Q1 FY 2021 EARNINGS WEBCAST AUGUST 5, 2020

Q1 FY 2021 EARNINGS WEBCAST AUGUST 5, 2020

As a reminder, this call contains forward-looking statements that are based on management’s expectations – including those relating to the category

trends and longer-term outlook – and are subject to known and unknown risks and uncertainties, and therefore, actual results may differ materially.

Important factors that may cause actual results to differ are detailed in

today’s press release and the company’s SEC filings. In addition, the company’s presentation today includes information presented on a non-

GAAP basis. We refer you to today’s press release for a reconciliation of the differences between the non-GAAP presentation and the most directly

comparable GAAP measures. Please note after the presentation there is a separate dial-in for the QA session, also noted in the press release.

TARANG P. AMIN CHAIRMAN &

CHIEF EXECUTIVE OFFICER

STRATEGIC FRAMEWORK

3

NEW LIFESTYLE BEAUTY BRAND

2

Q1 FY 2021 RESULTS

1

TODAY’S AGENDA

+7%

+11%

+16%

Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY 20

+8%

Q4 FY 19

+3%

NET SALES GROWTH BY QUARTER, EXCLUDES E.L.F. STORES

Q1 FY 21

+8%

SIX CONSECUTIVE QUARTERS OF NET SALES GROWTH

$65 MILLION

+8%

Q1 FY 21 NET SALES

GROSS MARGIN ADJUSTED EBITDA

$16M67%

+500BPS

+7%

Q1 FY 21 RESULTS

COVERGIRL -190

MAYBELLINE -250

E.L.F. +100

L’OREAL -190

NIELSEN XAOC L12 WEEKS ENDING 6/13/20

Q1 FY 21 SHARE CHANGE (BPS) - TOP 5 COLOR COSMETICS BRANDS

REVLON -230

5.5%SHARE

E.L.F.

E.L.F.

COLOR

L4 Weeks

-11.7%

+13.0%

-21.5%

-3.8%

L12 Weeks

NIELSEN XAOC ENDING 6/13/20

L24 Weeks

-13.1%

+2.5%

OUTPERFORMING CATEGORY TRENDS

DRIVE BRAND

DEMAND

DOUBLE DOWN

DIGITAL

COST SAVINGS

FIRST TO MASS

LEADING PRODUC-TIVITY

EXECUTING ON OUR FIVE STRATEGIC IMPERATIVES

OUR MISSION: BEST OF BEAUTY

ACCESSIBLE TO EVERY EYE, LIP AND FACE

DIGITAL ENGAGEMENT

2

ABILITY TO MOVE AT

E.L.F. SPEED

3

VALUE EQUATION

1

WELL POSITIONED TO CONTINUE TO GAIN MARKET SHARE

Q1 FY 2021 HIGHLIGHTS

DRIVE BRAND DEMAND

FIRST TO MASS

HOLY GRAILS

100% VEGAN &

CRUELTY-FREE

PREMIUM QUALITY

UN- BELIEVABLE

PRICE

UNIVERSAL APPEAL

OUR SUPERPOWERS

GOVERNMENT STIMULUS IMPACT

-40%

-30%

-20%

-10%

0%

10%

20%

JAN 20 FEB 20 MAR 20 APR 20 MAY 20 JUN 20

-12%-14%

-38%

-11%

-2%0%

13%9%

-30%

0%

15%13%

COLOR COSMETICS YOY $ SALES GROWTH


E.L.F. SALES

CATEGORY SALES

Q1 FY 21 YOY GOOGLE SEARCH DEMAND

E.L.F.

CATEGORY

-9.5%

+1.5%

SEARCH DEMAND OUTPACING THE CATEGORY

+333% PRESS MENTIONS

5.5M INSTAGRAM FOLLOWERS

#EYESLIPSFACE

MOST VIRAL CAMPAIGN IN TIKTOK US HISTORY

NEW

FOCUSED ON ENTIRE DIGITAL ECOSYSTEM

CHIPOTLE BRAND COLLABORATION

4 MINS.TO SELL OUT

100%NEW CONSUMERS

+3MTIKTOK VIEWS

+350MPRESS IMPRESSIONS

NUMERATOR | ELFCOSMETICS.COM, FROM 3/1/2020 TO 6/1/2020

56%PURCHASERS AT

RETAIL WERE NEW SHOPPERS

65%PURCHASERS AT

ELFCOSMETICS.COM WERE NEW SHOPPERS

ATTRACTING NEW CONSUMERS TO THE BRAND

1.5XMORE SPEND

THAN NON-E.L.F.

