Coty Inc. (COTY) Earnings Call Transcript & Summary

So ladies and gentlemen, good morning. We are very delighted to welcome you to our Investor Day. Today is an important day for Coty, and we are excited to update you in greater details on the strategy that we shared with you in April. We've made many strides across each part of our strategy in the last 6 months. And although there is much further we can go and we can do, I'm delighted to be -- I'm going to wait for Laurent to sit. I'll be delighted -- I'll be able to say that we have retained our position as a true beauty powerhouse. You'll hear from some familiar and some new faces that have joined the Coty team about how we have executed against our strategy and why we are so confident about our future. I want you to come away with 3 messages. First, we have a clear framework and numerous initiatives underway that are transforming the company from repositioning and stabilizing parts of the portfolio igniting the full potential of our key brands with expanded assortment and reach to how we manage our cost structure. Second, we have outstanding long-term growth opportunities ahead, leveraging our beautiful brand portfolio. We believe that realizing these opportunities will allow Coty to grow ahead of the beauty market in the coming years. And this, in turn, will create significant value for our shareholders as well as for our customers and associates. Third, by executing our transformation and growth initiatives, we will grow our earnings and cash flow along the way. In fiscal '21, at the heat of the pandemic, we set off on a journey to improve our margins, earnings and cash flow, and we have shown we can and will continue to improve our margins to strong and competitive levels. We have the brand portfolio, we have the people, and we have the solid base we need to be successful. Our unique portfolio spanning key beauty categories and prestige and mass channels is a true asset and differentiator. Few beauty companies can boast this level of diversification, and even fewer had the abundance of growth opportunities that Coty has, simply by harnessing the power of our brands, our distribution reach, our IP and our category expertise. And finally, our commitment to transforming the beauty world through the passion, kindness and, I have to say, fearlessness of our people will be a key differentiator as we cultivate the next generation of beauty leaders. We ended last year with $4.6 billion in revenues, holding leading positions in our core categories, #1 in global fragrances and #4 in color cosmetics. We have continued to diversify our presence in beauty with half of our portfolio in Prestige fragrances and the quarter in mass color cosmetics, and we are rapidly growing our footprint in Prestige cosmetics and in skincare. By channel, Prestige beauty is roughly 60% of the portfolio and growing as is our e-commerce presence, which is already in the high teens. We are equally diversified geographically, with North America at 1/3 of our business, Western Europe in the mid-20s. We have a strong presence across Brazil, Middle East, Eastern Europe and Asia Pacific, with a small but rapidly growing presence in China. Our brand portfolio spans key price tiers meeting the full spectrum of consumer needs. And we play in a large, resilient and growing beauty market across both luxury and mass, a market which has reached $300 billion in size. Coty has a rich history, starting with the founder, Francois Coty. Over 100 years ago, Francois Coty transformed the fragrance market, bringing high-quality sense and luxurious packaging to a much broader audience. Coty has continued to build up his vision by redefining beauty over time. In the early 1900s, Max Factor invented professional makeup accessible to all. In the 1950s, Sally Hansen pioneered salon-quality nail care. In the last 40 years, Lancaster has led the market on new ingredients and technologies, including retinal, DNA repair, genetic and epigenetic repair, liposomes and broad-spectrum UV protection. Over 50 years ago, COVERGIRL brought to the beauty scene, clean makeup and [ skinified ] makeup. And today, we are continuing to lead across our portfolio, always with a forward mentality, whether it is first to mass market clean vegan and cruelty-free makeup that works by COVERGIRL, by Rimmel now and by Sally Hansen, or marketing campaigns by Gucci and Marc Jacobs, which truly embody society today, celebrating the beauty of all our genders, skin tones, ethnicities and capabilities as well as the disruptive business model of brands like Kylie Beauty, which combine tremendous social media reach and incredible consumer engagement with a truly omnichannel direct-to-consumer and retail business. Today, we see our brands as a vision of the world, which you can see in our products, in our images and in our launches. That brings me to the amazing innovation power that Coty has in-house. First, I'm delighted to share that we are continuing to strengthen and elevate our R&D organization with 2 great leaders recently joining Coty. We announced this week that Dr. Shimei Fan is joining Coty as Chief Scientific Officer. We're thrilled to welcome Shimei, an innovative beauty scientist and seasoned R&D leader, with a 30-year track record of delivering highly innovative, sustainable clean consumer products for the world's leading beauty companies. In her role as Chief Scientific Officer, she may will be working closely with Veronique Schwartz who joined Coty in September