Slide 1: Third Quarter FY19 Financial Results
THIRD QUARTER FY19 FINANCIAL RESULTS May 8, 2019
Slide 2: CEO Update: The Path Forward - Return to Fundamentals
CEO UPDATE THE PATH FORWARD - RETURN TO FUNDAMENTALS Management team Collectively identifying and prioritizing in place the strategic opportunities • Upside potential in shelf Analysis of key productivity markets and • Prioritization of brands/markets business units • Investment at scale • Talent th
Slide 3: 3Q19 and YTD Results: Solid Profit and Cash Delivery
3Q19 AND YTD RESULTS SOLID PROFIT AND CASH DELIVERY • 3Q19 Net Revenue LFL (3.7%) $ Millions 3 Months Year-to-Date Includes ~2% negative impact from Net Revenues 1,991 6,533 revenue recognition accounting change YoY -10.4% -8.0% YTD LFL Net Revenues of (3.3%) LFL -3.7% -3.3% • Increased control
Slide 4: Luxury Q3 FY19 Highlights
LUXURY Q3 FY19 HIGHLIGHTS oN }miu Miu THE NEW ANCE TWIST “BOSS BOTTLED INFINITE \Oflod:
Slide 5: Luxury 3Q19 and YTD Results
LUXURY 3Q19 AND YTD RESULTS CONTINUED STRONG TOPLINE AND PROFIT GROWTH • 3Q19 Net Revenue LFL + 2.8%, which includes ~1% headwind from $ Millions 3 Months Year-to-Date temporary factors Continued strong underlying Net Revenues 729 2,540 growth YTD YoY -3.1% 2.9% Solid 3Q19 results, despite LFL 2
Slide 6: Consumer Beauty Highlights
CONSUMER BEAUTY HIGHLIGHTS 6
Slide 7: Consumer Beauty 3Q19 Results
CONSUMER BEAUTY 3Q19 RESULTS CONTINUED TOPLINE WEAKNESS, AS WE FOCUS ON BUILDING HEALTHIER BASE • 3Q19 Net Revenue LFL (10.0%), which includes ~3% headwind from temporary factors • 3Q19 YTD LFL of (10.4%), which includes ~2% $ Millions 3 Months Year-to-Date headwind from temporary factors Adjusted
Slide 8: Professional Beauty Q3 Highlights
PROFESSIONAL BEAUTY Q3 HIGHLIGHTS 8
Slide 9: Professional Beauty 3Q19 Results
PROFESSIONAL BEAUTY 3Q19 RESULTS SLIGHTLY NEGATIVE LFL BELOW RUN-RATE TRENDS • 3Q19 Net Revenue LFL (0.6%) YTD Net Revenue LFL of (1.3%), $ Millions 3 Months Year-to-Date which includes ~2% negative impact from the temporary Net Revenues 421 1,357 factors YoY -6.1% -4.9% Business is solid, but r
Slide 10: 3Q19 P&L Focused on Profit Delivery
3Q19 P&L FOCUSED ON PROFIT DELIVERY • 3Q19 gross margin 62.9%: 3Q19 3Q18 Total YoY Performance FX Down 140 bps YoY, but up 80bps Net Revenues 1,991 2,223 -10.4% -5.5% -4.9% vs. 2Q19 Continued margin expansion in Luxury and Professional Beauty Adj Gross Profit 1,252 1,428 -12.4% -7.9% -4.5% Mor
Slide 11: YTD P&L Focused on Profit Delivery
YTD P&L FOCUSED ON PROFIT DELIVERY • YTD gross margin down 60 bps to 3Q19 3Q18 Total YoY Performance FX 61.8% a result of: YTD YTD Net Revenues 6,533 7,099 -8.0% -4.4% -3.6% Significant pressure in 1H19 stemming from the supply chain disruptions Adj Gross Profit 4,038 4,431 -8.9% -5.7% -3.2% Adj G
Slide 12: Net Debt Decrease in 3Q19 Supported by Free Cash Flow
NET DEBT DECREASE IN 3Q19 SUPPORTED BY FREE CASH FLOW DELEVERAGING IS A TOP PRIORITY, KEY LEVER FOR VALUE CREATION • 3Q19 FCF of $142M improved by $348 million from 3Q19 3Q18, reflecting impact of working capital management Adj Operating Income 230 initiatives, including: Depreciation 96 Adj EBITDA
Slide 13: Quarterly Dividend at $0.125 per Share; Option to Receive 50% in Stock
QUARTERLY DIVIDEND AT $0.125 PER SHARE OPTION TO RECEIVE 50% IN STOCK • Consistent with our deleveraging objective, we are initiating a stock dividend reinvestment program giving shareholders the option to receive their full dividend in cash or to receive their dividend in 50% cash / 50% common stoc
Slide 14: Key Recent Developments: JAB Tender Offer Completed
KEY RECENT DEVELOPMENTS JAB TENDER OFFER COMPLETED • JAB Tender Offer to acquire 150 million Coty shares completed on May 1, 2019 • 337M shares tendered, implying a proration of ~45% • JAB's ownership of Coty now accounting for 60% of our outstanding shares • Underlying expression of confidence and
Slide 15: FY19 Outlook
FY19 OUTLOOK • During the final quarter of fiscal 2019, we continue to expect that FY19 constant currency adjusted operating income will be moderately below FY18 Constant currency adjusted operating income of $950-1,000M Implies a solid profit performance in 4Q19, despite expected continued weak
Slide 16: Coty
COTY
Slide 17: Disclaimer
DISCLAIMER Forward-Looking Statements Certain statements in this presentation are forward-looking statements. These forward-looking statements reflect Coty Inc.’s (“Coty’s”) current views with respect to, among other things, Coty’s strategic planning, targets and outlook for future reporting periods