Coty Inc. · NYSE:COTY
Coty — Investor Day (July 2023)
159 slides from Coty's investor day presentation, Jul 6, 2023
Slide 1: Unleashing Coty's Growth Engine Fueled by European Heritage and Innovation
UNLEASHING COTY'S GROWTH ENGINE FUELED BY EUROPEAN HERITAGE AND INNOVATION I N V ES TOR C O N F EREN CE P R E S ENT ATION JULY 6, 2023 1
Slide 2: Today's Presenters
TODAY’S PRESENTERS SUE NABI LAURENT MERCIER CAROLINE ANDREOTTI ALEXIS VAGANAY Chief Executive Chief Financial Chief Commercial Officer Chief Commercial Officer Officer Officer Prestige Consumer Beauty 2
Slide 3: Agenda
AGENDA Coty, a beauty powerhouse SUE NABI 2:00- 2 : 3 0 p m C E T with strong European heritage CEO Executing strategy, with significant SUE NABI CAROLINE ANDREOTTI ALEXIS VAGANAY 2:30- white space opportunities CEO CEO, Prestige CCO, Consumer Beauty 3:30pm CET 3:30- 4:00pm CET BREAK Executing strat
Slide 4: Key Messages
KEY MESSAGES • Coty is on the new strategy unveiled in 2021 • Beauty across markets and categories • Coty has end-to-end capabilities and to propel next phase of growth • Over driving business momentum • Capturing , as we grow market share in China and Travel Retail • Strong towards sustainability a
Slide 5: Coty: A Beauty Powerhouse with Strong European Heritage & Operations
COTY A BEAUTY POWERHOUSE WITH STRONG EUROPEAN HERITAGE & OPERATIONS 5
Slide 6: Coty is a Global Beauty Powerhouse
COTY IS A GLOBAL BEAUTY POWERHOUSE $5.3B 8 FY22 NET REVENUES MANUFACTURING PLANTS ~11K EMPLOYEES Source: GlobalData (2021) 6
Slide 7: Leading Brand Portfolio Across 2 Segments
WE HAVE A LEADING BRAND PORTFOLIO ACROSS 2 SEGMENTS PRESTIGE CONSUMER BEAUTY 7
Slide 8: Of Beauty Heritage with Deep French Roots
OF BEAUTY HERITAGE WITH DEEP FRENCH ROOTS Coty founded as a Funding received from Pierre Coty had become a Acquired Merged with the Coty acquired Sold 60% stake fragrance house Marie Châles; new laboratory global leader in beauty by Joh. A. Lancaster Group of Bourjois from in Wella to KKR for in Par
Slide 9: Our French & American Identity is at the Root of Coty
OUR FRENCH & AMERICAN IDENTITY IS AT THE ROOT OF COTY
Slide 10: Has a Special Connection With
HAS A SPECIAL CONNECTION WITH Just around the corner from Les Hosted the Lady Liberty Banquet Grands Magasins du Louvre, where in 1875, the kick-off fund-raising François Coty famously dropped event for the Statue of Liberty, La Rose Jacqueminot perfume on commemorating historic relations the floor
Slide 11: Placeholder for Video
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Slide 12: Diversified Portfolio Across Price Points & Categories
DIVERSIFIED PORTFOLIO ACROSS PRICE POINTS & CATEGORIES 7% 5% 24% 38% 62% 56% 5% 3% PRESTIGE PRESTIGE PRESTIGE & CONSUMER CONSUMER BEAUTY CONSUMER BEAUTY BODY CARE FRAGRANCES COSMETICS BEAUTY SKINCARE COSMETICS FRAGRANCES 12
Slide 13: Diversified Regional Portfolio with Significant White Space
DIVERSIFIED REGIONAL PORTFOLIO WITH SIGNIFICANT WHITE SPACE NORTH CHINA AMERICA 4% (INCL. KYLIE) WESTERN Beauty Industry: 30% EUROPE ~13% Beauty Industry: 26% ~20% Beauty Industry: EASTERN EU ~20% & MEA 18% Beauty Industry: APAC ~8% 6% GLOBAL Beauty TRAVEL RETAIL Industry: 8% BRAZIL ~20% Beauty & LA
Slide 14: Founded in Paris in 1904 with Continued Strong Dynamic in Europe
FOUNDED IN PARIS IN 1904 WITH A CONTINUED STRONG DYNAMIC IN EUROPE In European Fragrances In European Color Cosmetics Countries with Direct Presence First boutique opened European Founded Brands in La Place Vendôme, Orveda as Sponsor Employees based in EMEA Fragrance factory Coty’s R&D in Chartres,
Slide 15: Many of Our Leading Brands Founded & Rooted in Europe
MANY OF OUR LEADING BRANDS FOUNDED & ROOTED IN EUROPE 15
Slide 16: Industry Leading End-to-End Capabilities
INDUSTRY LEADING END-TO-END CAPABILITIES MARKETING & INNOVATION / BRANDS MANUFACTURING DISTRIBUTION DIGITAL R&D 16
Slide 17: 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 17
Slide 18: Our Brands Have a Strong Appeal with Gen Z
OUR BRANDS HAVE A STRONG APPEAL WITH GEN Z CLEAN, VEGAN & WORKING WITH LEADING VIRAL ON SOCIAL MEDIA SUSTAINABLE BRAND AMBASSADORS 394m #KindandFree Kylie 53m 6B Views Jenner >100M Views 360m Kim 9m Kardashian 211m Miley 18m Cyrus 44M Views 18
Slide 19: Leading Expertise & IP in Our Global Centers of Excellence
LEADING EXPERTISE & IP IN OUR GLOBAL CENTERS OF EXCELLENCE FRAGRANCE SKIN & CENTER BODY CENTER OF EXCELLENCE OF EXCELLENCE (SWITZERLAND) (CHINA) COSMETICS SKINCARE CENTER CENTER OF EXCELLENCE OF EXCELLENCE (USA) (MONACO) BODYCARE CENTER OF EXCELLENCE (BRAZIL) 19
Slide 20: Leading Expertise & IP in Fragrances
LEADING EXPERTISE & IP IN FRAGRANCES Years of expertise reinventing modern perfumery Fragrance Scientists, Evaluators and Industry experts Active patents & patent applications 20
Slide 21: 360º Fragrance Expertise
360º FRAGRANCE EXPERTISE BIOMIMICRY ACCORDS PERFORMANCE EVALUATION COLOR MODELLING R² = 0.9 Color Intensity Concentration (%) 21
