#1PERFECT DIARY |完美日记 Little ONDINE 小江 Pink Bear Pink Bear Fourth Quarter and Full Year 2022 Investor Presentation Yatsen Holding Limited DR.WU GALÉNIC EVE LOM PARIS ABBY'S CHOICE 完子 心选#2YSG 逸仙 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. 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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#3GALÉNIC PARIS GALENIC PARIS COUTURE SECRET D'EXCELLENCE LE SÉRUM ACTIF ACTIVE SERUM 70A1 YSG 逸仙 Fourth Quarter and Full Year 2022 Review#4Fourth Quarter 2022 Snapshot Total Net Revenues RMB 1.01Bn -34.2% YoY GAAP Net Loss Margin 5.5% Narrowed by 25.6 percentage points YOY Operating Cashflow RMB 106.6MM Positive for three consecutive quarters Gross Margin 71.1% +6.1 percentage points YoY Non-GAAP Net Income Margin 3.4% Compared with non-GAAP net loss margin of 21.9% for the prior year period Cash, Restricted Cash and Short-term Investments RMB 2.63Bn A 168 随便花 233 NEW 完美日记新年「花开]系列 New PERFECT DIARY 乐开花 PERFECT DIARY 29 正桃花 4 18 *#5Full Year 2022 Snapshot Total Net Revenues RMB 3.71Bn -36.5% YoY GAAP Net Loss Margin 22.2% Narrowed by 4.3 percentage points YoY Operating Cashflow RMB 136.2MM Gross Margin 68.0% +1.2 percentage points YoY Non-GAAP Net Loss Margin 12.2% Narrowed by 4.6 percentage points YoY DR.WU Repairing 达尔肤三重修护精华液 TRIPLE ACTION REPAIR SERUM 30mL e 1 fl. oz. LO 5#6Industry Backdrop in 2022 6.7% 7.0% -3.5% Jan and Feb-22 -6.3% -11.1% -6.7% 8.1% 3.1% -11.0% 2.7% China Consumer Retail Sales YOY Growth² 5.4% 10.7% 2.5% -6.4% 3.9% -0.5% -3.1% -3.7% 8.2% -1.8% -22.3% Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 China Beauty¹ Retail Sales YOY Growth² -19.3% YSG 逸仙 China beauty retail sales declined by 3.2% YoY for FY2022 Beauty industry still struggled with macro headwinds Consumer sentiment remained weak overall Note: 1 Beauty includes color cosmetics and skincare. 2 Based on the adjusted data published by China National Bureau of Statistics ("CNBS"); CNBS combined January and February data due to their reporting conventions. 6#7Our Strategic Transformation on Track Higher Net Revenues from Skincare Brands¹ Total Net Revenues from Skincare Brands² % 21.7% 46.9% Improved Gross Margin 65.0% 33.5% ||| 14.6% 4Q2021 4Q2022 FY2021 FY2022 4Q2021 4Q2022 FY2021 FY2022 HH Gross Margin % 71.1% 66.8% 68.0% Lower S&M Expenses % Selling & Marketing Expenses % 70.7% 53.2% 68.6% 62.9% 4Q2021 4Q2022 FY2021 FY2022 Net Loss (RMB MM) -475 Narrowed Net Loss Note: 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. -55 -821 -1,547 4Q2021 4Q2022 FY2021 FY2022 YSG 逸仙 urned Profitable under Non-GAAP Measures in Q4 Non-GAAP Net Income Margin % HH -14.7% 3.4% -21.9% 4Q2021 3Q2022 4Q2022 7#8Delivery of Key Business Initiatives Adjusting the Revenue Mix Support growth of Skincare Brands Stricter pricing and discount policies Fine tune color cosmetics channel mix and product mix Cost Cutting Closure of underperforming offline stores YSG 逸仙 Invest in R&D for robust new hero product pipeline Optimization of operating efficiencies 8#9Growing Skincare Brands¹ 4Q2022 Net Revenues from Skincare Brands¹ RMB 471.6MM +42.4% YoY SECRE FY2022 Net Revenues from Skincare Brands¹ NCE RMB 1.24Bn +45.2% YoY GATENIC Percentage of Total Net Revenues 4Q2021 4Q2022 21.7% FY2021 14.6% Note: ¹ Include net revenues from DR.WU (its mainland China business), Galénic, Eve Lom, Abby's Choice and other skincare brands. YSG 逸仙 46.9% Exceeded 30% for three consecutive quarters FY2022 33.5% 9#10Robust Clinical and Premium Skincare Brands Performance DR.WU DR.WU BC +73% YoY for 4Q2022 and +99% YoY for FY2022 in combined net revenues for DR.WU¹, Galénic, and Eve Lom DR.WU launched the Acne Clear Balance Serum during the fourth quarter. 