Coty Inc. (COTY)

Strategic Update

← View all transcripts

Apr 23, 2021

Hello, everyone, and welcome to CODI's strategic update webcast. With us today, we have Sue Y. Nobi, CODI's Chief Executive Officer and Laurent Mercier, CODI's Chief Financial Officer. After the presentation, we will move to a live Q and A. Please note that you can submit your questions at any point during the presentation by clicking on the questions tab at the upper left hand corner of your screen. With that, let me turn it over to Sue and Laurent. Good morning, good afternoon. Laurent Mercier, Coty's Chief Financial Officer and myself are very happy to welcome you to this strategic update today. I'm very excited to be able to share with you our strategic plans, which really expands on the 5 core strategic pillars we have been discussing in the recent months. At the same time, we've been moving incredibly fast to put our action plans in motion, and it's my pleasure to be able to share how our strategy is already coming to life in our core brands and core markets with some tangible operational improvements. While our focus today is on our multi year strategy to accelerate growth, we expect to come back to you in the fall of this year as we plan the formal Investor Day during which we will share more details on the strategy, more example of what's been accomplished and more granular financial targets. So Coty overview, let me start first by giving you an overview of this company, both its rich heritage and what our company looks like today. As you can see, this is a quote from the last century by Francois Coty, who said that creating the best products, presenting these products in a perfect container, beautifully simple but of impeccable taste, charge a reasonable price for it and you will witness a great business arise such as the world has never seen. So let's see what is Coty today. Coty today is a global leader in fragrance and color cosmetics with strong positions in key markets with a diverse brand portfolio. As you can see here, Coty is the number one fragrance maker worldwide, is the number 4 color cosmetics maker with revenues at the level of $4,200,000,000 number 2 in America when it comes to prestige fragrances number 2 in the U. S. When it comes to mass cosmetics same position in prestige fragrances in UK, number 1 in mass cosmetics in UK, number 1 in prestige fragrances in Germany, number 4 in mass cosmetics portfolio of iconic and modern brand across fragrances, cosmetics and skincare as you can see it at the bottom of this slide. Our sales are diversified across channels as you can see it on this slide with luxury representing almost half of our business and mass beauty representing 36% of our business and last but not least, e commerce representing 17% in the first half of twenty twenty one fiscal year, reaching almost 19% on the last quarter of Q2. If you move now to the next slide, you'll see that this company is also diversified in terms of categories. As you can see here, the company is strongly rooted in prestige fragrances, 52% of the business. And then a quarter of the business is rooted in mass cosmetics in Europe and in America. Prestige Skincare is still small and the room there is huge, 6%. Prestige Cosmetics is only 3% of the company. Body care is 8% of the company and mass fragrances represent 7% of the company. Now if we move to the geographical footprint, as you can see, this company is having a diversified sales, I would say, footprint worldwide with North America representing a third of our sales, then Western Europe representing almost a third again of our sales Eastern Europe and Middle East representing 18% of our sales Latin America representing 8% of our sales and last but not least, China only 3% global travel retail 3% and this is clearly due to the lose of people traveling during fiscal 2020 fiscal 2021. So this is clearly going to rebound quickly. China 3%, as I said it before. Moreover, APAC representing 7%. So you can imagine where the growth potential is for a company like price tiers moving from mass with brands such as CoverGirl, Sally Hansen, Max Factor, Adidas, David Beckham or Rimmel to brands in the premium area of the business such as, of course, Lancastere, Marc Jacobs, Philosophy, Calvin Klein, Hugo Boss, Kylie by Kylie Jenner, Lacoste and of course brands that are at the top of the pyramid in the prestige areas such as Chloe, Burberry, Gucci or Bottega Veneta to name a few. This company has also a long story of innovations, 116 years of innovations, 1st in fragrances and makeup. As you can see, the beginning of the last century, Coty and Francois Coty has been inventing the 1st fragrance mixing and natural and synthetic components, the first company to invent the latest olfactory family ever invented, which is the sheep category. More recently in the 80s, the invention of the first long lasting column called David of Cool Water, the first unisex fragrance under Calvin Klein with CK1 or in 2007, something that really reinvented what it is to be a premium fragrance brand with Marc Jacobs Daisy that won all the prices for its very unique packaging. This was in Fragrances and Makeup, but the story is almost the same when it comes to skincare. As you can see here, the company and some of the key brands of the company, mainly, Lancastere on one side and a bit of Cote D'Orgo have been inventing key categories of the beauty business of today. As you can see here on this slide, in 1961, so 60 years ago, CoverGirl invented what we call today clean beauty, clean makeup. It launched the 1st medicated foundation, mixing makeup foundation and on the other side, Noxzema ingredients. So this is clearly something that's becoming today a key segment of the growth of the beauty market worldwide. In 1976, a brand such as Lancastere has introduced the first retinol patent. And guess what? Today, everyone is talking about retinol and how this dermatological inspired ingredients are taking over the world of skincare. Lancaster has also been the brand that invented what we call dynamic hydration that has become a norm today when it comes to how do we hydrate skin deep inside. And Lancaster has also been a brand that has been introduced in things such as DNA repair claims or oxygen therapies when it comes to skincare formulation. Clearly, this brand, Lancaster, has been continuing, including more recently with this genetic and epigenetic repair technology that's a patented one, has been continuing to fuel in a way innovation that was not used in the rest of the company at Coty. So as you can imagine, this is clearly an area on which we are going to build. On the other side, as I've said it before, CoverGirl has invented 60 years ago clean makeup and invented, in fact, what we call today and everyone is speaking about the skinification of the makeup industry when it launched in 2009, the first makeup skincare hybrid called Simply Ageless. So as you can see, there is a lot of history, a lot of patents, a lot of IP and a lot of innovation on which this company has been built in the past and we can really leverage this to build the future and you see it throughout my presentation. Let's have now a quick look at the beauty market. This beauty market is clearly a robust and resilient market that's been growing, thanks to the luxury business that you can see on this slide displayed on the left of the slide, clearly driven by the biggest strength of the market, which is skincare, has been growing very, very strongly in the last years. And then second, of course, fragrances, plus 4%. And last but not least, makeup, which is a quarter of this market has been also growing until the crisis of the COVID by 8%. On the mass beauty side, the CAGR since 2015 has been lower around 4%. And again, the key drivers and the biggest strength of the market are skincare, then of course makeup and a mix of fragrances, travel dress and deodorants that we could call self care. If you move to the next slide, you'll see that clearly the growth luxury business is going to be clearly skewed by categories such as skincare, but also fragrances and clearly a clear rebound of makeup that's going to happen as soon as hopefully the beginning of next year. You can see on the next slide that it's clearly the beauty drivers of this business, especially the luxury one are China, whose momentum is led by growing disposable income, fueling demand for luxury beauty and of course heavy, heavy, heavy exposure towards skincare, specifically premium skincare. Clearly, the acceleration on e commerce is a key driver for this business, the luxury business. Number 3, the ultra premium category that's remaining the fastest growing subcategory, be it in fragrances or skincare. And last but not least, travel retail that's heavily depressed today that's going to reaccelerate back as soon as probably starting this summer. You can see more in details that this China growth is fueled by clearly key contributing factors such as the disposable income that's going to grow per capita by 50% in the next 4 to 5 years. And of course, you can clearly see that China's current beauty spending per capita has room to progress in the future since it represents more or less 20% to 40% of the one from the U. S. And 10% to 20% of countries such as Korea and Japan. Now we move to the 2nd growth lever, which is ecom. That's clearly a key driver with countries such as China, as you can see on the figures on the left of the slide, luxury beauty ecom market sales was 67% at the end of last year, plus 34% in America. Now the other element of premiumization is clearly the premiumization of all categories in this area of luxury business, starting with fragrances. Here you have two examples, the American market and the Chinese one in both regions and countries. You can see that Premium Plus plus Ultra Premium are clearly very, very strongly growing and key drivers of the growth of this market. We can see the same picture when it comes to China. That's fueling the luxury skincare market with ultra premium representing a third more than a third of this market and super, super strongly growing at plus 40%. Premium Plus is 20% of this market growing at 13% and the overall market is growing at a plus 33%. The 4th lever of this growth is clearly travel retail recovery. That's hand in hand with the luxury beauty growth market. So in calendar 2019 travel retail market reached $37,000,000,000 with 25% made of fragrances, 24% made of makeup and 51% made of skincare. Calendar year 2020 trial retail beauty market declined very strongly as you know it, driven by over 97% decline in international passenger traffic. But at the same time, what we call domestic traveler retail and more specifically Hainan has emerged as a leading destination for almost 80,000,000 Chinese consumers with beauty sales reaching already $2,000,000,000 and you can expect the international travel to start inflecting in the second half of this calendar year with consumer surveys suggesting strong pent up demand for travel. Now we move to the Mass Beauty. And as you can see, Mass Beauty continue moderate growth in the coming years, led mainly by skincare expansion and clearly also by makeup recovery. What are the mass beauty key future growth drivers? As you can see them, number 1, again premiumization number 2, digital and e com acceleration number 3, clean sustainable beauty and we'll see it later is fueling this growth and number 4, the skinification of all beauty routines. Number 1 premiumization fueling mass beauty growth. As you can see it here, premium franchises as a percentage of mass beauty sales have been growing by 600 basis points year on year in the U. S, 200 basis points year on year in the U. K. Now e comm is the 2nd driver of mass beauty growth. As you can see it here clearly in terms of brick and mortar sales for the next few years, we see these growing in the down low single digit CAGR, while Amazon beauty sales, for example, that has been doing plus 28% year on year during calendar 2020 are going probably to continue to grow in the up teens in terms of CAGR for the next years. The 3rd level of growth is the one this one is really linked to the product offer and we clearly see clean beauty fueling sorry mass beauty growth very strongly. Clean beauty is estimated to have reached something like $36,000,000,000 in 2019 already and accounting for close to 10% of total beauty markets. Clean mass cosmetics outpaced overall mass cosmetics in the U. S. By 17 points of a percentage in the last 12 months and beauty product launches last year with cruelty free, vegan, clean or natural claims accounted for a third of the American launches and a quarter of the launches that we've seen in Europe. The 4th lever of growth is the one of skinification of the makeup industry and in general of all beauty routines. As you can see here on the left side of the slide, this is clearly going to reach a percentage of launches on the color cosmetics