Update on Transaction with P&G Beauty Brands Investor Presentation May 3, 201 6
COTY’s Ambition in Beauty COTY’s Ambition in Beauty COTY’s Ambition in Beauty COTY’s Ambition in Beauty Transform Transform Transform COTY Transform COTY COTY COTY into a new global leader and challenger into a new global leader and challenger into a new global leader and challenger into a new global leader and challenger in the Beauty Industry For the ultimate benefit of shareholders! 2
BENEFITS OF THE MERGER BENEFITS OF THE MERGER BENEFITS OF THE MERGER BENEFITS OF THE MERGER
Creation of a ~$ Creation of a Creation of a Creation of a ~$9 ~$ ~$ 9 9Bn 9 Bn Leader and Challenger in Beauty Bn Bn Leader and Challenger in Beauty Leader and Challenger in Beauty Leader and Challenger in Beauty Global Beauty (1) (1) FY15 Net Sales ($ Global Beauty Global Beauty Global Beauty (1) (1) FY15 Net Sales ($Bn FY15 Net Sales ($ FY15 Net Sales ($ Bn Bn Bn) ) ) ) 9.2 4.8 4.4 Pure Play Beauty Player Source: Based on Company information, Nielsen and Euromonitor data, estimates Notes: Notes: Notes: Notes: Non Pure Play Beauty Player (1) Global Beauty defined as Fragrances, Color, Skin, Retail Hair Coloring & Styling, Salon Hair (2) P&G Beauty Brands excludes Dolce & Gabbana and Christina Aguilera fragrance licenses that will not be transferring to Coty (the “Excluded Brands”), and the Divested Brands that were never intended to form part of the transaction (Laura Biagiotti, Puma, Rochas, Giorgio Beverly Hills and Naomi Campbell) Skin Care Focused Players in (3) Coty does not include acquired Hypermarcas revenues Beauty (4) “New Coty” refers to the combination of existing Coty and P&G Beauty Brands 4
Creation of the Worldwide #1 in Fragrances Creation of the Worldwide #1 in Fragrances Creation of the Worldwide #1 in Fragrances Creation of the Worldwide #1 in Fragrances Global Global Fragrances FY15 Net Sales ($ Fragrances FY15 Net Sales ($Bn Bn) ) Global Global Fragrances FY15 Net Sales ($ Fragrances FY15 Net Sales ($ Bn Bn ) ) 3.5 2.2 1.3 Green L'Oréal Coty LVMH Avon Estee Lauder P&G ex D&G Boticario Chanel Pure Play Beauty Player Source: Based on Company information, Euromonitor data, estimates Notes: Notes: Notes: Notes: Non Pure Play Beauty Player (1) P&G Beauty Brands exclude the Excluded Brands (Dolce & Gabbana and Christina Aguilera) and the Divested Brands 5
Strong Worldwide #3 Strong Worldwide Strong Worldwide Strong Worldwide #3 Position in Color Cosmetics #3 #3 Position in Color Cosmetics Position in Color Cosmetics Position in Color Cosmetics Global Global Color FY15 Global Global Color FY15 Color FY15 Net Sales ($ Color FY15 Net Sales ($ Net Sales ($ Net Sales ($Bn Bn Bn Bn) ) ) ) 2.5 1.4 1.1 L'Oréal EL PF Coty Coty P&G Shiseido Avon LVMH Revlon Kao Pure Play Beauty Player Non Pure Play Beauty Player Source: Based on Company information, Euromonitor data, estimates 6
Addition of the Worldwide #2 in Hair Salon Addition of the Worldwide #2 in Hair Salon Addition of Addition of the Worldwide #2 in Hair Salon the Worldwide #2 in Hair Salon Global Salon FY15 Net Sales Global Global Global Salon FY15 Net Sales ($ Salon FY15 Net Sales Salon FY15 Net Sales ($ ($ ($Bn Bn Bn Bn) ) ) ) 1.4 L'Oréal P&G Henkel Kao John Paul Estee Lauder Shiseido Revlon Mitchell Pure Play Beauty Player Non Pure Play Beauty Player Source: Based on Company information, Kline data, estimates 7
