e.l.f. Beauty, Inc. · NYSE:ELF
e.l.f. Beauty — Merger or Acquisition (August 2023)
21 slides from e.l.f. Beauty's merger presentation, Aug 29, 2023
Slide 1: Announces Definitive Agreement to Acquire Naturium
ANNOUNC ES DEFI NI TIVE AGR EEMENT TO AC QUI R E NATUR I UM AUGUS T 2 9 , 2 0 2 3
Slide 2: Forward Looking Statements and Reg G Disclosure
FOR WAR D LOOKING S TATEMENTS AND R EG G DIS C LOS UR E As a reminder, this presentation contain forward-looking statements, please refer to our press release regarding the acquisition and reports filed with the SEC where you'll find factors that could cause actual results to differ materially from
Slide 3: Our Vision
OUR VISIO N T O CR E A TE A D I F F ER EN T K IND O F BE A U T Y CO M P ANY B Y B U I L D I NG BR A NDS T H A T D I S R UPT NO R M S S H APE C U LT U R E & C O N N EC T C O M M U NITIE S T H R O UGH P O S I TI VI T Y, I N C L U S I V I TY A N D A C C E S SIBILITY . 3
Slide 4: We Have Delivered Exceptional Results
WE H AVE DELIVER ED EXC EPTIONAL R ES ULTS 1 5 OF PUB L I C C ONSUME R C OMPANI E S ( OUT OF 274) 18 QU ARTE RS OF >20% GROWT H ON AV E RAGE 4 AS REPORTED ON AUGUST 1, 2023 FOR THE QUARTER ENDED JUNE 30, 2023. 4 FACTSET AS OF JUNE 26, 2023. REPRESENTS US COMPANIES IN “CONSUMER STAPLES” OR “CONSUMER
Slide 5: Skin Care Is One of Our Key Growth Areas
S KIN C AR E IS ONE OF OUR KEY GR OWTH AR EAS INTERNATIONAL COSMETICS SKIN CARE 5
Slide 6: Skin Care Is an Attractive Category
S KIN C AR E IS AN ATTR AC TI VE C ATEGOR Y $ 12 B CATEGORY (45% MASS / 55% PRESTIGE) + 10 % YOY GROWTH NIELSEN US XAOC L52W ENDING 6/17/2023, FACIAL SKIN CARE 6 CIRCANA US L52W ENDING 6/30/2023, FACIAL SKIN CARE
Slide 7: e.l.f. SKIN Is One of the Fastest Growing Skin Care Brands
E.L.F. S KIN IS ONE OF TH E FAS TES T GR OWI NG S KI N C AR E B R ANDS + 127 % + 10 % SKIN CARE E.L.F. CATEGO RY SKIN 7 YOY CONSUMPTION GROWTH. NIELSEN XAOC LATEST 12 WEEKS ENDING 6/17/2023, FACIAL SKIN CARE CATEGORY
Slide 8: Announces Definitive Agreement to Acquire Naturium
ANNOUNC ES DEFINITIVE AGR EEMENT TO AC QUI R E NATUR I UM 8
Slide 9: Strategic Rationale
S TR ATEGIC R ATI ONALE ADVANCES E.L.F. BEAUTY’S MISSION TO MAKE THE BEST OF BEAUTY ACCESSIBLE TO EVERY EYE, LIP, FACE AND SKIN CONCERN EXPANDS BRAND PORTFOLIO WITH ADDITION OF FAST-GROWING, HIGH-PERFORMANCE SKIN CARE DISRUPTOR DOUBLES E.L.F. BEAUTY’S PRESENCE IN SKIN CARE, A KEY WHITESPACE AR
Slide 10: Naturium Is a Fast-Growing Skin Care Brand on a Mission
NATUR IUM IS A FAS T-GR OWING, S KI N C AR E B R AND ON A MIS S I ON TO MAKE H IGH PER FOR MANC E PR ODUC TS AC C ES S IB LE TO ALL $90M ~80% $17M 2-YEAR ANNUAL ANNUAL NET SALES CAGR ADJUSTED EBITDA NET SALES(1) (’22-‘24E)(1) (19% MARGIN)(1) #1 #1 ~5% MOST PRODUCTIVE FASTEST GROWING INDEPENDENT SKIN
Slide 11: Naturium Has Built Something Special
AS ONE OF THE FEW BRAND S ABLE TO SCALE, IT’S CLEAR NATURI U M HAS BUILT SOMETH I N G SPECIAL >1, 800 BRANDS >$15M IN ANNUAL SALES 79 >$50M IN ANNUAL SALES 41 11 NIELSEN XAOC LATEST 3 YEARS ENDING 6/17/2023, COLOR COSMETICS AND FACIAL SKIN CARE CATEGORIES
