Coty Inc. · NYSE:COTY
Coty — Investor Day (November 2021)
48 slides from Coty's investor day presentation, November 2021
Slide 1: Stabilize & Grow Consumer Beauty
STABILIZE & GROW CONSUMER BEAUTY STEFANO CURTI & ALEXIS VAGANAY 1
Slide 2: Mass Beauty Is a Large and Resilient Market
MASS BEAUTY IS A LARGE AND RESILIENT MARKET MAKE-UP VS. 2 YEARS VS. LY $27B AGO 15% SKINCARE + 3.8% + 12.6% DEODORANTS SKINCARE 10% $19B MAKEUP + 0.7% + 0.2% $105B 57% 10% FRAGRANCE DEODORANTS + 0.4% + 5.1% 7% $19B FRAGRANCES + 5.6% + 19.0% SHOWER GEL $13B SHOWER GEL - 0.9% + 6.7% Source: Euromonito
Slide 3: Path to Stabilizing Consumer Beauty
PATH TO STABILIZING CONSUMER BEAUTY ▪ TOP 5 BRANDS (CoverGirl, Rimmel, Sally Hansen, adidas, Max Factor) account for ~70% of the Consumer Beauty portfolio ▪ REPOSITIONING of CoverGirl, Rimmel, Max Factor completed, adidas and Bourjois on track for 2HFY22 ▪ BRAZIL LOCAL BRANDS account for ~10%, and s
Slide 4: Rimmel U.K.: Holds Physical Distribution
HOLDS PHYSICAL DISTRIBUTION RIMMEL U.K.: HOLDS PHYSICAL DISTRIBUTION 4
Slide 5: Max Factor U.K.: Holds Physical Distribution
MAX FACTOR U.K.: HOLDS PHYSICAL DISTRIBUTION 5
Slide 6: Sally Hansen U.S. & U.K.: Grows Physical Distribution
PHARMACY UP +45% VS LY (US) HIGH STREET UP +135% VS LY (UK) SALLY HANSEN U.S. & U.K.: GROWS PHYSICAL DISTRIBUTION 6
Slide 7: CoverGirl U.S.: Solidifies Physical Distribution
COVERGIRL U.S.: SOLIDIFIES PHYSICAL DISTRIBUTION 7
Slide 8: E-Commerce Acceleration
ACCELERATION 1 2 3 E-COM CONTRIBUTED ~40% TO E-RETAIL & PURE-PLAYERS ADDITIONAL DISTRIBUTION TOTAL Q1 GROWTH, IN ALL ACCELERATED IN Q1 DRIVEN OPPORTUNITIES FOR FY22 CHANNELS & REGIONS BY NEW DISTRIBUTION New retailers Penetration +2.3x Q1 Net Revenue +27% vs. FY21 Brand expansion vs. FY20 Market exp
Slide 9: Coty Consumer Beauty Becomes a Leader in Sustainability
COTY CONSUMER BEAUTY BECOMES A LEADER IN SUSTAINABILITY The beauty The beauty of PEOPLE of our PRODUCT Create a more INCLUSIVE Drive PRODUCT INNOVATION business and society with SUSTAINABILITY towards the circular economy The beauty of our PLANET Protect and conserve natural resources to achieve a H
Slide 10: Coty Is Leading Clean Innovation
COTY IS LEADING CLEAN INNOVATION 10
Slide 11: Innovation
‘a GOOD KIND PURE LAND OF THE FREE LAND #™ FREE LAND #™ FREE LAND /™ FREE LAND y™ FREE NAUTICA OCEANS
Slide 12: Brand Portfolio
BRAND PORTFOLIO IN COLOR COSMETICS SALON ALTERNATIVE 12
Slide 13: Moving at Lightning Speed to Reposition Brands
