2. Beth Ritter
Pam Stephenson

3. Agenda Who is Burt’s Bees Who is Clorox? Rationale for the merger
Quality at Burt’s Bees

4. Burt’s Bees Meet Burt’s Bees
Burt’s Bees is the leading natural personal care company in the US
- $250MM+ retail sales with 350 employees
% growth per year, over the last 5 years
Originally founded in Maine by Burt and Roxanne, the company moved headquarters to Raleigh, NC in 1995
- company founded on principle of earth-friendly, natural personal care
AEA Investors acquired Burt’s Bees in October 2004 from founder Roxanne Quimby for $173MM. Clorox Purchased the Business in 2007.

5. Burt’s Bees is the Leader in Natural Personal Care
Face
Day Creams
Night Creams
Eye Creams
Serums
Cleansers
Toners
Scrubs
Acne
Body
Body Lotions
Hand Creams
Foot Creams
Oils
Moisturizing Mists
Body Wash
Soaps
Scrubs
Outdoor &
Natural Remedies
Ointments
Insect Relief
Sun care
Deodorant
Lip Balm
Baby
Powder
Oil
Lotions
Ointment
Bath
Shampoo
Soap
Hair
Shampoos
Conditioners
Hair Treatment
Lip
Lip Balms
Lip Shimmers
Lip Gloss

6. Our Retail Partners Cross A Diverse Set of Channels

7. Burt’s Bees Strategic Framework
Mission
Make people’s lives better every day -naturally
The #1 natural personal care company in the World
Vision
70/35/25
Awareness, trial, usage
Build gross margins to 60% +
Double our business by 2008
($200MM+)
Grow to $100MM Specialty & $100MM National
BHAGS
Win with customers
Partnered & Growing - Key Accounts & Int’l
Win at retail – vital point of purchase
Category Leadership in Naturals
Strategic
Thrusts
Attract new consumers & retain and build core loyals
Differentiate from pseudo-naturals
Expand our line – premium innovation
Invest in building our brand buzz
Build our brand
Enhanced forecasting and supply management
Simplify: line, packaging, way of working
Make SHEQ part of everyone’s job
Customer Service – 98% OTIF
EDGE (Every Day Great Execution)
Manage costs and margins effectively
Establish value added trade terms
Optimize pricing, purchasing, overhead
Fuel for growth
Attract the very best people
Create a high performance culture
Walk the talk on values
Talent powerhouse

8. Our Mission, Vision and Values
The Results
Our Mission, Vision and Values
Our Mission: We make people’s lives better every day - naturally
Our Vision: We will be the #1 Natural Personal Care Business in the World, adored by our consumers desired by our customers and working in harmony with our environment
Our Cultural
Values: We Care
Steadfast commitment to The Greater Good
Harmonious tension – jazz!
Passionate teamwork
Embrace change

9. Burt's Bees best bolsters that strategic intent:
Rationale for Merger
Clorox entered a new strategic phase where they will focus on two key macro trends:
Health & Wellness
Sustainability
Burt's Bees best bolsters that strategic intent:
Build an existing high-growth, high-margin, high-impact business in Health & Wellness and Sustainability
Provides expertise to help Clorox succeed in these areas throughout the business

10. Rationale for Merger
Great Brand: An authentic, high growth, #1 brand that consumers love
High Growth: The brand participates in high-growth natural personal care anchored in wellness & sustainability megatrends
New Business Platform: NPC & Burt's Bees benefit from significant wellness & natural tailwinds; along with Green Works & Brita, we can establish robust new growth platform
Winning Team: Leadership, track record, commitment to wellness, natural & sustainability

11. Rationale for Merger
The two companies share the strategic lens of managing our respective businesses to the triple bottom line:
People
Planet
Profit
We are aligned in our missions and values:
Working together, we can more quickly and effectively realize our missions
Working together, we can strengthen and build upon our values

12. Rationale for Merger - Aligned Missions
We make everyday life better, every day.
We make people’s lives better every day — naturally.

13. Rationale for Merger - Aligned Values
Steadfast commitment to the greater good
Do the right thing
Harmonious tension
Stretch for results
Embracing change
Take personal ownership
Passionate teamwork
Work together to win

14. Green Works™ Natural Cleaners
Work as well as conventional cleaners
Biodegradable, non-allergenic, not tested on animals, and packaged in recyclable bottles
Made with 99% natural ingredients
Have earned EPA Design for the Environment seal
For generations, Clorox name associated with products that work. So when decided to create natural line of cleaning products, wanted them to truly work. Hence the name, Green Works
Wasn't easy. Without industry standard for what “natural” means, we developed own tough tests and, in process, developed Green Works natural cleaning products that are as effective as conventional cleaners. Ingredients come from natural sources like coconuts and lemons.
Biodegradable, formulated to be nonallergenic, not tested on animals and packaged in bottles that can be recycled.
We think we've set new standard for what natural can and should be. Except for some fragrance and color, Green Works products completely natural —most natural cleaners on market today. But not satisfied with 99 percent, and searching for good sources of natural fragrance and color so we can achieve goal to deliver 100 percent natural cleaning products.
Green Works natural all-purpose cleaner, natural glass & surface cleaner, and natural dilutable cleaner have earned Design for the Environment seal from U.S. EPA.