as Head of Product Development, color cosmetics, skin and sun care. Veronique Schwartz brings 26 years of beauty expertise in luxury makeup as well as skincare and hybrid formulations. As I already mentioned, Coty's history is full of beauty firsts and R&D remains at the heart of what we do across fragrances, cosmetics and skincare. Coty's strong and unique IP is focused on the areas that are changing beauty and health today. In fact, our IP includes light and environmental aging protection as well as vectorization, which are essential to skincare and face makeup, skin regenerative technologies, which are at the forefront of skincare and again anti-aging makeup, skin barrier know-how, which is central to the Orveda brand and long way IP for makeup and in fragrances, which is exclusive to Coty. The fact that we have chosen to focus on leveraging this unique IP across our portfolio will not only allow us to differentiate our products, but it is also a cost-effective way of accelerating our portfolio. To help you visualize some of our efforts and capabilities in R&D., let's take a look at the short video of one of our R&D laboratories in Geneva. [Presentation]

Of course, all of the results we have delivered so far and the ambitious plans we have set are a product of the work of my great leadership team and the teams that support them. We've built our team with talent that embodies Coty's core values and complement our existing skill set. Let me introduce the team who will be presenting with me today. You'll hear from Gordon Von Bretten -- next, you'll hear from Gordon Von Bretten, sorry. Next as Coty continues down its transformation journey, Gordon and his team have been instrumental in simplifying Coty as a whole, while also developing a multiyear plan to drive gross margin improvement. Next, you'll hear from Stefano and Alexis about our Consumer Beauty segment. With our Consumer Beauty business having deep roots in both America and Europe, it was crucial to have leaders equally versed in the dynamics of both regions. Our Consumer Beauty Chief Commercial Officer, Alexis, brings extensive knowledge of the complex European market. At the same time, Stefano knows the U.S. market incredibly well and brings mass skincare expertise to the Consumer Beauty team. Following Consumer Beauty, Constantin, Isabelle and Andrew will discuss our Prestige fragrance makeup and skincare segment. Constantin recently joined us as the Chief Brands Officer for Prestige, and he has brought his strong marketing and retail acumen as well as his expertise in high-end skincare and makeup. Meanwhile, our expertise in Prestige is further cemented through the leadership of Chief Commercial Officer, Isabelle Bonfanti, who brings strong experience across luxury beauty categories as well as the know-how of international brand development and transformation. Further rounding out this festive leadership is Andrew Stanleick, our passionate CEO of Kylie also leading Kim Kardashian West beauty brands and the EVP of North America. Jean-Denis, Coty's first Chief Digital Officer, will then explain how we are transforming our digital capabilities. Jean-Denis is a leader in digital innovation and was able to organize a team around him to execute on our priorities in a cost-effective way. Guilhem will be joining us virtually with an overview of Mainland China, and Caroline will then provide an update on Hainan and our global travel retail business. In China, which is still a fairly young business for Coty today, we needed a storyteller and a brand builder. Our GM of China, Guilhem Souche, was instrumental in building out the China Beauty business for LVMH and for Lancome and he brings his expertise to Coty to help us target this booming market. Further supporting our efforts in China, namely Hainan as well as our broader travel retail business is Caroline Andreotti, who understands this channel and skincare better than anyone else. Our CFO, Laurent has brought a very high level of financial discipline and skill set to transform the entire financial model of the company into the one you are seeing today. I believe that Laurent and myself are a powerful pair partnering closely each and every day to deliver operational and financial success. We've been working diligently to help strengthen Coty credibility with you, our shareholders and analysts. Today is certainly a very, very important moment in these objectives of ours. And I think even more broadly in Coty's history as a company, as this leadership team can now claim with real confidence that we are leading a true beauty powerhouse. As a team, we are proud of our culture, which celebrates and combines kindness, boldness and forward thinking. Our reason to be is to make over the beauty world, together with our consumers, associates, shareholders and all stakeholders. We've created the road map over the next 4 years which will enable us to outperform the industry. The next step in our journey is to execute our plan and in doing so, add further evidence of Coty's position as a leading global beauty business. We've laid the foundation to extend the results of our work and our brands into the decade. Taking a step back, in fiscal '21, we kicked off our journey to set Coty on path to sustainable and profitable growth. In this first phase of our journey, our focus was on stabilizing the business, charting out or strategy to unlock our full potential and generating room in the P&L to fuel our future growth. To do this, we significantly