Slide 1: CAGNY Investor Presentation 2024
CAGNY INVESTOR PRESENTATION 2024
Slide 2: Slide 2
Slide 3: Table of Contents
TABLE OF CONTENTS 01. Coty, a beauty powerhouse Executing strategy, with significant 02. white space opportunities 03. Strong financial progress 04. Attractive growth algorithm 1904
Slide 4: A Beauty Powerhouse
COTY A BEAUTY POWERHOUSE J WL ta tit
Slide 5: Coty Is a Global Beauty Powerhouse
COTY IS A GLOBAL BEAUTY POWERHOUSE $5.6B >120 8 FY23 NET REVENUES COUNTRIES MANUFACTURING PLANTS $973M ~11K Top 3 GLOBALLY IN BOTH FY23 ADJ EBITDA EMPLOYEES FRAGRANCES & MASS COLOR COSMETICS Source: GlobalData (2021) 5
Slide 6: Seasoned Beauty Executives Successfully Leading New Coty
SEASONED BEAUTY EXECUTIVES SUCCESSFULLY LEADING NEW COTY MOST OF THE MANAGEMENT TEAM HAVE 20-25+ YEARS BEAUTY EXPERIENCE SUE NABI LAURENT ANNA KRISTIN CAROLINE ALEXIS STEFANO 4 7 4 4 16 8 4 Chief Executive MERCIER VON BAYERN BLAZEWICZ ANDREOTTI VAGANAY CURTI Officer Chief Financial Officer Chief Cor
Slide 7: Diversified Portfolio Across Price Points & Categories
DIVERSIFIED PORTFOLIO ACROSS PRICE POINTS & CATEGORIES FY23 REVENUE MIX 7% 6% Y T AU BE SUMER 25% 38% E 62% CON TIG 55% ES PR 4% 3% PRESTIGE PRESTIGE PRESTIGE & CONSUMER CONSUMER BEAUTY CONSUMER BEAUTY BODY CARE FRAGRANCES COSMETICS BEAUTY SKINCARE COSMETICS FRAGRANCES 7
Slide 8: Diversified Regional Portfolio with Significant White Space
DIVERSIFIED REGIONAL PORTFOLIO WITH SIGNIFICANT WHITE SPACE FY23 COTY REVENUE MIX NORTH CHINA AMERICA 4% (INCL. KYLIE) WESTERN Beauty Industry: 31% EUROPE ~13% Beauty Industry: 25% ~20% Beauty Industry: EASTERN EU ~20% & MEA 17% Beauty Industry: APAC ~8% 6% GLOBAL Beauty Industry: TRAVEL RETAIL BRAZ
Slide 9: We're Pursuing Sustainable and Balanced Growth
WE’RE PURSUING SUSTAINABLE AND BALANCED GROWTH 1H FY24 LFL GROWTH PER SEGMENT / PRICE POINT PER REGION BOTH PRICE AND VOLUME 14% EMEA + LSD % Volume 18% Prestige 14% Americas + HSD % Price (est.) Consumer 7% Beauty 17% APAC + LSD % Mix & Other (est.) Notes: All figures refer to LFL growth, excluding
Slide 10: Best-in-Class LFL Growth in Global Beauty
WE CONTINUE TO CONSISTENTLY DELIVER BEST-IN-CLASS LFL GROWTH IN GLOBAL BEAUTY LFL Growth 3Q CY21 4Q CY21 1Q CY22 2Q CY22 3Q CY22 4Q CY22 Q1 CY23 Q2 CY23 Q3 CY23 Q4 CY23 Leading Beauty 13% 11% 14% 13% 9% 8% 13% 14% 11% 7% Company #1 Leading Beauty 18% 11% 9% -8% -5% -11% -8% 4% -11% -8% Company #2 21
Slide 11: Beautiful Brand Portfolio Across Price Points
BEAUTIFUL BRAND PORTFOLIO REACHING CONSUMERS ACROSS PRICE POINTS ULTRA-PREMIUM $150 - 450 PREMIUM + $50 - 150 PREMIUM $20 - 100 MASS $5 - 20 11
Slide 12: FY23 Sales Growth Contribution by Brand
WE’RE PURSUING SUSTAINABLE AND BALANCED GROWTH FY23 SALES GROWTH CONTRIBUTION BY BRAND Other Hugo Boss Chloe Monange Calvin Klein FY23 sales CoverGirl +12% LFL Gucci Burberry Rimmel Marc Jacobs All brands at or below ~10% of sales Notes: All figures refer to LFL growth, excluding Russia exit impact.
