Intercos

Investor Presentation • Mar 4, 2025

Disclaimer

IMPORTANT NOTICE

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.

This presentations is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. 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. be relied on in connection with any contract or investment decision relating thereto or constitute a recommendation regarding the securities of Intercos. Stefano Zanelli, 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

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

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.

records.

FY24 Executive Summary

FY24 Executive Summary – FY progression

FY24 Executive Summary – 4Q24 & FY24 main kpi's

		FY24 Executive Summary –				4Q24 & FY24 main kpi's
	€m	4Q24	4Q23	% vs 4Q23
				Rep FX	c FX	Third quarter in a row
Q 4	Revenues	289.8	253.2	14.5%	14.5%	posting double digit
	Adj. EBITDA	40.1	35.2	14.1%		growth at both top line and EBITDA level.
	Adj. EBITDA %	13.9%	13.9%	(4Bps)
		FY24	FY23	% vs FY23
	€m			Rep FX	c FX
					8.2%
	Revenues	1,064.9	988.2	7.8%		terms of Revenues,
	Adj. EBITDA	143.3	137.5	4.3%

					% vs 4Q23
						Third quarter in a row
Q 4						posting double digit growth at both top line
						and EBITDA level.
	€m	FY24	FY23		% vs FY23
	Revenues		988.2	Rep FX	c FX
		1,064.9		7.8%	8.2%	terms of Revenues,
	Adj. EBITDA	143.3	137.5	4.3%
Y	Adj. EBITDA %	13.5%	13.9%	(45Bps)		2H24 Adj. EBITDA on
F	Adj. EBITDA on VAS %	17.5%	17.4%	13Bps		Value Added Sales growing by +90Bps vs.
	Adj. Net Income	56.7	56.5	0.4%		2H23
	Adj. Net Income %	5.3%	5.7%			Lowest leverage ratio
	Net Debt	97.7	100.2
	Net Debt/Adj. EBITDA	0.68x	0.73x

Third quarter in a row posting double digit growth at both top line and EBITDA level.

FY Group record in terms of Revenues, EBITDA, Net Income

2H24 Adj. EBITDA on Value Added Sales growing by +90Bps vs. 2H23

Lowest leverage ratio ever since listed

FY24 Financials – 4Q24 and FY24 Revenues by BU's

- Deodorants also performed well.

4Q24 FY24				4Q24 and FY24 Revenues by BU's
		FY23
Hair & Body Hair & Body 26,1% 28,7% 56,9% 58,2% Make Up Make Up 15,7% 14,4% Skincare Skincare	Hair & Body Skincare	23,4% 60,7% 15,9%	Make Up
Make-up reported 4Q24 revenues of €164.8m up by +13.4% vs. 4Q23. Sales growth was driven by		€m	4Q24	4Q23	% vs 4Q23
		Revenues	289.8	253.2	14%
performances in Asia and EMEA, both from Multinational companies and Emerging brands.				145.4	13%
to prestige clients showed significant expansion. As a consequence, FY24 net sales amounted to up by +3.4%. In the year, the Business Unit was the most affected by the cyberattack,	Q 4	Make Up	164.8
in 1Q24 a decline of -13.5%. However, the excellent performance in 2H24 allowed for a full		Skincare	41.9	47.9	(13%)
of the gap, closing the year with growth compared to FY23.		Hair & Body	83.1	59.9	39%
has shown a decline in 4Q24, closing at €41.9m (-€6m). This should be considered in light		€m	FY24	FY23	% vs FY23
strong growth reported in 4Q23 (+40.1% vs. 4Q22 – i.e. high comps). Looking at the FY Skincare closed another year with further growth, reaching €167.1m (+6.1% vs. FY23),		Revenues	1064.9	988.2	8%
thanks to Asian local brands and retailers, followed by Multinational companies in America.	Y F	Make Up	619.8	599.4	3%
strong Sales €619.8m, recording recovery Skincare the performance, mainly Hair & Body recorded revenues of €83.1m in 4Q24, up by +38.8% vs. 4Q23. The business unit		Skincare	167.1	157.5	6%
reported another year of strong expansion, closing the year with revenues of €278m, up by +20.2%. BU continued to take full benefit from the excellent performance of the fragrance market.		Hair & Body	278.0	231.3	20%

