Waldencast Plc · NASDAQ:WALD
Waldencast — Waldencast Acquisition — SPAC Merger (April 2022)
108 slides from Waldencast's SPAC merger presentation, Apr 28, 2022
Slide 1: Analyst Day Presentation April 27th, 2022
Analyst Day Presentation April 27 th , 2022
Slide 2: Forward Looking Statements
‘This presentation (his "Presentation”) relates to a proposed business combination (the "Business Combination") between Waldencast Requisition Carp. (Waldencast?) and OBAGI Global Holdings Limited ands subsiiavies OBAGI") and Milk Makeup, LLC ("Milk) Forward Looking Statements This Presentation cont
Slide 3: The Waldencast executive team
We are a team deeply experienced across the beauty, wellness, and consumer goods industries, building a world - class brand development platform to identify, conceptualize, launch, and profitably scale brands Michel Brousset Founder and CEO 25+ years experience The Waldencast executive team Hind Seb
Slide 4: Our ambition: global beauty and wellness multi-brand platform
Our ambition is to build a global best - in - class beauty and wellness multi - brand platform by creating, acquiring, accelerating, and scaling the next generation of high - growth, purpose - driven brands
Slide 5: Massive addressable global beauty and personal care market
Skincare $155bn 29% 7.0% Color cosmetics $66bn 12% 9.5% Haircare $83bn 16% 6.3% Bath and shower $48bn 9% 4.6% Fragrance $54bn 10% 8.3% % of BPC market¹ 2021 - 2023 CAGR¹ Massive addressable market with attractive category dynamics... Global market size¹ Global beauty and personal care market 1 Beaut
Slide 6: Disruptor brands are gaining market share and driving sector growth
Disruptor brands are gaining market share and driving sector growth +63 bps 68% +177 bps Highly fragmented market with growth driven by independent brands New consumer trends and technology are driving an explosion of new independent brands Clear opportunity to aggregate emerging brands under a new
Slide 7: Forces driving industry change
FORCES DRIVING INDUSTRY CHANGE Indie brands have been fueled by structural changes in consumer preferences and the beauty industry...
Slide 8: Indie brand limitations
INDIE BRAND LIMITATIONS – – – – ...but have been limited in their ability to scale
Slide 9: Waldencast allows indie brands to rapidly and profitably scale
Waldencast allows indie brands to rapidly and profitably scale Operational scale of a multi - brand platform Balanced portfolio to mitigate category fluctuations Expertise in managing global beauty brands at scale Asset light efficiency Market responsiveness and speed of entrepreneurial indie brands
Slide 10: What we bring: a re-imagined ecosystem
WHAT WE BRING A re - imagined ecosystem underpinned by a powerful platform… BEAUTY RE - IMAGINED platform ecosystem
Slide 11: Value proposition to brands
VALUE PROPOSITION TO BRANDS …with attributes that indie brands need to thrive platform ecosystem
Slide 12: Our starting point: OBAGI and Milk
Our starting point in building this vision are OBAGI and Milk 24% 30% The leading physician - dispensed skincare brand Leading clean make - up brand #1 80+ Net sales ($ in millions) Adj. EBITDA margin Net sales ($ in millions) NM 17% Adj. EBITDA margin #2 2.0m
Slide 13: Optimized multi-brand portfolio: today and future
FUTURE Optimized multi - brand portfolio spanning: TODAY This is only the beginning… x x x x x x CATEGORIES Skin Color Hair GEOGRAPHIES Global U.S. APAC CHANNELS Professional Specialty PRICE POINTS Prestige
Slide 14: A platform poised for long-term profitable growth
A platform poised for long - term profitable growth
Slide 15: OBAGI
Slide 16: The leading physician-dispensed skincare brand
The leading physician - dispensed skincare brand with attractive growth potential and strong anchor capabilities in skin health, complemented by a robust financial and operational backbone 16
Slide 17: An experienced leadership team of skin health experts
Jaime Castle President & CEO Laurence Dryer, PhD EVP, R&D Lisa Errecart EVP, Global operations Trish Mentas VP, Finance David B EVP, Global ell sales YEARS IN SPECIALTY 22+ 29+ 18+ 14+ 22+ YEARS IN OBAGI 8+ 9+ 18+ 14+ 9+ EXPERIENCE An experienced leadership team of skin health experts 17
Slide 18: Physician advisors across the aesthetic spectrum
