Coty Inc. · NYSE:COTY

Coty — Evercore ISI Consumer & Retail Conference 2024

23 slides from Coty's conference presentation, Jun 13, 2024

  1. Slide 1: Evercore ISI Consumer & Retail Conference

    EVERCORE ISI CONSUMER & RETAIL CONFERENCE June 13, 2024 1

  2. Slide 2: Beauty: Only U.S. Consumer Sector to Grow Units in 2023

    BEAUTY: ONLY U.S. CONSUMER SECTOR TO GROW UNITS IN 2023 TOTAL RETAIL UNIT PERFORMANCE BY INDUSTRY Unit Percentage Change YoY CY23 Prestige Beauty 13% Mass Beauty 1% Foodservice 0% Retail Food & Beverage -1% Other Consumables -1% Healthcare -2% Auto -3% Home Textiles -3% Homecare -3% Books -3% Office

  3. Slide 3: Global Beauty Demand Maintains Strong Momentum

    GLOBAL BEAUTY DEMAND MAINTAINS STRONG MOMENTUM ~15% ~11% ~10% ~6% 1HFY24 3QFY24 1HFY24 3QFY24 GLOBAL PRESTIGE GLOBAL MASS BEAUTY FRAGRANCES MARKET 1 MARKET 1 APRIL GLOBAL CATEGORY TRENDS BROADLY CONSISTENT WITH CONSISTENT WITH RECENT QUARTERS 1 Period: 1HFY24 = July 2023 – December 2023; 3QFY24 = Ja

  4. Slide 4: Prestige Fragrance Usage and Buying Habits Continue to Increase in U.S.

    PRESTIGE FRAGRANCE USAGE AND BUYING HABITS CONTINUE TO INCREASE IN U.S. +5 MILLION ADDITIONAL FRAGRANCE BUYERS 1 YEAR-OVER-YEAR +6% INCREASE IN FRAGRANCE 1 BUYERS YEAR-OVER-YEAR 1 Circana/Checkout Omnipanel Tracking, Annual 2023. Prestige only. Excludes BBW and Victoria’s Secret. Base Age 18+ All fi

  5. Slide 5: Fragrance Usage and Buying Habits Continue to Increase

    FRAGRANCE USAGE AND BUYING HABITS CONTINUE TO INCREASE MORE TOTAL MORE U.S. “HEAVY” USERS GEN Z “HEAVY” USERS 49% OF U.S. CONSUMERS 61% OF U.S. GEN Z CONSUMERS USE FRAGRANCES USE FRAGRANCES 3+ TIMES / WEEK, 3+ TIMES / WEEK, 1 1 UP FROM 47% IN CY22 UP FROM 53% IN CY22 1 Circana Fragrance Consumer Rep

  6. Slide 6: Prestige Fragrance Market Continues to Grow Very Strongly in Value and Units

    PRESTIGE FRAGRANCE MARKET CONTINUES TO GROW VERY STRONGLY IN BOTH VALUE AND UNITS IN U.S. AND EUROPE VALUE +98% VALUE +35% UNITS +44% UNITS +9% (3Q24 VS. 3Q19) (3Q24 VS. 3Q19) Source: Retail Panel (NPD) – EUR5+NA+MX Ending Mar24 Data- Selective Distribution (US – TMM) 6

  7. Slide 7: U.S., China and Developing Markets 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 7

  8. Slide 8: Coty's Multi-Year Track Record of Top-Ranking Innovations

    COTY’S MULTI-YEAR TRACK RECORD OF TOP-RANKING INNOVATIONS FY21 FY22 FY23 FYTD24 #1 FEMALE INNOVATION #1 INNOVATION #3 INNOVATION #1 INNOVATION TOP 5 FEMALE INNOVATION TOP 5 INNOVATION #3 MALE INNOVATION #1 MALE INNOVATION #2 FEMALE INNOVATION TOP 6 MALE INNOVATION #2 MALE INNOVATION (CYTD) #1 MALE I

  9. Slide 9: Coty Building Sustained Growth Through Innovation + Extension Strategy

    COTY BUILDING SUSTAINED GROWTH THROUGH INNOVATION + EXTENSION STRATEGY FRAGRANCE TOTAL LINE SELL-OUT BY CALENDAR YEAR CY18 CY21 CY22 CY23 CY21 CY22 CY23 CY20 CY21 CY22 CY23 BURBERRY HER BURBERRY HERO GUCCI FLORA Source: Circana NA CY23 Source: Circana EUR4+NA Source: Circana EUR5+NA CY23 9

  10. Slide 10: Coty Building Sustained Growth Through Innovation + Extension Strategy

    COTY BUILDING SUSTAINED GROWTH THROUGH INNOVATION + EXTENSION STRATEGY FRAGRANCE TOTAL SALES BY CALENDAR YEAR CY23 CY24E BURBERRY GODDESS 10

