Coty Inc. · NYSE:COTY
Coty — SPAC Merger (September 2016)
34 slides from Coty's SPAC merger presentation, Sep 2, 2016
Slide 1: Creating a New Global Leader and Challenger in Beauty
Filed by Coty Inc. Commission File No. 001-35964 Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Coty Inc. Commission File No. 001-35964 The following is the text of the presentation that is being made to investors in connection with the business combination transaction betwee
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking DISCLAIMER Certain completion “could,” uncertainties, of historical Securities differ Risks transaction uncertainty proposed Brands, customers, The potential amended, 2016, qualified have statement, Non-GAAP In non-transferred results restructuring measures Definitions Fiscal 2015 st
Slide 3: Important Notices and Additional Information
Important DISCLAIMER In with relating P&G shareholders The statement at This any applicable C O www.sec.gov. connection vote issuer Tcommunication the shareholders Yto SEC orand Notices the law. has approval are registering with other proposed filed NoAlternatively, urged and are offer the adocument
Slide 4: Coty Investment Highlights
1Coty The [GRAPHIC C 2O3Merger TInvestment 4Y5Coty APPEARS Creates Investment Highlights a Pure-Play HERE]COTYCOTYMerger HERE]The HERE]A HighlightsBeauty New Strong New Challenger Management Coty is aisVery Well-Positioned in Beauty Synergies Attractive Teamwith with Expected Industry ~$9.0B to Rele
Slide 5: Transaction Overview
Transaction The Tendering Coty 410MM 746MM consummation If P&G (1) 1Notes: COTY the “New transaction to shareholders is exchange assume offering shares basic Coty” P&G Overview shares of will offer ~$1,8Bn is shareholders refers Coty the structured whose beoutstanding is merger) shares to issued con
Slide 6: Benefits of the P&G Beauty Transaction
BOTTEGA VENETA BENEFITS OF THE P&G BEAUTY TRANSACTION
Slide 7: Coty's Ambition
Coty’sto Strive shareholder COTY Ambition become value.in over Beauty time a Global Industry Leader by being a Clear Challenger in Beauty, delighting our consumers and creating long term
Slide 8: Beauty: Attractive Industry with Strong Fundamentals
Beauty $...With $301$287 Low Growing 2005 Rest Average High Source: (1) Agents, (2) 7% C Billions OBased Euromonitor 21%$275 Tof private 2006 cash YStrong is World 2015 Salon gross ahead One on Historically flow 2007 label FY15 Based $263 NorthAmerica Hair Fundamentals1 of margins generation of2008
Slide 9: Creation of a New Global Beauty Leader
Creation Global New Source: lauder Pure (1) Notes: (2) (3) (4) COTYGlobal Coty “P&G Pro play Coty new Beauty Forma Based reflects ofBeauty Beauty is Beauty coty aexpected $9.0Bn for on (1) AVON pro Player Brands” company pending FY16 defined forma Leader toshseido Non Net be: as excludes acquisition
Slide 10: More Diversified Business by Geography, Channel and Category
Stronger FY2016 ALMEA($1.4Bn)4 Almea ($1.9Bn) 31% ($2.4Bn)5 New Coty (1) Notes: (2) (3) (4)ALMEA (5) (6)Coty (7)Coty “New Europe Coty 5% Coty ($4.6Bn)1 consumer Professional North Luxury professional Revenue revenues consumer 38% &6Coty” ($9.0Bn) includes ($1.8Bn) More reflects America 42% Beauty -i
Slide 11: Iconic Brand Portfolio Across Three Divisions
Iconic Each CALVIN Covergirl Coty wella (1) Note: New luxury consumer professional of adidas O.P.I portfolio the coty KLEIN rimmel professionals three Pro consumer Beauty ofForma divisions Hugo London Beauty Leading boss beauty FY2016 Sebastian max will Brands Gucci factor division beRevenue: anchor
Slide 12: Financial Benefits
MIU MIU Financial OPI Rimmel get benefits the London lock
Slide 13: Substantial Synergies Opportunity
Opportunity Initial Incremental Total [GRAPHIC Operating ~75% ~25% Approximately (1) Note: Year COTYPotential 4$750MM 1potential of related synergies, Year one-time costs 2APPEARS cost to cost to Year cost Drive 75% synergies associated the synergies, reflecting savings costs 3savings carve-out of ~
Slide 14: Combination Drives Strong Margin Enhancement
Combination Adjusted 14.3 Pf Pro profile P&G Base Any Anticipated (1) Notes: (2) accounting (3) COTY impact Based Includes Full forma underlying ~5.3 operating Beauty ofyear Operating New ~19.6 on of coty related portfolio P&G transaction(2) operating adjusted Brands Brands, Drives Coty profit adj.
