Coty Inc. · NYSE:COTY
Coty — J.P. Morgan Global Luxury & Brands Conference 2024
17 slides from Coty's conference presentation, Nov 13, 2024
Slide 1: Coty Investor Presentation
COTY INVESTOR PRESENTATION JP Morgan Luxury Investor Conference November 13, 2024
Slide 2: Prestige Fragrance Market Remains Robust
PRESTIGE FRAGRANCE MARKET REMAINS ROBUST ~12% ~12% ~10% FY24 JULY + AUGUST SEPTEMBER 2 Retail Panel (NPD) – EUR5+NA+MX - Selective Distribution
Slide 3: Structural Growth Drivers: More Consumers Are Using Fragrances
STRUCTURAL GROWTH DRIVERS FOR FRAGRANCES: MORE CONSUMERS ARE USING FRAGRANCES +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+
Slide 4: Structural Growth Drivers: Consumers Using Fragrances More Often
STRUCTURAL GROWTH DRIVERS FOR FRAGRANCES: CONSUMERS ARE USING FRAGRANCES MORE OFTEN 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 C
Slide 5: Structural Growth Drivers: Consumers Expanding Fragrance Wardrobe
STRUCTURAL GROWTH DRIVERS FOR FRAGRANCES: CONSUMERS EXPANDING ‘FRAGRANCE WARDROBE’ # OF FRAGRANCES USED ON A REGULAR BASIS GEN X 3.9 UNITS GEN Z 4.2 UNITS NICHE USERS 4.8 UNITS SOURCE: U&A Fine Fragrances USA 2022 / Eternal And Kantar/ UK Kantar Consumers Panel (P12M JUNE 24) 5
Slide 6: Prestige Fragrance Market Continues to Grow in Value and Units in US and Europe
PRESTIGE FRAGRANCE MARKET CONTINUES TO GROW IN BOTH VALUE AND UNITS IN THE US AND IN EUROPE VALUE +114% VALUE +18% UNITS +73% UNITS +7% (1Q FY25 VS. 1Q FY19) (1Q FY25 VS. 1Q FY19) Source: Circana EUR5 + US; L3M ended September 2024 6
Slide 7: Fragrances Remains the Fastest Growing Prestige Beauty Category
FRAGRANCES REMAINS THE FASTEST GROWING PRESTIGE BEAUTY CATEGORY FY24 GROWTH BY CATEGORY (ENDING JUNE 30, 2024) 13.2% 12.8% 12.0% 10.3% 7.9% 6.5% 5.2% 5.1% 4.7% 3.7% -4.9% -9.2% Prestige Fragrance Prestige Skincare Prestige Makeup Total Prestige Beauty 7 Source: NPD Retail Panel (Selective Distributi
Slide 8: 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 8
Slide 9: Coty's Multi-Year Track Record of Top-Ranking Innovations
COTY’S MULTI-YEAR TRACK RECORD OF TOP-RANKING INNOVATIONS FY21 FY22 FY23 FY24 #1 FEMALE INNOVATION #1 INNOVATION #3 INNOVATION #1 INNOVATION TOP 5 FEMALE INNOVATION TOP 5 INNOVATION #3 MALE INNOVATION #1 MALE INNOVATION #3 FEMALE INNOVATION TOP 6 MALE INNOVATION #2 MALE INNOVATION (H2 FY24) #1 MALE
Slide 10: Coty Building Sustained Growth Through Innovation + Extension Strategy
COTY BUILDING SUSTAINED GROWTH THROUGH INNOVATION + EXTENSION STRATEGY FRAGRANCE TOTAL LINE SELL-OUT BY CALENDAR YEAR CY23 FY24 CY21 CY22 CY23 CY20 CY21 CY22 CY23 BURBERRY GODDESS BURBERRY HERO GUCCI FLORA Source: Circana EUR5+NA FY24 Source: Circana EUR4+NA Source: Circana EUR5+NA CY23 10
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) ~86% OF THE PORTFOLIO OWNED OR UNDER LONG- Owned TERM LICENSE (>6 YEARS OR EFFECTIVELY PERPETUAL) License (6-9 ➢ D
Slide 12: Coty Continues to Premiumize in Prestige Fragrance
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 > $70 M FY20 FY21 FY22 FY23 FY24 FY27E 12
Slide 13: Reinvigorating Lancaster Across Europe
REINVIGORATING LANCASTER ACROSS EUROPE DD% 5x Sales growth Growth in in Europe Europe EMV 13
Slide 14: Philosophy
PHILOSOPHY EMV +70% YOY (U.S. 1Q FY25) 14 14
Slide 15: La Maison Orveda NYC
LA MAISON ORVEDA NYC 15
Slide 16: Since 1904
SINCE 1904
Slide 17: Disclaimer
DISCLAIMER Forward-Looking Statements Certain statements in this presentation are forward-looking statements. These forward-looking statements reflect Coty's current views with respect to, among other things, strategic planning, targets and outlook for future reporting periods, expected drivers of s
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