Practice/ experience JoAn Monaco, Mark Craig, Nina Desai, Prem Tripathi, Ashish Bhatia MD, MS MD DO MD MD Board - certified plastic and Board - certified plastic Certified with American Fellowship - trained Fellowship - trained Specialty reconstructive surgery with surgeon and a member of the Academ
Slide 19: Advisors rave about OBAGI's understanding of channel needs
Our advisors rave about OBAGI’s powerful understanding of their channel needs 19
Slide 20: Physician video transcript: why trust and recommend Obagi
(Audio transcript of video to be played at investor day) Why do you trust and recommend Obagi products? [Prem Tripathi, MD: “The Obagi brand to me, is really about solidifying how science meets skincare.”] [Mark Craig, MD: “Obagi's scientific approach is really the reason that we have Obagi in our p
Slide 21: OBAGI is a leader in the fastest growing segment of skincare
$84 $26 $24 $9 $5 Asia Pacific Western Europe Latin America Key markets 2021 skincare market size ($bn) CAGR 2021 - 2025 5% 8% 8% 9% North America 2 6% 7% 1 Euromonitor International; Beauty & Personal Care, 2022ed, retail value sales, current prices, 2021 fixed ex rates; 2 Including the United Stat
Slide 22: Category leadership anchored in #1 perceived best performing brand
Category leadership anchored in #1 perceived best performing brand among ($ in millions) 30+ years of clinical experience $130 U.S. providers Largest U.S. professional skincare products companies¹ By estimated sales (2019) Independent brands in professional skincare by ranking Best performance brand
Slide 23: A versatile and diversified portfolio of skincare collections
OBAGI Nu - Derm ® systems A versatile and diversified portfolio of skincare collections to address a range of skin concerns = Number of studies conducted 10 Hyperpigmentation Brightening / Antioxidant 1 5 Elasticity / fine lines 3 Acne 1 Prejuvenation Pro - C collection ELASTIderm ® collection CLENZ
Slide 24: Differentiated competitive advantage through a credentialed, sticky business model
Differentiated competitive advantage through a highly credentialed and sticky business model Credentialed recommendation Science - led rigorous testing driving transformative results 1 Full range of skin solutions Highly specialized organization Baseline 24 weeks 23 1 Photos have not been retouched.
Slide 25: Embedded brand trust through physician and professional channels
Product performance Backed by world - class R&D program Builds credibility of physician / professional Drive more patients / customers to the practice Increase frequency of visit / repeat rate Meaningful revenue stream OBAGI has embedded brand trust and credibility as it is primarily dispensed throu
Slide 26: Leading position across physician satisfaction criteria
Physician tenure 1,2 Leading position across all key physician satisfaction criteria leading to long - lasting relationship 7% 6% 9% 9% 69% Less than 6 months 6 months - less than 1 year 3 years or longer 1 year - less than 2 years 2 years - less than 3 years 9.0 Order - to - delivery & customer ser
Slide 27: Physician satisfaction (cont'd)
Leading position across all key physician satisfaction criteria leading to long - lasting relationship (cont’d) Dr. Prem Tripathi, MD 26
Slide 28: Physician video transcript on key ingredients
(Audio transcript of video to be played at investor day) [Prem Tripathi, MD: “I'm a facial plastic surgeon, and without a doubt, other than sunscreen, these are the only skin care ingredients that do anything. Believe it or not, this is not a plug or an ad for this brand. But there's a reason why th
Slide 29: OBAGI Nu-Derm System results
OBAGI Nu - Derm ® System – normal to dry Baseline Note: Photos have not been retouched. Results may vary. For Important Safety Information, please see slide 53. 24 weeks 27
Slide 30: ELASTIderm Eye Cream results
ELASTIderm ® Eye Cream Baseline 9 weeks 28 Note: Photos have not been retouched. Results may vary.
Slide 31: CLENZIderm System results
CLENZIderm ® System Baseline 9 weeks 29 Note: Photos have not been retouched. Results may vary.
Slide 32: OBAGI Nu-Cil results
OBAGI Nu - Cil TM Baseline 9 weeks 30 Note: Photos have not been retouched. Results may vary.
