Castro Model Ltd.

Investor Presentation • Feb 28, 2024

February 2024

Yves Rocher, the #1 Beauty Brand in France, Selects the Castro-Hoodies Group as its Exclusive Distributor in the United States of America.

The US Beauty Market annual revenue is estimated at \$100bn and is expected to grow at a CAGR of 6% until 2032 with 28% of revenues generated online.

Source: Euromonitor, Statista, Precedence Research, and Kantar, the world leader in consumer experience

ABOUT YR

Yves Rocher is the leading Beauty brand in France and a global leader in Botanical Beauty.

Yves-Rocher sales stand at 1.5 billion USD, with more than 250 million products sold, 7,500 employees worldwide, 90 markets and 2,300 stores and 3,500 wholesale locations.

KEY DATES

WHY?

We believe that Yves Rocher has invaluable advantages that differentiate it from the competition while attracting new consumers who are eager to find proven natural solutions to their beauty needs;

• French seal of quality, expertise and efficacy
• Natural active ingredients
• 60 years of legacy and heritage
• Affordable price point
• Proven Israeli Omni-channel concept
• Decades long experience managing retail operations
• Experience managing Best-in-Class E-com operations
• Access to cutting edge Israeli technology

Decade long partnership and trust

HOW?

The proven Israeli operating model can increase sales with lower costs and risks while providing a proven formula for penetration; Strong and lean digital and E-com operations with an efficient stores model based on our experience.

As part of the agreement the Castro-Hoodies Group will establish Radixis, a US-based company which will lead Sales and Marketing operations in the US. Radixis will launch a state-of-the-art R&D Center in Tel Aviv which will host all technological teams to support E-com and in-store operations in the US using the latest AI technologies in the field.

Yves Rocher USA will be led by Ron Rotter who will lead the group's strategic venture in the US as its founder and president. The initial investment in Yves Rocher USA stands at \$7M.

Castro-Hoodies will be joined by digital entrepreneur and US digital market veteran Avi Goldfinger who will co-invest in the American venture. Avi will hold the position of Head of Digital and Technology

Two Israeli tech trailblazers will invest in the venture and join as active-advisors in the fields of Technology and Digital Operations

Assaf Hefetz, Co-Founder and former CTO of Snyk, a leading developer security company valued at \$7.5 billion, began his tech journey at age 14, pursuing a degree in Computer Science. With extensive experience in the world of cybersecurity, Assaf is also an active angel investor and startup advisor. Assaf will serve as Radixis Cyber and Technology Advisor.

Rami Lachter – Founder and President of Flare, a hyper-growth US based consumer business and a market leader in its space. Before founding Flare, Rami was a private equity investor leading investments into companies ranging from earlystage deep tech startups to late-stage growth companies. Rami will serve as Radixis Generative AI & Digital Operations Advisor.

DID YOU KNOW?

We do not and never promote animal testing either for our finished products or the ingredients they contain.

RADIXIS R&D CENTER

Radixis Tel-Aviv R&D Center will harness the Israeli Tech in Artificial Intelligence, Big Data and Machine Learning in the fields of E-com, Retail and Cosmetics to enhance the customer experience and ensure flawless conversion funnel both online and in-stores.

Our AI technologies will improve customers' satisfaction by matching the right active natural ingredients in the Yves-Rocher rich product offerings to the customers' needs and personal biological data.

Our formula for success is based on integrating the latest technologies that supplement the customer experience.

Using Yves Rocher proven loyalty scheme, we will leverage big data analyses to exactly meet our customers needs.

DID YOU KNOW?

Yves Rocher is the fist French brand to obtain UEBT certification for its 9 emblematic plants.

PHYSICAL RETAIL GO TO MARKET STRATEGY

• Our plan is to be laser focused on a geographical area where we will concentrate our efforts and where we can grow scale which will later allow us to expand to adjacent areas.
• We see the Washington New-York Boston axis as our entry to the market and have mapped around 100 potential locations within this area.
• We will establish two operating teams: Physical operations and Digital operations teams
• Roi Kovalio head of Castro-Hoodies beauty division for the last three years will relocate to the US to lead the US retail and wholesale operations. Roi started his retail career as a retail area manager in Florida and later held various positions in Adidas where he held the position of head of Israel retail.

RETAIL GO TO MARKET STRATERY

We will execute based on our proven Omni-channel model ensuring effectiveness and efficiency

ACT BEAUTIFUL PROGRAM

ACT BEAUTIFUL IS TO CHOOSE ...

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Today: 100% plant-based active ingredients with proven efficacy, 5,000 plant species studied in our Botanical Garden since 1975, 95% of our products made in France.

2030: 100% of our products made in France.

Today: 93% of ingredients of natural origin in all our skincare products, 1,600 ingredients banned from our formulas, i.e. 300 more than European regulations.

2030: 96% of ingredients of natural origin in all our skincare products.

Today: 50% recycled plastic in our packaging, 45% fully recyclable packaging. 2030: 100% fully recyclable packaging -30%* less plastic used.

* in tons of plastic vs 2019, -7% in 2022

ACT BEAUTIFUL PROGRAM

ACT BEAUTIFUL IS TO CHOOSE ...

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Today: 9 plants certified organic and grown using agroecology in our 60 hectares of fields in La Gacilly. 2030: 18 plants.

Today: 185 French brand to obtain UEBT certification for our La Gacilly plants, 150 plant chains certified by an external organization (AB, UEBT, FairTrade...). 2030: 250 sustainable plant chains.

Today: 3,300 partners supported in their farming practices and economic development.

2030: 5,000 partners.

Today: -50% carbon emissions in our La Gacilly factories, -23% water use in our La Gacilly factories. 2030: 75%* of carbon emissions in our factories, -30%** of water used. rs 2

*in tons of carbon vs 2019 ** in cubic meters of water per ton of product vs 2019

ACT BEAUTIFUL PROGRAM

ACT BEAUTIFUL IS TO CHOOSE ...

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Today: 100% of our employees trained in environmental issues.

2030: All our employees will be working in the field with a local association to preserve nature and plants.

Today: 120M trees planted and protected by the Yves Rocher Foundation thanks to a partnership of more than 30 years. 2030: 150M trees planted and protected by the Yves Rocher Foundation.

Because we all have the power to act, take part in our greening actions for a daily life with more and more natural.

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Foundation Yves Rocher

Committed to biodiversity

Protecting biodiversity is the primary mission of the Yves Rocher Foundation. It is a positive battle in favor of life. The Foundation strives to put biodiversity at the heart of the daily life of every individual by providing support and financial aid for local, alternative and effective initiatives across the globe. In 2020, it had reached its goal of planting 100 million trees thanks to close collaboration with its experts and the associations and NGOs working in the field. The Foundation is also synonymous with the 500 Terre de Femmes winners working tirelessly in over 50 countries for the good of our planet.

The Foundation operates on a collective basis, and its pluralist approach is firmly focused on action. Who are its principal stakeholders? Scientists, planters, an extensive community of politically, socially and environmentally aware photographers, and women who have chosen to change the world at a local level.

"NATURE IS MY GUIDE, I JUST FOLLOW IT"

Mr. Yves Rocher

Thanks!