#1HONEST ROADSHOW PRESENTATION APRIL/MAY 2021#2DISCLAIMER This material has been made available to you with the consent of Honest Company, Inc. (we, us, our", or the Company. We have filed a registration statement (including a preliminary prospectus) on Form S-1 (File No. 333-255150) with the Securities and Exchange Commission (SEC) for the offering to which this presentation relates. Such registration statement has not yet become effective. The securities proposed to be offered pursuant to such registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. You should read the preliminary prospectus in such registration statement and other documents we have filed with the SEC for more complete information about us and the offering. You may get these documents for free by visiting the SEC's website at www.sec.gov. Alternatively, copies of the prospectus may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014 J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at [email protected] or Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, by telephone at (877) 821-7388 or by email at Prospectus. [email protected]. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Forward-Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements. Such forward-looking statements include, without limitation, statements regarding the Company's future results of operations or financial condition, business strategy, plans and objectives of management for future operations and market size and growth strategy. Words such as "believe," "anticipate," "plan," "expect," "intend," "will," "may," "goal," "project," "estimate," "potential" and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events and are subject to known and unknown risks, including business, regulatory, economic and competitive risks, uncertainties, contingencies and assumptions about the Company, including, without limitation, that the Company may not be able to achieve or maintain profitability, that the Company's historical growth will not be indicative of future growth, that the Company's business may be harmed if growth is not managed, that the Company may not be able to compete successfully in its highly competitive market, that the Company's business could be harmed by any significant disruptions, that the Company's brand and reputation may be diminished due to real or perceived quality, safety, efficacy or environmental impact issues with its products, that the COVID-19 pandemic could have an adverse effect on the Company's business, financial condition, results of operations and prospects, trends in the industry, the legal and regulatory framework for the industry and future expenditures. In light of these risks and uncertainties, the events or circumstances referred to in the forward-looking statements may not occur. The actual results may vary from the anticipated results and the variations may be material. These forward-looking statements should not be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such forward-looking statements have been made are correct or exhaustive or, in the case of the assumptions, fully stated in this presentation. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this presentation is given. Non-GAAP Financial Measure The Company prepares and presents its consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). However, management believes that adjusted EBITDA, a non-GAAP financial measure, provides investors with additional useful information in evaluating the Company's performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with GAAP. The Company believes that adjusted EBITDA, when taken together with the Company's financial results presented in accordance with GAAP, provides meaningful supplemental information regarding the Company's operating performance and facilitates internal comparisons of the Company's historical operating performance on a more consistent basis by excluding certain items that may not be indicative of the Company's business, results of operations or outlook. In particular, the Company believes that the use of adjusted EBITDA is helpful to the Company's investors as it is a measure used by management in assessing the health of its business, determining incentive compensation and evaluating its operating performance, as well as for internal planning and forecasting purposes. