Slide 1: Coty 2Q FY25 Earnings Call
COTY 2Q FY25 EARNINGS CALL February 10, 2025
Slide 2: 2Q25 Summary
2Q25 SUMMARY SUE NABI CHIEF EXECUTIVE OFFICER 2
Slide 3: FY25 transition year with healthy beauty market and margin expansion
BEAUTY MARKET REMAINS FY25 TRANSITION YEAR, WITH BROADLY HEALTHY PRESSURE IN SELECT MARKETS CONTINUED GROSS AND EBITDA PROTECTING FREE CASH FLOW MARGIN EXPANSION AND DELEVERAGING PATH 3
Slide 4: Strong but normalizing prestige fragrance market growth
STRONG BUT NORMALIZING PRESTIGE FRAGRANCE MARKET GROWTH ~LDD% ~LDD% ~HSD% FY24 1Q25 2Q25 4 Retail Panel (NPD) – EUR5+NA+MX - Selective Distribution
Slide 5: Mass beauty market continued to slow
MASS BEAUTY MARKET CONTINUED TO SLOW ~HSD % ~MSD % ~LSD % FY24 1Q25 2Q25 5 NielsenIQ GTC covering B&M and e-commerce channels and countries: Argentina, Australia, Brazil, Canada, France, Germany, Great Britain, Italy, Netherland, Poland, Spain, Switzerland, USA.
Slide 6: Continued pressure in pockets of the business
CONTINUED PRESSURE IN POCKETS OF THE BUSINESS COMBINED IMPACT OF ~3% LFL IN Q2 CHINA U.S. (INCL. HAINAN) CONSUMER BEAUTY LSD% of Mix ASIA LDD% TRAVEL RETAIL of Mix AUSTRALIA LSD% of Mix LSD% of Mix 6
Slide 7: 1H25 LFL growth per segment and region
1H25 LFL GROWTH PER SEGMENT/ PER REGION PRICE POINT 5% EMEA 4% Prestige 1% Americas Consumer -2% Beauty -8% APAC Notes: All figures refer to LFL growth. LFL results for 1H25 included a contribution from the Argentina hyperinflationary environment of 1% for total Coty, 1% for the Prestige division, 2
Slide 8: 1H25 volume price mix dynamics
1H25 VOLUME PRICE MIX DYNAMICS VOLUME / PRICE / MIX DYNAMICS Growth in fragrance volumes (Prestige & Consumer Beauty); Volume (LSD)% Declines in most other categories Price LSD-MSD % (est.) Mix & Other NEUTRAL Benefit from premiumization continues (est.) Notes: All figures refer to LFL growth. 8
Slide 9: Growing ahead of leading global beauty companies
In9 14 of the last quarters, we have grown ahead of the leading global beauty companies 9
Slide 10: LFL growth versus leading beauty companies
3Q 4Q 1Q 2Q 3Q 4Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 LFL Growth CY21 CY21 CY22 CY22 CY22 CY22 CY23 CY23 CY23 CY23 CY24 CY24 CY24 CY24 21% 12% 19% 16% 9% 4% 15% 17% 18% 11% 10% 5% 4.5% -1% Leading Beauty 13% 11% 14% 13% 9% 8% 13% 14% 11% 7% 9% 5% 3% 2.5% Company #1 Leading Beauty 18% 11% 9% -8% -5% -11% -8% 4%
Slide 11: Financial Results & FY25 Guidance
FINANCIAL RESULTS & FY25 GUIDANCE LAURENT MERCIER CHIEF FINANCIAL OFFICER 11
Slide 12: 2% LFL growth in 1H25 on elevated comparisons
2% LFL GROWTH IN 1H25 ON ELEVATED COMPARISONS +2% +14% LFL LFL ~$3.4B ~$3.4B +6% LFL ~$2.9B 1H23 1H24 1H25 LFL results for 1H25 included a contribution from the Argentina hyperinflationary environment of 1% for total Coty. 12
Slide 13: Strong adjusted gross margin expansion
STRONG ADJUSTED GROSS MARGIN EXPANSION +170 bps +180 bps 66.8% 66.1% 65.1% 64.3% 2Q24 2Q25 1H24 1H25 13
Slide 14: Maintaining strong A&CP support
MAINTAINING STRONG A&CP SUPPORT ~27% ~26% ~26% ~25% 2Q24 2Q25 1H24 1H25 14
Slide 15: Strong adj EBITDA growth
STRONG ADJ EBITDA GROWTH +3% / +90 bps ~$751M ~$727M +7% / +220 bps ~$391M ~$366M 2Q24 2Q25 1H24 1H25 15
