PWW-PCA-Presentation

THE PCA CORPORATION

2017

PCA

WHO WE ARE

• A global manufacturer, distributor & licensee of prestige fragrances and beauty care products
• Best-in-class technology and distribution processes
• Nearly $0.5B since inception in 1993
• Unique fully-vertical distribution with an omni-channel approach:

• We provide the largest retailers worldwide excellence in supply, pricing and service
• 3PL service provider
• Sales coverage of 40K independent stores in U.S. & 5K in Canada

PCA

OUR VISION

To leverage our strengths in marketing and
sales, with superior technology and logistics,

to become one of the highest quality,
prestige beauty companies in the world.

PCA

ACHIEVEMENTS

 Kate Spade global licensee
 Category captain for Target
 Exclusive distributor for Burt’s Bees to independent retailers in U.S. (40K doors)
 Represent nearly 80% of e-commerce sales to top 10 retailers in U.S. (i.e.Walgreens.com,Target.com, etc)
 Exclusive distributor for L'Oréal & Coty in Canada to independent pharmacies and regional chains

PCA

BEAUTY CATEGORIES SET FOR GROWTH PCA

• Global beauty is exploding in growth, driven by fragrance ($46B), skin care ($121B) and cosmetics
($460B)

• While the global market continues to grow, there is strong growth expected in the U.S. market
through 2020:
• Fragrance +4%
• Skin Care +3%
• Cosmetics +6%

• For the first time, premium fragrances +7% exceeded the growth in Mass +5.7%
• Millennial consumers are driving growth, particularly in fragrance. 16-24 yrs. olds have increased their

fragrance usage by 40%
• 60% of younger consumers seek out statement-making fragrances. “The familiarity of classics is

coming back for the younger consumer” -Karen Grant, NPD

Sources: Mintel, Euromonitor
http://www.gcimagazine.com/marketstrends/segments/fragrance/Why-is-Fragrance-Outperforming-Skin-Care--368885731.html
http://www.gcimagazine.com/marketstrends/segments/fragrance/The-Only-Way-is-Up-383435171.html

PCA POSITIONED FOR SIGNIFICANT GROWTH

• Strong double digit year on year revenue growth ~$0.5B in revenue, strong cash flows
• Over 40,000 unique items in stock ~$100MM holding inventory
• State-of-the-art facility in Long Island, NY

• 1.5 million cubic feet of warehouse
• Gold standard in practices and equipment: green, solar powered, recycled products only
• Processing over 50,000 direct-to-consumer orders and more than 750,000 units in bulk orders per day.
• One day turn-around for retail orders; 6-hr turn-around for ecommerce

• Technical capabilities: EDI + in house programmers and technicians allow integration with any system
• Over 600 employees world wide

• Dedicated customer service team (call center) located in U.S.

• Gold Standard in supplier supply chain scorecards in the industry
• Executive team with decades of experience in fragrance & beauty globally

PCA

GLOBAL REACH

Toronto Geneva

New York India Singapore
Miami

Caribbean

HQ Melbourne
Offices
Warehouse PCA

CROSS-CHANNEL DISTRIBUTION

 According to Mintel “Consumers V
are cross-channel shopping more
than ever before”. We have a unique E R
ability to reach consumers across all R E
verticals. T A
I C
 We observe strict “on/off” switches C H
to ensure distribution integrity and A
vertical closures
L
 Global retail reach from from Chile
to UK to Australia to Hong Kong

PCA

CUSTOMIZED MULTI-CHANNEL STRATEGY

PRESTIGE/ DEPARTMENT/ INDEPENDENTS MASS/ MID TIER/ E-COMMERCE
OFF PRICE
SPECIALTY • 4,000 customers • Service over 650 customers
• 40,000 doors • Over 30,000 doors, each with • Traditional e-commerce site
• 2,500 doors • Powerful, owned by proprietors customized assortment
• Participate in full marketing • Serviced by ~50 sales reps fulfillment (Zilily.com,
• Tester programs, seasonal Groupon.com,Amazon.com)
initiatives (inside/outside) promotions • E-tailer fulfillment across beauty
• Serve as inventory control categories (Target.com,
Department Stores • Provide extended credit POG Customers CVS.com,Walgreens.com)
• Nordstrom • Mass:Target / Wal-Mart • Customized shipping solutions
• Bloomingdale’s programs • Club: Sam’s / Costco • Kitting
• Macy’s • Customized assortment by • Drug: CVS / Walgreens • Custom inserts
• Lord & Taylor • Mid Tier: Kohl’s / JC Penny • 45,000 available sku’s
• Dillard’s store
• Belk Non POG Customers
• Bon-Ton • TJ Maxx
• Ross
Specialty • Burlington Coat Factory
• Ulta • Citi Trends
• Sephora

PCA

LICENSED BRANDS

PCA

DISTRIBUTED BRANDS: USA

Exclusive
& Luxury
(<100 drs)

Department
& Specialty Stores

(100-2500 drs)

