Coty Inc. · NYSE:COTY

Coty — Bank of America Consumer & Retail Conference 2023

18 slides from Coty's conference presentation, Mar 15, 2023

  1. Slide 1: Coty Presentation Bank of America Conference

    COTY PRESENTATION BANK OF AMERICA CONFERENCE MARCH 15,2023 1

  2. Slide 2: Coty: A Beauty Powerhouse

    COTY tancAster A BEAUTY | oe POWERHOUSE snofo SN — >

  3. Slide 3: Two Profitable Divisions Reaching Consumers Across Price Points

    TWO PROFITABLE DIVISIONS REACHING CONSUMERS ACROSS PRICE POINTS CONSUMER BEAUTY Adj EBITDA Margin 38% FY22 REVENUE BY DIVISION 62% PRESTIGE Adj EBITDA Margin 3

  4. Slide 4: Diversified Portfolio Across Categories

    DIVERSIFIED PORTFOLIO ACROSS CATEGORIES 6% 5% 7% PRESTIGE FRAGRANCES 4% CONSUMER BEAUTY COSMETICS PRESTIGE & MASS SKINCARE FY22 REVENUE BY CATEGORY PRESTIGE COSMETICS 24% 54% BODY CARE CONSUMER BEAUTY FRAGRANCES 4

  5. Slide 5: Diversified Portfolio Across Regions

    DIVERSIFIED PORTFOLIO ACROSS REGIONS CHINA NORTH AMERICA WESTERN 4% (INCL. KYLIE) EUROPE 31% 27% EASTERN EU & MIDDLE EAST 18% APAC 6% GLOBAL BRAZIL TRAVEL RETAIL & LATAM 7% 8% 5

  6. Slide 6: Beautiful Brand Portfolio Reaching Consumers Across Price Points

    BEAUTIFUL BRAND PORTFOLIO REACHING CONSUMERS ACROSS PRICE POINTS ULTRA-PREMIUM $150 - 450 PREMIUM + $50 - 150 PREMIUM $20 - 100 MASS $5 - 20 6

  7. Slide 7: Strong Financial Progress

    STRONG FINANCIAL PROGRESS 7

  8. Slide 8: Strong Value Accretion

    STRONG VALUE ACCRETION ~10-11% ~12-13% LFL CAGR CAGR x7 (ex FX) (INC. FX) ~$5.34- ~$955- 965M $0.35- ~$5.30B 5.36B ~$905M 0.36 ~$4.63B ~$762M $0.28 $0.05 FY21 FY22 FY23E FY21 FY22 FY23E FY21 FY22 FY23E NET REVENUES ADJUSTED EBITDA ADJUSTED EPS 8

  9. Slide 9: Strong Margin Expansion

    STRONG MARGIN EXPANSION UP UP ~ 400bps ~ 400bps ~13% ~64% ~63.7% ~11.6% ~60.0% ~9.4% FY21 FY22 FY23E FY21 FY22 FY23E ADJUSTED GROSS MARGIN ADJ. OPERATING MARGIN 9

  10. Slide 10: Strong Deleveraging and Cash Generation

    STRONG DELEVERAGING AND CASH GENERATION DOWN 2.7X ~6.8x ~4.7x ~$145M ~$550M >$400M ~4.1x FY21 FY22 1HFY23 FY21 FY22 FY23E LEVERAGE FREE CASH FLOW 10

  11. Slide 11: Q3 Core LFL Revenue Growth Tracking at ~10%

    Q3 CORE LFL REVENUE GROWTH TRACKING AT ~10% Sequential growth acceleration in both divisions Reinvesting incremental profit into critical skincare / complexion strategic initiatives like Lancaster Ligne Princiere and the new Burberry and Gucci foundations 11

  12. Slide 12: Increased FY23 Revenue Outlook, While Rebalancing Q3 / Q4 Profitability

    INCREASED FY23 REVENUE OUTLOOK, WHILE REBALANCING Q3 / Q4 PROFITABILITY Q3E Q4E FY23E NET REVENUE Upper end of ~10% +6-8% CORE LFL GROWTH +6-8% core LFL guidance RUSSIA IMPACT (2%) N/A (2%) FX IMPACT (LSD) (LSD) (MSD) ADJ GROSS MARGIN ~63% 62-63% ~64% - ~100bps benefit LY from Wella - Full benefit f

  13. Slide 13: Attractive Growth Algorithm

    ATTRACTIVE GROWTH ALGORITHM 13

  14. Slide 14: Accelerating Sales and Profit Momentum

    ACCELERATING SALES AND PROFIT MOMENTUM FY22 FY23E FY23-26E FY26 & Beyond Upper end of Upper end of NET REVENUES $5.30B +6-8% LFL CAGR +6-8% LFL CAGR +6-8% LFL CAGR GROSS MARGIN 63.7% Modest Expansion Mid 60s % by ‘25 Expanding EBITDA $905M $955-965M +9-11% CAGR +9-11% CAGR TAX RATE ~28% High 20% Hig

  15. Slide 15: Accelerate Free Cash Flow Generation

    ACCELERATE FREE CASH FLOW GENERATION FY22 FY23E FY26E ADJ EBITDA $905M $955-965M $1.2Bn - $1.3Bn 1X CASH COSTS <$150M <$50M NM CASH INTEREST ~$215M Mid $200s Low $100s CASH TAXES ~$100M ~$100M Low $100M WORKING CAP Positive Positive Positive CAPEX ~$175M Low $200s Low to mid $200s FREE CASH FLOW ~$5

  16. Slide 16: Strengthening Capital Structure to Enable Deleveraging and Capital Returns

    STRENGTHENING CAPITAL STRUCTURE TO ENABLE DELEVERAGING AND CAPITAL RETURNS CY23-CY25 CAPITAL ALLOCATION CY22 (Cumulative) PRIORITIES BY END OF CY25 Net Debt <$3.9B ~75% Net Debt <$2.5B FCF >$1.2B Deleverage ($0.4B Min / year) Financial Leverage ~2x Financial Leverage ~4.1x ~25% Capital Returns Capit

  17. Slide 17: Since 1904

    SINCE 1904

  18. Slide 18: Forward-Looking Statements

    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, strategic planning, targets and outlook for future reporting periods (including the extent, tim

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