Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation November 2022 (CORRECTED) 1
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Statements Reconciliation of Non-GAAP Financial Measures Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor The financial information and data contained in this release have not
Slide 3: Waldencast Executive Team - Speakers
Waldencast Executive Team - Speakers Michel Brousset Philippe Gautier Founder and CEO CFO and COO 25+ years experience 30+ years experience ■ Previously Group President of L’Oréal ■ Previously Group CFO at Selecta – a North America Consumer Products KKR portfolio company Division and CEO of L’Oréal
Slide 4: Our ambition is 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 4
Slide 5: US Premium Beauty continues to show growth and resilience
US Premium Beauty continues to show growth and resilience, as it has consistently done over time YTD BEAUTY YTD MAKEUP YTD SKIN CARE +16.4% +13.7% +18.3% +14.9% +13.0% +12.2% Value Growth Units Growth Value Growth Units Growth Value Growth Units Growth Q3 BEAUTY Q3 MAKEUP Q3 SKIN CARE +15.0% +12.7%
Slide 6: Waldencast has the leading brands in two resilient high-growth beauty markets
Waldencast has the leading brands in two of the most resilient high- growth beauty markets Leading physician-dispensed #1 Leading clean makeup brand #2 Perceived best Clean brand at brand performing brand Sephora US3 among US Cult following among Gen-z providers1 consumers known for its cultural Att
Slide 7: Q3 2022 Overview
Q3 2022 Overview Strictly confidential. Property of Waldencast. 7
Slide 8: Q3 2022 – Waldencast Key Highlights
Q3 2022 – Waldencast Key Highlights1 Comparable Net Adjusted Gross Adjusted Net Sales EBITDA3 Sales2 Margin $78.9M $74.5M 71.9% $15.3M +10.3% +18.2% +155 bp +126.3% 19.4% of Net Sales OBAGI MILK Continued growth on core US physician dispensed Outstanding growth versus US market4 driven by business c
Slide 9: Q3 combined financial profile
+ Q3 22 combined financial profile1 Net Sales ($m) Comparable Net Sales2 ($m) Adjusted Gross Margin ($m) Adjusted EBITDA3 ($m) OBAGI stand-alone OBAGI stand-alone Milk stand-alone OBAGI stand-alone OBAGI stand-alone Milk stand-alone $78.9 Milk stand-alone Milk stand-alone +10.3% Waldencast central e
Slide 10: Waldencast Net Debt and Ownership
Waldencast Net Debt and Ownership Net Debt at September 30, 2022 and Terms Total Financing Line Available (Term + Revolver) $225 Gross Debt $180 Net Debt $149 Term Loan Terms SOFR + 3.6% Ownership at September 30, 2022 Obagi Shareholders 26.3% Milk Shareholders 19.6% Founders and Sponsor Members 22.
Slide 11: Waldencast fully diluted share count
Waldencast fully diluted share count, conservatively including existing allocated but unvested equity Waldencast capitalization table positions the company for success Diluted share count calculation (assuming closing share price on 09/30/22) Summary of investor lock-up agreements Shares • 1.8mm (1.
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Slide 13: Obagi Key Figures: Q3 2022
OBAGI KEY FIGURES: Q3 20221 $60.4M +12.1% 75.0% 27.0% Q3 2022 Q3 2022 Q3 2022 Q3 2022 Net Sales2 Comparable Adjusted Gross Margin Adj. EBITDA4 Net Sales Growth3 +1,369 BP vs. 3Q21 1 Waldencast is in the process of finalizing its business combination accounting and disposal of the former Obagi China
Slide 14: Obagi Growth Strategy
OBAGI GROWTH STRATEGY Grow Core Medical Strategic Growth Levers: 1. Expand US physician penetration 2. Expand portfolio breadth and depth 3. Expand US and international footprint 14
Slide 15: Expand Portfolio Depth and Breadth - US Physician Dispensed
Expand Portfolio Depth and Breadth - US Physician Dispensed Accelerate US Physician Channel +21% YTD NET SALES US Physician Dispensed Source: Obagi Internal Sales Data Sell In; Obagi Internal Sales Data Sell through Last 4 quarters vs, FY2021
Slide 16: Expand Portfolio Depth and Breadth
Expand Portfolio Depth and Breadth Obagi Nu-Derm” 76% | +6pts of accounts carry products in Obagi penetration growth in last rolling 4 Nu-Derm’? franchise. quarters vs. FY 2021. #1 Franchise in Physician Dispensed and still growing, Source: Obagi Internal Sales Data Sell through Last 4 quarters vs.