Slide 33: Physician-led insights from long-term partnerships
We start with physician - led insights driven by our penetration and long - term partnerships with physicians across a broad spectrum of specialties 31 1 As of December 2021. 6,000+ MEDICAL PROVIDERS WITH EXTENSIVE QUARTERLY CONNECTS 1 Significant penetration of medical providers in the US Steering
Slide 34: Three vectors of innovation
Benefit innovation Performance strength Performance speed Indication Sagging, radiance We formulate leading products through three vectors of innovation 32 Characterization innovation Disease state Skin conditions Population Urbanites, country of origin Claims Magnitude, incidence, speed, QoL Instru
Slide 35: Extensive product testing process
Supported by an extensive product testing process Integrity Safety Efficacy Stability (accelerated, long term, Asia, F/T) Microbiological protection (preserving testing, micro testing) Allergy testing Others (comedo, phototox, imitation) Clinicals Bioinstru - mentation Biological assays (gene arrays
Slide 36: 80+ patents creating a strategic moat
We have a broad and comprehensive set of 80+ patents creating a strategic moat and high barriers to entry Material OBAGI patent families Expiration Anti - aging treatment using Copper and Zinc compositions June 2026 Chemical compositions and methods of making them Jan 2026 – Feb 2027 Methods for lig
Slide 37: Fitzpatrick skin spectrum and SKINCLUSION initiative
SKIN TYPE I SKIN TYLE VI SKIN TYPE V SKIN TYPE IV SKIN TYPE III SKIN TYPE II Fitzpatrick skin spectrum We are the first medical skincare brand to design clinical research protocols across all 6 skin types via our SKINCLUSION ® initiative 35
Slide 38: First medical skincare brand to publish research across all 6 skin types
We are the first medical skincare brand to publish clinical research protocols across all 6 skin types via our SKINCLUSION ® initiative 36 Dr. Jeanine Downie MD, board certified cosmetic dermatologist and author of ‘Beautiful Skin of Color’ Source: “Treating Melasma With a 4% Hydroquinone Skin Care
Slide 39: Physician video transcript on skin of color research
(Audio transcript of video to be played at investor day) [Jeanine Downie, MD: “Obagi, where they're focusing on research and diversity and equity with people with skin of color, and so those are fantastic initiatives.”]
Slide 40: Case study: Nu-Derm for melasma
1 2 3 4 5 0 4 8 16 20 24 12 Week Moderate Moderate Mild Mild Minimal / trace None Skin condition treated: Melasma 1 37 We test and demonstrate our transformative research - backed results in studies and visuals Case study: Nu - Derm ® Source: “Treating Melasma With a 4% Hydroquinone Skin Care System
Slide 41: Case study: ELASTIderm Facial Serum across all skin tones
38 And we do it across all skin tones Case study: ELASTIderm ® Facial Serum Source: “Clinical Evaluation of a Facial Serum with a Novel Technology Featuring a Bi - Mineral Complex Powered by MicroFluidics on Aged Skin in Fitzpatrick Skin Types I - V”; Authors: Sylvia Barkovic, B.A.; Laurence Dryer,
Slide 42: Our products outperform competitors across key attributes
20 40 Hydration 23.1 23.1 36.5 32.7 46.2 53.8 Week 8 Week 12 Week 16 Our products outperform competitors across key attributes 39 *P<0.05 vs comparators. 15 min 30 min 1 hr 2 hr 3 hr 8 hr Hydrate Luxe ® vs competitors Instrumental assessment * Score on Grading Scale OBAGI Nu - Derm ® System vs compe
Slide 43: Physician-first philosophy drives long-term relationships
Prem Tripathi, MD 40 Our physician - first philosophy drives long - term productive relationships and loyalty Marketing support Nina Desai, DO Price & value - added services “OBAGI understands the financial issues that physicians face when running a practice. Given the quality of the products they m
Slide 44: Physician video transcript on support and training
(Audio transcript of video to be played at investor day) [Prem Tripathi, MD: “The support from Obagi has been really great. We have our sales reps actually do trainings for all of our staff, especially when the staff is new, and that's really pivotal to get everybody on board and understanding the s
Slide 45: OBAGI growth strategy: five pillars
Grow our core 1 Expand physician penetration 2 Expand breadth & depth of portfolio 3 Expand internationally Powered by the Waldencast Platform + Continue the strong growth of our OBAGI Medical ® business and pursue opportunities that further enhance our brand Add more 4 Capture opportunities in the
