Intercos — Investor Presentation 2022

Nov 7, 2022

November 7TH 2022

9M22 RESULTS

Disclaimer

IMPORTANT NOTICE

This presentations is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This presentation might contain certain forward-looking statements that reflect the Company's management current views with respect to future events and financial and operational performance of the Company and its subsidiaries.

These forward-looking statements are based on Intercos current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Intercos to control or estimate. You are cautioned not to place undue reliance on the forward-looking statements contained herein which are made only as of the date of this presentation. Intercos does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

Any reference to past performance or trends or activities of Intercos shall not be taken as a representation or indication that such performance, trends or activities continue in the future.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy the Group's securities, nor shall the document form the basis of or be relied on in connection with any contract or investment decision relating thereto, or constitute a recommendation regarding the securities of Intercos.

Intercos securities referred to in this document have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Pietro Oriani, the Manager in charge of preparing the corporate accounting documents, declares that, pursuant to art. 154-bis, paragraph 2, of the Legislative Decree no.58 of February 24, 1998, the accounting information contained herein correspond to document results, books and accounting records.

Agenda

3Q22 Executive Summary

Highest Sales and EBITDA Quarter ever

9M22 and 3Q Results overview

9M22 and 3Q Results overview
€m	9M22	9M21		% vs 9M21
			Rep FX	c FX
Revenues	597,1	485,4	23%	18%
Adj. EBITDA	84,4	70,6	20%
Adj. EBITDA %	14,1%	14,5%
Net Debt	116,2	180,1
Net Debt/EBITDA	1,01x	1,89x
€m	3Q22	3Q21		% vs 3Q21
			Rep FX	c FX
Revenues	229,1	170,8	34%	29%
Adj. EBITDA	35,8	26,5	35%
Adj. EBITDA %	15,6%	15,5%

• 9M21. In 3Q22, sales growth accelerated materially vs. 3Q21, amounting to €229.1m (+34% at reported FX, and +29% at constant FX). 9M22 sales growth at constant FX was mainly driven by volumes, which further accelerated in Q3.
• 10Bps vs. 3Q21 and by 240Bps vs. 1H22.
• Leverage ratio (Net Debt on LTM EBITDA) reached the level of 1x, thanks to both 9M22 cash generation and continuous EBITDA growth.

9M22 and 3Q Revenues by BU's

	Skincare	13,7%		Make Up	16,2% Skincare	65,5%	Make Up
9M22
							of clients.
	Hair & Body	109,4	94,8	15%	(1%)
	€m	3Q22	3Q21	% vs 3Q21	% vs 3Q19
	Revenues	229,1	170,8	34%	32%
3Q22	Make Up	154,4	106,2	45%	35%
	Skincare	31,3	33,7	(7%)	43%
	Hair & Body	43,4	31,0	40%	15%

• Make-up 9M22 net sales continued to grow significantly (+32%YTD and +45% in 3Q). The growth came from all commercial areas and type of clients.
• Skincare growth in 9M22 was mainly driven by EMEA and US sales. Like in Q2, Q3 was impacted by the negative Chinese market performance. - Hair & Body net sales accelerated in the last
• quarter also as a consequence of some projects that were postponed from Q2 to Q3.

6

• All BU's are now above or in line with 2019

9M22 and 3Q Revenues by Region (Commercial Company)

		46,5%	EMEA		EMEA 47,4%
	37,1% Americas			35,1% Americas		Americas
						masstige segments.
9M22
	Asia	104,5	91,3	15%		mass segments.
	€m	3Q22	3Q21	% vs 3Q21
	Revenues	229,1	170,8	34%
3Q22	EMEA	106,4	82,6	29%
	Americas	84,9	57,6	47%
	Asia	37,8	30,5	24%		mainly thanks to make-up.

• EMEA growth was driven by Emerging Brands, especially in the prestige and masstige segments.
• Americas performance was supported by strong results from both Multinationals and Emerging Brands and in both prestige and mass segments.
• Asia 9M22 good results mainly came from Korea Make-up sales, which more than offset China's poor skincare performance. China overall 3Q22 performance improved vs. 1H22, reporting +4% sales vs. 3Q21, mainly thanks to make-up. - All Regions are now above 2019

9M22 and 3Q Revenues by Customer Type

	35,5%	48,9%	Multinationals	34,4%	49,3%	Multinationals
	Emerging Brands		Emerging Brands				Emerging Brands
9M22
	Retailers	97,3	90,5	8%			increase in sales.
	€m	3Q22	3Q21	% vs 3Q21
	Revenues	229,1	170,8	34%
3Q22	Multinationals	112,0	80,2	40%
	Emerging Brands	81,4	57,2	42%			main driver.
	Retailers	35,7	33,4	7%

• Multinationals sales grew mainly thanks to US and Korea. Both prestige and mass segments contributed to the increase in sales. - All Customer Clusters are now above
• Emerging Brands continued to be the main driver of growth. Sales increased in all regions and market segments.
• Retailers continued to grow high single digit, with the mass segment being the main driver.
• or in line with 2019

Outlook and Guidance

Topic	Update
New Guidance	We increase the FY22 guidance provided at the beginning of the year, thanks to the higher than expected 3Q results. We now expect FY22 Net Sales in a range between €810 and €820 million (+20%/22% vs. FY21 compared to the +10%/15% previously communicated) and an adjusted 4Q EBITDA with an incidence on Net Sales in line with 3Q22 (approx. 15.6%).
Current environment and next actions implemented	As expected, the supply chain disruption impact on our business started to improve in 3Q to the benefit of production feasibility. This trend is continuing also in 4Q. In FY22, Intercos increase in prices was lower compared to the one that characterized the end-market and the Group is currently reviewing pricings for FY23 based on expected inflation.
Medium-term future	We look to the long and medium term future with optimism. During the first 9 months of the current fiscal year we went through several unexpected factors, from the unavailability of raw materials, to the higher than expected inflation rates and the Chinese lockdowns. The Group has been able to well manage these challenges and to increase the guidance provided at the beginning of the year. We continue to believe that Intercos is well positioned in the Beauty industry. The Group has proven pricing power and it continues to benefit from a unique diversification of products, geographies, clients, and market segments. This will be a key asset especially in case of recession, which in the past never had a material negative impact on the Beauty market.

Series1 Series2

Outlook and Guidance - Strong firm order book continues, well above the previous years

Skincare Make Up

Definitions

For the purpose of providing information in line with the performance analysis and control parameters of the Group, non-IFRS alternative performance measures are used by management to provide information for a better assessment of the results of operations and the financial position of the Group as described below. Such performance measures should not be interpreted as a substitute for the conventional performance measures established by IFRS. The details of the content of the alternative performance measures not arrived at directly from the financial statements are defined as follows: • EBITDA: is defined as the sum of profit for the year plus income taxes, financial income and expenses and the effects of the valuation of

• investments using the equity method net of equity investments held for financial investment purposes and amortization, depreciation and writedowns.
• Adjusted EBITDA: is given by EBITDA less items of a non-recurring nature, that is, by particularly significant events that are not in the ordinary course of business or that have no effect on cash flows and/or changes in equity.
• Adjusted Net income: is given by Net income less items of a non-recurring nature, that is, by particularly significant events that are not in the ordinary course of business or that have no effect on cash flows and/or changes in equity net of the related tax impacts.
• Net indebtedness (cash) or net financial position/net debt: is given by the sum of current and non-current financial payables net of current and non-current financial receivables, including cash and cash equivalents.
• Order-in-take: indicates the aggregate of legally placed and processed orders by a company during the reporting period.
• Order Book: is the order backlog opened at any one given date.