无酸配方” CLINICAL SKINCARE 油症肌优选 Mainland China Business 祛防结合 长效维稳防反复 达尔肤净痘平衡精华液 DR.WU A NEW 重楼上新 BALANCING ESSENTIAL SERUM CATE. Ecran. 「法」 靴向法痘 TransHealer'+EGCG 舒惕应症刺猪,机联不进 “卓效催炼,祛除铁有限 A winning formula that combines sebum control with clinical acne prevention Note: 1 DR.WU's mainland China business GALÉNIC PARIS Galénic was featured on All Girls' Offer Season 2, a reality show hosted by Austin Li as a warmup to the Double 11 Shopping Festival, with its Anti-Oxygen No.1 VC Serum and Platinum Snow Algae serum. FOF COFFEE GALENIC All Girls' Offers libili Aumin O DE FER SER DE EVE LOM Eve Lom hosted its "Eternal Gold" themed Global Luxury Club in four international cities, while also sharing its offline thermal wax therapy experience with Chinese audiences at the Eve Lom Spa China Wellness Summit. #LOVEMEEVELOM EVE LOM EVELOM GIS Eve Lom Spa China Wellness Summit in October EVE LOM#11Adjustment to Offline Retail Footprint Eve Lom Perfect Diary 294 8 Note: 1 Mainland China stores only 286 2021/12/31 278 8 270 2022/3/31 # of Experience Stores¹ 234 6 228 2022/6/30 204 6. 198 2022/9/30 Closed underperforming stores due to COVID-19 impact 164 6 158 2022/12/31 YSG 逸仙 11#12Continuous Investment in R&D R&D Expenses as % of Net Revenues 1.3% R&D Investment FY2020 RMB 127MM in FY2022 2.4% FY2021 3.4% FY2022 RMB 335MM since FY2020 2022.02 2022.06 2022.09 2022.11 2022.11 2023.03 中山大学医学院 干细胞代谢及衰老研究平台 张宏波教授 · 细胞衰老及基于代谢的衰老延缓机制 · 揭示线粒体代谢调控干细胞命运的机制 * Science 等顶尖期刊发表研究论文27篇,篇 19IF: 23.2 R&D Milestones The nano-targeting technology that we developed along with Huazhong University of Science and Technology was applied to DR.WU's new product, Triple Action Repair Serum Our R&D center was CNAS certified We debuted at the IFSCC Congress with two R&D findings We joined hands with Sun Yat-sen University to release the latest results of the Chinese Skin Aging Research Platform 中山大学药学院 创新微生物产品开发平台 We debuted the latest innovations of Galénic and Eve Lom at the 5th China International Import Expo Ms. Jing Cheng was appointed our Chief Scientific Officer 张雄教授 ·商学院微生物与生化制药教研室主任 ·擅长于微生物学,益生菌制剂等 ・丰富的临床微生物检验及活菌药品研究经验 中山大学第一附属医院 再生医学研究平台 PARE- 祁少海副院长 • 中国医师协会烧伤科医师分会副会长 YSG 逸仙 · 擅长于烧伤,难念、复杂面的修复 陈教授 · 现任中山大学附第一医院副主任医师 ·擅长创面微环境,皮肤再生和抗衰机制 YSC YSO 12#13Strategic ESG Initiatives with Rating Upgraded to A YSG 逸仙 Published First ESG Report in May 2022 Rating Upgraded to Level A by MSCI in December 2022 YSG CONTENTS CONTENT 01/ABOUT THIS REPORT 02/CEO'S MESSAGE 05/KEY ESG PERFORMANCE IN 201 APPENDIX 74/Tables of Kay ESG Perfomance 75) GRI Indicator index (Core) 79/FEEDBACK 01 ABOUT US OF/Company Profe 08 Deepment Helory 09/Corporate Culture 10/Brand Structure 14/Corporate Honors (Eead) 04 RESPONSIBILITY FOR EMPLOYEES 45/Fat and Compliant Employment 48 Growth of Talents 52/Sguard Handy 53Care for Employees ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT 02 CORPORATE GOVERNANCE YATSEN HOLDING LIMITED 171Corporate Governance 19/Business Ethics 21/electual Property Protection 22/Sustainability Governance 05 ENVIRONMENTAL RESPONSIBILITY 621 57/Addressing Cimate Change 00 Green Products to Marage Product Carbon Footprint Green Procurement to Use Bustenable 53/ Green Packaging to Minimize Scrap of Packaging Material 2021 65/Oren Operation to carry on Business in an