Waldencast Plc · NASDAQ:WALD
Waldencast — Waldencast Acquisition — SPAC Merger (April 2022)
98 slides from Waldencast's SPAC merger presentation, Apr 27, 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 toa proposed business combination (the “Business Combination" between Woldeneast Acqusiton Corp. ( Waldencort") and OBAGI Global Holdings Lmited endits subsicaries OBAGI) and Mik Makeup, LLC (Mie) Forward Looking Statements This Petentation contains cert
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: Ambition to build a 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 market with attractive category dynamics
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
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 specialties
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: 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 21: Category leadership anchored in #1 perceived performance
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 22: OBAGI Nu-Derm systems: a 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 23: Differentiated advantage through a credentialed and 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 24: Brand trust dispensed 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 25: 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 26: Physician satisfaction and long-lasting relationships (cont'd)
Leading position across all key physician satisfaction criteria leading to long - lasting relationship (cont’d) Dr. Prem Tripathi, MD 26
Slide 27: 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 28: ELASTIderm Eye Cream results
ELASTIderm ® Eye Cream Baseline 9 weeks 28 Note: Photos have not been retouched. Results may vary.
Slide 29: CLENZIderm System results
CLENZIderm ® System Baseline 9 weeks 29 Note: Photos have not been retouched. Results may vary.
Slide 30: OBAGI Nu-Cil results
OBAGI Nu - Cil TM Baseline 9 weeks 30 Note: Photos have not been retouched. Results may vary.
Slide 31: 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 32: 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 33: 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 34: 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 35: SKINCLUSION initiative across all 6 skin types
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 36: First medical skincare brand to publish research across all 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 37: Case study: Nu-Derm melasma results
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 38: Case study: ELASTIderm Facial Serum
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 39: 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 40: Physician-first philosophy drives loyalty
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 41: OBAGI growth strategy
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 42: 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 43: Expand breadth and depth of portfolio: Vitamin C serum
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 44: OBAGI Nu-Cil franchise opportunity
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 45: Expand OBAGI Medical 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 46: OBAGI growth strategy
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 47: Next frontier: 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 48: Device-first step to complement existing 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 73% of practices would recommend that other aesthetic practices offer OBAGI SKINTRISIQ TM treatment 3 70 Pilot clinics as
Slide 49: Making products digitally accessible with DTC platform
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 50: 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 51: 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 52: OBAGI growth strategy
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 53: 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 54: Milk Makeup
