Slides
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August 4th2025 1H25 RESULTS
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IMPORTANT NOTICEThis 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. 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 records. Disclaimer
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Agenda 1H25 Financials Outlook & Guidance 1H25 Executive Summary
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Executive Summary1H25 Net Sales€524.9m+6.1% c.FX vs. 1H24+5.0%Rep FX vs. 1H241H25 Adj. EBITDA€74.5m +16.5%or +€10.5m vs. 1H2414.2% on Net Sales (+140Bps vs. 1H24)18.2% on Value Added Sales (+176Bpsvs.1H24)30Jun25 Net Debt€134.5m0.87x Net Debt to LTM Adj. EBITDA ratio30Jun25 Net Debt excl. IFRS16 at €95.2m 63%15%22%Make-upSkincareHair&BodyMake-up (+17.6%) back to >60% of total Group Sales2Q25 EBITDA Margin at 16.5% 30Jun24 LTM Adj, EBITDA30Jun25 LTM Adj, EBITDA134154+15%
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Executive SummaryDespite volatile market conditions and unfavourable exchange rates – 1H25 sales growth exceeded the overall market trend. 1H25 EBITDA increased 3xthe growth reported at top line level (EBITDA margin +140Bpson Net Sales and +176Bpson VAS).The increase in EBITDA allowed the Group to offset the negative exchange rates impact at Net income level, which closed just -€2.1m below 1H24.Sound financial structure with leverage well below 1x with additional expansion capex absorbed. €m 1H25 1H24Rep FX c FX5.0% 6.1%Value Added Sales 408.4 388.15.2%Adj. EBITDA 74.5 64.016.5%Adj. EBITDA % 14.2% 12.8%140BpsAdj. EBITDA on VAS %18.2% 16.5%176BpsAdj. Net Income 20.7 22.9(9.4%)Adj. Net Income % 4.0% 4.6%Net Debt 134.5 114.1Net Debt/Adj. EBITDA 0.87x 0.85x€m 2Q25 2Q24Rep FX c FX-1.7% 0.5%Adj. EBITDA 45.3 43.24.8%Adj. EBITDA % 16.5% 15.5%103Bps % vs 1H24Revenues 524.9 499.92Q% vs 2Q24Revenues 274.1 278.81H VAS: Value Added Sales = Net Sales – packaging cost
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1H25 Financials -Sales Performance – Revenues by BU 2Q25 1H24 1H2564,1%Make Up15,6%Skincare20,4%Hair & Body63,5%Make Up14,9%Skincare21,7%Hair & Body56,7%Make Up16,6%Skincare26,7%Hair & Body€m2Q252Q24% vs 2Q24Revenues 274.1 278.8 (2%)Make Up 175.6 155.5 13%Skincare 42.7 43.6 (2%)Hair & Body 55.8 79.8 (30%)2Q€m 1H25 1H24 % vs 1H24Revenues 524.9 499.9 5%Make Up 333.1 283.4 18%Skincare 78.1 83.0 (6%)Hair & Body 113.7 133.5 (15%)1H•Make-upreported revenues of€333.1min 1H25, up+17.6%compared to the first six months of 2024,delivering double-digit growth in both quarters. All Regions contributed positively to the business unit’sperformance, with multinational clients outperforming other customer segments. Both the mass andprestige segments grew year-over-year.•Skincareclosed the first half at€78.1m, below 1H24 mainly due to the gap generated in the firstquarter. Decline was mainly driven by US Emerging Brands, while sales to multinational clients increased,particularly in EMEA. Overall, the customer mix improved versus last year, as reflected in the strongprofitability of the Business Unit (see overleaf).•Hair&Bodyrecorded revenues of€113.7min 1H25, down-14.8%, with the entire decline occurring inthe second quarter. This compares to an exceptional strong result in 2Q24 (+39%), which had benefitedfrom several new product launches for EMEA-based clients.