using moisturizing claims. It's going to reach almost 40% worldwide. And on products such as face makeup, you see which ones are displaying an SPF last year, already 70% almost of the products have SPF in China and 20% of these display in SPF claim in America. So you can imagine the room there is very, very important. Now let's move to Coty's strategy. So we have 6 strategic priorities. And I'm going to spend a bit of time, a few seconds on this one because these are the things we're going to repeat meeting after meeting, both internally and externally. Number 1, stabilizing our consumer beauty makeup brands and mass fragrances. Number 2, there is huge potential to accelerate our luxury fragrances and become a key player in prestige makeup given the powerful portfolio of licenses we have in the Luxury division. Number 3, we are going to build a skincare portfolio across both divisions. Number 4, of course, building e comm and direct to consumer expertise and also capabilities. Number 5, These number 1, number 2, number 3 and number 4 levers are going clearly to help us to expand in China on luxury and select consumer beauty brands. And of course, becoming a beauty leader in sustainability is clearly the direction in which the 2 divisions are going in. So let's start first with how we are stabilizing our Consumer Beauty business. If you move to the next slide, you'll see that we've been working a lot since a few months ago to clarify the brand portfolio in cosmetics. And this is clearly the key condition to consumer beauty stabilization via brand positionings and repositionings. As you can see on this pyramid, we have clarified each and every brand positioning in terms of price tier, but also in terms of competition. CoverGirl, Rimmel London and I would say the German Rimmel that we intend to merge with Rimmel at the moment to another Manhattan are competing in front of a brand that's mainly New York. And then on the other on the upper tier, you can see that a brand like Max Factor with its very professional makeup artist image or bourgeois with its chic French chic is clearly going to compete in front of a brand like L'Oreal Paris. And on top of the pyramid, we have a G Will that no one else has in this industry, which is called Sally Hansen, which we are positioning more than ever as the brand that's going to propose at affordable prices salon alternative solutions. If we move to the next slide, you'll see that each consumer beauty brand has been repositioned. If we go from the top to the bottom, you'll see that CoverGirl has a brand new brand equity and sense of purpose. This brand is clearly going to encompass the uplifting power of makeup and you see what this means. And this new equity has started to be implemented as early as last month. Max Factor is going to become the brand that's going to take consumers from ordinary to extraordinary with a new equity that starts to be deployed in stores and online and on TV as soon as next June 2021. Rimmel London is going to encompass the freeing power of makeup with a new equity that's starting again in stores and you'll see it also in TV commercial in June 2021. Bourgeois, French beauty with power of positivity, this one is going to be introduced a bit later. And of course, Sally Hansen, the salon expertise at affordable price, the strong equity is already in place and there it's really the expansion of the brand. So if you move to the next slide, you'll see that we start with CoverGirl, the one that's going to encompass what we call the uplifting power of makeup and stabilizing CoverGirl, which is consumer beauty number 1 brand by revenue starts with a redefinition of the brand equity, making sure this brand is positioned in key trends that I've been sharing with you earlier, which are clean beauty and the skinification of everything, making sure this brings new targets to the brand, but also to our retailers and of course making sure this is visible quite quickly in in store execution. So you can see on the next slide that CoverGirl is still the most beautiful, the most loved and the most powerful brand in America. Number 1, spontaneous awareness, as you can see it on the right of the slide, ahead of the competitors, the first makeup brand consumers mentioned ahead of key historical competitors, but also for all the new indies. And last but not least, very strong in terms of brand power, almost a third bigger than the second brand. And this is clearly linked to the fact that this brand is still the most loved makeup brand in America. So why is this brand loved? You can see on the next slide that consumers love CoverGirl because of its products and because of its leadership since years years. As I've said it before, CoverGirl invented clean makeup 60 years ago and CoverGirl has reinvented clean makeup through Clean Fresh launch that happened last spring with fresh, healthy looking skin, 100 percent vegan formulation and this product has been the number one new foundation launch for the last calendar year. CoverGirl was also the brand that invented what we call today the skinification of the makeup industry, with the 1st anti aging makeup for mature skin, but still the number one anti aging foundation in America and this was invented in 2,009. Last but not least, Color Girl has invented Outlast, which is the first what we call non transfer foundation of the American market that's sweat proof, transfer proof and humidity proof, providing full coverage and long wear of the results. Last but not least, on the face category, it's been also putting on the market one of the ranges that displays the biggest number of shades to include all skin types and all skin colors with TRUBBLE. CoverGirl was also, if you see it on the next slide, the inventor of what we call modern mascara. CoverGirl invented what we call molded brush mascaras. These molded brush mascaras are the only ones that allow to get a very, very visible high volume and at the same time, a very, very, I would say, defined lash definition. This is clearly something that we invented the mascara market and CoverGirl was the brand that has invented this years years, I would say decades ago. I remember this from my older life. And this LashBlast franchise is still an industry icon with its claim of 10 times the volume. Coventry has been also innovating more recently to capture what we would call the premium part of the mascara market with exhibitionists that's been growing steadily for 11 straight quarters of double digit growth. Many other things such as Perfect Point, the number one eyeliner in America or truenact, which still the number one palette brand in color cosmetics. So as you can see, this brand has been inventing a lot of things that are making today what we call modern makeup, modern skinification of makeup, clean makeup or trendy makeup with high end mascaras, palettes and liners. But you're going to ask me what went wrong, in fact. So again, in 2018, the relaunch took CoverGirl away from its core. As you can see it here pre-twenty 18, sorry, the logo and the tagline of the brand was very clear. It was all about this easy, breezy, beautiful vision of beauty with creative aesthetics that were very, very easily recognizable and an A list celebrity talent strategy. In 2018 2019, Color Girl moved to a new tagline that is I am what I make up, which was absolutely impossible to understand by everyone, including people into the company. A new creative aesthetic that you can see is very, very dark with a vision of femininity that had nothing to do with what the brand has been doing in the past and a more lifestyle talent strategy, which really took away the light from CoverGirl. And I wanted to show you something very, very simple in terms of example. This one is speaks by itself. As you can see on the left, these are the blisters of LashBlast, which is the number one mascara equity in America prior to 2019. As you can see on the blister, the brush of the mascara is visible. The orange brush is visible. The purple one behind is was also visible. And as you know, it may be consumers when they shop in store, they like to see the size and the shape of the brush, which will give them a sense of the result. And then somebody has decided in 2019 to close the mascaras, to put these mascaras on black and white blisters and suddenly the sales started to drop simply because people didn't recognize their favorite mascara. They couldn't understand anymore why this mascara is better than the others just by watching the brushes. And last but not least, when you go with the black and white this year, as you can imagine, the backgrounds of the Walmart or CVS stores are white, suddenly and gray sometimes, suddenly the products didn't pop anymore in stores. So we've decided to come back to these visitors as soon as now so that we can show back these brushes. And this is clearly a big change that's going to help us. And this happened not only in mascaras, but it also happened on lip color, where lip color was displayed and then was hided and now it's back again and displayed again in stores. So this is going to help us a lot to recover our uniqueness, our strength in terms of visibility when it comes to our unique products in stores. Now you can see on the next slide that we are also harnessing our equity to propel into the future. So we're back to the CoverGirl, easy breezy, beautiful CoverGirl. And as you can see it on the next slide, the brand equity is clearly back with the mainly A List epitomizing healthy and carefree American Beauty. So on the next slide, you'll see that to do that, sorry, we've been clearly betting on the key trends of the market. 1st, winning in clean beauty 2nd, winning in what we call makeup skinification number 3, winning with Hispanic consumers and of course, number 4, making sure this brand is expressing itself in an omnichannel landscape. So first, winning in clean beauty. So this is clearly what we've been doing last year with Clean Fresh that's been launched in spring 2020. That's really all about showing fresh, healthy, natural skin, which is one of the biggest trend of the beauty industry in general. This product was formulated without parabens, sulfates, phthalates, talc and many other things and it was also infused with coconut milk and alloy. It's been the number one foundation launch of spring 2020. It had 2 times the trial rate of the closest competitor. This product was 100% incremental to the total clean franchise and it's over indexing consumers under 34 and Hispanic consumers. The 2nd wave of clean makeup at CoverGirl has been made this year with Lash Plus Clean Mascara, which is an industry icon now in a clean formula that's been launched at the end of last year, still giving this 10 times the volume claim that's very unique to Last Blast franchise, but at the same time providing a formula that's free from parabens, sulfates, talc and mineral oils that's wear proof about lasting all day. And the first results has been outstanding, plus 49% ahead of the launch plan, clearly in the top 4 at all our customers and on amazon.com, already the number 2 CoverGirl Mascara and probably very soon the number 1 CoverGirl Mascara, driving a clear share growth with 1.1. Of growth since the launch. And again, building a huge buzz on Instagram with engagement 10 times higher than the average one we had at the beginning of this calendar year. Now it's time to move to the new CoverGirl. So we say at CoverGirl, we say that it's time for fresh start, returning CoverGirl to the blue skies and to fresh air, which first made her famous and which America is longing for after a year of being inside. This will be the brand that brings clean beauty to all And I'm very happy to share with you the 1st generation of a new kind of advertising that we call the selfie advertising. And we've asked our spokespeople to film themselves at home because this was done during lockdown in Feb. And of course, getting outside their gardens to show what the new cover there could look like. So the first one is for L'Ach Fast Clean displaying Didi Reinhardt, who is a celebrity among Gen Z consumers. Coming to you fresh faced from home with new lashblast clean mascara 10 times the volume, clean formula that's cruelty free and vegan. Works for me, works for us, works for the planet. New LashBlast, the clean mascara that works from CoverGirl. So as you can see it here, clearly, the efforts are paying off in strong results. LastPass Pink Mascara is growing with each week and Halo onto Clean Fresh face makeup franchise. As you can see it here on the figures on the right side of the slide, Clean Fresh Makeup and Lash Past Clean are propelling the whole Coty company together with Gook and Pure, of course, to the 2nd player in King Cosmetics in America. And you see with the start of the national media campaign that went live somewhere at the end of Feb, the growth of the sales is clearly very, very strong. So this was on the clean side