Slide 13: Continuing to Build a Leading Beauty Powerhouse
CONTINUING TO BUILD A LEADING BEAUTY POWERHOUSE ACHIEVED CONTINUED PREMIUMIZATION 48% 38% UT Y TY E A U B TY A R BE ME U SUMER BEA NSUMER CONSU FY19 FY23 FY27 ESTIGE M I X (1) MIX IGE TRAJECTORY CO EST ON GE PR PR TI C ES 52% 62% R P Revenue Adj. EBITDA Note: (1) Excludes Wella business, sold in 202
Slide 14: Global & Scaled Manufacturing Capabilities
COTY’S GLOBAL & SCALED MANUFACTURING CAPABILITIES Coty owns the largest Fragrance factory in the world in Barcelona 8 manufacturing Producing ~80% facilities across >1 billion of products 4 products produced annually in-house continents Manufacturing Locations (2 in US, Brazil, China, France, Monaco
Slide 15: Scaled Commercial & Distribution Capabilities
OUR SCALED COMMERCIAL & DISTRIBUTION CAPABILITIES EXTRAORDINARY GLOBAL REACH Access to 120+ markets >500,000 Region tailored, Close focus on and over orders multi-channel sell-out levels distributed distribution and retailer 100,000 annually strategies inventories doors 15
Slide 16: 2023 Company Ranking
2023 COMPANY RANKING: COTY HAS THE LARGEST COMPONENTS ANALYZED INCLUDE IMPROVEMENT IN THE LATEST MANAGEMENT TOP 250 1 Customer satisfaction 2 Employee engagement & development BUSINESS Coty Is The Biggest Gainer 3 Innovation In The Management Top 250 4 Social responsibility 5 Financial strengh 16
Slide 17: Strengthening Core & Conquering White Spaces
STRENGTHENING CORE & CONQUERING WHITE SPACES THROUGH BALANCE OF OWNED & LICENSED BRANDS CORE WHITE SPACE WHITE WHITE WHITE SPACE SPACE CORE CORE WHITE SPACE WHITE SPACE SPACE WHITE WHITE SPACE SPACE LIFESTYLE ULTRA ULTRA PREMIUM PRESTIGE LIFESTYLE LUXURY CONSUMER PRESTIGE PREMIUM PRESTIGE MAKEUP MAK
Slide 18: Executing Strategy with Significant White Space Opportunities
02 EXECUTING STRATEGY WITH SIGNIFICANT WHITE SPACE OPPORTUNITIES
Slide 19: Reaffirming and Refining Our Strategic Pillars
REAFFIRMING AND REFINING OUR 6 STRATEGIC PILLARS #1 #2 #3 #4 #5 #6 Stabilize and Accelerate luxury Build skincare Step-change Capture white Become a grow consumer fragrances & portfolio over the organizational space geographic beauty leader beauty makeup become a key mid-to-long growth opportunities
Slide 20: Consumer Beauty
#1 CONSUMER BEAUTY CAPTURING THE VALUE CONSCIOUS CONSUMER
Slide 21: Our Consumer Beauty Journey
OUR CONSUMER BEAUTY JOURNEY TURNAROUND EXECUTED, ENTERING NEXT PHASE OF ACCELERATION ACHIEVEMENTS TO DATE WHAT’S TO COME FY21-FY23 FY24 & BEYOND RELAUNCH ALL TOP Accelerate cosmetics brands by overdriving BRANDS advocacy and disruptive innovation RETURN CONSUMER BEAUTY TO SUSTAINED Drive division’s
Slide 22: Leading Brand Equities in Consumer Beauty
LEADING BRAND EQUITIES IN CONSUMER BEAUTY ACROSS CATEGORIES & GEOGRAPHIES COLOR COSMETICS #2 #3 #3 #2 #3 #4 #5 NAIL #2 #2 #2 #1 #1 PERSONAL CARE #2 #2 #3 FRAGRANCE #4 #3 #4 #5 #5 Source: Kantar Equity 2023 22 Source: Kantar Equity 2023
Slide 23: Coty Consumer Beauty Delivering Strong Sales Growth
COTY CONSUMER BEAUTY DELIVERING STRONG SALES GROWTH 1H FY24 PERFORMANCE INLINE WITH MARKET ~16% +11% +8% ~8% +7% ~6% Market Coty Market Coty Market Coty FY 2022 FY 2023 1H FY 2024 Coty performance based on LFL revenue growth; Market growth based on NielsenIQ + Amazon covering Argentina, Australia, B
Slide 24: CoverGirl
.* COVERGIRL
Slide 25: CoverGirl Step Changing Advocacy