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1H25 Financials -Sales Performance – Revenues by Region 2Q25 1H24 1H2548,2%EMEA27,8%Americas24,0%Asia49,7%EMEA28,1%Americas22,3%Asia52,7%EMEA27,1%Americas20,2%Asia•EMEArecorded revenues of€260.6min 1H25, broadly in line with the previous year (-1%),supported by solid performances in both Make-up and Skincare, offset by the Hair&Body. BothMultinational clients and Retailers showed growth, particularly in the second quarter.•Americasreported Net Sales of€147.3min the first six months of the year, up+8.8%, with bothquarters displaying increases versus last year. Despite a tense market environment, the prestigesegment performed well, driven by both Emerging Brands and Multinationals. Make-up postedstrong growth across the region, also in the second quarter.•Asiacontinued to deliver strong results, reporting revenues of€116.9m, up+15.6%, despite lastyear tough comps. Growth was once again led by solid performances in both China and Korea,particularly in Make-up. Both Emerging Brands and Multinationals contributed significantly in bothquarters.€m 1H25 1H24 % vs 1H24Revenues 524.9 499.9 5%EMEA 260.6 263.3 (1%)Americas 147.3 135.5 9%Asia 116.9 101.1 16%€m2Q252Q24% vs 2Q24Revenues 274.1 278.8 (2%)EMEA 132.2 146.3 (10%)Americas 76.2 74.9 2%Asia 65.7 57.7 14%1H2Q
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1H25 Financials -Sales Performance – Revenues by Customer Type 2Q25 1H24 1H2548,1%Multinationals44,9%Emerging Brands7,1%Retailers49,7%Multinationals43,5%Emerging Brands6,8%Retailers44,1%Multinationals49,9%Emerging Brands6,0%Retailers€m 2Q25 2Q24 % vs 2Q24Revenues 274.1 278.8 (2%)Multinationals 131.8 119.8 10%Emerging Brands 123.0 142.9 (14%)Retailers 19.4 16.1 20%2Q€m 1H25 1H24 % vs 1H24Revenues 524.9 499.9 5%Multinationals 260.9 220.5 18%Emerging Brands 228.6 249.4 (8%)Retailers 35.5 30.0 18%1H•Multinationalsclosed 1H25 with revenues of€260.9m, up+18.3%compared to LY and withdouble digit increases in both quarters. This strong performance was primarily driven by the Make-up business unit, followed by Skincare. All geographic areas posted solid growth, with Asia and theUnited States leading the way. Both the prestige and mass segments grew, with the former showingsignificantly higher growth rates.•Emerging Brandsreported a revenue decline of-8.3%, entirely attributable to the second quarter,closing the period at€228.6m. The challenging comparison base and the performance of theHair&Body category weighed on results. By Region, performance was positive in Asia, while the USshowed weaker dynamics.•Retailersclosed 1H25 with revenues of€35.5m, up+18.2%, rebounding from the decline recordedin 2024. Make-up and Hair & Body performed well, particularly in Europe.
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1H25 Financials –P&L highlights•1H25was marked byrecord revenues, reaching€524.9m, despite the impact ofunfavourable exchange rates (+6.1%at constant FX and+5%at reported FX) and softmarket trends, also influenced by geopolitical tensions and trade wars. In particular, FXimpacted 2Q, which reported sales of€274.1m, up by+0.5%at constant FX and down-1.7%at reported rates.•The significant increase of1H25 Adj. EBITDA, up+16.5%y-o-y, significantly outpacedthe growth in sales. The Group closed 1H25 at€74.5m(or+€10.5mvs.1H24), with asubstantial profitability expansion of+140Bps.After the very positive 1Q, also 2Qstrongly contributed to the marginality expansion, posting a+103Bpsincrease. Theseprofitability gains led to 2Q25 Adj. EBITDA of€45.3m, thehighest quarterly result everrecorded by the Group. This performance reflects:(i) an improved sales mix by business unit, with Make-up once again exceeding 60%of total Group sales;(ii) the strong performance of prestige clients,(iii) the benefits of operational initiatives that drove continuous productivityimprovements,(iv) a stable packaging component as a percentage of net sales compared to last year(i.e., no further dilution over the same period).•The improvement in productivity was also evidenced by the increase inAdj.EBITDA onvalue-added sales(net of packaging costs), which reached18.2%, up+176Bpsvs.1H24.•Adj. Net Incomeamounted to€20.7min 1H25, showing a slight decrease of-€2.1m.The performance primarily reflects the increase in financial expenses, driven by bothrealized and unrealized foreign exchange impacts, especially related to the appreciationof the Euro against the US Dollar, China Renminbi, and Korean Won. Tax rate wastemporarely influenced by intercompany dividend distributions made in 2Q25, and it istherefore expected to decline in 2H25. €m 1H25 1H24Var. vs 1H24% vs 1H24Net Sales 524.9 499.925.0 5.0%Gross Margin 111.8 99.911.911.9%Gross Margin % 21.3% 20.0%+131BpsAdj. EBITDA 74.5 64.010.5 16.5%Adj. EBITDA/Net Sales 14.2% 12.8% +140BpsAdj. EBITDA/Value Added Sales 18.2% 16.5% +176BpsEBITDA (*)70.1 58.511.6 19.9%EBIT (*)43.9 35.18.8 25.1%PBT (*)30.5 30.7(0.2) (0.6%)Net Income (*)16.6 17.9(1.2) (7.0%)Adj. Net Income 20.7 22.9(2.1) (9.4%)Adj. Net Income % 4.0% 4.6% (63Bps) (*) Includes non recurring items
