e.l.f.

BEAUTY

TARANG AMIN &

JOHN BAILEY

JANUARY 9, 2018
e.l.f. BEAUTY

TARANG AMIN &

JOHN BAILEY

JANUARY 9, 2018
CONTENT DISCLAIMER
Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that reflect the Company’s current views with respect to, among other things, its operations and financial performance, and relate to matters such as its industry, business strategy,
goals and expectations concerning its market position, future operations, and margins profitability and other financial and operating information. The words “may,” “could,” “should,” “estimate,”
“project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on
the Company’s current expectations, estimates and projections relating to its financial condition, results of operations, plans, objectives, future performance and business and involve risks and
uncertainties which are, in many instances, beyond the Company’s control, and which could cause actual results to differ materially from those included in or contemplated or implied by the
forward-looking statements. Such risks and uncertainties include, but are not limited to: the Company’s year-end closing procedures and independent audit; the Company’s ability to grow net
sales and Adjusted EBITDA as anticipated; the Company’s ability to effectively compete with other cosmetics companies; the Company’s ability to successfully introduce new products; the loss of
one or more of the Company’s key retail customers or if the general business performance of its key retail customers declines; the consequences if the Company fails to maintain the quality,
performance and safety of its products; the Company’s ability to successfully implement its growth strategy; the Company’s ability to grow its business at historic rates, or at all, and to manage
growth effectively; any damage to the Company’s reputation or brand; the loss of, or damage to, the Company’s warehouse and distribution center and/or the manufacturing facilities or
distribution centers of its third-party manufacturers and suppliers; the loss of the third-party suppliers, manufacturers, distributors and other vendors that the Company relies on to produce
products or provide services that are consistent with its standards or applicable regulatory requirements; the Company’s ability to effectively manage its inventory; the Company’s ability to
manage its debt obligations; the Company’s ability to maintain sufficient liquidity to sustain its business and meet seasonal working capital requirements; the Company’s ability to protect against
service interruptions, data corruption, cyber-based attacks or network security breaches, and to effectively resolve issues in a timely manner if they occur; the Company’s ability to protect
sensitive information of its consumers and information technology systems against security breaches; the Company’s ability to manage the political, legal and economic risks associated with its
operations in China; and other risks and uncertainties that may be described from time to time in the Company’s reports and filings with the Securities and Exchange Commission, including the
risks and uncertainties set forth in Item 1A under the heading “Risk factors” in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 filed with the
Securities and Exchange Commission on November 9, 2017. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after
the date hereof and disclaims any obligation to do so other than as may be required by law.

Non-GAAP Financial Measures

This presentation includes the non-GAAP measure Adjusted EBITDA. The Company presents non-GAAP measures because its management uses them as supplemental measures in assessing
its operating performance, and believes they are helpful to investors, securities analysts and other interested parties in evaluating the Company’s performance. Non-GAAP measures are not
measurements of financial performance under GAAP and they should not be considered as alternatives to measures of performance derived in accordance with GAAP. In addition, these
alternative measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. These alternative measures have limitations
as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company’s results as reported under GAAP. The Company’s definitions and
calculations of these alternative measures are not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. Adjusted EBITDA is
reconciled to the most comparable GAAP measure for historical periods in the appendix to this presentation. With respect to 2017, the Company is not able to provide a quantitative reconciliation
of Adjusted EBITDA to the corresponding Net income measure without unreasonable efforts.
INTRODUCTION

TARANG P. AMIN
chairman & ceo
25+ years of CPG
leadership
$50M TO $2B
$50M TO $2B
$180M TO $1.5B
INTRODUCTION

JOHN P. BAILEY
president & cfo
15+ years working with
consumer brands
 COSMETICS
CATEGORY GROWTH
+4%
CAGR

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Third –party studies.

CATEGORY
(U.S.)

3%

2016
-2%
YTD
2017
Nielsen’s XAOC, excluding C-store database, for the 52 weeks ending 12/31/16 and 48 weeks ending 12/2/17. Cosmetics only.
 CATEGORY e.l.f.
(U.S.)
20%
17%

3%

2016 2016 2017*

-2%
YTD
2017
Nielsen’s XAOC, excluding C-store database, for the 52 weeks ending 12/31/16 and 48 weeks ending 12/2/17. Cosmetics only.
*2017 figure based on Company outlook issued November 8, 2017 and reconfirmed on January 8, 2018. The Company has not completed it’s year-end close or the annual independent audit and as such, this outlook may change.
 OUR MISSION:
MAKE LUXURIOUS BEAUTY
ACCESSIBLE FOR ALL
$1
#1 MASS ECOMMERCE SITE
STRONG
GROWTH
STRONG ENGAGEMENT
GREAT, FAST, AFFORDABLE
LONG TRACK RECORD
OF GROWTH
 58%

52%

47%

STRONG GROSS
MARGIN PROGRESS
2014 2015 2016
 NET REVENUE ($M) ADJUSTED EBITDA ($M)

+30% $62
CAGR
+23% $54
CAGR
$270
$46
$230

$191

$145 $28

2014 2015 2016 2017* 2014 2015 2016 2017*

*2017 figures based on Company outlook issued November 8, 2017 and reconfirmed on January 8, 2018. The Company has not completed it’s year-end close or the annual independent audit and as such, this outlook may change.
 high-quality, extraordinary value, consumer preferred
eyes lips face skin

