Slide 1: Growing China and Travel Retail
GROWING CHINA AND TRAVEL RETAIL 1
Slide 2: Guilhem Souche, Managing Director of China
GUILHEM SOUCHE MANAGING DIRECTOR OF CHINA CHINA VIRTUAL TOUR GDM JUNE 2021 2
Slide 3: China is a key strategic pillar for Coty's growth and profitability
CHINA IS A KEY STRATEGIC PILLAR FOR COTY’S GROWTH AND PROFITABILITY #1 #2 #3 #4 #5 #6 Stabilize consumer Accelerate luxury Build skincare portfolio Build e-commerce Expand in China Become a beauty makeup fragrances & become across both divisions and direct-to- beauty leader in brands & mass a key pl
Slide 4: China Trends
CHINA TRENDS Repatriation of Luxury consumption Hainan 65M Chinese Travelers Omni-Channel Retail Experiences Gen-Z the most valuable age group Booming e-commerce 931 M Netizens One Click Away 4
Slide 5: China, a highly resilient market
CHINA, A HIGHLY RESILIENT MARKET 2015 -2019 2020-2024 COVID CAGR CAGR Total +2.6% -2.7% +3.3% Mass +1.4% -2.1% +1.9% Luxury +4.8 -3.7% +5.6% 2015 -2019 2020-2024 COVID CAGR CAGR Total +10% +3.8% +13% Mass +4.5% +1.1% +8% Luxury +21.2 +8.0% +16% Source: Euromonitor, Beaute Research, Coty 5
Slide 6: A market led by skincare with fragrances growing fastest
A MARKET LED BY SKINCARE WITH FRAGRANCES GROWING FASTEST 1.1 8% Fragrance: +30% 3.4 24% Makeup: +11% 9.4 68% Skincare: +25% TOTAL MARKET: $13.9B Source: Beaute Research Retail Sales Prestige 6 6
Slide 7: China is a young subsidiary
CHINA IS A YOUNG SUBSIDIARY SINCE 2016 ▪ Before 2016: Brands managed by agents ▪ 2016 July Coty opened China subsidiary ▪ 2016 Oct: Coty completed acquisition of P&G Beauty Brands ▪ A team of 336 associates ▪ 213 associates based HQ in Shanghai ▪ 1 factory in Wujiang ▪ 1 lab in Suzhou ▪ >600 sales t
Slide 8: Prestige: Coty Prestige is growing at the category
PRESTIGE: COTY PRESTIGE IS GROWING AT THE CATEGORY Coty Prestige e-commerce penetration is YOY Growth vs Prestige Beauty Market with significant Total Beauty Coty opportunity YTD CY21 YTD CY 2021 120% 106% 100% 80% 60% 40% 26% 20% 0% Source: Beaute Research Retail Sales Prestige 8
Slide 9: Coty China
GROSS COTY PRESTIGE MARGIN GROWING COTY CHINA vs MARKET vs COTY PRESTIGE OF COTY CHINA 9
Slide 10: Consumer Beauty back to positive
CONSUMER BEAUTY BACK TO POSITIVE Consumer Beauty Net Revenue by Quarter 500% 400% 300% 200% 100% 0% -100% Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Source: Coty 10
Slide 11: Building a...