PURCHASERS

HIGHLY ENGAGED BEAUTY CONSUMERS

BOVITZ, INC. (2020, JUNE) MAKEUP CATEGORY ATTITUDES & USAGE STUDY COMMISSIONED BY E.L.F. COSMETICS; CONFIDENTIAL & PROPRIETARY

MAJOR STEP UP IN DIGITAL

DIGITAL COMMERCE PENETRATION

FY 20 Q1 FY 21

11% 17%

TRIPLE DIGIT

GROWTHQ1 FY 21 DIGITAL CONSUMPTION

GROWTH

+150%

MEMBERS2M

BEAUTY SQUAD LOYALTY MEMBERS TO DATE | Q1 FY 21 GROWTH IN NEW MEMBER ACQUISITIONS VERSUS PY

BEAUTY SQUAD LOYALTY PROGRAM

elfcosmetics.com/eu

elfcosmetics.com/de

COUNTRIES WHERE E.L.F. IS AVAILABLE

FIRST TO MASS PRODUCT

CBD COLLECTION

-7%

+19%+47%

+32%

>100% ELFCOSMETICS.COM

CATEGORY E.L.F.

-17%

L4W ENDING

4/18

L4W ENDING

5/16

L4W ENDING

6/13Q1 FY 21

NIELSEN XAOC, SKIN CARE

SKIN CARE CONSUMPTION TRENDS

STRENGTH IN CORE SEGMENTS

#1 IN PRIMERS 36.2% $ SHARE

+6.5 $ SHARE PTS

#1 IN BRUSHES 34.7% $ SHARE

+0.8 $ SHARE PTS

#1 #2 & #3 BROW PENCILS 11.0% UNIT SHARE

+2.0 UNIT SHARE PTS


CAMO CONCEALER FRANCHISE 15.0% $ SHARE OF CONCEALERS

+13 $ SHARE POINTS

BEAUTY SUPERHEROES

PUTTY PRIMER FRANCHISE 15.8% $ SHARE OF PRIMERS

+15 $ SHARE POINTS

NIE

LSEN

XA

OC

L1

2 W

EEK

S EN

DIN

G 6

/13

/20

PORELESS PUTTY PRIMER

#1

LUMINOUS PUTTY PRIMER

#4

NIELSEN XAOC L12 WEEKS ENDING 6/13/20, RANK WITHIN PRIMER CATEGORY

MATTIFYING PUTTY PRIMER

#7

SOLD OUT IN LESS THAN 5 DAYS ON

ELFCOSMETICS.COM

LEADING PRODUCTIVITY

EXPANDING THIS FALL

EXPANDING THIS FALL

EXPANDING THIS FALL

ELFCOSMETICS.COM

6% 9% 25%

TRACKED CHANNELS

FY 20 Q1 FY 21

SKIN CARE PENETRATION

Q1 FY 21

COST SAVINGS

SUPPLY CHAIN FULLY OPERATIONAL

AFTER 5 WEEKS

COGS SAVINGS

SHARPEN PRICING

INVEST IN BRAND RECHARGE

W3LL PEOPLE

STRATEGIC EXTENSIONS

W3LL PEOPLE

EWG-VERIFIED PRODUCTS

40

NEW LIFESTYLE BEAUTY BRAND

“What makes us different is also what makes us wildly,

boldly, and marvelously who we were born to be.”

COMING 2021

MULTI-YEAR MULTI-CATEGORY

PRODUCT PIPELINE

Board-certified Dermatologist

Associate Professor, University of Texas School of Medicine

Practice in medical dermatology & skin rejuvenation

W3LL PEOPLE Co-Founder

E.L.F. BEAUTY family member

DR. RENEE SNYDER

STRATEGIC FRAMEWORK

THE BOLD DISRUPTOR WITH A KIND HEART.

INCLUSIVE, ACCESSIBLE, CRUELTY-FREE BEAUTY.

