Skinhealth Systems Inc. · NASDAQ:SKIN
Skinhealth Systems — Beauty Health — Investor Presentation (January 2022)
20 slides from Skinhealth Systems's investor presentation, Jan 10, 2022
Slide 1: Investor Presentation January 2022
INVESTOR PRESENTATION JANUARY 2022 ®& BEAUTYHEALTH’
Slide 2: Disclaimer
DISCLAIMER cial performance ducts, expansion This Presentation contains certain forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or final of The Beauty Health Company (the "Company’y, the calculation of certain key financial
Slide 3: About the Presenter
ABOUT THE PRESENTER Joined BeautyHealth in September 2020 Former COO and CFO of The VOID, a virtual reality entertainment company Served as CFO for a number of companies such as SharkNinja, Gymboree, and bebe Deloitte M&A and Financial Advisory Services ve! bebe _ Shark|NINA LIYUAN WOO Chief Financi
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, aestheticians & provider
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Net Sales growth Average cost per treatment to the consumer” Cash on hand” Global Delivery Systems installed” Gross margin to provider per treatment” Direct markets served” Delivery Systems sold® Average Delivery System payback period” Participants in the BeautyHealth community
Slide 6: Beauty Health Skin Correction and Skin Care
BEAUTY HEALTH SKIN CORRECTION SKIN CARE CATEGORY Medical delivery Daily, overthecounter C R EATOR . technology-focused skin care ers, Ultrasound, Fillers, Toxins Serums, Creams, Lotions, Supplements BEAUTY HEALTH << APPROACHABLE & EFFECTIVE hydrafacial Highly effective, non-invasive and approachable
Slide 7: HydraFacial treatment steps and boosters
3 STEPS. 30 MINUTES. THE BEST SKIN OF YOUR LIFE! y. Uncover a new layer of skin with gentle $ h| exfoliation and relaxing resurfacing, 200 Mont y = =F using signature solutions Average Recommended Z cost to consumer frequency BASE TIP UPGRADES Personalized Treatment Enhancements w ‘ = ‘al Remove deb
Slide 8: Participating in High-Growth Categories
PARTICIPATING IN HIGH-GROWTH CATEGORIES WITHIN PERSONAL CARE SPA SERVICES GROWING ACROSS ALL TYPES OF TREATMENTS, PARTICULARLY IN FACIALS 11.1% expected growth in U.S. medical spa services (2017-2025) bit 6.4% . fe) expected growth in U.S. spa facilities (2017-2022) wl y \ 14.0% expected growth in U
Slide 9: Consumers Inclined to Spend on Beauty & Health
CONSUMERS INCLINED TO SPEND ON BEAUTY & HEALTH Aging millennials are spending more on skincare, preferring Tol _ 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 NCOME
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 2021YTD Consumables! Score among consumer (Higher than Botox} 2021YTD Delivery Systems! Score among aestheticians PROVIDERS CONSUMERS “Worth It" rating on YTD 9/30/21 Net Sales Growth PARTNERS RealSelf v. YID 9/30/19 2021YTD Net Sales
Slide 12: The Master Plan
THE MASTER PLAN 1. Sell a lot of products, use that money to... 2. Invest in our skineate providers, use that relationship to... 3. Find the consumers and build a direct relationship. 4. leverage technology to connect them where they live, and 5. Build the ultimate flywheel of influence!
Slide 13: HydraFacial NPS Ranks Highest Across Branded Aesthetics and MedTech Peers
HYDRAFACIAL NPS RANKS HIGHEST ACROSS BRANDED AESTHETICS AND MEDTECH PEERS NPS 40 25 22: 20 19 17 17 14 7 2 Botox CoolSculpt Lancéme Juvederm Clear+ Estée — Diamon Clinique Philosophy Origins
Slide 14: Tomorrow
TOMORROW Delivery Systems account for ’ Lf of Net Sales! ——" + The patented HydraFacial systems generate~ 3.2M treatments performed annually { =o 7 me + Onetime placement generates treatments (revenue) for 3-7 yrs Next Gen System connects consumer via app and home handheld device to professional sys
Slide 15: Our Presence Around the Globe
OUR PRESENCE AROUND THE GLOBE 87+ LOVED AROUND THE VWWORLD
Slide 16: Powerful Flywheel Designed to Drive Competitive Positioning
POVVERFUL FLYWHEEL DESIGNED TO DRIVE COMPETITIVE POSITIONING igh consumer anc nced offering with nalization n year sed by our & BEAUTYHEALTH ial from their provider) han from a traditional facia FAVORABLE SPA/CLUNIC ECONOMICS, Aestheticians make ~20% m xable spa/clinic economics to increase HydraFac
Slide 17: Led by a Visionary and Experienced Executive Team
LED BY A VISIONARY AND EXPERIENCED EXECUTIVE TEAM YEARS OF EXPERIENCE LIYUAN WOO, ancial BRENT SAUNDERS Interim CEO & Executive Cc Chairman Experience: 24 Years B GYMBOREE bebe Shark|NINJA Deloitte. c im 1 Y INDRA PAMAMULL STEPHAN BECKER President of APAC President of E Experience: 25 Years Experien
Slide 18: 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 aes
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS CATEGORY-CREATING PRODUCT CUSTOMER LOYALTY COMMANDING PLATFORM MULTIDIMENSIONAL GROWTH OPPORTUNITIES COMPELLING ECONOMIC PROFILE PROPRIETARY TECHNOLOGY EXPERIENCED MANAGEMENT AND BOARD
Slide 20: Adjusted Gross Profit Reconciliation, Nine Months Ended September 30, 2021
For the Nine Months Ended September 30, 2021 ($000s) Net Sales $182,197 Less: Cost of Sales (57,131) Gross Profit (GAAP) $125,066 Gross Margin (GAAP) 69% Adjusted to exclude the following: Stock-Based Compensation Expense 222 Depreciation and Amortization Expense 7,747 Adjusted Gross Profit $133,035