of how CoverGirl is going to own clean beauty in America. Number 2, how CoverGirl is leading and going to lead more than ever the makeup skinification trend with simply ageless franchise. CoverGirl, again, as I said it before, invented what we call today makeup and skincare hybrid in 2,009. Since then, CP Ageless has always been the number one antiaging foundation in America. And now our focus is on elevating the franchise as the iconic skincare meets makeup since this trend of the market is clearly gaining a strong momentum since 2 years, which has been accelerated by the crisis we've been in since 1.5 years. So now we are going to display something very unique for you, that's a scoop, if I may say, the new Simply Ageless campaign that's airing at the end of this month with the return of 1 of the most iconic Color Girl spokesperson from the 1990s, Nikki Taylor, who is going to become the face of the new Simply Ageless campaign after having been the face of Flynn makeup in the 1990s. This campaign, as you can imagine, is tapping into key insights, which are: number 1, the power of nostalgia in promoting brand trust post COVID number 2, it's going to be this year is the 60th anniversary of CoverGirl. Number 3, again, Simply Ageless, the inventor of the skinification of makeup and still America's number 1 anti aging foundation. Last but not least, this new generation of healthy fresh take on traditional beauty advertising with what we are going to call with Lillie Hainhart and now with Nicky Taylor, the selfie shot beauty ad, which is much more as you can imagine, it's 10 times less expensive than a traditional advertising, which will allow us to put more money on working media. And again, it's a whole new generation of advertising that's been tested recently with lash blast clean mascara, getting probably the best results CoverGirl has ever had on mascara advertising. So now let's have a look at the new CoverGirl Simply Ageless campaign featuring for the first time since 20 years, Nikki Taylor. Hey, CoverGirl. Coming to you fresh face from home. Remember that? I was a Cover Girl in 1998 and today I'm a Cover Girl. Thanks to Simply Ageless, in one for instant wrinkle reduction and healthy glowing skin. Once a CoverGirl, always a CoverGirl with Simply Ageless. From easy, breezy, beautiful, CoverGirl. So again, this is clearly going to change the future of this brand because this is very unique. No one else is displaying makeup today in America the way CoverGirl is doing it. And it's very true to the story of CoverGirl on one side, but also very true to what consumers are looking for today and what they will be looking for tomorrow, specifically younger consumers under 34 years old, but also Hispanic consumers. Why Hispanic consumers? This population is accounting for 18% of the U. S. Population and is clearly, as you know, with the fastest growing segment. Hispanic consumers over index on beauty purchases, but has also been switching from traditional retail channel and brands to specialty channels and niche brands. So you can understand why they are strategic for a brand like CoverGirl, but also for our customers such as CVS or Walmart. CoverGirl is clearly already winning these consumers back, over indexing these consumers as we've seen it before with clean beauty launches, but also making sure we have for the first time Spanish language Amazon media campaign that helped us to bring 70% of new consumers new Hispanic consumers to CoverGirl, but also to our customers. Another thing that's been done to make this brand more easy to read for you and for us also is to make sure we are going to concentrate and this is really a new way of working instead of creating every year new sub brands, we're going to concentrate more than ever on what we call the magnificent 8, but you know today, clean makeup, Latch Plus franchise, truBLEND franchise, Simply Ageless Franchise, Exhibitionist, Outlast, Perfect Point and Eye Enhancers. This magnificent age represents 70% of CoverGirl business and they've been performing in line with the mass color cosmetics category. And these are the ones that are helping us to stabilize Cobalt Girl's shelf space in spring 2021 and likely in fall 2021. But again, the way we're going to work, as you can see it, if you compare to fiscal 2019 on the left, we were investing on something like 6 franchises, while we'll be investing like in 2021 probably on 4 key assets of the company of the brand, sorry, 2 per half, which is going to help us really put more money on what's working to make sure there is visibility, there is growth and there is also areas of the business that only CoverGirl can animate and own. So as I've said it a few seconds ago, we continue to hold shelf space in 2021. CoverGirl starting this month to roll out its new wall in America, moving from the existing fixture system to the new fixture system that's going to display video, that's going to be much more easy to shop and that's going to overexpose what we call the Magnificent Edge. This is also going to be mirrored in our clean portfolio that you can see here is clearly leading the growth of CoverGirl online because simply this our retailers are creating clean flagships and CoverGirl because it's been the fastest brand to move into this direction with clean makeup and now with simply ageless makeup meets skincare. Clearly, we have an advantage and this advantage is visible when you see that the makeup category in the December quarter, Amazon grew by 36%, while CoverGirl was at plus 45%. This clearly shows how and why and the way I've been explaining it to you earlier, Clean Beauty is driving the growth online. This also is a great also for me proof that this brand is absolutely not broken because online where you concentrate on the key assets, where you promote in a very, very efficient way clean makeup and the specification of the brand, you can see that the results are far over and higher than the ones you see from the competitors. Now let's see very quickly before moving to the other brands, how this first, I would say, achievements and very, very quick reaction we've been doing since 6 months now has had an effect with the brand responding to the repositioning to media campaigns and to innovation. As you can see here, the orange line is a comparative versus 1 year ago and the green line is a comparative versus 2019. Both comparatives clearly see an average weekly sales in March 2021 growing by 26% versus the average weekly sales between April 2020 Feb 2021. And even if we compare to 2 years ago, we have a minus 14%, I would say achievement, if I may say. That's by the way improving by 20 percentage points versus the period of April 2020 to Feb 2021. So this shows us that something is starting. It's going to be long. But again, we wanted to quickly have green shoots to build on and to reinvent the brand very quickly so that people understand the direction this company is going in. Now we move to the 2nd American G Well, if I may say, and the 2nd big American brand, which is Sally Hansen, that's the salon alternative. Sally Hansen clearly is expanding its Nel leadership being the number 3 consumer beauty brand by revenue, and this is clearly supported by the continuous growth in demand for at home manicures. And the latest launch from Sally Hansen called Good Kind Cure, which was on the clean side of the market had stellar results being the number one clean cosmetic franchise in America and the number 2 launch in the total U. S. Mass cosmetic business in calendar 2020. And this result is not only seen in the U. S, but you can see that Sally Hansen is winning globally in cosmetics, be it in the U. S, as I said it before, in Canada, in Australia, in UK, in Italy, in France, in Czech Republic, if you see it on the last 3 months, but also on the last 12 months. Now we move to Europe and we're going to talk about our superstar in Europe, Vemael, which is going to be repositioned under the freeing power of makeup. We are going to strengthen Rimmel, which is our number 2 consumer beauty brand by revenue. Rimmel, as you know, it has led UK mass cosmetics as the number one brand for many years. Its positioning has become unfortunately subdued and needed a refresh. And we intend also with this brand in the same way we're doing it in America with Coburgirl, we intend to lead the clean trend in Europe, thanks to Rimmel. So what does the brand look like today? This is what Rimmel looks like today. I would say and summarize it in one sentence, this brand that used to be super, super strong, super bold, almost into the face, started to become apologetic, banal and tail. So we intend to reinvent Rimmel under the freeing power of makeup equity. As you can see, these are just for your eyes only mock ups that can give you a sense of what this brand can own and how this brand is going to be repositioned very soon. And to give you a flavor, and again, this is for your eyes only, very happy to share with you a mood board that we've been working on since a few weeks that's going to be clearly looking at what the brand is going to be looking like in this summer. So as you've seen it on this film, clearly, Rimmel is going to be repositioned as the leading brand when it comes to self expression, freedom, boldness becoming again an unapologetic brand and will be announcing quite soon the new face of Rimmel and the new, I would say, equity in terms of advertising that's going to be visible as soon as this summer. So but in the meantime, Rheemeli is already winning in the UK and gaining share in Europe as you see it on this slide, is being achieving 20 consecutive months of share growth at the U. K. Number one brand. It's a brand that's also gaining share in countries such as France, Spain and Italy. And Remail is very, very strongly winning on Amazon UK, for example, with market share growth of over 300 basis points in the last year. Now we move to the 2nd brand equity in Europe, which is Max Factor. And again, this brand is going to really bring products that are going to take our consumers from ordinary to extraordinary. It's clearly the premium brand of the portfolio. Number 1 consumer beauty brand by revenue and the equity of from ordinary to extraordinary is going to be super helpful to take the brand to the next level, to make sure the brand is rooted again in its, I would say, history of the inventor of what we call today makeup artistry or professional makeup. We are going to announce here again a key brand ambassador with 80,000,000 followers that's going to represent this brand very soon. And we start to have already super positive feedbacks from our retailers with a great reception to the repositioning plan that we've already presented and already sell out growth on Amazon in the U. K. And in Germany that has been growing double digits in the recent months. So how does this brand look like today? As you can see, Max Factor today is honestly very ordinary with a white background with, I would say, the girl next door, which has never been the story of Max Factor. Max Factor has always been about superstars, fabulous faces, makeup artistry and taking women what we say from ordinary to extraordinary. So if you move to the next slide, you can see here how we are about to polish the Max Factor Star to be bright again, taking it from ordinary to extraordinary. So we're going to show you again a mood board video that's going to tell you the story of Max Factor and the direction in which we are going. So as you can see it again, this brand is clearly have been reinvented as quickly as a few months and you see the first, I would say, new Max Factor arriving in store very soon, probably this summer. We will be injecting color through sensorial textures as you can see it here with color products in store as soon as June 2021. We'll be doing the same thing when it comes to face products with a brand new identity that's clearly going to take its inspiration from the luxury and makeup artistry business. You can even see it on these models that are going clearly to lead the game in terms of bringing makeup art history to the next level in mass distribution. So this is it for Max Factor. And now we're moving to other brands that make up. And again, we have a beautiful jewel in the company called Adidas. And this company and this brand is going to be developed into what we call self care to become a self care powerhouse. Adidas is our number 4 consumer beauty brand by revenue and this brand has been until now anchored in shower gels, deodorants and mass fragrances. Clearly, this brand has a huge potential. Our studies confirm that Adidas is viewed as one of the most aspirational brands amongst German, Chinese or American consumers. You can see here on the next slide that we are able we'll be able to take this brand from what it is today, which is all around body cleansing to active body care and why not active skincare. So you can imagine the growth potential this brand