Coty (COTY) investor relations material

Industry and Consumer Trends

• Gen Z consumers in the U.S. use multiple fragrances weekly, often maintaining a wardrobe of 4+ scents and applying them 3+ times per week, fueling U.S. prestige fragrance market growth to over $10 billion in six years.

• The global beauty market has shown resilient annual growth of 3%-5%, with significant opportunities in both prestige and mass segments.

• Beauty is positioned as a staple, discretionary, and luxury category, making it less price elastic and more resilient to economic cycles.

Brand Portfolio and Market Position

• Maintains a balanced portfolio across ultra-premium, premium, and mass price points, with no single brand representing more than a low double-digit percentage of sales.

• Coty is a top-three player in prestige fragrances globally with a 12% market share, operating a unique licensing model and recently adding Swarovski, Etro, and Marni.

• 85% of the portfolio is owned, perpetual, or under long-term licenses (6+ years or effectively perpetual), reducing license duration risk.

• Prestige division accounts for about two-thirds of sales and over 90% of profit, with strong growth in brands like Burberry (+141%), Chloé (+69%), and Marc Jacobs (+47%).

• Coty is the number two player in mass cosmetics globally, with strong brands like COVERGIRL, Rimmel, and Sally Hansen.

Operational Scale and Capabilities

• Operates 7 manufacturing facilities across 3 continents, producing over 1 billion products annually, with ~80% of products made in-house.

• Products are sold in 120+ countries, supported by access to over 400,000 retail doors and region-tailored, multi-channel distribution strategies.

• Employs approximately 11,600 people worldwide and manages around 30 markets directly.

• Vertically integrated manufacturing and in-house R&D provide cost and product differentiation advantages over asset-light competitors.