Slide 22: Leading IP Around Long-Lasting & Carbon Captured Ethanol Fragrances
LEADING IP AROUND LONG-LASTING & PIONEER IN CARBON CAPTURED ETHANOL BASED FRAGRANCES CYCLODEXTRINS MODULATION CARBON CAPTURE ETHANOL • Freshness release over time • Extends evaporation profile of • First globally distributed ingredients fragrance manufactured • Moisture trigger release from 100% rec
Slide 23: Emotional Benefits of Fragrances & Neuroscience
EMOTIONAL BENEFITS OF FRAGRANCES & NEUROSCIENCE Academic project with the Adidas culture of sports Launches with measure university of Geneva and launch with fragrances or characterization of the Firmenich “fragrances validated by FMRI studies emotional signature of & sleep” fragrances: Happiness, r
Slide 24: Leading Expertise in Color Cosmetics
LEADING EXPERTISE IN COLOR COSMETICS Years of expertise in Color Cosmetics Scientists, Evaluators and Industry experts In clean color cosmetics for the mass channel Patent applications across Mascara (3), Lip (2), and Nail (2) to capture differentiated technology 24
Slide 25: Coty at the Forefront of Mascara Innovation
COTY AT THE FOREFRONT OF MASCARA INNOVATION RIMMEL BOURJOIS COVERGIRL Inventor of Innovative design Invented clean 1st Mascara functioning as two makeup & mascaras in one skinified makeup 25
Slide 26: Leading Expertise in Skincare
LEADING EXPERTISE IN SKINCARE Active skincare patents Published scientific studies Research programs with top universities & hospitals Innovations in the pipeline Dedicated skincare scientists 26
Slide 27: Reinventing Skincare for the 21st Century Since 1948
REINVENTING SKINCARE FOR THE 21ST CENTURY SINCE 1948 Stem Cell based Retinol patent DNA repair Genetic & Epigenetic Sun Repair Omnipotent Serum skincare PREPARING FOR NEXT GEN SKIN INNOVATION UV Protector Oxygen Delivery Cationic Liposome Full Light Technology Ligne Princiere Dose of Wisdom range in
Slide 28: Coty's Global & Scaled Manufacturing Capabilities
COTY’S GLOBAL & SCALED MANUFACTURING CAPABILITIES Coty owns the largest Fragrance factory in the world in Barcelona 8 manufacturing Producing ~80% facilities across >1 billion of products 4 products produced continents annually in-house Manufacturing Locations (2 in US, Brazil, China, France, Monaco
Slide 29: Our Scaled Commercial & Distribution Capabilities
OUR SCALED COMMERCAL & DISTRIBUTION CAPABILITIES Access to Region 125+ markets >500,000 tailored, multi- Close focus on and over sell-out levels orders distributed channel and retailer 100,000 annually distribution inventories doors strategies 29
Slide 30: Partner of Choice for Global Beauty Brand Licensors
WE ARE THE PARTNER OF CHOICE FOR GLOBAL BEAUTY BRAND LICENSORS beauty expertise, incl. patents for long- consumer insights & largest fragrance plant with ~30 directly- in licensing business lasting fragrances testing in the world producing managed markets and and innovations track >180M units/yr rea
Slide 31: Long-Standing Partnerships with Our Key Licensors
LONG-STANDING PARTNERSHIPS WITH OUR KEY LICENSORS CONCENTRATED, HIGH QUALITY BRAND LONG TERM LICENSE AGREEMENTS PORTFOLIO TOP 7 No sizeable license up for renewal BRANDS in next 5 years of prestige fragrance sales 25+ years long relationships on average ~11-year average remaining duration for our to
Slide 32: Strengthening & Conquering Through Balance of Core & White Space Brands
STRENGTHENING & CONQUERING THROUGH BALANCE OF & BRANDS CORE W H I T E S PA C E CORE CORE WHITE SPACE WHITE SPACE WHITE SPACE LUXURY & ENTRY CONSUMER BEAUTY PRESTIGE SKINCARE ULTRA PREMIUM NICHE PRESTIGE MAKEUP PRESTIGE FRAGRANCES MAKEUP FRAGRANCES SIGNATURES ~$40B Market / ~$40B Market / ~$70B Marke
Slide 33: Pursuing Sustainable and Balanced Growth
WE’RE PURSUING SUSTAINABLE AND BALANCED GROWTH PER SEGMENT / PRICE POINT PER REGION BOTH PRICE AND VOLUME 15% EMEA 10% Prestige LSD % Volume 9% Americas Consumer 11% Beauty HSD % Price & Mix 6% APAC Notes: All figures refer to LFL growth, excluding Russia exit impact. 33
Slide 34: Pursuing Sustainable and Balanced Growth
WE’RE PURSUING SUSTAINABLE AND BALANCED GROWTH Other Gucci Hugo Boss Monange Chloe Coty 3QYTD sales Calvin Klein +10% LFL Rimmel Burberry CoverGirl Marc Jacobs Leading brands all at or below ~10% of sales Notes: All figures refer to LFL growth, excluding Russia exit impact. 34
Slide 35: Continuing to Build a Leading Beauty Powerhouse
CONTINUING TO BUILD A LEADING BEAUTY POWERHOUSE ACHIEVED TO DO 48% 38% ~33% FY19 Q3 FYTD FY26 REVENUE REVENUE AMBITION M I X (1) MIX 52% 62% ~67% Note: (1) Excludes Wella business, sold in 2020. 35
Slide 36: Seasoned Beauty Executives Successfully Leading New Coty
SEASONED BEAUTY EXECUTIVES SUCCESSFULLY LEADING NEW COTY 3 6 3 3 3 3 1 SUE NABI LAURENT MERCIER GORDON VON BRETTEN ANNA VON BAYERN KRISTIN BLAZEWICZ JEAN-DENIS PRIYA SRINIVASAN Chief Executive Chief Financial Chief Transformation Chief Corporate Chief Legal Officer and MARIANI Chief People and Offic