has in the future, both in terms of categories, geographical footprint and price tiers. But today already, the brand is showing green shoots almost everywhere with market share improvements in select regions. I took two examples here, 1 in Germany and one in Poland in brick and mortar on the left, but also on China e comm performance with a stellar growth online in February of 111%, plus 24% on Tmall during Chinese New Year in Australia and plus 24% on gd.com sales more recently. So this brand is clearly one of the brands you hear more and more about when we will do our presentations on Coty. Last but not least, for the Consumer Beauty division, we have a very strong unknown, but very strong portfolio of local Brazilian brands that are having outstanding results. The first brand is Risque. That's the number one nail brand in Brazil in the mass cosmetic distribution being positioned as a mainstream to premium price tier. The second one, which is probably the 5th brand of the consumer beauty division after the 3 makeup brands Adidas is Monage. Number 2, female deodorant brand in Brazil. Number 2, body lotion brand in Brazil. This one is a value price tier and last but not least, BOTSANO, which is the 1st shaving brand in Brazil with the positioning in the value to mainstream price tier. These local brands are having outstanding results. You can see it on this slide. Despite of COVID impact, which is even bigger there. Local our local Coty brands in Brazil have been growing and gaining market share. And for the most recent period, which is Jan and Fab, our brands have been growing 5 times faster than the market. So this takes me to the conclusion on the consumer beauty side. Our path to stabilizing consumer beauty is very, very clear. We have top 5 brands top 5 brands, sorry, in consumer beauty, which are CoverGirl, Rimmel, Sally Hansen, Adidas, Max Factor that account for 70% of the consumer beauty portfolio. This strategic work that we've been doing at the speed of light to reposition each and every brand has now been completed, reposition each and every brand has now been completed. The repositioning plans are in place. We have already been signing and we'll be soon announcing new brand ambassadors for each and every consumer beauty brand with almost monthly announcement planned through calendar year end. We've been sharing plans with key retailers and the support has been tremendous and the new brand equities are going to be implemented online and in store starting from now. Additionally, we have this Brazilian local business that accounts for over 10% of the consumer beauty business and that's doing fabulously well and that we intend to take to the next. So now we're going to move to the Luxury business. And our first priority in the Luxury division is to grow our fragrance business and start to build a makeup prestige makeup portfolio. We have today very well positioned brands in fragrances to drive strong growth in this luxury area. 3 of our brands are in the top 10 female fragrances and 2 brands are in the top 10 male fragrances in calendar year 2020. Marc Jacobs Perfect has been the number one fragrance launch of calendar 2020 in America and in U. K. U Go Versa Life has been the best female fragrance launch in Germany for over the last few years. Another information that's very important, we do not have any major license up for renewal in the next 5 years. And last but not least, many licenses allow the extension of the brand beyond the Fragrance business. So now let's come back to how we are going to reignite and take the Fragrance business to the next level. As you can see it on the left part of this slide, the male Fragrance, the male Luxury Fragrance arena is 33% of the business worldwide and Coty is clearly leading this area with iconic brands very strong on male fragrances such as Cabin Klein, Hugo Boss, Gucci, Burberry to name a few. The female side, which is representing 2 thirds of the market, Coty is strong, but we think we can benefit from additional iconic franchises added to top global top 10. And last but not least, it's small area of the business, but highly, highly and strongly growing, which is the one called the niche fragrance business or Artisanal Fragrance Business Accounting For 10% TO 20% of the Luxury Fragrances depending on the market. And there Coty is going to build out its presence with key brands such as Gucci, Chloe, Bottega Veneta, Roberto Cavalli or many others to name a few. On this area of artisanal fragrances, we are scaling the presence in this area that's the ultra premium side of the business with several portfolio brands that have proven their ability to expand into this ultra premium category is still small, but it's a strongly growing Coty Fragrance portfolio with nonetheless, as you can see, the Gucci, the Alchemist Garden that's been launched 2 years ago with sales weighted to EMEA and Asia Pacific as you can imagine where Alchemist Garden sales grew double digits in calendar 2020. On the other side, Chloe Latoury des Fleurs, which is booming in regions such as China, the number one productivity in Sephora in China amongst all artisanal fragrance brand or just another example to share with you, Bottega Veneta, which is the number one fragrance brand in Sephora in China. Now we move to the 2nd growth engine for the Luxury division, which is the one of prestige cosmetics. As you can see it here no. As you can see it here, we are building this portfolio with 3 brands that are new to the company, Gucci and Burberry on the premium side of the market that we've been developing since 2 years now. So it's just the beginning of the expansion of these brands. And of course, since 1 year, the arrival of Kylie Cosmetics on the entry prestige part of the market. The first results we're having today are showing a strong progress already in Prestige Cosmetics, Gucci Cosmetics, and you've heard it already and you'll hear it more and more in the coming future with Gucci first foundation designed for the Asian market that has sold more than 60,000 units globally in just 2 months. And in the last 9 months, Gucci Cosmetics sellout has been growing 110% in America and plus 50% in Asia Pacific. We have the same kind of results with Burberry Cosmetics with this makeup sales growing by 48% in China and gaining market share consistently. And these two brands, you have to have in mind that the productivity of these two brands is already super high If you compare to leaders who have around 600 SKUs, Gucci is still having 222 SKUs and Burberry 155 SKUs. So you can imagine once we will be complementing the portfolio, which is happening in calendar 2021, calendar 2022, calendar 2023, the growth potential of these 2 mega brands in Asia, but also in America and in Europe. The 3rd engine of the company this time is building a skincare portfolio in both divisions. As you can see it on the next slide, we need to make sure that this portfolio is encompassing the key trends of the skincare business worldwide. The first key trend is the one that everyone has heard of is the one of green, cleaner, vegan, more sustainable skincare options. And this one is clearly towards, I would say, the younger consumers, Gen Z and millennials and entry premium brands. Then you have 2 other parts of the market that are heavily growing. The first one is the one that I call dermatology led solutions. That's the one all about the growth that you are seeing online driven by the search for ingredients coming from dermatology such as vitamin C or retinols. This area, we need to have a brand position on this one. 3, what we call regenerative medicine. This area is clearly at the origin of key big successes of the skincare industry worldwide and this area is clearly an area where you can position premium plus or ultra premium brands. Last but not least, brands that are going to educate young consumers that we call Gen Z brands, thinking about Kylie of course, that are brands that are going really to educate consumers about how to use their first cleanser, first moisturizer or first lip balm. And this skincare trends, we are very confident that we're going to grow them very, very strongly because they will be rooted on a strong IP in skincare in the Coty Company. The first IP is the one that we call light and environmental aging protection. This is again thanks to Lancastere that's been continuing to lead the game in this area, being a leading game when it comes to UV and pollution protection that are key trends, as you can imagine, in Asia and moreover in China. And Lancaster owns patents in this area such as the broadest sun protection ever developed in skincare with protection including against blue light and also technologies that are very, very easily adaptable to skin and color categories. The number 2 IP on which we are going to build each and every skincare brand is what we call the vectorization of dermatological grade actives. Here again, think of Reginald, think of vitamin C, think of niacinamide, which are ingredients whose search has been booming online and on which a company and a brand like Compaster has been heavily investing not only 3 years ago, 5 years ago, but since 30 years with unique and patented cationic liposome technologies that allow to precisely deliver these active ingredients in the core of the cells. And these are inspired by the gene therapy vectors, which are the most performance intracellular penetration vectors. And this is really a very, very important topic since this spike towards dermatological ingredients is usually happening at the same time where people get irritation because these ingredients are not mastered the right way by many, many skincare brands. And Lancaster, because of its liposome technologies, is going to allow consumers to use this highly efficient ingredients while taking care of the skin sensitivity. The 3rd IP that this company has is the 1 in regenerative medicine inspired technologies with unique combination of repairing enzymes from natural allergen, most of them that are going to be vectorized using again liposome technologies, which are going to contribute to skin regeneration and damage repair to preserve skin use. The 4th, I would say in jeans, that's going to help us a lot with makeup, face makeup, which is going to benefit strongly from the skinification trend, but also on skincare in regions of the world where the global warming is going to be very, very quickly, I would say, visible and is going to transform the wear of skincare, very, very complex. In fact, these patents we own in longwear, thanks to a brand like CoverGirl, are very, very useful to make sure we create skincare formulations adapted to markets where the temperatures are going to rise very, very strongly in the coming years. So this will lead to a portfolio that could look like the one you have here in front of your eyes. That's a very comprehensive portfolio with brands that we own today like Filazoshi, Lancaster, brands that we have recently acquired such as Kylie or the upcoming launch of SKK and by Kim. And of course, we could also imagine going on selected consumer beauty brands into the skincare arena. So this portfolio of brands will go from, I would say, the basic and performance led skincare at affordable prices, Kylie becoming the Gen Z destination and entry premium skincare line, philosophy becoming the green and clean surgical skincare queen, I would say. And then of course, SKKN by TIM that we are going to root clearly as a brand that's going to democratize the most popular procedures. Lancastire, the regenerative medicine expert or we can imagine one day to have some of our designer brands going into skincare, and we can even think about what could be at the tip of this pyramid. So very quickly, we are going to start we started already to do the same work that has been done on the makeup mass makeup industry that we have at Coty, which is to reposition each and every brand. We will be very happy to present as quickly as next month the new positioning of philosophy that's going to move from a U. S.