Natura &Co — Q2 2024 Earnings Presentation
27 slides from Natura &Co's earnings presentation, Aug 14, 2024
Slide 1: Second-Quarter 2024 Results
Distribution channel breakdown Digital sales, which include online sales and social selling, showed some deceleration in the quarter. Natura reported a 1 percentage point (p.p.) decrease to 5% of total sales, offset by the solid retail channel performance, amid omnichannel investments, increased num
Slide 2: Natura &Co Latam Financial Performance
Net Revenue Breakdown Share of Digital Sales by Channel!) per Brand (%) 4% 305 ae 5% % & Digital ® Retail (own stores + Franchise) Traditional Direct Selling Q2-23 Q2-24 Q2-23 Q2-24 Retail (own stores + Franchise) m Digital m Traditional Direct Selling m Wholesale Retail (own stores + Franchise) 92%
Slide 3: Avon International Financial Performance
Net income to underlying net income (UNI) reconciliation (+4) —_ 162 726 (859) ——tt— 152 (-) (-) Discontinued Transformation / Operations Other Effects Net income Q2-24 (-) PPA (-) DTA write-off (=) Underlying Net Income Q2-24
Slide 4: Thank You
Liability management In Q2 2024, Natura Cosméticos S.A. completed a BRL 826 million tender offer for its 11 th issuance of debentures, which matured in July 2027. This repurchase was financed using the Company's own funds. Subsequent to this movement, on July 3 rd , Natura Cosméticos repurchased BRL
Slide 5: Distribution channel breakdown
Avon International (BRL million) P&L Q2-24 Q2-23 Ch. % Gross revenue 1,701.0 1,795.1 (5.2) Net revenue 1,426.8 1,510.3 (5.5) Constant currency -8.4% COGS (555.4) (553.6) 0.3 Gross profit 871.5 956.7 (8.9) Gross margin 61.1% 63.3% -220 bps Selling, marketing and logistics expenses (639.1) (701.8) (8.
Slide 6: Net Revenue Breakdown by Channel and Share of Digital Sales
9106/2922 08/5/2027 SRL 2ESSmison i+ 0.etper yest Natura Cosméticos SA, Debenture- ®2thiasue 19/06/2022 05/15/2029 SRL4872 milion FCA +€.80% 70/06/2022 09/6/2032. BRL 3005 mion FCA +6 50% Natura Cosmatioos SA, Debenture- Wihiswe 06/16/2024 7/2028 BRL 1226 milion Dis 120%peryear Natura &Co LuxemburgH
Slide 7: Net income to underlying net income (UNI) reconciliation
Natura &Co Holding S.A, Global Scale Nationai Outlook Fitch Ratings BB+ AAR Stable Moody's Baa Negative Standard & Poor's 5B AAA Stable Natura Cosméticos S.A, Global Scale National Scale Outlook Fitch Ratings BB+ AAA Stable Moody's Bad = Negative Standard & Poor's 5B AAR Stable Avon International Gl
Slide 8: Liability management
Natura &CO ¢x:1102; is pleased to invite you to join its Q2 -24 Earnings Conference Call: Tuesday, August 13th, 2024 08:00 a.m. | New York Time. 09:00 a.m. | Brasilia Time 13:00 p.m. | London Time The broadcast will be held in Portuguese with simultaneous translation into English The Q2-24 Results w
Slide 9: Avon International (BRL million) P&L
Slide 10: Debt instruments table
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," "pro
Slide 11: Credit ratings
Avon Products, Inc (API) announces voluntary Chapter 11 proceedings in U.S. Bankruptcy Court Natura &Co is API's largest creditor and supports the decision Process should enable the Company to resolve its debt and legacy liabilities No impact is expected on Avon operations outside United States Key
Slide 12: Q2-24 Earnings Conference Call invitation
Consolidated Financial Performance Guilherme Castellan, CFO naturag¢o
Slide 13: Natura &Co: Improving top-line trends as Natura Brazil continues to show
Natura &Co: Improving top-line trends as Natura Brazil continues to show strong momentum while Avon Brazil stabilizes Net Revenue @% Highlights +5.7% in CC | +1.1% in CC Ex- Argentina and TBS » Solid performance at Natura in Brazil with % : 5 ao accelerating pace in Mexico » Better trends from Avon
