Annual General Meeting - Chair and CEO Addresses

only	Adore Beauty Group Limited
	ABN 78 636 138 988
	ASX ANNOUNCEMENT
use	12 November 2021
Annual General Meeting - Chair and CEO Addresses
	Adore Beauty Group Limited (ASX: ABY) (Adore Beauty or Company) attaches the Chair and CEO
	Addresses to be given at Adore Beauty's Annual General Meeting today which will be held online
	(virtually).
personal	This announcement was authorised by the Board of Directors.
For more information, please contact:
Tennealle O'Shannessy	Stephanie Carroll	Sue Cato
Chief Executive Officer	Chief Financial Officer	Media
[e-mail]	[e-mail]	[e-mail]
		Ends
	About Adore Beauty
	Launched in 2000 as Australia's first beauty focused e-commerce website with a vision to help
	customers feel more confident and fabulous every day by delivering an empowering and
	engaging beauty shopping experience personalised to their needs. Adore Beauty has evolved to
For	an integrated content, marketing and e-commerce retail platform that partners with a broad and
diverse portfolio of approximately 260 brands and 10,800 products.
Adore Beauty operates in Australia and New Zealand. For further information please visit

www.adorebeautygroup.com.au

Adore Beauty Group Limited

ABN 78 636 138 988

Level 1, 421 High Street, NORTHCOTE, VIC, 3070 , AUSTRALIA

e: [e-mail] | w: www.adorebeautygroup.com.au

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ADORE BEAUTY GROUP LIMITED

2021 Annual General Meeting

Chair and CEO Addresses

12 November 2021

Before I hand over to CEO Tennealle O'Shannessy to provide an update on the 2021 financial year, I would like to make a few comments as your Chair.

Before I begin, I would like to make a brief statement on recent changes to the Board and our ongoing commitment to good corporate governance.

Firstly, I would like to acknowledge the significant contribution of Justin Ryan, who retired from the Board last week.

A Director of Adore Beauty since 2019, Justin led the Board as Chair during a pivotal period of growth for the Company, including its successful IPO.

The Board has announced that it will commence the search for an additional independent non- executive director, which will support our transition to a majority independent Board.

We have identified the particular skill sets we believe will further strengthen the Board and I look forward to updating you on this process over the coming months.

Personally, I am honoured to be the Chair of Adore Beauty and look forward to leading the Board through its next growth phase and creating value for our shareholders over the long term.

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Adore Beauty has had an exceptional first year as a listed company. We successfully listed on the ASX, outperformed all key customer metrics, and delivered record revenue and profitability. And we did so during unprecedented operating conditions.

As Australia's number one pure play online beauty retailer, Adore Beauty has transformed the online beauty shopping experience over the past two decades. Today, it is a destination for beauty discovery with an unparalleled product range encompassing approximately 260 brands and 10,800 products across skincare, haircare, makeup, wellness, and fragrance. Our integrated content, marketing and e-commerce platform is also a destination of choice for brands.

Adore Beauty has a large and growing addressable market, operating within Australia's $11.2 billion beauty and personal care category. Australia is early in the online adoption curve with online sales currently representing 11.4% of the total market, at $1.3 billion. While the market is growing at a CAGR of 3.8%, online growth is outpacing the broader category with a forecast CAGR of 26% between now and to 2024. Within this fast-growing segment, Adore has a 13% market share and a long history of growing faster than the market.

This growth is being supported by global macro trends, including the accelerated shift to digital and convenience channels and the impact of digitally native Millennials and Gen Z consumers entering the market. Globally, accelerated growth is also occurring in segments of the market where Adore is particularly strong, such as skincare - our largest category.

Adore Beauty has built a loyal and highly engaged customer base. Each year a customer remains on Adore's platform, they become more valuable, increasing both their order frequency and basket size. Key to this loyalty is a consistent, exceptional customer experience with fast, free delivery, same day 4pm dispatch, 90-day returns, and complimentary samples in every order.

This best-in-class customer experience delivered an active customer retention rate of 61 per cent in FY21 even with welcoming almost half a million new customers onto the platform over the year. In addition to increased revenue contribution from our existing customer base, new customers provide an opportunity to create more satisfied, loyal and repeat customers.

Over the past year, Adore has grown to be a household name with almost 60 per cent of Australian consumers recognising the brand. Increased brand awareness remains a key priority for the Company with a multi-channel marketing strategy designed to build trust, drive traffic and sales conversion, and increase awareness to a targeted 80 per cent.

Our trusted brand partners are integral to our success and growth, and in FY21 we continued to build out our range authority through onboarding new brands and extending brand exclusivity. As I mentioned earlier, Adore is unique in the beauty market. Our content strategy and growing customer community is a key differentiator, enabling us to become more than just another distribution channel. The Company's data-enriched integrated content and e-commerce platform supports product discovery and education at scale, so for brands we are also an effective marketing partner.

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Adore remains focused on cementing its online market leadership with a clear growth strategy and strategic priorities that capitalise on our competitive advantages and lay the foundations for long- term, sustainable growth. Led by an experienced and well-regarded management team, Adore Beauty is well placed to significantly increase active customers, revenues and market share over the coming years.

On behalf of the Board, I would like to thank our employees, brand partners and courier partners for their tremendous efforts in what has been a challenging year. Our strong FY21 operational performance would not have been possible without their dedication and hard work.

Thank you to you, our valuable shareholders, for embarking on this journey with us, and for your patience over the past year. I, like the rest of Adore Beauty's Board and senior leadership team, do not believe the current share price reflects the business' performance or strong growth trajectory. We remain optimistic about our future, and completely committed to continuing to execute against our strategy.

Lastly, I would like to acknowledge my fellow Board members, our senior management team, and the whole Adore team for their hard work and dedication over the past year.

I'll now hand over to Tennealle.

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Thanks, Marina

Good afternoon to our Australian investors, and hello to those joining us from around the globe.

Before I take you through our FY21 achievements, a quick recap on who we are.

While Adore Beauty is new to the ASX, we have been disrupting the traditional beauty shopping experience for more than two decades. Today, Adore Beauty is Australia's number one pureplay online beauty retailer. We are the market leader in the fastest growing beauty segment with a significant competitive advantage built around three key elements:

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