About Betterware de México, S.A.P.I. de C.V.

Betterware de Mexico, S.A.P.I. de C.V. operates as a direct-to-consumer company in Mexico. The company is a subsidiary of Campalier, S.A. de C.V. Segments The company operates through two segments: Home Organization Products (Betterware or BWM); and Beauty and Personal Care Products (JAFRA). BWM This segment integrated by six different categories: kitchen and food preservation, home solutions, bathroom, laundry & cleaning, tech and mobility and bedroom. For the 2022 period, this segment represented 55.1% of the company's net revenue in a consolidated basis. This segment focuses on creating innovative products that solve specific needs regarding organization, practicality, space-saving and hygiene within the household, with a wide product portfolio, including home solutions, kitchen and food preservation, technology and mobility, bedroom, bathroom, laundry and cleaning and other categories that include products and solutions for every corner of the household. This segment's products are sold through monthly catalogues published throughout the year. During 2022, BWM launched 568 new products with a balance of 397 new developments and 171 bring-backs. Despite the 6.4% reduction in the number of 'Stock Keeping Unit' (SKU's) displayed per catalogue (driven by change to monthly catalogues), increased innovation allowed Betterware to exhibit more than 3,800 SKU's throughout the year. All of the company's home organization's products are branded with unique characteristics and manufactured by +365 certified manufactures in China and Mexico, and then delivered to BWM's warehouse in Guadalajara, Jalisco where the company processes and packs the products. The company sells its home organization segment's products through a unique two-tier sales model. As of December 31, 2022, more than 39,413 distributors and 778,845 associates across Mexico, who serve + 23% household penetration in Mexico; and 79% of distributors and 28% of associates place orders every week. The company's distributors and associates are monitored tightly through an in-house developed business intelligence platform that tracks weekly performance and has a detailed mapping system of the country to identify potential areas to penetrate and increase the network. This segment business model is tailored to Mexico's unique geographic, demographic and economic dynamics, where communities are small and scattered across the country, with very low retail penetration and difficult to fulfill last mile logistics. Additionally, the company's business model is resilient to economic downturns and seasonal fluctuations given low average sales price to consumers. The company has a zero last mile cost, because its distributors and associates deliver its products to final consumers, which means that its state-of-the-art infrastructure allows it to safely deliver products to every part of the country in a timely and efficient manner. The company's infrastructure is backed by the strategic location of its distribution center in Jalisco, Mexico. Supported by the company's top-notch product innovation, business intelligence and technology units, which provide daily monitoring of key metrics and product intelligence, the company's home organization product segment has been able to achieve sustainable double-digit growth rates by successfully expanding its household penetration. JAFRA This segment has a portfolio of more than 500 products within four main categories: fragrances, color, skin care and toiletries. JAFRA has been leader in the fragrance market since 2015. In 2022, the company's beauty and personal care segment's products were sold through 12 promotional catalogues published on a monthly basis offering 300 products in average per catalogue, as well as a brochure with annually available products at regular price. JAFRA develops approximately 200 new products in average for all categories every year. Almost all of the company's beauty and personal care segment's products are produced in its facility located in Queretaro, Mexico and distributed across Mexico and in some cities of the United States through its distribution center located in Lerma, Mexico. The company's beauty and personal care segment's products are sold through a generational multilevel model, reaching more than 7,500 cities in Mexico. This segment has a multilevel program, with 10 levels of seniority determined by the amount of sales and consultants they have, offering attractive benefits and incentives. As of December 31, 2022, the company had a network of more than 21,385 leaders and 492,191 consultants. This segment has one of the biggest distribution networks of leaders and consultants in Mexico reaching more than 7,500 cities. Also, 92% of leaders and 54% of consultants place orders on a monthly basis. Sales and Marketing The company's main advertising expenditures are sales catalog design and printing expenses, particularly with respect to its catalogues that are delivered to its distributors, associates, leaders and consultants who then distribute them to customers. The company has a rewards program intended to attract, retain, and motivate distributors, associates, leaders and consultants through product discounts, points, trips, gifts and more. Customers The company is 100% committed to provide products to its customers that serve as everyday solutions for modern space organization and beauty and personal care for all kind of clients. Most of the company's end customers are adult men and women with the desire of optimizing their homes organization and care about beauty and personal care. Strategy The company has a plan for growth, which includes organic and inorganic initiatives. The main strategies divided by timeline are the following: Short Term: New product categories; web marketing/e-commerce; and increase service capacity. Medium Term: New product lines; international expansion to North America and Latin America; and strategic business acquisitions. Acquisitions On April 7, 2022, the company acquired 100% of JAFRA ('JAFRA' or 'Jafra' refers to Jafra Cosmetics International, Inc., Jafra Mexico Holding Company, B.V., Distribuidora Comercial Jafra, S.A. de C.V., Jafra Cosmetics International, S.A. de C.V., Jafra Cosmetics, S.A. de C.V., Serviday, S.A. de C.V., Jafrafin, S.A. de C.V. and Distribuidora Venus, S.A. de C.V., on a consolidated basis) in Mexico and the United States, along with its trademarks 'JAFRA'.