A A Well Well Balanced Balanced Portfolio… Portfolio… A A Well Well Balanced Balanced Portfolio… Portfolio… FY2015 F Y2015 Revenue by Revenue by Business Business F F Y2015 Y2015 Revenue by Revenue by Business Business ($4.4Bn) (1) (1) P&G Beauty Brands ($4.8Bn) (2) (2) Coty ($4.4Bn) Coty Coty Coty ($4.4Bn) ($4.4Bn) (1) (1) P&G Beauty Brands ($4.8Bn) P&G Beauty Brands ($4.8Bn) P&G Beauty Brands ($4.8Bn) (2) (2) Skin & Retail Hair & Body Care Cosmetics Fine ($0.8Bn) ($2.1Bn) Fragrances 18% 44% ($1.3Bn) 27% Fragrance 49% ($2.2Bn) Color 33% Cosmetics 29% ($1.4Bn) Salon Professional ($1.4Bn) New Coty ($9.2Bn) New Coty ($9.2Bn) New Coty ($9.2Bn) New Coty ($9.2Bn) COTY Professional Beauty (3) ($1.7Bn) 18% COTY Consumer 41% Beauty ($3.8Bn) (4) COTY Luxury 41% ($3.8Bn) (5) Notes: Notes: Notes: Notes: (1) Coty FY15 reported revenues, which do not include Hypermarcas (2) P&G Beauty Brands’ revenues exclude the Excluded Brands (Dolce & Gabbana and Christina Aguilera) and the Divested Brands (3) Includes P&G Salon and OPI (4) Includes Coty Color Cosmetics excluding OPI, Coty Body Care, P&G Retail Hair Styling, P&G Retail Hair Color and P&G Color Cosmetics (5) Includes Coty Fine Fragrances, Coty Skin, P&G Fine Fragrances and Gucci skin and body products 8
…With … With a a Powerful Powerful Portfolio of Portfolio of Brands… Brands… … … With With a a Powerful Powerful Portfolio of Portfolio of Brands… Brands… • Each of the three divisions will be anchored in 3 major brands Coty Luxury Coty Luxury Coty Consumer Beauty Coty Consumer Beauty Coty Professional Beauty Coty Professional Beauty Coty Luxury Coty Luxury Coty Consumer Beauty Coty Consumer Beauty Coty Professional Beauty Coty Professional Beauty Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Pro Forma FY2015 Revenue: $3.8Bn Revenue: $3.8Bn Revenue: $3.8Bn (1 Revenue: $3.8Bn (1) ) Revenue: $3.8Bn Revenue: $3.8Bn Revenue: $3.8Bn Revenue: $3.8Bn (1 (1 ) ) Revenue: $1.7Bn Revenue: $1.7Bn Revenue: $1.7Bn Revenue: $1.7Bn Note: Note: Note: Note: (1) Does not include Hypermarcas 9
…With Greater Scale and More Emerging Markets … With Greater Scale and More Emerging Markets … … With Greater Scale and More Emerging Markets With Greater Scale and More Emerging Markets Exposure Exposure Exposure Exposure FY15 Change In FY15 Change In Sales in Top 10 Markets: Sales in Top 10 Markets: Coty and Coty and P&G Beauty Brands vs P&G Beauty Brands vs. . Coty Coty (1) (1) (1) (1) FY15 FY15 Change In Change In Sales in Top 10 Markets: Sales in Top 10 Markets: Coty and Coty and P&G Beauty Brands vs P&G Beauty Brands vs . . Coty Coty Brazil 5.9x (excluding Hypermarcas) Russia 4.3x Italy 2.6x 2.2x Germany U.S. 2.0x U.K. 2.0x 2.0x Canada 1.9x France 1.7x China 1.4x Australia Markets Less than $100MM in Coty Standalone Sales Ability Ability Ability Ability to enter large new to enter large new to enter large new beauty to enter large new beauty markets beauty beauty markets ( markets markets ( ( (including including including Brazil including Brazil Brazil Brazil) ) ) ) while increasing critical mass in Coty’s while increasing critical mass in while increasing critical mass in while increasing critical mass in Coty’s Coty’s top countries Coty’s top countries top countries top countries Note Note Note Note: : : : (1) Order of top 10 countries based on the sales expansion ratio 10
Opportunity to Accelerate Opportunity to Accelerate Growth Growth and and Opportunity to Accelerate Opportunity to Accelerate Growth Growth and and Improve Profits / Cash Flow Improve Profits / Cash Flow Improve Profits / Cash Flow Improve Profits / Cash Flow Growth Growth Growth Growth • Focused divisional structure with a more efficient and highly customer/consumer-centric organization • Emphasis on sell-out via increased digital consumer engagement, in-store excellence, and strong levels of product innovation • Rationalization of the portfolio and wholesale business enables increased focus on fewer brands and doors • Pro forma financial profile will allow Coty to maintain financial flexibility to participate in other acquisition opportunities Profit / Cash Flow Profit / Cash Flow Profit / Cash Flow Profit / Cash Flow • Anticipated material EPS accretion due to synergies • Expected substantial incremental cash flow due to higher profits and net working capital synergies Incentives Incentives Incentives Incentives • Management will be well aligned with shareholders to create value over time via revenue growth, margin expansion and cash flow generation 11
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