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, the Company's use of adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating the Company's performance, you should consider adjusted EBITDA alongside other financial measures, including the Company's net loss and other results stated in accordance with GAAP. We urge you to review the reconciliation of Net Loss to Adjusted EBITDA as set forth in the Appendix. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of such products.#3OFFERING SUMMARY Issuer: Offering Size: Over-allotment Option: Filing Range: Ticker / Exchange Use of Proceeds: Lock-up: Expected Pricing: Active Bookrunners: The Honest Company, Inc. $400MM 15% (100% Secondary) $14.00-$17.00 HNST/NASDAQ General corporate purposes Up to 180 days, subject to certain early releases Week of May 3rd, 2021 Morgan Stanley, J.P. Morgan, Jefferies#4HONEST LEADERSHIP Jessica Alba Founder, Chair of the Board and Chief Creative Officer Actor, Advocate and New York Times Bestselling Author Jessica Alba HONEST LIFE Nick Vlahos Chief Executive Officer Joined in 2017 31 Years of Experience THE CLOROX COMPANY greenrks #BRITA BURT'S BEES™ Kelly Kennedy EVP, Chief Financial Officer Joined In 2021 31 Years of Experience BARTELL DRUGS Sur la table Dreyers revolution for foods. See's Annie's CANDIES SERENA & LILY WILLIAMS-SONOMA#5INSPIRE YOU TO CREATE AN HONEST WORLD ~Leading, Mission driven Brand Focused on Disrupting Large Categories -Proven Lifestyle Platformh "Poised For Growth HONEST 5#6THE HONEST COMPANY AT A GLANCE FOCUSED ON DISRUPTING LARGE CATEGORIES LEADING, MISSION- DRIVEN BRAND #1 Lifestyle Brand In Clean Diaper, Beauty and Personal Care (1) 78 Net Promoter Score (2) 2,500 Chemicals We Choose Not to Use in Our Products $130Bn Total Addressable Market (3) $17Bn Clean and Natural Market (3) Clean and Natural Market Growing At 6x The Rate of The Conventional Market PROVEN LIFESTYLE PLATFORM 55% Digital Sales in 2020 45% Retail Sales in 2020 ~90% Of Diaper Buyers Surveyed in 2020 Have Expanded Their Purchases Beyond Diapers POISED FOR GROWTH $301MM 2020 Revenue 19% 18-20 Core CAGR Notes: 1 According to a third-party study that we commissioned among then-current, diaper, personal care and beauty buyers of certain brands Honest is ranked #7 and 43 across indices 2. Represents NPS among consumers who primarily shop Honest diapers of "better for you" credibility, expressive brand personality and functional excellence Ranking among four key aper brand competitors. Diapers only included brands with sharw3. Estimates for Diapers and Wipes, Skin and Personal Care, and Household and Wellness markets in 2019 greater than 1% Beauty among four key beauty brand and four key baby personal care brand competitors 4. Please sew appendix for reconciliation to GAAP matric 32% Gross Margin (4%) 2019 36% 2019 2020 Adj. EBITDA Margin (4) 4% 2020#7Mission OUR BRAND PROMBE Clean Formulated by In-House Chemists with Human Health Top of Mind HONESTⓇ INSPIRE EVERYONE TO LOVE LIVING CONSCIOUSLY Justainable Domestic DTC Business Is Carbon Neutral Using 100% PCR Shipping Cartons (1) Effective Note: 1 Our domestic Honest.com shipments from May 2020 to October 2020 were carbon neutral, and we expect our domestic Hanest.com shipments to continue to be carbon neutral through the end of 2022 Consumers Should Not Have to Choose Between What Works and What Is Good for Them Thoughtfully Designed HONEST Aesthetically Pleasing Products That Are Designed to be Showcased#8LET'S BE HONEST: OUR TRANSFORMATION STORY CREATING A CATEGORY 2012 2013 BUILDING A MOVEMENT LOVE A 4/2BABY AND EXPANDING FOUNDATION LATHERE 2017 ALBABY HONEST Well Sprayed HONEST DE LAS 14 2021 READY FOR THE FUTURE Hallo#9HIGH-PERFORMANCE TEAM... KELLY KENNEDY Chief