Coty Inc. · NYSE:COTY
Coty — Investor Day (November 2021)
31 slides from Coty's investor day presentation, November 2021
Slide 1: Digital and E-Commerce
DIGITAL AND E-COMMERCE Jean Denis Mariani, Chief Digital Officer 1
Slide 2: There is no digital strategy anymore
THERE IS NO DIGITAL STRATEGY ANYMORE, “SOCIAL COMMERCE “EXPERIENCE “AUTHENTICITY is the new e-commerce” is the key differentiator” is the core value’ “SERVICES “VIDEO “DATA “ADVOCACY are the new cookies’ is over passing picture’ is a strategic asset" is a growth engine” 2 “DISRUPTION “SELF EXPRESSIO
Slide 3: Put the customer first and at the center of everything
PUT THE CUSTOMER FIRST AND AT THE CENTER OF EVERYTHING COTY’S CUSTOMER-CENTRICITY IS AS MUCH A STRATEGY AS A CULTURE 1 A FULLY CONSUMER & DATA CENTRIC ORGANIZATION A STRONG FOCUS PUT ON AGILITY 2 AND TEST & LEARN METHODS THE CHANCE TO WORK WITH PARTNERS 3 & ICONIC FASHION HOUSES THAT CONSTITUTE STRO
Slide 4: In less than 1 year...
a IN LESS THAN 1 YEAR... COTY
Slide 5: We built a digital organization with centers of expertise
WE BUILT A DIGITAL ORGANIZATION WITH 8 CENTERS OF EXPERTISE TO ACCELERATE OUR TRANSFORMATION DIRECT ECOMMERCE CONTENT INDIRECT DIGITAL PRODUCTION ECOMMERCE N. AMERICA INNOVATION MEDIA & SOCIAL COMMERCE, & BEAUTY TECH PERFORMANCE CRM & ADVOCACY DIGITAL IT FACTORY 5
Slide 6: We kicked off a robust and agile transformation through families of priorities
WE KICKED OFF A ROBUST AND AGILE THROUGH 5 FAMILIES OF PRIORITIES TO FULLY UNLEASH OUR POTENTIAL 5 1 Lead digital acceleration as a change DIGITAL E-BUSINESS Capitalizing on eretail & pure players agent, injecting new ways of working & TRANSFORMATION POTENTIAL partnerships, unique D2C brands, MOMENT
Slide 7: We delivered against all priorities and secured our turnaround
WE DELIVERED AGAINST ALL PRIORITIES & SECURED OUR TURN AROUND ESTABLISHED SOLID CAPABILTIES TO ACCELERATE DRASTICALLY IN THE 3 COMING YEARS GROWTH DRIVERS FY22/23 FY24/25 Anchor our strong e-position in US E-BUSINESS POTENTIAL Boost our China ecommerce presence and growth UNLOCKING Maximize the pote
Slide 8: Demonstrated in our FY21 & 1Q22 results
DEMONSTRATED IN OUR FY21 & 1Q22 RESULTS A TOP PRIORITY FOR NEW LEADERSHIP TEAM E-commerce margins are nicely accretive Q1 FY22 % OF PENETRATION Q1 FY22 YoY REVENUES VS. FY20 PRESTIGE +21% YoY 21% 1.5X CONSUMER BEAUTY +27% YoY 9% 2.3X COTY +23% YoY 16% 1.7X Based on Coty Inc and third-party data 8
Slide 9: Fueled by our growth pillars, US & China
FUELED BY OUR GROWTH PILLARS, US & CHINA STRONG RESULTS IN BOTH DIVISIONS & TOP VOLUME MARKETS Q1 FY22 E-COM Q1 FY22 E-COM Q1 FY22 E-COM Q1 FY22 E-COM MARKET PENETRATION MARKET PENETRATION GROWTH RATE GROWTH RATE >70% ~40% >45% ~60% >25% ~20% >25% ~10% Q1 FY22 Sell In NR in China and US. Penetration
Slide 10: China: accelerated with Tmall flagship, JD & Douyin