COVERGIRL STEP CHANGING ADVOCACY, WITH STRONG INITIAL RESULTS COVERGIRL ESSENCE LAUNCH SUPPORTED BY >5K INFLUENCERS (VS. <500 FOR ALREADY THE LAUNCHES LY) #1 NEW MAKEUP REACHED #4 EMV RANK RELEASE ON IN DECEMBER AND 1ST AMAZON MONTH EMV ALREADY ABOVE COVERGIRL’S TOTAL CY23 EMV 25
Slide 26: Accelerating Consumer Beauty's Profit Engines
ACCELERATING CONSUMER BEAUTY’S PROFIT ENGINES LIFESTYLE FRAGRANCES NAIL • Mid teens % of division sales • Mid teens % of division sales • Operating margin • Gross margin >10% >10% above Consumer above Consumer Beauty average Beauty average 26
Slide 27: Building Lifestyle Scenting and Wellness Powerhouses
BUILDING LIFESTYLE SCENTING AND WELLNESS POWERHOUSES IDENTITY ESSENTIALS WELL-BEING SELF DISCOVERY #1 in Germany Global brand #4 male in US 80+ markets #4 male in UK #4 male in Germany #1 female Amazon UK 27
Slide 28: Coty Is Global #1 in Nail
COTY IS GLOBAL #1 IN NAIL BEAUTIFUL 21% GLOBAL COVER PORTFOLIO OF MARKET SHARE* ALL NEEDS BRANDS #1 28 * Nielsen traditional Nail market, MAT Sep 2023
Slide 29: Coty Local Brands Leading in Brazil
COTY LOCAL BRANDS LEADING IN BRAZIL NAIL BODY SKINCARE RISQUE LEADS IN THE COTY IS A TOP PLAYER IN BRAZIL BRAZILIAN MARKET +36% #1 In body oil & #2 in body lotion LFL NR Growth in 1H24 YoY Brazil Consumer Beauty Revenues #1 +25% LFL in FY23 32.3% #1 in household penetration in retail share of market
Slide 30: Leveraging Brazilian Capabilities to Enter Emerging Markets
NEXT STEPS: LEVERAGING BRAZILIAN CAPABILITIES TO ENTER ADDITIONAL EMERGING MARKETS Leveraging Brazil Brazil serving as Coty’s distribution strength to Center of Excellence enter mass fragrances; for development of 4K doors initially and bodycare and beauty targeting ~15K for melanin rich skin Low co
Slide 31: Laser Focused on Expanding Gross Margins
LASER FOCUSED ON EXPANDING GROSS MARGINS STRATEGIC REVENUE MVA PORTFOLIO TARGETED PRICING MANAGEMENT MARKETING VALUE ANALYSIS C H O O S E B E T S D R I V E S C A L E S L O W E X P A N S I O N A C C E L E R A T E G R O W T H 31
Slide 32: Strong Improvements in Productivity & Complexity
STRONG IMPROVEMENTS IN PRODUCTIVITY & COMPLEXITY SKU COUNT REVENUE PER SKU GROSS PROFIT PER SKU -6% vs. 2YA +18% vs. 2YA +46% vs. 2YA Analysis covers >80% of Consumer Beauty portfolio. Excludes Brazil regional brands. 32
Slide 33: Prestige Fragrances & Makeup
#2 PRESTIGE FRAGRANCES & MAKEUP CAPTURING THE LUXURY CONSUMER
Slide 34: Coty Prestige Fragrances Outperform Strong Market
COTY PRESTIGE FRAGRANCES OUTPERFORM STRONG MARKET +22% +19% Service Recovery +21% +13% YoY +10% +10% Prestige Fragrance Coty Prestige Prestige Fragrance Coty Prestige Prestige Fragrance Coty Prestige Market Fragrances Market Fragrances Market Fragrances FY 2022 FY 2023 1H FY 2024 Coty performance ba
Slide 35: Moving Up the Fragrance Penetration Curve
U.S., CHINA AND DEVELOPING MARKETS MOVING UP THE FRAGRANCE PENETRATION CURVE >50% HIGH 20S % MSD % FINE FRAGRANCE PENETRATION (VS. LOW 20S % ~5 YEARS AGO) FINE FRAGRANCE PENETRATION Existing users increasing >20% weekly fragrance usage AMONG TIER 1 CITY GEN Z CONSUMERS 35
Slide 36: Partner of Choice for Global Beauty Brand Licensors
WE ARE THE PARTNER OF CHOICE FOR GLOBAL BEAUTY BRAND LICENSORS Industry leading Proven, multi-category State-of-the-art Leading distribution Very few truly global IP assets, including beauty expertise, manufacturing, incl. & commercial beauty players patents for long-lasting consumer insights & larg