Slide 46: Expand physician penetration
What we have The leading penetration of U.S. physicians ~40% U.S. physician penetration 1 + Wider range of education and services through digitalization There is a further sizeable potential growth opportunity in our core U.S. business by increasing our physician base What we plan to do Expand our w
Slide 47: Expand breadth and depth of portfolio: Vitamin C
What we plan to do Drive awareness and availability + Maximize penetration of practices from 42% coverage to the majority of the OBAGI accounts + Drive awareness of superior performance directly to consumers for a virtuous pull model And a further opportunity to grow our consumer base through increa
Slide 48: OBAGI Nu-Cil: next best-selling franchise
What we have A tech breakthrough with massive appeal Best Derm - Recommended Serum April 2022 44 And a further opportunity to grow our consumer base through increased breadth of portfolio and building our key SKUs and franchises OBAGI Nu - Cil TM What we plan to do A fast track to the next best - se
Slide 49: Expand OBAGI Medical business model internationally
• $3B market 1 • High consumer focus on beauty and aesthetics • High brand awareness amongst physicians • Low level of competition • In the largest dermatologic conference in the US, the second highest international attendees came from Brazil (10.5%) 45 Expand our OBAGI Medical ® business model inte
Slide 50: OBAGI growth strategy: five pillars
Grow our core 1 Expand physician penetration 2 Expand breadth & depth of portfolio 3 Expand internationally Powered by the Waldencast Platform + Add more 4 Capture opportunities in the device market 5 Build an accessible consumer proposition Continue the strong growth of our OBAGI Medical ® business
Slide 51: Introducing an additional OBAGI tool for physicians
The next frontier: introducing an additional OBAGI tool for the physicians to deliver transformative solutions for increased patient satisfaction 47
Slide 52: SKINTRINSIQ system video transcript
(Audio transcript of video to be played at investor day) [A new level of medical skincare is here, introducing the SKINTRINSIQ TM system, the first device designed by the skincare experts at Obagi. The surface layer of your skin is a protected barrier against debris, germs and sun damage, but it als
Slide 53: Device-first step to complement and grow product line
Maximize patient throughput while maintaining long - lasting results 1 Grow base of clinics + retail sale of products Grow number of patients Build loyalty and frequency of visit 80% of patients are either likely or extremely likely to recommend OBAGI SKINTRINSIQ TM treatment to a friend or colleagu
Slide 54: Making products more digitally accessible
49 And for consumers, we want to make our products more digitally - accessible with our partners and own DTC platform + Stronger functionalities What we plan to do Expand our winning business model further + Capitalize on offline synergies + Acquire and build loyalty with new consumers What we have
Slide 55: Amplify awareness and endorsements
1. OBAGI Nu - Derm® Toner +40% revenue (over previous period) 1 2. SOMD IDR +35% revenue (over previous period) 1 What we have Cult celebrity + Amplify 3 rd party credentialling directly to consumers 50 And make consumers more aware of the potency of our formulation by stepping up our consumer messa
Slide 56: Build a new consumer proposition
Build a new consumer proposition to answer the needs of consumers currently not within our audience and channels 2 Clinical category is booming in the US and now represent 34% of US skin care sales 1 Clinical testing is one of the top 2 most important purchase drivers in skin care 3 Growth fuelled b
Slide 57: OBAGI growth strategy: five pillars
Grow our core 1 Expand physician penetration 2 Expand breadth & depth of portfolio 3 Expand internationally Powered by the Waldencast Platform + Continue the strong growth of our OBAGI Medical ® business and pursue opportunities that further enhance our brand 52 Add more 4 Capture opportunities in t
Slide 58: OBAGI Nu-Derm important safety information
53 OBAGI Nu - Derm ® important safety information Important safety information for clear, blender and sunfader (contains 4% hydroquinone) CONTRAINDICATIONS: People with prior history of sensitivity or allergic reaction to this product or any of its ingredients should not use it. The safety of topica
Slide 59: Milk Makeup
Milk MAKEUP TIM COOLICAN CEO.
