Intercos — Investor Presentation 2022

Mar 23, 2022

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 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

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.

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

2021 Executive Summary

Net Sales	Adj. EBITDA	Adj. Net income
€673.7m +11.1% Rep FX +11.8% c.FX	€101.1m 15.0% on Net Sales +16.3% +68Bps EBITDA on net sales	€41.2m +57.7%
Cash Flow	Net Debt	ESG Rating
before IPO proceeds €29.8m	€126.6m 1.25x Net Debt to EBITDA ratio	Platinum medal awarded by EcoVadis
+€41.4m() () in FY20 Cash Flow was affected by the acquisition of Intercos Korea	-€67.3m -0.98x	Intercos within the Top 1% of companies in its sector
Delivered	strong sales and earning	growth
		4

2021 and Q4 results overview

	2021 and Q4 results overview
€m	2021	2020	2020 LfL	% vs 2020			% vs 2020 LfL
Revenues	673,7	606,5	637,3	Rep FX +11,1%	c FX +11,8%	Rep FX +5,7%	c FX +6,4%
Adj. EBITDA	101,1	87,0	88,4	+16,3%		+14,5%
Adj. EBITDA %	15,0%	14,3%	13,9%
Adj. Net Income	41,2	26,1	25,3	+57,7%		+62,7%
Adj. Net Income %	6,1%	4,3%	3,9%
Net Debt	126,6	194,0	194,0
Net Debt/EBITDA	1,25x	2,23x	2,19x
€m	Q4 2021		Q4 2020		% vs 2020
				Rep FX		c FX
Revenues	188,3		167,9	+12,2%		+10,4%
Adj. EBITDA	30,6		24,7	+24,0%
Adj. EBITDA %	16,4%		14,7%

Revenues	188,3	167,9
Adj. EBITDA	30,6	24,7	+24,0%
Adj. EBITDA %	16,4%	14,7%

2021 Financials - Key Financials

• Net sales amounted to €673.7m, up by +11.1% compared to 2020 (+11.8% at constant FX rates and +5.7% on a like-for-like basis). The increase characterized all the geographical areas in which the Group operates and all customer types, with a strong increase in sales of skincare and make-up. Once excluding hand sanitizer, also the Hair&Body Business Unit posted a solid growth vs. 2020 (+8.1%).
• Adjusted EBITDA of €101.1m, up €14.2m (+16.3% vs. 2020 or +14.5% on a like-for-like basis) thanks to the increase in sales and a gradual recovery in profitability during the year. EBITDA margin reached 15.0%, an improvement of +68 bps vs. 2020.
• Adjusted Net Income was equal to €41.2m, +€15.1m (or +57.7%) compared to 2020. The Board of Directors has proposed, in line with the Group's Dividend Policy, to do not will be distributed in 2023 based on the results as of 31Dec22 .
• Net Debt amounted to €126.6m, down by €67.3m compared to the previous year. Despite a year still affected by the pandemic, cash generation, excluding the net proceeds from the IPO, was positive and amounted to €29.8m. Net Debt on Adjusted EBITDA ratio is now equal to 1.25x.

2021 Financials - Key Financials
Net sales amounted to €673.7m, up by +11.1% compared to	€m	2021	2020	Var. vs	% vs
2020 (+11.8% at constant FX rates and +5.7% on a like-for-like basis). The increase characterized all the geographical areas in	Net Sales	673,7	606,5	2020 +67,2	2020 +11,1%
which the Group operates and all customer types, with a strong increase in sales of skincare and make-up. Once excluding hand sanitizer, also the Hair&Body Business Unit posted a solid growth vs. 2020 (+8.1%).	Gross Margin	144,9	124,4	+20,5	+16,5%
	Gross Margin %	21,5%	20,5%	+100Bps
	Adj. EBITDA	101,1	87,0	+14,2	+16,3%
Adjusted EBITDA of €101.1m, up €14.2m (+16.3% vs. 2020 or +14.5% on a like-for-like basis) thanks to the increase in sales	Adj. EBITDA %	15,0%	14,3%	+68Bps
and a gradual recovery in profitability during the year. EBITDA	EBITDA (*)	82,9	84,5	(1,5)	(1,8%)
margin reached 15.0%, an improvement of +68 bps vs. 2020.	(*) EBIT	42,8	45,6	(2,7)	(6%)
Adjusted Net Income was equal to €41.2m, +€15.1m (or +57.7%) compared to 2020. The Board of Directors has	(*) PBT	39,7	45,8	(6,2)	(13,5%)
proposed, in line with the Group's Dividend Policy, to do not	Net Income (*)	26,5	37,8	(11,2)	(29,7%)
distribute dividends with reference to the FY21 - first dividends will be distributed in 2023 based on the results as of 31Dec22 .	Adj. Net Income	41,2	26,1	+15,1	+57,7%
Net Debt amounted to €126.6m, down by €67.3m compared to the previous year. Despite a year still affected by the	Adj. Net Income %	6,1%	4,3%	+181Bps
pandemic, cash generation, excluding the net proceeds from the IPO, was positive and amounted to €29.8m. Net Debt on	Net Debt	126,6	194,0	(67,3)
Adjusted EBITDA ratio is now equal to 1.25x.	Net Debt/Adj. EBITDA	1,25x	2,23x	(0,98x)