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1H25 Financials –Adjusted EBITDA by BU1H24 1H2538,348,9+28%Make-up1H24 1H2510,814,3+33%1H24 1H2514,911,3-24%Hair&Body1H24 1H2564,074,5+16%Group Adj. EBITDA14.2%12.8%(18.2%On VAS)(16.5%On VAS)14.7%13.5%18.3%13.0%9.9%11.2% EBITDA/ Net Sales VAS = Value Added Sales€mSkincare•1H25 Group Adj. EBITDAwas equal to€74.5m. The strong performance of2Q25, which reported a record EBITDA of€45.3m, sustained by very strong profitability (16.5%on Net sales) was added to the strong 1Q25 results reported. 1H25 profitability expansion thus reached 14.2% on Net Sales, and 18.2% on Value Added Sales, growingby +140Bps and +176Bps respectively.•Make-Up Adj. EBITDAstood at€48.9m, up+28%(or+€10.7m). The growth was strong both in absolute terms and in terms of profitability, with the Adj, EBITDA margin onnet sales improving by +119Bps year-over-year.•Skincare Adj. EBITDAamounted to€14.3min 1H25, increasing by+33%(or+€3.5m) vs. 1H24. Despite the slow performance, the favourable customer mix and operationalimprovements drove the material increase in profitability.•In the same period,Hair&BodypostedAdj. EBITDAof€11.3m, down-24%compared to 1H24. As previously explained, the exceptional growth in 2024 was driven by aseries of new product launches of which volumes normalized in 2025. Consequently, the decline in volumes impacted the unit’s profitability in the second quarter of the year.
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1H25 Financials –Cash Flow & Net DebtOperating cash flowfor the first six months amounted to€7.7m,down -€15.5myear-over-year, mainly due to two factors:(i) an increase in capital expenditures, aligned with the Group’s capacity expansionplan, primarily in China and South Korea (+€9.6m), and(ii) a higher increase in working capital (+€13m). Specifically, while cash absorptionfrom payables and inventory combined remained broadly unchanged vs. 1H24,trade receivables registered a slight increase in DSO, due to higher sales withmultinational clients, which typically have slightly longer payment terms.Net cash flow showed an outflow of€36.8m, reflecting the dividend distributioncarried out in 2Q25 and higher net financial charges linked to unfavourable currencymovements.30Jun25 Net Debtwas therefore equal to€134.5m, with financial leverageremaining essentially unchanged at0.87xvs. 30Jun24, despite dividends paid andthe increase in capex reported. 30Jun25 Net Debt excluding the accounting impactderiving from the application of IFRS16, was equal to€95.2m. (*) Only includes the portion of EBITDA adjustments with a cash impact, which amounted to €5.5m in the first half, out of total net adjustments of €4.4 million (which includes also positive items, like the insurance reimbursement for €2.5m). (**) Calculated as Net Debt/LTM Adj. EBITDA €m 1H25 1H24Var. vs 1H24Adjusted EBITDA 74.5 64.010.5Adjustments (*) (5.5) (3.1)(2.4)Change in TWC (35.9) (22.9)(13.0)Other Chg. in NWC 7.9 9.0(1.0)Capex (33.4) (23.8)(9.6)Operating Cash Flow 7.7 23.2(15.5)Changes L/T Assets & Liab. 2.3 (1.1)3.5Fin. Expenses (13.4) (4.4)(9.0)Taxes (13.9) (12.8)(1.0)Chg in Equity & Others (1.9) (1.0)(0.8)Cash Flow before Div. Dist. (19.1) 3.7(22.9)Dividends Distribution (17.7) (17.7)0.0Cash Flow post Div. Dist. (36.8) (14.0)(22.8)Net Debt Opening97.7 100.2Net Debt Closing134.5 114.1€m 1H25 1H24Var. vs 1H24Net Debt 134.5 114.1 20.4Leverage Ratio (**) 0.87x 0.85x 0.02xNet Debt excl. IFRS16 95.2 70.2 25.0
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Outlook & GuidanceRegarding overall market trends, we confirm our previously communicated view which points to a soft YTD pace. The US market continues to see difficulties with the only exception of lip category. Tariff impact is still unknown, inevitably causing instability in private consumption—and therefore sales volatility for our clients. We believe that the current scenario will strengthen Intercos’ competitive positioningin the medium term, thanks to its unique global footprintwithin the industry. Moreover, the U.S. market—undisputedly one of the most important for the global beauty industry—has been under pressure for over a year now. Due to ongoing uncertainty surrounding tariff regulations, beauty brands are currently operating with