Serving the Beauty Care Industry Around the World for Over 30 Years

S E R V I N G T H E

BEAUTY CARE IN DUST RY

A R O U N D T H E W O R L D F O R O V E R 3 0 Y E A R S

CH2M HILL is a leading, full‑service

engineering, procurement,

construction, and operations firm

providing innovative, practical,

sustainable solutions for the consumer

products and beauty care industries.

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CH2M HILL is recognized as a world leader in the design and construction of

advanced industrial manufacturing facilities, providing turnkey solutions that meet

and exceed our client’s expectations. We have a long history of meeting complex

challenges and creating technical innovation in established and emerging markets.

CH2M HILL has provided innovative solutions and successful projects for top consumer products and beauty care companies, including:

• Avon

• Beiersdorf

• Coty

• Colgate‑Palmolive

• Henkel

• L’Oréal

• Mary Kay®

• Natura

• Oriflame

• Confidential Consumer Products Manufacturer

• Unilever

One Team, One FocusOur strength is our ability to collaborate with clients to produce winning results. We blend our expertise with your experiences to deliver solutions that position you for a strong future.

Recognized as an Industry LeaderIn 2012, Engineering News-Record ranked CH2M HILL in the top five for success in several disciplines:

•Manufacturing• Engineering/Design

• Water Supply/Treatment

• Construction Management‑for‑Fee

ENR Ranked

in Manufacturing for 11 consecutive years

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Issues important to you are important to usWe’ll help you seize growth opportunities in the rapidly expanding global economy, and quickly get your products to market. And we’ll guide you in your efforts to grow efficiently and safely, maximizing economic performance without impacting your continuing operations.

Global Reach with Local Sensibilities

Time to Market

Sustainable Solutions

Safety for Today and Tomorrow

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Global Reach with Local Sensibilities

CH2M HILL’s global experience and local knowledge can help you expand in existing markets.Drawing from our established network of global offices, regional low‑cost design centers, project sites, and joint venture relationships, CH2M HILL will advise and guide you through your global project. Whether you are explanding, retrofitting, relocating individual lines or whole operations, we’re ready to work with you. And when you’re ready to move into new markets and new countries, we’ll help you navigate the challenges. We routinely deal with site selection, permitting, suppliers and contractors, designing to local codes and country regulations, building processes and materials. Decommissioning services, including recyclng, reusing, and relocating equipment and bulding materials are also available.

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Global Resources We serve our consumer products, beauty care, pharmaceutical and manufacturing clients through our Industrial & Advanced Technology (I&AT) business group, which is structured to provide global project delivery services. Through our fully networked organization, we align our resources with your specific opportunity, location, technology needs, and requirements. Our approach efficiently identifies and deploys the resources needed and monitors performance and customer satisfaction.

Project delivery using multi‑office resources is business‑as‑usual for us. The centralized management of our staff provides consistency and continuity for our clients, and access to the best technical resources for our their project. Our eletronic project delivery tools are networked globally, providing insight into current activities on projects, and sharing lessons learned, value‑added solutions, and best practices.

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Positioning for Growth, Streamlining the Supply ChainIn today’s economic climate, manufacturers face even greater pressures to increase profitability, enhance performance, and accelerate the level of integration of their supply chain. The ability to identify and access the best operational opportunities among the multitude of alternatives becomes a critical requirement to long‑term success.

CH2M HILL’s Lean manufacturing and process improvement services are our way of helping clients improve their competitive edge in the marketplace. These concepts, adapted to improving your specific processes, are especially valuable in times of economic uncertainty.

A Lean analysis allows for adjustments in operating and capital expenditures—cycle time and material handling are cut, scrap and manufacturing costs are reduced, process waste is eliminated, and productivity and value‑added work increase. And in doing so, operations and processes will be firmly in place, and a business will be positioned for expansion when the market moves into a growth stage. It’s not about spending dollars—it’s about optimizing every dollar spent.