Slide 37: Long-Standing Partnerships with Key Licensors
LONG-STANDING PARTNERSHIPS WITH OUR KEY LICENSORS CONCENTRATED, HIGH QUALITY LONG TERM LICENSE AGREEMENTS BRAND PORTFOLIO TOP 7 BRANDS ~90% First sizeable license up for renewal in ~4.5 years of prestige fragrance sales 25+ years long relationships on average ~12.5 year average remaining duration fo
Slide 38: Fueling Fragrance Portfolio for Short and Long Term
FUELING FRAGRANCE PORTFOLIO FOR SHORT AND LONG TERM CY23 LFL REVENUE GROWTH >30% YoY ULTRA-PREMIUM $150 - 450 +15-30% YoY PREMIUM + +10-15% YoY $100-170 PREMIUM $80-120 ENTRY PRESTIGE $50-80 Chloe brand includes total revenues for the Chloe Atelier des Fleurs collection 38
Slide 39: Burberry Goddess Setting New Heights
BURBERRY GODDESS SETTING NEW HEIGHTS FOR THE INDUSTRY BRAND RANK INCREASE SINCE TOP INNOVATION BURBERRY GODDESS LAUNCH #1 +8 RANKS #1 +3 RANKS #1 +8 RANKS #3 +5 RANKS #2 +15 RANKS #3 +7 RANKS 39
Slide 40: Burberry Goddess: New Proprietary Savoir Faire
BURBERRY GODDESS: NEW PROPRIETARY SAVOIR FAIRE FOR DEVELOPING BLOCKBUSTERS 40
Slide 41: Burberry Gaining Share
BURBERRY GAINING SHARE +0.8 pts +1.1 pts +0.4 pts +0.4 pts +1.0 pts +0.2 pts +0.1 pts +0.0 pts +0.1 pts +0.4 pts -0.3 pts +0.1 pts -0.3 pts +0.0 pts SOURCE: Retail Panel (NPD) - EUR5+NA P3M Ending Dec 23 DATA - Selective Distribution (US – TMM)
Slide 42: #10 Worldwide Fragrance Brand
#10 WORLDWIDE FRAGRANCE BRAND < 5 YEARS SINCE FIRST COTY LAUNCH BURBERRY BEAUTY SALES >2X HIGHER THAN 2019 1 1 1H FY24 vs 1H FY19
Slide 43: Hugo Boss Gaining Share
HUGO BOSS GAINING SHARE +0.2 pts +0.1 pts +0.1 pts +0.8 pts +0.3 pts +0.4 pts Source: Retail Panel (NPD) - EUR5+NA P3M Ending Dec 23 DATA - Selective Distribution (US – TMM) 43
Slide 44: Chloé Gaining Share
CHLOÉ GAINING SHARE +0.1 pts +0.2 pts +0.1 pts* SOURCE: Retail Panel (NPD) - EUR5+NA P3M Ending Dec 23 DATA - Selective Distribution (US – TMM); Retail Panel (Beaute Research) - *CHINA Sep-Dec 23 DATA - e-com included, Sephora included 44
Slide 45: CY24: Continuing to Introduce Key Innovations
CY24: COTY CONTINUING TO INTRODUCE KEY INNOVATIONS GEN Z FOCUSED ENTRY EXTENSION UNDER TOP MARC JACOBS DAISY WILD PREMIUM FEMALE SELLING FEMALE LAUNCHING NOW FRAGRANCE IN 2H FY24 FRAGRANCE PILLAR 45
Slide 46: Premiumizing Prestige Fragrance While Growing Volumes
COTY CONTINUES TO PREMIUMIZE ITS PRESTIGE FRAGRANCE BUSINESS WHILE STILL GROWING VOLUMES ~55% 52% 49% EDT EDP / Parfum / Elixir / Other 46% (pricing >30% above EDT) ~45% 48% 51% 54% FY21 FY22 FY23 FY24E 46
Slide 47: Premiumizing in Prestige Fragrance: Ultra Premium Sales
COTY CONTINUES TO PREMIUMIZE IN PRESTIGE FRAGRANCE ULTRA PREMIUM FRAGRANCE SALES ACCELERATING THROUGH FY27 AND BEYOND AS WE CAPTURE OUR FAIR MARKET SHARE OF >10% > $200 M > $80 M FY20 FY21 FY22 FY23 FY24E FY27E 47
Slide 48: New Brands Further Strengthen & Balance the Portfolio
NEW BRANDS FURTHER STRENGTHEN & BALANCE THE PORTFOLIO TIMELESS ICONS SIGNATURE EFFERVESCENT & PLAYFUL DISTRIBUTION SCALE New license 48
Slide 49: Italian Fashion Brand License
Italian Premium+ Entered fashion positioning, ~20 year brand with strength license founded in in EU & agreement 1968 Japan 49 49 49
Slide 50: Italian Fashion Brand License Extension