Q4 2021 Hair & Body 17,3% 18,7% Skincare 64,1%	Make Up	Hair & Body 19,1% Skincare	2021 18,9% 62,0% Make Up	Hair & Body 16,8% Skincare	2020 22,1% 61,2% Make Up
Make Up	417,5	371,1	382,7	+12,5%	+9,1%
Skincare	128,9	101,6	120,8	+26,9%	+6,7%
Hair & Body	127,3	133,8	133,8	(4,9%)	(4,9%)
€m	Q4 2021		Q4 2020		% vs 2020
Revenues	188,3		167,9		+12,2%
Make Up	120,6		105,1		+14,8%
Skincare	35,2		31,5		+11,8%
Hair & Body	32,5		31,4		+3,6%

Make Up	120,6		105,1	+14,8%
Skincare	35,2		31,5	+11,8%
Hair & Body	32,5		31,4	+3,6%

Q4 2021 Asia 20,9% 46,1% 33,0% Americas	EMEA	Asia 32,1% Americas	2021 19,4% EMEA 48,5%	Americas	2020 Asia 15,8% 53,7% EMEA 30,5%
EMEA	327,0	325,7	326,7	+0,4%	+0,1%
Americas	216,1	184,9	185,7	+16,9%	+16,4%
Asia	130,6	95,9	124,9	+36,2%	+4,5%
€m	Q4 2021		Q4 2020		% vs 2020
Revenues	188,3		167,9		+12,2%
EMEA	86,9		81,5		+6,6%
Americas	62,2		52,4		+18,6%
Asia	39,3		34,0		+15,7%

EMEA	86,9		81,5	+6,6%
Americas	62,2		52,4	+18,6%
Asia	39,3		34,0	+15,7%
s	Breakdown based on the location of the headquarters of the client to which the invoice was issued			8

Q4 2021 Retailers 20,0% 48,9% 31,0% Emerging Brands	Multinationals	Retailers 31,2% Emerging Brands	2021 19,0% Multinationals 49,8%	Retailers 31,3% Emerging Brands	2020 19,4% Multinationals 49,3%
Multinationals	335,3	299,2	311,5	+12,0%	7,6%
Emerging Brands	210,3	189,6	203,7	+10,9%	3,2%
Retailers	128,2	117,7	122,1	+8.9%	5,0%
€m	Q4 2021		Q4 2020		% vs 2020
Revenues	188,3		167,9		+12,2%
Multinationals	92,2		79,8		+15,4%
Emerging Brands	58,5		54,0		+8,3%
Retailers	37,7		34,1		+10,6%

Multinationals	92,2	79,8	+15,4%
Emerging Brands	58,5	54,0	+8,3%
Retailers	37,7	34,1	+10,6%
			9

therefore low production volumes due to the pandemic, all the following three quarters reported a double-digit growth in terms of EBITDA.

to pre-pandemic levels (16% in the fourth quarter of the year).

Skincare EBITDA grew by +€12.2m to €19.9m, thanks to strong sales and profitability growth, which increased from 7.6% to 15.4%. The solid growth in EBITDA reflects (i) the excellent sales performance, (ii) the streamlining of the Business Unit's operations, (iii) €2.2m contribution arising from the

exceptional 2020 sales of hand sanitizer, a product characterized by higher profitability compared to the BU average.

