Coty Inc. · NYSE:COTY
Coty — Deutsche Bank Global Consumer Conference 2022
16 slides from Coty's conference presentation, Jun 14, 2022
Slide 1: DB Conference Presentation
DB CONFERENCE PRESENTATION June 14, 2022 1
Slide 2: A Portfolio of Iconic Brands
A PORTFOLIO OF ICONIC BRANDS ULTRA PREMIUM PREMIUM + PREMIUM MASS 2
Slide 3: Iconic Brands Gaining Share in Prestige & Consumer Beauty
ICONIC BRANDS GAINING SHARE IN PRESTIGE & CONSUMER BEAUTY PRESTIGE FRAGRANCE SHARE MASS COSMETICS SHARE (Jan-March 2022) (April 2022) Source (Prestige): NPD Retail Panel EUR5+NA P3M ending March 2022 // Beaute Research Q1 CY22 Sell-Out data including E-commerce Source (Consumer Beauty): NielsenIQ: M
Slide 4: Strong Progress YTD, With FY22 Outlook Re-affirmed
STRONG PROGRESS YTD, WITH FY22 OUTLOOK RE-AFFIRMED 3Q FYTD Q4 / FY22 GUIDANCE Q4 LFL LFL Sales Sales +17% Low double digit growth Adj Gross FY22 Adj Margin EBITDA 64.2% / +450 bps YoY $900M FY22 Adj FCF EPS >$600M $0.23-0.27 Leverage FY22 FCF ~4.7x >$400M 4
Slide 5: Coty's Leading Positions in Key Markets
COTY’S LEADING POSITIONS IN KEY MARKETS #3 #1 #5 #1* Color #1* #4 #8 Cosmetics #3* #8 #2^ Body Care & Fragrances #5 *Ranking in nail category ^Female deodorant and body lotion ranking 5 Note: Body care defined as shower and deodorant
Slide 6: Cutting-Edge Technologies on Key Beauty Trends
CUTTING-EDGE TECHNOLOGIES ON KEY BEAUTY TRENDS LONG WEAR SKINIFICATION BOLD MAKE UP “Climate change” “Care as you wear” “Transformative” CLEAN & SUSTAINABLE BEAUTY 6
Slide 7: Fragrance Demand Continues to Boom
FRAGRANCE DEMAND CONTINUES TO BOOM GROWING E-COM US & CHINA & PREMIUMIZATION SOCIAL BUZZ MOMENTUM RETURN TO B&M 7
Slide 8: U.S. Fragrance Penetration Drivers
U.S. FRAGRANCE PENETRATION DRIVERS GEN Z HISPANICS MEN +3pt Increase in Highly engaged Growth x1.2 vs that Share of Users in Fragrances of women 2021 vs PY P12M as of April 2022 8
Slide 9: Fragrances Premiumizing Globally
FRAGRANCES PREMIUMIZING GLOBALLY ULTRA PREMIUM FRAGRANCES March 2022 LTM growth vs Total Market growth vs Total Market of market of market 9
Slide 10: Higher Concentration EDP's Gaining Across Markets
HIGHER CONCENTRATION EDP’S GAINING ACROSS MARKETS Eau De Parfum weight in Total Juices (%) Total Juices +15% Total Juices +3% +2.2pt +2.2pt 58% 59% 56% 57% CY20 TOTAL CY21 TOTAL CY20 TOTAL CY21 TOTAL Total Juices +12% Total Juices +32% +1.5pt +1.3pt 59% 57% 57% 56% CY20 TOTAL CY21 TOTAL CY20 TOTAL C
Slide 11: Global Fragrance Boom: A >$1B Incremental Opportunity for Coty
GLOBAL FRAGRANCE BOOM: A >$1B INCREMENTAL OPPORTUNITY FOR COTY U.S. FRAGRANCE MARKET COULD X2 U.S. FINE FRAGRANCE PENETRATION ~EU LEVELS ADDITIONAL MARKET COTY’S FAIR SHARE POTENTIAL SALES <30% >45% +$6 Bn +$0.8 Bn CHINA FRAGRANCE MARKET COULD X3 CHINA FINE FRAGRANCE PENETRATION MEDIUM TERM ADDITION
Slide 12: The Growing Couture Market Segment Confirms the Potential
THE GROWING COUTURE MARKET SEGMENT CONFIRMS THE POTENTIAL FOR GUCCI & BURBERRY WHILE INDIES FOR KYLIE COUTURE INDIES MAKEUP ESTABLISHED ARTISTS BRANDS 2014 11% 21% 27% 31% 2019 15% 24% 22% 22% 2025 21% 25% 15% 14% Source: NPD & Beaute Research panels FY data % of the market (value sales) 12
Slide 13: Coty Becoming a Key Player in Prestige Makeup
COTY BECOMING A KEY PLAYER IN PRESTIGE MAKEUP 3Q22 AND FYTD TOTAL MAINTAINING STRONG MAKEUP IS NOW PRESTIGE MAKEUP REVENUES DOOR EXPANSION ACROSS ~50% OF CHINA SALES ~2X YOY ALL BRANDS, SUPPLEMENTED FOR BOTH GUCCI BEAUTY BY E-COM AND BURBERRY FYTD GUCCI BEAUTY BURBERRY KYLIE 13
Slide 14: Our Skincare Portfolio Now Covers Key Trends and All Price Tiers
OUR SKINCARE PORTFOLIO NOW COVERS KEY TRENDS AND ALL PRICE TIERS ULTRA-PREMIUM DESIGNERS’ SKIN CARE DESIGNER BRANDS Skincare Skincare PRESTIGE PREMIUM CELEBRITY-DRIVEN GREEN / CLEAN SKIN ENTRY PRESTIGE CELEBRITY-DRIVEN INGREDIENT-LED ENTRY SKINCARE BODYCARE 14
Slide 15: Strengthening Capital Structure to Enable Deleveraging and Capital Returns
STRENGTHENING CAPITAL STRUCTURE TO ENABLE DELEVERAGING AND CAPITAL RETURNS CY23-CY25 Capital Allocation 3Q FY22 (LTM) Priorities By End of CY25 (Cumulative) Net Debt $4.2B ~75% Net Debt <$2.5B FCF >$1.2B Deleverage ($0.4B Min / year) Financial Leverage ~2x Financial Leverage ~4.7x ~25% Capital Retur
Slide 16: 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, the impact of COVID-19 and potential recovery scenarios, strategic planning, targets