Slide 17: Professional-C account penetration
60% +6pts of accounts purchased a account penetration growth in last 4 t Professional-C® SKU in the last 4 quarters vs FY 2021, N quarters. OWING MEDICAL, Professional SERUM: 2% L-ascoreic ACID VITAMIN ¢ SERUM 102. go au Source: Obagi Internal Sales Data Sell through Last 4 quarters vs. FY2021
Slide 18: Expand Portfolio Depth and Breadth
Expand Portfolio Depth and Breadth ELASTIderm* Neck and 4 Decollete Concentrate +13./7% +34% increased # account in Growth in avg. monthly sales of Q3 2022 compared to Q2 2022, ELASTIderm® franchise launch-to-date (New launch) (May-Sep) vs prior launch (Jan-Apr). Source: Obagi Internal Sales Data Se
Slide 19: Expand with New Audiences
Expand with NEW AUINICInIES Obagi Nu-Cil!™! ial Boosting Scrum #1 #15 Ranked #1 in OTC portfolio for Q3. YTD rank with only 8 weeks of sales. Ranked #1 in Physician Dispensed launch- to-date (Aug-Sep). Source: Obagi Internal Sales Data Sell through Last 4 quarters vs. FY2021
Slide 20: Footprint expansion
Footprint expansion Unlock Obagi.com Q3 PERFORMANCE YTD GROWTH TTL REVENUE YOY TTL REVENUE YOY Q1-93 Obagi Nu-Cil™ Eyebrow Boosting Serum LTD in both revenue & units sold* #4 Obagi Nu-Cil™ Eyelash Enhancing Serum LTD saw +54% lift in revenue* since eyebrow launch 8/30 PoP 20 Source: Obagi Internal S
Slide 21: Growth driven by Obagi Clinical
Growth driven by Obagi , % Clinical, an entry price point offering into the brand in emerging YTD (Q1-3 2022) vs. YoY markets Source: Obagi Internal Sales Data Sell through Last 4 quarters vs. FY2021
Slide 22: Makeup
MAKEUP
Slide 23: Milk Makeup Key Figures: Q3 2022
MILK MAKEUP KEY FIGURES: Q3 20221 $18.5M +41.7% 62.5% 5.0% Q3 2022 Q3 2022 Q3 2022 Q3 2022 Net Sales Net Sales Growth Adjusted Gross Adj. EBITDA2 Margin +1,287 BP vs. 3Q21 +43.0% YTD Sell Out vs Selective USA Beauty Make-Up market at +18.0%3 ¹ Waldencast is in the process of finalizing its business
Slide 24: Our Growth Roadmap
OUR GROWTH ROADMAP 3 KEY LEVERS GROW AWARENESS + COMMUNITY DELIVER BREAKTHROUGH INNOVATION EXPAND + INTERNATIONALIZE DISTRIBUTION 24
Slide 25: Always-on community focus driving growth on core products
ALWAYS-ON COMMUNITY FOCUS DRIVING GROWTH ON CORE PRODUCTS AWARENESS + COMMUNITY GROWTH STRONG CORE PRODUCT GROWTH 1.7M views #milkmakeup & 283.6K likes #milkmakeuphacks Organic >275M on Tik Tok 1 Hydro Grip Primer Hydro Grip Spray Lip + Cheek Matte Bronzer $18 (mini) / $36 (full size) $21 (mini) / $
Slide 26: Looking ahead: grow awareness via top talent partnership
LOOKING AHEAD: GROW AWARENESS VIA TOP TALENT PARTNERSHIP 1.9M views in 6 days 721K views in 6 days 327K views in 5 days 1 TIK TOK and Youtube views captured on November 3rd at 4:00 pm ET 26
Slide 27: Delivering breakthrough innovation
DELIVERING BREAKTHROUGH INNOVATION BALANCED GROWTH WITH NEW LAUNCHES +40% YTD 20221 STRATEGY TO REINFORCE CORE CATEGORIES MASCARA + PRIMER WHILE EXPANDING INTO COMPLEXION Top 3 Primer since NEW Future Fluid launch at Sephora Concealer USA2 ¹ Milk internal sales data 27 2 Sephora management
Slide 28: Hydro Grip continues strong growth, Pore Eclipse incremental
HYDRO GRIP CONTINUES STRONG GROWTH, PORE ECLIPSE INCREMENTAL #1 AND #3 PRIMERS YTD AT SEPHORA USA1 +62% YTD2 #1 Primer NEW Top 3 Sephora 1 Primer Sephora 1 1 Sephora management 28 2 Milk internal sales data
Slide 29: Significant category expansion opportunities
LOOKING AHEAD: SIGNIFICANT CATEGORY EXPANSION OPPORTUNITIES KEY FOCUS: REINFORCING CORE CATEGORIES WHILE WINNING IN NEW COMPLEXION BATTLEGROUND Milk Makeup has the opportunity to grow Active + Whitespace Milk Categories1 through innovation and launches Established Emerging Whitespace3 Mascara Primer
Slide 30: Future Fluid Concealer
FUTURE FLUID CONCEALER POSITIVE EARLY REVIEWS + PR + COMMUNITY SUPPORT STRONG EARLY RATINGS + REVIEWS STRONG EARLY RATINGS + REVIEWS STRONG COMMUNITY FEEDBACK ¹ Sephora.com data captured on November 3rd at 5:00 pm ET 30
Slide 31: Expand + Internationalize Distribution