Premium/ Entered Italian Premium+, license fashion with strength agreement brand in Asia & EU that extends founded in amongst younger beyond 1994 consumers 2040 50 50 50
Slide 51: Infiniment Coty Paris
INFINIMENT COTY PARIS
Slide 52: Prestige Make-up: Expanding Distribution, Productivity & Assortment
PRESTIGE MAKE-UP: STEADILY EXPANDING DISTRIBUTION, PRODUCTIVITY & ASSORTMENT 5252
Slide 53: Kylie Resonating with Consumers Across the Globe
KYLIE RESONATING WITH CONSUMERS ACROSS THE GLOBE #1 Indie On track for makeup >250 brand in TR Travel Retail Americas, doors in FY24 and #2 in TR Europe 5353
Slide 54: All Brands Fueling Growth in Prestige Cosmetics
ALL BRANDS FUELING GROWTH IN PRESTIGE COSMETICS Makeup DD % growth reaching Gucci in LFL in Coty 30-40% of Top 10 in Prestige China brand Asia in Lip makeup sales sales1 for and Face in Q2 Burberry and Powders Gucci 1 1H24 54
Slide 55: Marc Jacobs Beauty Comeback
MARC JACOBS BEAUTY COMEBACK
Slide 56: Skincare
#3 SKINCARE SIGNIFICANT WHITE SPACE OPPORTUNITY IN MID-TO-LONG TERM, ENABLED BY COTY'S TECHNOLOGY AND BRANDS
Slide 57: Reinventing Skincare for the 21st Century Since 1948
REINVENTING SKINCARE FOR THE 21ST CENTURY SINCE 1948 50+ YEARS 1948 1976 2003 2015 2022 2023 Sun Light Stem Cell based skincare Retinol patent DNA repair Genetic & Epigenetic Sun Repair Omnipotent Serum Protection 45+ YEARS PREPARING FOR NEXT GEN Retinol SKIN INNOVATION Vectorization 1971 1993 2008
Slide 58: A Portfolio Set Up for Success
A PORTFOLIO SET UP FOR SUCCESS ULTRA-PREMIUM DESIGNERS’ SKIN CARE DESIGNER BRANDS Skincare Skincare PRESTIGE PREMIUM CELEBRITY-DRIVEN DERMATOLOGICAL / CLEAN SKIN ENTRY PRESTIGE CELEBRITY-DRIVEN INGREDIENT-LED ENTRY SKINCARE BODYCARE 58
Slide 59: Building Momentum in Skincare: Lancaster
BUILDING MOMENTUM IN SKINCARE: LANCASTER 59
Slide 60: Philosophy
philosophy dermatologic wisdom" GROOMING sc, ele AWARDS dor dom = 2023 dose, of wisdom
Slide 61: Building Momentum in Skincare: Orveda
BUILDING MOMENTUM IN SKINCARE: ORVEDA 61 61
Slide 62: Retail Excellence and E-Commerce Is Our Future
RETAIL EXCELLENCE AND E-COMMERCE IS OUR FUTURE Ulta Department stores + Chains Maisons & High QVC & E-retailers/ end perfumeries Pure players + DTC E-retailers & Pure players Selective e-retailers + DTC 62
Slide 63: Accelerating Skincare
ACCELERATING SKINCARE Global launch of the Accelerate Philosophy Build Lancaster as a world’s leading ultra- in the US, upgrade UV & skincare expert with premium green science packaging & formula focus on Asia & Europe skincare line 3rd Door consecutive Q 3rd productivity of YoY growth; consecutive
Slide 64: Orveda House Grand Opening Shanghai
OIRVEVWA Orveda House Grand Opening Shanghai BR RIA | BRA A
Slide 65: Step Changing Organizational Capabilities
#4 STEP CHANGING ORGANIZATIONAL CAPABILITIES DIGITAL AND R&D
Slide 66: Coty Prestige Booming E-Commerce Business
COTY PRESTIGE BOOMING E-COMMERCE BUSINESS 1H24 SALES 28% ECOM RANKED #2 AND GROWTH PENETRATION GAINING MARKET +25% LFL SHARE 35% +1.3pt growth +0.5pt LFL Nov P3M contribution Source: Cicana. L3M and L12M through Nov 2023 Prestige Market defined as US + CA + UK + DE + IT + FR + ES Excludes non author
Slide 67: Coty Consumer Beauty Booming E-Commerce Business
COTY CONSUMER BEAUTY BOOMING E-COMMERCE BUSINESS 1H24 SALES 11% ECOM MARKET SHARE GROWTH PENETRATION GAINS +29% LFL 32% +1.5pt growth +0.6pt LFL Nov P3M contribution Source: Cicana. L3M and L12M through Nov 2023 Prestige Market defined as US + CA + UK + DE + IT + FR + ES Excludes non authorized sell