FY24 Financials – 4Q24 and FY24 Revenues by Region

-

Asia 17,3% 31,4% Americas	51,3% EMEA
			% vs 4Q23
			14%
EMEA	155.2	126.6	23%
Americas	77.9	76.5	2%
Asia	56.7	50.0	13%
			% vs FY23 8%
			10%
Americas	293.4	310.5	(6%)
			24%
Asia	212.0	170.5
	€m Revenues €m Revenues EMEA	4Q24 289.8 FY24 1064.9 559.5	4Q23 253.2 FY23 988.2 507.2

Y F

FY24 Financials – 4Q24 and FY24 Revenues by Customer Type

-

	Retailers 9,5% 49,0% 41,5% Emerging Brands	Multinationals
	€m	4Q24	4Q23	% vs 4Q23
Q 4	Revenues	289.8	253.2	14%
	Multinationals	121.8	113.7	7%
	Emerging Brands	144.9	113.4	28%
	Retailers	23.1	26.0	(11%)
	€m	FY24	FY23	% vs FY23
			988.2	8%
	Revenues	1064.9
Y F	Multinationals	479.3	484.6	(1%)
	Emerging Brands	508.3	409.8	24%

Y F

FY24 Financials – Results overview

- FY24 Net Sales exceeded one billion euros for the first time, reaching a record level of

-

FY24 Financials – Results overview
				Var. vs	% vs
FY24 Net Sales exceeded one billion euros for the first time, reaching a record level of	€m	FY24	FY23	FY23	FY23
€1,064.9m, up +7.8% compared to FY23 and +8.2% at constant exchange rates. This new record was achieved despite the challenging FY23 base (revenues grew by +20% at c.FX	Net Sales	1064.9	988.2	76.7	7.8%
FY22), the cyber-attack, and the market slowdown in 2H24. As previously mentioned,	Gross Margin	207.0	199.4	7.7	3.8%
the Group's performance in China was excellent, significantly overperforming the Beauty market in the region, Western beauty players performances and direct competitors.	Gross Margin %	19.4%	20.2%	(73Bps)
	Adj. EBITDA	143.3	137.5	5.9	4.3%
FY24 Adjusted EBITDA was equal to €143.3m (+4.3% vs. FY23). FY24 performance	Adj. EBITDA/Net Sales	13.5%	13.9%	(45Bps)
reflects the 1Q24 significant decrease following the cyber-attack (-€9m or -30.3%) and the last nine months of FY24 performance: in that period, EBITDA grew double digits,	Adj. EBITDA/Value Added Sales	17.5%	17.4%	+13Bps
increasing by +€14.9m (or +13.8%). The strong performance in the last three quarters of	EBITDA (*)	133.8	130.9	2.8	2.2%
FY24, was achieved despite less favourable market conditions and the increase in sales in	EBIT (*)	84.1	85.5	(1.4)	(1.6%)
"Full-Service" (i.e. containing pack invoicing), which inevitably diluted the Group's profitability. FY24 Adj. EBITDA on net sales stood at 13.5%, down 45Bps compared to	PBT (*)	74.0	72.4	1.6	2.3%
FY23. Adj. EBITDA on value-added sales (sales net of packaging costs) showed a strong	Net Income (*)	48.8	52.4	(3.7)	(7.0%)
recovery in 2H24 (+90Bps), reaching in the year 17.5%, up +13Bps vs. FY23, despite the production inefficiencies caused by the cyber-attack.	Adj. Net Income	56.7	56.5	0.2	0.4%
	Adj. Net Income %	5.3%	5.7%	(39Bps)
FY24 Adjusted Net income stood at €56.7m (+0.4% vs. FY23). Despite the increase in	(*) Includes non recurring items
adjusted EBITDA and lower net financial charges, which offset the increase in D&A, FY24 was impacted by the rise in tax rate. The Group's net result amounted to €48.8m, down				Var. vs
from FY23 mainly due to an increase in non-recurring expenses.	€m	31Dec24	31Dec23	31Dec23
	Net Debt	97.7	100.2	(2.5)
31Dec24 Net Debt amounted to €97.7m, down by €2.5m vs. LY. Leverage ratio (Net Debt on LTM Adj. EBITDA) was 0.68x. Net Debt excluding IFRS16 liability amounted to €55.1m,	Net Debt/Adj. EBITDA	0.68x	0.73x	(0.05x)

