Slide 1: Coty 4Q & FY24 Earnings Call
COTY 4Q & FY24 EARNINGS CALL August 20, 2024
Slide 2: FY24 Summary
FY24 SUMMARY SUE NABI CHIEF EXECUTIVE OFFICER 2
Slide 3: Key FY24 Accomplishments
KEY FY24 ACCOMPLISHMENTS 3
Slide 4: Outperforming market, #1 fragrance innovation, double-digit growth
OUTPERFORMING #1 FRAGRANCE MARKET INNOVATION BECOMING AN DOUBLE-DIGIT% GROWTH IN ADVOCACY-LED COMPANY LFL SALES, ADJ. 1EBITDA AND EPS 1 EPS excluding equity swap 4
Slide 5: We are outperforming global beauty market
+11% FY24 PERFORMANCE ~9% WE ARE OUTPERFORMING GLOBAL BEAUTY MARKET Market Coty Total beauty market growth: Global Data (Prestige + Mass) LFL results for FY24 included a contribution from the Argentina hyperinflationary environment of 1% for total Coty. 5
Slide 6: Grown ahead of leading global beauty companies
In8 12 of the last quarters, we have grown ahead of leading global beauty companies 6
Slide 7: LFL growth versus leading beauty companies
3Q 4Q 1Q 2Q 3Q 4Q Q1 Q2 Q3 Q4 Q1 Q2 LFL Growth CY21 CY21 CY22 CY22 CY22 CY22 CY23 CY23 CY23 CY23 CY24 CY24 21% 12% 19% 16% 9% 4% 15% 17% 18% 11% 10% 5% Leading Beauty 13% 11% 14% 13% 9% 8% 13% 14% 11% 7% 9% 5% Company #1 Leading Beauty 18% 11% 9% -8% -5% -11% -8% 4% -11% -8% 6% 8% Company #2 Leading
Slide 8: Financial Results & FY25 Guidance
FINANCIAL RESULTS & FY25 GUIDANCE LAURENT MERCIER CHIEF FINANCIAL OFFICER 8
Slide 9: Strong FY24 Revenue Growth
STRONG FY24 REVENUE GROWTH +11% LFL ~$6.1B ~5.6B ~$5.3B ~$4.6B FY21 FY22 FY23 FY24 LFL results for FY24 included a contribution from the Argentina hyperinflationary environment of 1% for total Coty. 9
Slide 10: Sizeable FY24 Margin Improvement
+50bps ADJ GROSS MARGIN SIZEABLE FY24 MARGIN IMPROVEMENT WHILE MAINTAINING +80bps ADJ OPERATING MARGIN STRONG MARKETING SUPPORT +30bps ADJ EBITDA MARGIN 10
Slide 11: Strong FY24 Adj Operating Margin Growth in Both Divisions
STRONG FY24 ADJ OPERATING MARGIN GROWTH IN BOTH DIVISIONS +40bps YoY 19.0% +80bps 18.6% YoY 16.2% 13.2% 5.7% 4.9% 4.2% 4.0% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 PRESTIGE CONSUMER BEAUTY 11
Slide 12: Significant FY24 Adj EBITDA Growth
SIGNIFICANT FY24 ADJ EBITDA GROWTH +12% YoY $1,091M $973M $905M $762M FY21 FY22 FY23 FY24 12
Slide 13: Strong FY24 Adj EPS Growth
STRONG FY24 ADJ EPS GROWTH +26% (EXCLUDING THE EQUITY SWAP) YoY $0.48 $0.38 $0.28 $0.05 FY21 FY22 FY23 FY24 Reflects diluted adjusted EPS excluding equity swap 13
Slide 14: Significant FY24 Leverage Reduction
SIGNIFICANT FY24 LEVERAGE REDUCTION TARGETING INVESTMENT GRADE PROFILE ~6.8x ~4.7x 0.8x lower ~4.1x ~3.3x Includes ~$370M FCF in FY24 FY21 FY22 FY23 FY24 14
Slide 15: Savings Fueling Profit Expansion and Re-investment
SAVINGS FUELING PROFIT EXPANSION AND RE-INVESTMENT >$115M Savings in FY24 ~$75M Savings targets for FY25 15
Slide 16: Expecting Continued Momentum in FY25
EXPECTING CONTINUED MOMENTUM IN FY25 16
Slide 17: FY25 Guidance
FY25 GUIDANCE REVENUE LFL IN-LINE WITH MEDIUM TERM TARGET OF +6-8% LFL REPORTED REVENUE LSD% HEADWIND FROM FX AND ~1% SCOPE HEADWIND FROM THE IMPACTS DIVESTITURE OF LACOSTE LICENSE IN 1H25 ADJ GROSS MARGIN CONTINUED EXPANSION YOY GROWTH OF +9-11% TO $1,186-1,208M DESPITE THE EXPECTED FX ADJ EBITDA H