CHINA: ACCELERATED WITH TMALL FLAGSHIP, JD & DOUYIN ADIDAS MAX FACTOR FEBRUARY 2021 JULY 2020 MARCH 2018 JUNE 2021 30K Q1 FY22 lipsticks Q1 FY22 Q1 FY22 +31% 19% of sold in 30 MF EC +740% minutes TOP 10 Fragrance No 1 Cushion & No 3 Lips on 618 day TOP 8 Brand TOP 6 Brand face compact brand during p
Slide 11: CoverGirl desirability evident across online platforms
COVERGIRL DESIRABILITY EVIDENT ACROSS ONLINE PLATFORMS LAST MILE EXPANSION VIRAL SOCIAL COMMERCE AMAZON SHARE GAINS #1 category lead & top 5 3x sales growth in Consistent share gain L26W, in all brands (Gopuff) omni channel outperforming key peers 11
Slide 12: We are leading on key digital trends of the market
WE ARE LEADING ON KEY DIGITAL TRENDS OF THE MARKET CLEAN BEAUTY FASHION INTEGRATIONS TRAVEL RETAIL DATA 1st in category to launch Unique ‘Shop The Look’ Connecting all touchpoints Subscription Box with concepts to cross sell via Customer Data Platform Clean Beauty in fashion & beauty 12
Slide 13: A unique positioning to build key differentiators
A UNIQUE POSITIONING TO BUILD KEY DIFFERENTIATORS 13
Slide 14: Act as industry captain & build our brands in 4 strategic areas
ACT AS INDUSTRY CAPTAIN & BUILD OUR BRANDS IN 4 STRATEGIC AREAS 1 2 3 4 INNOVATIVE SERVICES SOCIAL COMMERCE UNIQUE D2C BRANDS ADVOCACY & CONTENT TO & LIVE STREAMING KYLIE & KIM TO PAVE POWER & IMPROVE CONSUMER THE NEW COMMERCE PATH FOR OUR NEXT VIRALITY EXPERIENCE & COLLECT ENRICHING THE AMPLIFICATI
Slide 15: To improve consumer experience & collect valuable data
1 TO IMPROVE CONSUMER EXPERIENCE & COLLECT VALUABLE DATA 15
Slide 16: Game-changing partnership with Perfect Corp
GAME-CHANGING PARTNERSHIP WITH Award winning, over 30 patents Iconic brands Over 950M downloads globally Comprehensive portfolio Advanced footprint in China Ambitious 2-year roll starting in Q2 16 *SOURCE: CBINSIGHTS (AUG, 2021)
Slide 17: Innovative services to provide a memorable experience
INNOVATIVE SERVICES TO PROVIDE A MEMORABLE EXPERIENCE Enables Coty to collect valuable Consumer data 1 3D facial modeling & true-to-life VTO. Identify various skin conditions + product Analyze skin tones to find shades recommendations 17
Slide 18: Measurable benefits from this technology
MEASURABLE BENEFITS FROM THIS TECHNOLOGY Online Conversion INCREASE OF UP TO Average Basket Value INCREASE OF UP TO Instore Conversion INCREASE OF UP TO Return Rate Decrease DECREASE OF UP TO *Relevant beauty brand benchmarks. Reference statistic only, results will vary based on web page configurati
Slide 19: Building real-time social listening capabilities globally
BUILDING REAL-TIME SOCIAL LISTENING CAPABILITIES GLOBALLY LEVERAGING SOCIAL LISTENING TO STRENGTHEN OUR CONSUMER KNOWLEDGE Full suite of capabilities to inform the business in real time on: BRAND SENTIMENT Measure brand equity and perception & REPUTATION PRODUCTS CONSUMER Measure product evaluation
Slide 20: Differentiating creative content @Coty