Slide 12: Naturium Is Known for Its Powerful Ingredient-Led Formulas
NATUR IU M IS KNOWN FOR ITS POWERFUL INGREDI E N T-LE D FORMUL AS THAT COMBI NE EFFICACY WITH A LUXURIOUS EXPERIENC E BIOCOMPATIBLE CLINICALLY-EFFECTIVE PREMIUM EXPERIENCE ACCESSIBLE • Naturium designs its • Naturium develops and • Naturium formulas are • Naturium delivers high- formulas so that the
Slide 13: Naturium Has a Strong Collection of High-Performance Skin Care Products
NATUR IUM H AS A S TR ONG C OLLEC TION OF H I GH -PER FOR MANCE S KIN C AR E PR ODUC TS SERUMS & ACIDS CLEANSERS & MOISTURIZERS Serums: Foundation of Naturium’s BODY WASHES clinically-effective offering Cleansers: First step in Naturium’s BODY LOTIONS & TREATMENTS complete skin care routine Category
Slide 14: Naturium Has an Attractive Masstige Price Point
NATUR I U M HAS AN ATTR AC T I V E “MASS TI G E” PRICE POIN T IN SKIN CARE ~ 31 $ ~ 18 $ ~ 8 $ MASS PRESTI GE NATUR IU M BRAN DS BRAND S 14 NIELSEN XAOC L52 WEEKS ENDING 6/17/2023, FACIAL SKIN CARE CATEGORY. NPD L52 WEEKS ENDING 6/30/2023
Slide 15: Naturium Has a Unique Go-To-Market Engagement Model
NATUR IU M HAS A UNIQUE GO-TO- MA R K E T ENGAGEME N T MODEL CHAMPIONED BY SKIN CARE AUTHORITIES, NETWORK AND EDUCATIONAL CONTENT POWERED BY COMMUNITY AMPLIFIED BY FOUNDER SUSAN YARA Engaged network of dermatologists, cosmetic chemists and Susan Yara, Naturium’s Founder, is a former journalist a
Slide 16: Acquisition Expected to Double e.l.f. Beauty's Presence in Skin Care
ACQUISIT I O N OF NATUR I U M EXPECTED TO DOUBLE E.L.F. BEAUTY’S PRESENC E IN SKIN CARE ~9 % ~18 % E.L.F. BEAUTY E.L.F. BEAUTY + NATUR IU M 16 SKIN CARE % OF E.L.F. BEAUTY RETAIL SALES. E.L.F. BEAUTY REPRESENTS FY 2023, NATURIUM REPRESENTS LTM AS OF JUNE 2023.
Slide 17: Well Positioned to Accelerate Naturium's Brand Awareness
WELL POSITI O N E D TO ACCELERA T E NATUR I U M ’S BRAN D AWARENE S S 83 % 73 % 61 % 59 % 5% NE UT R OGE NA C E R AVE C E T APHI L C L I NI QUE NAT UR I UM 17 AIDED BRAND AWARENESS, BCG CONSUMER STUDY & ANALYSIS (FEBRUARY 2023, N=2,208)
Slide 18: Naturium Is Both Complementary and Distinct to e.l.f. SKIN
NATUR IU M IS BOTH COMPLEM E N T A RY AND DISTINC T TO E.L.F. SKIN To make the best of beauty MISSION To make high performance skin accessible to every eye, lip, face care products accessible for all and skin concern Clinically effective, ingredient- BRAND DNA High quality skin care at focused skin
Slide 19: Opportunities for Naturium to Build on Our Retailer Relationships
WE ALSO SEE OPPO R T U NI T I ES FOR NATURI U M TO BUILD ON OUR RETAILE R RELATIO N S HI P S RETAILER / CHANNEL S K I N – – U.S. – – – – U.K. – – – CANADA – 19
Slide 20: Key Transaction Details
KEY TRANSAC T I O N DETAILS e.l.f. Beauty to acquire Naturium for a total purchase price of approximately $355 million, subject to certain PURCHASE customary purchase price adjustments PRICE Approximately 4x net sales and approximately 21x adjusted EBITDA(1) VALUATION MULTIPLE Expect to financ
Slide 21: e.l.f. Beauty
E.L.A BEAUTY