Slide 68: Coty's Leading Expertise & IP in Beauty
COTY’S LEADING EXPERTISE & IP IN BEAUTY FRAGRANCES COLOR COSMETICS SKINCARE 180+ 50+ Active patents & patent 80+ applications Active patents & patent applications Active patents & patent applications Published scientific Years of expertise 160+ Years of expertise in Color Cosmetics 85+ studies 120+
Slide 69: Significant Step-Change in R&D Spend in Next Few Years
SIGNIFICANT STEP-CHANGE IN R&D SPEND IN NEXT FEW YEARS NEW SLIDE 1.6x in next 3-4 years >$170M $105M $97M $97M FY 2021 FY 2022 FY 2023 FY 2027 69 69
Slide 70: Travel Retail, China and Emerging Markets
#5 TRAVEL RETAIL, CHINA AND EMERGING MARKETS THE NEXT PHASE OF OUTSIZED GROWTH
Slide 71: Booming and Multi-Category Travel Retail Business
BOOMING AND MULTI-CATEGORY TRAVEL RETAIL BUSINESS Coty Travel Retail Coty Travel Retail revenues grew sales ~25% LFL 1 Travel Retail >30% YoY in above 2019, ~8% of Accretive international traffic Gross Margin FY23 and >20% slightly below FY19 Coty sales in 1H FY24 levels 1 1H24 vs. 1H19 71
Slide 72: Coty #2 in Travel Retail and Gaining Market Share
COTY #2 IN TRAVEL RETAIL AND GAINING MARKET SHARE CY23 COTY REVENUES OUTPERFORMING PERFUMES & COSMETICS CATEGORY AMERICAS +34% LFL YoY vs. Category EMEA +19% +31% LFL YoY vs. Category APAC +24% +19% LFL YoY vs. Category -8% 72 Americas and EMEA trends through November 2023; APAC trends through Septe
Slide 73: On Track to Reach >$600M Travel Retail Sales by FY25
ON TRACK TO REACH OUR TARGET OF >$600M IN TRAVEL RETAIL SALES BY FY25, A YEAR AHEAD OF PLAN 7373
Slide 74: Coty Gaining Share in China
COTY GAINING SHARE IN CHINA In Q2, 1HFY24 Prestige Coty Prestige China revenues up significantly LSD % of Coty ~20% LFL, outgrew the market revenues, with gross with growth in at+27% margin ~70% mainland and vs. prestige beauty Hainan -3% 74
Slide 75: Establishing Strong Footprint in Key Emerging Markets
COTY ESTABLISHING STRONG FOOTPRINT IN 5 KEY EMERGING MARKETS BRAZIL MEXICO SOUTH AFRICA SAUDI ARABIA INDIA $23B Beauty & Personal Care FASTEST $4.5BN $600M 4 $4.3BN 4 1 Growing and largest Total Africa beauty Prestige beauty market Beauty market led by market 2 luxury market in LATAM market ; $0.5B
Slide 76: ESG: Progress Towards Sustainability Leadership
#6 ESG PROGRESS TOWARDS SUSTAINABILITY LEADERSHIP
Slide 77: Committed to Net-Zero Aligned Targets
PLANET: COMMITTED TO SETTING NET-ZERO ALIGNED TARGETS AND SIGNIFICANT PROGRESS IN OUR OWN OPERATIONS ZERO WASTE TO LANDFILL AND COMMITTED TO SETTING SURPASSED RECYCLING RATE TARGET (84%) NET-ZERO ALIGNED FROM OUR FACTORIES AND TARGETS DISTRIBUTION CENTERS ALL OUR OWNED SUPPLY CHAIN SITES USE 100% RE
Slide 78: Sustainable Innovation Across Portfolio
PRODUCT: SUSTAINABLE INNOVATION ACROSS CONSUMER BEAUTY AND PRESTIGE PORTFOLIO INFINIMENT COTY PARIS is Coty’s In FY24, we are first full fragrance collection using introducing carbon-based launch acceptance 100% CARBON- CAPTURED ALCOHOL criteria for new innovations in partnership with LanzaTech We a
Slide 79: DE&I Is Driving Coty Culture and Business
PEOPLE: DE&I IS DRIVING COTY CULTURE AND BUSINESS TAKING A STAND MAJORITY NEW PURPOSE, VISION & VALUES UNDERLINED BY FEMALE EXECUTIVE COMMITTEE ADVOCACY PROGRAM TO AND BOARD #UNDEFINEBEAUTY GENDER NEUTRAL MAINTAINED OUR COMMITMENT ON PARENTAL LEAVE GENDER PAY EQUITY GLOBAL MINIMUM OF 14 WEEKS 79