-centric well-being beauty brand into a leader in green, clean and aesthetical skincare. The second brand we are repositioning is Lancastere. That's going to become Lancastere Monaco. This is another jewel that we own with a very, very strong heritage. If you look at the next slide, you can see that Lancastair has been the company that has been introducing retinol in cosmetics, oxygen therapies in the 90s, again in skincare. When I say cosmetics, we mean skincare. And more recently, we are the 1st company we've been the 1st company and the 1st brand to combine genetic and epigenetics, sorry, in repair technologies in the 365 skin repair serums. So today, this is how the brand looks. It's clearly a regional UV protection brand and we are going to take this brand into a premium plus regenerative skincare brand benefiting from many things. First of all, the high end heritage, You may know it or you may not know it, but, Lancaster in 1965, it became the exclusive beauty provider to Her Serene Highness Princess Grace of Monaco. And you can imagine how this kind of stories can be leveraged very strongly in key parts of the world such as China, but also we're going to leverage all the areas in skincare technologies that Lancaster has been pioneering such as light protection, vectorization of dermatological grade actives and of course regenerative skin repair technologies. You will see soon, Lancastair becoming a leading edge skincare brand in the areas of skincare. And again, today, the brand is already anchored in the skincare arena, as you can see today being a strong, strong contender at Sephora, where the brand is sold exclusively. And you can see here some visuals about our 365 serum or our UV protection products that are again promoted by key opinion leaders from China. So this is it for, I would say, the repositioning of each and every brand in the luxury division with the creation of a luxury prestige makeup portfolio, a skincare portfolio in both divisions but mainly in the Luxury business, But last but not least, accelerating our Luxury Fragrance business, specifically the female one and of course, the artisanal Niche 1. Now of course, this has to be built around our e commerce and direct to consumer capabilities. As you already know it, we've been already showing strong retailer.com and pure player performances with ecom already representing 17% of our sales for the first half of fiscal twenty twenty one, almost reaching 19% in quarter 2, growing over 40% and e commerce being represented today, 50% is made with pure players, a third is made with retailers.combusiness and 13% is made with our direct to consumer businesses, namely Kylie, philosophy and a bit of bourgeois. And again, you may know it, but this business is strongly margin accretive property overall. So our brands has been winning again on key places such as Amazon. As you see it here on December quarter, the color cosmetics category was 36% of growth, while Coty growth in general was 133%. Mass Fragrance business has been growing at Amazon at 39% and Coty was growing almost 4 times faster. And again, you can imagine this picture if we power it with the drive huge using the drive of our huge reach through holistic social media ecosystem. If you go from the left to the right, you can see that Coty Brands have already something like 16,000,000 followers on the different social networks. Our fashion houses have one extra 127,000,000 followers. And if you add, I would say, the reach of our core talents such as Kim Kardashian, 193,000,000 followers Kylie Jenner over 200,000,000 followers, but also Lilly Ryan Hart 26,000,000 followers, David Beckham 65,000,000 followers. This takes us to almost 700,000,000 followers that we can reach with the different brands we have in the different divisions. And our strategic, I would say, focus in the digital area, specifically on the direct to consumer journey is clearly to focus on what we call consumer centric data innovation and data in a way gathering through real time social listening. We are deploying a full suite of solutions and dashboards and qualitativequantitative analysis to inform the business in real time, which we didn't have a few months ago. Brand sentiment and reputation, product consumer feedback, what are the key trends, what are the key consumer tribes on which we could invest, who are the advocates and influencers that we can build on and of course, how do we optimize the consumer experience through analysis and measurements. And this clearly will help us to envision our direct to consumer, I would say, journey that's going to be big in the U. S. On owned web is in the Q1 of fiscal 2022, the kickoff of our team skincare direct to consumer in fiscal 2022, bringing philosophy direct to consumer offer to the next level, which will happen somewhere in the second half of fiscal twenty twenty two and at the same time building the next generation of supply chain capabilities to fully support the direct to consumer ambition, which is starting already now. And then on the other side of the world, we're going to go big in China with Tmall flagship stores as soon as now, unlocking the full potential of brands such as Gucci and Burberry, creating the conditions for success for our other iconic brands to go big in China. And yes, of course, unlocking the potential of what's becoming today the norm, which is live streaming and social commerce. And I took 2 examples to show you again the power of what we call advocacy and social commerce that are going to become key priorities for Coty as soon as now. Advocacy is clearly capitalizing on organic advocates to boost sales. Social commerce is clearly putting in place beta testers and lead for Amazon Beauty Life events and we are going to expand on confidential things that I cannot share with you today that are going to be on the live stream side of the business and in social e commerce. I can share with you one example today, which is the one how of advocacy and how can we use natural advocacy to create commerce. And this example is about Simply Ageless that went viral on TikTok starting from a post from a micro influencer was having 22,000 followers that advocated the content around CoverGirl Wrinkle Defy foundation. And this was quickly boosted with the media investments from our U. S. And Canada teams that happened as quickly in 20 as 24 hours, securing the users' rights, boosting the paid media campaign, partnering with e commerce to make sure inventory was there. And again, the results were outstanding at our key retailers, as you can see it on the right side of the slide, with sales of this key franchise doubling or tripling almost overnight. So this gives you a sense of how our e com is becoming not only a key place and a key partner for the business in the company, but clearly we are going to be more innovative and we are going to be leading this game in this area starting from now and on. And of course, on our consumer beauty brands, but also as you can imagine our strong fashion brands, but also in skincare. All these engines, you can imagine the growth in the luxury business, fragrances, niche fragrances, prestige makeup, skincare, powerful brands on social media, powerful consumer beauty brands that are going to lead, I would say, the social media discussion with clean makeup and the skinification of the beauty industry. All these engines on top of e com are going to help us in a dramatic way to expand our business in China. So what do we have in terms of business in China? We have a highly desirable fragrance brand, brand in this country. Gucci Fragrances are already number 8 in China. Calvin Klein Fragrances are number 6 on gd.com. Burberry Fragrances are number 10 in this country. Our leading artisanal fragrance brands, as you can see it on this slide, such as Chloe L'Autolique de Fleur, which is the first number one productivity in China Sephora amongst all niche brands. Chloe revenues are growing very, very strongly including recently Tiffany and Co, whose brand revenues are growing again double digits year on year and last but not least, a brand like Bottega Veneta, which is our number one fragrance brand in China in Sephora with here again business that's growing triple digit growth in this country. We are going also to increase our footprint in prestige cosmetics and in skincare with Gucci makeup that's been gaining as we've seen it already 16 basis points of share more recently. Verbally makeup gaining 10 points again in the makeup business and more new things to happen on a brand like Lancastere that's already leading the sun care business in countries like China that we are going to move very, very quickly into skincare as you will see it very, very, very soon. And the first results we got in this country are spectacular, specifically from the introduction of Gucci and Tmall, very strong brand opening sellout. Gucci Beauty has been a top four performance for Luxury Beauty brand opening since the number top four performer since 2018 with a very strong performance in key lines during the opening period, number 1 on lipstick, number 4 in face category, number 1 in beauty powder and number 1 on fragrances. And this was thanks to the incredible power of key opinion leaders such as Nuhan and Top KOL, Austin, who has done a very, very interesting live streaming that generated over 50,000,000 social discussions, allowing the brand to gain 90,000 followers in 46 days and 43 ks members on Tmall. And I'm very happy to share with you a few seconds of this very, very successful live streaming. So you can see you can clearly see here how much these desirable brands that we do own are going to operate very strongly online in countries such as China, but moreover in the rest of the digital world. So last but not least, Coty clearly expanding in this region in what we call domestic travel retail. The example of Hainan is fixed by itself. We have 7 downtown stores or 1 airport store that's currently open, sorry, and active. 1 downtown store and 1 airport store that are going to open by the end of this calendar year and brands such as Gucci and Burberry who sell out last year has been growing 3 times versus 2019 and informal feedback recently suggesting that Gucci and Burberry are Berberie are ranking among the top 5 brands in fragrances with the strongest growth in the makeup arena. The last engine of the company growth is the one of sustainability. So we can start with the beauty of our products. As you can see it on the next slide, sustainability is clearly driving product innovation. We've seen it several times with Clean Fresh makeup line on CoverGirl, Good Kind Cure and Sally Hansen and the recent launch of Calvin Klein at CKEveryone. The second engine of our sustainability journey is the one of the beauty of our planet. You're all aware of the exclusive partnership Coty has recently signed with LanzaTech, which is very, very important to allow Coty, which is the number one fragrance maker in the world to transform and upcycle this business into, I would say, a sustainable business, transforming carbon captured from factories into ethanol, cosmetic grade ethanol to be used in our fragrances with the majority of our fragrance portfolio using carbon captured ethanol by as soon as 2023. And the 3rd, I would say, pillar of our DNI strategy is the one around our people with a majority female board and executive committee level, rolling out change the conversation, trainings all over the company and things arriving that are new such as something we've recently announced, which is a new pay equity commitment to ensure we pay equitably for similar roles and performances regardless of gender by 2020 22 and for things to be presented to you very soon. So now I'm going to turn it over to Laurent for a high level discussion of the financial framework of this presentation. Thank you very much for your attention. Thank you, So let me share now with you the financial overview. We are on track to end fiscal year 2021 with net revenues of about $4,500,000,000 to $4,600,000,000 with $2,000,000,000 of net revenue in H2 'twenty one, approximately evenly split between Q3 and Q4. We are confirming our fiscal year 'twenty one adjusted EBITDA target of $750,000,000 Despite net revenue decrease due to net M and A with exit of Unique, low quality sales reduction and COVID impact, we are able to improve our adjusted EBITDA margin by 300 basis points through strong profit protection efforts. Now looking ahead, as Sue explained with our strategic priorities, our Luxury business will drive future revenue and profit growth. Skincare in 2025 will be over 10%, prestige cosmetic high single digit percentage and China over 10%. We are confirming our calendar year 2021 leverage target. Our Q3 fiscal year 2021 net debt is landing approximately $5,100,000,000 with KKW transaction of about $200,000,000 Wella working capital negative reversal of $100,000,000 and seasonal free cash outflow offset by positive ForEx. We continue our EBITDA expansion, working capital improvement led by inventory, other cash initiatives in Q4 fiscal year 2021 and X1 fiscal year 2022 to move towards leverage calendar 2021 towards 5 times. Important milestone for Coty is our successful bond issuance to extend maturities. We have recently completed the issuance of $900,000,000 of 5% senior secured notes due in 2026. There was a very strong demand, which resulted in bond offering being upsized to $900,000,000 from initial expectation of $750,000,000 Proceeds are net leverage neutral and will be used to pay down fiscal year 'twenty three term loans, reducing refinancing risk. As I explained, we have multiple levers to further improve leverage and free cash flow. Number 1, EBITDA expansion with steady growth driven by revenue acceleration and margin improvement. Number 2, working capital improvement, significant opportunity in inventory, further optimization of receivables. Number 3, monetization of assets, opportunities to monetize some of our PP and E and intangible assets. Last but not least, we have financial stake in Velar. No near term exit plans, but we expect value of stake to grow from the €1,200,000,000 value at Vela transaction close. Let me now hand over to Sue for the conclusion. I'm going to make a quick conclusion. Again, I really would like you to go away from this presentation having in mind that Coty is a very unique beauty company, which is today at an inflection point for sales and profit growth. Why? 1st, one of the Coty has one of the most beautiful portfolios of the beauty industry with 2 very complementary divisions. Our new strategy that I have presented to you today has clearly been a great clarification of the Coty story, the Coty portfolio and sets a clear path towards value creation. We have also, again, as I said it, one of the most beautiful and most comprehensive brand portfolios in the industry, and we are the only group at this level to operate 2 complementary divisions, Luxury and of course, Consumer Beauty. 