accelerated our savings delivery and developed a detailed strategy for the coming years. Many of you attended our April strategic update, the result of our work and analysis, where we presented our sixth strategic pillar strategy. As we look forward, these pillars are the basis of our -- for our journey, which will boost our revenue growth trajectory from Consumer Beauty and Prestige divisions while utilizing our cost savings to both found reinvestment and drive profit and margin expansion. Now we are entering the second phase of our journey, building and growing our business. Operationally, this means unveiling our new campaigns in market, lending our innovations effectively and succeeding in the key white space opportunities we have identified. As you heard from us last week on our earnings call, we are off to a great start across all of our initiatives, including Gucci Flora, Burberry Hero, Kylie relaunch, Lancaster momentum in Hainan, COVERGIRL and Max Factor market share gains and Remmil's repositioning and entry into Clean Beauty. While we are closely monitoring the results and all of these initiatives, and we'll continue to provide regular updates, I'm highly encouraged that our strategy is working and delivering the strong results we are seeing across our business. This has given us the confidence to raise our fiscal '22 outlook. As you will hear from Laurent, the second phase of the journey entails improving our gross margins, reinvesting with high ROI focus, further deleveraging and simplifying our capital structure. And again, our Q1 results were a great testament to each. The third and final phase of our journey is activating the growth flywheel. This is all about operating at our full potential as a beauty powerhouse with strong category and market expansion, a simplified P&L, balance sheet and capital structure. It's about continuing to grow our sales ahead of the beauty market and growing our profit above that. The essence of our strategy is simple. We concluded that growth through more profitable categories, regions and channels creates a virtuous circle, which we can -- where we can improve our margins, produce cash, delever the company and continue to invest in our brands and in our people. And our first quarter results, again, clearly demonstrate this. While we are still in the initial innings of our journey, I'm thrilled that institutional -- sorry, investor has named Coty's top financial officers with selective 2021 all America executive team based on a survey of over 3,000 investors and sell-side analysts. Thank you to many of the people in the audience and listening virtually for your vote of confidence in Coty. We are striving to continue to earn this trust and build on it and the presentations you will hear today are another strong milestone in this direction. At the same time, Coty is also recognized within the industry for leading beauty innovation. Cosmetic mag, the leading French language Beauty Industry magazine has just awarded Coty seven 2021 Awards. This is one of the industry's highest honors, recognizing excellence in product development and it's great to see our brands take prices across high-end fragrances, high-end skincare and high-end cosmetics. Today is about the future of our company, and we will talk in detail how our effort translates into value for our shareholders, customers and employees. Our investment in these key strategic initiatives are all geared towards building a border and more resilient company that will lead the beauty industry for the next 100 years. We have talked about our 6 strategic pillars over the past few months. Many of these initiatives are well known to the market, and we have continued to build and enhance them. Today is about helping you size the potential we see in Coty and how that comes together. As we move through the fiscal '22, we are starting to reap the benefits driven by our 6-pillar strategy. We started our work by stabilizing and growing our Consumer Beauty portfolio, which is the first pillar. Our emphasis on Consumer Beauty is uncured on the knowledge that the full growth potential we can achieve in our Prestige business can only be fully realized when the second part of our business, Consumer Beauty, is performing in line with or ahead of its market. And of course, and our focus is also anchored on a powerful fact about consumers today that data confirms that coming out of the pandemic, consumers globally are choosing brands that they know and trust. And at the same time, we're making sure that our trusted brands start acting like niche brands and lead in the new key beauty trends, including in beauty. This is critical as Consumer Beauty has traditionally been and will continue to be the market where beauty companies like Coty can test innovations and approaches, which can then be leveraged across the broader portfolio. We made strategic and sensible choices starting first with the repositioning of COVERGIRL last spring with the brand now back to market share gains, then the repositioning of Remmil and Max Factor over the summer which are also seeing strong results and soon to come, adidas, Bourjois and our mass fragrance portfolio. Importantly, our portfolio of key consumer brands covers the key geographies and at a range of price positions. And as you will hear from Stefano and Alexis today, our efforts are fueling clear results. For the first time in many years, Coty's Consumer Beauty portfolio grew market share on a global basis and across