To be globally competitive in the 21st century, most manufacturing organizations must begin to change the way they think and react, moving toward a leaner, more agile environment and away from a more traditional mass production environment with large inventory. During the past 15 years, CH2M HILL has developed the expertise and tools to enable our customers to successfully achieve their improvement goals and competitiveness by assisting them throughout their transformations.

Lean Manufacturing We integrate Lean methodologies into our engineering, design, and construction services. Following a structured set of innovative strategies and a rigorous engineering approach, Lean services guide our clients in making process improvements that result in a long‑term, positive impact on the bottom line.

“To be successful, our clients must react to

changing sales across geographies. We

rapidly respond to their needs to help keep

them competitive and operational through

those changes.”

— Maria‑Elena Tierno, Vice President, Consumer Products and Beauty Care

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Time to Market

CH2M HILL’s specialists understand the history, best practices, and leading trends of the consumer products and beauty care industries across the length of the manufacturing value chain.

Our process, instrumentation, and packaging experts make recommendations that help our beauty care clients realize their goals: to lower costs, create efficiencies, and reduce schedules.

We also provide the design and integration of chemical and mechanical processes to meet your business needs from raw material handling to delivering the finished product for shipping. We tailor our process system development to the specific needs of each client.

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Sustainable Solutions Knowing your products and the most current and cutting‑edge technologies available, we’ll partner with you to formulate a complete package of engineering, procurement and construction management (EPCM)services specific to your project needs, business objectives, and environmental goals. We’ll apply eco‑conscious sustainable solutions to optimize your facilities and infrastructure, refine and increase your efficiency, and reduce your lifecycle costs.

We actively engage in creating safe, healthy, and functional workplaces by applying sustainable concepts in the design of new facilities and redevelopment projects—green buildings that use resources efficiently, minimize demolition and construction waste, and create healthy indoor environments, as well as buildings that are energy efficient, have a low impact on the surrounding environment, are easily reconfigured as needs change, and use natural, low‑tech solutions instead of complex or resource‑intensive approaches.

We are recognized for our ability to deliver projects designed toward maximizing economic performance and minimizing environmental impact. We work to gain LEED® certification and other country‑specific green building initiatives, using in‑house, integrated design teams with the full suite of design disciplines: civil, architectural, mechanical, electrical, chemical, interiors, and landscape.

CH2M HILL has more than 200 LEED® and BREEAM® projects either completed or underway, including 23 LEED® Silver and 18 LEED® Gold buildings.

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Global Consciousness

When you’re prepared to incorporate the newest sustainable technologies, count on CH2M HILL’s experience to lead the way

Our work embraces the three facets of the sustainability triad: economic feasibility, social well‑being, and environmental protection. CH2M HILL infuses sustainability‑inspired principles, knowledge, technologies, tools, and methods that lead to long‑term sustainable solutions for our clients and our world.

CH2M HILL is recognized as an industry leader in sustainability. We are an active member of international organizations such as the World Business Council for Sustainable Development, the Pew Center on Global Climate Change, and the World Resources Institute.

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Exceptional Safety PerformanceOn the job site, just like everywhere else, we believe all safety incidents are preventable. We’re committed to making this a reality and we have the numbers to prove it. Our industrial facilities group has reached over 17 million hours without a lost‑time incident on the job. We work with you to develop project‑specific safety plans. We integrate our program with your policies and procedures to achieve or surpass your goals through pre‑task safety planning, safe behavior observations, regular monitoring, and routine reporting procedures.

0.0

0.5

1.0

1.5

2011201020092008

Recordable and Lost Time Incident Rates

0.390.84

0.120.28

0.55

Industry average for recordables is 1.0

Industry average for lost time cases is 0.4

0.29

0.45

0.18

Recordable Incident Rates

Lost Time Incident Rates

Notes:– Includes worldwide recordables and lost time cases for all CH2M HILL

Companies.

– Lost time cases are those that involve days away, restricted duty, or transfer to another job.