Slide 60: Our thesis: executive summary
OUR THESIS EXECUTIVE SUMMARY Distinctive Brand Milk Innovative Engaged Products Community Experienced Team Proven track record Domain expertise Belief in brand 55
Slide 61: Our ambition: build the top global beauty brand for the next generation
OUR AMBITION: BUILD THE TOP GLOBAL BEAUTY BRAND FOR THE NEXT GENERATION OUR DNA IS BUILT AROUND THEIR VALUES: SELF-EXPRESSION + INCLUSION + COMMUNITY -+ CODD)
Slide 62: Our community is our superpower
OUR COMMUNITY IS OUR SUPERPOWER OUR DNA IS BUILT AROUND THEIR VALUES: SELF-EXPRESSION + INCLUSION + COMMUNITY = =e eh fii aah -+- CODD)
Slide 63: Our secret sauce: clean, cool beauty that works
_| + i= OUR SECRET SAUCE: CLEAN, COOL BEAUTY THAT WORKS UNIQUE + HIGH PERFORMANCE + VEGAN + CLEAN + CRUELTY-FREE
Slide 64: Our values are aligned with the next generation
+ i Lo OUR VALUES ARE ALIGNED WITH THE NEXT GENERATION WE BELIEVE IN DOING THE RIGHT THING FOR OUR COMMUNITY AND FOR THE PLANET CLEAN FORMULAS IMPROVING OUR FOOTPRINT RE-INVESTING IN OUR COMMUNITY E : Here Are Our si 5 Commitments axel to Ourselves and Our | Community. wene cern SERA +. COCEEEEEEEEE
Slide 65: An experienced leadership team
AN EXPERIENCED LEADERSHIP TEAM TO DELIVER THE PLAN Tim Coolican Steve Nguyen Mazdack Rassi Dianna Ruth CEO CFO Co-Founder & Chief Brand Officer Co-Founder and COO YEARS IN aoe Tee 25+ 16+ YEARS AT MILK MAKEUP 2+ 4+ tas tha Milk..... as Milk...... LOREAL as Milk...... EXPERIENCE . ie 2 Milk...... . H
Slide 66: An experienced leadership team
_| AN EXPERIENCED LEADERSHIP TEAM TO DELIVER THE PLAN Nilofer Vahora Tyler Smart CHIEF MARKETING OFFICER: CHIEF CREATIVE OFFICER Lou Gilgenkrantz HEAD OF INTERNATIONAL YEARS IN + e 25+ YEARS AT PLANNED START MILK MAKEUP MAY 2022 3+ Milk...... SUISEIDO Milk...... EXPERIENCE * " REBECCA kate spade N45
Slide 67: Our roadmap is clear
~ OUR ROADMAP IS CLEAR KEY GROWTH LEVERS 4. GROW COMMUNITY INNOVATE INTERNATIONALIZE LEVERAGE WALDENCAST PLATFORM ~awaldencast
Slide 68: Slide 68
Slide 69: Anthem video transcript
[AUDIO TRANSCRIPT OF VIDEO TO BE PLAYED AT ANALYST DAY] A nt he m v i de o • Clean cool beauty that works • #2 clean makeup brand at Sephora USA • #Milkmakeup 137M video views • ~2M Instagram followers • Lip + cheek top 3 blush at Sephora USA • Lip + cheek 2021 +112.5% globally • Product imagery and
Slide 70: Milk Makeup key figures
J MILK MAKEUP KEY FIGURES $47M 2021 Net revenue! 24% 2018-2021 Net revenue CAGR" #2 Clean Brand at Sephora USA? Best-Seller Face Primer at Sephora USA? Best-Seller Mascara at Sephora USA? 2.7M Followers in social media* ‘Ni Financials for 2018 and 202%? Sephora management;® Sephora website; ‘Include
Slide 71: Color cosmetics: a large, dynamic market
_| + i= COLOR COSMETICS: A LARGE, DYNAMIC MARKET MILK MAKEUP HAS SIGNIFICANT HEADROOM AND IS WELL POSITIONED TO WIN MAKEUP IS BACK & BOOMING +23% Y/Y growth in 2021 for U.S. make-up sales" NATURAL MAKEUP: A KEY CATEGORY DRIVER +15% 2021-2026 CAGR for global natural cosmetics market size* 2021 $47M 2