Slide 14: Disclaimer
Adjusted EBITDA: another quarter of margin expansion mainly driven by Hispanic. Wave 2 countries partially offset by Avon International Q2-24 Consolidated Adjusted EBITDA Margin Highlights 05% 0.6% 0.1% 10.9% 101 9 0.4% +110 mainly driven by Wave 2 bps YoY initiatives and better country Natura &CoLa
Slide 15: Avon Products, Inc. announces voluntary Chapter 11 proceedings
Underlying net income (UNI) and net income Net income to underlying net income (UNI) reconciliation Q2-24 (BRL million) 162 726 (859) aig gia Operations Other Effects Net income Q2-24 (PPA DTA write-off Earnings Presentation | Q2-24 Highlights UNI improvement vs. BRL -219 mn loss in Q2-23 * Higher A
Slide 16: Consolidated Financial Performance
Free cash flow in Q2-24 improved BRL+180 million YoY or BRL+290 million when compared to Q2-23 reported cash outflow Adjusted net income to free cash Flow Q2-24 (BRL million) Highlights 896.6 Mainly driven by: * Higher Adjusted Net Income + Lower Financial expenses (940.6) (2298) Partially offset by
Slide 17: Natura &Co: Improving top-line trends as Natura Brazil shows strong momentum
Indebtedness: Extending debt maturity through prepayment and new issuances, including a sustainability-linked instrument Net debt and net debt-to-EBITDA ratio (BRL billion) com Si, oa oar BRL 3.5 billion {0.3} P22 | Cash balance at period-end a as23 am 22 IFRS 26 ee Amortization schedule (BRL billio
Slide 18: Adjusted EBITDA: another quarter of margin expansion
Slide 19: Underlying net income (UNI) and net income
" Natura &Co Latam: Accelerating momentum in Brazil and improving trends in Hispanic regions Net Revenue #7 © #10.0% in CC | +4.3% in CC Ex-Argentina +8.4% 922.4 20.1% 5,461.8 224 — 42.0% 08% 427.4% 414.8% 223 2-24 Home & Style Hispanic Latam Home & Style Brazil Avon CFT Hispanic Latam Avon CFT Bal
Slide 20: Free cash flow in Q2-24 improved BRL+180 million YoY
Profitability: Sixth consecutive quarter of YoY expansion enabling higher " investments in marketing and growth projects Adjusted EBITDA’ and Adjusted EBITDA margin Highlights 13.3% 14.4% Driven by: 850.4 +110 » Gross Margin 727.0 bps YoY ‘AdjEBITDA Margin Another quarter of profitability expansion
Slide 21: Indebtedness: Extending debt maturity through prepayment and new issuances
Slide 22: Natura &Co Latam: Accelerating momentum in Brazil
14 Avon International: Another challenging quarter with top-line decline Net Revenue @* mon) Adjusted EBITDA’ and Adjusted EBITDA margin @ ™=. ») -8.4% in CC | -9.5% in CC Ex-TBS. 5.5% ee ies 4.4% 2.6% 66.3 = 223 224 228 Driven by: 4 80 | 50 Driven by: ; -8.4% ~ Beauty category drop (-6%) 7 + sales
Slide 23: Profitability: Sixth consecutive quarter of YoY expansion
Closing Remarks Fabio Barbosa, CEO naturag¢o
Slide 24: Avon International: Another challenging quarter with top-line decline
is Committment to the triple bottom line strategy Key Takeaways & Next Steps 1 We will continue to focus on delivering our strategic priorities 2. Simplification remains as the path to unlock value for all our stakeholders in the short term Agenda focused on healthy and diverse channel, consumer- ce
Slide 25: Closing Remarks
Slide 26: Key Takeaways & Next Steps
Debt Profile Q2-24 by currency m= Bonds 1 Debentures =BRL # USD i = Comercial notes ® Other instruments Earnings Presentation | Q2-24
Slide 27: Debt Profile
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized. NATURA &CO HOLDING S.A. By: /s/ Guilherme Strano Castellan Name: Guilherme Strano Castellan Title: Princip