2021 Financials – Cash Flow & Net Debt

FY21 Cash Flow amounted to €67.3m, increasing by €78.9m compared to 2020. Excluding the net proceeds from the IPO, cash flow amounted to €29.8m, an increase of €41.4m compared to the previous year, which was affected by the acquisition of the Korean subsidiary.

FY21 Operating Cash Flow, although positive and amounting to €36.5m, was down by €16.0m compared to 2020 mainly due to anticipated purchases of raw materials in order to prevent possible slowdowns in sourcing, and an increase in receivables, following the increase in business volumes (i.e. stable DSO vs. 2020).

31Dec21 Net Debt amounted to €126.6m, down by €67.3m compared to that of 31Dec20. The growth achieved at the Adjusted EBITDA level together with the reduction in net debt, enabled the Group to significantly reduce the leverage ratio, which is now equal to 1.25x (-0.98x in the last twelve months). Net Debt includes €26.3m of liabilities arising from the application of IFRS16.

In 2021, the credit line guaranteed by SACE of €60m was repaid. (*) Refer to the cash impact only of the adjustments at EBITDA level.

€m	2021	2020	Var. vs 2020
Adjusted EBITDA	101.1	86.9	14.2
Adjustments (*)	(5.9)	(5.3)	(0.6)
Change in TWC	(19.5)	28.6	(48.2)
Other Chg, in WC	(0.1)	(16.3)	16.1
Capex	(39.1)	(41.5)	2.4
Operating Cash Flow	36.5	52.5	(16.0)
Changes L/T Assets & Liab.	5.9	(4.5)	10.4
Fin. Expenses	(3.7)	(11.4)	7.8
Taxes	(13.1)	(8.1)	(5.0)
IPO Proceeds (net)	37.5		37.5
M&A (**)	(2.4)	(45.4)	43.0
Chg in Equity & Others	6.6	5.5	1.1
Cash Flow	67.3	(11.5)	78.9
(**) In FY20 it includes €32.7m of additional Net Debt consolidated related to ICOS Korea
Net Debt Opening	194.0	182.5
Net Debt Closing	126.6	194.0
			11

Net Debt Opening	194.0	182.5
Net Debt Closing	126.6	194.0

Outlook and Guidance

• European Union. We have many Ukrainian employees working in our plant in Poland and our Group wants to express its closeness to their loved ones. We are currently putting in place a project that will provide solidarity funds and access to work for Ukrainian refugees in order to provide support to people fleeing the war, hoping that all this will end soon.
• Difficulties on the supply chain side continue to characterize the entire cosmetic sector. The increase in the prices of raw materials, transports and packaging experienced in the second part of 2021, are also affecting 2022. Also, the current geopolitical tensions have brought sharp increases of the energy costs and further limited the visibility on when inflationary dynamics will normalize. The Group is constantly monitoring the market trend in order to adopt the most suitable commercial policies to cope with the current context. Long term relationships with customers, high level of innovation in the products that we sell as well as our global presence are placing our Group in a more favourable position compared to our competitors.
• On 8th March 2022, in the year of Intercos' 50th birthday, the showroom reopened also physically, after two years of closure due to the pandemic. The new beauty trends of 2023 presented are already receiving great feedbacks from customers.
• Thanks to the constant focus on product innovation, products and customers diversification, the Group is continuing to achieve strong growth in orders intake and enjoys a record high Order Book.
• The Group expects FY22 net sales increasing in a range between 10 and 15%, also as a consequence of the complexity in supply chain that is causing longer

Outlook and Guidance- Firm order-in-take strong recovery, continuing the solid rebound

