COTY FIRST QUARTER FY20 RESULTS November 6, 2019 1 1Q20: COTY IN - PowerPoint PPT Presentation

COTY FIRST QUARTER FY20 RESULTS November 6, 2019 1

1Q20: COTY IN MOTION ▪ Turnaround activation ▪ A solid start to the year ▪ FY20 targets confirmed 2

TURNAROUND ACTIVATION Progress to Date LEANER & MORE BACK TO GROSS MARGIN ALIGNED MARKETING FOCUS ORGANIZATION FUNDAMENTALS ▪ Better alignment ▪ Organizational ▪ 11% increase in between sell-in and structures defined and working media, with sell-out communicated biggest step-up in Consumer Beauty, ▪ Activated price ▪ Amsterdam HQ building behind priority increases in several signed – ready by Q4 brand-country countries combos ¹ ▪ New Supply Chain leader – 18 years ▪ Return to distinctive experience in Beauty brand assets (L'Oréal) ¹ Represents brands with leading in-market positions and strong brand equity

OPERATIONAL EXCELLENCE PROGRAM DEPLOYMENT Detailed review of assortment, SKU complexity, pricing architecture, brand saliency and media sufficiency 2H20 1H21 2H19 1H20 CB : Mexico, CB : Russia, Poland, CB : U.S., U.K. LATAM Canada CB : Germany, Brazil CB : Japan, Middle East Lux : philosophy, Lux : Italy, Spain, UK Russia, Canada Lux : Japan, Middle Lux : U.S., Germany East 4

INITIAL POSITIVE SIGNALS - EUROPE DRIVEN BY MEDIA SUPPORT AND IN-STORE EXECUTION Rimmel – U.K. Drivers of Improvement: • Ramp-up of TV media support U.K. Color Cosmetics Market Rimmel Cosmetics • Strong performance of new innovations, launched at premium pricing (Wonderluxe mascara, Lasting Matte foundation) -3.9% -4.6% • Early indicators support limited demand elasticity -6.3% -6.7% from pricing actions Last 52-wks Last 12-wks Last 4-wks Bruno Banani – Germany Drivers of Improvement: Germany Mass Fragrance Market Bruno Banani • Strong launch of Loyal Man fragrance 17.8% • Media support for male and female lines • Successful entry into shower gels, reaching 4.5% -0.7% -2.4% share -4.3% Last 52-wks Last 12-wks Last 4-wks 5 Source: Nielsen

INITIAL POSITIVE SIGNALS - U.S. DRIVEN BY MEDIA SUPPORT AND IN-STORE EXECUTION Drivers of Improvement: Sally Hansen – U.S. • U.S. Nail Color & Sally Hansen Nail Digital media support behind Miracle Gel Treatment Market Sally Hansen Nail Color Treatment 4.0% 3.6% • Nail Treatment packaging refresh 0.4% • Seasonally relevant collections and 0.0% displays in core sub-brands -0.6% -3.7% Last 52-wks Last 12-wks Last 4-wks Drivers of Improvement: CoverGirl – U.S. U.S. Color Cosmetics Core Sub-Brands (65+% of Market Total CoverGirl Sales) • Strong TV support behind core sub-brands (i.e. 0.5% Exhibitionist, Clean, Lash Blast, etc.) -1.7% • Improved execution and productivity at key -2.7% -3.6% retailers, including Amazon -8.7% • New CoverGirl recently announced -9.6% Last 52-wks Last 12-wks Last 4-wks Source: Nielsen

INITIAL POSITIVE SIGNALS – AMAZON U.S. • We are reaching fair share on Amazon • Strong sales growth on Amazon driven by: • Close collaboration with Amazon as part of Global Vendor Management Program • TV support for hero sub-brands • Execution focus on core Amazon SKUs Coty Share – Last 12 Weeks Coty Mass Beauty Coty Color Cosmetics Coty Retail Hair Coty Mass Fragrances Sell-out 92.0% +68% Sell-out Sell-out Sell-out +41% +20% +43% 21.7% 20.3% 20.1% 19.2% 18.5% 16.4% 14.4% Brick & Mortar Share Amazon Share Source: Nielsen, Amazon 7

LUXURY AND PROFESSIONAL BEAUTY Continuing to Execute on Growth Strategies LUXURY • Premiumization : Elevating brand positioning with the launch of ultra premium fragrance collections (Gucci’s Alchemist Garden, Chloé’s Atelier des Fleurs) • Category Extension : Luxury color cosmetics revenues (Gucci, Burberry) up 3x YoY PROFESSIONAL BEAUTY • Premiumization : Continuing to drive conversion of leading salons to the premium Wella Koleston Perfect with ME+ line • Strong Innovation : ghd continuing to drive penetration and growth with new Glide hot brush 8

