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Subject: Piper Jaffrey presentation today Date: 6/10/2008 6:24 PM
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Really informative powerpoint went with this one. I hope they make them available outside just the webcast.

Presentation was made jointly by the CMO, Jim Taschetta and the COO/CFO, Myles McCormick.

Jim covered most of the bases we're familiar with, including customer loyalty, and repeat business.

Here are a few facts from his section (some we saw before in the ICR Xchange Conf presentation, some were new):

1. Expanding foundation
Mineral awareness: 26% unaware; 74% aware of mineral makeup
77% of those aware have not tried; 23% have tried;
60% indicate they are somewhare or extremely likely to try in next 12 months; BareMinerals is the brand non-users are most likely to try

2. Expand base of foundation; BARE has 12% share of facial makeup market ($3.6B market); then listed plans

3. Strengthen Color
BARE has 2% share of color market ($4.9B market)

4. Establish Skin Care (they just started this effort early this year)
BARE has 1% share of skin care market ($7.8B market)

note: Brand Permission: Foundation Users willing to try Skin Care of Same Brand for BARE is 78%; for other brands is 46% ! (this goes along with them being a natural makeup)

Myles McCormick's highlights

He discussed how they were reaching all segments of the market (young - old, broke to rich etc) by the strategy of selling through Sephora, Ulta, Nordstrom, QVC, Infomercials, Retail Boutiques

Some interesting numbers/facts/strategy

1. Domestic Distribution growth
This slide has a list of domestic door count year end
2007 they had - total of 559; 248 Ulta; 185 Sephora; (the rest split)
Forecast for 2008 - total of 786; 308 ulta, 225 Sephora, small pieces for Boutiques, Dept Stores, SiJCP
Full Potential - total of 2300+; 200+ Dept Stores; 1000 Ulta; 400 Sephora; 400 Boutiques; 300+ SiJCP

2. Retail revenue indexed to 1st door
This slide showed how each door expanded revenue; there is some cannibalisation, but still an increase
1 location = 1x
2 locations = 1.3x
3 locations 2.1x
4 locations 2.3x

3. Global Expansion Opportunity - Intl market for cosmetics is 4.5x size of US - approx $36B
Near term addressable markets - US, Japan, UK, France, Germany, Spain, Italy, Korea, 2.5x size of US - approx $20.5B

4. Global Expansion Update
France - presence in all Sephora France doors; #1 foundation market share; #1 US color brand
German - launced on QVC in July 2007; #1 color brand
UK - strong launch at Selfridge's in London
Japan - #1 beauty brand on QVC Japan
New Markets - Launching Spain and Canada in Q4

5. Superior Operating Model - I LOVE THIS SLIDE!!
This is a simple slide with 4 competitors: BARE, L'Oreal, Estee Lauder, Avon, comparing Gross Margin, Expenses, Advertising & Promo, and Operating Margin.
If you just looked at Operating Margin you would swoon - BARE is beating the closest by double. Avon is at 8.8%; EL at 10.3%; L'Oreal at 16.6%; and BARE is at 33.1%. Nice.

6. Financial Summary
recap of Q1; reiteration of FY2008 guidance; long term sales growth of 20-25%; long term EPS growth of 25%
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