THG : FY 2021 Preliminary Results Presentation

PRELIMINARY FY 2021 RESULTS

21 April 2022

Strictly privileged & confidential

• • FY 2021 Highlights

• • Group Financial Review

• • Divisional Review

• • Q1 2022 Trading Update

Presented by:

• • Matthew Moulding (Chief Executive Officer)

• • John Gallemore (Group Chief Financial Officer)

• • Rachel Horsefield (CEO, THG Beauty)

• • Lucy Gorman (CEO, THG Nutrition)

• • Hannah Pym (MD, Ingenuity Commerce)

• • Adam Knappy (Chief Marketing Officer)

Preliminary FY 2021 Results

FY 2021 Highlights

• • Record financial performance with Group revenue of £2.2bn, +38.1% YoY. On a 2-year basis, sales growth of 95.1% across all business units

• • All divisions delivered organic growth against challenging comparatives

• • THG Beauty 2-year growth +138.1%, including a contribution from Dermstore, Bentley Laboratories, and Cult Beauty

• • THG Nutrition growth supported by enhanced in-house innovation capabilities through the acquisitions of Claremont, Berrymans and Brighter Foods

• • Strong Ingenuity Commerce revenue growth with 187 live websites (FY 2020: 89) from a growing client base across a range of verticals

• • Group gross margin 44.7%

• • Group adjusted EBITDA* of £161.3m

• • Net Cash of £44.4m at year end (excluding lease liabilities), with strong liquidity available through over £530m of cash and c.£170m undrawn revolving credit facility

Sales by division

£'m

FY 2021

FY 2020

YoY GrowthYoY Growth

CCY

2 Yr Growth

2 Yr Growth CCY

THG Beauty

THG Nutrition

THG Ingenuity

THG OnDemand

1,117.8

751.6

+48.7% +17.3% +41.5% +26.5% +31.3%

+51.8% +20.9% +43.2% +29.5% +28.0%

• +133.7% +138.1%

  659.5

  562.3

• +59.7% +63.3%

  194.3

  137.3

• +51.9% +56.5%

  128.1

  101.3

• +119.3% +122.1%

  Other

  80.2

  61.1

• +28.0% +25.5%

Group Revenue

2,179.9

1,613.6

+35.1%

+38.1%

+91.2%

+95.1%

Ingenuity Commerce Revenue

45.4

19.3

+135.2%

+135.2%

+512.3%

+512.3%

*Adjusted EBITDA is defined as operating profit before depreciation, amortisation and adjusted items.

Note: Above numbers and table subject to rounding. Any reference to revenue growth throughout this document is on a constant currency basis ("CCY") - removing fluctuations arising from translation of foreign exchange by restating prior year numbers at current year exchange rates.

Operational and Strategic Highlights

• • Scaled revenue and expanded the business model ahead of targets stated at the September 2020 IPO

• • Strong growth in customers with 16.4m active THG Beauty and THG Nutrition D2C customers, +95% vs FY 2019

• • Integration of 2021 acquisitions Dermstore, Bentley Labs, Cult Beauty and Brighter Foods all on track

• • Strategic relationships formed with leading social media, MarTech and automation partners

• • Launch of the Group's 2030 Sustainability strategy with a commitment to offset historical operational emissions

• • Well progressed through investment programme to build out 3.6 million sq. ft. of fulfilment and manufacturing capacity at key locations globally

• • Opened THG Ingenuity's landmark ICON technology campus at Manchester Airport

• • Appointment of Charles Allen, Lord Allen of Kensington as independent Non-Executive Chair, in addition to Dr Andreas Hansson to the Board

• • Recognised as one of the 'Best Companies' Top 25 Best Big Companies to Work for 2021

>250m	>830,000	+74%	>32,000	6.8m
Units manufactured in	Trees planted in 2021	Growth in units dispatched	"THG Society" influencer	App downloads since
THG facilities in 2021	through More Trees	2021 vs 2019	platform expansion	first brand launch

Building and scaling international brands

2016

2017

2018

Note: Above numbers and tables subject to rounding. Currency £m.

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