Slide 80: Strong Financial Progress
03 STRONG FINANCIAL PROGRESS
Slide 81: Strong Value Accretion
STRONG VALUE ACCRETION ~12% ~12-13% LFL CAGR CAGR ~9x ~$1,080M to ~$0.44 – ~$6.05 – ~$973M $1,090M $0.47 ~$5.6B $6.15B $0.38 ~$5.3B ~$905M ~$4.6B ~$762M $0.28 $0.05 FY21 FY22 FY23 FY24E FY21 FY22 FY23 FY24E FY21 FY22 FY23 FY24E NET REVENUES ADJUSTED EBITDA ADJUSTED EPS Adjusted EPS excludes mark-to-
Slide 82: Strong Margin Expansion
STRONG MARGIN EXPANSION UP UP UP ~400 bps ~ 500 bps ~450 bps MODEST EXPANSION YOY ~63.9% ~13.3% ~14% HIGH ~63.7% ~28% ~27% 20 % ~11.6% RANGE ~60.0% ~22% ~9.4% FY21 FY22 FY23 FY24E FY21 FY22 FY23 FY24E FY21 FY22 FY23 FY24E ADVERTISING & ADJ. GROSS MARGIN ADJ. OPERATING MARGIN CONSUMER PROMOTION 82
Slide 83: Strong Cash Generation and Deleveraging
STRONG CASH GENERATION AND DELEVERAGING DOWN ~4X Roughly ~$550M consistent ~$403M with FY23 >$100M Benefit ~6.8x From ~2x leverage Wella adjusted for TSA ~4.7x Wella stake sale ~$145M Exit ~4.1x and 1x ~3x WC benefits FY21 FY22 FY23 FY24E FY21 FY22 FY23 CY23 FREE CASH FLOW LEVERAGE 83
Slide 84: FY21-FY25E Savings Totaling ~$800M
FY21-FY25E SAVINGS TOTALING ~$800M BREAKDOWN OF SAVINGS (FY24) EXAMPLES OF COST REDUCTION Revamp of Strategic Revenue Management Trade Fixed Trade program and consolidation in key global Investment Costs Investment markets 17% 17% Continuous improvement / Material Value COGS Analysis $110-120M 23% S
Slide 85: Reiterating FY24 Guidance
REITERATING FY24 GUIDANCE REVENUE LFL FY24 REVENUES OF +9-11% LFL, WITH OUTPERFORMANCE BY PRESTIGE NEUTRAL TO 2% BENEFIT FROM FX PRIMARILY IN 1H24, AND 1-2% HEADWIND REPORTED REVENUE IMPACTS FROM THE DIVESTITURE OF LACOSTE LICENSE PRIMARILY IN 2H24 ADJ GROSS MARGIN MODEST EXPANSION YOY ADJ EBITDA MA
Slide 86: Attractive Growth Algorithm
04 ATTRACTIVE GROWTH ALGORITHM
Slide 87: Upper End of 6-8% LFL Revenue CAGR Through FY27
UPPER END OF 6-8% LFL REVENUE CAGR THROUGH FY27 & BEYOND BALANCED CONTRIBUTION FROM VOLUME, MIX AND TARGETED PRICING #3 $7.4-7.7bn #2 #2 15-25% CAGR #1 10-20% CAGR --- Portfolio HSD % Growth --- expanding ~$6.1bn vs. Mkt of MSD- Focus on steady through typical MSD % Growth HSD% and profitable S-curv
Slide 88: Shifting Portfolio to Capture Key Beauty Growth Areas
SHIFTING PORTFOLIO TO CAPTURE KEY BEAUTY GROWTH AREAS 7% 7% MSD % 6% HSD % 8% FY19 FY23 FY27 REVENUE MIX 52% 25% Mid- REVENUE MIX Low AMBITION 50s % ex WELLA 55% 20% 29% 4% HSD % 3% MSD % 4% PRESTIGE PRESTIGE PRESTIGE & CONSUMER CONSUMER BEAUTY CONSUMER BEAUTY BODY CARE FRAGRANCES COSMETICS BEAUTY S
Slide 89: Upper End of 6-8% LFL CAGR Through FY27 & Beyond
UPPER END OF 6-8% LFL CAGR THROUGH FY27 & BEYOND WITH OUTSIZED GROWTH FROM TRAVEL RETAIL, CHINA AND EM’S $7.4-7.7bn MSD HSD CAGR CAGR LDDs CAGR ~$6.1B >2x driven by MSD-HSD Prestige CAGR FY24E U.S. China Travel Rest of Rest of FY27E FY27E & Retail APAC World Beyond 89
Slide 90: Capturing Key Beauty Growth Markets
CAPTURING KEY BEAUTY GROWTH MARKETS MSD- 8% 6% HSD% 8% ~10% 8% 27% 20% ~30% 17% 4% 17% 31% MSD- 3% HSD% FY19 FY23 FY27 REVENUE MIX 17% REVENUE MIX AMBITION 18% ex WELLA ~16% 80% 83% 83% 27% 9% HSD% ~23% 9% 24% E-Com Mix High Single Digit % High Teens % Mid Twenties % (Total Coty) North America W. Eu