Slide 37: Fearless Kindness
FEARLESS FEARLESS FEARLESS KINDNESS KINDNESS KINDNESS to ourselves to others the planet 37
Slide 38: Coty Overview
COTY OVERVIEW FRAGRANCE SKINCARE COSMETICS • market position in • Skincare strategy in • Extension of Prestige brands into cosmetics globally driving • Strong at premium across price points regions • Expanding distribution • Strong and and assortment behind • Large internal , and , pipeline includin
Slide 39: Coty Overview
COTY OVERVIEW FRAGRANCE SKINCARE COSMETICS • Consumer Beauty • Local brands in Brazil • fragrances back to strong and sales growth, led by • Tangible white space for • Seizing , • Coty at the forefront of including in largest • Extending cosmetics the fragrance market, brands into trend 39
Slide 40: Executing Strategy with Significant White Space Opportunities
EXECUTING STRATEGY WITH SIGNIFICANT WHITE SPACE OPPORTUNITIES 40
Slide 41: Beauty is One of the Fastest Growing Consumer Categories
BEAUTY IS ONE OF THE FASTEST GROWING CONSUMER CATEGORIES AND WE’RE VERY WELL POSITIONED TO WIN SUPPORTIVE TRENDS ~6% ~8% Global Beauty China Beauty • Rising (~+800m by 2030) 22-27E CAGR 22-27E CAGR $427bn $66bn • Structural momentum • ~11% ~10% • Focus on / Travel Retail E-commerce Beauty 22-27E Bea
Slide 42: Our 6 Strategic Pillars
OUR 6 STRATEGIC PILLARS #1 #2 #3 #4 #5 #6 Stabilize and Accelerate luxury Build skincare Build Expand in China Become a grow consumer fragrances portfolio across e-commerce and Travel Retail, beauty leader beauty makeup & become a both divisions and direct-to- led by prestige in sustainability brand
Slide 43: Capturing the Value Conscious Consumer
#1 CAPTURING THE VALUE CONSCIOUS CONSUMER 43
Slide 44: Coty Consumer Beauty
COTY CONSUMER BEAUTY 3Q FYTD YoY CONSUMER BEAUTY MARKET GROWTH HSD % COTY CONSUMER BEAUTY LFL SALES +11% Source: Nielsen, Amazon 44
Slide 45: Heritage Brands Evolved to Meet Today's Trends
HERITAGE BRANDS EVOLVED TO MEET TODAY’S TRENDS RIMMEL MAX FACTOR BOURJOIS COVERGIRL ADIDAS Founded Founded Founded in Founded in Founded in Historic UK focused Hollywood glamor with a Effortless French beauty Iconic consumer brand A truly Global brand at brand meeting the growing inclusive with a ne
Slide 46: Strong and Growing Market Positions
STRONG AND GROWING MARKET POSITIONS RIMMEL MAX FACTOR BOURJOIS COVERGIRL ADIDAS Founded Founded Founded in Founded in Founded in #1 in UK #6 in Europe #3 in France #3 in USA #1 Sport brand in #4 in Europe #1 foundation on #6 in KSA beauty #2 in Argentina Douyin during 618 #9 in Europe +15bps of glob
Slide 47: Coty Brands are Destination for Gen X
COTY BRANDS ARE DESTINATION FOR GEN X: MAX FACTOR MIRACLE COVERGIRL PURE FOUNDATION SIMPLY AGELESS 47
Slide 48: Coty Brands are Destination for Gen Z
COTY BRANDS ARE DESTINATION FOR GEN Z: BOURJOIS HEALTHY MAX FACTOR MIRACLE SALLY HANSEN RIMMEL KIND & FREE MIX FOUNDATION PURE NAIL CARE GOOD.KIND.PURE 48
Slide 49: Simplified and Reshaped Consumer Beauty Portfolio for Sustained Growth
WE HAVE SIMPLIFIED AND RESHAPED OUR CONSUMER BEAUTY PORTFOLIO FOR SUSTAINED GROWTH • brands (Covergirl, Rimmel, Sally Hansen, Adidas, Max Factor) now account for of Consumer Beauty portfolio • Improved SKU productivity (NR / SKU vs. 2YA) and simplified portfolio (SKU count vs 2YA) • of Covergirl, Ri
Slide 50: Yh = a
Yh = a ee APPROVED Yr (" SEPTEMBER 2022) .
Slide 51: New Thrillseeker Mascara
NEW THRILLSEEKER MASCARA
Slide 52: 52
52
Slide 53: ee FIN
ee FIN ALL DAY FLAW,
Slide 54: Bourjois Clean & Vegan Beauty / Cardboard Blisters
BOURJOIS CLEAN & VEGAN BEAUTY / CARDBOARD BLISTERS JUNE 2023 FROM PLASTIC TO CARDBOARD BLISTER 48 54
Slide 55: New Tinted Beautifier
NEW TINTED BEAUTIFIER
Slide 56: Easy Breezy Beautiful
EASY BREEZY BEAUTIFUL THE CLEAN, VEGAN, CRUELTY-FREE BRAND MAKING BEAUTY EASY BREEZY. FOR EVERYONE. 56
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57
Slide 58: China Content – Focused on Skin Hydration
CHINA CONTENT – FOCUSED ON SKIN HYDRATION 58
Slide 59: Coty Brazil Portfolio Made of Winning Brands
COTY BRAZIL PORTFOLIO MADE OF WINNING BRANDS: MONANGE RISQUÉ PAIXÃO BOZZANO #3 MASTERBRAND in female #1 NAIL POLISH #1 BODY OIL #1 PRE & POST SHAVING #3 DEODORANT in female 30% market share #2 BODY LOTION #1 STYLING 50% Household penetration 1st choice for 80% consumers +380bps in value sales #6 DEO
Slide 60: Drivers for Growth
DRIVERS FOR GROWTH: ➢ Brazil is the globally at ➢ Coty campaign with new started in with ~2,000+ POS initially ➢ Brand portfolio and offering to Brazilian consumer preferences ➢ (appropriate for fragrances) achievable through current distribution network 60
Slide 61: Consumer Beauty: Mastering Cosmetics Trend and Distribution Expansion
CONSUMER BEAUTY: MASTERING CAPITALIZING ON DISTRIBUTION EMERGING MARKETS “VIRALITY” OF GLOBAL “WELL BEING” EXPANSION IN EXPANSION COSMETICS TREND EXISTING MARKETS Middle East Latin America £36 Vs Africa £4.49 Southeast Asia POWDER 61
