#1PERFECT DIARY |完美日记 Little ONDINE 小奥汀 Second Quarter 2023 Investor Presentation Yatsen Holding Limited Pink Bear DR.WU GALENIC EVE LOM ARIS ABBY'S CHOICE 完子心选#2YSG1 Disclaimer 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#3** GALÉNIC PARIS GALÉNIC GALÉNIC [N°1] M*** TYUSERCO GALENIC FARTSVE www YSG1L Second Quarter 2023 Review#4Second Quarter 2023 Snapshot Total Net Revenues RMB 858.6MM -9.8% YoY GAAP Net Loss Margin 12.6% Narrowed by 15.1 percentage points YoY Gross Margin 74.7% +11.9 percentage points YoY Notes: 1 As of June 30, 2023 Non-GAAP Net Loss Margin 5.4% Narrowed by 16.4 percentage points YoY Cash, Restricted Cash and Short-term Investments¹ RMB 2.57Bn#5Modest Post-COVID Recovery Year-over-Year Changes¹ China Consumer Goods Retail Sales China Beauty Products² Retail Sales 3.3% 1.8% -4.6% 3.5% 0.5% 5.7% 5.9% -3.2% -3.1% 11.5% 10.7% -6.7% 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 202023 Quarter-over-Quarter Changes¹ -10.4% 8.0% -4.3% -6.4% 10.9% -9.5% 36.4% Notes: 1 Based on the adjusted data published by China National Bureau of Statistics ("CNBS") 2 Beauty products include color cosmetics and skincare products. -5.7% 0.8% -2.0% -10.3% -18.0% 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 YSG 逸仙 Retail sales of both China consumer goods and beauty products increased year-over-year... ...while quarter-over-quarter changes indicated a mild recovery pattern 5#6Our Strategic Transformation on Track Higher Revenues Contribution From Skincare Brands¹ Total Net Revenues from Skincare Brands² (%) 33.4% 2Q2022 37.9% 2Q2023 Improved Gross Margin Gross Margin (%) 62.9% 2Q2022 74.7% 2Q2023 Lower S&M Expenses %1 Selling & Marketing Expenses (%) 65.7% 2Q2022 63.2% 2Q2023 Notes: 1 As a percentage of total net revenues 2 Include net revenues from DR.WU (its mainland China business), Galénic, Eve Lom, Abby's Choice and other skincare brands of the Company. Narrowed Net Loss Net Loss (RMB MM) -264 YSG1 2Q2022 -108 2Q2023 6#7Key Business Initiatives Support growth of Skincare Brands More disciplined pricing and discount policies Finetuning the Revenue Mix Finetune color cosmetics business model Cost Cutting Optimization of supply chain YSG1 Invest in R&D for robust new hero product pipeline Improvement of operating efficiencies 7#8Growing Skincare Brands¹ 2Q2023 Net Revenues from Skincare Brands¹ RMB 325.2MM +2.3% YoY GALENIC SECRET D'EXCELLENCE LA CRÈME ACTIVE SK GALENIC 1 33.4% Percentage of Total Net Revenues 2Q2022 2Q2023 YSG1 Note: ¹ Include net revenues from DR.WU (its mainland China business), Galénic, Eve Lom, Abby's Choice and other skincare brands of the Company. 37.9% Exceeded 30% for five consecutive quarters 8#9Solid Clinical and Premium Skincare Brands Performance EVE LOM DR.WU 达尔肤经療研究基 2023# &&& CLINICAL SKINCARE Mainland China Business DR.WU participated in the World Congress of Dermatology and celebrated its 20th anniversary. +13% 2Q2023 YoY growth in combined net revenues for DR.WU¹, Galénic, and Eve Lom DR.WU*** 医师专研 低敏高效 NO.1 NO.1 杏仁酸焕肤源自網线保持预先 Note: DR.WU's mainland China business DR.WU 达尔肤 DR.WU at the World Congress of Dermatology GALÉNIC PARLS Galénic participated in the World Congress of Dermatology and introduced its patented snow algae peptide. GALENICEUTICALS GALENIC GOLDEN-PRINCIPLES NLE DOSE P GALÉNIC PARIS GALENIC COUTURE GALENIC PATENT, ALGAE-TIDE Galénic at the World Congress of Dermatology PARIS 法国科兰黎 Eve Lom hosted a joint "high tea" event with Six Senses Hotel and presented its products. MYSTERY GARDEN VILLA EVE LOM WHERE RADIANCE BEGINS 秘境庄园别墅 Mystery Garden Villa, sponsored by Eve Lom at the Six Senses Hotel EVE LOIM#10Offline Retail Footprint Perfect Diary Eve Lom We completed most of our adjustments in our offline footprint during 2022. 