Slide 72: A hybrid beauty brand
A HYBRID BEAUTY BRAND EXPANSION OPPORTUNITIES IN EXISTING AND NEW CATEGORIES SKINCARE 15% of revenue
Slide 73: մմմմմ մմմմմ մմմմմ մմմմմ մմմմմ
մմմմմ մմմմմ մմմմմ մմմմմ մմմմմ
Slide 74: HydroGrip: the hero blueprint for the future
| a HYDROGRIP: THE “HERO” BLUEPRINT FOR THE FUTURE MULTI-SKU HERO FRANCHISE ~$29M IN SALES SINCE LAUNCH" ~69% 2020-2021 GROWTH? COO) i
Slide 75: HydroGrip: a social media phenomenon
_| + =i HYDROGRIP: A SOCIAL MEDIA PHENOMENON COMMUNITY ADVOCACY IS AT THE HEART OF OUR SUCCESS 7.9M VIEWS 4,.8M VIEWS 894K VIEWS. -+- CELLET PEEEEEH)
Slide 76: HydroGrip video transcript
[AUDIO TRANSCRIPT OF VIDEO TO BE PLAYED AT ANALYST DAY] H y d r o G r i p E x a m p l e 1 : • [TikTok video of a woman applying multiple different Milk Makeup products with the song Woman - Doja Cat playing in the background] • TikTok handle @ommycombss H y d r o G r i p E x a m p l e 2 : • “So I’m
Slide 77: Innovation that works: a core strength and key opportunity
J + i Lo INNOVATION THAT WORKS: A CORE STRENGTH + KEY OPPORTUNITY POST-COVID, INNOVATION WEIGHT WILL ACCELERATE AS CONSUMERS RETURN TO DISCOVERY SHOPPING 2016 2017 2018 2019 2020 2021 2022 e@ @ a“ ?? | © ff} + CHEEK BLUR STICK KUSH MASCARA HYDRO PRIMER Seq HYDROSPRAY = | 7 RISE q ) fe i =4=|- MASCAR
Slide 78: Key accelerator: bigger A launches post-COVID
J KEY ACCELERATOR: BIGGER “A” LAUNCHES POST-COVID AS CONSUMERS RETURN TO DISCOVERY + PLAY WITH MAKEUP SUMMER 2022 FALL 2022 ) ® PRODUCT ® : : : o OBJECTIVE TO LAUNCH “A”, “B” AND “C” PRODUCTS IN EACH SEASON Re Qannnuueeeeeeauaeeeeeaueeeencuneeeeennnaenee® Introduce best sellers kits to drive trial C
Slide 79: Slide 79
Slide 80: Rise Mascara video transcript
[AUDIO TRANSCRIPT OF VIDEO TO BE PLAYED AT ANALYST DAY] R i s e M a s c a r a : • [Dramatic – Lift – Maximum length – Weightless – Volume – Next level lashes – Rise Mascara • Clean. Vegan. Cruelty - free. • Shop now at MilkMakeup.com]
Slide 81: 2022 Spring A launch: Rise Mascara
2022 SPRING ”A” LAUNCH: RISE MASCARA AN AWARD WINNING, HIGH IMPACT LAUNCH eS BEST CLEAN MASCARA wii CODD)
Slide 82: Spring launch video transcript
[AUDIO TRANSCRIPT OF VIDEO TO BE PLAYED AT ANALYST DAY] S p r i n g La u nch : R i s e Ma s c a r a E x a m p l e 1 : • Video starts by showing big bright billboards in Times Square, video cuts to a red billboard with the Milk Makeup logo followed by Rise Mascara written in big bold font • Billboard
Slide 83: Rise Mascara PR impressions
_| + i= 2022 SPRING ”A” LAUNCH: RISE MASCARA OVER 350 MILLION PR IMPRESSIONS YTD ELLE 20 Notable Beauty Products That Launched in February =) ‘Sans mascara Rise ‘Avec mascara Rise = TRENDHUNTER is _— billie ‘The February 2022 Beauty Lifting Vegan Mascaras Les gmelieurs masearas poor tous ls Launches
Slide 84: Our roadmap is clear
OUR ROADMAP IS CLEAR KEY GROWTH LEVERS 1. 2. 3. 4, GROW COMMUNITY INNOVATE INTERNATIONALIZE LEVERAGE WALDENCAST PLATFORM avaldencast | COO)
Slide 85: Growth opportunity: expand our community
