Slide 1: Coty 3Q FY25 Earnings Call
COTY 3Q FY25 EARNINGS CALL May 6, 2025
Slide 2: Current Backdrop
CURRENT BACKDROP SUE NABI CHIEF EXECUTIVE OFFICER 2
Slide 3: Challenges from slower category trends, prestige comparisons and retailer destocking
CHALLENGES FROM SLOWER COTY FOCUSED ON PROTECTING CATEGORY TRENDS, ELEVATED PROFITABILITY, CASH FLOW AND PRESTIGE COMPARISONS AND DELEVERAGING PATH RETAILER DESTOCKING, AND RECALIBRATED CB EQUATION COTY MORE STRONGLY POSITIONED TO WEATHER CURRENT TARIFF AND MACRO UNCERTAINTY 3
Slide 4: Prestige Consumer Beauty Q3 Sales
Q3 SALES PRESTIGE CONSUMER BEAUTY -2.5% -4.8% WITH LFL VOLUMES -3%, WITH VOLUMES FLAT INCLUDING FRAGRANCES +1% Notes: All figures refer to LFL growth. 4
Slide 5: Prestige Fragrances: Strong but Normalizing Market Growth
PRESTIGE FRAGRANCES: STRONG BUT NORMALIZING MARKET GROWTH ~LDD % ~LDD % +MSD% on a comparable basis, including Easter timing ~HSD % LSD % FY24 1Q25 2Q25 3Q25 5 Retail Panel (NPD) – EUR5+NA+MX - Selective Distribution; comparability adjustment based on Coty analysis
Slide 6: Prestige: Headwind from Lapping FY24 Blockbuster Innovation
PRESTIGE: HEADWIND FROM LAPPING FY24 BLOCKBUSTER INNOVATION FY24 FY25 6
Slide 7: Mass Beauty: Market Now Declining Driven by Cosmetics
MASS BEAUTY: MARKET NOW DECLINING DRIVEN BY COSMETICS TOTAL MASS BEAUTY MARKET MASS COSMETICS CATEGORY HSD % HSD % MSD % LSD % LSD % LSD % (LSD) % (MSD) % FY24 1Q25 2Q25 3Q25 FY24 1Q25 2Q25 3Q25 7 NielsenIQ GTC covering B&M and e-commerce channels and countries: Argentina, Australia, Brazil, Canada
Slide 8: Consumer Beauty: Actively Recalibrating
CONSUMER BEAUTY: ACTIVELY RECALIBRATING PORTFOLIO APPROACH IN CHALLENGING MARKET BUILDING COSMETICS REBALANCING MEDIA DUAL-ENGINE OF SCALED SUPPORT TO OVERDRIVE INNOVATION & AGILE HIGHER MARGIN AND/OR INNOVATION, ALL HIGHER GROWTH POWERED BY ADVOCACY CATEGORIES: MASS MODEL FRAGRANCES AND BODY/SKINCA
Slide 9: Consumer Beauty: Actively Recalibrating
CONSUMER BEAUTY: ACTIVELY RECALIBRATING PORTFOLIO APPROACH IN CHALLENGING MARKET Y 38% Y 41% BOD BOD & & OF TOTAL; N N KI KI S +MSD% LFL NCES, S S OSMETIC NCES, S OSMETIC FY24 FY25 MARCH YTD MARCH YTD A A MIX GR MIX R C GR R C A A R 59% LO R LO F CO F 62% OF TOTAL; CO OF TOTAL -HSD% LFL 9
Slide 10: Activating Plans to Improve Execution in U.S.
