Investor Presentation

January 2017
content disclaimer
Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, that reflect the Companys current views with respect to, among other things, its operations and financial performance, and relate to matters such as its industry, business
strategy, goals and expectations concerning its market position, future operations, margins profitability, capital expenditures, liquidity and capital resources and other financial and operating
information. The words may, could, should, estimate, project, forecast, intend, expect, anticipate, believe, target, plan and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are based on the Companys current expectations, estimates and projections relating to its financial condition, results of
operations, plans, objectives, future performance and business and involve risks and uncertainties which are, in many instances, beyond the Companys control, and which could cause actual
results to differ materially from those included in or contemplated or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to: the Companys
ability to effectively compete with other cosmetics companies; the Companys ability to successfully introduce new products; the loss of one or more of the Companys key retail customers or
if the general business performance of its key retail customers declines; the consequences if the Company fails to maintain the quality, performance and safety of its products; the Companys
ability to successfully implement its growth strategy; the Companys ability to grow its business at historic rates, or at all, and to manage growth effectively; any damage to the Companys
reputation or brand; the loss of, or damage to, the Companys warehouse and distribution center and/or the manufacturing facilities or distribution centers of its third-party manufacturers
and suppliers; the loss of the third-party suppliers, manufacturers, distributors and other vendors that the Company relies on to produce products or provide services that are consistent with
its standards or applicable regulatory requirements; the Companys ability to effectively manage its inventory; the Companys ability to manage its debt obligations; the Companys ability to
maintain sufficient liquidity to sustain its business and meet seasonal working capital requirements; the Companys ability to protect against service interruptions, data corruption, cyber-
based attacks or network security breaches, and to effectively resolve issues in a timely manner if they occur; the Companys ability to protect sensitive information of its consumers and
information technology systems against security breaches; the Companys ability to manage the political, legal and economic risks associated with its operations in China; and other risks and
uncertainties that may be described from time to time in the Companys reports and filings with the Securities and Exchange Commission, including the risks and uncertainties set forth in
Item 1A under the heading Risk factors in the Companys Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016 filed with the Securities and Exchange
Commission on November 14, 2016. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof and
disclaims any obligation to do so other than as may be required by law.

Non-GAAP Financial Measures

This presentation includes the non-GAAP measure Adjusted EBITDA. The Company presents non-GAAP measures because its management uses them as supplemental measures in assessing
its operating performance, and believes they are helpful to investors, securities analysts and other interested parties in evaluating the Companys performance. Non-GAAP measures are not
measurements of financial performance under GAAP and they should not be considered as alternatives to measures of performance derived in accordance with GAAP. In addition, these
alternative measures should not be construed as an inference that the Companys future results will be unaffected by unusual or non-recurring items. These alternative measures have
limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Companys results as reported under GAAP. The Companys
definitions and calculations of these alternative measures are not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation.
Adjusted EBITDA is reconciled to the most comparable GAAP measure in the appendix to this presentation. 2
introductions

TARANG P. AMIN
chairman & ceo
25+ years of CPG leadership

3
introductions

JOHN P. BAILEY
president & cfo
15+ years in finance

4
breadth & depth of talent across functions

leadership
team
CPG & cosmetics
experience

track record of
driving
results

70%
women

5
breadth & depth of talent across functions

leadership employee base

team
80%
CPG & cosmetics women
experience
71%
Millennials

track record of
54%
driving diverse
results
young, diverse,
makeup
70% enthusiasts - - the
women consumers we
serve

6
 our mission

we make
luxurious beauty accessible
for all women to
play beautifully

our values

delight our consumer

do the right thing
work together to win
execute with speed and quality
7
 beauty is one of the best consumer categories

large

growing 5%1

truly global

highly branded

high household penetration: 82%2

heaviest users drive the category

(1) U.S. color cosmetics retail sales CAGR, 2010 2015; Euromonitor; (2) Cosmetics use by U.S. women (2014), Calimesa Consulting Partners, LLC 8
beauty is changing as the face of the consumer does

meet Marianna
leverages digital and social channels

loves to experiment
makeup junkie and the source of
beauty advice

shops prestige and mass

experiences brands across channels

9
 e.l.f. is breaking beauty industry paradigms

traditional beauty
Traditional media focus Focus on social, digital and PR
brand
Celebrity spokespeople Consumers are our stars

Market research for insights Validation by elfcosmetics.com

innovation
Multi-step, market-research driven innovation 27-week average innovation cycle

Truly multi-channel:
channel Focus on one channel national retailers, e-commerce,
e.l.f. stores

offering Quality at a high price High quality at extraordinary value

10
e.l.f. is breaking beauty industry paradigms

traditional beauty

brand e.l.f. consumers are our stars

celebrity spokespeople

11
 e.l.f. is breaking beauty industry paradigms

traditional beauty

innovation

long innovation cycle 27-week average innovation cycle

12
e.l.f. is breaking beauty industry paradigms

traditional beauty

channel

focus on one channel truly multi-channel

13
e.l.f. is breaking beauty industry paradigms

traditional beauty

$6
offering $36

quality at a high price high quality at extraordinary value

14
 we are one of the fastest growing brands in cosmetics

net revenue ($M) $219

$191

$145
$121

$83
$69

$39
$29 $32
$8 $10
$1 $2

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM Q3
16

(1) Unaudited Company financials; (2) Company financials audited by McGladrey; (3) Company financials audited by Deloitte.
15
 we are one of the fastest growing brands in cosmetics

