#1PERFECT DIARY 完美日记 Little ONDINE 小奥汀 Pink Bear Q1 2022 Investor Presentation Yatsen Holding Limited DR.WU GALENIC PARIS EVE LOM ABBY'S CHOICE 完子心选#2Disclaimer 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/.#3irtes. PERFECT DIARY PERFECT DIARY DIARY PERFECT DIARY ANVIO SANTA PERFECT DIARY or you Discovery PERFECT DIARY YSG 逸仙 Q1 2022 Review 3#42022 Q1 Snapshot Total Net Revenues RMB 891.0MM -38.3% YoY Change Gross Margin 69.0% +0.4 percentage points YOY PERFECT DIARY ANTIC PERFECT DIARY HARY PERFECT DIARY CYS YSG1 PERFECT#5Challenging Industry Backdrop 6.7% 7.0% Jan and Feb-22 China General Consumer Retail Spending YoY Growth* Note: *Based on data from China National Bureau of Statistics ● ● ● Fragile consumer confidence Reduced outdoor activities / stores lockdown Supply chain and logistics disruptions Mar-22 -3.5% Impact from COVID-19 -6.3% China Beauty Retail Spending YoY Growth* Apr-22 -11.1% YSG 逸仙 -22.3%#62022: Continuing Our Evolutionary Journey Brand Equity + R&D YSG 逸仙 Sustainable Growth 9#7Our Brand-Focused Approach EVE LOM FOAMING CREAM CLEANSER WHERE RADIANCE BEGINS "Eve Lom Secret Garden" Global Relaunch Campaign THE BEAUTYINC AWARDS 国际美妆产业大赏 2021 PERFECT DIARY Makeup of the Year 年度彩妆新品 Winner of WWD's Makeup of the Year Award Perfect Diary Pearl Loose Powder YSG 逸仙 Little ONDINE 小奥汀 Little Ondine visual upgrade and branding relaunch 6#8New Product Launches Perfect Diary Origin Stone Eyeshadow GALÉNIC PARIS COUTURE SECRET D'EXCELLENCE Galénic Couture Secret D'Excellence Snow Algae Serum EVELOM FOAMING CREAM CLEANSER DEMAQUILLANT CREME MOUSSANT Eve Lom Foaming Cream Cleanser FOAMING CREAM CLEANSER WHERE RADIANCE BEGINS YSG 逸仙 DR.WU Repairing 达尔肤三重修护精华液 TRIPLE ACTION REPAIR SERUM 30ml e 1 fl. oz DR.WU Triple Active Repair Serum 7#9Skincare Brands GALÉNIC [N° 1] LOTION LOTION 0.8ml Q1 2022 Net Revenues RMB 182.7MM GALÉ AMIN C POWDER Q1 2022 vs. Q1 2021 +68.5% YoY Change BRIGHTENING RE VITAMINE C CLAIRCISSANTE N°1] [N°1] 0.8ml GALÉNIC [N° 1] % of Total Net Revenues Q1 2021 7.5% VE LOM YSGⓇILL MASQUE REPARATEUR Q1 2022 20.5% LOM. 8#10Key Business Initiatives Increase marketing efficiencies Maintain Douyin momentum Path to Profitability Drivers Optimize headcount and operating efficiencies Growth Drivers Expand 3rd party distribution of Yatsen brands YSG 逸仙 Optimize offline stores New product development 10#11EVE LO CLEANSER/CRÈME DÉMAQUILLANTE EVE LOM MOISTURE CREAM / CRÈME HYDRATANTE YSG 逸仙 Financial Review 11#12Revenue and Gross Margin (RMB MM) 1,444 1Q2021 Net Revenue -38.3% 891 1Q2022 (RMB MM) Gross Profit and Gross Margin 68.6% 992 1Q2021 -38.0% Gross Margin 69.0% 615 1Q2022 12#13GAAP Operating Expenses Fulfillment exp S&M exp 92.4% 11.9% 72.1% 6.4% 1Q2021 GAAP Operating Expenses 1.9% G&A exp 103.5% 23.4% 67.9% 8.3% 1Q2022 R&D exp 4.0% Operating exp as % of net revenue 13#14Net Loss and Net Loss Margins Non-GAAP Net Loss¹ (RMB MM) GAAP Net Loss² (234) ■1Q2021 (319) (336) ■4Q2021 (475) (156) 1Q2022 (291) GAAP Net Loss Margin Non-GAAP Net Loss Margin (16.2%) ■1Q2021 (22.1%) (22.0%) ■4Q2021 (31.1%) (17.5%) 1Q2022 (32.7%) Note: ¹ 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 2 GAAP Net Loss includes share-based compensation and amortization of intangible assets 14