Skinhealth Systems Inc. · NASDAQ:SKIN
Skinhealth Systems — Beauty Health — Investor Presentation (June 2021)
25 slides from Skinhealth Systems's investor presentation, Jun 10, 2021
Slide 1: Investor Presentation June 2021
INVESTOR PRESENTATION JUNE 2021 ® BEAUTYHEALTH’
Slide 2: Disclaimer
DISCLAIMER This Presentation contains certain forwardlooking statements. These statements may be made directly in this Presentation. Some of the forwardlooking statements can be identified by the use of forwarcooking words. Statements that c I in nature, including the words “anticipate suggests,” “p
Slide 3: BeautyHealth Management Presenters
BEAUTYHEALTH MANAGEMENT PRESENTERS * CEO of HydraFacial since December 2016 * Founder of Orange Twist * Head of Surgical for Bausch + Lomb ; ORANGETWIST * Chief Operating Officer at Solta Medical * Johnson & Johnson/Chiron Gam BRO. CUNT CARNELI * Joined HydraFacial in September 2020 * Prior to joini
Slide 4: We Are BeautyHealth
WE ARE WY BEAUTYHEALTH Deeply Connecting You to the BeautyHealth Community Where You Live, Work & Play CONSUMER EDUCATOR "AND' COMPANY We take the consumer's view, providing them with experiences tailored to their needs We provide education and support fo our core customers, estheticians & providers
Slide 5: Massive Global Opportunity
MASSIVE GLOBAL OPPORTUNITY 2023 Beauty Health Estimated TAM ($Billions) saad 12 240 200 100 Asia EU ROW Total
Slide 6: Beauty Health Category Creator
BEAUTY HEALTH CATEGORY CREATOR RESULTS SIMILAR TO A PROFESSIONAL MEDICAL TREATMENT WITH THE EXPERIENCE OF A CONSUMER BRAND SKIN CORRECTION SKIN CARE Medical delivery Daily, over-the-counter technology-focused skin care lasers, Ultrasound, Fillers, Toxins Serums, Creams, Lotions, Supplements ad hydra
Slide 7: Steps. Minutes. The Best Skin of Your Life
3 STEPS. 30 MINUTES. THE BEST SKIN OF YOUR LIFE! - Uncover a new layer of skin with gentle $ exfoliation and relaxing resurfacing, 2 OO Month ly = fF ssing signature solutions Average Recommended cost frequency &_. o“a BASE TIP UPGRADES Personalized Treatment Enhancements r% ¢ . + ‘aad Remove debris
Slide 8: Global Skincare & Haircare Sales ($B)
GLOBAL SKINCARE & HAIRCARE SALES ($B) $24 PARTICIPATING IN $201 206 $212 $218 2 22 $ 243 $25 HIGH-GROWTH $124 $129 $135 $140 $140 $149 $ $162 $169 CATEGORIES ee 7 a a WITH | N m Skincare m Hair Care PERSONAL CARE $235 155 SPA SERVICES GROWING ACROSS ALL TYPES OF TREATMENTS, PARTICULARLY IN FACIALS
Slide 9: Consumers Inclined to Spend on Beauty & Health
CONSUMERS INCLINED TO SPEND ON BEAUTY & HEALTH Aging millennials are spending more on skincare, preferring aX x * w) * _ experiences over products aa EXPERIENTIAL Holistic, inside-out beauty Increased emphasis on rituals GROWTH IN DISPOSABLE + AS U.S. economy grows, consumers have more disposable NC
Slide 10: Favorable Market Shifts Benefiting the HydraFacial Business Model
FAVORABLE MARKET SHIFTS BENEFITING THE HYDRAFACIAL BUSINESS MODEL of HydraFacial customers use other treatments in a year SKIN HEALTH nsumers are s hable and effective ions that bridge the NON gap between OTC and invasive INVASIVE options Today’ HYDRAFACIAL IS AN AND COMPANY NOT AN OR COMPANY INVASI
Slide 11: The Power of the Nation
THE POWER OF THE NATION THE HYDRAFACIAL NATION 2019 Consumables!'! Score among consumer (Higher than Botox} 2019 Delivery Systems!’ Score among estheticians PROVIDERS CONSUMERS “Worth It" rating on PARTNERS RealSelf 2019 YoY Sales growth 2019 YoY Adjusted EBITDA growth Sales 2021E Adjusted EBITDA 20
Slide 12: The Master Plan
THE MASTER PLAN 1. Sell a lot of products, use that money tose. 2. Invest in our Skineare providers, use that relationship to... 3. Find the consumers and build a direct relationship. 4, Leverage technology to connect them » whenever & . 5. Build the ultimate flywheel of influence!