– Both recordable incident and lost time rates are figured as a number of cases per 200,000 hours worked, as specified by industry standards. 200,000 is an estimate of the hours worked by 100 employees in a year.

– Industry averages are general averages for Engineering.

0

50

100

150

200

250

2011201020092008

Note:

– Includes worldwide recordables for all CH2M HILL Companies.

Number of Recordable Incidents for CH2M HILL Family of Companies

203

125

9080

Industrial Facilities Safety: 17 million hours without a lost‑time incident

Phot

o c

ourt

esy

REC

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Safety is our priority on every project, and we’re dedicated to achieving world‑class status as a leader in health, safety, security, and environment. Central to our HSSE efforts is the firm‑wide focus on“Target Zero”—an overarching commitment by all members of the CH2M HILL team for injury‑ and incident‑free workplaces

CH2M HILL Shanghai celebrates 2M hours without a lost incident on Astra Zeneca project.

Safety for Today and Tomorrow

CH2M HILL is committed to safety improvement for our employees and our clients. We work to protect today’s workforce, and actively plan to keep future employees safe through forecasting best practices and processes.

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Integrated, Full-Service SolutionsWe offer integrated engineering, procurement, and construction services to take your capital investments from concept to finish—delivering complete plants, processes, facilities, and infrastructure. Some specific CH2M HILL solutions spanning the consumer products value chain include:

Facilities/Utilities

Site Selection

cGMP/Clean Facility Designs

High Purity Water Systems

Plant Utility Audits/Upgrades

Material & Personnel

Flow Analysis

Employee Facilities and Amenities

Office Space, R&D Labs and Quality Labs

Process Engineering

Process Development/Simulation

Process Optimization/Cycle Time Reduction

Equipment Design and Specification

CIP/SIP System Design

3D Design Development

Start‑up & Training Support

Packaging

Packaging Equipment and System Integration

Packaging Equipment Development

System and Equipment Reliability Assessments

Packaging Systems Improvement Initiatives

Packaging Control, Automation & Information

Decision Analysis Tools

Factory/Systems

Acceptance Testing

Start‑up and Training Support

Packaging Machine Design

Information and Control Systems

Control System Design and Automation

Batch Reporting/Lot Tracking

Control Systems Simulations

Instrumentation/Hardware Design

Control Platform/System Architecture Development

HMI Custom Designs

Modular Software Development

Network Communications

Start‑up & Training Support

Avon ProductsEngineering, Procurement and Construction Management – Facility Expansion Guangzhou, China

CH2M HILL provided integrated engineering, procurement and construction management (EPCM) services for the expansion of Avon’s manufacturing facility in Guangzhou, China. The project included the design of the raw ingredient receiving and warehouse area; expanded finished ingredient warehouse and dispatch area; expanded powder processing area; and expanded lotion processing and packaging area. We integrated the principles of the Guangzhou Light Industry Design Institute to complete the design in a manner that promotes Avon’s corporate image as a socially accountable and efficient industrial neighbor. CH2M HILL established rigorous policies for quality control and safety procedures throughout the process. The project achieved a zero accident and incident rate. We were awarded Phase 2 of the Avon project to deliver procurement assistance and construction management, which included 15,000 square meters of receiving, production, and office space. This facility is the first cosmetic manufacturing facility in China to meet the Good Manufacturing Practices (GMP) standards.

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Regulatory Compliance

cGMP Compliance Assessment

Validation Master Planning Support

IQ/OQ/PQ Protocol Development and Execution

SOP Development

cGMP Training

Software Validation

Lean Manufacturing

Visioneering

Lean Workshops

Supply Chain Network Optimization

Distribution Center Design

Material Handling and Storage Systems Design

Implementation Assistance

Kaizen Event Facilitation

Environmental Expertise

Site Auditing and Remediation

Environmental Compliance and Permitting

Integrated Water Management (use reduction/reuse)

Water/Wastewater Treatment Systems

Emerging Technologies and Solutions

Air Quality Solutions and Technologies

Decontamination and Decommissioning

International Flavors & FragrancesEngineering, Procurement and Construction Management—Facility Design São Paulo, Brazil