Slide 62: Capturing the Luxury Consumer
#2 CAPTURING THE LUXURY CONSUMER 62
Slide 63: Fragrance Growth Acceleration Fuelled by Structural Drivers
FRAGRANCE GROWTH ACCELERATION FUELLED BY STRUCTURAL DRIVERS US & CHINA GROWING E-COM P R E M I U M I Z AT I O N SOCIAL BUZZ MOMENTUM & RETURN TO B&M 63
Slide 64: Fragrance Growth Acceleration
FRAGRANCE GROWTH ACCELERATION: MORE MORE WITH MORE SUPER PREMIUM G R O W I N G FA S T E S T Share gains across Europe** MORE MORE ULTRA PREMIUM USERS TOTAL USERS +25% +41% +70bps +110bps 33% Niche Fragrance Users 23% Fine Fragrance Users pts vs 2020* pts vs 2020* MORE USERS MORE USERS 26% Super Heav
Slide 65: Latest Data Confirms Prestige Fragrance Momentum Across US and Europe
LATEST DATA CONFIRMS PRESTIGE FRAGRANCE MOMENTUM ACROSS THE US AND EUROPE Growth vs. 3Y Ago +60% +28% + 16% + 15% + 13% + 11% L12M L3M L12M L3M USA Prestige Fragrance Growth YoY Western Europe Prestige Fragrance Growth YoY Source: Retail Panel (NPD) – EUR5+NA Jan-Mar23 DATA – Selective Distributions
Slide 66: Consumers Increasingly Buying for Themselves, Rather Than Gifting
CONSUMERS INCREASINGLY BUYING FOR THEMSELVES, RATHER THAN GIFTING… CY22 PRESTIGE C Y 2 2 P R E S T I FRAGRANCE MARKET GE FRAGRANCE MA RKET +14% JUICES GIFTSETS (% OF TOTAL) (% OF TOTAL) Source: Retail Panel (NPD) – EUR5+NA CY22 DATA - Selective Distribution (US – TMM) 66
Slide 67: More Fragrance Usage & Occasion Drivers
…WITH MORE FRAGRANCE USAGE & OCCASION DRIVERS CONFIDENCE BOOSTER FEEL GOOD FACTOR SOCIAL CONNECTOR ESCAPISM 67
Slide 68: Confidence Booster, Feel Good, Social Connector, Escapism
CONFIDENCE BOOSTER FEEL GOOD FACTOR SOCIAL CONNECTOR ESCAPISM I want to stand out in the Before covid I only wore We spend so much time on My XYZ fragrance arrived crowd. Fragrance gives me fragrance when I went out, social media that when we go today! It smells like an that self confidence but duri
Slide 69: Growing Fragrance Market Unlocking Potential for Coty
GROWING FRAGRANCE MARKET UNLOCKING POTENTIAL FOR COTY Additional sales if reach Coty’s Current fine EU penetration of >50% fair share fragrance penetration Additional sales if reaching Coty’s Current fine 15% medium term estimate fair share fragrance penetration EU/US data: Kantar Panel mid-March -
Slide 70: Designer Fragrances Still Key but Niche Pure Players Performing Best
DESIGNER FRAGRANCES STILL KEY BUT NICHE PURE PLAYERS PERFORMING THE BEST CY19 CY22 CY19 CY22 CY19 CY22 74% 75% 10% 8% 4% 6% DESIGNER BRANDS ESTABLISHED BRANDS NICHE PURE-PLAYERS +28% -1% +75% 70
Slide 71: Capturing Ultra Premium Fragrance Opportunity
CAPTURING ULTRA PREMIUM FRAGRANCE OPPORTUNITY: SIGNIFICANT MOMENTUM IN PREMIUM ULTRA PREMIUM 2008 launch 2018 launch 2019 launch 71
Slide 72: Chloe Atelier des Fleurs Ranked #4
CHLOE ATELIER DES FLEURS RANKED #4 IN CHINA SALES TRAVEL RETAIL 5X IN 2 YEARS 72
Slide 73: Chloe Atelier des Fleurs: Rapidly Expanding Distribution
CHLOE ATELIER DES FLEURS: RAPIDLY EXPANDING DISTRIBUTION EMEA ~45 Doors Up ~1.5x in AMERICAS next 3 years ~4 Doors APAC ~100 Doors Up ~3x in next 3 years Up ~2x in next 3 years TRAVEL RETAIL ~80 Doors Up ~2x in next 3 years 73
Slide 74: Top-Ranking Innovations
: TOP-RANKING INNOVATIONS #1 INNOVATION #1 INNOVATION TOP3 INNOVATION TOP5 INNOVATION #2 INNOVATION TOP3 INNOVATION TOP5 INNOVATION TOP5 INNOVATION 74
Slide 75: Coty Coming Up with Major Innovations
COTY COMING UP WITH MAJOR INNOVATIONS MAJOR MALE FRAGRANCE BURBERRY GODDESS INFINIMENT COTY PARIS LAUNCH The Power Within Under top brand Premium, niche fragrance 75
Slide 76: Infiniment Coty Paris
INFINIMENT COTY PARIS
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Slide 78: Coty: The Inventor of Modern Fragrance
COTY: THE INVENTOR OF 1ST TO ADVERTISE FRAGRANCE & INTRODUCE 1ST TO CREATE A RETAIL EXPERIENCE 1ST TO COMBINE FLOWERS DESIGNER BOTTLES FOR COSMETICS AND EXPAND WITH SYNTHETIC MOLECULES INTERNATIONALLY 7878
Slide 79: Expanding Our Prestige Brands' Productivity and Reach
#2 EXPANDING OUR PRESTIGE BRANDS’ PRODUCTIVITY AND REACH 79
Slide 80: Growing Couture Market Segment Confirms Potential
THE GROWING COUTURE MARKET SEGMENT CONFIRMS THE POTENTIAL FOR WHILE INDIES FOR COUTURE INDIES MAKEUP ARTISTS ESTABLISHED BRANDS 2014 11% 21% 27% 31% 2019 15% 24% 22% 22% 2025 21% 25% 15% 14% Source: NPD & Beaute Research panels FY data % of the market (value sales) 80
Slide 81: Adding Makeup to Fragrance Counters Drives Productivity
ADDING MAKEUP TO FRAGRANCE COUNTERS DRIVES Sales productivity of counters increases >30% when combining Fragrance & Makeup 81
Slide 82: Prestige Make-up
PRESTIGE MAKE-UP FROM N/A IN FY19 TO ~4% OF SALES IN FY22 AND ~10% IN FY26
Slide 83: We Transformed Our Prestige Makeup Business
WE TRANSFORMED OUR PRESTIGE MAKEUP BUSINESS NEW BUSINESS MODEL FOR OUR NEW, EXCITING MAKE-UP LINE: KYLIE COUTURE AND INDIE BRANDS OLD BUSINESS 394m MODEL Second most followed female Numerous account in the world counters NEW Clean, cruelty free, vegan BUSINESS MODEL Stunning new packaging Fewer stor
