THG : FY 2022 Preliminary Results Presentation Presentation

P R E L I M I N A R Y F Y 2 0 2 2 R E S U LT S

18 April 2023

FY 2022 highlights and strategic progress

• Record sales of over £2.2 billion with growth broad-based across core divisions
• Significant investment in price strategy to support long-term customer retention, alongside new customer acquisition in established and emerging markets
• Lower level of profitability due to challenging macro-economic environment and significant cost inflation across major cost lines
• Free cash generation of c. £50 million in H2 2022[1]. New £156 million term loan further strengthened the balance sheet with c. £640 million of cash and available facilities at year end
• Successful completion of the Group's divisional reorganisation which will drive profit recovery through greater divisional cost transparency, the removal of duplicated costs, procurement and payroll efficiencies
• THG Ingenuity gaining momentum following the pivot to focus on higher value and ultimately higher margin contracts

Preliminary FY 2022 Results

Notes: [1]Group free cash generation is calculated after working capital, capital expenditure, adjusting items, tax and financing (prior to debt capital repayments)

2

Decisive cost action undertaken supporting profit improvement

Strategic review

• Simplification of the Group leading to a strategic review of loss- making categories and territories

Payroll reducing as a % of revenue

• Labour inflation a headwind in 2022
• Group-wideheadcount reduction of c. 2,000 employees following elevated investment over recent years, achieved through managed attrition alongside continued recruitment of digital talent

Marketing cost efficiency through targeted investment in demand generation

• CPC inflation an industry-wide[1] headwind in 2022
• Free / Paid marketing mix continues to evolve favourably
• Ongoing shift to efficient channels, particularly apps and influencers

Adjusted EBITDA margin accretion throughout FY 2023 and beyond underpinned by input cost deflation, strategic review completion and annualised impact of cost efficiencies. The building blocks to free cash flow.

Preliminary FY 2022 Results

Notes: [1]Source: WordStream, December 2022

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P R E L I M I N A R Y F Y 2 0 2 2 R E S U LT S

Group Financial Review

4

FY 2022 revenue performance

Revenue by Division

	9%		8%
	54%
	7%	55%
7%

FY21FY22

30%	30%

Beauty

Nutrition

Ingenuity

Other

Revenue by Territory

18%	42%	17%

43%

FY21		20%	FY22
19%
21%			20%
UK	Europe	USA	RoW

			YoY[1]	2 Yr
£'m	FY 2022	FY 2021	Growth	Growth
THG Beauty[2]	1,235.0	1,181.5	+4.5%	+54.1%
THG Nutrition	675.1	659.5	+2.4%	+20.1%
THG Ingenuity[3]	159.6	146.3	+9.1%	+78.9%
Core divisional revenue	2,069.7	1,987.3	+4.1%	+42.5%
Other (continuing)	50.9	46.1	+10.5%	+58.6%
Other (discontinued)[4]	118.7	146.5	(19.0)%	(7.8)%
Group revenue	2,239.2	2,179.9	+2.7%	+38.8%

• Revenue growth slowed with challenging macro-economic environment and normalisation post Covid-19
• All acquisitions annualised from August 2022

Preliminary FY 2022 Results

Notes: Above numbers and table subject to rounding. [1]]YoY defined as year-on-year statutory sales growth. [2]THG Beauty revenue restated to include Acheson & Acheson manufacturing. [3]THG

Ingenuity revenue restated to exclude Acheson & Acheson manufacturing and include Arrow films. [4]For the loss-making categories and territories within non-core divisions that have been shown5 separately within the 2022 table under the discontinued operations heading, the same adjustment has been included for 2021 result to show a comparative of continued operations year on year.