Slide 15: Significant Adjusted EPS Accretion
Significant ~1.09 1.37 Adjustment ~1.53 ~$0.48 Pf Impact P&G Base Any Anticipated (1) Notes: Coty (2) (3) existing Brands COTY impact Adjusted Based P&G underlyings 1.05 eps FY16 Beauty Pro Accretion ofamortization. Beauty contribution ~(0.61) share on of Forma Combined New portfolio exclude transac
Slide 16: Attractive Cash Flow and Return of Capital
Attractive Cash Anticipated One-time Costs Working Total ~90% $900-1,000M FY17 ~100% Retained Capital Combined Increase (1) Note: COTYReflects flow pro associated ~90% Structure FY18 in capital free Free forma capex cash business, annualized ongoing the cash FY19 Cash flow net free of benefit with /
Slide 17: Well-positioned for growth
Bourjois rimmelfor growth Well-positioned
Slide 18: A More Competitive Coty: Mission and Ambition
A MoretoCompetitive Strive MISSION shareholder COTY become value.overAmbition time a Global Industry Leader by being a Clear Challenger in Beauty, delighting our consumers and creating long term
Slide 19: Intensely Focused Organization
Much Intensely A Very Staffed Heavily COTY More clear lean closer power-shift with Focused incentivized focused & cost the to the best Organization efficient on customers back of very customers to all drive tofew worlds thegrowth &categories frontline: & consumers talent few channels the country
Slide 20: Step Change in Innovation
Step Miu Superior RIMMEL Sally Bourjois Miu Cover Philosophy Wella Calvin Marc COTY Change Hansen Jacobs Koleston Girl Klein Consumer Rouge Fragrance Volume Katy Miracle Decadence Daisy the Gold Miracle Perfect Velvet Kat Pace Colorist Dream Innovation Worker Matte Gel ofLipstick INNOSENSE Innovatio
Slide 21: Step Change in Digital Engagement
Step Change Goal Recent New Digital COTY Dedicated Corporate digital Local is acquisition experts to develop Resources experts thein & External Level key Divisional highly ofembedded Beamly, markets ofResource engaging Digital Resources aleveraging indigital Engagement brand digital media teams thei
Slide 22: Implement Perfect Store and Category Management
Implement Perfect Category Deeper Coty to Store: Shopper improve Management: theMaximize Perfect Insight: in-store Store The the Strong execution global for category Our investment and Categories bylocal capture creating intrade-marketing expertise value &shared Brands through: on standards global a
Slide 23: Mergers, Acquisitions and Portfolio Rationalization
New Mergers Continually hyper PARIS BOURJOIS Beauty COTY marcas Beamly evaluating &Rationalize Acquisitions potential current / Divestitures acquisitions portfolio (up to increase to 8% ofCoty’s combined exposure company to higher net revenues market growth to be divested pools toor help terminated)
Slide 24: Strong Management Team with Relevant Experience