ACTIVATING PLANS TO IMPROVE EXECUTION IN U.S. ➢ U.S. TOTAL BEAUTY MARKET NOW SLIGHTLY NEGATIVE, PRESSURED BY COSMETICS, WITH FRAGRANCES GROWING ➢ U.S. ACCOUNTED FOR VAST MAJORITY OF COTY’S LFL SALES DECLINE IN Q3 AND BIGGEST HEADWIND FYTD ➢ COTY HAS ANNOUNCED NEW U.S. LEADERSHIP & NEW REGIONAL SET-U
Slide 11: Financial Results & FY25 Guidance
FINANCIAL RESULTS & FY25 GUIDANCE LAURENT MERCIER CHIEF FINANCIAL OFFICER 11
Slide 12: Delivering on Ongoing Productivity Programs
DELIVERING ON ONGOING PRODUCTIVITY PROGRAMS >$90M SAVINGS in 9M25 ~$120M SAVINGS TARGET FOR FY25 12
Slide 13: Strong FYTD Adjusted Gross Margin Expansion
STRONG FYTD ADJUSTED GROSS MARGIN EXPANSION +120 bps -50 65.6% bps 64.4% 64.8% 64.3% 3Q24 3Q25 9M24 9M25 13
Slide 14: Maintaining Strong A&CP Support
MAINTAINING STRONG A&CP SUPPORT ~28% ~28% ~26% ~26% 3Q24 3Q25 9M24 9M25 14
Slide 15: Adj EBITDA Results Boosted by Short-Term Savings
ADJ EBITDA RESULTS BOOSTED BY SHORT-TERM SAVINGS +3% / +110 bps ~$927M ~$955M +2% / +130 bps ~$200M ~$204M 3Q24 3Q25 9M24 9M25 15
Slide 16: Declining Interest Expense Accelerating EPS Growth
DECLINING INTEREST EXPENSE ACCELERATING EPS GROWTH ~$190M ~$164M 9M24 9M25 Reference to diluted adjusted EPS excluding equity swap. 16
Slide 17: Strong FYTD Adj EPS Growth
STRONG FYTD ADJ EPS GROWTH EXCLUDING THE EQUITY SWAP +17% YoY $0.48 $0.41 +33% YoY $0.08 $0.06 3Q24 3Q25 9M24 9M25 Reflects diluted adjusted EPS excluding equity swap. 17
Slide 18: FCF and SKKN Sale Offsetting Equity Swap Prepayment and FX Impacts
FCF AND SKKN SALE OFFSETTING EQUITY SWAP PREPAYMENT AND FX IMPACTS ~3.3x ~3.2x $ 3.6 B $ 0.1 B $ 3.6 B $ 0.2 B $ 0.2 B $ 0.1 B FY24 9M25 SKKN EQUITY FX END NET FCF SALE SWAP IMPACT OF 3Q DEBT PRE- & NET PAYMENT OTHER DEBT 18
Slide 19: Continuing Deleveraging Path
CONTINUING DELEVERAGING PATH TARGETING INVESTMENT GRADE PROFILE ~6.8x ~4.7x -0.2x ~4.1x YoY ~3.3x ~3.2x FY21 FY22 FY23 FY24 3Q25 Leverage calculated using financial net debt to TTM adjusted EBITDA. 19
Slide 20: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET NEAR TERM PRIORITIES 1. Focus on continuing to delever through strong cash protection and EBITDA expansion 2. CY26 debt maturities of ~$1.1B can be addressed through either refinancing, seasonal FCF at CYE, and/or revolver, with available liquidity at the end of Q3
Slide 21: Relatively Better Positioned Than Most in Tariff Scenario
RELATIVELY BETTER POSITIONED THAN MOST IN TARIFF SCENARIO FY24 COTY REVENUE MIX NORTH AMERICA WESTERN CHINA (INCL. KYLIE) EUROPE (INCL. HAINAN) 30% 25% 3% 9% CONSUMER (CB: ~13%, EASTERN EU PRESTIGE: ~17%) & MEA BEAUTY PRIMARILY 17% Global Travel Retail MANUFACTURED LOCALLY BRAZIL PRESTIGE & LATAM AP