categories, all while delivering substantial margin expansion. Now that we're making strong progress on Consumer Beauty, we are focusing on our largest opportunity, which is in Prestige. We're accelerating our repositioning of our luxury fragrances and starting to build our Prestige makeup portfolio. This is the second pillar of our strategy. Today, our superstar brands in Prestige cover the different segments and have roots in key markets across the globe. In the entry Prestige subsegment, we have Calvin Klein bringing its strong U.S. heritage and Hugo Boss with its German routes. Within Premium Prestige, we have Marc Jacobs with its unique U.S. perspective. For Luxury, we have Gucci, which brings the Italian sense of luxury; and Burberry, the sense of U.K. luxury. And finally, in the ultra-premium exclusive end, we have the friend chic and sustainable desirability of Chloe Atelier des Fleurs. Together, these brands represent approximately 80% of our Prestige fragrance sales and are positioned on all consumer needs across the globe. At the same time, we are establishing Coty as a key player in Prestige cosmetics. Our portfolio of brands here include luxury designer brands like Gucci and Burberry, which appear to consumers globally, and in particular, in Asia as well as entry Prestige cosmetics by Kylie, which began as a predominantly U.S. brand, but that we are rapidly capitalizing on her success in the U.S. to expand Kylie Cosmetics across Europe, Australia and soon, Brazil. Over the past few years, Prestige has enjoyed several natural tailwinds. The growth in luxury consumption in China, in North America and of course, in travel retail. Specifically, in China, we see the strong momentum in Prestige beauty consumption continuing for many years to come, led by structural drivers in this market, including an expanding middle class, growing disposable income and beauty consumption per capita increasing to be more in line with more mature markets. The strong double-digit growth we saw in Prestige business this past quarter speaks to the strong momentum we are seeing across each and every one of our key brands, including Gucci, Burberry, Hugo Boss, Kylie, Chloe and Marc Jacobs. Isabelle, Constantin and Andrew will speak to the exciting assortment and distribution expansion plans we have for our Prestige cosmetics portfolio. Next, our third pillar, skincare, where we are building our portfolio across both mass and Prestige divisions. In fact, we expect fiscal '23 will be the year where our skincare initiatives truly take off. As you may have seen this week, we had a number of exciting milestones in our journey to accelerate our skincare presence. On the Prestige side, I'm excited to announce that Orveda, the ultra-premium multi-awarded clean, vegan, microbiome-focused skincare brand, I co-founded with Nicolas Vu several years ago is entering the Coty portfolio. You will hear more about the brand later today. On the mass side, I'm equally excited about the launch of COVERGIRL skincare, beginning with 5 unique SKUs, which will hit shelves in North America this January as part of the cosmetic wall consistent with the leading trend today, which positions skincare as the first step of a consumer's beauty routine. And if you're walking through Times Square, you'll see the COVERGIRL skincare line on one of the main billboards. Adding in the upcoming launch of Kim Kardashian West skincare, which remains on track to launch by the end of this fiscal year, we have a portfolio of skincare brands that covers each and every consumer need and price point and importantly, covering key trends booming around the world, such as ultra-premium in China, celebrity-driven in the U.S. and ingredient-led skincare in mass. And our skincare portfolio has broad appeal across our regions with philosophy and Kylie and soon Kim Kardashian West and COVERGIRL strong in North America, Lancaster Kim Kardashian West, Kylie and Orveda strong in Europe and significant potential for Lancaster and Orveda across Asia. Importantly, we have strong innovation plans for each of these brands. Our goal is to grow our skincare business in a strong and of course, profitable way for many years to come. All this new growth in genes will be powered by our new digital capabilities, which is our fourth pillar. We continue to enhance our digital channels to get our customers to interact with our brands. We are actively investing in technology that will change the way we operate internally and with our consumers. In the last few years, we've been rapidly improving our digital and e-com fundamentals to bring us on par with our beauty peers. At the same time, we are laser-focused on bringing new, better and more differentiated technology-led capabilities to Coty. Our goal is to approach technology with a forward-thinking mindset. Jean-Denis will provide more details a little later, but our strategy centers on 3 key components of differentiation: first, creating innovative content and services through our partnership with Perfect Corp, which is a key differentiator in terms of endless innovation and cost. Second, we are leading social commerce and live streaming. And third, we are the only company at this level, operating 2 next-gen DTC brands with a unique know-how. Our fifth pillar is where we will propel our long-term growth opportunity, by building and strengthening our position in China with a special focus on Hainan. Even though Coty's exposure to China is still small, it's important to note but we