• Coty Share Repurchase Authorization Increased by $600M to a Total of Approximately $1B
• Coty Starting to Hedge Stock Price for Potential Buyback in FY26 Targeting Repurchase of 25M Shares
• Program Builds on Previously Executed Hedge Transactions for Planned Buyback of 27M shares in 3Q FY24 and 23M in FY25
• Coty to Continue its Disciplined Deleveraging Trajectory of Approximately 2x Exiting CY25

Coty Inc. (NYSE: COTY) today announced that its Board of Directors has increased its share repurchase program authorization by an additional $600 million to a total availability of approximately $1 billion. In connection with today’s announcement, Coty is entering into total return swaps in respect of its Class A Common Stock with several banks to hedge its potential exposure to prevailing stock price trading levels over the applicable hedging periods for a planned share buyback of approximately 25 million shares in fiscal 2026.

These agreements are in addition to the Company’s previously announced hedge transactions for planned buyback of 27 million shares in 3Q FY24 and 23 million shares in FY25. Similar to the initial hedge transactions executed in June and December 2022, any total return swap settled in shares would be covered by the Company’s share repurchase authorization.

The three hedge transactions are part of Coty's target to reduce its diluted share count toward 800 million by FY26. Coty anticipates continued strong free cash flow generation and to achieve steady deleveraging with target leverage of approximately 3x exiting CY23, approximately 2.5x exiting CY24 and approximately 2x exiting CY25.

About Coty Inc.

Founded in Paris in 1904, Coty is one of the world’s largest beauty companies with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care. Coty serves consumers around the world, selling prestige and mass market products in more than 125 countries and territories. Coty and our brands empower people to express themselves freely, creating their own visions of beauty; and we are committed to protecting the planet. Learn more at coty.com or on LinkedIn and Instagram.

Cautionary Note Regarding Forward-looking Statements

The statements contained in this press release include certain “forward-looking statements” within the meaning of the securities laws. These forward-looking statements reflect Coty’s current views with respect to, among other things, its share repurchase plans, share count targets, leverage targets, deleveraging plans, and free cash flow expectations, as well as outlook, expected guidance, trends and strategic information. These forward-looking statements are generally identified by words or phrases, such as “anticipate,” “are going to,” “estimate,” “plan,” “project,” “expect,” “believe,” “intend,” “foresee,” “forecast,” “will,” “may,” “should,” “outlook,” “continue,” “target,” “aim,” “potential” and similar words or phrases. These statements are based on certain assumptions and estimates that Coty considers reasonable and are not guarantees of Coty’s future performance, but are subject to a number of risks and uncertainties, many of which are beyond Coty’s control, which could cause actual events or results to differ materially from such statements, including the factors identified in “Risk Factors” included in Coty’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 and its subsequent quarterly reports on Form 10-Q. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this press release, and Coty does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.

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