2nd, there is a significant growth potential in our current portfolio. Beauty demand for sure is going to rebound post pandemic and is going to be led by the luxury business, our extensive portfolio of highly desirable luxury brand licenses will allow us to capture opportunities in the most attractive areas of the beauty market. Luxury makeup, luxury skincare, China, Asia Pacific and of course, travel retail. Number 3 region, there is a new sense of urgency as you can see it, you've seen it during this presentation, you've seen at which speed we've been repositioning and reinventing almost each and every brand in each and every division. This sense of emergency is clearly what's going to help us to benefit from the new wins that are hopefully going to blow starting this summer and for sure after this summer and in fiscal 2022. Action plans that's been already implemented with the reveal of all repositionings that you'll see before the end of this calendar year. This new sense of focus will help us clearly to grow the 15, 20 brands among 70 of the company in areas of the business that are the most promising, focusing luxury resources, as we say, in house on big countries, big cities and e commerce to mirror the future luxury retail world. Number 4, phasing out, of course, low quality sales is also a great way to strengthen the health of our brands and the health of our businesses. So the new Coty, I would ask you to measure it through sellout trends and profitability. As you can imagine, several points of revenue growth in the next couple of years will be dedicated to cleaning up this value distribution. For me, this marks the end of an old system and the takeoff of the new Coty that hopefully you're going to see in the coming 2 years. Thank you very much for your attention. It's been a real pleasure to prepare this presentation for you. And with Laurent and myself are very happy to take your questions about this presentation and the, I would say, key opportunities for Coty as a company in the coming years. Thank you very much. We did receive a few questions during the presentation. And the first question is for Sue. You have given a lot of great detail on the forward strategy, but is there any framework you can provide about how to think about the revenue and profit outlook in the coming years? Hello, everyone. Thank you, Olga. So again, that's a question I was waiting for. So I would say that we do understand, of course, the importance of providing long term guidance to measure our performance and, of course, the success of the strategy that we've just presented. At the same time, it's very important for us as well as our investors that this long term guidance is credible and at the same time achievable and in the current very volatile micro backdrop with new lockdowns as you know it and restrictions in many parts of the world, we do not believe we could accurately provide the level of guidance at this time. We are committed to provide a lot more clarity on our medium term outlook at our planned Investor Day in fall 2021. However, what we can absolutely say today with certainty is that fiscal 2021 has been a reset year for Coty in terms of scope refinement, low quality sales reduction and meaningfully improving our cost base. As such, our strategic progress should be measured against fiscal 2021 and in the coming years, we intend to accelerate both our sales and profit growth from this fiscal 2021 baseline. Providing a few building blocks again to refer to the presentation that you have just seen and to help you think on our forward trajectory, I would say that as we discussed it today, we expect the maker category to grow at low single digit, middle single digit CAGR, if I may say, in the next 4 years. As we did and we have laid out today, the immediate focus for the mass business is to stabilize our market share and to get to a point where we are performing at a similar level as the overall market. And we are already going full speed in activating our plans on each and every brand that I have been presenting to you today. For prestige fragrances, we already have a very, very strong position. And historically, we've been growing in line or ahead of the market, which is forecasted to grow at middle single digit CAGR over the next few years. On top of these 2 category trends, what I can tell you is that we have a number of opportunities as you have understood from this presentation that we are highlighting in our, I would say, strategic priorities and that will be fully incremental to the current and existing portfolio. These include, of course, prestige cosmetics, as you've seen, currently 3% of our sales, very, very tiny, and we are targeting to reach high single digit percent by fiscal 2025. The second area of growth potential worldwide, but also in Asia is skincare, which is currently representing 6% of our sales. And we are targeting to reach over 10% by fiscal 2025 here again. And last but not least, China, which is currently 3% of the sales of the company and we expect to reach over 10% of sales by fiscal 2025. If you take all these together, I would say that we believe this position us for a nice acceleration in growth in the coming years, even after taking into account and have insisted on this at the end of my presentation, a couple of points of impact from continued reduction in low quality sales to improve the overall profitability, Where we will be again on this topic very, very active, but at the same time very, very pragmatic. So I would say that it's too early maybe to comment on fiscal 'twenty two outlook. But based on everything we see today and based on this presentation, I would say that the external expectations don't look unreasonable. That would be, I would say, a good summary of the mindsets of the company today in terms of outlook. Great. Thank you, Sue. Our next question is for Laurent. As skincare, prestige cosmetics and DTC become an increasing mix of your business, where do you expect gross margins to be in the next few years? So thanks for the question. So definitely, so we are not disclosing precise gross margin numbers, but definitely and we explained during the presentation is that definitely this is an accretive business. So this I mean growing this activity will increase our gross margin in addition to a lot of other initiatives, either on supply chain, on mix, on pricing, on revenue management. So indeed, it's a big component of our gross margin improvement journey. Great. Thank you, Laurent. Our next question is for Sue from Andrea Teixeira at JPMorgan. Are you starting to see an improvement in the CoverGirl Mascara and new packaging? And what is your aspiration for CoverGirl Clean Fresh? How much could it represent of sales? And finally, do you expect fragrance momentum to continue or some pantry destocking given strong holidays? So let's start with the last part of the question. I would say that the fragrance momentum, I think, is going to continue because it's been clearly at the top of the growth. The market in America, for example, in the luxury business, when it comes to fragrances, is seeing a double digit growth versus 2019 and Coty is over performing this market. So as you can imagine, this is clearly an area that we don't see in fact going down in the near future. We are today far ahead of the, I would say, holiday stocks. The second question, which is about CoverGirl, yes, we start to see, I would say, strong green shoots on CoverGirl. The new mascara lashtasteen was launched already with the new look, the one I've been presenting to you with a brush that's visible on top of a beautiful campaign that had probably one of the best results in terms of testing, but also in terms of sellouts. And out of the press, I'm happy to share with you things that I think some of you have spotted already, that are details about the latest news and data up to 10th April, we can say that CoverGirl is growing ahead of the U. S. Market for the first time since a long time. The brand gained 0.6 market share by growing plus 59% in a market that's, of course, Boeing is 50%. And the MAG-eight that we've been talking about several times are growing again far ahead of the market at 65% of growth. And this has been driven by 3 consecutive weeks of share gains, 0.5 points and then 1.4, 1.7, which is again, in a way amplifying. And again, at customers like Target and Walmart, we have seen the highest cover down growth rates among the key retailers, which are responding very strongly to the new campaign that we've been airing in recently beginning of March on Lashblasting with a strong halo effect on the clean franchise. And again, without giving any going to grow again because it's been made up to now by, I would say, face and complexion products. So now we are adding a lot of SKUs into this area. So probably clean franchise at CoverGirl is going to be by far number one franchise, which is already today, but in a bigger manner, but also the growth, I would say, engine for this brand. And you've been, I think, very happy to see the big comeback of Nikki Taylor after a few decades. She's used to be the face of pin makeup. She becomes today because she's using Simply Ageless, the face of Simply Ageless. And this really is a campaign that's really rooted in many trends of the market. First, it's the 60s anniversary of Perrigal. 2nd, I would say this is really rooted in what people are looking for today, which is this, I would say, a wave of nostalgia towards things that are reassuring, things that we were happy to be in, etcetera. 3, it's really our key asset on the American market. Simply Ageless is number 1, anti aging and rejuvenating foundation on the American market. And last but not least, the average price of Simply Ageless is 50% higher than the average price of CoverGirl face products. So this is also accretive in terms of bringing stronger gross margin to this brand in America. Great. Thank you, Sue. So our next question is also for you from Faiza, Deutsche Bank and on a similar kind of note around the CoverGirl turnaround. So for CoverGirl, the focus is on the Magnificent 8 and that makes perfect sense. But it doesn't seem good enough to offset the decline of the rest of the tail. So Faiza wants to understand what is the aspiration to grow CoverGirl or do we simply want to stabilize it at the current level? What do we need to grow it? And similarly, how would you rate the relative quality of CoverGirl products versus 10 to 15 years ago? What changes have we made on the formulation? And finally, on CoverGirl, when will the in store execution be completed? Okay. So let's start with the last part of the question at the end. The in store execution is starting now and we are going to, in a way, revamp something like 3,000 stores for this, I would say, coming months, which are the key, I would say, highest productivity stores. And we'll see how things are going to evolve. And then we go to the next step if we feel and see that there is positive results. When it comes to CoverGirl, I would say product quality. Honestly, again, I've been in this industry for now quite a long time and CoverGirl and I've been using to be very transparent with you, CoverGirl foundations, CoverGirl Mascara, I use at the moment, LashBlastin, etcetera. Honestly, the quality of CoverGirl products is one of the best that you can find today on the overall makeup business, including the I would say, the more premium side of the business. Why? Because this brand has been inventing a lot of things that are today central to the makeup industry worldwide, such as the molded brushes on lash blast. You cannot achieve high volume without clamps if you don't have this kind of, I would say, molded plastic brushes. You cannot achieve long wear foundation, especially now with the mask wear if