#1PERFECT DIARY 完美日记 UND ANDBIE LITTLE ONDINE LITTE BEORGINA EVE LOM Pink Bear GALÉNIC DR.WU EVE LO CANSER/CREME DEMAQ ABBY'S CHOICE 完子心选 PARIS Q3 2021 Investor Presentation Yatsen Holding Limited#2Disclaimer YSG 逸仙 This presentation has been prepared by Yatsen Holding Limited (the "Company") solely for information purpose. By viewing or accessing the information contained in this material, you hereby acknowledge and agree that no representations, warranties or undertakings, express or implied, are made by the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission (the “SEC”) or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securities Act”) and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or investment decision in relation to any securities or otherwise. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this presentation shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance. You acknowledge that any assessment of the Company that may be made by you will be independent of this presentation and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect the Company's intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," "intends," "anticipates," "believes," "confident" or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company's operations and other factors, many of which are beyond the Company's control, and accordingly, actual results may differ materially from these forward-looking statements. The Company or any of its affiliates, advisers or representatives has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation also contains non-GAAP financial measures, the presentation of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In addition, the Company's calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. The reconciliation of those measures to the most comparable GAAP measures is contained within this document or available at the Company website http://ir.yatsenglobal.com/. 2#3IARY Business Review YSG 逸仙#4Q3 2021 Key Highlights Net Revenues RMB 1.34Bn 6.0% YoY Growth PERFECT DIARY RY Gross Margin 67.9% +2.2 percentage points YoY PERFECT DIARY OFER PERFECT DIARY SER PERFECT DIARY#5Industry Backdrop China Beauty Retail Spending YoY Growth* 45.4% China General 33.9% Consumer Retail Spending YoY Growth* 18.3% 13.9% 5.0% 4.9% Q1 2021 Q2 2021 Q3 2021 YSG 逸仙 Revenue YoY 42.7% 53.5% 6.0% Growth % Note: *Based on data from China National Bureau of Statistics YSG 逸仙 . Key Industry Developments in 2H 2021 Macroeconomic headwinds In color cosmetics, high base vs. 2H 2020 due to COVID-induced recovery Aggressive promotion tactics by global brands Continuation of these developments in Q4 5#6Evolution of Our Growth Model YSG 逸仙 New Growth Initiatives Invest in brand equity across the portfolio Develop world-class R&D capabilities YSG 逸仙 Focus on sustainable growth YSG 逸仙 Our Growth Model Disruptive DTC model + leverage growth of social media and ecommerce Compelling products + "value- for-money" + world-class OEM partners Rapid growth to become #1 beauty group in China 6#7Building a Portfolio of Great Brands Color Cosmetics Premium Skincare YSG 逸仙 EVE "Where skin radiance begins" LOM GALÉNIC PARIS "1% matters - where beauty meets street fashion" Masstige LITTLE DR.WU ONDINE Mass PERFECT DIARY "Unlimited beauty" "Young girl's beauty journey" Pink Bear "Beauty through science" "Highly efficacious, low sensitivity, dermatology expertise " ABBY'S CHOICE "Delight of Healthy Skin" 完子心选 7#8Building Long Term Brand Equity EVE LOM EVE LOM 经典洁颜霜 New Brand Spokesperson 完美日记品牌全球代言人 刘昊然 NEW 下一步 更出色 完美日记[银翼⌋小细跟口红 PERFECT DIARY 养卸合一 奢宠发光肌 EVE LO Pink Bear 科兰黎「抗氧1号」VC精华! 每天一点小美好 GALENIC 精纯抗氧一夜焕亮" 20% be11 FREE PEVC GALÉNIC PARKS 「抗氧1号」VC精华! 