Slide 84: On Route to Become a Key Player in Prestige Makeup
#2 ON ROUTE TO BECOME A KEY PLAYER IN PRESTIGE MAKEUP Sales of new Burberry Beyond Gucci makeup and Kylie makeup Kylie global makeup sales Wear Foundation in China sell-out in the U.S., the growth of U.S. fueled by growing distribution Prestige Makeup and expanded assortment 84
Slide 85: Biggest White Space Opportunity, Enabled by Coty's Technology & Brands
#3 BIGGEST WHITE SPACE OPPORTUNITY, ENABLED BY COTY’S TECHNOLOGY & BRANDS 85
Slide 86: Our Ambition: Skincare Sales by FY26
OUR AMBITION: TO OUR SKINCARE SALES TO BY FY26 86
Slide 87: A Portfolio Set Up for Skincare
A PORTFOLIO SET UP FOR ULTRA-PREMIUM DESIGNERS’ SKIN CARE DESIGNER BRANDS Skincare Skincare PRESTIGE PREMIUM CELEBRITY-DRIVEN DERMATOLOGICAL / CLEAN SKIN ENTRY PRESTIGE CELEBRITY-DRIVEN INGREDIENT-LED ENTRY SKINCARE BODYCARE 87
Slide 88: Precise & Sequenced Skincare Buildout Strategy
PRECISE & SEQUENCED SKINCARE BUILDOUT STRATEGY FY22-23 FY24 FY25-FY26 FULL SKINCARE FOUNDATIONS IN PLACE IN-MARKET ACTIVATION ACCELERATION • Central R&D, marketing, • Local market launches, • Acceleration of global analytics and digital activations, and learnings distribution, activations capabiliti
Slide 89: China as the Focus Market for Skincare Efforts
WE STRATEGICALLY SELECTED CHINA AS THE FOCUS MARKET FOR OUR SKINCARE EFFORTS Skincare Chinese consumers accounts for PRODUCT have a strong >70% EFFICACY as key purchase preference for HIGHLY of China’s Prestige criteria PREMIUM beauty market skincare products in 2022 89
Slide 90: Skincare Brands with Superior Performance and Clear Sense of Purpose
SKINCARE BRANDS WITH SUPERIOR PERFORMANCE AND CLEAR SENSE OF PURPOSE Highly concentrated The science of fast The American Democratization French biotech that The GenZ cellular recovery, Dermatological Dermatologist’s works with the skin, toolbox from Monaco Wisdom authority secrets not against it 90
Slide 91: Superior Product Performance Enabled by Patented Technology & Know-How
SUPERIOR PRODUCT PERFORMANCE ENABLED BY PATENTED TECHNOLOGY & KNOW-HOW 1 2 3 4 5 6 Full Light Oxygen Retinol DNA Bio-Tech Winning Protection Delivery Vectorization Repair Actives Texture 5 0 + YEARS 4 5 + YEAR S 3 0 + YEARS 2 0 + YEARS 5 + YEARS Spreadability EXPERIENCE EXPERIENCE EXPERIENCE EXPERIE
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Slide 93: Cutting Edge vs. Peers Through Focus on Superior Efficacy
CUTTING EDGE VS. PEERS THROUGH FOCUS ON SUPERIOR EFFICACY SUPERIOR PERFORMANCE #1 #2 365 VOTED BETTER PRODUCT by the most discerning CONSUMERS in the world VS MARKET MARKET LEADER LEADER PREFERRED OVER MARKET LEADERS in blind test 250 PEOPLE TEXTURE & FRAGRANCE ANTI AGEING GLOW & EFFECT OF Wrinkles
Slide 94: Proof Points: Lancaster Ligne Princiere Launch
PROOF POINTS: LANCASTER LIGNE PRINCIERE LAUNCH LIGNE PRINCIÈRE #1 BRAND BUZZ ON TOTAL SOCIAL MEDIA CONVERSION RATE AT COUNTERS >30% INLINE TO AHEAD OF LEADING BEAUTY BRANDS 100% SATISFACTION RATE WITH STORE EXPERIENCE BY CONSUMERS POSITIVE CONSUMER FEEDBACK; 4.9/5 AVG RATING ON SOCIAL MEDIA RECENT K
Slide 95: Orveda: The French Green Bio-Tech
ORVEVA THE FRENCH GREEN BIO-TECH™ 95
Slide 96: Concentration of Active Ingredients
CONCENTRATION of active ingredients to levels NEVER REACHED: up to 15 times more than the average skincare While KIND TO THE SKIN The skin looks younger, healthier, more even with an unseen signature glow that can replace makeup 104
Slide 97: Proof Points: Clinical Trial Supports Orveda's Ambitions
#3 PROOF POINTS: CLINICAL TRIAL SUPPORTS ORVEDA’S HIGH AMBITIONS AS A TOP QUALITY PREMIUM PRODUCT UNPRECEDENTED CLINICAL SKIN CLEAN, GREEN, VEGAN IMPROVEMENT AFTER 4 WEEKS BIOTECH FORMULATION 50 40 30 20 10 TIREDNESS REDUCTION 0 PORE LUMINOSITY TRANSPARENCY MINIMIZATION -10 - 20 - 30 - 40 - 50 97
Slide 98: Proof Points: Upgraded Orveda Counters in NYC & Paris
#3 #3 PROOF POINTS: UPGRADED ORVEDA COUNTERS IN NYC & PARIS: RECENT SALES HAVE DOUBLED VS. PRIOR MONTHLY RUN-RATE 98
Slide 99: Orveda's New Launch
ORVEDA’S NEW LAUNCH One of the most of all time – of active ingredients up to than the average skincare Worldwide DTC launch in
Slide 100: Beating Leading Luxury Serum Blind Formulation
BEATING LEADING LUXURY SERUM 8.5/10 8/10 BLIND FORMULATION ASSESSMENT Shanghai 2022 100
Slide 101: Proof Points: Orveda Won the Oscars of the Beauty Industry
#3 PROOF POINTS: ORVEDA WON THE OSCAR’S OF THE BEAUTY INDUSTRY 101
Slide 102: Philosophy
philosophy ermatologic wisdom
Slide 103: Igniting a Beloved Brand
IGNITING A BELOVED BRAND New transversal serum Total rebranding highlighting our assets website merchandising expression 103
Slide 104: Further Strengthening of Our Digital and DTC Capabilities
#4 FURTHER STRENGTHENING OF OUR DIGITAL AND DTC CAPABILITIES 104
