#1PERFECT DIARY 完美日记 Little ONDINE First Quarter 2023 Investor Presentation Yatsen Holding Limited Pink Bear DR.WU GALENIC EVE LOM ARIS 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. 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#3GALÉNIC PARIS GALÉNIC PARIS COUTURE SECRET D'EXCELLENCE LA CRÈME ACTIVE THE ACTIVE CREAM YSG1L First Quarter 2023 Review#4First Quarter 2023 Snapshot Total Net Revenues RMB 765.4MM -14.1% YoY GAAP Net Income Margin 6.6% Compared with net loss margin of 32.7% for the prior year period Gross Margin 74.3% +5.3 percentage points YoY Non-GAAP Net Loss Margin 3.4% Narrowed by 13.9 percentage points YoY Cash, Restricted Cash and Short-term Investments RMB 2.54Bn (TIKRI 8 030 ist 「「四「我没柿」 032 【高§「吃饭梅」#5Industry Recovery on the Way 6.7% 7.0% -3.5% -6.3% Jan and Feb-22 -11.1% Mar-22 -6.7% -22.3% Apr-22 8.1% 3.1% -11.0% May-22 2.7% Jun-22 China Consumer Retail Sales YOY Growth² 5.4% 0.7% Jul-22 2.5% -6.4% Aug-22 3.9% 0.5% -3.1% -3.7% mimp Sep-22 8.2% Oct-22 -1.8% Nov-22 -19.3% Dec-22 10.6% 3.8% 3.5% China Beauty¹ Retail Sales YOY Growth² 9.6% Jan and Feb-23 Mar-23 YSG1L Both China consumer retail sales and beauty products retail sales increased year-over-year Consumer sentiment improved Offline consumption recovered gradually following the lifting of pandemic restrictions Notes: 1 Beauty products include color cosmetics and skincare products. 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. 5#6Our Strategic Transformation on Track Higher Net Revenues from Skincare Brands¹ Total Net Revenues from Skincare Brands² (%) 20.5% 1Q2022 32.0% 1Q2023 Improved Gross Margin Gross Margin (%) 69.0% 1Q2022 74.3% 1Q2023 Lower S&M Expenses % Selling & Marketing Expenses (%) 67.9% 1Q2022 60.0% 1Q2023 Turned Profitable under GAAP Measures³ Net Income (RMB MM) -291 YSG1L 1Q2022 51 1Q2023 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. 3 The net income we recognized for the first quarter of 2023 was primarily attributable to a reversal of recognized share-based compensation expenses of RMB109.4 million due to the forfeiture of unvested awards granted to our former chief technology officer upon his resignation, and a decrease of RMB42.2 million in recognition of share-based compensation expenses using the graded-vesting method over the vesting term of the Company's awards. 6#7Delivery of Key Business Initiatives Finetuning the Revenue Mix Support growth of Skincare Brands More disciplined pricing and discount policies Finetune color cosmetics business model Cost Cutting Optimization of supply chain YSG 逸仙 Invest in R&D for robust new hero product pipeline Improvement of operating efficiencies 7#8Growing Skincare Brands¹ 1Q2023 Net Revenues from Skincare Brands¹ RMB 245.1MM +34.2% YoY GALENIC SECRET D'EXCELLENCE LA CRÈME ACTIVE GALENIC 1 20.5% Percentage of Total Net Revenues 1Q2022 YSG 逸仙 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. 1Q2023 32.0% Exceeded 30% for four consecutive quarters 8#9Robust Clinical and Premium Skincare Brands Performance DR.WU CLINICAL SKINCARE Mainland China Business DR.WU launched the DR.WU Acne Research Fund and established the DR.WU Expert Committee. DR.WU 达尔肤痤疮研究基金启动仪式 JUSRW +59% 1Q2023 YoY growth in combined net revenues for DR.WU¹, Galénic, and Eve Lom DR.WU Acne Research Fund launching ceremony Note: 1 DR.WU's mainland China business GALÉNIC PARIS Galénic hosted a brand event in France, attended by international fashion and beauty KOLs, to explore together the legendary benefits of the brand's platinum snow algae series. GALÉNIC GALENIC GALENIC Ma GALENIC Galénic brand event at the L'Arboisie Hotel in Megève, France EVE LOM Eve Lom introduced its Radiance Face Oil and hosted a luxurious product launch event at SKP in Beijing and Xi'an and Beijing DT51. EVELOM Mo EVELOIA Eve Lom Radiance Face Oil product launch EVE LOM#10Offline Retail Footprint Perfect Diary Eve Lom 294 8 286 2021/12/31 Note: 1 Mainland China stores only We completed most of our adjustments in our offline footprint during 2022. 278 8 270 # of Experience Stores¹ 2022/3/31 234 6 228 2022/6/30 204 6 198 2022/9/30 164 6 158 2022/12/31 57 157 150 2023/3/31 YSG1L 10#11EVE LOM EVELON EVELOM EVELOM VELOM EVE LOM YSG1LL Financial Review#12Revenue and Gross Margin (RMB MM) 891 1Q2022 Net Revenues -14.1% YoY 765 1Q2023 Slow-down in Color Cosmetics Brands¹ partially offset by growth in Skincare Brands² +5.3 percentage points YoY 69.0% Gross Margin 1Q2022 74.3% 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. 1Q2023 YSG1LL Higher revenue contribution from Skincare Brands², more disciplined pricing and discount policies and cost optimization 12#13Operating Expenses GAAP Operating Expenses % 103.5% 4.0% 23.4% 67.9% 8.3% 1Q2022 R&D exp -28.3 percentage points YoY 75.2% 5.3% 3.2% 60.0% 6.8% 1Q2023 G&A exp S&M exp Fulfillment exp YSG1LL Lower G&A expenses % attributable to a reversal of recognized share-based compensation expenses and a decrease in recognition of share-based compensation expenses using the graded-vesting method over the vesting term of the Company's awards¹ Lower S&M expenses % attributable to the closure of underperforming offline stores and a reduction in share-based compensation related to the decrease in selling and marketing headcount Note: ¹A reversal of recognized share-based compensation expenses of RMB109.4 million due to the forfeiture of unvested awards granted to our former chief technology officer upon his resignation, and a decrease of RMB42.2 million in recognition of share-based compensation expenses using the graded-vesting method over the vesting term of the Company's awards. 13#14Net 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 1Q22 (291) 126 12 2 (2) (154) 1Q23 51 N/A (67) 12 (19) (2) (26) -83.2% (%) 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 1Q22 (32.7%) 14.1% 1.4% 0.2% (0.2%) (17.2%) YSG1L 1Q23 6.6% +39.3 percentage points (8.8%) 1.6% (2.5%) (0.3%) (3.4%) + 13.9 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. 14#15Operating Cashflow (RMB MM) 4,326 -466 1Q2021 4,106 Note: 1 As of the end of each quarter. -79 2Q2021 3,633 -225 3Q2021 3,138 -250 4Q2021 2,965 -104 1Q2022 3,063 112 2Q2022 2,601 22 3Q2022 2,627 107 4Q2022 Balance of Cash, Restricted Cash and Short-term Investments¹ YSG1LL 2,536 -20 1Q2023 15#16YSG 逸仙 Thank You