Wella (WELA) investor relations material

Company overview and business model

• Operates as the world’s largest pure-play hair and nail company, present in over 100 countries, with a portfolio of seven strategic brands across professional and consumer channels.

• Business model leverages professional-first heritage, science-led innovation, and strong relationships with salon professionals to drive growth in both professional and consumer markets.

• Two main segments: Hair & Nail (84% of FY26 net revenue) and Beauty Tech (16%), with offerings spanning professional hair, retail hair, styling tools, and nail products.

• Focuses on omnichannel distribution, serving over 250,000 salons and expanding into e-commerce, premium retail, and mass channels.

• Maintains a robust global supply chain with three owned manufacturing facilities and a network of third-party partners.

Financial performance and metrics

• FY26 net revenue reached $2.94 billion, up from $2.59 billion in FY24, representing a 5% CAGR on a constant currency basis.

• FY26 net income was $62 million, a turnaround from net losses in the four prior years.

• Adjusted EBITDA grew to $522 million in FY26 (18% margin), up from $415 million (16% margin) in FY24.

• Free cash flow for FY26 was $159 million, with net cash from operating activities of $225 million.

• Gross debt as of June 30, 2026, was $2.29 billion, with net debt of $1.97 billion.

Use of proceeds and capital allocation

• Net proceeds from the IPO, together with new borrowings, will be used to repay outstanding Facility B borrowings under the Senior Facilities Agreement and to cover tax withholding and remittance obligations related to equity grants.

• A portion of proceeds will also fund employee equity incentive programs and related tax obligations.