LIFESTYLE BEAUTY BRAND

CRAFTED WITH ALICIA KEYS

FOR HOLISTIC WELLNESS

PLANT POWERED MASSTIGE BEAUTY

FOR THE CLEAN BEAUTY ENTHUSIAST

TREND DRIVEN MASS BEAUTY

FOR EVERY EYE, LIP AND FACE


EXC

LUS

IVE D

ISTR

IBU

TION

AC

CES

SIB

LE D

ISTR

IBU

TIO

NPRESTIGE PRICE

MASS PRICE


MOVING AT E.L.F. SPEED

DIGITAL STRENGTH

CORE VALUE PROPOSITION

OUTPACE THE CATEGORY

+ =

MANDY FIELDS SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER

STRATEGIC EXTENSIONS

3

PERSPECTIVE ON CURRENT

ENVIRONMENT

2

Q1 FINANCIAL RESULTS

1

TODAY’S AGENDA

$65 MILLION

+8%

Q1 FY 21 NET SALES

GOVERNMENT STIMULUS IMPACT

-40%

-30%

-20%

-10%

0%

10%

20%

JAN 20 FEB 20 MAR 20 APR 20 MAY 20 JUN 20

-12%-14%

-38%

-11%

-2%0%

13%9%

-30%

0%

15%13%

COLOR COSMETICS YOY $ SALES GROWTH


E.L.F. SALES

CATEGORY SALES

COVERGIRL -190

MAYBELLINE -250

E.L.F. +100

L’OREAL -190


Q1 FY 21 SHARE CHANGE (BPS) - TOP 5 COLOR COSMETICS BRANDS

REVLON -230

5.5%SHARE

E.L.F.

Q1 FY 21 GROSS MARGIN ELFCOSMETICS.COM

67%

+500BPS

LESS PROMOTIONAL

STRONGER GROSS MARGIN

MARGIN ACCRETIVE

MIXE-COMMERCE

FX RETAIL PRICE INCREASES

GROSS MARGIN DRIVERS

Q1 FY 20

47%

51%

ADJUSTED SG&A

Q1 FY 21

MARKETING & DIGITAL INVESTMENT

TARGET RANGE

12-14%11%Q1 FY 21

$16 MILLION

+7%

Q1 FY 21 ADJUSTED EBITDA

Q1 FY 20

$7M

Q1 FY 21

$9M

ADJUSTED NET INCOME

$0.17

Q1 FY 21Q1 FY 20

$0.14

ADJUSTED EPS

CASH ON HAND + REVOLVING CREDIT FACILITY

>$100 MILLION

STRONG LIQUIDITY

CASH PRIORITIES

FORTIFYING THE BALANCE

SHEET

INVESTING BEHIND FIVE STRATEGIC

IMPERATIVES

FUELING LONG-TERM

GROWTH

FISCAL 2021 GUIDANCE REMAINS SUSPENDED

RETURN TO NORMALCY

SHORT-TERM UNCERTAINTY

LONG-TERM MODEL

SALES

LONG-TERM ECONOMIC MODEL

Scenario #1WITHOUT significant space gains or strategic extensions

Scenario #2WITH significant space gains

and strategic extensions

ADJUSTED EBITDA

LOW TO MID SINGLE DIGIT NET SALES CAGR

OUTPACES SALES GROWTH

MID TO HIGH SINGLE DIGIT NET SALES CAGR

OUTPACES SALES GROWTH

MODEL AS PRESENTED IN PRESS RELEASE AND EARNINGS CALL ON FEBRUARY 5, 2020. CAGR REPRESENTS EXPECTATIONS OVER A 3 YEAR TIME FRAME, EXCLUDING COVID-19 IMPACT.

TARANG P. AMIN CHAIRMAN &

CHIEF EXECUTIVE OFFICER

85

WE HAVE THE RIGHT TEAM

TARANG P. AMIN CHAIRMAN & CEO

MANDY FIELDS SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER

RICHARD F. BARUCH JR. SENIOR VICE PRESIDENT &

CHIEF COMMERCIAL OFFICER

SCOTT K. MILSTEN SENIOR VICE PRESIDENT, GENERAL COUNSEL, CORPORATE SECRETARY

& CHIEF PEOPLE OFFICER

KORY MARCHISOTTO SENIOR VICE PRESIDENT & CHIEF MARKETING OFFICER

FANNY XU VICE PRESIDENT, GENERAL

MANAGER, CHINA OPERATIONS

EXECUTIVE TEAM

Highly-experienced, blue-chip background executive team with proven experience managing and growing brand portfolios