Financial Officer 2021 See's BRUCE Joud CANDIES Sur la table WILLIAMS SOSONA SERENA revolution STRY DON FREY Chief Innovation Officer 2017 AVON JAFRA method P&G JESSICA ALBA Founder, Chair of the Board and Chief Creative Officer 2012 Globally recognized business leader, entrepreneur, advocate, actress, and New York Times bestselling author of The Honest Life JANIS HOYT Chief People Officer 2017 aetna *macys RICK REXING Chief Revenue Officer 2017 THE CLOROX COMPANY JASMIN MANNER Chief Commercial Officer 2019 12 40 FLA KPMG THE CLOROX COMPANY SHERRY PARVANEH Chief Information Officer 2019 Henkel DIAGEOSFUELS BOGE BRANDS NICK VLAHOS Chief Executive Officer 2017 #BRITA VOLT IBM green works BRENDAN SHEEHEY General Counsel 2020 Targus SIDLEY BURT'S BEES GLENN KLAGES EVP, Supply Chain 2018 8 carter's philosophy SUNG KIM VP, Finance & Strategy 2014 Merrill Lynch ERIN BITAR VP, Digital 2019 Murad. bareMinerals#10... UNITED BY A PASSION FOR THE HONEST MISSION DIVERSITY AND INCLUSION Representation (1) 68% Of Workforce Is Female built in 2021 BEST PLACES TO WORK LOS ANGELES MIDSIZE COMPANIES Note: 1. As of December 31, 2020 48% Of Workforce Are People of Color 100 WITH THE GREATEST Diversity Inclusion Initiatives Mogul 53% Of Leadership Is Female built in 2021 BEST PLACES TO WORK LOS ANGELES PERKS & BENEFITS LEARNING AND DEVELOPMENT Award-winning Learning & Development and Management programs Brandon Hall SILVER HONEST HONEST UNIVERSITY BRONZE OUR SOCIAL IMPACT 10 From the beginning, Honest has always been committed to giving back BABY2BABY#11FOCUSED ON DISRUPTING LARGE CATEGORIES 19 HONEST#12HONEST IS POSITIONED FOR WHERE THE CONSUMER IS GOING SIGNIFICANT OPPORTUNITY IN CLEAN & NATURAL IN OUR CATEGORIES 2019 Total Market Size $130Bn U.S. Markets 2019A-2025E CAGR 6x 1.5% Greater Than Conventional Clean / Natural $17Bn 13% of Total -9.3% CONSUMER SHIFT TOWARDS ECOMMERCE Clean / Natural Store-based Retail 80% ecommerce 20% Ecommerce Growing 7x Faster than Brick and Mortar Store-Based Sales By 2025, 30% of Total Retail Sales in the Conventional U.S. Will Be from ecommerce Source: Company estimates; Third party survey conducted on our behalf in August 2020 Notes: "Conventional" refers to brands that did not make explicit claims that their products were natural, "better-for-you", naturally derived or simplified formulations, or similar claims; "Clean/Natural" refers to brands that make explicit claims regarding their products being natural, "better-for-you", naturally derived or simplified formulations, or similar claims. 12#13Proven Lifestyle Platform with Deep Consumer Affinity across Categories BABY The Honest Difference In-house Product Development Capabilities that Power Innovation Deep Connection with Consumers SKIN CARE Integrated Omnichannel Approach to Drive Discovery and Accessibility BEAUTY Scalable Infrastructure and High-performance Team to Support Growth CLEANING 13#14DEEP CONSUMER AFFINITY ACROSS CATEGORIES Shampoo Bubble Bath Personal Care Conditioner Lotion 34% of First-time Honest.com Buyers Purchased at Least One Skin And Personal Care Product in 2020 Diapers Body Wash Mama Care Clean Beauty Moisturizer Cleanser Serum Eye Lip Face 26% $301MM 2020 Net Revenue 63% 46% of First-time Honest.com Buyers Purchased at Least One Diapers And Wipes Product in 2020 11% PROVEN LIFESTYLE BRAND PRODUCT DEVELOPMENT Cleaning MARKETING Household & Wellness Fem Care Wipes Sanitizer Vitamins OMNICHANNEL Disinfectant 34% of First-time Honest.com Buyers Purchased at Least One Household And Wellness Product in 2020 INFRASTRUCTURE 14#15HONEST MULTI-SURFACE REFILL POMELO SPRITE ONCENTRATED P HOMEST MULTI SURFACE HONEST BATHROOM REFILL POMELO SPRITE HOMEST BATH ROOM PRODUCT INNOVATION HONEST GLASS REFILL POMELO SPRITZ ZONCENTRATED POTS GLASS#16STRONG, IN-HOUSE PRODUCT DEVELOPMENT CAPABILITIES POWER OUR INNOVATION IN-HOUSE R&D LAB & TEAM . Created the Honest Standard • Saw the need to develop internally • Identified the right people • Built out 3 labs in 3 years Safety, sustainability, design and performance are top of