Slide 105: 5 Priorities to Fuel Our Digital Transformation
5 P R IORIT IES T O F UEL OUR Digital upskilling Indirect ecommerce 5 1 DIGITAL E-BUSINESS DTC ecommerce Digital organization TRANSFORMATION POTENTIAL MOMENTUM UNLOCKING Social commerce Data Platform Consumer knowledge ‘UNLEASH’ OUR FULL 4 POTENTIAL 2 Content DATA DRIVEN LOVE Precision advertising M
Slide 106: Strong Progress in Digital
STRONG PROGRESS IN DIGITAL All DTC brands operating now on the same platforms, with innovative services Ramping up organizational capabilities to fully unleash the potential of livestreaming in China and Western markets Step changing media efficiency through new large data-driven Marketing Mix Model
Slide 107: Maximise Owned DTC Potential with a Focus on Skincare
1/ : MAXIMISE OWNED DTC POTENTIAL WITH A FOCUS ON SKINCARE SKKN BY KIM KYLIE COSMETICS ORVEDA PHILOSOPHY Q4 2022 Q3 2023 Q3 2023 Q4 2023 107
Slide 108: Maximise Owned DTC Potential
MAXIMISE OWNED DTC POTENTIAL WITH A FOCUS ON 108
Slide 109: Maximise Owned DTC Potential
MAXIMISE OWNED DTC POTENTIAL WITH A FOCUS ON CRM Loyalty Replenishment Advocacy/ Activations Programs Subscription Social Selling 109
Slide 110: Embracing the Livestreaming Key Players
2/ EMBRACING THE KEY PLAYERS Flagships UNIQUE Content driven High link with social Content driven with Mature, Brand ATTRIBUTES High potential to grow community on Wechat consumer feedback FSS store, image SHARE% MKT 55% 25% 5% 3% KOL LIVE-STREAM STORE LIVE-STREAM KOL LIVE-STREAM STORE LIVE-STREAM 1
Slide 111: Leading in Western Markets
LEADING IN WESTERN MARKETS Kol 3.5M Kol + COTY MARKETER Followers ONE LIVE – TWO ACCOUNTS ~12M VIDEO VIEWS 19K LIVE VIEWS! 25K CLICKS TO EVENT SIGN UP ALL SAMPLES CLAIMED 111
Slide 112: Attracting Gen Z: Maximizing the Campaign
ATTRACTING GEN Z: MAXIMIZING THE increased ad recall by 10.7% against beauty benchmarks over an impressive two-week period. 44M VIEWS Delivered higher engagement rate than Kind & Free, which was deemed best in class
Slide 113: Attracting Gen Z: Chloe Fragrance Bouquet Finder
ATTRACTING GEN Z: CHLOE FRAGRANCE BOUQUET FINDER - A NEW WAY OF GIFTING PE RSO N A LI ZE YO UR B O UQ UE T GIFT A BOUQUET SEASONAL BOUQUET 113
Slide 114: Attracting Gen Z: Gucci Gaming Experience on Roblox
ATTRACTING GEN Z: GUCCI REAL WORLD GAMING EXPERIENCE ON ROBLOX it’s first major update Featuring with her own avatar within the game experience. 3.7M & 77K AVERAGE VISITS DAILY ACTIVE USERS 114
Slide 115: Optimizing ROI and Nimbleness via New Marketing Mix Modeling
4 / OPTIMIZING ROI AND NIMBLENESS VIA NEW A decision-making tool to estimate the effectiveness of marketing initiatives (communication, promotion & distribution) Half of our FY22 working media analysed in FY23 Working on the expansion to the full Coty A&CP in FY24 Implementing new operating model to
Slide 116: The Next Phase of Outsized Growth
#5 THE NEXT PHASE OF OUTSIZED GROWTH 116
Slide 117: Ongoing Beauty Expansion, with Outsized Acceleration in Fragrances
TO SEE ONGOING BEAUTY EXPANSION, WITH OUTSIZED ACCELERATION IN FRAGRANCES China’s beauty spend Prestige Fragrances Fragrances per capita still of China Beauty and the growth of of U.S., Western premiumizing Prestige Beauty Europe, Korea, and Japan 117
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Slide 119: Top Male Fragrance in China
Top 3 Male Fragrance in China 119
Slide 120: Our Ambition: More Than Double China Sales to >$600M by FY26
OUR AMBITION: TO MORE THAN DOUBLE OUR CHINA SALES TO >$600M BY FY26 120
Slide 121: Proof Points: Expanding Our Omni-Channel China Presence
#5 PROOF POINTS: EXPANDING OUR OMNI-CHANNEL CHINA PRESENCE FY21 TODAY Cities (Prestige + ~320 ~400 Consumer Beauty) Prestige B&M Doors (Coty operated) ~90 ~130 Consumer Beauty ~30K ~38K # of POS E-Com Stores (Prestige + ~12 ~18 Consumer Beauty) 121
Slide 122: Coty Sales Mix Back to FY19 Levels, International Traffic Recovering
COTY SALES MIX BACK TO FY19 LEVELS, WHILE INTERNATIONAL TRAFFIC STILL RECOVERING International traffic Travel Retail back to Gross margins of Coty sales below 2019 (on par with FY19) 122
Slide 123: Coty is Gaining Market Share in Travel Retail
COTY IS GAINING MARKET SHARE IN TRAVEL RETAIL AMERICAS +90 bps vs. 2021 EMEA +180 bps vs. 2021 APAC +44 bps vs. 2021 Source: Generation and Beaute Research 123
Slide 124: Coty Business Transformation from Fragrance Only to 3-Axis Beauty House
COTY BUSINESS TRANSFORMATION FROM FRAGRANCE ONLY TO 3-AXIS BEAUTY HOUSE 2% 1% 6% 8% 15% 2% 18% 8% 11% 64% 81% 92% Prestige Fragrances Ultra Premium Niche Color Skin Care Fragrances Cosmetics Percentages may not sum to 100% due to rounding 124
Slide 125: Our Ambition: Grow Travel Retail Sales ~50% to >$600M by FY26
OUR AMBITION: TO GROW TRAVEL RETAIL SALES BY ~50% TO >$600M BY FY26 125
Slide 126: Booming and Multi-Category Travel Retail Business