Slide 13: Third party research on NPS and brand usage
Source: Third party research July 2019; reflects pre-COVID conditions. Note: NPS = Net Promoter Score as of 2019; Other brands listed are top 5 treatment and top 5 skincare brands used by HydraFacial users; N = Number of responses.
Slide 14: Revenue mix based on 2019A
• • 1Based on 2019A. Excludes Shipping / Other Revenue and Healthy Scalp. • • •
Slide 15: Leading Presence Around the Globe
LEADING PRESENCE AROUND THE GLOBE °) No) Ve O80 ge a 2 LOVED AROUND THE VVORLD
Slide 16: Powerful Flywheel Designed to Drive Competitive Positioning
POVVERFUL FLYWHEEL DESIGNED TO DRIVE COMPETITIVE POSITIONING % BEAUTYHEALTH FAVORABLE SPA/CLUNIC ECONOMICS, Inve: and R&D effor ents to create /create innova
Slide 17: Led by an Experienced Management Team
LED BY A I i VISION AAANID LE. re] CIN CARNELL ie NW ee JWALA KARNIK, M D. Dee RODRIGUEZ, DAN WATSON EXPERIENCED sc babe a ne : wes ve Officer n EVP, Globo! Stotegy & Fasiness! en EVP, Sales U.S MANAGEMENT —_— tsp 2 Yo ee — Fxpnce 6 Yor TEAM B sonra GYMBOREE SUN EA GohmenGohion stryker bebe (Vi ORAN
Slide 18: Sales and Adjusted EBITDA 2016A-2021E
18 $48 $66 $112 $167 $119 '16A '17A '18A '19A '20A '21E $16 $17 $26 $37 $8 $25 '16A '17A '18A '19A '20A '21E 33% 26% 23% 22% 7% 13% $200 Note: Adjusted EBITDA is a non-GAAP financial measure. For a description of Adjusted EBITDA and a reconciliation to net loss, please see the Appendix. Financial in
Slide 19: Relentlessly Innovate as a Category Creator
RELENTLESSLY INNOVATE AS A CATEGORY CREATOR Category Ownership - Skin & Scalp Health Launch system 2.0 with personalized services Value added innovation across all touchpoints — serums, devices, and experiences Connector platform - Build robust and scalable programs that solidify relationship with a
Slide 20: Consumer Engagement Powerhouse
CONSUMER ENGAGEMENT Ae POWERHOUSE an Media Impressions Anticipated 2021 Significant RO! on Consumer Activations Provider Searches Anticipated for 2021 Instagram Engagement Rate ae REFINERY29 POPSUGAR. BAZAAR
Slide 21: Provider & Aesthetician Education
PROVIDER & AESTHETICIAN EDUCATION CONNECT hydrafacial Goal to be the world’s largest educator and deployer of aesthetic professionals. gPSIAl ce 'O* § 3 CERTIFIED CERTIFIED CERTIFIED Sa Sa “This is everything | wish | would have learned in aesthetics school." THE HYDRAFACIAL EXPERIENCE Podcasts Expe
Slide 22: International Scaling
INTERNATIONAL SCALING Pictured: London, Dubai, &
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS CATEGORY CREATING PRODUCT + Innovative product extension into |OT with data connection personalization and clean beauty in skin and scalp health High NPS scores in the industry CUSTOMER LOYALTY + — leading engagement rates on social media Favorable press coverage & attendance a
Slide 24: Adjusted EBITDA reconciliation to net loss
$ (29.2) $ (1.6) $ (0.3) $ 8.0 $ (14.0) 14.5 13.9 11.5 10.0 3.2 21.3 17.1 10.1 6.6 1.0 (9.3) (1.3) 0.3 (11.4) (2.8) 1.5 1.8 3.2 1.2 14.2 - 4.0 - - - 3.1 - - - - 4.2 1.7 0.4 - 13.4 - 1.4 - - - 1.6 (0.3) 1.0 3.0 0.7 $ 7.7 $ 36.7 $ 26.2 $ 17.4 $ 15.6 6.5 % 22.0 % 23.3 % 26.4 % 32.6 % (4) Such amounts r
Slide 25: We Are BeautyHealth
WE ARE WY BEAUTYHEALTH