mind DEVELOPMENT PROCESS STARTS WITH THE CONSUMER Ingredient & Material Assessment Carefully Selecting and Choosing What to Include and Exclude Label Transparency Empowering Consumers to Make the Right Choices 2 5 Testing & Validation Safety, Efficacy and Integrity Production Commitment to Quality Notes: 1. Only includes sales from new products and excludes sales from new prints, multi-packs, sizes, etc. PROVEN LIFESTYLE BRAND PRODUCT DEVELOPMENT Packaging Improved Use of Environmentally Friendly Materials Ongoing Evaluation & Consumer Feedback Our Products Are Driven by Proprietary Technology and a Relentlessly Focused Innovation Team MARKETING Continuously Learning, Innovating and Evolving OMNICHANNEL No-listTM of 2,500+ banned ingredients 8% of revenue generated from new products introduced in 2020 (¹) INFRASTRUCTURE 16#17WE'VE DEMONSTRATED OUR PRODUCT QUALITY ACROSS CATEGORIES External Certification Certification from Top-Tier Third-Party Organizations: NATIONAL Eczema ABDUCIATION USDA CERTIFIED BIOBASED PRODUCT SAFER CHOICE 100+ Awards Across Our Innovative Products Awards 20+ products rated "1" or "2" by the Environmental Working Group 5+ products have National Eczema Association seal of acceptance 85% of our baby and mama care formulas are USDA biopreferred 100% of chemical ingredients reviewed by EPA for human and environmental health Notes: 1. Amazon star ratings from 01/13/2018 through 03/20/2021 EST OF 29 Awards in 2020 Alone PATTORS allure Baby Recognition THECRIBSIE AWARDS 6A Beauty Recognition People AWARDA GLAMOUR F PS 2020 InStyle BEAUTY EDITORS PICK PROVEN LIFESTYLE BRAND PRODUCT DEVELOPMENT Consumer Ratings & Reviews Improved from 3.9 Stars to 4.4 Stars (1) MARKETING Average Ratings ★★★★ samantha_feher I've tried MANY eyeliners in my life. This is hands down THE best. I'm so happy that there's finally a good non toxic liquid eyeliner. The brush makes it so easy to apply as well crystal3k_ Thank you for giving the new diapers some stretch! We love the new diapers thedelanoys Absolutely love this stunning vitamin c serum! The consistency is soooo nice and absorbs so well without a sticky feel. No harsh smell, either! Leaves the skin bright and glowing @honest beauty @jessicaalba Thank you for these amazing products! #cleanbeautythatworks OMNICHANNEL INFRASTRUCTURE 17#187:48 LIFEWITHALIYA Posts lifewithaliya G គ Liked by jkroogr and 9,731 others lifewithaliya My number one most asked questions is what I do to take care of my hair! Well, I'm so excited to tell you that tomorrow ***** Q MARKETING STRATEGY Honest Content Community Commerce#19COMMUNITY DRIVEN CONTENT DEEPENS OUR RELATIONSHIP WITH CONSUMERS Content * Community ** EXPANSIVE CONTENT GENERATION HONEST BEAUTY SENSITIVE SKIN ROUTINE HONEST nighttime routine for sweet dreams Snackable, educates + entertains Insight-led, data-driven On-trend, relatable, user generated Note: 1. Total followers on Twitter, Facebook, Instagram, YouTube and Pinterest for Honest Jessica Alba DYNAMIC COMMUNITY -43MM Followers on Social Media (Jessica + Honest) (1) PROVEN LIFESTYLE BRAND PRODUCT DEVELOPMENT MARKETING Commerce+ OMNICHANNEL FLAGSHIP EXPERIENCE . INDNEST GILLA OMNICHANNEL HONEST TRULY COLMINE RATHTIME SOUTINE Thematic merchandising Integrated yet curated solution sets Creates shoppable experiences INFRASTRUCTURE 19#20INTEGRATED OMNICHANNEL APPROACH DRIVES DISCOVERY AND ACCESSIBILITY DIGITAL 55%m Honest.com . Curated brand experience Insight to our consumers' preferences and behaviors Brand engagement and loyalty Third-Party Ecommerce Platforms cult BEAUTY . Increases accessibility • Drives brand awareness Note: 1. % of 2020 Net Revenue 2. Refers to Honest's platform capabilities Third-Party Honest.com Ecommerce Platforms Brick and Mortar Retail Retailer.com ABILITY TO SERVICE ACROSS 50 STATES WITHIN 2 DAYS (2) PROVEN LIFESTYLE BRAND PRODUCT DEVELOPMENT MARKETING RETAIL 45% DOUGLAS TARGET • Expands brand awareness and access to our products • Enables convenience for our Brick and Mortar consumers • Drives accretive growth for retailers . . DOUGLAS TARGET Distinct entry into the retailer Increases accessibility . Drive traffic to retailer websites Retailer.com OMNICHANNEL INFRASTRUCTURE 20#21OUR FULFILLMENT CAPABILITIES ARE A CORE PART OF THE OPERATIONS INFRASTRUCTURE LAS VEGAS DC: • Flagship 570k Sq. Ft. facility Direct to Consumer + Retail fulfillment Honest leased and operated by GEODIS, leading global logistics provider, starting in 2018 . Note: 1. Key Target fulfillment site . NATIONAL DIRECT TO CONSUMER COVERAGE VIA 2 FACILITIES: • Las Vegas facility is focused on automated, large scale DTC fulfillment . Pennsylvania facility has traditional DTC fulfillment capabilities FONTANA WAREHOUSE: • 150k Sq. Ft. Facility • Wholesale Retail Fulfillment GEODIS 3PL Facility PENNSYLVANIA DC: 320k Sq. Ft. facility Direct to consumer + Retail fulfillment PROVEN LIFESTYLE BRAND PRODUCT DEVELOPMENT . . . GEODIS 3PL Facility Our Agile Distribution Network Empowers Our Omnichannel Strategy to Scale Effectively NETHERLANDS WAREHOUSE: 10k Sq. Ft. facility • Retail fulfillment with direct to consumer capabilities . GEODIS 3PL Facility MARKETING OMNICHANNEL INFRASTRUCTURE 21#22FINANCIAL HIGHLIGHTS AND GROWTH STRATEGY HONEST HONEST#23CONTINUED STRONG GROWTH AND MARGIN EXPANSION REVENUE SMM $238 $28 $210 2018 12% TOTAL CAGR 19% CORE CAGR Core $236 $9 $226 2019 Non-core categories Diversified revenue mix $301 $3 Note: 1. Please see appendix for reconciliation to GAAP metric $298 Portfolio simplification Focus on best-selling, higher-margin 2020 GROSS MARGIN $MM . 25.1% 2018 +1,080 BPS 32.2% 2019 35.9% 2020 Strategic retail partnerships Accretive product innovation End to end optimization Growth in higher-margin products ADJUSTED EBITDA (¹) SMM Margin: (4%) ($10) 2019 4% $11 2020 Adjusted EBITDA positive in 2020 Operating leverage from SG&A 23#24MORE DIVERSIFIED PRODUCT PORTFOLIO WITH ROBUST DIGITAL CHANNEL GROWTH REVENUE GROWTH BY CATEGORY $MM $236 $15 $59 $162 2019 28% TOTAL 116% 35% 16% $301 $33 $80 $188 2020 Diapers and Wipes Skin and Personal Care Household and Wellness REVENUE GROWTH BY CHANNEL $MM $236 $107 $129 2019 28% TOTAL 25% 30% Digital Retail $301 $134 $167 2020 24#25LONG RUNWAY FOR CONTINUED GROWTH DRIVE MARKETING INNOVATION 1 DEEPEN CONSUMER RELATIONSHIPS 2 INCREASE BRAND AWARENESS VELOCITY DRIVE PRODUCT INNOVATION 3 IMPROVE EXISTING PRODUCTS 4 INTRODUCE EXISTING PRODUCT LINE EXTENSIONS 5 LAUNCH NEW PRODUCT ADJACENCIES INNOVATION DRIVE PRODUCT ACCESSIBILITY 6 DRIVE DIGITAL CHANNEL SALES 7 EXPAND DISTRIBUTION AT RETAIL PARTNERS 8 GROW INTERNATIONAL SALES DISTRIBUTION GAINS 25#26DRIVE MARKETING INNOVATION 1 Deepen Consumer Relationships . . . EXPANDING SHARE OF WALLET . • Developing holistic product offerings Enhancing consumer experience Increasing product accessibility across channels . Executing on Content, Community, Commerce strategy Promoting brand equity ~90% of Diaper Buyers Have Expanded their Purchases Beyond Diapers (1) -50% of Diaper Buyers Have Purchased Two or More of Our Non-diaper Products (1) EXPAND AVERAGE BASKET SIZE AND FREQUENCY OF USE BRING NEW CONSUMERS INTO THE HONEST PLATFORM Source: Third party survey conducted on our behalf in August 2020, US Census Bureau. 1. Based on survey of current Honest Diaper consumers, 2. US Census Bureau as of December 2020; 3. Coresident mothers aged 25-39 with children under 18 Increase Brand Awareness ↑ Households in the US (2) 128MM Millennial Moms in the US (2)(3) 18MM Honest Consumers Only 1 in 4 diaper buyers aware of Honest (unaided) INCREASE NUMBER OF HONEST CONSUMERS 26#27DRIVE PRODUCT INNOVATION 3 Improve Existing Products CONTINUE TO RENOVATE AND IMPROVE EXISTING CORE PRODUCTS CLEAN CONSCIOUS double poo pockets DIAPER stretche belly button utout Better performance, Better sustainable materials, Better margin HONEST BEAUTY SUSTAINABILITY RESTAGE HONEST More sustainable primary & secondary packaging Better margin FOCUS ON COSTOVATION 4 Introduce Existing Product Line Extensions NEW FACES, SPACES, PLACES GENTLY NOURISHING PERSONAL CARE 24 hr moisture claim Body wash & lotion