Slides
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natura Earnings Presentation 2nd Quarter August 11 , 2026
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EARNINGS | Q2 - 26 Disclaimer Note As of Q2-25, Avon International and Avon Central America and Dominican Republic (CARD) in Latin America were reclassified as assets held for sale. In 2024, Avon International and CARD were accounted for as discontinued operations. This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of Natura’s management. The words “anticipate,” “wishes,” “expects,” “estimates,” “intends,” “forecasts,” “plans,” “predicts,” “projects,” “targets,” and similar terms are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include, but are not limited to, the impact of competitive products and pricing, market acceptance of products, product transitions by the Company and its competitors, regulatory approval, currency fluctuations, production and supply difficulties, changes in product sales mix, and other risks. This presentation may also include pro forma and adjusted information prepared by the Company for informational and reference purposes only, which has not been audited. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future developments. ri.natura.com.br/en/
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3 Financial Highlights Key Highlights • Operating challenges and macro environment weighed on revenue, resulting in a consolidated -9.1% decline for the quarter • Revenue in Brazil impacted by product shortages, new commercial policies in D2C channels, and a temporary tax effect (ICMS-ST) • Hispanic accelerates performance, up +7.2% (in CC) driven by solid progress in Mexico and continued recovery in Argentina; Revenue ex-Argentina up +10.9% (in CC) • Efficiencies from the new operating model benefited G&A, contributing to margin expansion at Hispanic, while in Brazil, profitability was pressured by the temporary tax effect and selling expenses deleverage • Net income of BRL +35M (vs. BRL +446M in Q2-25) was primarily impacted by the financial result from the settlement of derivatives • The company generated positive cash flow of BRL 342M and saw a sequential reduction in net debt (BRL 3.9B), with a slight decline in leverage (2.06x) EARNINGS | Q2 - 26 3 Net Revenue BRL 5.2 bn Brazil EBITDA Margin 16.4% -200 bps YoY vs. Reported -370 bps YoY vs. Recurring Hispanic EBITDA Margin 7.6% +360 bps YoY vs. Reported +220 bps YoY vs. Recurring Group EBITDA Margin 12.0% +40 bps YoY vs. Reported -200 bps YoY vs. Recurring Net income BRL +35 mn FCFF BRL +342 mn
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4 Operating Adjustments EARNINGS | Q2 - 26 Production Capacity and Logistics Commercial Planning Entry into new marketplaces “Minha Loja” Adoption Acceleration Franchise Model Migration New Retail Excellence Program Direct Sales Incentives and Rules Review Credit Management and Collections Commercial Regionalization Logistics Relationship Selling Online Retail Focus on high turnover categories Products Launch of new products Media Segmentation
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5 Quarter Results Silvia Vilas Boas CFO
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Net revenue (BRL million) 6 AVON | -22.5% YoY • Also impacted by logistics and channel challenges, along with tax effects • Brand relaunch impacted by operational challenges • Stable brand health metrics following improvement in 1Q-26 HOME & STYLE | -36.2% YoY • Impacted by stronger YoY comparison due to specific campaign in 2Q-25 NATURA | -14.5% YoY • Impacted by severe product shortages • Drop in consultants’ activity and productivity • Temporary tax mismatch Brazil | Net Revenue Brazil | -14.8% YoY EARNINGS | Q2 - 26
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Recurring EBITDA Margin Brazil (%) 7 Brazil | EBITDA Margin Brazil -370 bps YoY Tax Effect (-190 bps YoY) • Temporary increase in tax burden Gross Margin (-60 bps YoY; ex-ICMS-ST: +10 bps YoY) • Close to historical levels • Excluding ICMS-ST impact, it would have posted slight YoY increase SG&A1 (-140 bps YoY, ex- ICMS-ST) • Expenses down in nominal terms, but up as a % of revenue: - Selling: Higher NPL and logistics investments to mitigate service levels - G&A1 , down 14% YoY due to efficiencies from the new operating model Non-operating expenses (-50 bps YoY) • Severance expenses resulting from the reorganization (1) Includes “Other revenue/expenses”; excludes D&A and non-operating expenses EARNINGS | Q2 - 26