Slide 22: Tariff Mitigation Efforts
TARIFF MITIGATION EFFORTS BUSINESS CORE MITIGATION FUNCTION CONSIDERATION PLANS • Inventory buildup • Pricing U.S. Prestige Fragrances MANUFACTURING • Shifting production to U.S. under consideration, (~15% of sales) depending on the period over which the tariffs are in effect Raw Materials, • Resour
Slide 23: Current Backdrop
CURRENT BACKDROP 1 APRIL CATEGORY TRENDS BETTER THAN MARCH MAINLY DUE TO TIMING OF EASTER; FRAGRANCES CONTINUE TO GROW AND COSMETICS IN MODERATE DECLINE 2 AS PART OF FY25 TRANSITION YEAR, COTY CLEANING THE BASELINE IN Q3 AND Q4 TO PREPARE FOR GRADUAL IMPROVEMENT AND HEALTHIER GROWTH IN FY26 3 ACTIVE
Slide 24: FY25 Guidance
FY25 GUIDANCE REVENUE LFL ~2% LFL decline, with -HSD% in Q4 -MSD% YoY, including ~3% headwind from FX and ~1% scope REPORTED REVENUES headwind in 1H25 from the divestiture of Lacoste license ADJ GROSS MARGIN Expansion YoY, consistent with prior outlook Adj EBITDA margin expansion of ~70 basis points
Slide 25: Coty Fundamentals Have Substantially Improved in Last 4 Years
COTY FUNDAMENTALS HAVE SUBSTANTIALLY IMPROVED IN LAST 4 YEARS FY21 -FY25E FY21 FY22 FY23 FY24 FY25E CAGR NET REVENUES $4.6B $5.3B $5.5B $6.1B ~$5.9B LFL % * +16% +12% +11% -2% +9% ADJ. GROSS MARGIN 60.0% 63.7% 63.9% 64.4% ~65% +125 bps/yr ADJ. EBITDA $760M $905M $973M $1,091M ~$1,090M +9% ADJ. EBITD
Slide 26: Coty's Plan of Attack for FY26 & Beyond
COTY’S PLAN OF ATTACK FOR FY26 & BEYOND SUE NABI CHIEF EXECUTIVE OFFICER 26
Slide 27: Beauty Remains a Resilient Category
BEAUTY REMAINS A RESILIENT CATEGORY
Slide 28: Beauty Has Always Been Resilient Across Cycles
BEAUTY HAS ALWAYS BEEN RESILIENT ACROSS CYCLES 6.0% 4.0% 4.4% 3.6% 3.3% 3.6% 3.4% 2.5% 2.6% 2.5% 2.9% 2.4% 1.9% -7.9% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Euromonitor constant prices/fixed exchange rates 28
Slide 29: Prestige Beauty Sales Have Continued to Grow as Economic Sentiment Falls
PRESTIGE BEAUTY SALES HAVE CONTINUED TO GROW AS ECONOMIC SENTIMENT FALLS 2021 2022 2023 2024 TOTAL PRESTIGE BEAUTY $ VOLUME ECONOMIC SENTIMENT INDEX* Circana Retail Panel FY24 data 29
Slide 30: Reignite Pipeline of Blockbuster Launches & Market Expansion
REIGNITE PIPELINE OF BLOCKBUSTER LAUNCHES & MARKET EXPANSION
Slide 31: FY26 Major Prestige Innovation Pipeline
FY26 MAJOR PRESTIGE INNOVATION PIPELINE …THE STRONGEST OF THE PAST FIVE YEARS MAJOR MAJOR PRESTIGE PRESTIGE FRAGRANCE FRAGRANCE LAUNCH IN LAUNCH IN 1H 2026 2H 2026 31
Slide 32: Building on U.S. Expansion
BUILDING ON U.S. EXPANSION >15% LFL GROWTH IN Q3 AND FYTD U.S. NOW CHLOE’S #4 MARKET, FOLLOWING LAUNCH AT THE START OF FY25 32
Slide 33: Building on U.S. Expansion