have already begun to make strong strides with our sales in China growing by double digits in fiscal '21. The business has expanded from less than 3% of sales in fiscal '19 to over 4% in fiscal '21, and our goal remains to boost China to over 10% of our sales by fiscal '25. Guilhem and Caroline will provide more details about China and travel retail later on in the presentation. Sustainability. The sixth pillars of our long-term strategy is not just a check-the-box item for us. It is our ultimate driver of innovation. In 2020, we launched our Beauty that Lasts strategy, guided by the UN Sustainable Development Goals, setting out our plan to drive positive innovation across the beauty industry. There are 3 focus areas for our sustainability strategy, the beauty of our products, the beauty of our planet and of course, the beauty of our people. We know that clean beauty is a key driver of the beauty industry growth around the world. In fact, 1/3 of all beauty launch in the U.S. and a 1/4 of beauty launches in Europe included clean, vegan and natural claims last year, and the proportion is only growing. At Coty, we are leading the industry in the introduction of clean, vegan and cruelty-free products as well as working on ways to make our packaging more sustainable. At Coty, we aim to be a leader in clean makeup, in clean skincare, in clean body care and clean fragrances. You can see the broad range of products we have launched under this umbrella, whether, again, it's COVERGIRL; Lash Blast Clean Mascara; Rimmel; new line, Kind & Free; Kylie's relaunched makeup line; and Sally Hansen Good.Kind.Pure on the cosmetic side; or Chloe Signature Naturelle; CK Everyone; Good.Kind.Pure fragrances and Nautica Oceans on the fragrance side, all without compromising on the product efficacy. In addition to the leadership position we are taking in the industry in terms of clean and vegan launches across our portfolio, we have also set sustainability-minded product targets. We aim to purchase 100% mass balance certified palm oil for our production sites in the coming years. We are already in the process of setting specific reformulation road maps for each product category. On the beauty of our planet, we are leading the industry in up-cycling carbon emissions to create ethanol for our fragrances driven by our announced partnership with LanzaTech. We expect to launch the first fragrances with sustainable carbon captured ethanol soon. Importantly, following the Wella divestiture, we have spent the past year completing an in-depth environmental footprint study. Following this substantial endeavor, we will be setting an ambitious environmental target in line with the latest science and climate scenarios in the coming months. At the same time, we have a number of specific environmental targets by 2030. First, to switch 100% to renewable electricity across all sites. In fact, our own factories and warehouses already use 100% renewable electricity. Second, to send 0 waste to landfill. And finally, to recycle 80% of waste generated by our factories and distribution. On the beauty of our people, we are moving at a fast pace to make real progress across diversity, equity and inclusion. We are on track to meet our ambitious target to pay equity -- equitably, sorry, for similar roles and performance regardless of gender by 2022. We have updated the charter of our Board Remuneration and Nomination Committee to include DNI criteria. We launched employee resource groups to drive action by associates and for associates. We operate under responsible marketing principles, knowing our brands play an important role in reflecting diversity through an inclusive expression of beauty. We are proud that the majority of our EC is female and with our Board of Directors, 50% female. Going forward, we believe diversity equity and inclusion will be the most important driver when it comes to recruiting the next generation of world-class talent. Our ultimate goal is to grow faster than the global beauty market with together -- which, together with our transformation plans, will drive our earnings power. The beauty market has been consistently growing at 3% to 5% rate, and we expect to overperform this as we target a 6% to 8% revenue CAGR between fiscal '22 and fiscal '25 and beyond supported by high single-digit growth in Prestige and low to mid-single-digit growth in Consumer Beauty. Laurent will provide more context around our long-term financial goals later in the presentation. To conclude, the outlook is bright for Coty. First, we have a clear framework and numerous initiatives underway that are transforming the company from repositioning and stabilizing parts of the portfolio to igniting the full potential of key brand through expanded assortment but also reach to how we manage our cost structure. Second, we have outstanding growth opportunities ahead, leveraging our beautiful brand portfolio, which will allow the company to grow ahead of the beauty market in the coming years. Third, by executing our transformation and growth initiatives, we will grow our earnings and cash flow along the way, creating significant value for our shareholders as well as for our customers and, of course, employees. Importantly, the path is now quite clear, and we are changing rapidly as we anticipate future trends. We will makeover the beauty world together. I will now pause and pass it to my team to walk you through our detailed plans. So Gordon, please go ahead. Thank you very much for your attention.

