Slide 1: Coty Strategic Transaction with KKR
COTY STRATEGIC TRANSACTION WITH KKR June 1, 2020
Slide 2: Transaction Summary
TRANSACTION SUMMARY KKR as a value-added partner joins forces with Coty ▪ Two pronged strategic transaction via: ➢ $1 bn investment by KKR in Coty ➢ 60 / 40 strategic partnership in Professional Beauty and Retail Hair – Enterprise Value of $4.3bn – $1bn of debt at JV -> Results in $2.5bn in net proc
Slide 3: Strong Deleveraging and Liquidity Position
STRONG DELEVERAGING AND LIQUIDITY POSITION Significant improvement in net leverage and liquidity going forward ▪ Significant cash proceeds enable accelerated deleveraging ▪ Strong expected liquidity position of $1.8 - 2.0bn exiting FY20 Development of Net Debt ($m) 7,405 600 2,535 4,900 4,500 970 40
Slide 4: FY19 Pro Forma Net Revenues and EBITDA
FY19 Pro Forma Net Revenues ($5.9B) FY19 Pro Forma EBITDA $1bn less stranded cost = $840m 3 ¹ Excludes the 40% of Wella EBITDA, which will not be fully consolidated in Coty’s P&L; includes estimates stranded costs of ~$160M
Slide 5: With Two Focused Global Operating Franchises
WITH TWO FOCUSED GLOBAL OPERATING FRANCHISES Prestige Beauty Mass Beauty Professional Beauty $2.6bn Revenue Metrics(1) $3.3bn Revenue $2.4bn Revenue Low single digit PF Operating Margin Key >15% PF Operating Margin ~15% Operating Margin To target growth in line with market at Mid-Single-Digit Growth
Slide 6: A Stronger Governance & Leadership
A STRONGER GOVERNANCE & LEADERSHIP Highly energized leadership team focused on delivery of transformation Chairman & CEO: COO and CFO: CTO: Board Peter Harf Pierre-Andre Terisse Gordon von Bretten • Founding Partner of JAB • 30 years of public company COTY • 5 years as an operating Finance experienc
Slide 7: Coty Transformation: All-In to Win
COTY TRANSFORMATION: “ALL-IN TO WIN” END-TO-END TRANSFORMATION ▪ Revenue generation - Kylie and other social media phenomena - Digital platform for all Coty brands - Rebuilding portfolios by focusing on hero SKU’s ▪ Cost reduction - Expand and accelerate the turnaround - Capitalize on Covid related
Slide 8: Our Immediate Priorities: Efficiency Program
OUR IMMEDIATE PRIORITIES: EFFICIENCY PROGRAM Cost Base Transformation of Coty underway ▪ Goal to amplify turnaround – net fixed cost reduction for core Coty of ~$600M by FY23 ▪ KKR will provide operational support via Chief Transformation Officer Management Plan FY23 Run-Rate Net Cost Savings ($m) ~
Slide 9: Value Creation
VALUE CREATION ▪ Improved capital structure through Wella stake disposal and KKR investment ➢ Significant deleveraging providing ample flexibility amidst COVID pandemic ➢ Improved liquidity enables undivided execution of transformation ▪ Participation in Private Equity returns on $1.3bn remaining We
Slide 10: 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, the Company’s strategic pla