More Environment-friendly Maner 03 PRODUCT RESPONSIBILITY 26/Heathy and Safe Products 33/Quality Customer Service 37/Responsible Marketing 40/Information Security and Pracy 43/Supply Chain Management 06 SOCIAL INFLUENCE 68/Corporate Social Responsibility Strategy 09/CSR Practice The report's six chapters include Corporate Governance, Product Responsibility, Responsibility for Employees, Environmental Responsibility, and Social Influence. Rating upgraded to A, leading China's cosmetic brands MSCI ESG RATINGS CCC B BB BBB A Environment Pillar AA AAA Governance Pillar ESG Rating distribution in relation to industry peers Universe: MSCI ACWI Index constituents household & personal products, (31 companies) 0% OCC 0% LAGGARD ✓ Packaging ✓ Pollution & Waste B ✓ Corporate Behavior 16% BB 13% BBB AVERAGE 39% A Our Highlights under MSCI ESG Key Issues ✓ Product Carbon Footprint 19% AA 13% AAA LEADER Corporate Governance 13#14#LOVEMEEVELOM EVE LOM EVELOM HARRY CREME DE E LON EVE LOM ROSEWOOD, LONDON YSG 逸仙 Financial Review#15Revenue and Gross Margin (RMB MM) 1,528 4Q2021 Net Revenues -34.2% YoY 1,005 4Q2022 5,840 FY2021 -36.5% YoY 3,706 FY2022 Slow-down in Color Cosmetics Brands¹ partially offset by growth in Skincare Brands² +6.1 percentage points 65.0% 4Q2021 Gross Margin Note: ¹ Include net revenues from Perfect Diary, Little Ondine, Pink Bear and other color cosmetic brands. 2 Include net revenues from DR. WU (its mainland China business), Galénic, Eve Lom, Abby's Choice and other skincare brands. 71.1% 4Q2022 +1.2 percentage points 66.8% YSG 逸仙 FY2021 68.0% FY2022 Higher revenue contribution from Skincare Brands², stricter pricing and discount policies and cost optimization 15#16Operating Expenses -19.0 percentage points 97.8% 2.8% 16.3% 70.7% GAAP Operating Expenses % 8.1% 4Q2021 78.9% 2.5% 16.9% 53.2% 6.2% 4Q2022 R&D exp G&A exp -1.5 percentage points S&M exp 94.6% 2.4% 16.1% 68.6% 7.4% FY2021 93.0% 3.4% 19.4% 62.9% Fulfillment exp Lower S&M expenses % attributable to the closure of underperforming offline stores, reduction in marketing event-related expenses and higher efficiency of online marketing activities Higher G&A expenses % attributable to the deleveraging effect of lower total net revenues in 4Q2022 7.3% FY2022 YSG 逸仙 16#17Net Income (Loss) Margin Non-GAAP Net Income (Loss)¹ (RMB MM) Net loss Yo Y 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 (loss) income Yo Y 4Q21 (475) 131 10 1 (2) (335) 4Q22 (55) -88.4% 77 13 2 (2) 35 FY2021 (1,547) 530 42 1 (7) (981) FY2022 (821) -46.9% 341 49 (13) (8) (453) -53.8% Non-GAAP Net Income (Loss) Margin % to Net Revenues Net 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 (loss) income YoY 4Q21 -31.1% 8.6% 0.6% 0.1% -0.1% -21.9% 4Q22 -5.5% +25.6 percentage points 7.6% 1.3% 0.2% -0.2% 3.4% +25.4 percentage points FY2021 -26.5% 9.1% 0.7% 0.0% -0.1% -16.8% YSG 逸仙 FY2022 -22.2% +4.3 percentage points 9.2% 1.3% -0.3% -0.2% -12.2% +4.6 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. 17#18Operating Cashflow (RMB MM) 4,326 -466 1Q2021 4,106 -79 2Q2021 3,633 -225 3Q2021 3,138 -250 4Q2021 2,965 -104 1Q20221 3,063 112 2Q20221 2,601 22 Note: ¹ Including government subsidies of RMB14MM in 1Q2022, RMB32MM in 2Q2022, RMB46MM in 3Q2022, and RMB4M in 4Q2022. 2 As of the end of each quarter. 3Q20221 Balance of Cash, Restricted Cash and Short-term Investments² Generated positive cashflow from operating activities for three consecutive quarters YSG1LL 2,627 107 4Q20221 18#19YSG 逸仙 Thank You