MOVING AT LIGHTNING SPEED TO REPOSITION BRANDS THE UPLIFTING POWER OF BEAUTY February 2021 THE FREEING POWER OF BEAUTY July 2021 FROM ORDINARY TO EXTRAORDINARY August 2021 LEADER IN ACTIVE BEAUTY September 2022 SALON EXPERTISE AT AFFORDABLE PRICE Strong equity already in place 13
Slide 14: Fueling High R.O.I. Investments
FUELING HIGH R.O.I. INVESTMENTS ADVERTISING TEST RESULTS TURNAROUND CEI RBR PPS CEI RBR PPS CEI RBR PPS 192 172 180 150 112 LILY AT HOME 82 97 85 WE ADWOA 120 15’s, May 21 20’s, June 21 181 156 116 173 115 UK GLOCAL 20’s, June 21 186 140 133 AGELESS NIKI 30’s, June 21 256 162 131 124 203 KIND & FREE
Slide 15: CoverGirl
COVERGIRL
Slide 16: Growing 50% Faster
MAGNIFICENT 8 GROWING 50% FASTER THAN CATEGORY ~70% OF BUSINESS CLEAN ALL 17% & OTHERS GROWING 50% FASTER 29% VS. CATEGORY MAGNIFICENT LASH 14% EIGHT BLAST EYE 2% ENHANCER 1% 5% 9% TRUE PERFECT 7% BLEND 7% POINT SIMPLY OUTLAST AGELESS EXHIBITIONIST Nielsen L52 Retail $ Consumption, w/e 2.13.21 Niels
Slide 17: CoverGirl Is the Most Loved Brand in the U.S.
COVERGIRL IS THE MOST LOVED BRAND IN THE U.S. SPONTANEOUS AWARENESS 52 50 33 32 RANK 1 2 3 4 Covergirl Maybelline Revlon L'Oreal 5 MAKEUP BRAND CONSUMERS MENTION 15% 9% 3% 14% 7% 17 Source: Kantar Brand Equity 2019
Slide 18: Brand Equity
BRAND EQUITY COVERGIRL ACTING LIKE A ‘TRUSTED’ BRAND WITH NICHE FLAGSHIPS ATTRACTING GEN Z CONSUMERS 18
Slide 19: Brand Equity
BRAND EQUITY COVERGIRL ACTING LIKE A ‘TRUSTED’ BRAND WITH NICHE FLAGSHIPS ATTRACTING GEN Z CONSUMERS 19
Slide 20: `
` 20
Slide 21: CoverGirl and Goes Viral on TikTok
COVERGIRL AND GOES VIRAL ON TIKTOK SKIN MILK TARGET LOOKFANTASTIC STRONG ORGANIC IN THE PRESS! INFLUENCER GOING VIRAL ENDORSEMENT 9.2M Views 1.7M Likes CVS GOPUFF @briannachickenf @mikaylanogueir ry a AMAZON SELL-OUT: +45% (VS. CATEGORY +36%) 21
Slide 22: CoverGirl Sustains Sell-Out Growth and Share Gains
COVERGIRL SUSTAINS SELL-OUT GROWTH AND SHARE GAINS Source: Nielsen ending 10/31/2021 22
Slide 23: Talent Roster
TALENT ROSTER IS LILI REINHART NIKI TAYLOR 23
Slide 24: Introducing Ambassador of CoverGirl Skincare
…INTRODUCING Ambassador of CoverGirl Skincare Actress, producer, director Emmy award / Golden Globes award winner Voice of the Latinx community, where CoverGirl over-index 24
Slide 25: 25
25
Slide 26: First Foray into Skincare
FIRST FORAY INTO SKINCARE C L E AN F R E S H S K I N C AR E SUPERCHARGED, CLEAN, VEGAN SKINCARE THAT WORKS 26
Slide 27: Sally Hansen
Slide 28: Trusted by Consumers, Inclusive, #1 in Nail Color in the U.S.