you don't own the, I would say, technologies that are behind the non transfer results. And this requires a certain kind of formulations using the power of volatile ingredients, etcetera, in the skin. And again, Clean Fresh makeup is really a formula that's been cleaning everything that people don't want to see anymore in a foundation formulation. So I would say that this brand is still at the forefront of anything that consumers are looking for, performance products, but also on the clean side of things, which is the new requirement that the younger, especially the Gen Z consumers are looking for. And again, in the presentation, I was mentioning the Hispanic target that's really clearly towards this kind, I would say, of new formulation that are at the same time highly efficient to provide long wear, to provide visible volume and at the same time to assure this target of consumers when it comes to the healthiness of the formulation. And these customers that are in general younger for the Covalent line, but also younger for the for our retailers are key target to bring back business that once went into, I would say, specialty stores or maybe a more niche brands. So clearly, this brand is going in the right direction. And again, the latest Nielsen from yesterday that I've been sharing with you a few minutes ago, clearly shows that we can not only stabilize CoverGirl, but on key areas of the business. And there it's really, I would say, the amplitude of the success we are going to have today on Clean Fresh and then on Simply Ageless and then on the next franchise that we are going to revive quite soon, it's clearly there that we'll be able to say that are we just stabilizing the brand or are we taking it to a growth mode. But I'm quite confident that what's happening today is really inventing the new CoverGirl and the reaction of customers consumers, sorry, be it consumer shopping online or consumers back to stores shopping today in stores is absolutely, I would say, amazing for us because this was really a key element to validate this new strategy. Great. Thank you, Sue. Our next question comes from Steph Wissink at Jefferies and it goes to Laurent. So two questions. Can you talk a bit more about the working capital improvements in inventory? And the second question is thinking about the mix by category, so math versus prestige and across the categories, what do you see as the most ideal balance to maximize margins and free cash flow? Okay. Thank you. So indeed on as I mentioned, so we are really working on streams to improve our free cash flow and to deleverage. And inventory indeed is a key pillar of these initiatives. So there are really a few elements. So one, and we mentioned is really about the complexification. So we are really working and especially in mass, we are reducing the number of SKUs because we made a deep study and we see that we have low rotation SKUs. So we are reducing this and in fact, these low rotation schedules, they represent a very small portion of our net revenue. And then we use a shelf space on high rotation scale. So it's good for the really for the top line. But by doing that, we simplify the portfolio and it's a key lever to reduce inventory. So these are really the strong actions we are working on. Point number 2 is also we are really working with the supply chain team on forecast accuracy. So it's really 360 work between supply chain and commercial. So it's really okay improving this forecast accuracy. So it is 3 60 degree again. And so the objective of this work is, of course, we are reducing inventories. So we are really gaining immediate cash. But even beyond this is also a strong lever to improve our gross margin. By doing that, we are reducing what we are calling E and O, which is exceed and obsolete, which are products that sometimes we cannot sell anymore or we need even to destroy because they are overstocked. So it's really a positive circle that we are implementing with supply chain. So again, gaining cash, but also improving the gross margin. So that's really the strong work we are doing on inventory. And again, I'm insisting, it's not only supply chain, it's a global company initiative with bringing very strong positive element on all the elements. On your second question, so mass and prestige. So today, the share is about 40% of our portfolio is mass and 60% is prestige. Sue has really clearly explained the strategy. So indeed, on the one hand, we are stabilizing the mass business. And then we have a lot of initiatives indeed to improve all the premiumluxury to increase to keep a very positive track record on fragrance and again accelerating skincare and also China. And as we mentioned, this part of the portfolio is very accretive. So yes, it will have a higher share in the total portfolio. And in addition, it's accretive for the margin. So to answer your point, yes, I mean, this part of premium skincare and also the Pussy will have a higher share within this strategy. Great. Thank you, Laurent. Our next question is for Sue and it comes from Javier Escalante at Evercore. And the question is, what percentage of the company sales are expected to be phased out? And how are these declines? How can they obscure the turnaround? And to what extent pulling resources on these non core brands can accelerate their declines and lead to basically operating deleverage. So focusing question. Sure. So I think the question is focused on what percentage of our overall current sales we expect to phase out And what is the impact on losing that scale on our business and then our presence with retailers and customers? Okay. I'm not sure I understood the question precisely, but let me just answer the way I understand that. You take, for example, our mass beauty business, we've been talking a lot about Tails at CoverGirl. I've been asked several times what does mean the 30% that is not part of the 70% to 80% that we call the Magnificent A. In fact, this part of the business, it's a lot of SKUs, but that represent a very small amount of turnover. It's something like 40% of SKUs representing less than 5% of the revenue in consumer beauty, for example, if you want to have an image. So this part of the business is not only going to once we will phase out from this, is going to help us, as Laurent just explained, to overexpose what we call, if you take color of the Magnificent 8, and we have exactly the same kind of thinking when it comes to Re Mail or Max Factor in Europe, which are brands in which there are a few sub brands driving not only the growth, but also the profitability and the success of the brand. And these are areas of the business that we were underexposing in fact up to now. So we're going to overexpose these areas of the business. So again, these tails, I don't see them as removing any kind of growth potential from the company for a simple reason. In fact, what happened up to now and this is part, if I take again the example of Coverdell of the mistakes, as I call them from the past, which is that, you know, we're investing media behind sub brands sometimes once, sometimes twice during a year, and then we move to the next sub brand. And this is not the best way to build a brand in a way. A brand is built with, I would say, core sub brands that stand for something on which to invest year after year. And any new SKU that you're going to bring to the game should ideally be under 1 or the other of these brands. And as Laurent was mentioning in the question that he had earlier, I would say that this how should I say this? Yes, this part of the work, which we summarize sometimes and we say fewer and bigger, it looks like just like a formula like this, but this is really going from the top of the company to any kind of department and including making sure any new launch is part of this strategy. And this has huge impacts because when you do fewer, bigger, the quantities are bigger, the cost of goods are better, the gross margin by definition improves, the A and O improves, all the rest and the investment of media, the media investment is behind key bets of the company. And I can give you an infinite list of consequences of this new thinking that we're implementing today on a daily basis at Coty, now that we are starting to think about 2022 and 2023 and 2024, of course, this is clearly an area we are making huge progress almost on a daily basis today. Great. Thank you, Sue. The next question is also for you from Chris Carey at Wells Fargo. It's a 3 part question. So the first part is around how we're thinking about the global category growth rate going forward and Coty getting back to the category growth rate? The second question is around with all of the initiatives we've highlighted around getting skincare to a higher percentage of sales, prestige, cosmetics and China to a higher percentage of sales. What is our can we comment on the investments we think we need to have in order to hit these targets? And more broadly, the appropriate level of advertising investment as a percentage of sales going forward? Thank you. So again, when it comes to the global growth of the market, again, what we see at Coty is, again, to grow, hopefully, as soon as possible in line with the mass market growth. Again, this is clearly our objective on our key maker brands and we can imagine that on a brand like Adidas, but also on other brands have not been talking about that are key assets such as Bruno Bonanni in Germany or Verhawn license in America when it comes to mass fragrances. These are, I would say, jewels of the company that we intend to take to the next level. The idea is really to stabilize this business and to reach a growth that's in parity with the market. This is one. Clearly, the growth of the company is going to come from the luxury side. It's been the case up to now for the luxury division that's been growing sometimes in parity with the market, sometimes better. And again, the new growth engines we're adding to this division are going hopefully to take us ahead of this level of the luxury growth. The second question, which is about skincare, prestige and China, are they going to help us fuel and it's the same question I guess about advertising. Are they going to help us fuel, I would say, this growth? In fact, the equation I have in mind and Laurent and myself are discussing on a daily basis, it's the one that's growth of the revenue, growth of the gross margin, the 2 together are going to develop, I would say, money to invest behind these brands, including phenomenal. Of course, as you can imagine, this is going to be phenomenal. Of course, as you can imagine, this is going to be invested in key countries, including China. That's part of our strategic, I would say, objectives. When it comes to advertising levels, again, we've been saying during the Q2 earnings that we intend to be back to the levels of 2019, which is already the case in percentage. And during entering Q4, the idea and the 1st month of Q4, that's now. The idea is really to make sure we are putting money including in absolute value behind the key brands that's at the level of 2019. So this is clearly the reason why we've been accelerating on the cost reduction program, the reason why we've been putting in place this fewer, bigger, I would say, strategy, The reason why we are doing this pay as we go new way of working, which is top down, bottom up way of deciding where to invest money, in which country, behind which brand. This is really helping us to put amounts of money that are significantly at the level of 2019, sometimes over on the key bets of the company rather than stretch among a large number of brands, just to say overall we are at the level of 2019. The idea is that we are at the level of 2019 or sometimes higher on the key bets of the company. And that's the way we would like you to look at the company now and on. Great. Thank you, Sue. Our next question goes to Laurent and it comes from Carla Casella at JPMorgan. And it's a 2 part question. So the first part is around the new CoverGirl displays, which look beautiful, but the question is around the question is around the refinancing of our term loans. Do you have any additional near term plans to extend the revolver and remaining term loan maturities? And are we comfortable with the leverage covenants we have beginning in June? Yes, I think we're And are we comfortable with the leverage covenants we have beginning in June? Okay. So on the first question on CoverGirl, again, this is exactly what Sue has explained. So when we are talking about media investment, CapEx is part of the discussion. So same story, we keep our CapEx under control. So there is a really strong discipline on CapEx, but we make sure that we focus this CapEx on the big bets and where there is a PRI. So concretely, what we are doing now exactly to support the CoverGirl plan is that we are shifting some CapEx really to make this CoverGirl expansion and also in store as a priority. So we are taking