Great. Thank you very much, Sue, for the introduction, and welcome, everybody. Good morning, everyone. My name is Gordon Von Bretten, and I'm the Chief Transformation Officer at Coty. I've been with the company now about 1.5 years, and I joined at the height of the pandemic. So exciting times for Coty. I've come from KKR, where I was an operating partner previously and worked on very large-scale transformations, many challenging and difficult situations. So what we're doing here is nothing strange to me, really. I wanted to spend the next 20 minutes or so discussing the transformational journey that we're all embarking on together as Coty, and it's quite an exciting one. So let's go to -- so this is the slide I should have used. Let's talk a little bit about All-In to Win and what it means. All-In to Win is the name we've given this transformational program. And I always like to point out that All-In to Win is not a cost reduction program at all. It really is the end-to-end transformation of the company, so it includes cost, cash, growth and strategy. And all of these initiatives that we're launching are under the umbrella of All-in to Win. So this is an important thing to mention. So as a result, we've also -- we wanted to give you some granular examples of what we're doing specifically. You'll see the presentation in certain elements is quite detailed, but hopefully, we'll give you a good flavor of what we're working on. Let's talk a bit about the overview of All-in to Win and how the program is structured. And before we do that, just one comment. And many of you know this, of course. Transformation is probably 80% about execution and 20% about planning. So to create this kind of overview or something a consultant can do in 15 minutes, but that's not what it's all about. The plan is 20%, the execution is 80%. And that's where most businesses fail. And that's where, I think, we are on an excellent path to reach on the results and the goals we've set for ourselves. So let me step through the different work streams of the different levers that we're employing here. The first one is a lever that we launched right when the pandemic was at its height and the company wasn't doing particularly well. Retail was closed. Travel retail was closed, so we were really struggling. And we call it funding the journey, and it was really focusing our overhead costs. So we really attack SG&A in a very strong way. We looked at people costs. We looked at all elements of nonpeople costs to free up money to reinvest in the business and to fund the transformation. The second stream we launched then is the gross margin attack program. And this one really focuses on both the commercial side, so pricing very much, but also trade investment as well as the COGS side, so material cost and supply chain efficiency. The third stream we're looking at is called delivering sustainable profitable growth. Sue has mentioned the 6 strategic pillars we're focusing on. And All-in to Win under the umbrella is helping to execute against those strategic pillars. Number four is what we've called Cash Olympics. It's a little bit of an internal competition who can free up the most cash. But the objective here, of course, is to generate free cash flow that we can then used to deleverage the business, which is a core objective of the program. And lastly, and Sue has just spoken about it, there's a stream here, which we've called accelerate culture and ESG. It's all about sustainability, diversity, inclusion and so on. So why are we doing all of those things? You can see here this box with the key outcomes. First of all, we're trying to invest more money into A&CP because -- advertising and consumer promotion, because A&CP drives further growth, further revenues and it's a self-fulfilling prophecy. The second is to increase profitability for the business and for our shareholders, clearly. The third is to be able to invest into growth projects. I'm going to talk about that in a few slides down the road. And lastly, as I mentioned, to reduce our or debt burden. Let's start with the cost element of things, and this page really demonstrates or talks about the $600 million target we've widely communicated. And initially, the $600 million cost reduction target was spread across 3 different years, fiscal year '21, '22, '23, pretty much evenly. And as we have published already in fiscal year '21, we've delivered over $330 million versus the $200 million target we had set for ourselves, which is really strong results. We overdelivered by quite a bit. For fiscal year '22, we've set ourselves a target of $90 million. Now that looks quite a bit smaller, but please keep in mind, these are net