BUILDING A Building Greater than Moving from in each category predominantly fragrances to e-commerce Sales of China in penetration of sales from new 3 years by FY25 categories: – PEOPLE, PRODUCTS, PLANET 11
Slide 12: Brand Priorities
eR bt NNN UTNANS . BRAND PRIORITIES MAX FACTOR KX ul ES 2 Wiiceh emp Ree A ED aF4) ‘4 p, COUTURE ARTISANAL SKINCARE MASS COLOR ACTIVE » FRAGRANCES FRAGRANCES COSMETICS BODY CARE f S by & MAKEUP ») 4 COTY R ae, 11a Ca am 1 SRE Ae Pee ar
Slide 13: Winning in retail
WINNING IN RETAIL Net Revenue Q1 FY22 DEPARTMENT STORES +20% & BOUTIQUES SEPHORA +44% TMALL FLAGSHIPS +600% Data Source: Beaute Research Q1 CY 2021 total category by channel growth 13
Slide 14: Expanding our distribution: Gucci
EXPANDING OUR DISTRIBUTION: GUCCI FY22 FY21 20 Provinces, 12 Provinces 14 Cities 24 Cities, Makeup & Fragrance Doors Makeup & Fragrance Doors 14
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Slide 16: Expanding our distribution
EXPANDING OUR DISTRIBUTION 16
Slide 17: Acceleration of Burberry
ACCELERATION OF 加速 BURBERRY 7-3 +54% vs PY; +172% vs 2019 - Make-Up彩妆 +73% vs PY; +267% vs 2019 – Fragrances香水 +35% vs PY; +77% vs 2019 17
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Slide 20: Prestige e-commerce in Q1 FY22
PRESTIGE E-COMMERCE IN Q1 FY22 COTY IS DIVERSIFYING E-COMMERCE PRESENCE AUGUST 2020 NOVEMBER 2020 FEBRUARY 2021 JUNE 2021 AUGUST 2021 20
Slide 21: Coty debuts in China International Import Expo (CIIE)
COTY DEBUTS IN CHINA INTERNATIONAL IMPORT EXPO (CIIE) 21
Slide 22: Key Takeaways
China is a secular growth market, driven by expanding middle class, growing disposable income and expanding per capita beauty spend KEY TAKEAWAYS Coty is the fastest growing leading Prestige beauty company in China and targeting to more than double sales Our growth is anchored in 3 engines: fragranc
Slide 23: We are still young...in China
WE ARE STILL YOUNG…IN CHINA 谢谢 23
Slide 24: Caroline Andreotti, EVP, Global Travel Retail
CAROLINE ANDREOTTI, EVP, GLOBAL TRAVEL RETAIL 24
Slide 25: Coty Travel Retail poised for a strong recovery
COTY TRAVEL RETAIL POISED FOR A STRONG RECOVERY Pre-COVID FY19 FY20-21 FY25 Coty Total Retail Net Revenue $460M $500~$600M $180M 25
Slide 26: Coty Travel Retail business transforming from fragrance only to 3-axis beauty house
COTY TRAVEL RETAIL BUSINESS TRANSFORMING FROM FRAGRANCE ONLY TO 3-AXIS BEAUTY HOUSE 2% 1% 6% 19% 25% 98% 80% 69% Fragrance Makeup Skincare 26
Slide 27: With Gucci Makeup as #1 brand
WITH GUCCI MAKEUP AS #1 BRAND Other* Makeup Makeup CY 2019 CY 2020 CY 2021 * Other incl. OPI before divestiture in 2020 27
Slide 28: With Gucci Make-up as No.1 brand
WITH GUCCI MAKE-UP AS NO.1 BRAND 28
Slide 29: Kylie launched in Paris airports stores in November 2021
KYLIE LAUNCHED IN 5 PARIS AIRPORTS STORES IN NOVEMBER 2021. RANK #1 IN ORLY & #2 IN CHARLES DE GAULLE FIRST WEEK TITLE OF THE PRESENTATION 29
Slide 30: Largest share of business shifting from Europe to APAC
LARGEST SHARE OF BUSINESS SHIFTING FROM EUROPE TO APAC, ~50% OF TOTAL TRAVEL RETAIL IN FY25 SHARE OF TRAVEL RETAIL PER REGION Europe 47% Europe 27% Europe 35% APAC 30% APAC 39% APAC 52% Americas 23% Americas 34% Americas 13% 30
