Slide 1: Analyst and Investor Meetings
ANALYST AND INVESTOR MEETINGS September 2018
Slide 2: FY18 Overview
FY18 OVERVIEW COTY
Slide 3: FY18 Financial Highlights
FY18 FINANCIAL HIGHLIGHTS NET REVENUE ADJUSTED ADJUSTED ECOMMERCE $9.4bn OPERATING OPERATING as % of NET INCOME MARGIN REVENUE ORGANIC GROWTH ~$1bn 10.6% +0.4% +29% ~10%
Slide 4: FY18 Showed a Recovery in Net Revenue Trends
FY18 SHOWED A RECOVERY IN NET REVENUE TRENDS TOTAL COTY LUXURY PROFESSIONAL CONSUMER BEAUTY BEAUTY 10% 8.1% 6.1% 5.3% 5% 4% 2.8% 2% 1.9% 2.1% 0.3% 1% 0.2% 0% -1.3% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -3.4% -5% -4.4% -8% -10% Q1 Q2 Q3 Q4 FISCAL YEAR +0.4% +6% +1.7% -4% 2018
Slide 5: FY18 Synergy Conversion Confirms the Stabilization of Our Business
FY18 SYNERGY CONVERSION CONFIRMS THE STABILIZATION OF OUR BUSINESS We delivered $225M of Synergies in FY18, with ~80% Converted to Profit $1,000M +$227M $773M FY17 FY18 Base Profit Converted Synergies Incremental Younique Contribution CORPORATE PRESENTATION 5
Slide 6: In FY18, We Delivered on Our Commitments
IN FY18, WE DELIVERED ON OUR COMMITMENTS Actual: Target: Modest Like for • +0.2% LFL net Like (LFL) net revenue revenue growth in nd growth in 2 half of FY18 2H18 • +1.1% in 2Q18-4Q18 Target: Very healthy Actual: +313 bps adjusted operating margin adjusted operating improvement in 2H18 margin growth
Slide 7: FY19 Outlook
FY19 OUTLOOK COTY
Slide 8: FY19 Outlook
FY19 OUTLOOK * LFL net Adj Adj Operating revenue: Operating Margin: Adj EPS: Flat to Income: Well over 100bps margin $0.74-0.78 modest Mid-teens growth growth expansion * As of Earnings Release dated August 21, 2018
Slide 9: FY19 Operating Income Growth Fueled by Synergies and Cost Savings
FY19 OPERATING INCOME GROWTH FUELED BY SYNERGIES AND COST SAVINGS ~1,150 CORPORATE PRESENTATION 9
Slide 10: Supply Disruption – Expect to Resolve by 2H FY19
SUPPLY DISRUPTION – EXPECT TO RESOLVE BY 2H FY19 Nature of disruptions As part of our substantial supply chain transformation in the last 2 years, we encountered 2 key disruptions in 4Q18: • The biggest impact related to the ramp-up of one of our new cosmetics planning hubs and consolidated plant in
Slide 11: FY19 & FY20 Free Cash Flow Building Blocks
FY19 & FY20 FREE CASH FLOW BUILDING BLOCKS FY19 FY20 • Adj Operating Income growth of • Continued Adj Operating Income ~$150M implying total of ~$1,150M growth, supported by further capture of ~$170M of synergies & • Offset by cash outlay related to one- cost savings time costs of over $400M, which
Slide 12: Business Drivers Support Return to Growth
* BUSINESS DRIVERS SUPPORT RETURN TO GROWTH • FY18 Results: Strong growth on a full year basis • Medium Term Outlook: Continued strong • FY18 Results: Stable, with strong growth fueled by pure e-commerce peer-to- double digit growth in most markets peer social selling model offset by pressure in Bra
Slide 13: Earnings Model to Reach High Teen Adj Operating Margin
EARNINGS MODEL TO REACH HIGH TEEN ADJ OPERATING MARGIN Professional Accelerate growth of untapped potential of OPI and Beauty ghd and capitalize on Wella’s market-leading position Top line growth Sustain above-market top line expansion through strong Luxury innovation capabilities, geographic expans
Slide 14: Divisional Strategy
DIVISIONAL STRATEGY CORPORATE PRESENTATION 14
Slide 15: Luxury - FY18 Achievements and Success
LUXURY - FY18 ACHIEVEMENTS AND SUCCESS
Slide 16: Consumer Beauty - Major Brand Restages to Re-engage Consumers
CONSUMER BEAUTY - MAJOR BRAND RESTAGES TO RE-ENGAGE CONSUMERS MAX FACTOR MAX FACTOR RIMMEL COVERGIRL CLAIROL RIMMEL
Slide 17: Professional Beauty – Growth in All Categories
PROFESSIONAL BEAUTY – GROWTH IN ALL CATEGORIES
Slide 18: Disclaimer
DISCLAIMER Forward-Looking Statements Certain statements in this presentation are forward-looking statements. These forward-looking statements reflect Coty Inc.’s (“Coty’s”) current views with respect to, among other things, Coty’s targets and outlook for future reporting periods (including the exte