Slide 18: 1H25 and 1Q25 Framework
1H25 AND 1Q25 FRAMEWORK REVENUE LFL 1H25 LFL GROWTH INLINE WITH FY25 GUIDANCE OF+6-8% LFL Q1 LFL GROWTH OF ~6%, REFLECTING ELEVATED PRIOR YEAR COMPS; IMPLIES SEQUENTIAL GROWTH IMPROVEMENT, AS PREVIOUSLY GUIDED, WITH A CAGR OF ~10% VS. FY22, CONSISTENT WITH TRENDS IN 3Q AND 4Q24 REPORTED LSD% HEADWIN
Slide 19: Competitive Advantages & Growth Outlook
COMPETITIVE ADVANTAGES & GROWTH OUTLOOK SUE NABI CHIEF EXECUTIVE OFFICER 19
Slide 20: Coty's Competitive Advantages
COTY’S COMPETITIVE ADVANTAGES 20
Slide 21: Balanced Portfolio, Unrivaled Fragrance Expertise, Growth Playbook
1 BALANCED PORTFOLIO 2 UNRIVALED FRAGRANCE EXPERTISE 3 4 ICONIC BRANDS PROPELLED BY SIGNIFICANT GROWTH GROWTH PLAYBOOK OPPORTUNITIES 21
Slide 22: Balanced Portfolio
BALANCED PORTFOLIO 22
Slide 23: Pursuing Sustainable and Balanced Growth
WE’RE PURSUING SUSTAINABLE AND BALANCED GROWTH 23
Slide 24: FY24 LFL Growth per Segment / per Region
FY24 LFL GROWTH PER SEGMENT/ PER REGION BOTH PRICE AND VOLUME PRICE POINT 11% EMEA + LSD % Volume 14% Prestige 12% Americas + HSD % Price (est.) Consumer 6% Beauty 11% APAC + LSD % Mix & Other (est.) Notes: All figures refer to LFL growth. LFL results for FY24 included a contribution from the Argent
Slide 25: Growth in Brick & Mortar and E-Commerce
E-COMMERCE ~20% LFL YoY GROWTH IN ~20% BRICK & MORTAR FY24 AND E-COMMERCE REVENUE MIX FY24 LFL GROWTH ~80% BRICK & MORTAR ~9% LFL YoY E-com penetration and contribution based on countries where e-com info is available covering approx. 86% of total Coty. Sources: Circana (Prestige) and Nielsen (CB) M
Slide 26: Growth in Mature and Growth Engine Markets & Channel
GROWTH TRAVEL ENGINE RETAIL MARKETS +21% LFL GROWTH IN +17% LFL 22% 9% MATURE AND GROWTH ENGINE FY24 MARKETS & REVENUE MIX CHANNEL FY24 LFL GROWTH 69% MATURE MARKETS +8% LFL LFL results for FY24 included a contribution from the Argentina hyperinflationary environment of 4% for growth engine markets.
Slide 27: Portfolio Adaptable to Diverging Consumer Price Trends
ULTRA-PREMIUM $150 - 450 PORTFOLIO ADAPTABLE PREMIUM + $50 - 150 TO DIVERGING CONSUMER PREMIUM PRICE TRENDS $20 - 100 MASS $5 - 20 27
Slide 28: Regional Diversification Limits Geopolitical Risk
REGIONAL DIVERSIFICATION LIMITS GEOPOLITICAL RISK 28
Slide 29: FY24 Revenue Mix
FY24 REVENUE MIX CHINA NORTH WESTERN (INCL. HAINAN) EUROPE AMERICA 3% (INCL. KYLIE) 25% 9% 30% EASTERN EU & MEA 17% Global Travel Retail BRAZIL & LATAM 10% APAC 6% 29
Slide 30: Unrivaled Fragrance Expertise
UNRIVALED FRAGRANCE EXPERTISE 30
Slide 31: Burberry Goddess
FY24 INNOVATION BURBERRY GODDESS #1 FEMALE FRAGRANCE LAUNCH IN FY24 31
Slide 32: Marc Jacobs Daisy Wild
FY24 INNOVATION MARC JACOBS DAISY WILD #1 FEMALE LAUNCH CYTD 32
Slide 33: Cosmic Kylie Jenner
FY24 INNOVATION COSMIC KYLIE JENNER #1 FEMALE LAUNCH CYTD BY VOLUME 33
Slide 34: Gucci Flora Orchid
FY25 INNOVATION GUCCI FLORA ORCHID NOW #1 FEMALE FRAGRANCE AT SEPHORA WORLDWIDE 34
Slide 35: Adidas Vibes
FY25 INNOVATION ADIDAS VIBES A GAME-CHANGING MASS FRAGRANCE 35