Slide 16: Future proofing the organization
FUTURE PROOFING THE ORGANIZATION DRIVING AGILITY AND ADDITIONAL EFFICIENCIES ~$55M SAVINGS in 1H25 >$120M SAVINGS TARGET FOR FY25 16
Slide 17: Strong action plans under 5 pillars
STRONG ACTION PLANS UNDER 5 PILLARS 1 CENTERS OF EXCELLENCE 2 OMNICHANNEL APPROACH 3 4 MAXIMIZING SPEED TO EMERGING TECH MARKET AND AI BENEFITS 5 REGIONAL FOOTPRINT ALIGNMENT 17
Slide 18: Declining interest expense accelerating EPS growth
DECLINING INTEREST EXPENSE ACCELERATING EPS GROWTH ~$130M ~$116M 1H24 1H25 18
Slide 19: Strong adj EPS growth
STRONG ADJ EPS GROWTH EXCLUDING THE EQUITY SWAP +21% YoY $0.41 $0.03 discrete tax hurt +16% YoY $0.34 $0.22 $0.19 2Q24 2Q25 1H24 1H25 Reflects diluted adjusted EPS excluding equity swap. 19
Slide 20: Solid 1H25 free cash flow
SOLID 1H25 FREE CASH FLOW ~$419M ~$411M ~($8)M 1Q25 2Q25 1H25 20
Slide 21: Continuing deleveraging path
CONTINUING DELEVERAGING PATH TARGETING INVESTMENT GRADE PROFILE ~6.8x ~4.7x -0.2x ~4.1x YoY ~3.3x ~2.9x FY21 FY22 FY23 FY24 2Q25 Leverage calculated using financial net debt to TTM adjusted EBITDA. 21
Slide 22: Transition year in FY25, solid profit, EPS and FCF growth path
TRANSITION YEAR IN FY25, WHILE PROFIT, EPS AND FCF ON SOLID GROWTH PATH 22
Slide 23: CY25 beauty market to grow L-MSD%
CY25 BEAUTY MARKET TO GROW L-MSD% WITH SELL-IN TRACKING BELOW 23
Slide 24: 2H25 framework
2H25 FRAMEWORK REVENUE LFL LFL trends broadly consistent with Q2 at -1% to -2% REPORTED REVENUE -MSD%; including approx. 3% to 4% headwind from FX ADJ GROSS MARGIN Slightly lower YoY, and up ~100 basis points vs. 2H23 Adj EBITDA margin expansion of 70 to 90 basis points, implying ADJ EBITDA +LSD% ad
Slide 25: FY25 guidance
FY25 GUIDANCE REVENUE LFL Flattish LFL -LSD% YoY, including ~3% headwind from FX and ~1% scope REPORTED REVENUES headwind in 1H25 from the divestiture of Lacoste license ADJ GROSS MARGIN Continued expansion YoY Adj EBITDA margin expansion of 70 to 90 basis points, implying ADJ EBITDA +LSD% adj EBITD
Slide 26: Multiple initiatives to support acceleration in FY26
MULTIPLE INITIATIVES TO SUPPORT ACCELERATION IN FY26 26
Slide 27: Continued momentum & new growth opportunities
CONTINUED MOMENTUM & NEW GROWTH OPPORTUNITIES SUE NABI CHIEF EXECUTIVE OFFICER 27
Slide 28: Overdriving in prestige & mass fragrance
1 2 OVERDRIVING FUELING COSMETICS IN PRESTIGE & BRANDS THROUGH MASS ADVOCACY AND FRAGRANCE AGILE INNOVATION 3 4 CAPTURING REACHING SIGNIFICANT KEY ESG GROWTH MILESTONES OPPORTUNITIES 28
Slide 29: Leading in fragrances across all price points
LEADING IN FRAGRANCES ACROSS ALL PRICE POINTS
Slide 30: Prestige and mass fragrance growth
COTY’S 1H PRESTIGE FRAGRANCE SELL-OUT +HSD% & MASS FRAGRANCE Q2 LFL SALES +MSD% 30 Prestige sell-out data is sourced from third-party market research firms, including but not limited to Circana, as well as retailer data, and supplemented by Coty’s internal estimates for markets where external data i
Slide 31: Hugo Boss #2 male brand
HUGO BOSS #2 MALE BRAND IN EUR (+1 RANK YOY) & 1H25 SALES +MSD% LFL 31
Slide 32: Burberry CY24 sell-out growth
BURBERRY CY24 SELL-OUT GROWTH >30% & 3x THE MARKET 32
Slide 33: Chloe strong entry into U.S.