Milk MAKEUP TIMCOOLICAN CEO.
Slide 55: Our thesis: executive summary
OUR THESIS EXECUTIVE SUMMARY Dis' jive Brand Experienced Team * Proven track record Mille + Domain expertise A * Belief in brand Innovative Engaged Products Community
Slide 56: 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
Slide 57: Our community is our superpower
~ OUR COMMUNITY IS OUR SUPERPOWER OUR DNA IS BUILT AROUND THEIR VALUES: SELF-EXPRESSION + INCLUSION + COMMUNITY. | NE a = (2 ha? TE Le [9% 2 ager £4SRe2+Zee
Slide 58: Our secret sauce: clean, cool beauty that works
~ OUR SECRET SAUCE: CLEAN, COOL BEAUTY THAT WORKS UNIQUE + HIGH PERFORMANCE + VEGAN + CLEAN + CRUELTY-FREE
Slide 59: Our values are aligned with the next generation
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 June 2021 Updates Here Are Our 5 Commitments to Ourselves and Our | Community. TITTTTTTITiT
Slide 60: An experienced leadership team
AN EXPERIENCED LEADERSHIP TEAM TO DELIVER THE PLAN Tim Coolican Steve Nguyen Mazdack Rassi Dianna Ruth exo 0 Co-Founder & Chit rand ff CoFounder 600 YEARS IN YEARS AT MILK MAKEUP 2+ ae 1+ 1+ Milk... & zB Milk....... LOREAL Milk... EXPERIENCE : Milk... Mull ARDS LOREAL unitiuer Spepsico cover CANDY b
Slide 61: An experienced leadership team
AN EXPERIENCED LEADERSHIP TEAM TO DELIVER THE PLAN YEARS IN SPECIALTY % MILK MAKEUP MAY 2022 Nilofer Vahora Tyler Smart Lou Gilgenkrantz CHIEF MARKETING OFFER CHIEF CREATIVE OFFICER HEAD OF INTERNATIONAL 13+ 25+ YEARS AT PLANNED START 36 o Milk....... /ive1D0 Milk.... { LVMH EXPERIENCE REBECCA kate
Slide 62: Our roadmap is clear
~ OUR ROADMAP IS CLEAR KEY GROWTH LEVERS 3. 4 GROW COMMUNITY INNOVATE INTERNATIONALIZE LEVERAGE WALDENCAST PLATFORM | awaldencast
Slide 63: Slide 63
Slide 64: Milk Makeup key figures
ef MILK MAKEUP KEY FIGURES $47M 24% #2 2021 2018-2021 Clean Brand at Net revenue! Net revenue CAGR' ‘Sephora USA? Best-Seller Best-Seller 2.7M Face Primer at Mascara at Followers in ‘Sephora USA? Sephora USA® ‘social media* "kana for 208 a 2024 Sephora management Sephora websted sapam Tht, acboa, Tt
Slide 65: Color cosmetics: a large, dynamic market
+ 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’ $28BN Premium color cosmetics NATURAL MAKEUP: A KEY CATEGORY DRIVER +15% 2021-2026 CAGR for global natural cosmetics
Slide 66: A hybrid beauty brand
A HYBRID BEAUTY BRAND EXPANSION OPPORTUNITIES IN EXISTING AND NEW CATEGORIES MAKE-UP SKINCARE 85% of revenue 15% of revenue S aed =o 1A i ni pi fi iE M ve eS
Slide 67: մմմմմ մմմմմ մմմմմ մմմմմ մմմմմ
մմմմմ մմմմմ մմմմմ մմմմմ մմմմմ
Slide 68: Hydrogrip: the hero blueprint for the future
HYDROGRIP: THE “HERO” BLUEPRINT FOR THE FUTURE MULTI-SKU HERO FRANCHISE ~$29M IN SALES SINCE LAUNCH! ~69% 2020-2021 GROWTH? = 68
Slide 69: Hydrogrip: a social media phenomenon
= HYDROGRIP: A SOCIAL MEDIA PHENOMENON COMMUNITY ADVOCACY IS AT THE HEART OF OUR SUCCESS 7.9M VIEWS 4.8M VIEWS: 894K VIEWS
Slide 70: Innovation that works: a core strength and key opportunity
~ 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, OF | 7) ) Rise MASCARA o° + CHEEK BLUR STICK KUSH MASCARA, fa HYDROPRIMER — f7N-HYDRO SPRAY FS I H z| E| ] | b
Slide 71: Key accelerator: bigger A launches post-COVID
~ KEY ACCELERATOR: BIGGER “A” LAUNCHES POST-COVID AS CONSUMERS RETURN TO DISCOVERY + PLAY WITH MAKEUP. — fo SUMMER 202 FALL 2022 » ) ® (raiOl ea OlEaaol (OBJECTIVE TO LAUNCH “A", "8" AND “C” PRODUCTS IN EACH SEASON Introduce best selleskts to drive tra
Slide 72: Slide 72
Slide 73: 2022 spring A launch: Rise Mascara
2022 SPRING ”A” LAUNCH: RISE MASCARA ‘AN AWARD WINNING, HIGH IMPACT LAUNCH BEST CLEAN
Slide 74: 2022 spring A launch: Rise Mascara press
2022 SPRING ”A” LAUNCH: RISE MASCARA OVER 350 MILLION PR IMPRESSIONS YTD ELLE 20 Notable Beauty Products That Launchedin February =) vee Tl seat engthening Mascaras on Sale for National Lash Di These 37 Beauty Products With Such Good Reviews You May Want To Test Them Yourself Here's wo noping you na