EXPAND + INTERNATIONALIZE DISTRIBUTION SIGNIFICANT WHITE SPACE WITHIN THE USA AND INTERNATIONALLY Current Milk Presence in Brick & Mortar Expansion Opportunity ~200 of ~1,300 of 6,200+ 2,900+ milkmakeup.com only ships to the US today Tremendous whitespace for untapped department store + e-commerce d
Slide 32: H2 2022: Expanding brand presence domestically and abroad
H2 2022: EXPANDING BRAND PRESENCE DOMESTICALLY AND ABROAD BOTH BRICK & MORTAR AND PURE PLAYERS IS THE US. EXPANDING IN THE 4TH MAKEUP MARKET GLOBALLY. USA EXPANSION INTERNATIONAL EXPANSION Q4/Q1 2023 2021 Doors: 200 #4 MAKE-UP MARKET GLOBALLY 1H 2022 Doors: 400+ FY 2022 Proj. Doors: 600 Launch USA:
Slide 33: Waldencast commitment to exemplary ESG
Waldencast commitment to exemplary ESG WE PLEDGE TO DONATE 1% OF ALL MILKMAKEUP.COM SALES TO THE CENTER WE PLEDGE TO DONATE 1% OF ALL MILKMAKEUP.COM SALES TO THE FASHION SCHOLARSHIP FUND MMU Sustainability Commitments: MMU social philanthropy focuses on self-expression Public Company Best in Class g
Slide 34: A platform poised for long-term profitable growth
A platform poised for long-term 2 leading brands with unique Resilient and high-growth profitable growth characterized positioning anchored in high markets that have weathered by: customer affinity and strong the macro turmoil faced by • Operational scale of a multi-brand brand equity consumer marke
Slide 35: Appendix
Appendix Strictly confidential. Property of Waldencast. 35
Slide 36: Key Financials – Quarterly Adj. EBITDA (Unaudited)
Key Financials1 – Quarterly Adj. EBITDA (UNAUDITED) PRO FORMA FINANCIALS2 Q3 20223 1Q22A vs. 2Q22A vs. 3Q22A vs. 1Q22A 1Q21A 2Q22A 2Q21A 3Q22A 3Q21A OBAGI $7,848 -15.8% $16,501 14.2% $16,327 109.2% Adj. EBITDA Milk $2,711 69.9% $5,388 301.5% $930 NM ($mm)4 Central costs 5 $0 NA $0 NA ($1,918) NM Wal
Slide 37: Q3 2022 – Condensed Consolidated Statement of Operations
Q3 2022 – Condensed Consolidated Statement of Operations (UNAUDITED)1 1 Waldencast is in the process of finalizing its business combination accounting and disposal of the former Obagi China Business. All related estimates are subject to change. When reading our financial statements, you should note
Slide 38: Q3 2022 – Waldencast plc, Adjusted EBITDA reconciliation
Q3 2022 – Waldencast plc, Adjusted EBITDA reconciliation1 1 Waldencast is in the process of finalizing its business combination accounting and disposal of the former Obagi China Business. All related estimates are subject to change. When reading our financial statements, you should note there is a c
Slide 39: Q3 2022 – Obagi Skincare Adjusted EBITDA reconciliation
Q3 2022 – Obagi Skincare Adjusted EBITDA reconciliation1 1 Waldencast is in the process of finalizing its business combination accounting and disposal of the former Obagi China Business. All related estimates are subject to change. When reading our financial statements, you should note there is a cl
Slide 40: Q3 2022 – Milk Makeup Adjusted EBITDA reconciliation
Q3 2022 – Milk Makeup Adjusted EBITDA reconciliation1 1 Waldencast is in the process of finalizing its business combination accounting. All related estimates are subject to change. When reading our financial statements, you should note there is a clear division between the “predecessor” periods that
Slide 41: Q3 2022 – Obagi Skincare Adjusted Gross Margin reconciliation
Q3 2022 – Obagi Skincare Adjusted Gross Margin reconciliation1 1 Waldencast is in the process of finalizing its business combination accounting and disposal of the former Obagi China Business. All related estimates are subject to change. When reading our financial statements, you should note there i
Slide 42: Q3 2022 – Milk Makeup Adjusted Gross Margin reconciliation
Q3 2022 – Milk Makeup Adjusted Gross Margin reconciliation1 1 Waldencast is in the process of finalizing its business combination accounting. All related estimates are subject to change. When reading our financial statements, you should note there is a clear division between the “predecessor” period