CHLOE 1H25 SALES STRONG ENTRY +MID- INTO TEENS% U.S. LFL 33
Slide 34: Daisy #1 franchise in UK
MARC JACOBS DAISY #1 FRANCHISE IN UK & 1H25 MARC JACOBS SALES +MSD% LFL 34
Slide 35: Davidoff growth and new ambassador
DAVIDOFF +HSD% Y/Y GROWTH IN LFL SALES IN 1H25 NEW AMBASSADOR ANNOUNCED & KEY INITIATIVE IN 2H25 35
Slide 36: Adidas Vibes largest CB launch in 6 years
ACCELERATING MASS FRAGRANCE ADIDAS VIBES LARGEST CB LAUNCH IN 6 YEARS & FUELING +DD% Y/Y GROWTH IN ADIDAS FRAGRANCE 1H25 SALES 36
Slide 37: Applying Agile Beauty to mass fragrances
APPLYING AGILE BEAUTY TO MASS FRAGRANCES 37
Slide 38: New license agreement with fragrance launch in CY26
NEW LICENSE AGREEMENT WITH FRAGRANCE LAUNCH IN CY26 38
Slide 39: Fueling cosmetics brands through advocacy and agile innovation
FUELING COSMETICS BRANDS THROUGH ADVOCACY AND AGILE INNOVATION 39
Slide 40: CoverGirl social media and online market share
COVERGIRL STEP-CHANGING SOCIAL MEDIA & ONLINE MARKET SHARE EMV +339% L3M MKT SHARE YoY +60 bps ONLINE #5 RANK Global EMV ranking is tracked within our competitive set. Source: Traacker. 40 Market share source: Nielsen P3M Nov 2024 - CB total Online Market defined as US + UK + DE + ES + FR + NL + ARG
Slide 41: Rimmel social media and online market share
RIMMEL STEP-CHANGING SOCIAL MEDIA & ONLINE MARKET SHARE EMV +13% L3M MKT SHARE YoY +30 bps ONLINE #7 RANK Global EMV ranking is tracked within our competitive set. Source: Traacker. 41 Market share source: Nielsen P3M Nov 2024 - CB total Online Market defined as US + UK + DE + ES + FR + NL + ARG – E
Slide 42: Coty brands broadly ahead of legacy brands globally
COTY BRANDS BROADLY AHEAD OF LEGACY BRANDS GLOBALLY Omnichannel Market Share YoY (L3M) Max L’Oreal Rimmel CoverGirl Factor Revlon Neutrogena Maybelline Paris 42 Market share source: CC Mass NIQ xAOC + Amazon 1P. Period ending 11/30/2024.
Slide 43: CoverGirl outperforms other legacy brands in the US
COVERGIRL OUTPERFORMS OTHER LEGACY BRANDS IN THE US U.S. Omnichannel Market Share (L3M) CoverGirl L'Oreal Paris Maybelline Revlon Market share source: CC Mass NIQ xAOC + Amazon 1P. 43 Period ending 11/30/2024.
Slide 44: Capturing significant growth opportunities
CAPTURING SIGNIFICANT GROWTH OPPORTUNITIES 44
Slide 45: Coty's Q2 e-commerce sell-out
COTY’S Q2 E-COMMERCE SELL-OUT +DD% AHEAD OF MARKET WITH SELL-IN WELL BELOW 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) December 2024. Additionally, the data includes estimated d
Slide 46: Reinvigorating Lancaster across Europe and China
REINVIGORATING LANCASTER ACROSS +DD % Y/Y GROWTH IN LFL SALES IN 2Q25 EUROPE & CHINA & 13x GROWTH IN EUROPE EMV 46
Slide 47: Expanding in growth engine markets
EXPANDING IN GROWTH ENGINE MARKETS NORTH ASIA ~21% of Coty’s sales THE MIDDLE EAST MEXICO INDIA CHINA BRAZIL & LATAM AFRICA SOUTHEAST ASIA Up ~10% LFL in 1H25 LFL results for 1H25 included a contribution from the Argentina hyperinflationary environment of 5% for growth engine markets. 47
Slide 48: LATAM including Brazil
LATAM INCL. BRAZIL ~9% OF COTY'S SALES & GROWING MSD% * IN 1H25 48 * Excludes the benefit from hyperinflation in Argentina.
Slide 49: Reaching key sustainability milestones
REACHING KEY SUSTAINABILITY MILESTONES 49
Slide 50: Coty achievement in 2024 CDP disclosure
COTY ACHIEVEMENT IN 2024 CDP DISCLOSURE CLIMATE SCORE: A- (IMPROVED FROM B)
Slide 51: Pivotal year in FY25, growth acceleration into FY26
PIVOTAL YEAR IN FY25, WITH GROWTH ACCELERATION INTO FY26 & BEYOND 51
Slide 52: Appendix
APPENDIX 52
Slide 53: Adjusted EPS delivery
Q2 1H25 ADJUSTED EBITDA 391 751 DEPRECIATION (57) (114) NET INTEREST (54) (116) INCOME TAX 44 101 ADJUSTED OTHER (134) (187) EPS DELIVERY ADJ PREFERRED DIVIDEND (3) (7) DILUTED SHARE COUNT 875M 875M DILUTED ADJUSTED EPS * 0.11 0.26 DILUTED ADJ EPS EXCL. EQUITY SWAP 0.22 0.41 * Diluted adjusted EPS c
Slide 54: 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,