GROWTH OPPORTUNITY: EXPAND OUR COMMUNITY WITH GEN-Z AND BEYOND MILK AWARENESS BY AGE" STRATEGY Grow awareness across all consumer segments 1. EXPRESS BRAND VALUES 2. EXPAND PRODUCT OFFERING GEN-Z MILLENNIAL GEN-X BOOMER 3. BUILD NEW TOUCHPOINTS 100 Index? 84 Index 68 Index 60 Index aN ‘and donot wor
Slide 86: Growth opportunity: expand and monetize community
+ i GROWTH OPPORTUNITY: EXPAND + MONETIZE COMMUNITY LARGE, ENGAGED, ELUSIVE COMMUNITY Existing Community: OTikTok ©iwtoyom EPVoutuhe Cwitter 568.2k followers 2 million followers 88.4k subscribers 62.5k followers o e facebook @Pinterest — Linked{f) 101k followers 964k monthly views 70.8k followers Fu
Slide 87: Our brand values align with the next generation
| a OUR BRAND VALUES ALIGN WITH THE NEXT GENERATION WE BELIEVE THESE WILL BECOME “WORLD VALUES” AND BE A POWERFUL LEVER FOR GROWTH JR VALUES ALIGN WITH THE NEXT GENERATION es 5 \ . ’ Natural, non-toxic % i I~ , RAR, ingredients are the biggest Wy, GOOD FOR ’ af Fifa oe D consideration / YOU { ~* as
Slide 88: Milk Makeup has credibility on the future drivers
= + MILK MAKEUP HAS CREDIBILITY ON THE FUTURE DRIVERS WE BELIEVE THESE WILL BECOME “WORLD VALUES” AND BE A POWERFUL LEVER FOR GROWTH Everything You Need To Recreate ‘Milk Makeup Hydro Grip Primer These Beauty Products Will Be the Next Big Thing, According to TikTok ‘As of late, TikTok has been one o
Slide 89: Milk Makeup: a favorite with key celebs
+ i MILK MAKEUP: A FAVORITE WITH KEY CELEBS Billie Eilish's Grammys Glam Included the i ara Hack = seventeen « aovseaite facies oon Hailey Bieber Swears by this $20 Brow Gel wii CELLET PEEEEEH)
Slide 90: Growth opportunity: innovate into new products and categories
IN EXISTING AND NEW CATEGORIES Active + Whitespace Milk Categories’ GROWTH OPPORTUNITY: INNOVATE INTO NEW PRODUCTS / C. through innovation ATEGORIES Milk Makeup has the opportunity to grow and launches i | Established Emerging [J Whitespace” Mascara Primer? Blusher & Bronzer Skin Tints $2.3B $0.3B $
Slide 91: Excitement and impact in new markets
| + i EXCITEMENT AND IMPACT IN NEW MARKETS UK LAUNCH DUBAI LAUNCH SPAIN LAUNCH FRANCE LAUNCH 7 “}. ooo
Slide 92: New markets video transcript
[AUDIO TRANSCRIPT OF VIDEO TO BE PLAYED AT ANALYST DAY] E x c i t emen t an d i mpac t i n n e w m ar k et s v i d e o 1 • Fast forwarded video which shows a long line of people which wraps around the block waiting to get into a store which has multiple banners and ads of Milk Makeup on the windows
Slide 93: Growth opportunity: expansion within Sephora
J GROWTH OPPORTUNITY: EXPANSION WITHIN SEPHORA IN EXISTING AND NEW MARKETS Strong position in Sephora today with room to grow Sephora Door Penetration’ <> J Total sephora doors Hi Mik sephora doors i L 1,454 Ms a = = | =- = en aeN | | e721 a2 ¥ Canada Europe Middle East China / SE Asia AUS / NZ Vast
Slide 94: Growth opportunity: expansion across geographies
_| + i= GROWTH OPPORTUNITY: EXPANSION ACROSS GEOGRAPHIES IN EXISTING AND NEW MARKETS BBE current milk Presence in Brick & Mortar [BB expansion opportunity -2000f |,“ 6,200+ ~1,300 of 2,900+ milkmakeup.com only ships to the US. today Tremendous whitespace for untapped department store + eCommerce dis