Slide 36: Iconic Brands Propelled by Growth Playbook
ICONIC BRANDS PROPELLED BY GROWTH PLAYBOOK 36
Slide 37: Rimmel: Step-Changing Social Media Impact & Market Share
RIMMEL STEP-CHANGING SOCIAL MEDIA IMPACT & MARKET SHARE EMV GLOBAL MARKET 4X YOY SHARE GROWING TO L6M #4 RANK 37 37
Slide 38: CoverGirl: Step-Changing Social Media & Market Share
COVERGIRL STEP-CHANGING SOCIAL MEDIA & MARKET SHARE EMV 6X YOY OMNICHANNEL MARKET SHARE GROWING TO L3M #5 RANK 38
Slide 39: Next Step: Activating Agile Innovation Model
NEXT STEP: ACTIVATING AGILE INNOVATION MODEL 39
Slide 40: Significant Growth Opportunities
SIGNIFICANT GROWTH OPPORTUNITIES 40
Slide 41: Booming in E-Commerce
BOOMING IN E-COMMERCE ~20% of Coty’s sales >20% LFL in FY24 E-com penetration and contribution based on countries where e-com info is available covering approx. 86% of total Coty. Sources: Circana (Prestige) and Nielsen (CB) May 2024. Additionally, the data includes estimated 41 data for Brick and C
Slide 42: Booming in Travel Retail
BOOMING IN TRAVEL RETAIL ~9% of Coty’s sales >20% LFL in FY24 42 42
Slide 43: Accelerating in Skincare
ACCELERATING IN SKINCARE ~4% >10% ~$70B of Coty’s sales growth in core Market skincare lines 43
Slide 44: Accelerating in Prestige Cosmetics
ACCELERATING IN PRESTIGE COSMETICS ~4% +DD% ~$30B of Coty’s sales LFL in FY24 Market 44
Slide 45: Accelerating in Ultra Premium Fragrances
ACCELERATING IN ULTRA PREMIUM FRAGRANCES ~1% +10% >$4B of Coty’s sales LFL in FY24 Market 45
Slide 46: Accelerating in Entry Prestige
ACCELERATING IN ENTRY PRESTIGE >20% +DD% of Coty’s sales LFL in FY24 Includes the following brands: Calvin Klein, Davidoff and Hugo Boss (excluding ultra-premium Boss Collection). 46
Slide 47: Expanding in Growth Engine Markets
EXPANDING IN GROWTH ENGINE MARKETS 47
Slide 48: Growth Engine Markets: ~22% of Coty's Sales
~22% of Coty’s sales NORTH ASIA SAUDI ARABIA INDIA CHINA MEXICO AFRICA SOUTHEAST ASIA BRAZIL & LATAM +17% LFL in FY24 LFL results for FY24 included a contribution from the Argentina hyperinflationary environment of 4% for growth engine markets. 48
Slide 49: Strong Innovation Pipeline for FY25
STRONG INNOVATION PIPELINE FOR FY25 49
Slide 50: FY25 Revenue Growth Framework: Mature Markets
MATURE MARKETS FY25 REVENUE GROWTH < 70% FRAMEWORK OF SALES +MID-SINGLE-DIGIT % FY25 GROWTH OUTLOOK 50
Slide 51: FY25 Revenue Growth Framework: Growth Engine Markets & Channels
GROWTH ENGINE MARKETS & CHANNELS FY25 REVENUE GROWTH FRAMEWORK > 30% OF SALES +DOUBLE-DIGIT % FY25 GROWTH OUTLOOK 51 Includes growth engine markets & Travel Retail
Slide 52: One of the Most Compelling Investment Opportunities in Beauty
ONE OF THE MOST COMPELLING INVESTMENT OPPORTUNITIES IN BEAUTY 52
Slide 53: Appendix
APPENDIX 53
Slide 54: Adjusted EPS Delivery
Q4 FY24 ADJUSTED EBITDA 165 1,091 DEPRECIATION (57) (228) NET INTEREST (62) (252) INCOME TAX (28) 131 ADJUSTED OTHER (95) (144) EPS DELIVERY ADJ PREFERRED DIVIDEND (3) (13) DILUTED SHARE COUNT 876M 883M DILUTED ADJUSTED EPS * (0.03) 0.37 DILUTED ADJ EPS EXCL. EQUITY SWAP 0.07 0.48 * Diluted adjusted
Slide 55: 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,