1Q20 REVENUE & OPERATING PROFIT Results In-line with Expectations LFL NET REVENUE TREND • 1Q20 revenue trend in-line with 1Q20 1Q20 (ex Younique) guidance -0.1% -1.1% • Strong Professional Beauty and Luxury LFL, with Consumer Beauty improvement (ex- Younique) ADJUSTED OPERATING MARGIN • Gross margin improvement and 8.0% strong cost control drove solid profit delivery 6.9% 1Q19 1Q20 9

LUXURY BRAND HIGHLIGHTS 10

LUXURY 1Q20 RESULTS Strong Topline and Profit Growth ▪ Growth in Europe on low comps, while Asia & Travel Retail 1Q20 REVENUE GROWTH negatively impacted by HK protests Total Revenue LFL ▪ Strong growth in Gucci, Burberry, and Hugo Boss fragrances ▪ Solid innovation performance: 4.4% ▪ Momentum in Gucci and Burberry make-up ▪ Tiffany & Love off to strong start 1.7% ▪ Gucci Memoire solid addition to the expanding Gucci portfolio ▪ Continued success of Hugo Boss Bottled Infinite ADJUSTED OPERATING MARGIN 15.9% 12.8% 1Q19 1Q20 11

CONSUMER BEAUTY BRAND HIGHLIGHTS 12 12

CONSUMER BEAUTY 1Q20 RESULTS Gradual Improvement ▪ Step-up in A&CP 1Q20 Revenue Growth ▪ Priority brand-country combos declined low Total Revenue LFL LFL (ex Younique) single digits, fueled by +38% increase in working media -7.8% ▪ Solid Europe results balanced by weaker -9.7% ALMEA post curtailment of low-value sales -13.5% channels ADJUSTED OPERATING MARGIN Operating Margin (ex Operating Margin Younique) 1.8% 1.4% -1.6% -2.0% 13 1Q19 1Q20

PROFESSIONAL BEAUTY BRAND HIGHLIGHTS 14

PROFESSIONAL BEAUTY 1Q20 RESULTS Strong Revenue Growth ▪ Solid growth in Europe and North America, LFL REVENUE TREND on low comps in the US Total Revenue LFL ▪ ghd continues to deliver very good 5.1% performance, fueled by innovation and execution 2.4% ▪ Strong margin expansion - topline growth and cost discipline ADJUSTED OPERATING MARGIN 9.9% 5.8% 1Q19 1Q20 15

1Q20 COTY P&L FOCUSED ON HEALTHIER BUSINESS ▪ Strong gross margin growth in Luxury and Professional Beauty ▪ Working media up meaningfully, while overall A&CP stable ▪ Robust adjusted operating margin expansion ▪ EPS declined YoY following a tax benefit last year Adjusted Gross Margin Adjusted Operating Margin Adjusted EPS $0.11 62.0% 8.0% $0.04 tax benefit 6.9% 60.4% $0.07 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 Refer to the Nov. 6, 2019 Press Release on Form 8-K for complete reconciliations of reported operating income to adjusted operating income and reported net income to adjusted net income, 16 including descriptions of the adjustments.

Q1 FREE CASH FLOW GROWTH 1Q20 Adj Operating Income 155 Depreciation 95 ▪ 1Q20 FCF up significantly YoY in Adj EBITDA 250 seasonally weak period, partially helped Noncash Addbacks 64 by factoring Working Capital (incl one-off costs) (177) ▪ Capex (86) Dividend cash payment of $63M in 1Q20 Interest (Cash) (58) reflects 69% participation in the DRIP Tax (Cash) (40) Free Cash Flow (47) ▪ Deleveraging remains a key priority Dividends (63) Younique Divestiture, Buyout of Southeast Asia JV, and Other (12) Cash Available for Debt Paydown (122) Net Debt - Closing (6/30/19) 7,366 LTM Adj EBITDA 1,348 Net Debt / Adj EBITDA 5.5x

FY20 OUTLOOK Targets Confirmed LFL NET REVENUES Stable to slightly down YoY ADJUSTED OI +5-10% YoY (At Constant Scope Strong A&CP reinvestment and Currency) ADJUSTED EPS Mid-single digit growth YoY FREE CASH FLOW Moderate improvement YoY

STRATEGIC REVIEW NEXT STEP IN ONGOING TRANSFORMATION ▪ Announced Strategic Review of the Professional Beauty business and associated hair brands, as well as the Brazilian operations aimed at: ▪ Unlocking shareholder value ▪ Sharpening focus on fragrance, color cosmetics, and skincare core businesses ▪ Reducing complexity ▪ Deleveraging the remaining business with a target pro forma leverage of ~3x

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