Slide 91: Accelerating Sales and Profit Momentum
ACCELERATING SALES AND PROFIT MOMENTUM FY23 FY24E FY25-27E FY28 & Beyond +9-11% LFL Upper end of NET REVENUES $5.55B +6-8% LFL CAGR +6-8% LFL CAGR Mid to high 60s % GROSS MARGIN 63.9% Modest Expansion Expanding by ‘27 EBITDA $973M $1,080 – 1,090M +9-11% CAGR +9-11% CAGR TAX RATE ~26% ~30% Mid-to-Hig
Slide 92: Steady Reduction in Leverage
STEADY REDUCTION IN LEVERAGE FY23 FY24E FY27E ADJ EBITDA $973M $1,080– 1,090M $1.4Bn - $1.5Bn 1X CASH COSTS ~$60M NM NM CASH INTEREST ~$230M Mid $200s Mid $100s CASH TAXES ~$60M <$200M <$200M CAPEX ~$223M Mid $200s ~$300M FREE CASH FLOW ~$403M ~$400M >$500M ~2.5x by CY24 LEVERAGE RATIO 4.1x 3.1x in
Slide 93: Strengthening Capital Structure to Enable Deleveraging and Capital Returns
STRENGTHENING CAPITAL STRUCTURE TO ENABLE DELEVERAGING AND CAPITAL RETURNS CY23 CY24-CY25 CAPITAL ALLOCATION BY END OF CY25 CY27 (Cumulative) PRIORITIES Net Debt Net Debt Deleverage <$2.5B Financial ~$3.3B FCF Leverage Cash Returns to Financial >$0.8B Shareholders Leverage ~2x Financial (at least $0
Slide 94: Key Messages
KEY MESSAGES • Coty has continued to outperform the beauty market over the last 3+ years • Beauty demand remains robust across markets and categories • Coty continues to grow in a profitable way while steadily premiumizing the portfolio • Capturing white space opportunities: • Near term: premium and
Slide 95: Appendix
APPENDIX 1904
Slide 96: CoverGirl Has Outstanding Equity Strength in U.S.
COVERGIRL HAS OUTSTANDING EQUITY STRENGTH IN U.S. COVERGIRL EQUITY SCORE 27% ABOVE ELF COVERGIRL COVERGIRL EQUITY SCORE EQUITY SCORE 3% ABOVE IN LINE WITH LÓREAL PARIS MAYBELLINE Source: KANTAR 2023 | 18-65 YR *DEMAND POWER STUDY 96
Slide 97: Rimmel Has Outstanding Equity Strength in UK
RIMMEL HAS OUTSTANDING EQUITY STRENGTH IN UK STRONGER THAN THE COMPETITION RIMMEL RIMMEL EQUITY SCORE EQUITY SCORE 6% ABOVE 166% MAYBELLINE ABOVE ELF RIMMEL EQUITY SCORE RIMMEL ~130% EQUITY SCORE ABOVE AVG. ~30% AVERGE ALL ADULTS 18-35 Source: KANTAR 2023 | 18-65 YR *DEMAND POWER STUDY 97
Slide 98: Yummy Gloss Is the #1 Mass Lip Launch in the U.S.
ACCELERATING TRACK RECORD OF VIRAL INNOVATIONS: YUMMY GLOSS IS THE #1 MASS LIP LAUNCH IN THE U.S. #1 $16M IN SALES LIFE-TO-DATE LIP LAUNCH IN U.S. STRONG MASS LAUNCH DROVE IN CY23 COVERGIRL’S SHARE More text +130 bps IN LIP UP 98
Slide 99: TikTok Continues to Drive Fragrance Penetration
TIKTOK CONTINUES TO DRIVE FRAGRANCE PENETRATION 5.5B views +26% #PERFUME CONVERSATIONS ON 524M views +49% 429M views +41% #2 RANKED BEAUTY PLATFORM 251M views +44% 162M views 162M views 151M views 142M views +23% +59% +19% +69% 97M views +30% 41M views 5M views +23% +69% Source: TikTok views 99
Slide 100: Coty Awarded Douglas E-Com Category Captain
COTY AWARDED DOUGLAS “E-COM CATEGORY CAPTAIN” FOR INNOVATIVE OMNI-CHANNEL KCP CAMPAIGNS AUTUMN CAMPAIGN France, Germany, Austria, Switzerland, Netherlands SINGLES' DAY CAMPAIGN France, Germany, Austria, Switzerland, Netherlands, Italy XMAS CAMPAIGN France, Germany, Austria, Switzerland, Netherlands,
Slide 101: Disclaimer
DISCLAIMER Forward-Looking Statements Certain statements in this presentation are forward-looking statements. These forward-looking statements reflect the Company's current views with respect to, among other things, strategic planning, targets and outlook for future reporting periods (including the