SALON QUALITY RESULTS AT-HOME TRUSTED BY CONSUMERS INCLUSIVE Widely Available Affordable #1 IN NAIL COLOR IN THE U.S. And Care 28
Slide 29: Hits Record Share
HITS RECORD SHARE • HIGHEST SHARE SINCE 2019 IN THE U.S. • MIRACLE GEL GROWS +18% LAST 3 MONTHS • SHARE GAINS IN: U.K. AUSTRALIA ITALY SPAIN CANADA FRANCE Source: Nielsen selective markets, MAT Aug 2021 29
Slide 30: Internal. Strictly Confidential
INTERNAL. STRICTLY CONFIDENTIAL
Slide 31: Unapologetically Kind of Beauty
3 UNAPOLOGETICALLY THE RIMMEL GIRL 1 KIND OF BEAUTY • Market leader in the U.K. • 2nd largest Coty Consumer Beauty brand • Broad European presence • Recent share gains: • Australia +70 BPS • Netherlands + 100 BPS • Checz Rep. + 50 BPS • Argentina + 150 BPS Source: Nielsen September 2021 31
Slide 32: Our First Clean Makeup That Works
OUR FIRST CLEAN MAKEUP THAT WORKS. NO COMPROMISE. VEGAN. KIND TO ANIMALS. 32
Slide 33: Range Launch
Range Launch
Slide 34: Max Factor: A Journey of Transformation
MAX FACTOR X A JOURNEY OF TRANSFORMATION
Slide 35: Begins Its Turnaround
BEGINS ITS TURNAROUND ▪ Stable or growing in >75% of countries ▪ Recent share gains: ▪ U.K. + 20 BPS ▪ Netherlands + 50 BPS ▪ Poland + 70 BPS ▪ Spain + 30 BPS ▪ Russia + 70 BPS Source: Nielsen September 2021 35
Slide 36: Facefinity 3-in-1 Foundation
Facefinity 3-in-1 foundation 36
Slide 37: In-Store and E-Commerce Transformation
IN-STORE AND E-COMMERCE TRANSFORMATION 37
Slide 38: Back in the Spotlight
BACK IN THE » 4 i 2 aia SPOTLIGHT | MAX FACTOR | | en FOREVER ti aWLeESs COTY
Slide 39: adidas
Slide 40: To Be the Best Active Beauty Brand in the World
OUR MISSION TO BE THE BEST ACTIVE BEAUTY BRAND IN THE WORLD SPORTS CREDIBILITY | SUSTAINABILITY | INCLUSIVITY 40
Slide 41: adidas to Become a Beauty Brand
ADIDAS TO BECOME A Expand Leverage From toiletries With active lifestyle to beauty care 41
Slide 42: Rejuvenated Fragrance Portfolio, Leader in Mass
ba ER eo, he _ Si lie SS REJUVINATED FRAGRANCE PORTFOLIO, LEADER IN MASS 4NAUTICA DAVID BECKHAM GRAND CANYON COTY Ww 19. 9". TP elkb,
Slide 43: 43
43
Slide 44: For First Time in Years, Coty Gaining Share
FOR FIRST TIME IN YEARS, COTY GAINING SHARE AND Share Points Change YoY Latest common August 2021 Source: Retail Panel. (Nielsen & IRI) Total Countries B&M + ECOMM (Amazon only – Profitero) Categories: Color Cosmetics, Fragrances, Body care Total Coty / EMEA, Americas, APAC 44
Slide 45: Expect Solid Sales and Profit Growth
EXPECT SOLID SALES AND PROFIT GROWTH FY21 FY22E FY22-FY25E NET REVENUE LSD-MSD LFL $1.9B HSD LFL /LFL SALES CAGR Growth outpacing Growth outpacing ADJ EBITDA $258M sales sales Several ADJ EBITDA Percentage 13.5% Expansion MARGIN Points of Expansion 45
Slide 46: Coty Consumer Beauty
COTY CONSUMER BEAUTY Consumer Beauty is back to growth, with outlook for low-to-mid single digit sales growth through FY25, driven by key brand relaunches Playground for innovation to be leveraged by rest of organization Transforming our heritage brands into dual position of both “trusted” and “nich
Slide 47: Thank You
STABILIZE & GROW CONSUMER BEAUTY THANK YOU STEFANO CURTI & ALEXIS VAGANAY 47
Slide 48: 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