Healthcare

<h2 class="MsoNormal"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry? &nbsp;</span></h2><p class="MsoNormal">I hold a Bachelor&acute;s degree in Chemistry plus a subsequent MBA with 25 years of experience in Business Management in diverse industries. I have devoted the last 14 years of my career to Medical Aesthetics, working for Anteis &ndash; located in Geneva; Merz &ndash; located in Frankfurt; HydraFacial, BioScience; and, nowadays, Solta Medical &ndash; located in Madrid. This blend of companies has allowed me to gain expertise, firstly in key treatment categories such as HA fillers, botulinum toxin, biostimulators, cosmeceuticals, and EBD, and secondly, to closely observe and learn about medical aesthetics dynamism and remarkable evolution.</p><p class="MsoNormal">&nbsp;</p><h2 class="MsoNormal"><span style="font-size: 12pt;">Q2. Who are the main players in the Medical Aesthetics industry, and what market share or position does each represent?&nbsp;</span></h2><p class="MsoNormal">The main players are:</p><ul><li class="MsoNormal">Allergan</li><li class="MsoNormal">Galderma</li><li class="MsoNormal">Merz Aesthetics, followed (not necessarily in this order) by</li><li class="MsoNormal">Cynosure-Lutronic</li><li class="MsoNormal">Teoxane</li><li class="MsoNormal">HydraFacial</li><li class="MsoNormal">Sinclair</li><li class="MsoNormal">Neauvia</li><li class="MsoNormal">Croma</li><li class="MsoNormal">Inmode</li><li class="MsoNormal">Solta</li><li class="MsoNormal">Sisram</li></ul><p class="MsoNormal">Market shares might vary from country to country based on patient beauty patterns and trends.</p><p class="MsoNormal">&nbsp;</p><h2 class="MsoNormal"><span style="font-size: 12pt;">Q3. What is the current demand/volume in the Medical Aesthetics market? How are key players adapting?</span></h2><p class="MsoNormal">Below BCG Global Aesthetics Market value estimation and projection.&nbsp;</p><p class="MsoNormal">Key players, likewise, industry in general, are evolving into a more natural and authentic beauty communication, fostering non-invasive and combined protocols to tackle the multifaceted aging process.</p><p class="MsoNormal">Pre-juvenation, skin quality, regenerative medicine, protocol personalization, well-aging, body contouring, sustainable aesthetics as well as gender inclusion and diversity are also relevant key trends. Medical Aesthetics is becoming a lifestyle habit, being part of our personal well-being and not anymore perceived as a taboo or unattainable.&nbsp;</p><p class="MsoNormal">&nbsp;</p><h2 class="MsoNormal"><span style="font-size: 12pt;">Q4. What are the best growth opportunities in the market, and why? </span><strong>&nbsp;</strong></h2><p class="MsoNormal">As exhibit 1 by BCG showcases, all medical aesthetics treatments have positive growth projections. Our lifespan is extending, and the population is keen on a smooth aging process, so this is directly provoking a potential opportunity for medical aesthetics.</p><p class="MsoNormal">Besides, growth opportunities are linked to investment in patient education, social media as a source of information, innovation (treatments, indications, business models and customer experience, AI and robotics etc.), and not forgetting that both product safety and scientific evidence before-after of the relevant procedure are of utmost relevance to growing in aesthetics.&nbsp;</p><p class="MsoNormal">Moreover, the growth opportunity is remarkable just by observing the low penetration of medical aesthetics procedures (exhibit 2 by BCG).</p><p class="MsoNormal">&nbsp;</p><h2 class="MsoNormal"><span style="font-size: 12pt;">Q5. Are there recent or planned investments in technology to improve the operational efficiency of the Medical Aesthetics supply chain? &nbsp;</span></h2><p class="MsoNormal">While not an expert in Supply Chain, I&acute;m certain that technology is definitely enhancing that operational efficiency:&nbsp;</p><ul style="margin-top: 0cm;" type="disc"><ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="mso-list: l0 level2 lfo1; tab-stops: list 72.0pt;">ERP software and digital platforms help with forecasting, invoicing, customer interaction, order supply, stock management, and order tracking</li></ul></ul><ul style="margin-top: 0cm;" type="disc"><ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="mso-list: l0 level2 lfo2; tab-stops: list 72.0pt;">Robotics help with warehousing, order preparation, and shipping</li></ul></ul><ul style="margin-top: 0cm;" type="disc"><ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="mso-list: l0 level2 lfo3; tab-stops: list 72.0pt;">Furthermore, AI will support and enhance all these activities, maximizing operational efficiency and bringing key business pillars such as Customer Service, Sales, Marketing, Supply chain, compliance, and RA closer together</li></ul></ul><p class="MsoNormal">&nbsp;</p><h2 class="MsoNormal"><span style="font-size: 12pt;">Q6. Are there any mergers and acquisitions/consolidations that are expected in the industry? &nbsp;</span></h2><p class="MsoNormal">Without any doubt new acquisitions and consolidations can be expected. We are observing a very dynamic trend during last years that will continue, resulting in stronger aesthetics players. For instance, some months ago Cynosure and Lutronic announced its merge, becoming a top player in EBD.&nbsp;</p><p class="MsoNormal">And only in last few weeks: &nbsp;</p><ul><li class="MsoNormal">L&Oacute;r&eacute;al announced a strategic partnership and 10% stake in Galderma</li><li class="MsoNormal">Crown announced the acquisition of Revance Therapeuticso</li><li class="MsoNormal">Prollenium Medical announced UK partnership with Alma Lasers</li></ul><p class="MsoNormal">These operations spur new portfolio selling, business, and operational synergies, allowing corporations to reach a larger global market. Moreover, the increasing relationship between the beauty and aesthetics industries is evident: non-invasive aesthetic treatments may represent a key growth area for traditional beauty companies offering a more comprehensive portfolio of beauty solutions (medical and non-medical) to consumers.&nbsp;</p><p class="MsoNormal">&nbsp;</p><h2 class="MsoNormal"><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?&nbsp;</span></h2><p class="MsoNormal">In my view, and apart from ensuring that P&amp;L is healthy, I&acute;d ask for the 5-year strategic plan and what&acute;s the company Value Proposition in a very dynamic and fast-paced industry.</p><p class="MsoNormal">&nbsp;</p><p class="MsoNormal">&nbsp;</p><p class="MsoNormal">&nbsp;</p>