the money from other initiatives where there is no ROI. And again, it's a total review. We are also taking our CapEx is also from IT, from supply chain or sometimes from projects where the payback is prolonged. So again, we are stopping projects where there is no payback and we are putting the money on big bets like Kroger Gerd. So it's not an increase on CapEx. It's again better allocation on CapEx. So now on I move to the second question. So indeed on the term loan, yes, so you saw and I explained that we have these successful launch issues. So we are using it to reduce significant part of our term loan. And now indeed, we are going to work actively and we have new initiatives indeed to postpone and to amend and extend maturity of this term loan and same for the revolver. So to answer your point, and we will keep you posted, but definitely, yes, we are going to work. And so that soon, we this maturity in '23 is extended to 'twenty 5 or 'twenty 6. Great. Thank you, Laurent. The next question goes to Sue from Eva Karega at Bank of America. How should we think about the potential for the fragrance category in China given low per capita consumption in the category across much of Asia, including Japan? Yes, that's a good question. It's been a question that we've been discussing internally a lot. It's true that today this is, I would say, the lowest of the big categories in China, but it's one of the fastest in terms of growth, specifically on the highest end of the market. Again, you've seen during my presentation how what we call premium plus or ultra premium is growing far ahead of the rest of the market, specifically in China, but not only in China. And this is the reason why we are not only of course putting our resources between our fragrance powerhouses, Gucci, Bvlgari, Calvin Klein, Hugo Boss, Chloe, etcetera. But we are also shifting some investment, not media investment because this premium, ultra premium business is all about, I would say, exclusivity, presence in stores, beautiful presentation in stores, experience in stores. And if I take the example of 1 of our GWels, which is Chloe Latour Didifers, which is a brand that's all about mimicking This is the This is the whole story of Chloe Latourgides Fluff. And as you can imagine, this resonates very strongly with Chinese consumers. And this brand, for example, to take this example, and it's not the only one, has the highest productivity among niche and artisanal brands at Sephora where it's present today in China. So again, we're going to have 2 arms, if I may say. The one that's towards kind of education of Chinese consumers when it comes to mainstream fragrances. And then we have the tip of the pyramid where we have consumers that are today at the forefront of anything new that are ready to spend $150, $200,000 $300, be it on La Tour de Fleurs, on Gucci, the Alchemist Garden or on the same kind of collection under Burberry. And we are playing with both and we'll see which one is going to become the key driver of the Chinese market. But we feel that in China, sorry, next to skincare, that's where the potential for Coty is huge, Prestige makeup, where the potential is starting to be visible for Coty. And again, the past is very, very important in the future. Still, we have a 3rd engine, which is the fragrance one. And as the number one fragrance maker, having probably one of the most beautiful portfolio in the fragrance and the prestige fragrance arena, we have the 3rd engine if this becomes a key area of the Chinese business. Great. Thank you, Sue. Our next question goes to you from Robert Ottenstein at Evercore asking to discuss the new hire from L'Oreal at JV and what our management team is expected to look like? Okay. So yes, I think what is he referring to? I think he's talking about today's announcement that JB has a hire from L'Oreal joining on the digital side? Okay. Yes. My understanding is that this hiring, the person that we are talking about will not be part of Coty's Board, of course, and it's not going to be involved in any matter that has to do with Coty today. So again, over this, I had no comments to do on this, I would say, new hiring. So many things to happen on Coty, so 100% focused on what's happening at Coty today. Great. Thank you. So the next question is also from you, for you. Which brand do you expect to be the biggest contributor to your skincare growth? And on that similar vein, has the new Lancaster counter opened in Hainan? And if so, how have the initial results been? So yes, that's a key question again. Yes, you're right. Long as fair, I've been saying during the last calls that we were shifting again and presented it today during the strat plan. This brand for me has the potential to become one of the key skincare brands in China and hopefully one day elsewhere. So for me, this brand is clearly going to be our number 1 and first, at least in terms of timeline, growth engine in China. And again, the first, I would say, feedbacks that we had is that the country we are intending to open in Hainan, which is going to be to look like what the dream of how this branch should look like is going to open beginning of June. But we've opened another one on a temporary location with absolutely no support and the latest sell outs we got from there give us an idea of what's the potential of Lancastair in Hainan and therefore in the Chinese world. And the recent, I would say, sellouts we've got say that this brand could become a top 20 skincare brand in China at the level of brands such as Elizabeth Harden that's been there for years or Caudalie, which is another, I would say, French skincare brand. So this gives us a lot of confidence in how much this brand has potential when it's going to become a skincare brand presenting the different layers of any skincare brand in China with a basic offer, cleansers, moisturizers, you know, the 7 or 8 steps of the skincare and hopefully one day super premium offer on this line. So for me, it's going to be the number one growth drivers, but it's not going to be the only one. This one is clearly the one I see for China. In the U. S, which is a very different market from the Chinese one, clearly, we are going to reposition philosophy as I presented it today to you. I didn't say more because we intend to present this to the retailers very soon. And then of course, as you can imagine, Kylie Skincare and then Kim Kardashian, SKKN by Kim Line are going to be huge growth drivers for this category in America and probably in the rest of the world. So we have engines that are adapted to the different markets. As you know, China is all about ultra premiumness and it's there where you have 40% of growth and America is all about, I would say, premium and free pricing and free premium and free prestige products where Kim and Kylie has a huge potential to take us to the next level together with Filosophy. And by the way, these 3 brands are DTC operated And therefore, you can imagine that they are also margin accretive for the American market and of course, on the other markets where they will be operated. Great. Thank you, Sue. Our next question comes from Eric Hynes and it goes to you as well. With all the changes that are occurring throughout the organization, are incentives being changed to motivate the organization differently than before? Yes, this is a hot topic. As you can imagine, we are thinking about how to start fiscal 'twenty two. And again, the work that has been done is going in the right direction. We are reimagining how to build, of course, the team of the talents at Coty Worldwide. A lot of focus is being made in areas where there is, of course, future potential for growth. And we intend to put in place what needs to be put in place to really make sure not only we are growing our talents, the retention of our talents, but also bringing into the company as much as possible new talents specifically And I think this would probably be our last question and it's focused on e commerce. What can e commerce mix reach in the next 3 to 5 years? And how far along are we in terms of building our DTC backbone and which brands are driving that? So let's start with the second part of the question. When it comes to DTC backbone and again, what are the brands? As I said it to you, today it's clearly on one side in America. Kylie Skincare, soon SKKN by Kim line of skincare and of course, PHILOSOPHY, By the way, philosophy on its direct to consumer, I would say channel is showing strong, very strong growth like a lot of skincare brands before and now during the pandemic and now that we are hopefully out of this, I would say, moment. So this is an area we're progressing very fast. As you know it, we've been reorganizing the house company around digital and digital is becoming a kind of central engine. And this is, by the way, I would say, also when you start ups or the others, the way you do it is probably easier because you don't need to reorganize a whole company and make sure digital is a key part of it. We are reorganizing the company with digital at the center, creating a digital content factory in house. Same thing when it comes to direct to consumers in China. And again, I've been sharing with you the first outstanding results of our fashion houses on Tmall such as Gucci, the 3rd or 4th, I think, top four launch since 20 18 on this platform. So again, these are areas that are, of course, highly accretive for the business, but that are areas on which we are going to build a lot of capabilities, expertise. On the rest of the digital, I would say, priorities, we are really just starting to touch. And this is for me a huge possibility. I've been sharing this with you during the presentation when it comes to what we call advocacy, live shopping and social e commerce. This is clearly an area where because of our digital listening tools that we are putting in place, tools and teams by the way, will be probably able on an hourly basis, on a daily basis to catch where there is advocacy and to transform this into social commerce or live streaming shopping. So these are areas in which the company is just starting, I would say to put a finger on and it's probably going to be an infinite source of progress and an infinite source of also data gathering to learn more about who are our consumers. In terms of what's the level, you know the levels we've been communicating at the end of calendar 2020, which were around 20%, strongly growing by 40% versus a year ago, of course. But again, I don't enter into this race of the levels, etcetera, for me. This is going to become a key channel of sales for any beauty industry or any company in the world, by the way. And the idea is that we have to be at the level of this, I would say, part of the business. And this is clearly an area where we intend to be as big as possible, probably less in terms of percentages because it's not going to mean anything in the near future. But in terms of making sure we are on par or better than the market and the latest figures we got from pure players such as Amazon show that, for example, in America, but not only there in U. K, we are clearly progressing ahead of the different categories we are selling there, be it mass cosmetics or mass fragrances, sometimes over performing by 10 to 20 points. So it's really a new era that's opening for the company. And we intend to be where people are shopping and ideally over perform the category. Great. Thank you, Phil. I think that probably brings us to an end, if you want to make any ending remarks. No. I think hopefully this has been clarifying again what is Coty. For me, understanding is buying, if I may say. So probably today, people are understanding what Coty stands for. How beautiful is the portfolio of this company, how beautiful is the potential of this company. And on top of, of course, the amazing portfolio of brands we have today, been showing you and the very, very quick and the sense of emergency, if I may that we've been putting in place in the company since September 2020 in the middle of the pandemic, as you can imagine how this was not easy. But honestly, we are very, very happy to see progress, to see green shoots on color girl, what we are going to announce month after month probably for the different repositionings, spoke people, new advertising, new positioning is clearly giving is going to give you a sense of how this company is operating a beautiful and wonderful portfolio of brands. And this for me was a key, I would say, a message I wanted to share with you guys today. And of course, as you can imagine, it's impossible without a great team of talents. And again, we've been, of course, promoting people in house, hiring people from outside. Everyone is a huge expert, not only of the beauty industry, but also of the fields that are taking care of. And this is really the new Coty we want I want people to look, to follow and hopefully to be part of. Thank you very much.

• Press Release
• Slides