Slide 1: Second Quarter FY19 Financial Results
SECOND QUARTER FY19 FINANCIAL RESULTS February 8, 2019
Slide 2: 2Q19 and 1H19 Net Revenues
2Q19 AND 1H19 NET REVENUES IMPROVED LFL TRENDS IN Q2 ON A REPORTED AND UNDERLYING BASIS • 2Q19 Net Revenue LFL +0.7%, or ~(1.1%) when excluding temporary factors, including: Burberry included in LFL base Benefit from revenue recognition U.S. Hurricane-related shipment shift into Q2 Moderatio
Slide 3: Supply Chain Disruption
SUPPLY CHAIN DISRUPTION ~$150M OF NET REVENUE IMPACT SEEN IN 1H19, WITH +$90M OF LOST PROFIT Luxury warehouse Shipment backlog cleared and capacity constraints effectively resolved Consumer Beauty Cosmetics service levels nearing normalized levels; will Planning Center be resolved in 3Q19 Profession
Slide 4: Luxury 2Q19 Results
LUXURY 2Q19 RESULTS SUSTAINED MID SINGLE DIGIT UNDERLYING GROWTH • 2Q19 Net Revenue LFL +10.8%, or up ~5.3% when excluding temporary factors 1H19 Net Revenue LFL and underlying LFL of +5.0% • 2Q19 adjusted operating income of $177M (+41% YoY), reaching 17.4% adjusted operating margin • Strong grow
Slide 5: Luxury Highlights
LUXURY HIGHLIGHTS COTY 6
Slide 6: Professional Beauty 2Q19 Results
PROFESSIONAL BEAUTY 2Q19 RESULTS SUPPLY CHAIN DISRUPTION MASKED SOLID LOW SINGLE DIGIT UNDERLYING GROWTH • 2Q19 Net Revenue LFL (0.8%), or growth of ~1.5% when excluding temporary supply chain headwinds 1H19 Net Revenue LFL of (1.6%) or underlying growth of ~1.4% LFL Disproportionate impact on O
Slide 7: Professional Beauty Highlights
PROFESSIONAL BEAUTY HIGHLIGHTS 7
Slide 8: Consumer Beauty 2Q19 Results
CONSUMER BEAUTY 2Q19 RESULTS MEANINGFUL IMPROVEMENT VS 1Q19, BUT STILL MUCH WORK TO DO • 2Q19 Net Revenue LFL (7.3%), with (7.8%) LFL when excluding temporary factors 1H19 Net Revenue LFL of (10.6%), or ~(9.0%) underlying LFL Underlying net revenue consistent with sell- out, moderation in share
Slide 9: Consumer Beauty Highlights
CONSUMER BEAUTY HIGHLIGHTS 9
Slide 10: 2Q19 and 1H19 Profit and EPS
2Q19 AND 1H19 PROFIT AND EPS ANTICIPATE A STRONG PROFIT TREND RECOVERY IN 2H19 • 60% of the business showing solid to strong performance with Consumer Beauty still facing difficulties • 2Q19 adjusted gross margin of 62.1% (+50bps YoY), with 20bps coming from underlying improvement • 2Q19 adjusted op
Slide 11: Net Debt Decrease in 2Q19 Supported by Solid Free Cash Flow
NET DEBT DECREASE IN 2Q19 SUPPORTED BY SOLID FREE CASH FLOW DELEVERAGING #1 PRIORITY, MOST IMPORTANT LEVER FOR VALUE CREATION $ Millions • Net Debt decreased by $173M in 2Q19, resulting in Net Debt / Adj. EBITDA ratio of 5.8x • Covenant adjusted leverage ratio remains below our permitted threshold •
Slide 12: FY19 Outlook & Priorities
FY19 OUTLOOK & PRIORITIES • Focused on building medium term plans with a focus gross margin, adjusted operating income and free cash flow • Expect a profit trend recovery in the second half of FY19 • Expect that FY19 constant currency adjusted operating income will be moderately below FY18 result of
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Slide 14: 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 targets and outlook for future reporting periods (including the exte
Slide 15: QTD Reconciliation of Reported to Underlying NR and Adjusted Operating Income
QTD RECONCILIATION OF REPORTED TO UNDERLYING NR & REPORTED TO UNDERLYING ADJUSTED OPERATING INCOME *Refer to the February 8, 2019 Earnings Release for the full reconciliation of Reported Operating Loss to Adjusted Operating Income. Supply chain impacts are calculated on the basis of estimated lost n
Slide 16: YTD Reconciliation of Reported to Underlying NR and Adjusted Operating Income
YTD RECONCILIATION OF REPORTED TO UNDERLYING NR & REPORTED TO UNDERLYING ADJUSTED OPERATING INCOME *Refer to the February 8, 2019 Earnings Release for the full reconciliation of Reported Operating Loss to Adjusted Operating Income. Supply chain impacts are calculated on the basis of estimated lost n