Mass Retailers (15K drs)
& Independents (40K drs)

PCA

DISTRIBUTED BRANDS: CANADA

Luxury & Designer
Fragrance Brands

Mass Fragrance
& Skin Care Brands

PCA

CORPORATE STRUCTURE

PCA THE PREMIERE GROUP
BRAND LICENSEE / DIRECT DISTRIBUTION /
TPG 3OVO PRESTIGE SALES & MARKETING
Company
Ecosystem PCA
SALES & MARKETING TO MAJOR RETAILERS
P&P PWW AND INDEPENDENTS / OMNI-CHANNEL
OPERATIONS / E-COMMERCE FULFILLMENT
Each operating company enables us to serve multiple channels of distribution and a
variety of customers from store chains to major global retailers with 10,000+ stores PWW
DIRECT TO CONSUMER / BRICK & CLICK
FULFILLMENT / CUSTOMER SERVICE /
WAREHOUSING TECHNOLOGY

P&P
DISTRIBUTION ARM FOR MAJOR BEAUTY
MANUFACTURERS

3OVO
3RD PARTY LOGISTICS / WAREHOUSE /
FREIGHT / ORDER-TO-CASH

PCA

PCA: LEADING DISTRIBUTION PARTNER

Established in 1993 by Kanak Golia, the company originated and evolved by selling fine fragrances to smaller
independent chains across the country.

PCA is:
• Direct distribution partner for top-selling and high-demand beauty brands in fragrance, skin care & color
• Operates across all channels of distribution, globally
• Dedicated inside/outside sales reps to service all customers, large and small

PCA

3-OVO: 3RD PARTY LOGISTICS

• A new state of the art, Class A warehouse built in 2015, with over 1.5MM cubic sq. ft. with the most sophisticated advanced
technology available today.

• We designed a custom-tailored system to provide logistics and supply chain services to meet each of our partners needs:
• 30 loading docks- 4 interior, completely sealed docks
• 300 of trailers per day capacity
• Import / export capability with specialized staff for handling hazardous materials
• Cross-dock functionality
• Owned and non-owned inventory
• Full EDI transmission ability

• Sustainable and eco conscious practices, from recycled cardboard, to packing materials. Our facility is a zero net energy building,
fully powered by solar.

• Our results:
• Order accuracy 99.7% for any reason including customer error and on time delivery of 99.95%
• Over 50,000 direct to customer orders processed in a day and more than 750,000 units in bulk
• Global fulfillment to over 75 countries

PCA

PWW:THE LARGEST U.S. E-COMMERCE PARTNER

• Established in 2004, Perfume Worldwide Inc., is a fully integrated e-distribution company specializing in product selection, order
fulfillment, drop shipping, and customer service.

• Currently, we have in stock over 45,000 beauty items ranging from designer fragrances, to salon hair care, to premium skincare,
and cosmetics and beauty tools.
• Recently began testing in other categories including: household, accessories and pet

• We hold over $100MM in inventory on a daily basis
• State of the art warehouse with custom capabilities including:

• Same day order fulfillment, within 6 business hours for drop ship
• Customized, branded invoicing
• Designed to maintain quality and velocity and accuracy during peak seasonal timeframes

PCA

P&P: DISTRIBUTION ARM OF PCA CORP

P&P’s purpose is to cater to independents and the secondary market directly from major fragrance manufacturers such as:
• Interparfums
• Clarins
• Salvatore Ferragamo
• Elizabeth Arden
• Disney
• Perfume Holdings
• Ted Lapidus

P&P also provides tailored marketing programs in collaboration with the major houses, including but not limited to:
• New product & flanker launch
• Product Design
• Gift Sets
• Displays and fixturing
• Marketing Programs
• Detailed reporting and forecasting

PCA

TPG: OUR PRESTIGE ORGANIZATION

• Global brand licensee founded in 2016 with $25MM+ in sales, with highly recognized brands in prestige distribution. Continually
seeking brands in fragrance, skincare, beauty products, and home fragrances.

• TPG recognized an opportunity to take unique brands that have been neglected by the “big houses” and invest in them to
capture their full potential.

• TPG looks at mid-size brands with a unique selling proposition that will respond to investment with above-category growth and
meaningful volume.

• Building a prestige organization with top talent from the industry, but with “beyond conventional” thinking for retail and market
execution.

• The company remains private without public pressures enabling it to focus on brand strategy and voice, ensuring consistency
throughout.

• Current global licenses include Kate Spade NY and Fila, with more on the way…..

PCA

WE WANT TO WORK WITH YOU

• Industry reputation & affiliations: NACDS, CEW, NEW,TFWA
• Category captainship- Top 5 U.S. mass retailers
• Cater to customers of any size
• Cutting edge technology - data and targeting capabilities - unparalleled
• We are experts in all channels of distribution

• Prestige/Specialty
• Mass (FDM)
• Independents
• Brick & Click, E-commerce, E-tailers
• Consultative approach with our business partners

PCA

THANK YOU!
PCA