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Hispanic | Net Revenue 8 Hispanic | +7.2% YoY in CC and +10.9% YoY ex-ARG AVON | +4.7% YoY • ~12% growth ex-ARG, also benefiting from sell-in to CARD • Revenue up in 3 countries: Mexico, Chile, Peru • Argentina mainly impacted by channel decline HOME & STYLE | -16.2% YoY • Impact from consultant base decline due to Wave 2 integration NATURA | +12.3% YoY • Solid performance in Mexico from improved channel activity and Natura cross-selling • Boosted by more mature Wave 2 countries • Argentina activity and productivity improved, but still impacted by channel contraction (ex_Argentina) > 12.3% +11.9% -8.3% (in CC) (in CC)(in CC) Net revenue (BRL million) EARNINGS | Q2 - 26
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9 Hispanic | EBITDA Margin Hispanic +220 bps YoY Gross Margin (stable YoY) • Mexico’s positive performance benefited from favorable price dynamics and lower discounts • Argentina remained pressured by volume deleverage and commercial headwinds SG&A1 (+260 bps YoY) • Selling expenses up on higher investments to strengthen Mexico’s channel and commercial activity • G&A1 declined due to efficiencies from both Wave 2 and new operating model Non-operating expenses (-40 bps YoY) • Severance expenses resulting from the reorganization (1) Includes “Other revenue/expenses”; excludes D&A and non-operating expenses Recurring EBITDA Margin Hispanic (%) EARNINGS | Q2 - 26
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Natura Group | Net Revenue and EBITDA Margin Latam | Net Revenue -7.1% YoY in CC Brazil (-14.8% YoY) Hispanic (+7.2% YoY) Group | EBITDA Margin -200 bps YoY • Tax Effect (-120 bps YoY) Temporary increase in tax burden • Gross Margin (-70 bps; ex-ICMS-ST: -20 bps YoY) due to regional mix • SG&A1 (-20 bps) primarily affected by sales deleveraging, offset by G&A efficiencies • Non-operating Expenses (-40 bps) from severance expenses EBITDA Margin Group (%) Net revenue (BRL million) (excluding Argentina) +10.9% (1) Includes “Other revenue/expenses”; excludes D&A and non-operating expenses (in CC) EARNINGS | Q2 - 26 10
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(BRL million) Natura Group | Net Income 11 Consolidated Result | BRL+35m Net Income of BRL+35m, down BRL -410m YoY due to: • EBIT (BRL -27m): Brazil impacted by a temporary tax effect and deleverage • Financial result (BRL -320m): - Accounting benefit from FX effects on intercompany debt in 2Q-25 - impact of derivative settlement costs in 2Q-26 • Taxes (BRL -40m): effect of higher taxable income in Hispanic markets • Non-operating expenses (BRL -23m): reorganization- related severance expenses EARNINGS | Q2 - 26
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Free Cash Flow to Firm 2Q-26 | BRL 342 million • Adjusted net income (BRL -413m): reflecting lower net financials • Other (BRL -165m): mainly court deposits and litigation payments Offset by: • Working capital (BRL 501m): improvements of R$ 250 mn in receivables and R$ 227 mn in inventories due to revenue pressure • Capex (BRL 54m): reflecting a slower pace of store openings 12 Natura Group | Cash Flow (BRL million) EARNINGS | Q2 - 26
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13 Natura Group | Indebtness Net Debt/EBITDA Ratio (x) Net debt (BRL million) BRL 3.9 billion Net debt at the end of the period 2.06x1 Group Net debt to EBITDA ratio 1 Including IFRS 16 effects • Net Debt down by R$ 179 million QoQ • Slight drop in leverage Amortization Schedule (BRL billion) 2.4 0.1 0.5 2.3 3.3 Cash and short-term deposits 2026 2027 2028 2029 and beyond EARNINGS | Q2 - 26
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Final Remarks João Paulo Ferreira CEO
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15 Final Remarks 1H26 • Clear diagnosis: Performance affected by temporary operational and execution challenges in Brazil, not structural business issues • Hispanic on an upward trend: Solid growth momentum and expanding profitability • Cash flow resilience: Company generated cash and reduced leverage in the quarter • Governance and execution: The simplified operating model and Board renewal earlier this year strengthen execution discipline Looking ahead • Corrective actions: Measures to stabilize the supply chain, implement new systems, recalibrate commercial incentives, and unlock franchise and digital channel expansion • Review on 2026 EBITDA margin ambition: Preserves investments in brands, R&D, and infrastructure, prioritizing sustainable long-term growth • Balance sheet strength: Positive free cash flow projected above 2025 levels, while maintaining leverage within the optimal capital structure • Business thesis remains intact: The 1H-26 challenges reflect a temporary execution setback and do not alter the Company’s fundamentals: - Strong brands - Omnichannel ecosystem - Strong capacity to generate sustainable returns - Regeneration EARNINGS | Q2 - 26
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