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Preliminary FY 20 Results Q1 21 Trading Update Agenda Preliminary FY 20 Results

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Preliminary FY 20 Results Q1 21 Trading Update Agenda Preliminary FY 20 Results 15 APRIL 2021 STRICTLY PRIVILEGED & CONFIDENTIAL Preliminary FY 20 Results Q1 21 Trading Update Agenda Preliminary FY 20 Results • FY 2020 Highlights • Group Financial Review • Divisional Review • THG (eco) • Q1 21 Trading Statement • Strategic Priorities – 2021 and Beyond Presented by: • Matthew Moulding (Executive Chairman and CEO) • John Gallemore (Group CFO and CEO, THG Ingenuity) • Rachel Horsefield (CEO, THG Beauty) • Lucy Gorman (CEO, THG Nutrition) • Hannah Pym (MD, THG Ingenuity) • Adam Knappy (Chief Marketing Officer) • Steven Whitehead (Group Commercial Director) FY 2020 Highlights £1.61bn Record Financial Performance Revenue • £1.61bn revenue (+41.5% YOY) 61.4% £283m o Beauty £751.6m (+57.1%) International Net Cash o Nutrition £562.3m (+36.2%) Sales o Ingenuity (excl commerce) £118.0m (-2.1%) o Ingenuity Commerce £19.3m (+160.4%) o OnDemand £101.3m (+69.1%) • Strong growth across all business units and regions 117.4% • 61.4% international sales mix Operating 45.2% • Adjusted EBITDA of £151m, +35.2% YOY, Cash Gross Margin and £153m excluding furlough costs Conversion • Robust operating cash generation of £177m (117.4% of adjusted EBITDA) £151m • Largest Initial Public Offering in the UK in 2020, Adjusted raising proceeds of c.£920m EBITDA *Gross profit and gross margin is stated before the impact of depreciation and amortisation 3 **Adjusted EBITDA is defined as operating profit before depreciation, amortisation and adjusted items, and after £2.6m of self-funded furlough costs Note: Above numbers subject to rounding 2020 Operational and Strategic Highlights >3,000 New Roles Investing for Growth Created • Significant investment in fulfilment and manufacturing capacity across UK, Europe, US and Asia 2 x NED & £365m • £365m invested in strategic acquisitions, including Dermstore in 4 x SPAD Invested In February 2021 Appointments M&A • Record levels of new customers acquired in the year • Launch of THG (eco), with sustainable business practice at the core of our trading divisions and Ingenuity offering • £10m committed to support the North West region, UK and international markets as a response to Covid-19 • >3,000 roles created in the year Opened 5 Warehouse & 10.7m New Fulfilment Customers Centres Platform Expansion To >19,000 Influencers 4 Group Overview BEAUTY NUTRITION ONDEMAND INGENUITY Digital Strategic Global Wellness Brand Family Personalisation Platform Global D2C Platform • Global industry depth • Myprotein world’s leading D2C • Licensing • End-to-end offering across global sports nutrition brand markets • Premium categories • Print-on-demand • • Growth category focus • App / Influencer / Translation / Subscription boxes • Customisation Personalisation • • Breadth of range Established brand owner • Global entertainment brands • Brand build and product • BRC AA Grade manufacturer, development driving innovation and proprietary formulations • Strong Commerce pipeline 5 GROUP FINANCIAL REVIEW Group Financial Review 2020 2019 £’m £’m Revenue 1,613.6 1,140.3 +41.5% Cost of sales (884.0) (629.4) Gross profit* 729.6 510.9 +42.8% Gross margin% 45.2% 44.8% GROUP FINANCIAL REVIEW Distribution costs (284.7) (195.0) Administrative costs (294.1) (204.4) Adjusted EBITDA** 150.8 111.5 +35.2% Group Income Statement Adjusted EBITDA% 9.3% 9.8% Self-funded furlough costs 2.6 • Group revenues increased 41.5% from £1.14bn to £1.61bn, as the Group capitalised on the Adjusted EBITDA excl furlough costs 153.4 111.5 +37.6% wider consumer shift to digital channels • Gross profit of £729.6m, +42.8% growth on the prior year with a gross profit margin of 45.2%, Sales by Division with 40bps of margin accretion YoY, as the 4% 8% 6% Group continues to vertically integrate, manage 11% its global supply chain, and promote its 6% Ingenuity product offering Beauty 5% Beauty Nutrition Nutrition 2020 OnDemand 2019 OnDemand Ingenuity Ingenuity Other Other 35% 42% 47% 36% *Gross profit, Distribution and Administration costs are stated before the impact of depreciation and amortisation 7 **Adjusted EBITDA is defined as operating profit before depreciation, amortisation and adjusted items, and after £2.6m of self-funded furlough costs Note: Above table subject to rounding 2020 2019 £’m £’m Revenue 1,613.6 1,140.3 +41.5% Cost of sales (884.0) (629.4) Gross profit* 729.6 510.9 +42.8% Gross margin% 45.2% 44.8% GROUP FINANCIAL REVIEW Distribution costs (284.7) (195.0) Administrative costs (294.1) (204.4) Adjusted EBITDA** 150.8 111.5 +35.2% Group Income Statement Adjusted EBITDA% 9.3% 9.8% Self-funded furlough costs 2.6 • Distribution costs remain well controlled at 17.6% of sales, despite the continued focus on Adjusted EBITDA excl