FY24 Financials – Adjusted EBITDA by BU

-

FY24 Financials – Cash Flow and Net Debt

-

Taxes (25.3) (20.0) (5.3) the increase recorded in 1H24. Chg in Equity & Others 1.5 (7.0) 8.5 FY24 cash flow before dividends improved by +€14.1m vs. LY, amounting to €20.5m. Cash Flow before Div. Dist. 20.5 6.4 14.1 Lower financial expenses and lower cash out coming from long term liabilities helped to Dividends Distribution (18.0) (16.0) (2.0) achieve such result. FY24 Net cash flow was positive and equal to €2.5m after €18m of Cash Flow post Div. Dist. 2.5 (9.6) 12.1 dividends distribution. 100.2 90.7 Net Debt Opening
• 31Dec24 Net Debt was thus equal to €97.7m, down by €2.5m compared to 31Dec23. This decrease, together with the growth in EBITDA, allowed the Group to further reduce 97.7 100.2 Net Debt Closing financial leverage, now equal to 0.68x (it was equal to 0.73x at 31Dec23). If we exclude Var. vs €m FY24 FY23 the accounting impact deriving from the IFRS16 accounting principle, the net financial FY23 position at 31Dec24 is equal to €55.1m, substantially in line with last year.

Outlook & Guidance

	Outlook & Guidance
Where we stand	We enter FY25 aware that the Chinese market as a whole has not yet shown signs of recovery, that the US market is struggling to regain momentum, and that Europe has progressively reduced its growth pace in the last part of 2024. In a market environment showing overall soft trends, we also see more uncertainties linked to geopolitical tensions, which are now including risks of trade wars that would put additional pressure in the short-term. However, Intercos has proven over the years its ability to deal with complex market conditions. Especially in the current context, we believe that the superiority of the innovation that we propose to clients in every region of the world represents a fundamental asset for Beauty players in order to defend or gain market shares across the globe. Moreover, the brand's search for more flexible supply chains plays in our favour: we are the only B2B player in the world to have 16 production plants located in all the main markets, from China to South Korea, from India to Brazil, from the US to Poland, from Switzerland to Italy. Our widespread presence represents a significant competitive advantage, especially in a context of protectionist policies, allowing us to propose the best and most efficient solutions for Beauty brands worldwide, not only compared to our direct competitors, but also compared to the supply chains of many of our customers. Intercos' diversification in terms of customers, market segments served, and product categories offered, allows the Group to grow even in important regions where markets have been declining, such as China in 2024. Moreover, Intercos central position in the Beauty industry, gives to the Group an in-depth knowledge of all the current and future customer trends in the different continents. We believe that this positioning is unique and that it is a fundamental asset for both the Group and its clients.
Expected FY25 market evolution and Guidance	Considering the above points, we currently expect FY25 Beauty market growth at approx. +4% and therefore slightly below recent historical trends. Our Group has always demonstrated its ability to grow above market levels, and we expect this to continue in FY25. As such, we expect sales to grow in a range between +5% and +7% vs. FY24.

Outlook & Guidance – Order entry and Order in-take

Total firm order-in-take by business unit excluding contract manufacturing (e.g. Hair & Body).

New record reached in Jan-Feb25 driven by material increase of

Total firm order book evolution by business unit excluding contract manufacturing business units (e.g. Hair & Body)

Robust Order Book, sustaining FY25 sales progression.