BOOMING AND MULTI-CATEGORY TRAVEL RETAIL BUSINESS Sustained global Travel Retail travel recovery revenues Travel Retail and expected growing now ~8% of return of Chinese >30% YoY Coty sales travelers to fuel ongoing in Q3 and FYTD momentum 126
Slide 127: ESG: Progress Towards Sustainability Leadership
ESG PROGRESS TOWARDS SUSTAINABILITY LEADERSHIP 127
Slide 128: Sustainability is Our Ultimate Driver of Innovation
SUSTAINABILITY IS OUR ULTIMATE DRIVER OF INNOVATION THE BEAUTY OF THE BEAUTY OF OUR PEOPLE OUR PRODUCT Create an inclusive Sustainability is at the business where every heart of our product associate can thrive, innovation, sourcing, and and a more equitable development society THE BEAUTY OF OUR PLA
Slide 129: Accelerating Coty's ESG Journey
WE ARE ACCELERATING COTY’S ESG JOURNEY TOP QUARTILE RATING BY SUSTAINALYTICS COMPANY-WIDE SUSTAINABILITY TRAINING 129
Slide 130: Planet: New Climate Targets and Progress in Our Own Operations
PLANET: NEW CLIMATE TARGETS AND SIGNIFICANT PROGRESS IN OUR OWN OPERATIONS ZERO WASTE TO NEW EXTERNALLY LANDFILL AND 79% VALIDATED RECYCLING RATE CLIMATE TARGETS FROM OUR FACTORIES AND DISTRIBUTION CENTERS ALL OUR SUPPLY CHAIN SITES USE 100% RENEWABLE ELECTRICITY 130
Slide 131: Product: Sustainable Innovation Across Consumer Beauty and Prestige
PRODUCT: SUSTAINABLE INNOVATION ACROSS CONSUMER BEAUTY AND PRESTIGE PORTFOLIO NEW PACKAGING Chloe Naturalle Intense with refill: environmental impact reductions of TARGETS >60% IN GHG SUPPORTING OUR EMISSIONS, CLIMATE AND water consumption, energy ECODESIGN consumption and mineral resources consumpt
Slide 132: A Pioneer in Fragrances: The Ultimate Upcycling
PRODUCT: A PIONEER IN FRAGRANCES: THE ULTIMATE UPCYCLING COTY IS PRODUCING THE WORLD’S FIRST GLOBALLY DISTRIBUTED FRAGRANCES MADE USING CARBON-CAPTURED ALCOHOL THANKS TO A PARTNERSHIP WITH EXPERTS LANZATECH THE MAJORITY OF OUR FRAGRANCE PORTFOLIO WILL BE PRODUCED USING CARBON CAPTURED ETHANOL BY END
Slide 133: Innovation Proof Point: First Fragrance Using 100% Carbon-Captured Alcohol
INNOVATION PROOF POINT: COTY’S FIRST FRAGRANCE MANUFACTURED USING 100% CARBON-CAPTURED ALCOHOL In April 2023, Gucci’s The Alchemist’s Garden, Where My Heart Beats, became the first globally distributed fragrance manufactured using alcohol from 100% recycled carbon emissions 133
Slide 134: People: DE&I is Driving Coty Culture and Business
PEOPLE: DE&I IS DRIVING COTY CULTURE AND BUSINESS TAKING A STAND MAJORITY NEW PURPOSE, VISION & VALUES UNDERLINED BY FEMALE EXECUTIVE COMMITTEE ADVOCACY PROGRAM TO AND BOARD #UNDEFINEBEAUTY NEW GENDER POLICY ACHIEVED OUR GENDER NEUTRAL COMMITMENT ON PARENTAL LEAVE GENDER PAY EQUITY 134
Slide 135: DE&I Proof Point: #UndefineBeauty Campaign
#6 #6 DE&I PROOF POINT: #UNDEFINEBEAUTY CAMPAIGN CAMPAIGN 230M ENDORSEMENT FROM IN ORGANIC MEDIA REACH 25,5M PRIYANKA CHOPRA JONAS > 3,3K Vogue Germany, Vogue Italy, Vogue SOCIAL MEDIA PETITION Spain, Glamour UK, Harper’s Bazaar REACH TOM DALEY SIGNATURES UK, New York Post, WWD On change.org and cou
Slide 136: Strong Financial Progress
STRONG FINANCIAL PROGRESS 136
Slide 137: Q4 Updated Outlook
Q4 UPDATED OUTLOOK • Q4 LFL revenue growth now expected (up from +10% previously), driven by Prestige momentum and China recovery • FY23 LFL revenue growth now expected to (up from +9-10% previously) • FY23 adjusted EBITDA now expected to be , above the previous outlook of $955-965M • Profits from i
Slide 138: Strong Value Accretion
STRONG VALUE ACCRETION ~13-14% ~12-13% LFL CAGR CAGR (ex FX & (INC. >$40M x8 Russia exit) FX HURT) ~$5.5B ~$965- 970M $0.38- ~$5.30B ~$905M 0.39 ~$4.63B ~$762M $0.28 $0.05 FY21 FY22 FY23E FY21 FY22 FY23E FY21 FY22 FY23E NET REVENUES ADJUSTED EBITDA ADJUSTED EPS Adjusted EPS excludes mark-to-market o
Slide 139: Balanced Growth Across Segments, with Q4 Ahead of Guidance
BALANCED GROWTH ACROSS SEGMENTS, WITH Q4 AHEAD OF GUIDANCE FY21-FY23E Revenue Bridge by Segment, % LfL change COMMENTARY Q323 FYTD • FY22 LFL growth of 16% 22% 8% (1%) 16% 10% 11% (8%) 12-15% o Prestige – strong fragrance ~$5.5bn market and Coty innovations $5.3bn o Consumer Beauty –market growth an
Slide 140: Balanced Growth Across Regions, with Q4 Ahead of Guidance
BALANCED GROWTH ACROSS REGIONS, WITH Q4 AHEAD OF GUIDANCE FY21-FY23E Revenue Bridge by Region, % LfL change COMMENTARY Q3 FYTD23 • Strong growth in FY22 across geographies o EMEA – double-digit growth across 18% 15% 14% (1%) 16% 15% 9% 6% (8%) 12-15% nearly all markets o Americas – solid growth in e
Slide 141: Strong Margin Expansion, Improving Profitability in Both Segments
STRONG MARGIN EXPANSION, IMPROVING PROFITABILITY IN BOTH SEGMENTS Prestige UP 13.2% 16.2% ~250bps(1) Consumer UP 4.0% 4.2% ~80bps(1) Beauty UP UP UP ~ 500- ~ 400bps ~ 400bps 600bps ~64% HIGH ~13% ~63.7% ~28% 20% ~11.6% RANGE ~60.0% ~22% ~9.4% FY21 FY22 FY23E FY21 FY22 FY23E FY21 FY22 FY23E ADVERTISI
Slide 142: Continued Adj. Operating Profit Margin Expansion Despite Record Inflation