  11. Slide 11: Long-Structured Portfolio Built for Success

    LONG-STRUCTURED PORTFOLIO BUILT FOR SUCCESS ➢ LICENSING MODEL COMPLEMENTS OWNED-BRAND % of Sales STRATEGY WITH A HIGHER ROIC / LOWER RISK STRUCTURE FOR BRAND BUILDING License (~4 years) ~85% OF THE PORTFOLIO OWNED OR UNDER LONG- Owned TERM LICENSE (>6 YEARS OR EFFECTIVELY PERPETUAL) License (6-9 yea

  12. Slide 12: Top-Notch Beauty Capabilities Driving Robust Performance Across Key Prestige Brands

    COTY’S TOP-NOTCH BEAUTY CAPABILITIES DRIVING ROBUST PERFORMANCE ACROSS KEY PRESTIGE BRANDS CY23 LFL REVENUE GROWTH >30% YoY ➢ ALL BRANDS AT OR BELOW ~10% +15-30% YoY OF SALES IN CY23 ➢ COTY DELIVERING >10% GROWTH +10-15% YoY ACROSS MOST BRANDS EVEN AS THE RESPECTIVE FASHION BRANDS SEE MUTED GROWTH O

  13. Slide 13: Fuelling Success in Our Brazil Business

    FUELLING SUCCESS IN OUR BRAZIL BUSINESS TOTAL BRAZIL SALES SALES OF COTY’S LOCAL HSD% MASS BEAUTY BRANDS OF COTY'S SALES FYTD 1.6x HIGHER VS. FY19 COTY’S STRONG MARKET POSITION AND SHARE EXPANSION: NAIL 32.2% SHARE, +190bps VS FY21 SKINCARE 6.4% SHARE, +160bps VS FY21 SHOWER GELS 2.5% SHARE, +250bps

  14. Slide 14: Fuelling Success in Brazil – Unlocking Mass & Prestige Fragrance Opportunity

    FUELLING SUCCESS IN OUR BRAZIL BUSINESS – UNLOCKING MASS & PRESTIGE FRAGRANCE OPPORTUNITY SIZEABLE FRAGRANCE MARKET AMONGST THE HIGHEST >$2B, FRAGRANCE PENETRATION WITH MAJORITY IN DIRECT LEVELS OF SELLING BUT RETAIL GROWING ~68% RAPIDLY COTY EXPANDING IN BOTH MASS AND PRESTIGE FRAGRANCES: MASS FRAG

  15. Slide 15: Next Steps: Leveraging Brazilian Capabilities to Enter Additional 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

  16. Slide 16: Building Momentum in Skincare: Lancaster

    BUILDING MOMENTUM IN SKINCARE: LANCASTER LANCASTER GREW >20% LFL FYTD 16

  17. Slide 17: Building Momentum in Skincare: Philosophy

    BUILDING MOMENTUM IN SKINCARE: PHILOSOPHY PHILOSOPHY SKINCARE GREW +DD % FYTD 17

  18. Slide 18: Building Momentum in Skincare: Orveda

    BUILDING MOMENTUM IN SKINCARE: ORVEDA ORVEDA FYTD PRODUCTIVITY GROWING 3-5X YOY 18 18

  19. Slide 19: Coty Continuing to Expand in New Channels and Categories

    COTY CONTINUING TO EXPAND IN NEW CHANNELS AND CATEGORIES ~20% ~9% FYTD Coty’s PENETRATION Coty’s GLOBAL REVENUE FYTD E-COMMERCE TRAVEL RETAIL MIX channel grew channel grew ~20% LFL >20% FYTD LFL FYTD ~4% Coty’s ~3% ~1% Coty’s FYTD FYTD Coty’s NICHE FYTD REVENUE PRESTIGE REVENUE REVENUE SKINCARE FRAG

  20. Slide 20: Coty Continuing to Expand in Growth Engine Markets

    COTY CONTINUING TO EXPAND IN GROWTH ENGINE MARKETS Growth engine Coty’s growth markets now engine markets account for grew ~18% >20% LFL of Coty’s sales in Q3 and FYTD NORTH ASIA CHINA MEXICO AFRICA SOUTHEAST ASIA BRAZIL & INDIA LATAM 20

  21. Slide 21: Upper End of 6-8% LFL Revenue CAGR Through FY27 & Beyond

    UPPER END OF 6-8% LFL REVENUE CAGR THROUGH FY27 & BEYOND BALANCED CONTRIBUTION FROM VOLUME, MIX AND TARGETED PRICING $7.4-7.7bn 15-25% CAGR 10-20% CAGR --- Portfolio HSD % Growth --- expanding ~$6.1bn vs. Mkt of MSD- Focus on steady through typical MSD % Growth HSD% and profitable s-curve cycle led

  22. Slide 22: Since 1904

    SINCE 1904

  23. Slide 23: 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

Coty — Evercore ISI Consumer & Retail Conference 2024 on 6ix