Make-up

P&L and Related Adjustments

€m	FY24	FY23	Var. vs FY23	% vs FY23
Net Sales COGS	1064.9 (857.9)	988.2 (788.8)	76.7 (69.0)	7.8% 8.8%
Industrial gross profit	207.0	199.4	7.7	3.8%
% on net sales	19.4%	20.2%
Research & Development and innovation costs	(40.4)	(38.0)	(2.4)	6.4%
Selling expenses	(29.6)	(29.4)	(0.2)	0.5%
General and administrative expenses Other operating income (expenses)	(51.8) (1.1)	(49.1) 2.7	(2.7) (3.7)	5.6% n.a.
Operating Profit (EBIT)	84.1	85.5	(1.4)	(1.6%)
% on net sales	7.9%	8.7%
D&A (***)	(49.6)	(45.4)	(4.2)	9.3%
EBITDA Adjustements (*)	133.8 9.6	130.9 6.5	2.8 3.0	2.2%
Adjusted EBITDA	143.3	137.5	5.9	4.3%
% on net sales	13.5%	13.9%	0.0
Financial income (expenses)	(10.1)	(13.1)	3.0	(23.1%)
Profit before taxes (EBT)	74.0	72.4	1.6	2.3% 26.5%
Income taxes Net income	(25.3) 48.8	(20.0) 52.4	(5.3) (3.7)	(7.0%)
Adjustments (**)	7.9	4.0	3.9
Adjusted Net income	56.7	56.5	0.2	0.4%
€m	FY24	FY23
	1.1	1.1
	2.3	0.0
	9.6	6.5
	0.0	(0.7)
				construction of the EBITDA
Management Long Term Incentive Plan One-off costs related to personnel (mainly layoff) Cyber Cost Consultancy & legal costs Write-Off Bad Debt Provision related to "The Body Shop" customer Sale of asset Adjustments () at EBITDA level Write-off tax asset & other tax assets realignment Tax impact arising from above adjustments Taxes related to prior year Adjustments (*) at Net Income level	(0.2) 7.6 2.1 (3.3) (2.7) 1.0 7.9	1.5 1.5 2.4 0.0 (1.8) 0.0 4.0			(***) All functional areas include amortization which are deducted for the

Management Long Term Incentive Plan	(0.2)	1.5
One-off costs related to personnel (mainly layoff)	1.1	1.1
Cyber Cost	2.3	0.0
Consultancy & legal costs	7.6	1.5
Adjustments (*) at EBITDA level	9.6	6.5
Write-off tax asset & other tax assets realignment	0.0	(0.7)
Tax impact arising from above adjustments	(2.7)	(1.8)
Taxes related to prior year	1.0	0.0

Balance Sheet and Cash Flow

			Var. vs
€m	31Dec24	31Dec23	31Dec23
Tangible Assets	248.5	239.0	9.6
Intangible Assets	63.2	56.2	7.0
Goodwill	133.7	134.0	(0.3)
Investments	1.5	1.5	0.0
Deferred tax assets	29.3	25.7	3.6
Other non-current Assets/Liab.	(11.8)	(10.9)	(0.9)
Non-current Assets	464.5	445.4	19.1
Inventory	193.3	168.5	24.8
Trade Receivables	160.6	167.7	(7.2)
Trade Payables	(202.2)	(183.5)	(18.7)
Other current Assets/Liab.	(39.5)	(48.3)	8.8
Net Working Capital	112.1	104.4	7.7
Capital Employed	576.6	549.8	26.8
Net Debt	97.7	100.2	(2.5)
Equity	478.9	449.5	29.3
€m	FY24	FY23	Var. vs FY23
Cash flows provided by (used in) operating activities	99.4	103.1	(3.7)
Cash flows provided by (used in) investing activities	(61.4)	(53.7)	(7.7)
Cash flows provided by (used in) financing activities	15.8	(61.5)	77.4
Net increase (decrease) in cash and cash equivalents	53.8	(12.1)	65.9
Dividends distribution	(18.0)	(16.0)	(2.0)
Cash and cash equivalents, at beginning of the year	152.8	183.2	(30.4)

Deferred tax assets	29.3	25.7	3.6
Trade Receivables	160.6	167.7	(7.2)
Trade Payables	(202.2)	(183.5)	(18.7)
Other current Assets/Liab.	(39.5)	(48.3)	8.8
Net Debt	97.7	100.2	(2.5)
Cash flows provided by (used in) financing activities	15.8	(61.5)	77.4
Net increase (decrease) in cash and cash equivalents	53.8	(12.1)	65.9
Dividends distribution	(18.0)	(16.0)	(2.0)
Cash and cash equivalents, at beginning of the year	152.8	183.2	(30.4)
Of which, change in exchange differences	(1.4)	2.3	(3.6)
Cash and cash equivalents, at end of the year	190.0	152.8	37.2
Net increase (decrease) in cash and cash equivalents	35.8	(28.1)	63.9

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: • c.FX: Constant exchange rates • 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 write-downs.
• 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. • VAS: Value Added Sales (Net Sales – cost of packaging)
• 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.