DIFFERENTIATING CREATIVE CONTENT @COTY TO PRODUCE AND ORCHESTRATE: INNOVATIVE, HIGHLY CREATIVE & RELEVANT CONTENT EXPERIENCES ON ALL TOUCHPOINTS Super creative ‘digital 1st’ content Content that sells (real time testing) Ahead of the game, cutting edge campaigns A data-driven & ROI-focused model Re-
Slide 21: CoverGirl paving the way
COVERGIRL PAVING THE WAY WITH A STRONG FOCUS ON THE PRODUCTION OF FULL CONTENT PACK FOR ERETAILERS & PURE PLAYERS AWARENESS ENGAGEMENT KV GIF ANIMATION UGC RELATABLE CONTENT LASH BLAST CLEAN PRODUCT SHOTS CAMPAIGN BEFORE/AFTER MASCARA CUSTOMER REVIEW KOL PRODUCT DEMO KOL POSTS BENEFITS & INGREDIENTS
Slide 22: Gucci deploying more storytelling content
GUCCI DEPLOYING MORE STORYELLING CONTENT EXAMPLE OF FULL PACK AWARENESS SOCIAL SHOTS TMALL DRIVERS ENGAGEMENT CELEBRITY KOL KV WECHA RED WEIBO LIVE-STREAMING T TMALL LAUNCH LU HAN X ALL STAR PLAN DOUYIN (with CTA to Tmall flagship) TMALL IP PRODUCT OFFER (All Star Plan) LIST BUNDLE WEITAO NEWS FEED
Slide 23: Social commerce as the new commerce
AS THE NEW COMMERCE COTY
Slide 24: Pioneering innovation on social commerce platforms
PIONEERING INNOVATION ON SOCIAL COMMERCE PLATFORMS TESTING & LEARNING ON TECH TO HELP OUR BRANDS & CREATORS SELL BETTER ON SOCIAL KYLIE + TIKTOK FOR BUSINESS PHILOSOPHY/COVERGIRL + FLIP One of the first brands to shop directly Early joiner for livestream + social selling on TikTok in US, UK & CA + c
Slide 25: Live streaming acceleration beyond China
LIVE STREAMING ACCELERATION BEYOND CHINA ON OUR WAY TO BUILD LONG TERM PROGRAMS WITH E-RETAILERS AND DEFINE LIVESTREAMING BEST IN CLASS USE CASES KYLIE X DOUGLAS GERMANY COVERGIRL LIVESTREAMING PURPOSE AND MULTICHANNEL STRATEGY “Covergirl to be the US livestreaming brand of tomorrow” Live content by
Slide 26: Kylie & Kim to pave path for our next D2C brands
3 KYLIE & KIM TO PAVE PATH FOR OUR NEXT D2C BRANDS 26
Slide 27: Pioneering D2C and learning for next steps
PIONEERING D2C AND LEARNING FOR NEXT STEPS Successful Cosmetics re-launch in July Strong balance of both new and existing Kylie’s Collections & Baby launch drove with new clean & vegan formulas customers driving sales major excitement and sales for DTC sites ▪ Cosmetics LFL revenue more than doubled
Slide 28: Advocacy power & virality amplification
ADVOCACY POWER & VIRALI AMPLIFICATION COTY
Slide 29: Transforming natural advocacy to virality in 3 steps
TRANSFORMING NATURAL ADVOCACY TO VIRALITY IN 3 STEPS FLYWHEEL OF SOCIAL LISTENING, ENGAGING & AMPLIFYING TO GENERATE MORE ADVOCATES 1. IDENTIFY BEST ADVOCATES 2. ENGAGE & AMPLIFY 3. CALIBRATE IMPACT 2.2 M organic After 1 week viral Omnichannel sales TikTok views in (vs. previous 4 wk avg): 1st 18 ho
Slide 30: Key takeaways
In less than a year, we set up the right organization, a relevant 1 framework and solid capabilities to maximize our performance and we already demonstrated it in FY21 and Q1FY22 2 Coty x Perfect Corp a win-win partnership, leading in innovative services & data collection in a post-cookie world KEY
Slide 31: 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