BUILDING ON U.S. EXPANSION MAJOR PRESTIGE FRAGRANCE BRAND LAUNCHING IN U.S. MARKET IN FALL 2025 33
Slide 34: Ultra Premium Fragrances Expansion
ULTRA PREMIUM FRAGRANCES EXPANSION ATELIER DES FLEURS INFINIMENT COTY ULTRA-PREMIUM PARIS ULTRA- COLLECTION PREMIUM SUPPORTED FRAGRANCE CHLOE’S STRONG COLLECTION CONTINUES TO RESONATE IN U.S. +DD% AND EUROPEAN MARKETS YOY IN Q3 AND FYTD WITH CONTINUED EXPANSION WITHIN THE U.S. AHEAD 34
Slide 35: Adidas Vibes
ADIDAS VIBES LARGEST CONSUMER BEAUTY LAUNCH IN 10 YEARS >20% YOY GROWTH IN ADIDAS FRAGRANCE SALES IN Q3 AND FYTD +30 TO +100BPS OF SHARE IN ALL KEY MARKETS SUPPORTED BY VIBES LAUNCH 35
Slide 36: Coty Creative Team _ Adidas
36 COTY Creative Team _ Adidas
Slide 37: Skincare Expansion
SKINCARE EXPANSION LFL SALES GROWTH BRAND SUPPORTED TRIPLE DIGIT % FYTD BY UNIQUE RETINOL RETAIL SALES COMPLEX PATENTS GROWTH FYTD 37
Slide 38: New Opportunities & Adjacencies Supplementing Core Growth
NEW OPPORTUNITIES & ADJACENCIES SUPPLEMENTING CORE GROWTH
Slide 39: Co-Creating Fragrance Pen Value-Priced Fragrances
CO-CREATING FRAGRANCE PEN VALUE-PRICED SCENTING MISTS IN BOTH SPRAYS FRAGRANCES LINES WITH DIVISIONS IN EMERGING RETAILERS MARKETS 39
Slide 40: Davidoff
DAVIDOFF Col ear
Slide 41: Marc Jacobs Makeup Launching in CY26
MARC JACOBS MAKEUP LAUNCHING IN CY26 41
Slide 42: Overdrive Growth Channels
OVERDRIVE GROWTH CHANNELS
Slide 43: Coty Continuing to Gain Share in Outperforming E-Com Channel
COTY CONTINUING TO GAIN SHARE IN OUTPERFORMING E-COM CHANNEL PRESTIGE (L3M) CONSUMER BEAUTY (L3M) MARKET MARKET COTY MARKET MARKET COTY B&M E-COMMERCE E-COM SELL-OUT B&M E-COMMERCE E-COM SELL-OUT E -com based on countries where e -com info is available covering approx. 86% of total Coty. Sources: Ci
Slide 44: Key Brand Launching on Amazon
KEY BRAND LAUNCHING ON AMAZON IN 1Q FY26 44
Slide 45: Rimmel on UK TikTok Shop
RIMMEL ON UK TIKTOK SHOP: FUELING IMPROVEMENT IN UK MARKET SHARE TRENDS UNITS DRIVING BUZZ SOLD OUT WITH ON LIMITED EMV OF >$2.3M VOLUME LAUNCH & ~364 OF ACTIVATED 3 SKUS INFLUENCERS RIMMEL SHARE STABLE IN UK FOR 1ST TIME IN 3 YRS WITH TIKTOK SHOP HALO ACROSS CHANNELS 45
Slide 46: Social Advocacy Momentum Driving Brand Strength Online & Offline
SOCIAL ADVOCACY MOMENTUM DRIVING BRAND STRENGTH ONLINE & OFFLINE EMV EMV EMV EMV +276% +318% +962% +43% YoY YoY YoY YoY 46 Global EMV ranking is tracked within our competitive set. Source: Traacker.
Slide 47: Social Advocacy Momentum Driving Brand Strength Online & Offline
SOCIAL ADVOCACY MOMENTUM DRIVING BRAND STRENGTH ONLINE & OFFLINE EMV EMV EMV +9% +40% +434% YoY YoY YoY 47 Global EMV ranking is tracked within our competitive set. Source: Traacker.