Strong Edgar designate) (Chief years) Couture SANOFI aventisgenzymegenzymeMANHATTANMANHATTANMGRIALMGRIALBOURJOISBOURJOISCHATTEMCHATTEMhyper Lucent (7 (1) Note: BOUYGUES Operational Carve-out COTY NUMICO M&Ayears) Roles Experience Huber Supply Management COTY rb Merger go (3(13 (33 Experience into ye
Slide 25: Management Strongly Incentivized to Drive Shareholder Value
Management Classic Bonus Revenue Profit Cash Incentives Executive Top COTY80Conversion Growth focused leaders base growth Committee for–Team management bonus individually on driving Strongly –members Long profitable to expected Incentivized Term acquire expected Incentive &to&highly hold hold to to
Slide 26: Coty Investment Highlights
Coty 12345B Merger The A COTY eauty Strong Merger New Investment is Synergies Management Coty a Very Creates isAttractive Highlights Well-Positioned Expected a Pure-Play TeamIndustry towith Materially New to Relevant with Both Challenger Strong Enhance Drive Experience Organic Growth, inCoty’s Beaut
Slide 27: Appendix
Appendix Sally RIMMEL COTY Hansen O.P.I LONDON
Slide 28: Fiscal Year 2016 Revenue Bridges
Revenue Fiscal $MM (84) -80% 4,765 Brands Excluded 3,000 FY2016 (1) Notes: (2) COTYIncludes Reflects 5,434 of 360 FY2016 Year (2) impact S-4 FX Constant Bridges 2015 2016 Dolce Divested Impact FY2015 P&G Acquired 6,000 from Revenue for Currency Beauty &5,518 P&G Gabbana Acquired FY2015 Brands Net Ne
Slide 29: Fiscal Year 2016 EBITDA Bridges
Fiscal (2)(2)Fiscal $MM EBITDA 634 345 ~1,081 (~130) -950 -915 750 1,500 ~65% FY2015 0($MM1,500750$MM1,500750102102~970~970 Non-Transferred (2)(2) Reclass Accounting Depreciation FY2016 D&G (1) Notes: (2) (3) COTY 3) Includes Reflects and Year ofAcquired attributable FX P&G impact Bridges Chrisina C
Slide 30: P&G Beauty Brands Net Sales Performance Drivers - Total
P&G Fiscal Foreign 3,000 4,000 4,911 (7)% (2)% 5,000 5,518 6,000 $MM FY15 Brands (1) Notes: (2) Christina COTYReflects Beauty Net Year (1) Exchange Aguilera) Sales 2016 41 Divested Brands Brands brands asNet Reported FY16 (2) Performance Sales Brands toFY16 beNet Drivers—Total acquired Organic which
Slide 31: P&G Beauty Brands Net Sales Drivers - Fine Fragrances
FiscalBeauty P&G Foreign 1% 500 1,500 1,749 (7)% (6)% 1,993 2,500 $MM Brands Note: Reflects Christina COTY Year (1) Exchange the Divested Aguilera) 2016 10 Brands Brands fragrances Net Brands FY15 (2) Performance: Sales FY Net which brands Drivers—Fine 16Sales Net were transferring Fine as Sales Rep
Slide 32: P&G Beauty Brands Net Sales Drivers - Retail Hair & Cosmetics
P&G Beauty Fiscal $MM Organic 1,826 (7)% 2,119 500 1,500 COTY Foreign FY15 Net 2,500 Year Exchange Growth Sales 2016 Brands asNet Reported Performance: Sales Drivers—Retail Retail Hair Hair&& Cosmetics Cosmetics
Slide 33: P&G Beauty Brands Net Sales Drivers - Salon Professional
P&G 01Fiscal 1,000 2,000 $MM FY15 1,336 (8)% 3% COTY ,406 Beauty Net YearSales 2016 Brands asNet Reported Performance: Sales Drivers—Salon Organic Salon Growth Professional Professional Foreign Exchange FY16 Net Sales as Reported
Slide 34: Coty
COTY