15. Clorox® Bleach A Heritage of Safeguarding Health
Long history of use in places where killing germs is critical
Use of EPA-registered bleach recommended by leading public health agencies to control spread of disease, infection & other health threats
Most widely available, affordable disinfectant on earth
Continues to play critical role in public health
Clorox bleach has long history of use in places where killing germs is critical: hospitals, nursing homes, child-care centers, schools and restaurants.
During WWI, before penicillin, countless lives saved when application of gauze soaked in bleach was applied to soldiers’ wounds.
In 1960s, when first Apollo flights were heading into space, National Aeronautics and Space Administration used Clorox bleach to decontaminate capsules returning from orbit.
According to Dr. Abel Wolman, former president, American Public health Association, sodium hypochlorite, the basic ingredient in Clorox bleach, has saved more lives than any other substance made by man, due to its ability to reduce waterborne disease.
Confidence in efficacy and safety of bleach is why world’s leading public health agencies— World Health Organization and U.S. Centers for Disease Control and Prevention—recommend using EPA-registered bleach for controlling spread of disease, infection and other health threats.
Bleach is most widely available, affordable disinfectant on earth and the role it plays in public health continues to be critical:
In controlling asthma and allergy: In recent study (Nickmilder, Carbonelle, Bernard. Pediatric Allergy and Immunology, 2007), researchers working in Brussels found kids living in house regularly cleaned w/ bleach appear to have lower risk of developing asthma or allergies.
In protecting school children: As part of healthy routine in school kitchens, School Food Safety Network recommends using bleach in food-prep areas to protect against cross-contamination and spread of salmonella, E. coli and other bacteria that can make kids sick.
In protecting patients: Each year, an estimated 1.7 million Americans contract infections while hospitalized. Up to 90,000 die. Clorox has partnered with Association of Professionals in Infection Control on Protect Our Patients, program to raise awareness of steps hospital staff, patients and families can take to help protect patients in hospital and at home. Hand washing is critical; so is disinfecting surfaces to keep virulent “super bugs” like methicillen-resistant Staphylococcus aureus (MRSA) from moving from one patient to another.

16. Brita® Water-Filtration Products Helping Reduce Bottled-Water Waste
Brita® products deliver great-tasting water without the waste & cost of bottled water
Brita & Nalgene Outdoor Products have teamed up to encourage consumers to drink filtered water
Drinking Brita-filtered water in reusable containers can help reduce the more than 60 million plastic water bottles thrown away every day in the U.S.
A single Brita pitcher & filter can replace 300 standard ounce containers of bottled water
Since 1966, Brita water filters have delivered great tasting water consumers want without waste and cost of bottled water.
To further reduce bottled-water waste, Brita Products Company and Nalgene Outdoor Products have teamed up to encourage consumers to kick bottled-water habit. At FilterForGood.com, consumers can pledge to switch to reusable water bottles filled with home-filtered water.
Drinking Brita-filtered water in reusable containers can help reduce the more than 60 million plastic water bottles thrown away every day in United States.
Single Brita pitcher and filter (1 lb. of plastic) can replace 300 standard 16.9 ounce containers of bottled water (15 lbs. of plastic), saving energy and use of petrochemicals to make plastic. And that doesn’t include fuel needed to transport bottled water from plant to store.
Switching to reusable water bottles and home-filtered water is good for consumers’ bank accounts, too.
Average Brita pitcher filters 240 gallons of water a year for about 19 cents a day. To get same amount of water from water bottles would require 1, ounce water bottles a year. At average cost of a dollar a bottle, that's $4.98 a day.

17. Burt’s Bees QUALITY
OUR MISSION IS TO ACHIEVE EXCELLENCE EVERYDAY THROUGH MENTORING.
OUR VISION IS TO BE A TEAM FOCUSED ON QUALITY, VALUE, SERVICE, & GROWTH.

18. 5 C’s for QUALITY NATURAL PERSONAL CARE PRODUCTS
1 - COMMUNICATION (employees, management, suppliers, customers, & consumers)
2 - COMPLIANCE (regulatory requirements, training, specifications,
test data)
3 - COLLABORATION (cross-functional internal & external teams)
4 - COACHING (mentoring, educating)
5 - CONTROL (processes, documents, formulas, natural raw materials, components)