Revlon Adjusted EBITDA Margin Reconciliation
Results Delivered in a Challenging Environment
2020: COVID-19 Response
Resilience & Focus
Protect the health and safety of Revlon employees
Maintain progress on the Revlon 2020 Restructuring Program and longer-term transformation while addressing
near-term operating challenges and liquidity constraints
Adjusted
2020
Strategic
Priorities
Improve liquidity position
Capitalize on topline opportunities created by the shift in consumer preferences with respect to products and the
e-commerce channel
Implemented incremental safety measures at offices, manufacturing facilities, and distribution centers
COVID-19-Related Cost Reduction Actions:
Furloughed significant part of employee base
Action
Taken
Results
Achieved
Transitioned to reduced work week
Reduced director, executive, and employee compensation
Executed BrandCo financing transaction, which improved liquidity at closing by $584 million¹
Flexed manufacturing to meet incremental demand for hand sanitizer, hair color products, and beauty tools
All of the Company's manufacturing facilities and distribution centers around the world continue to operate
Achieved $153 million of cost reductions in 1H'20 on top of ~$95 million achieved in 2019
- ~$65 million was associated with the Revlon 2020 Restructuring Program ($115 million on an annualized basis)
- ~$75 million was associated with reduced brand support
~$13 million was associated with temporary COVID-19 employment expense reductions
Q2'20 Adj. EBITDA2 margin of 13.1%, up ~481bps y/y
E-commerce net sales accounted for $64 million, or 18%, of total reported net sales in Q2'20, up 58.2% from Q2'19
Within the Company's Portfolio Segment, the Creme of Nature, Cutex, and Sinful Colors brands and North
American beauty tools all experienced double-digit net sales growth year-over-year in Q2'20
1 $880 million BrandCo First Lien principal less fees and expenses and cancellation of 2019 U.S. Term Loan.
2 Adj. EBITDA margin is defined as Adj. EBITDA divided by Net Sales, and is a non-GAAP financial measure; see "Basis of Presentation" and reconciliations attached.
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