2015 sales growth for top 10 U.S. mass

cosmetics brands based on size1
43%

9%
6% 6% 5% 5% 5% 4%

(3%)
(21%)

(1) e.l.f. retail sales growth rate per Nielsen and e.l.f. internal data; other brands retail sales growth rates per Euromonitor. Excludes Sally Hansen, which is primarily a nail brand.
16
why e.l.f. wins

high-quality at
authentic brand extraordinary value strong following multi-channel brand

on-trend unique strong growth flexible, nimble

innovations validation and productivity supply chain team & culture

17
 e.l.f. is an authentic brand consumers love

18
Source: Aggregated word count from reviews on Amazon, Target.com, and ULTA.com
we offer high-quality cosmetics at extraordinary value

Blush Lip
Face Primer Eyeshadow Trio
Palette Exfoliator
$6 $6 $3 $4
compare
to:

smashbox smashbox fresh stila

Primer Blush Palette Sugar Lip Polish Eyeshadow Trio
$36 $35 $24 $28
19
 we attract the best consumers

young

e.l.f. is nearly 2x developed among

18- to 34-year-olds
47%
age1

27%
19% 20%
17% 17%17%
13%
10% 9%

13 - 17 18 - 24 25 - 34 35 - 45 45+
e.l.f. Cosmetics consumers

(1) Calimesa Consulting Partners, LLC; MetrixLab 2015. Industry data includes mass and prestige cosmetics. 20
 we attract the best consumers

diverse

e.l.f. has strong appeal among Hispanics,

African Americans and Asians
58%
46% ethnicity1
24% 29% 26%
15%

Caucasian Hispanic Afican American,

Asian or other
ethnicity
e.l.f. Cosmetics consumers

(1) Third-party study commissioned by our sponsor, TPG. Industry data includes mass and prestige cosmetics. 21
 we attract the best consumers

makeup
enthusiast

the e.l.f. consumer loves makeup, wears it

often, shops and engages with the category

product ratings & reviews

18x

category average e.l.f.

(1) BazaarVoice Quarterly Report March 2015 22

 and we know how to engage them

content
digital placement

multi-channel

influencer outreach
(1) e.l.f. consumer Instagram and YouTube posts and e.l.f. Pinterest tutorials
23
and we know how to engage them

superior digital
engagement

100,000+
ratings and
reviews

#1 mass cosmetics
brand in e-commerce

24
e.l.f. is a true multi-channel brand

e-commerce national retailers e.l.f. stores

#1 mass cosmetics brand outsized growth vs. category experiential marketing

25
we lead with innovation

our consumers love innovation

26
we lead with innovation

e.l.f. introduced over 50 first-to-mass cosmetics

27
 we test, learn, validate and respond through our direct channels

industry model

estimate
test qualify develop
develop & volume launch to
concept via product via marketing &
iterate via national
market market commercial-
product market retailers
research research ization plan
generate research final
ideas production

28
we test, learn, validate and respond through our direct channels

e.l.f. model
elfcosmetics.com

100k+
reviews
generate
ideas & +
product
real $s
e.l.f. stores

benefits of e.l.f. model

success in
fast tests real time responsive
market
29
 e.l.f. is one of the most productive brands in cosmetics

brand productivity per linear foot per week

at a national retailer1

e.l.f. Maybelline L'Oreal Revlon Cover Girl

sales per foot units per foot
(1) US Nielsen XAOC including C-Stores for a national retailer for 52 weeks ending 2/19/16 and linear feet per Retail Merchandising, Inc. 30
 e.l.f. is one of the most productive brands in cosmetics

% of e.l.f. sales incremental to select cosmetics

product categories upon introduction of e.l.f. at a
national retailer1
91%
81%

56% 60%
52%

e.l.f. eyes e.l.f. face e.l.f. lips e.l.f. tools e.l.f. brushes
(excluding brushes)
(1) Point of sale (POS) data from a national retailers internal data 31
we have a global, low-cost, quality-oriented supply chain

planning: Oakland, CA operations: China

distribution: Ontario, CA suppliers: nimble Shanghai network

32
we have a global, low-cost, quality-oriented supply chain

horizontal integration

hybrid model:
outsourced
with great
+ like-minded
suppliers > wholly owned or
wholly outsourced
control

cost advantage across products

33
we have a global, low-cost, quality-oriented supply chain

depth of expertise

55 12+ years expertise

e.l.f. team
members in + in sourcing, R&D,
logistics, quality over
China offices supply chain

high quality and output

34
we have a global, low-cost, quality-oriented supply chain

one team, one dream

highly
integrated + collaborative
environment
team

speed of execution
35
growth strategy
multiple areas of competitive advantage: innovation, value and engagement
build a great brand 60% 61%
43% 40%