for the whole family SCENTED SANITIZING WIPES Bringing our consumer loved scent profiles to sanitizing wipes, updated claims EXTEND EQUITY, ATTRACT NEW USERS, MARKETING EFFICIENCY 5 Launch New Product Adjacencies WELLNESS: IN, ON, AROUND SENSITIVE SKIN Gentle enough for sensitive skin while effective for all CLEAN CONSCIOUS CLEANING LINE Reusable packaging, built for ecommerce INCREASE HOUSEHOLD PENETRATION, PROVIDE ENVIRONMENTAL SOLUTION 27#28DRIVE PRODUCT ACCESSIBILITY 6 Drive Digital and Retail Channels CONTINUE TO ACCELERATE DIGITAL AND RETAIL SHARE OF SHELF Digital 55% HONEST Luit • Increase brand awareness Invest in performance marketing Leverage relationships with third-party ecommerce platform partners Retail 45% . Increase shelf space at existing retailers Increase door penetration at existing retail partners Expand to new retail partners LEVERAGING HONEST'S DIGITAL EXPERTISE Expand at Retail Partners SIGNIFICANT WHITESPACE OPPORTUNITY FOR FURTHER DOMESTIC DISTRIBUTION HONEST 40% Current ACV 95-100% Legacy Brands BEING AVAILABLE WHERE CONSUMERS SHOP 8 Grow International Sales INTERNATIONAL STRATEGIC OPPORTUNITIES 2% Of Sales are International . • Strong strategic relationships with leading retailers in Canada and Europe Currently in business Meaningful opportunity to leverage Jessica Alba's large following in Europe and Asia CAPITALIZE ON GLOBAL CONSUMER SHIFT TO CLEAN AND NATURAL PRODUCTS 28 Note: 1. All-commodity volume, measures a product's distribution weighted by the overall dollar retail sales attributable to the retail location distributing such product; a retail location would be counted as having sold the product or product group if at least one unit of the product was scanned for sale within the relevant time period. This metric provides a measurement of retail penetration that takes into account the importance of selling through retail locations with higher overall retail sales volumes, and as a result we believe that our competitors generally use the same measurement#29LONG-TERM TARGET MODEL Revenue % Growth Gross Profit Margin Adj. EBITDA Margin 2019 7.9% (1) 32.2% (4.1%) Note: 1. Core revenue growth related to portfolio simplification strategy 2020 27.6% 35.9% 3.7% LONG-TERM In Line with Clean / Natural Market 45%+ 20%+ . . DRIVERS Enhanced velocity through marketing Product innovation Expanded distribution Costovation Mix shift to higher margin products Leverage strategic retailer relationships Fixed cost leverage Leverage SG&A • R&D at -2% of sales 29#30WE ARE BUILDING THE CPG COMPANY OF THE FUTURE. Solutions that solve consumers' problems. Human health and wellbeing and environmental sustainability are a priority. Digital-first and deep connections with consumers. Accessible everywhere consumers shop. Creates value for stakeholders. JOIN US. 30#31Q&A#32APPENDIX HONEST BEAUTY ORGANIC BEAUTY FACIAL OIL HONEST BEAUTY HONEST#33RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (thousands) Net loss Interest and other (income) expense, net Income tax provision Depreciation and amortization Stock-based compensation Innovation Strategy expenses (1) Non-ordinary course litigation expenses (2) Related offering costs and other transaction-related Total Adjusted EBITDA expenses (3) Notes: 1. Includes professional fees and expenses and executive severance and termination expenses related to our Innovation Strategy 2. Includes litigation and settlement fees associated with certain non-ordinary course litigation, including a matter involving the alleged breach of confidentiality and non-use obligations by a former employee and a matter involving the termination by us of a 2019 ($31,083) (429) 55 7,672 8,380 4,573 1,136 ($9,696) 2020 ($14,466) 837 89 4,854 7,905 1,511 10,459 $11,189 multi-year international distribution agreement for material breach and non-performance, and related counterclaims 3. Includes $9.7 million related to the IPO Bonuses paid in 2020, which includes associated payroll taxes and expenses, and third-party costs associated with the preparation of this IPO 33