Make Up Skincare

Source: Company information IK included in all data shown above

Appendix

P&L and related adjustments

€/mln	2021	2020	Delta Var.%
Net Sales	673,7	606,5	67,2 11,1%
COGS	(528,8)	(482,1)	(46,7) 9,7%
Industrial gross profit	144,9	124,4	20,5 16,5%
% on net sales	21,5%	20,5%
Research & Development and innovation costs Selling expenses	(31,9)	(30,9)	(1,0) 3,3% (11,1%)
General and administrative expenses	(22,6) (36,1)	(25,4) (28,8)	2,8 (7,3) 25,2%
Other operating income (expenses)	(11,6)	6,5	(18,1) (278,3%)
Result from investments accounted for using the equity method (operating)	0,0	(0,2)	0,2 (100,0%)
Operating Profit (EBIT)	42,8	45,6	(2,7) (6,0%)
% on net sales	6,4%	7,5%
D&A	(40,1)	(38,9)	(1,2) 3,1%
EBITDA	82,9	84,5	(1,5) (1,8%)
Adjustements (*)	(18,2)	(2,5)	(15,7)
Adjusted EBITDA	101,1	86,9	14,2 16,3%
% on net sales	15,0%	14,3%
Financial income (expenses)	(3,7)	(11,4)	7,8 (67,9%)
Incomes from investments	0,5	11,7	(11,2) (95,8%)
Profit before taxes (EBT)	39,7	45,8	(6,2) (13,5%) 62,8%
Income taxes Net income	(13,1) 26,5	(8,1) 37,8	(5,1) (11,2) (29,7%)
Adjustments (*)	(14,6)	11,7	(26,3)
Adjusted Net income	41,2	26,1	15,1 57,7%
€/mln	2021	2020
IPO costs	(5,6)	(2,8)
Costs related to M&A transactions	(0,4)	(2,3)
Management Long Term Incentive Plan	(5,5)	2,8
One-off costs related to re-organizations (mainly personal costs)	(6,7)	(0,2)
Adjustments (*) at EBITDA level	(18,2)	(2,5)
Accrual regarding previous years taxes Incomes/(costs) from Equity investments	(5,1) 0,0	0,0 13,5
Tax impact mainly arising from above adjustments and assets realignment	8,7	0,7
Adjustments (*) at Net Income level	(14,6)	11,7

€/mln	2021	2020
IPO costs	(5,6)	(2,8)
Costs related to M&A transactions	(0,4)	(2,3)
Management Long Term Incentive Plan	(5,5)	2,8
One-off costs related to re-organizations (mainly personal costs)	(6,7)	(0,2)
Adjustments (*) at EBITDA level	(18,2)	(2,5)
Accrual regarding previous years taxes	(5,1)	0,0
Incomes/(costs) from Equity investments	0.0	13,5
Tax impact mainly arising from above adjustments and assets realignment	8,7	0,7
Adjustments (*) at Net Income level	(14, 6)	11,7

Balance Sheet and Cash Flow

€/mln	2021	2020	Delta
Tangible Assets	210,6	209,9	0,7
Intangible Assets	43,3	38,0	5,3
Goodwill	132,1	131,2	0,9
Investments	2,1	2,0	0,0
Deferred tax assets	20,5	16,6	3,9
Other non-current Assets/Liab.	(15,0)	(5,3)	(9,8)
Non-current Assets	393,5	392,3	1,1
Inventory	142,9	110,0	32,8
Trade Receivables	120,1	102,8	17,4
Trade Payables	(149,1)	(118,4)	(30,6)
Other current Assets/Liab.	(23,0)	(23,0)	0,1
Net Working Capital	91,0	71,4	19,6
Capital Employed	484,5	463,7	20,7
Net Debt	126,6	194,0	(67,3)
Equity	357,8	269,7	88,1
€/mln	2021	2020	Delta
Cash flows provided by (used in) operating activities	62,1	91,5	(29,4)
Cash flows provided by (used in) investing activities	(39,9)	(55,3)	15,4
Cash flows provided by (used in) financing activities	(46,7)	100,1	(146,8)
Net increase (decrease) in cash and cash equivalents	(24,6)	136,2	(160,8)
Cash and cash equivalents, at beginning of the year	225,4	92,2	133,2
Of which, change in exchange differences	(6,1)	3,0	(9,1)
Cash and cash equivalents, at end of the year	207,0	225,4	(18,4)
Net increase (decrease) in cash and cash equivalents	(24,6)	136,2	(160,8)

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 • LfL (like-for-like) means 2020 financials including 12 months Intercos Korea contribution. • Net indebtedness (cash) or net financial position: is given by the sum of current and non-current financial payables net of current and non-current

• 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 and related tax impact adjustments.
• 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.