> > > >

e.l.f. Matte shadow, Becca ombre
e.l.f. Lip Exfoliator fresh Sugar Lip Polish e.l.f. Primer Smashbox Primer e.l.f. c serum skinceuticals c serum
brow, liner Palette eye Palette
$12 $40 $3 $24 $6 $36 $14 $240
LUXURIOUS BEAUTY
FOR ALL 74% blinded 26% 71% blinded 29% 85% blinded 15% 85% blinded 15%
92% identified 8% 89% identified 11% 98% identified 2% 96% identified 4%

1
BUILD
GREAT BEAUTYSCAPE BEAUTYSQ UAD
BRAN DS authentic brand makeup enthusiasts love strong consumer engagement model | 32M+ followers test awareness campaign

2 idea to market
in as few as
>100 launches
per year

LEAD 13 weeks active pipeline

300+ ideas
IN N OVATION
fast & high output innovation first-to-mass, first to market meaningful adjacencies elfcosmetics.com learning lab

3 # 1 E-CO M M ERCE
UK proof market
Europe
Middle East
EXPAN D South Korea
PEN ETRATION China
strong direct engagement expand with leading beauty retailers, including .coms international expansion

4 planning: Oakland, CA
horizontal integration | depth of expertise | one team, one dream
prototyping: U.S. operations: China suppliers: nimble network distribution: Ontario, CA
DRIVE
W ORLD CLASS
OPERATION S top CPG and beauty talent 14 year sourcing advantage | best combination of speed, quality and cost
BUILD A GREAT
BRAND
OTHERS SPEAK TO THEM
WE BUILD OUR WORLD
WITH THEM
CONSUMERS ARE
OUR STARS
AND WE KNOW HOW
TO ENGAGE THEM
32M FOLLOWERS
BEAUTY SQUAD
BEAUTYSCAPE
 e.l.f.
UNAIDED
AWARENESS
13%
6%

2014 2016

Source: Third –party studies commissioned by e.l.f.

MORE LOOP
VIDEO
LEAD INNOVATION
“I NEED IT. I WANT IT. NOW. ”
AS FEW AS 13 WEEKS
 OVER 90
LAUNCHES
PER YEAR
 TOGETHER ,
WE INNOVATE
KEEP IT SIMPLE
DON’T OVER THINK IT
THEY TELL US WHAT THEY LOVE
(OR DON’T LOVE)
“whenever I used this, my skin felt
almost sticky and definitely not clean!
At one point I tried to salvage any use I
had for the product by going over the
"water" with those disposable face
wipes that you use during travel. My
face felt a lot fresher but I wasn't sure if
I was just wiping it off. So after a few
more uses, I stopped trying!.”
- Fiona007
HAND WRITTEN NOTE
“…this new formula is great … great
job e.l.f., so glad that you listen to your
customers and go out of your way to
ensure that we are satisfied. I'm so
glad that they are opening stand alone
stores, I was recently at the Glendale
Galleria store and I was like a little kid
in a candy store....loved it”
- gnewton
“I’M OBSESSED WITH MAKEUP”
THE LATEST
OVER 70
FIRST TO MASS
PRODUCTS
WE DON’T DUPE IT. WE SPIN IT.
PREFERENCE
TESTING
PREFERRED
71% BLINDED
89% IDENTIFIED
PREFERRED
85% BLINDED
98% IDENTIFIED
PREFERRED
74% BLINDED
91% IDENTIFIED
PREFERRED
68% BLINDED
89% IDENTIFIED
EXPAND BRAND
PENETRATION
DIRECT
TARGET
8 YEARS OF GROWTH
WALMART
STRONG GROWTH
MAJORITY IN 4 FEET
FULL CHAIN LAUNCH
 UK

CANADA

MEXICO
DRIVE WORLD CLASS
OPERATIONS
 OUR COMPANY
IS LIKE OUR CONSUMER
 THERE ARE A LOT OF
WOMEN HERE
(& SOME MEN TOO)
WE ARE YOUNG
WE ARE
DIVERSE
WE ARE MAKEUP
ENTHUSIASTS
HIGH PERFORMANCE TEAMS
OPERATIONS ADVANTAGE
PLANNING

CHINA HQ

DISTRIBUTION

SUPPLIERS
74
HORIZONTAL
INTEGRATION

DEPTH OF
EXPERTISE

ONE TEAM ONE DREAM

2016–2019
GROWTH
ALGORITHM

10-15% CAGR

NET SALES
AND
ADJ. EBITDA
INVESTMENT
HIGHLIGHTS

UNIQUE POSITION
IN BEAUTY

SIGNIFICANT WHITESPACE

HIGH-PERFORMANCE TEAM

77
THANK YOU
ANNU AL ADJ U S T E D E B IT DA
R E CONCIL IAT ION
($M) 2014 2015 2016
Net income (loss) ($2.9) $4.4 $5.3
Interest expense 12.5 12.7 16.3
Provision (benefit) for income taxes (0.1) 4.3 4.5
Depreciation and amortization 8.7 10.3 12.1
EBITDA $18.2 $31.7 $39.2
Transaction-related expenses 0.1 0.7 -
Costs related to “restructuring” of operations 0.4 1.6 4.7
Initial public offering preparation costs - 1.1 0.9
Stock-based compensation 0.3 0.5 7.1
Management fee 0.8 0.9 0.9
e.l.f. store pre-opening costs 0.2 0.1 1.2
Customer expansion costs - 1.2 0.7
Other miscellaneous items 1.1 0.5 -
(Gains) / losses on foreign currency contracts 7.1 7.9 (1.1)
Adjusted EBITDA $28.1 $46.2 $53.8