Natura &Co — Q3 2024 Earnings Presentation
23 slides from Natura &Co's earnings presentation, Nov 8, 2024
Slide 1: Net Revenue Breakdown by Channel
[Net Revenue Breakdown by Channel) if he en cae sDrecastng Dal Ae an eat DictSating “Den
Slide 2: Recurring EBITDA reconciliation, Q3-24 and 9M-24
BRL million Consolidated Natura &Co Latam Holding Q3-24 Q3-23 Ch. % Q3-24 Q3-23 Ch. % Q3-24 Q3-23 Ch. % BRL million Consolidated Natura &Co Latam Holding 9M-24 9M-23 Ch. % 9M-24 9M-23 Ch. % 9M-24 9M-23 Ch. % Q3-24 Recurring EBITDA Consolidated EBITDA 659.2 351.3 87.6 776.3 428.4 81.2 (117.1) (77.6)
Slide 3: 9M-24 discontinued operations
9M-24 discontinued operations were also impacted by Q1 and Q2 losses from API and its subsidiaries and by the write-off of receivables related to the earn-out portion of The Body Shop sale
Slide 4: Net Income to underlying net income (UNI) Reconciliation
Net Income to underlying net income (UNI) Reconciliation 302 —a 6,995 (6,693) Net income Q3-24 (-) Discontinued Net Income from operations continued operations an " (9 EBITDA (9 PPA Non-recutring adjustments 524 a (=) Underlying Net income Q3-24
Slide 5: Liability Management
Liability Management On July 3, Natura Cosméticos repurchased BRL 500 million of its 1 st issuance of commercial notes that would mature in September 2025. To finance this repurchase and the BRL 826 million repurchase completed by the end of Q2-24, on July 5, Natura Cosméticos issued BRL 1,326 milli
Slide 6: Natura &Co Latam Revenue Breakdown
Natura &Co Latam Net Revenue change (%) Q3-24 vs. Q3-23 Reported (R$) Constant Currency 20.7% 19.4% 24.0% 9.8% 5.1% 12.8% 07 Appendix Natura &Co Latam Revenue Breakdown Natura Latam a 23.4% Natura Brazil 19.4% Natura Hispanic 34.7% Avon Beauty + Home & Style 6.5% Avon Brazil 5.1% Avon Hispanic 7.7%
Slide 7: Q3-24 Earnings Conference Call invitation
Natura &C0 ge: is pleased to invite you to join its Q3-24 Earnings Conference Call: Friday, November 8, 2024 07:00 .m.| New York Time 09:00a.m.| Brasilia Time 12:00p.m.| London Time “The broadcast wil be held in Portuguese with simultaneous ‘eansiation ino Engéeh The 03-24 Results wi be % vate oe No
Slide 8: Third-Quarter 2024 Results
Third- Quarter 2024 Results November 8%, 2024 natura AVON
Slide 9: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of Natura &Co’s management. The words “anticipate,” “wishes, "expects," "estimates," "intends," “forecasts,” “plans,” "predicts," “proj
Slide 10: Key Highlights
Key Highlights Performance Q3- 24 Natura &co Financial Performance + Strong top-line momentum, up 18.5% YoY and 11.3% Ex Argentina * +340 bps gross margin expansion + Recurring EBITDA up more than 50% YoY, with +340bps of recurring EBITDA margin YoY + Wave 2: Delivered improved profitability and cas
Slide 11: Quarterly Results
Natura &co —————~_— Quarterly Results Jo&o Paulo Ferreira, Guilherme Castellan, CEO Latin America CFO
Slide 12: Wave Status: Meaningful margin expansion
Wave 2 Status: Meaningful margin expansion Objective Recap natura 28% ‘mm Consolidated me “ope. 2021 2022 2023 Recurring E8ITOA Margin Latin Americ + Channel combination focused on productivity + Portfolio optimization + Efficiencies in SG&A integration Wave 2 Timeline 422 Launch of Wave2 2-23 Imple
Slide 13: Net Revenue up 18.5% YoY in CC fueled by strategic investments
Natura &co Net Revenue up 18.5% YoY in CC fueled by strategic investments Net Revenue ition 419.4% +19.8% 414.4% - 13.5% - 29.8% 5,976.4 +34.7% oe 5,090.0 a Natura &Co Natu Natura CFT Brazi Avon CFT Avon CFT Brazil Home & Style Home & Style Brazil Natura & Consolidated 30-23 Hispanic Latam Hispanic
Slide 14: Recurring EBITDA up 52% YoY
Recurring EBITDA up 52% YoY Gross profit to Fully Loaded EBITDA bridge (%) 16.1% 14.6% -50.8% -0.4% Er expenses EBITDA Recurring Margin expansion YoY (%) 300 bps Earnings Presentation | Q3-24 Natura &co +340 bps Gross margin expansion Operating leverage Improved execution of price & promotion dynami
Slide 15: Discontinued Operations
Discontinued Operations (BRL million) 3,811 302 (10,710) (97) Net Income from Deconsolidation Write off of API Other fees, tax impacts continued op. of API Equity and ACL receivables API and sub net income Earnings Presentation | Q3-24 (6,693) Consolidated Net Loss Natura &co BRL 6,995 ion Disc Ops
Slide 16: Underlying Net Income (UNI) and Net Income
Natura &co Underlying Net Income (UNI) and Net Income (BRL million) Underlying net income 524 BRL +524 million in Q3-24 302 vs BRL +1,135 nn pro forma Q3-23 6,995 au WW " P — = a Key Factors + EBIT improvement: BRL +320 million YoY Higher net financial expenses (from net cash to expected net debt) o
Slide 17: Cash Flow
Natura &co Cash Flow (BRL million) Free cash flow from continuing operations was BRL +60 million in 9M-24 vs BRL -1.9 in 9M-23, which was pacted by non-underlying liability management ‘outflow (BRL -1,499 million } This increase was mainly driven by: 2,961.7 Better working capital dynamics Lower cas
Slide 18: Indebtedness
Natura &co Indebtedness Liability management BRL 3.3 billion Cash balance at Group net period-end debt-to-EBITDA * Brazil's first SLB linked to Amazon bio-ingredient 1.50x + Repurchase of BRL 500 mn commercial notes due Sep/25 = 13th debenture issued to finance this and BRL 826 mn repurchased by Q2-
Slide 19: Closing Remarks
Natura &co —— Closing Remarks Fabio Barbosa, CEO
Slide 20: Key Takeaways
Key Takeaways Streamlining process ‘+ Remains management's ultimate goal Unlocking sustainable shareholder value ... Wave 2 Rolled out in most of the region, expected to be completed by the end of next year Learnings that we had in 2023 and 2024 will be used to minimize disruptions in the next count
Slide 21: Thank You
Thank You [email protected] rinaturaeco.com y aon natura natura, EKO Natura aco
Slide 22: Segment Breakdown
natura &co Segment Breakdown ' 10% ' ' ' 1 ~~ 1 1 109% 1 ” ' | ./ ' y |
Slide 23: Debt Profile
Natura &co Debt Profile = Bonds = Debentures = Other instruments ' i = BRL = USD