Slide 95: Growth opportunity: D2C
GROWTH OPPORTUNITY: D2C IN EXISTING AND NEW MARKETS Our goal STRATEGY 1. BEST IN CLASS SITE Current proportion of total net salest 2. BEST IN CLASS PARTNERS 3. BEST IN CLASS TEAM & 4. LEVERAGE NEW PLATFORMS HB sore % other ‘Source: Company information ‘Referee FY202% net sales
Slide 96: 44.6% 54.0% 40.7% 53.7% 62.7% 58.6%
44.6% 54.0% 40.7% 53.7% 62.7% 58.6%
Slide 97: Our roadmap is clear
OUR ROADMAP IS CLEAR KEY GROWTH LEVERS 1. 2. 3. 4, GROW COMMUNITY INNOVATE INTERNATIONALIZE LEVERAGE WALDENCAST PLATFORM avaldencast | COO)
Slide 98: Financial Overview
Financial Overview
Slide 99: Financial profile
Adjusted EBITDA ($mm) $44 Net sales ($mm) Gross profit ($mm) financial profile
Slide 100: Financial profile
$25 $51 $40 $47 $66 Gross profit ($mm) $63 $39 $27 $23 $16 $11 financial profile Net sales ($mm) $101
Slide 101: Combined financial profile
$80 $131 $87 $162 $69 $104 $71 $127 $11 $27 $16 $23 $231 $189 $63 $39 $150 $168 $119 $181 $130 $226 $314 $94 $130 $90 $168 $190 $213 $25 $51 $40 $47 $66 $256 $101 $5 $17 $39 $50 $18 $24 $7 $42 ($13) ($7) ($11) ($4) ($3) $5 $75 $17 ($5) ($5) 2018A 2019A 2020A 2021A 2022E¹ 2023E¹ Adjusted EBITDA ($mm)
Slide 102: Transaction Overview
* a Transaction Overview
Slide 103: Pro forma capital structure at $10 per share
Note: The analysis and capital structure shown is at $10 per share and does not reflect the impact from potential warrant and op tion dilution, or trust redemptions; 1 Includes 16.0mm FPA shares and 8.6mm shares of founder promote; 2 Members of our sponsors have entered into forward purchase agreeme
Slide 104: Peer benchmarking
20% 24% 40% 21% 10% 10% 8% 31% 25% 19% 21% 32% PEER GROUP AVERAGE 19% 20% 24% 24% 20% 63% 15% 26% 29% 22% 28% 24% 24% 25% 20% 60% 20% 26% 30% 23% 29% 40% 12% 12% 17% 23% 58% 20% 26% 26% 24% 2021E - 2023E Revenue CAGR 2021E - 2023E Adj. EBITDA CAGR 1 BEAUTY HIGH - GROWTH CONSUMER 2022E Adj. EBITDA Ma
Slide 105: Trading metrics for relevant peers
4.6x 3.8x 23.7x 15.8x 4.8x 5.2x 5.1x 3.5x 12.6x 5.5x 6.3x 5.8x 5.1x PEER GROUP AVERAGE 6.1x 3.9x 4.9x 4.7x 3.3x 10.0x 4.4x 5.5x 4.7x 3.9x 5.2x 24.7x 1 21.8x 20.9x 17.8x 19.9x 36.5x 24.7x 19.9x 23.1x 23.1x 16.5x 1 20.2x 19.0x 16.1x 16.6x 22.1x 21.0x 16.0x 17.2x 18.5x 2022E FV/ Revenue BEAUTY HIGH - G
Slide 106: Appendix
Appendix
Slide 107: Adjusted EBITDA reconciliation
$mm 2020 2019 Net income / (Loss) (12.9) (11.0) Interest 0.3 1.4 Taxes - - Depreciation & Amortization 1.7 2.5 Adjusted EBITDA Adjusted EBITDA reconciliation $mm Consoli - dated Carve - out Post carve - out Net income / (Loss) (9.2) (2.3) (6.8) Interest 6.3 - 6.3 Taxes (5.1) 0.0 (5.1) Depreciation &
Slide 108: Transaction detail
transaction detail Milk enterprise value $382 Net debt (cash) 2 Equity value $390 Less: promote and fees (50) Equity value to Milk owners $340 OBAGI enterprise value $858 Net debt 1 Equity value $752 Less: promote and fees (97) Equity value to OBAGI owners $655 ($mm) ($mm)