CONTINUED ADJ. OPERATING PROFIT MARGIN EXPANSION DESPITE RECORD INFLATION AND SIGNIFICANT UPTICK IN A&P 5 1 FY21-FY23E Adj. Op. Margin Bridge SIGNIFICANT UPTICK DRIVING ABOVE IN A&P MARKET TOP-LINE GROWTH FY21 Adj. Op. Margin 9.4% Gross Margin Improvement ~400bps A&P Increase 4 2 500-600bps Flywheel
Slide 143: Strong Cash Generation and Deleveraging
STRONG CASH GENERATION AND DELEVERAGING DOWN >3X ~$550M ~$400M >$100M Benefit From ~6.8x ~2x leverage Wella adjusted for TSA ~4.7x Wella stake ~$145M Exit ~4.1x sale and 1x WC Towards benefits 3x FY21 FY22 FY23F FY21 FY22 CY22 CY23F FREE CASH FLOW LEVERAGE 143 143
Slide 144: More Than $1BN Value in Wella Stake
MORE THAN $1BN VALUE IN WELLA STAKE Professional hair Retail hair color Professional Premium styler globally & styling globally nail globally globally 2015 2020 2021 Coty sold an additional Coty acquires Wella KKR joins forces with partial stake in Wella to Coty KKR Key Financials FY22 • As a part o
Slide 145: Offsetting Inflation Through Price, Mix and Savings
OFFSETTING INFLATION THROUGH PRICE, MIX AND SAVINGS PRICING MIX MANAGEMENT SAVINGS • Strategic growth pillars all • Mid single digit pricing in 1Q margin accretive: FY23 o Skincare • ~$560M delivered to date o Prestige fragrances • Mid single digit pricing in 3Q o China FY23 • ~$165M targeted in FY2
Slide 146: SKU Productivity Significantly Higher
SKU PRODUCTIVITY SIGNIFICANTLY HIGHER NR PER SKU SKU COUNT vs. 2YA vs. 2YA vs. 2YA vs. 2YA 146 146
Slide 147: All In To Win FY23 Savings
ALL IN TO WIN FY23 SAVINGS > BREAKDOWN OF SAVINGS EXAMPLES OF COST REDUCTION Trade Promo optimization in Travel Retail Fixed Trade Investment Reduction of returns in CoverGirl Costs Investment 20% 31% Continuous improvement / Get It Done COGS Closure of Cologne factory > $170M Structural Marketing M
Slide 148: FY24-FY25 Savings
FY24-FY25 SAVINGS > BREAKDOWN OF SAVINGS EXAMPLES OF COST REDUCTION Revamp of Strategic Revenue Trade Fixed Trade Management program and consolidation Investment Costs Investment in key global markets 17% 27% Continuous improvement / Material Value COGS Analysis > $165M Structural Marketing Material
Slide 149: Key Priorities for Growth Acceleration & Capabilities
KEY PRIORITIES FOR GROWTH = Growth ACCELERATION & CAPABILITIES = Cost 1 5 ✓ Sales Force Effectiveness On-going Go To ✓ Digital In-Market AITW ✓ CFC Growth below NR Growth Market ✓ C-Customer Mgmt Savings ✓ SRM 2 6 Gross ✓ Pricing Margin ✓ eCommerce acceleration ✓ GTN Digital Attack ✓ Social Media Bo
Slide 150: Attractive Growth Algorithm
ATTRACTIVE GROWTH ALGORITHM 150
Slide 151: Upper End of 6-8% LFL Revenue CAGR Through FY26 & Beyond
UPPER END OF 6-8% LFL REVENUE CAGR THROUGH FY26 & BEYOND #3 $6.5-6.8bn #2 #2 25-30% CAGR #1 25-30% CAGR Existing Existing portfolio ~$5.5bn portfolio Mid to High Mid Single Single Digit Digit Growth Growth Inline Accelerating with market presence in emerging markets FY23E Consumer Prestige Prestige
Slide 152: Shifting Portfolio to Capture Key Beauty Growth Areas
SHIFTING PORTFOLIO TO CAPTURE KEY BEAUTY GROWTH AREAS 9% 7% HSD % 5% MSD % 6% FY19 COTY REVENUE 24% FYTD23 Low FY26 Low MIX ex WELLA 51% REVENUE MIX 20% AMBITION 50% 29% 56% 5% 3% ~10% 5% HSD % Prestige & Consumer Consumer Beauty Consumer Beauty Prestige Fragrances Prestige Cosmetics Body Care Beaut
Slide 153: Capturing Key Beauty Growth Markets
CAPTURING KEY BEAUTY GROWTH MARKETS 8% 6% MSD% 8% ~10% 8% 27% ~30% 4% 30% 3% >10% FY19 COTY REVENUE FYTD23 FY26 MIX ex WELLA REVENUE MIX AMBITION 18% 18% 15% 27% 8% ~25% 9% 26% HSD E-Com Mix High Single Digit % High Teens % Mid Twenties % (Total Coty) North America W. Europe Brazil & LatAm E. Europe
Slide 154: Accelerating Sales and Profit Momentum
ACCELERATING SALES AND PROFIT MOMENTUM FY22 FY23E FY23-26E FY26 & Beyond +10-11% LFL Upper end of NET REVENUES $5.30B +6-8% LFL CAGR +6-8% LFL CAGR GROSS MARGIN 63.7% Modest Expansion Mid 60s % by ‘25 Expanding EBITDA $905M $965-970M +9-11% CAGR +9-11% CAGR TAX RATE ~28% Mid-to-High 20% Mid-to-High
Slide 155: Steady Reduction in Leverage
STEADY REDUCTION IN LEVERAGE FY22 FY23E FY26E ADJ EBITDA $905M $965-970M $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 ~$550M ~$40
Slide 156: 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 / year) Financial Leverage ~2x Financial Leverage ~4.1x ~25% Capital Returns Capital
Slide 157: Key Messages
KEY MESSAGES • Coty is on the new strategy unveiled in 2021 • Beauty across markets and categories • Coty has end-to-end capabilities and to propel next phase of growth • Over driving business momentum • Capturing , as we grow market share in China and Travel Retail • Strong towards sustainability a
Slide 158: Thank You For Joining Us!
THANK YOU FOR JOINING US! I N V ES TOR C O N F EREN CE P R E S ENT ATION JULY 6, 2023 158
Slide 159: 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, strategic planning, targets and outlook for future reporting periods (including the