back of house or available space, the device may be taken offsite with Manager approval, to be used at a nearby café or park. It is the Store Manager’s responsibility to ensure all Retail Consultants treat the Back of House device with care, especially when used offsite.