JOSH FRANKS SENIOR VICE PRESIDENT,

OPERATIONS

MILLENNIAL

60%FEMALE

73%DIVERSE

46%

TARANG P. AMIN CHAIRMAN & CEO

TARANG P. AMIN CHAIRMAN & CEO LAUREN COOKS LEVITAN RICHELLE P. PARHAM

BETH M. PRITCHARD LEAD INDEPENDENT DIRECTORKIRK L. PERRY SABRINA L. SIMMONS

MAUREEN C. WATSON RICHARD G. WOLFORD

(OUT OF 4,800 PUBLIC COMPANIES)

1OF 9

PUBLIC COMPANIES WITH OVER

67%

WOMEN ON BOARD OF DIRECTORS

WE HAVE THE RIGHT TEAM

LORI KIETH

WE KNOW OUR CONSUMERS AND HOW

TO ENGAGE THEM

INSTAGRAM FOLLOWERS

TIKTOK ENGAGEMENT

MILANI: 3.8M

WET N WILD: 3.1M

COVERGIRL: 2.9M

REVLON: 2.6M

ANNUAL TRAFFIC (US+UK+APP)

30M

MOBILE TRAFFIC

80%

#1 MASS E-COMMERCE SITE

LOYALTY MEMBERS

2.0M

BEAUTY PROFILES670K

UNIQUE ANNUAL VISITORS (US+UK+APP)

17M

FOLLOWERS (JUNE 2020)

5.5M

MASSIVE AUDIENCE REACH

$68M EMV (FY 21 Q1) +13% YOY

TOTAL E.L.F. FOLLOWER BASE

37MTOTAL SOCIAL FOLLOWERS

(ACROSS TOP PLATFORMS)

8.9M

VIDEO CREATES

4.5M#EYESLIPSFACE VIEWS

6.2B

#1 MOST VIRAL CAMPAIGN IN TIKTOK US HISTORY

GEN Z PREFERENCE

#4 FAVORITE TEEN BRAND (UP FROM #6 LAST YEAR)

Source: Piper Sandler ‘Taking Stock With Teens Spring 2020’

WE KNOW HOW TO MAKE PRODUCTS

PEOPLE WANT100+ new items per year

300+ ideas in pipeline

Highly integrated innovation team

Robust insights from#1 mass e-commerce site

BRUSH BRAND #1 FACE BRUSHES #1 EYE BRUSHES

#1

NIELSEN U.S. XAOC, L52 WEEKS ENDING 6/13/20

PRIMER BRAND #1 AND #2 PRIMERS

#1

#2 and #3 EYEBROW PENCILS

#1

SETTING SPRAY BRAND

#1

EYE LASH CURLER BRAND

#1

WE MOVE AT E.L.F. SPEED

From concept to digital commerce in as

few as 13 weeks

First to market, first to mass

THIRD PARTY SUPPLIERS FROM FILLERS TO

COMPONENT SUPPLIERS IN CHINA

30E.L.F. SHANGHAI

EMPLOYEES IN PRODUCT DEVELOPMENT, SOURCING

AND QUALITY

69

BUILDING OUR 1ST

MANUFACTURING PLANT IN

SO. CALIFORNIA

COST + QUALITY + SPEEDBEST COMBINATION OF

250KSQ FT RETAIL

DISTRIBUTION WAREHOUSE IN SO. CAL.

WE HAVE WORLD-CLASS OPERATIONS

Horizontal integration with like-minded suppliers provides utmost control

Dedicated quality team focused on quality assurance & control

State of the art automated DTC fulfillment in Columbus, OH with ability to customize

Distribution warehouse recognized as best in class by retailers

WE KNOW HOW TO WIN IN MARKET

From 11K to 110K total linear feet in retail in last 5 years

Highest productivity of sales per linear foot in Target & Walmart

Highly experienced team partnering strategically with leading global retailers

DISTRIBUTED IN OVER

25K RETAIL DOORS


WE KNOW HOW TO BUILD

BRANDSFrom a mono-brand company

to a multi-brand house

Selectively pursuing acquisitions and incubating new brands

THANK YOU

Q1 FY 2021 EARNINGS WEBCAST AUGUST 5, 2020

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