1
6%

Maybelline CoverGirl Revlon L'Oreal

authentic brand consumers love young, diverse, makeup enthusiasts digital engagement engine major upside to drive awareness

lead innovation
>50 launches per year
idea to market in as
2 few as 20 weeks
active pipeline
300+ ideas

rapid innovation cycle first-to-mass > 50 items adjacency expansion elfcosmetics.com learning lab high output & sustainable

expand brand penetration 2015

existing
doors
3 new doors

#1 mass brand in e-commerce outsized growth vs. category balanced growth e.l.f. stores international expansion

drive world class operations horizontal integration | depth of expertise | one team, one dream
57%
57%
52%
planning: Oakland, CA operations: China suppliers: nimble network distribution: Ontario, CA
47%
4
2014 2015 2016 Q3 YTD
2016
top CPG and cosmetics talent advantaged supply chain with 12+ year sourcing advantage gross margin expansion 36
 1. build a great brand: awareness is a key lever
e.l.f. has strong repeat, but low awareness compared to
other leading brands
aided/unaided awareness1

100% 99% 99% 99%

60% 61% 58%

43% 40%

6%

Maybelline CoverGirl Revlon L'Oreal

(1) MetrixLab 2015
aided awareness unaided awareness 37
2. lead innovation: drives sustainable growth
three pillars of innovation
1 2 3
first-to-mass core expansion adjacencies

benefits
speed & high output sustainable
ideas to market in as few as 20 weeks leveraging direct dialog with consumers
over 50 launches per year active pipeline of 300+ ideas
38
3. expand brand penetration: significant whitespace

established opportunity1 early-stage opportunity2

7 years of strong comp growth 71% U.S. inline penetration

e.l.f. has <6% of the space only 8% of stores have

allocated to cosmetics more than 4 feet of e.l.f.

(1) Target POS data and RMS Space Audit 2016.

(2) Walmart POS data May 2016. 39
 3. expand brand penetration: significant whitespace

new opportunities balanced growth

2015 retail sales drivers1

existing
new
doors
doors

(1) IRI MULO 52 weeks ending 12/27/15 (CVS); Walmart, Target POS data for weeks 5-49 of 2015. Estimates only, but directionally accurate given Walmart, Target, and CVS make up vast majority of e.l.f. MULO sales 40
3. expand brand penetration: significant whitespace
additional opportunities to expand footprint

elfcosmetics.com e.l.f. stores international

41
4. drive world class operations: sweeten the mix
gross margin expansion

refining addressing
57%
57%
sub-optimal
assortment margins

52%
continuous
innovation launch of
innovation
47%

cost sourcing
savings efficiencies

2014 2015 2016

2016Q3
YTD 42
 track record of high growth
net revenue adjusted EBITDA
($M) ($M)1

+26% $191 $46

CAGR +27%
CAGR
$145
$121 $29 $28

24% 24%
19%

2013 2014 2015 2013 2014 2015

(1) See appendix for reconciliation of GAAP to non-GAAP financial measures 43
 we are in the early innings of growth

$110B
global
total skinopportunity
market care
$57B we aspire to
global color cosmetics
become a:
$16B
U.S. skin care
$14B
U.S. color cosmetics
$1B brand
$8B that is
U.S. mass color
cosmetics highly
<3% profitable
e.l.f.

(1) Euromonitor 2015, color cosmetics defined as face makeup, eye makeup, lip products, nail products and cosmetics sets/kits and excludes beauty tools and accessories such as brushes and applicators. 44
we have multiple levers available to reach our $1B aspiration

sweeten grow
the mix awareness

leverage increase
team basket size

DTC & intl deliver

runway innovation

customer develop
whitespace adjacencies
45
investment highlights

unique position in beauty

access to enthusiast consumer

significant whitespace
and growth
infrastructure to support
growth aspirations

talented team
46
47
annual adjusted EBITDA reconciliation
($M) 2013 2014 2015
Net income (loss) $16.6 ($2.9) $4.4
Interest expense 1.6 12.5 12.7
Provision (benefit) for income taxes 9.2 (0.1) 4.3
Depreciation and amortization 0.5 8.7 10.3
EBITDA $27.9 $18.2 $31.7
Transaction-related expenses 0.2 0.1 0.7
Costs related to restructuring of operations - 0.4 1.6
Initial public offering preparation costs - - 1.1
Stock-based compensation 0.0 0.3 0.5
Management fee 0.3 0.8 0.9
e.l.f. store pre-opening costs 0.1 0.2 0.1
Customer expansion costs - - 1.2
Other miscellaneous items - 1.1 0.5
(Gains) / losses on foreign currency contracts - 7.1 7.9
Adjusted EBITDA $28.5 $28.1 $46.2
% margin 24% 19% 24%

48