relatively low inventory levels. This implies that any potential market rebound in the region would clearly work in our favor, even in the short term.Turning to the Asian market, particularly China, we have seen some signs of recoveryof the Beauty market this year, confirmed by a positive performance in the first half of 2025 of approximately +3%. While it is too early to determine whether the rebound will be sustained, the current trend is more reassuring than what we observed in 2024.Finally, the EMEA marketcontinues to delivergrowth rates, although below last year pace.Market Overview The good results achieved in the first half confirm the expectations previously communicated: a year characterized by aprogressive improvement inprofitability, alongsidemore moderate sales growth, reflecting both the significant business expansion the Group has experienced in recent yearsand the high level ofmarket volatility in the beauty sector in 2025. In this context, we believe that the Group will continue to follow the growthtrajectory projected for the year and already communicated to the market.Order intake remains solid, although ongoing uncertainty around finaltariff regulations may, in some cases, result invarying product delivery timelines.Where we StandIn a complex short-term environment also for the Beauty market, the Group has decided to focus on its core business and onthe improvement of itsprofitability.This will enable us to continue growing -albeit at a more moderate pace - in terms of sales, while significantly improving the Group’smargins and confirming an Adjusted EBITDA for the year in line with current consensus expectations.FY25 Guidance
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Appendix
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P&L and Related Adjustments(***) All functional areas include amortization which are deducted for the construction of the EBITDA€m 1H25 1H24Var. vs 1H24% vs 1H24Net Sales 524.9 499.9 25.05.0%COGS (413.1) (400.0) (13.1)3.3%Industrial gross profit 111.8 99.9 11.911.9%% on net sales 21.3% 20.0%Research & Development and innovation costs (21.5) (21.3) (0.1)0.7%Selling expenses (15.1) (15.1) (0.0)0.2%General and administrative expenses (28.9) (26.2) (2.7)10.4%Other operating income (expenses) (2.4) (2.2) (0.2)7.6%Operating Profit (EBIT) 43.9 35.1 8.825.1%% on net sales 8.4% 7.0%D&A (***) (26.2) (23.4) (2.8)12.0% EBITDA 70.1 58.5 11.619.9%Adjustements (*) 4.4 5.5 (1.1)Adjusted EBITDA 74.5 64.0 10.516.5%% on net sales 14.2% 12.8%Financial income (expenses) (13.4) (4.4) (9.0)204.0%Profit before taxes (EBT) 30.5 30.7 (0.2)(0.6%)Income taxes (13.9) (12.8) (1.0)8.2%Net income 16.6 17.9 (1.2)(7.0%)Adjustments (**)(4.1)(5.0) 0.9Adjusted Net income 20.7 22.9 (2.1)(9.4%)€m 1H25 1H24Management Long Term Incentive Plan (1.3) (1.0)One-off costs related to personnel (mainly layoff) (2.8) (0.5)Cyber Cost/insurance reimbursement 2.5 (2.1)Consultancy & legal costs (3.4) (3.8)Accrual/Release Bad Debt Provision related to "The Body Shop" customer 0.6 (1.4)Others (0.1)Sale of asset 3.3Adjustments (*) at EBITDA level (4.4) (5.5)Write-off capitalization previous years (1.3)Tax impact arising from above adjustments 1.6 1.5Taxes related to prior year (1.0)Adjustments (**) at Net Income level (4.1) (5.0)
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Balance Sheet and Cash Flow30Jun25 31Dec24Var. vs 31Dec24Tangible Assets246.3248.5(2.2)Intangible Assets65.663.22.4Goodwill133.7133.7(0.0)Investments 1.5 1.5 0.0Deferred tax assets 25.7 29.3 (3.6)Other non-current Assets/Liab.(10.6)(11.8)1.2Non-current Assets462.3464.5(2.2)Inventory 202.2 193.3 8.9Trade Receivables 174.8 160.6 14.2Trade Payables(189.5)(202.2)12.8Other current Assets/Liab.(47.5)(39.5)(7.9)Net Working Capital 140.0 112.1 28.0Capital Employed602.3576.625.8Net Debt 134.5 97.7 36.8Equity 467.8 478.9 (11.1)1H25 1H24 Var. vs 1H24Cash flows provided by (used in) operating activities 22.532.4(9.9)Cash flows provided by (used in) investing activities(29.6)(20.3)(9.2)Cash flows provided by (used in) financing activities (33.1) (15.5) (17.6)Net increase (decrease) in cash and cash equivalents(40.1)(3.4)(36.7)Dividends distribution (17.7) (17.7) (0.0)Cash and cash equivalents, at beginning of the year190.0152.837.2Of which, change in exchange differences5.9(0.2)6.1Cash and cash equivalents, at end of the period 126.2 131.9 (5.7)Net increase (decrease) in cash and cash equivalents(57.9)(21.2)(36.7)
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DefinitionsFor 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.•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.•VAS: Value Added Sales (Net Sales – cost of packaging)