294 8, 286 2021/12/31 Note: 1 Mainland China stores only 278 8₁ 270 2022/3/31 234 6 # of Experience Stores¹ 228 2022/6/30 204 6 198 2022/9/30 164 6 158 2022/12/31 157 7 150 2023/3/31 141 5 136 2023/6/30 YSG1 10#11Our Guangzhou Manufacturing Hub On August 11, 2023, operations of the Guangzhou manufacturing hub we established with Cosmax officially commenced, enabling further optimization of our supply chain. COSMAX YSG fill YSG1L It is a more technologically advanced and environmentally conscious factory for the production of beauty products of superior quality. R- 11#12EVE LOA CLEANSER/ CREME DEMA EVE LOM VELO EVE LOM EVE LOM SOMERSET HOUSE, LONDON YSG1L Financial Review#13Revenue and Gross Margin (RMB MM) 952 2Q2022 Net Revenues -9.8% YoY 859 2Q2023 Slow-down in Color Cosmetics Brands¹ partially offset by growth in Skincare Brands² +11.9 percentage points YoY 62.9% Gross Margin 2Q2022 74.7% Notes: 1 Include net revenues from Perfect Diary, Little Ondine, Pink Bear and other color cosmetic brands of the Company. 2 Include net revenues from DR.WU (its mainland China business), Galénic, Eve Lom, Abby's Choice and other skincare brands of the Company. 2Q2023 YSG1L Higher revenue contribution from Skincare Brands², more disciplined pricing and discount policies and cost optimization 13#14Operating Expenses GAAP Operating Expenses %¹ -1.5 percentage points YoY 92.0% 3.4% 15.5% 65.7% 7.3% 2Q2022 R&D exp G&A exp Notes: 1 As a percentage of total net revenues S&M exp 90.5% 3.0% 17.4% 63.2% 6.8% 2Q2023 Fulfillment exp YSG1L Higher G&A expenses as a percentage of total net revenues attributable to an increase in share-based compensation, combined with the deleveraging effect of lower total net revenues in the second quarter of 2023. Lower S&M expenses as a percentage of total net revenues attributable to the closure of underperforming offline stores and a reduction in share-based compensation related to the decrease in selling and marketing headcount, partially offset by an increase in online advertising expenses. 14#15Net Income (Loss) Margin Reconciliation of Non-GAAP Net Income (Loss)¹ (RMB MM) Net Income (Loss) YoY Share-based compensation expenses Amortization of intangible assets resulting from assets and business acquisitions Revaluation of investments on the share of equity method investments Tax effects on non-GAAP adjustments Non-GAAP Net Income (Loss) YoY 2Q22 (264) 47 12 (2) (208) 2Q23 (108) -59.0% 48 13 4 (2) (46) -77.7% (%) Net Income (Loss) Margin YoY Reconciliation of Non-GAAP Net Income (Loss) Margin Share-based compensation expenses Amortization of intangible assets resulting from assets and business acquisitions Revaluation of investments on the share of equity method investments Tax effects on non-GAAP adjustments Non-GAAP Net Income (Loss) Margin YoY 2Q22 (27.8%) 4.9% 1.2% (0.2%) (21.8%) YSG 逸仙 2Q23 (12.6%) +15.1 percentage points 5.5% 1.5% 0.5% (0.3%) (5.4%) +16.4 percentage points Note: 1 Non-GAAP net income (loss) is a non-GAAP financial measure. Effective from the third quarter of 2022, non-GAAP net income (loss) is defined as net income (loss) excluding (i) share- based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, and (iv) tax effects on non-GAAP adjustments, and non-GAAP net income (loss) for the prior year period presented in this document is also calculated in the same manner. 15#16Operating Cashflow (RMB MM) 4,326 -466 1Q2021 4,106 -79 2Q2021 Note: 1 As of the end of each quarter. 3,633 -225 3,138 -250 2,965 -104 3,063 112 2,601 22 2,627 107 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 Balance of Cash, Restricted Cash and Short-term Investments¹ 2,536 -20 1Q2023 YSG 逸仙 2,571 -14 2Q2023 16#17YSG1 Thank You