CH2M HILL designed an IFF creative center consisting of four buildings, each with approximately 2,400 square meters of space. The center was designed to accommodate:

• Fragrance and Aroma Laboratories

• Greenhouses

• Sensory Center/Market Research

• Multiple‑Use Rooms and Convention Rooms

• Flammable Product Warehouse

• Business Offices for Marketing, Sales, Finance and Informatics, and Local and Regional Management

MaybellineFacility and Process Consulting Little Rock, Arkansas, USA

CH2M HILL reviewed European process equipment for conformance to local and national codes, as well as the internal facility and process standard and code requirements of Maybelline’s parent company, L’Oréal. We provided recommendations for quality improvements and associated costs to implement the project in a phased approach based on risk priorities. The equipment was inspected in Europe and installed in the Little Rock facility to ensure changes were incorporated correctly.

Mary KayProduction Capacity Upgrade Design Dallas, Texas, USA

CH2M HILL provided a four‑phase study that included the initial master plan required to increase this client’s existing production level from $270 million to $750 million with an ultimate level of $1.5 billion. On subsequent phases of the design, we developed the criteria for floor space and manufacturing equipment including packaging equipment. In the latter phases, we provided detailed mechanical and electrical machine design.

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Confidential ClientEngineering, Procurement and Construction Management—Facility Expansion Jurong, Singapore

CH2M HILL provided EPCM services for a specialty chemical facility expansion, more than tripling the plant’s compounding capacity, and providing better space utilization, workflow and production efficiencies.

The scope comprised detailed design, engineering, fabrication, supply, testing and commissioning of the plant expansion, and included enhancements to cover GMP objectives and address key EHS compliance issues.

CoverGirlProcess Development—Capacity Increase Hunt Valley, Maryland, USA

A confidential consumer products manufacturer selected CH2M HILL to assist in the development of a new liquid make‑up production system. The design, in compliance with all FDA requirements for cosmetics processing, incorporated an increasing number of formulations across multiple product lines. The system we designed used mixed proof value components and a simplified PC‑based batch recipe control system to allow individual phases of the manufacturing process to be sealed off and for equipment to be sanitized while products advance to further stages of production. The system was fully automated using cGMP/sanitary design principles and a complex clean‑in‑place system that:

• Reduced batch cycle times• Enhanced production flexibility• Increased production capacity• Eliminated cross‑contamination of colors/hues• Reduced downtime between production cycles

Confidential ClientCompliance Analysis and Corrective Action Recommendation for Ethanol Handling, Storage, and Production Moscow Region, Russia

CH2M HILL analyzed the current situation for ethanol handling, storage, and production; performed a gap analysis; determined compliance actions based on local regulations; developed approximate costs for compliance actions implementation; and provided a report prioritizing those actions based on cost and ease of implementation.

The data analysis included permits, certification, approvals, and design documentation – both for the existing

operation and the proposed modification. The site visit was conducted by a multi‑disciplined team and safety specialists, who inspected all production areas related to ethanol without disruption to operations.

Natura CosmeticósFacility Design São Paulo, Brazil

CH2M HILL designed three facilities in Brazil for Natura’s hydro‑alcoholics, hair and skin care, and make‑up products. We also provided construction assistance for the instrumentation and electromechanical set up.

Dial CorporationFacility Design, Engineering, and LEED Certification Scottsdale, Arizona, USA

Architecture, engineering, contract administration, and LEED certification were among the services CH2M HILL provided to Dial Corporation during construction of its 340,000 square‑foot corporate office and R&D facility. The project features a five‑story atrium, breathable roof, pilot plants for scale‑up testing, cafeteria, offices, and a three‑level underground parking garage with spaces for 1,000 vehicles. The R&D area houses analytical, microbiology, and virology labs for studying product effectiveness.