Slide 48: Reigniting Consumer Beauty
REIGNITING CONSUMER BEAUTY
Slide 49: Focus on Reigniting Consumer Beauty
FOCUS ON REIGNITING CONSUMER BEAUTY CONTINUE SALES DUAL ENGINE DIVERSIFICATION FUEL INNOVATION: BY OVERDRIVING REINVESTMENT VIA SAVINGS FROM MASS FRAGRANCES PLATFORMED LAUNCHES & SCALED LAUNCHES & + SKIN & COST SAVINGS AGILE BEAUTY PROGRAM BODYCARE 49
Slide 50: Platforming Color Cosmetics Technology: Essence
PLATFORMING COLOR COSMETICS TECHNOLOGY: ESSENCE LAUNCHED UNDER MAX FACTOR & BOURJOIS FIRST Q2 FY25 LAUNCHED UNDER COVERGIFL IN Q3 FY24 50
Slide 51: Initial Agile Innovations Seeing Solid Momentum
INITIAL AGILE INNOVATIONS SEEING SOLID MOMENTUM CO-CREATED RIMMEL THRILL SEEKER LIP INK PENS HIGHEST-EVER EXCLUSIVE SALES CONTRIBUTION AT SUPERDRUG 51
Slide 52: Focus on Savings, Profit & Cash Protection
FOCUS ON SAVINGS, PROFIT & CASH PROTECTION
Slide 53: >$800M Savings Delivery Over Years While Driving Sales Growth and Margin Expansion
>$800M SAVINGS DELIVERY OVER 5 YEARS WHILE DRIVING SALES GROWTH AND MARGIN EXPANSION >$330M +13% LFL SALES GROWTH CAGR (FY21-FY24 EX. LACOSTE & MARKET EXITS) >$180M >$115M ~$120M 44O BPS >$90M ADJ. GROSS MARGIN EXPANSION (FY21-FY24) 130 BPS FY21 FY22 FY23 FY24 FY25E ADJ. EBITDA MARGIN EXPANSION SAVI
Slide 54: Next Phase of All-In to Win
NEXT PHASE OF ALL-IN TO WIN 1 STREAMLINED ORGANIZATIONAL STRUCTURE 2CONSOLIDATE AND CENTRALIZE SUPPORT FUNCTION ACTIVITIES 3 4 BOOST INNOVATION IMPACT THROUGH STRUCTURALLY FOCUSED EFFORTS AND REDUCE NON-PEOPLE RESOURCES FIXED COSTS SUPPLEMENTED BY AGILE ACROSS ALL AREAS INNOVATION 54
Slide 55: Next Phase of All-In to Win by the Numbers: FY26 and FY27
NEXT PHASE OF ALL-IN TO WIN BY THE NUMBERS: FY26 AND FY27 ~$130M ~$240M ~$370M FIXED COST SAVINGS (~$80M in FY26 & + PRODUCTIVITY SAVINGS = TOTAL SAVINGS ~$50M in FY27) ~$80M ~700 CASH COST IMPACTED EVENLY SPLIT POSITIONS BETWEEN FY26 + FY27 55
Slide 56: Reaching Key Sustainability Milestones
REACHING KEY SUSTAINABILITY MILESTONES
Slide 57: ESG Rating Upgrades
ESG RATING UPGRADES ESG RATING: ESG RANKING: A 3rd (IMPROVED FROM BB) AMONG 104 HOUSEHOLD PRODUCTS COMPANIES RATED BY SUSTAINALYTICS 57
Slide 58: Framework for FY26
FRAMEWORK FOR FY26 1H FY26 2H FY26 INNOVATION DISTRIBUTION PRICING FY25 COMPS NR LFL TARIFF NET IMPACT SAVINGS DELIVERY VARIABLE COMP EBITDA 58
Slide 59: Transition Year in CY25, with Trend Improvement into FY26 & Beyond
TRANSITION YEAR IN CY25, WITH TREND IMPROVEMENT INTO FY26 & BEYOND 59
Slide 60: Appendix
APPENDIX 60
Slide 61: Adjusted EPS Delivery
Q3 9M25 ADJUSTED EBITDA 204 955 DEPRECIATION (56) (170) NET INTEREST (48) (164) INCOME TAX 6 107 ADJUSTED OTHER (84) (271) EPS DELIVERY ADJ PREFERRED DIVIDEND (3) (10) DILUTED SHARE COUNT 875M 876M DILUTED ADJUSTED EPS * 0.01 0.27 DILUTED ADJ EPS EXCL. EQUITY SWAP 0.08 0.48 * Diluted adjusted EPS ca
Slide 62: 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 (including the extent,