法国科兰黎 挚何 友穗 法国科兰黎品牌挚友 何拒 *marie daire 程潇 皮可熊Pink Star甜心大使 che Continued Branding Events OPENLAB 6.181-04 エーアールビューティーカンパ BAZKAG YSG OPE YSG 逸仙 第四届中国国迸口博覧会 开馆仪式 202 YSG 逸仙 130 YSO¬BW YSOW YSGW 150 au YSON GALERI АЛЛДА GALENIC 世界逸彩 耀 D YSOA OJESH YSG EVE LOM GALENIC YSCOLD China International Import Expo 8#9Strategic Roadmap By Brands Maintain upper mass market position • Continue brand upgrade and premiumization . Penetrate base-makeup category Pink Bear . . Penetrate lower mass color cosmetics . IP collaborations Focus on lip gloss category with 1-2 other core SKUs LITTLE ONDINE . . Maintain sustainable scale within masstige Focus on 1-2 core product categories YSG 逸仙 9#10Strategic Roadmap By Brands EVE LOM GALÉNIC PARIS DR.WU (Mainland China) • ABBY'S CHOICE 完子心选 • . . Focus on deepening brand equity ● . Luxury (Eve Lom) Premium / scientific (Galénic) Professional dermatology (DR. WU) Expand and accelerate sales scale Maintain sustainable scale Focus on private domain channels YSG 逸仙 10#11Sustained Investments in R&D R&D Expenses (% Net Revenues) Expanding the Open Lab Collaboration 2.7% SENSIENTⓇ Pierre Fabre NO NANO MEDICINE 1.1% 3Q2020 3Q2021 AH A&H COSMETICS PERFECT DIARY 学院化学研究月 ICCAS 1956 •INSTITUTE OF CHEMISTRY CHINESE ACADEMY OF SCIENCES intercoS GROUP NOLYS LAB SmartLOCK Technology SKIN CREATIONS YOUR SKIN DESIGNER 106 Global registered patents* 40 Innovation Patents* 普通吸油粉体 SmartLOCKI™粉体 *本动画模拟人体皮脂分泌、氧化后即被SmartLOCK™吸附的过程 Note: *As of September 30, 2021 YSG 逸仙 SHANGHAI RUIJIN HOSPITAL * JIAOTONG 金 UNIVERSITY MEDICINE SCHOOL SUN YAT-SEN 1924 底妆油脂 皮肤多余油脂 11#12SHANGHAI New Partners to the Yatsen OpenLab RUIJIN JIAOTONG . HOSPITAL UNIVERSITY OF MEDICINE 100HƆS Ruijin Hospital Ruijin Hospital (part of Shanghai Jiaotong University School of Medicine) is a Grade III General hospital founded in 1907 • The dermatological department of Ruijin Hospital is a national-grade clinic with specialty in refractory skin diseases • Jointly establish Innovative SkinCare Laboratories to focus on clinical skincare R&D 中山 SUN 1924 t 學 YAT-SEN UNIVERSI Sun Yat-sen University YSG 逸仙 Yatsen and Sun Yat-Sen University form a 3- year collaboration to cover 5 main advanced skincare research topics: ✓ Advanced ingredients ✓ Innovative formulations ✓ Efficacy testing ✓ Skincare innovation ✓ Skin problems 6.2萬 B 創造 廿 YATSEN YSG 逸仙, YSG 逸仙研发 OPENLAB 共创生态 战略伙伴签约仪式 COSM 1 150 遙仙电商 瑞金医院 117 科丝美诗 ANTIAGIN 博 12#13Framework for Sustainable Growth Key Focus Areas Increase sales contribution from skincare YSG 逸仙 Key Outcomes Growth Increase sales contribution from masstige / premium brands Increase sales contribution from non- traditional ecommerce channels More tactical traffic expenses deployment and sustained branding investments Sustainable growth with clear path to profitability Optimize Tight lid on fulfillment and G&A expenses 13#14YSG 逸仙 Financial Review PERFECT DIARY " Try me 11 205#15Healthy Revenue Growth and Gross Margin Improvement Net Revenue Gross Profit and Gross Margin (RMB MM) 1,266 +6.0% (RMB MM) 65.7% 1,343 832 3Q2020 3Q2021 3Q2020 67.9% +9.6% 912 ☐ Gross margin 3Q2021 YSG 逸仙 15#16Empty#17Relatively Stable Non-GAAP Net Loss Non-GAAP Net Loss* (RMB MM) Non-GAAP Net Loss Margin -197 -216 3Q2020 (644) 3Q2021 (362) -15.6% -16.1% 3Q2020 (50.8%) 3Q2021 (26.9%) YSG 逸仙 Note: GAAP Net Loss (incl. share-based compensation and amortization of intangible assets) *Non-GAAP net loss is a non-GAAP financial measure, which is defined as net loss excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) tax effects on non-GAAP adjustments. 17#18Sufficient Cash to Meet Operating Requirements Cash and Cash Equivalents (RMB MM) 5,733 4Q2020 4,325 4,106 3,633 1Q2021 2Q2021 3Q2021 YSG 逸仙 Authorized up to US$100MM share repurchase plan to be conducted over two years 18