The facility’s technical areas comply with FDA, EPA, and all local regulations, codes and standards. This project includes the design and construction of OTC laboratories, development and testing areas that meet GMP standards. The architecture emphasizes energy conservation and the use of natural materials, and the facility incorporates environmentally sensitive design, significant factors in LEED certification. The building houses 800 employees of Dial and its parent, Henkel AG & Company.

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BeiersdorfEngineering, Procurement and Construction Management Bangkok, Thailand

Beiersdorf, a leading international skin and beauty care company, chose CH2M HILL to lead the expansion of its Thailand facility in response to strong sales growth.

Headquartered in Germany, Beiersdorf brands include award‑winning NIVEA, La Prairie, and Eucerin. With well over 300 full‑time employees in the ASEAN region, CH2M HILL provided full engineering, procurement and construction management (EPCM) services to Beiersdorf using staff from our Singapore and Bangkok offices with experience in the skincare and beauty industry. CH2M HILL performed the conceptual and detailed design for the manufacturing, packaging, utilities and auxiliary areas of the facility.

Deliverables included the architectural challenges for the new and existing structures, structural design for the renovation and extensions of the existing facility, electrical detailed design, and mechanical disciplines including fire protection, process utilities, air conditioning, tank farm and wastewater treatment. The design significantly increased the size of the current facility and allows for future expansion.

L’OréalConstruction Management Xochimilco and Cuatitlan, Mexico

CH2M HILL supervised the construction of a distribution center, offices, and a warehouse in Cuatitlan. In Xochimilco, we supervised the expansion of a raw material warehouse and production building.

Confidential Cosmetics CompanyEngineering, Procurement and Construction Management Poland

CH2M HILL developed a conceptual design, option analysis and detailed design engineering services for permit, tender, and construction purposes for a new extension at the client’s facility. The new building includes a mixing area, packing and labeling lines, and an electrical substation.

Deliverables included a technical documentation package, architectural site and elevation plans, structural design, water, wastewater and natural gas systems, electrical detailed design, and mechanical design and documentation including fire protection, HVAC and utilities, and the basis of auxiliary systems.

LancômeFacility Master Planning Piscataway, New Jersey, USA

CH2M HILL performed master planning and provided expert analysis of plant layout, operations, and support areas for Lancôme’s 200,000 square‑foot manufacturing and packaging facility. We achieved numerous client‑established objectives through the master plan, including responses to increasingly stringent standards of corporate and regulatory agencies regarding GMPs.

CH2M HILL prepared a functional adjacency diagram to address multiple production issues and improve security; layout; flow of materials, people and wastes; and access by support services.

Colgate-Palmolive CompanyFacility, Process and Instrumentation Design Burlington, New Jersey, USA

CH2M HILL provided detailed design, process and instrumentation design, and plant layout for a flavor and fragrance compounding center that makes toothpaste, soap, and other health and beauty aids. The facility receives and stores raw materials used for flavors and fragrances in Colgate products. The raw materials are mixed, blended, and drummed for dispatch to Colgate‑Palmolive plants.

• Just‑in‑time inventory methods cut inventory costs by 78 percent

• Production modules of different sizes allowed for efficient production of variable size lots

© 2012 CH2M HILL IAT081512002530MKT

Maria-ElenaTierno,MS,MBAVicePresident,ConsumerProductsandBeautyCare901 New York Ave N.W. Suite 4000 EastWashington, DC 20001USATel: +1 [email protected]

ch2mhill.com

About CH2M HILLEmployee‑owned CH2M HILL is a global leader in full‑service consulting, design, design‑build, operations and program management services for public and private clients. With US$7 billion in revenue and 28,000 employees worldwide, we deliver innovative, practical, sustainable solutions—helping clients develop and manage infrastructure and facilities that improve efficiency, safety and quality of life. CH2M HILL has long been recognized as an industry‑leading program management, construction management and design firm as ranked by Engineering News-Record (2012) and has been named a leader in sustainable engineering and environmental services providers by Verdantix.

Visit us at ch2mhill.com, twitter.com/ch2mhill and facebook.com/ch2mhill.