furlough costs 153.4 111.5 +37.6% extending capacity across THG’s global fulfilment network • THG’s strong international mix, illustrates the Sales by Territory benefit of having an end-to-end fulfilment model utilising an extensive local courier network, all 24% fully integrated into the proprietary technology 39% 28% platform 35% UK UK • Adjusted EBITDA rose to £153.4m (before Europe Europe self-funded furlough costs) from £111.5m in 2020 2019 2019, whilst maintaining stable adjusted EBITDA USA USA margins RoW RoW 13% 13% 24% 24% *Gross profit, Distribution and Administration costs are stated before the impact of depreciation and amortisation 8 **Adjusted EBITDA is defined as operating profit before depreciation, amortisation and adjusted items, and after £2.6m of self-funded furlough costs Note: Above table subject to rounding 2020 £’m Adjusted EBITDA excl furlough costs 153.4 Self-funded furlough costs (2.6) Adjusted EBITDA 150.8 GROUP FINANCIAL REVIEW Depreciation (48.1) Amortisation (57.2) Non-cash adjusting items (436.7) Group Income Statement Share based payments 331.6 Impairments on assets held for sale & sale 105.1 Adjusting Items (non-cash) and leaseback • Share based payment charge Cash adjusting items (90.6) • Impairments on assets held for sale IPO and restructuring fees 14.3 Distribution costs (Commissioning new 16.1 Adjusting Items (cash) facilities) Distribution costs (Covid-19 related) 39.2 • Distribution costs relating to commissioning of purpose-built facilities to integrate into Group Other (including charitable donations) 21.0 global distribution network Operating (loss)/profit (481.8) • Covid-19 related distribution costs incurred as we maintained service levels globally despite fulfilment complexities, including reduced commercial flights and key shipping lane closures 9 Note: Above table subject to rounding 2020 2019 £’m £’m Adjusted EBITDA* 150.8 111.5 Change in working capital 26.2 (40.4) Operating cashflow 176.6 71.0 GROUP FINANCIAL REVIEW % Conversion 117.4% 63.7% Capex (239.1) (180.3) Adjusting items (98.3) (17.0) Cashflow Acquisitions (101.9) (83.7) Financing cashflows 789.5 343.8 • Working capital reflects normalised trading following a build up of stock in prior years for Interest paid and lease liabilities (52.6) (56.6) Brexit planning, resulting in strong cash conversion from operations Other cashflows (12.4) 0.2 • Capex comprises investment in intangible assets Net increase in cash 461.3 77.4 (£64.2m - mainly platform development costs), End of period cash 773.6 312.2 and elevated investment in global operations to lay the foundation for substantial capacity build and localisation Net cash / (debt)** 282.8 (431.1) • Adjusting items included fees and expenses in relation to the IPO, business restructuring costs and Covid-19 related distribution costs • Net cash of £282.8m with liquidity available of >£770m *Adjusted EBITDA is defined as operating profit before depreciation, amortisation and adjusted items, and after £2.6m of self-funded furlough costs 10 **Net cash is presented pre IFRS 16 leases and on a hedged basis Note: Above table subject to rounding FY 20 FULL YEAR RESULTS YEAR FULL 20 FY Divisional Review FY 20 FULL YEAR RESULTS YEAR FULL 20 FY Beauty Brand Partnerships £752m Subscription D2C Retail SALES 2020 Boxes +57% YOY Centre of the +53% CAGR (2015 – 2020) Global Beauty Industry Product Prestige Own 13.1m £55 6.9m Development Brand CUSTOMER AOV 2020 ACTIVE CUSTOMERS & Portfolio ORDERS +£4 YOY +2.8m YOY Manufacturing +4.8m YOY (+58%) LAUNCH OF FOUNDATION Dermstore Acquisition Announced December 2020 FINDER UTILISING >515K >1,000 CUTTING-EDGE AI Completed February 2021 TECHNOLOGY TOTAL BEAUTY BOX BRAND PARTNERS (PATENT PENDING) SUBSCRIBERS ACROSS GLOBAL ADDING £135M SALES BEAUTY SITES TO THG BEAUTY IN 2021 13 THG Beauty Beauty Own Brand Portfolio +60% 46% > 140 LFL ONLINE OF FY 20 REVENUE ACQUIRED FOR NEW PRODUCTS SALES GROWTH FROM PRODUCTS 1X REVENUE AT $60M CREATED IN 2020 MANUFACTURED IN-HOUSE 14 The Digital Strategic at the Centre of Global Beauty Building the #1 global D2C platform in beauty • Expanding Lookfantastic to become the global leader in online multi-brand distribution for the beauty industry • Integration and re-platforming of Dermstore – opportunity to scale in a key global STRATEGIC PRIORITIES STRATEGIC market • Prestige beauty market growing to £150bn by 2024 THG Beauty Established prestige brand owner Strategic Priorities • Continued integration of THG Brands onto Ingenuity platform • Best-in-class, in-house product innovation & manufacturing Digital sampling partner • Extending THG Beauty Boxes from >0.5m subscriptions • Integral marketing partner for global beauty brands as spend shifts from offline to online THG Ingenuity: access to the #1 digital platform • Become D2C partner of choice for global beauty brands, capitalising on the rapidly increasing
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