Slide 31: Coty Travel Retail doubling penetration
COTY TRAVEL RETAIL DOUBLING PENETRATION CONTINUE TO DRIVE THE 5 KEY GROWTH ENGINES, NEARLY TRIPLING THE BUSINESS IN ASIA ONLINE/OFFLINE 30% SHARE OF E-COM BY FY25 15% SHARE OF E-COM Online Offline FY22 FY25 31
Slide 32: 4 key strategic priorities to win in Travel Retail
4 KEY STRATEGIC PRIORITIES TO WIN IN TRAVEL RETAIL COTY IS A GLOBAL LEADER IN BEAUTY Maintain Fragrance Drive Skin Accelerate Asia Drive Drive Omni-channel Omnichannel Leadership Expansion TR / Hainan Retail Excellence 32
Slide 33: Glocalizing Coty portfolio per region
GLOCALIZING COTY PORTFOLIO PER REGION WORLDWIDE LANDSCAPE OF COTY TRAVEL RETAIL ICONS FRAGRANCE 33 TITLE OF THE PRESENTATION
Slide 34: Lead the fragrance category by growing niche collections
LEAD THE FRAGRANCE CATEGORY BY GROWING NICHE COLLECTIONS 10% OF TOTAL COTY TRAVEL RETAIL IN FY25 34
Slide 35: TITLE OF THE PRESENTATION 35
TITLE OF THE PRESENTATION 35
Slide 36: 4 key strategic priorities to win in Travel Retail
4 KEY STRATEGIC PRIORITIES TO WIN IN TRAVEL RETAIL COTY IS A GLOBAL LEADER IN BEAUTY Maintain Fragrance Drive Skin & Makeup Accelerate Asia Drive Omni-channel Leadership Expansion TR / Hainan Retail Excellence 36
Slide 37: Expanding into skincare
EXPANDING INTO SKINCARE Lancaster 2021 Sales +31% +16% 6566% 6 Feb YTD Aug YTD Sep YTD Oct Dufry Haikou (Operating on temp space since Feb) CDFG Lagardere 37
Slide 38: 4 key strategic priorities to win in Travel Retail
4 KEY STRATEGIC PRIORITIES TO WIN IN TRAVEL RETAIL COTY IS A GLOBAL LEADER IN BEAUTY Maintain Fragrance Drive Skin Accelerate Asia Drive Omni-channel Leadership Expansion TR / Hainan Retail Excellence 38
Slide 39: FY21 Hainan sell-out growing triple digits vs. last year
FY21 HAINAN SELL-OUT GROWING TRIPLE DIGITS VS. LAST YEAR GUCCI, CHLOE AND BURBERRY LEADING THE GROWTH HAINAN RETAIL SALES FY 2018 2018 FY2019 2019 FY2020 2020 FY 2021 2021 39
Slide 40: Coty strongly expanding its brands distribution & visibility in Hainan
COTY STRONGLY EXPANDING ITS BRANDS DISTRIBUTION & VISIBILITY IN HAINAN INVESTING IN BOTH SANYA AND HAIKOU 40
Slide 41: TITLE OF THE PRESENTATION 41
TITLE OF THE PRESENTATION 41
Slide 42: 4 key strategic priorities to win in Travel Retail
4 KEY STRATEGIC PRIORITIES TO WIN IN TRAVEL RETAIL COTY IS A GLOBAL LEADER IN BEAUTY Maintain Fragrance Drive Skin Accelerate Asia Drive Omni-channel Leadership Expansion TR / Hainan Retail Excellence 42
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Slide 44: Coty driving omnichannel & retail excellence
COTY DRIVING OMNICHANNEL & RETAIL EXCELLENCE POINT OF SALES DIGITALIZATION & INNOVATIVE TESTING TOOLS Normal tester Drop tester 100 ml 100 ml 1’000 pulverizations VS 6’250 pulverizations 100 micro liters 16 micro liters 44
Slide 45: Travel Retail key takeaways
TRAVEL RETAIL KEY TAKEWAYS GROW NICHE FRAGRANCE ACCELERATE OUR RETAIL GROWTH ▪ Investing behind 5 iconic brands, ultra ▪ Coty Travel Retail to grow at a 20%-25% premium and niche collections, as well as CAGR from FY22 to FY25 with focus on APAC exclusive Travel Retail offers and gifting and Hainan C
Slide 46: 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, strategic planning, targets