Slide 75: Our roadmap is clear
~ OUR ROADMAP IS CLEAR KEY GROWTH LEVERS 3. 4 GROW COMMUNITY INNOVATE INTERNATIONALIZE LEVERAGE WALDENCAST PLATFORM lp awaldencast
Slide 76: 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
Slide 77: Growth opportunity: expand and monetize community
GROWTH OPPORTUNITY: EXPAND + MONETIZE COMMUNITY LARGE, ENGAGED, ELUSIVE COMMUNITY Existing Community: OTikTok = Oinstayom EPYouTube Cwitter 568.2k followers 2 million followers 88.4k subscribers 62.5k followers . . facebook @Pinterest Linked} 101k followers: 964k monthly views 70.8k followers Future
Slide 78: Our brand values align with the next generation
OUR BRAND VALUES ALIGN WITH THE NEXT GENERATION WE BELIEVE THESE WILL BECOME “WORLD VALUES” AND BE A POWERFUL LEVER FOR GROWTH OUR VALUES ALIGN WITH THE NEXT GENERATION Natural, non-toxic \ ' : 7 KAR, | ingredients are the biggest, [inciuiuaaleai er D | consideration / YOU | for younger generations
Slide 79: 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 "Euphoria' Makeup Looks At Home ik Makeup Hydro Grip Primer These Beauty Pr Be the Next Big ig, According to TikTok ate TikTok has been one
Slide 80: Milk Makeup: a favorite with key celebs
MILK MAKEUP: A FAVORITE WITH KEY CELEBS Billie Eilish’s Grammys Glam Included the Ultimate Mascara Hack ley Bieber Swears by this $20 Brow Gel | T godt
Slide 81: Growth opportunity: innovate into new products and categories
Active + Whitespace Milk Categories! GROWTH OPPORTUNITY: INNOVATE INTO NEW PRODUCTS / CATEGORIES IN EXISTING AND NEW CATEGORIES Milk Makeup has the opportunity to grow through innovation and launches BE csesites Emerging Whitespace? Mascara Primer? Blusher & Bronzer Skin Tints $2.38 $0.38 $0.78 $2.9
Slide 82: Excitement and impact in new markets
~ EXCITEMENT AND IMPACT IN NEW MARKETS UK LAUNCH DUBAI LAUNCH. ‘SPAIN LAUNCH FRANCE LAUNCH COO
Slide 83: Growth opportunity: expansion within Sephora
GROWTH OPPORTUNITY: EXPANSION WITHIN SEPHORA IN EXISTING AND NEW MARKETS Strong position in Sephora today with room to grow Sephora Door Penetration" Pp ‘Total Sephora doors Hi Mi sephora doors 1486 2 = @ to.) zm = 200 36 ——_2! 2 Canada Europe Middlo East China/SE Asia. AUS/NZ Vast opportunity to fu
Slide 84: Growth opportunity: expansion across geographies
GROWTH OPPORTUNITY: EXPANSION ACROSS GEOGRAPHIES IN EXISTING AND NEW MARKETS BBE current mic resoncein Brick & Mortar Ill xpansion opportunity ilkmakeup.com only ships. 84
Slide 85: Growth opportunity: D2C
GROWTH OPPORTUNITY: D2C IN EXISTING AND NEW MARKETS ‘Qur-goal STRATEGY 1. BEST IN CLASS SITE Current proportion of total net sales! 2. BEST IN CLASS PARTNERS 3. BEST IN CLASS TEAM 4, LEVERAGE NEW PLATFORMS WB sore ‘other stuce: Company infomation
Slide 86: 44.6% 54.0% 40.7% 53.7% 62.7% 58.6%
44.6% 54.0% 40.7% 53.7% 62.7% 58.6%
Slide 87: Our roadmap is clear
~ OUR ROADMAP IS CLEAR KEY GROWTH LEVERS 3. 4 GROW COMMUNITY INNOVATE INTERNATIONALIZE LEVERAGE WALDENCAST PLATFORM lp awaldencast
Slide 88: Financial Overview
Financial Overview
Slide 89: Financial profile
Adjusted EBITDA ($mm) $44 Net sales ($mm) Gross profit ($mm) financial profile
Slide 90: Financial profile
$25 $51 $40 $47 $66 Gross profit ($mm) $63 $39 $27 $23 $16 $11 financial profile Net sales ($mm) $101
Slide 91: 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 92: Transaction Overview
« A Transaction Overview
Slide 93: Transaction summary
transaction summary Pro forma ownership 5 4 6 Pro forma enterprise value ($mm) Obagi enterprise value Milk enterprise value $382 Pro forma enterprise value Implied 2022E Adj. EBITDA multiple 3 24.7x Implied 2023E Adj. EBITDA multiple 3 16.5x
Slide 94: 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 95: 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 96: Appendix
Appendix
Slide 97: 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 98: 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)