home Burger COTY OUTLINES LONG-TERM GROWTH PLAN AND RECLAIMS POSITION AS A TRUE BEAUTY POWERHOUSE PRESS RELEASE Nov 18, 2021 Covergirl Introduces America Ferrera as New Brand Ambassador Coty Adds Ultra Premium Skincare Brand Orveda to Prestige Portfolio homein the newscoty outlines long-term growth... share page Coty Outlines Long-Term Growth Plan and Reclaims Position as a True Beauty Powerhouse Company to Host Investor Day Event at New York Stock Exchange today Reveals Plan for Above Market Growth through FY25 and beyond Unveils Major New Product Launches in Mass and Prestige Skincare Increases Cost Savings Targets to Fuel Reinvestment and Profit Expansion NEW YORK - November 18, 2021-- Coty Inc. (NYSE: COTY) ("Coty" or "the Company"), one of the world’s leading beauty companies and global leader in fragrance, today will host an Investor Day at the New York Stock Exchange. At the event, Coty will provide an update on the significant progress made on the Company’s six strategic pillars, elaborate on key upcoming operational milestones, report on its comprehensive transformation “All-In To Win” program, and announce its financial goals through FY25 and beyond. Sue Y. Nabi, Chief Executive Officer of Coty, said: “Coty has reclaimed its position as a true beauty powerhouse. We expect to outperform the beauty market through FY25 and beyond. I am very proud of the significant progress our teams have made, delivering against each of our strategic pillars. I am more confident than ever in Coty’s future and our ability to deliver significant value for all of our stakeholders. Coty’s unique and beautiful portfolio of brands, our talented team, and our single-minded focus on delivering sustainable, profitable growth, coupled with targeted reinvestment, are enabling us to evolve. We continue to capitalize on the tremendous growth opportunities in prestige fragrances, skincare, China, clean beauty and e-commerce.” Event Overview During today’s event, members of Coty’s leadership team will outline how the business has continued to deliver enhanced performance against its previously communicated strategic priorities, including: Stabilizing and growing its Consumer Beauty business Accelerating luxury fragrances and establishing Coty as a key player in prestige make-up Building a skincare portfolio across its Prestige and Consumer Beauty divisions Enhancing e-commerce and Direct-to-Consumer (DTC) capabilities Expanding in China through Prestige and select Consumer Beauty brands Establishing Coty as an industry leader in sustainability In addition, presenters will also provide insights into the Company’s growth framework and the numerous initiatives underway that are transforming and positioning Coty to succeed, including: The “All-In to Win” program, encompassing cost saving and capital deployment initiatives that have ignited the full potential of Coty, with an additional $75M of savings identified for FY24; Coty’s unique and differentiated brand portfolio, spanning key beauty categories across prestige and mass channels; The robust plans to accelerate Coty’s skincare business, that now incorporates a licensing agreement with the ultra premium, multi-award winning, Orveda skincare brand, and the recently announced CoverGirl Clean Fresh Skincare line; and Coty’s outstanding growth opportunities that can be achieved by harnessing the power of its brands, distribution reach, R&D, IP, and category expertise. Financial Outlook The Company is continuing to expand gross margin and cost savings, allowing it to reinvest into key strategic initiatives and simultaneously deliver annual profit growth, targeting an adjusted EBITDA of at a minimum $900 million for FY22, and approaching $1 billion in CY22. The growing confidence in business progress and capital structure improvement leads Coty to raise its FY22 adjusted EPS guidance to $0.20-0.24 from its previous guidance of $0.19-0.23. Over the coming years, Coty expects to benefit from an improving beauty market, including a stronger U.S. and Chinese market, a robust rebound in Travel Retail, and steady improvement across Europe. Based on this favorable market backdrop, the strong performance of recent brand repositioning and product launches, and Coty’s robust category and market expansion plans, the Company is announcing the following financial targets through FY25 and beyond: Net Revenues to grow 6% to 8% annually LFL through FY25 and beyond, ahead of expected beauty market growth of 3% to 5% Gross Margin to reach mid 60% by FY25, and further annual expansion thereafter Adjusted operating margin expansion of 50-70bps annually through FY25 and beyond Adjusted EBITDA to grow at 9% to 11% annually through FY25 and beyond Adjusted EPS above 30% CAGR through FY25, with mid to high teens % growth thereafter Strong annual improvement in free cash flow Leverage target of approximately 4x by end of CY22 and 3x by end of CY23 through EBITDA and free cash flow expansion, with an optimal leverage level of below 2x Complete divestiture of remaining 26% stake in Wella by FY25, further strengthening Coty’s balance sheet and leverage Webcast Information Coty’s Investor Day presentation will be available via webcast at investors.coty.com from 8:30 a.m. ET (Eastern Time), concluding at approximately 12:00 p.m. ET. The webcast and presentation materials can be accessed through Coty’s investor relations website. A replay of the webcast will be available following the event. For more information: Investor Relations Olga Levinzon +1 212 389-7733 Olga_Levinzon@cotyinc.com Media Antonia Werther +31 621 394495 Antonia_Werther@cotyinc.com About Coty Inc. Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, and skin and body care. Coty is the global leader in fragrance, and number three in color cosmetics. Coty markets, sells and distributes the products in approximately 130 countries and territories. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment. For additional information about Coty Inc., please visit www.coty.com. © 2020, Coty Inc. All trademarks registered. All rights reserved. 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