savings. So this is P&L relevant reductions. The gross savings we need to deliver to get to the $90 million is north of $200 million. So what's the difference between growth and net and you see it on the right-hand side, 3 major areas. We're investing in our strategic pillars. So basically, we've approved 200 new positions to be created to support the strategic pillars, including skincare, digital, China expansion, luxury makeup and so on. So that's already netted off that number. The second factor is material cost inflation. You've heard of headwinds. I have a page on that. So I'm not going to go into detail here. And the third one is we brought back bonuses. In fiscal year '21, there were no bonuses. In fiscal year '22 to remain competitive as an employer, we've brought back bonuses, and that's already netted out of this number. Fiscal year '23, we're expecting $170 million, and that would bring us to the full $600 million despite some of the headwinds I've just mentioned. And then I'm happy to announce today that for fiscal year '24 we're heavily planning already on what's next, and we're committing to an incremental $75 million in cost reductions. That's on top of the $600 million, okay? Good. Let's go to this one here. Fiscal year '21, I just wanted to give you a flavor for where did the savings that we've already banked come from. And you see the $330 million broken out on the left-hand side here, and you see what the key drivers were. So 60% roughly came from fixed costs because that's how we started the program. 26%, if you add it up between COGS and trade investments. So these are both elements that are gross margin relevant, and that's where you would find them in the P&L. And 14% were structural A&CP. So not spending less that we didn't count in here. It's really improvements in how we buy and more efficient use of A&CP, okay? And then on the right-hand side, some examples that we wanted to just highlight what we've done. On the people cost side, I mentioned overhead and SG&A. We've reduced SG&A headcount by 17% between fiscal year '20 and '21. So quite a strong result in a short period of time. For fiscal year '22, we are planning further reductions. Most of them are in the works already, but we're also creating these 200 new positions to fuel growth. So just to give you a feeling, we're not starving the business, we're reinvesting into the business. On the nonpeople overhead side, so basically all external spending, we've looked at every single bucket and taken a very sharp view to that. One example only is temporary staff, which was reduced by 33%. Next example is real estate. So when we started the program, we took stock of what's our office footprint and we found that it was much too large for the company that Coty is today. And we started to sublease or give back floors and buildings and so on. And we did that in London, in New York, in Geneva, in Paris and in Amsterdam. Some of it is still in implementation. And ultimately, that would deliver $25 million in annual savings, which is a really strong result. And lastly, outsourcing, you may have heard us speak about that already. We had some internal shared service centers previously, which we've transitioned to a third party. And we're also identifying certain overhead functions that are located in markets to become part of that same outsourcing scenario. So really going for efficiency. The second element of the plan is gross margin. attack, we've called it. And many of you know, I mean, you analyze our company, and you know where we stand relative to peers. Our gross margin has already been in the -- sorry, consistently been in the past around 60%, whereas some of our peers are 70-plus percent. So clearly, there's discrepancy, to some degree, we're structurally different. So some is explainable, but some of it is execution-related. And so the target we've set for ourselves by fiscal year '25 is to bring that into the mid-60s. And you may have seen in Q1, we were already at 63-plus percent. So we feel we're well on our way to getting to that level by fiscal year '25. So let's go through the different buckets. There are 4 major elements of the gross margin attack. The first one is the commercial piece, where we're focusing on pricing, trade investment but also value distribution reduction. We've talked about that previously, which will allow us to price in different ways. And lastly, reducing the amount of excess and obsolescence that we have in the company. So basically, product that has to be written off because it didn't sell. There's a supply chain piece here, building efficiency and manufacturing, in distribution and in planning, and we're well on our way to implementing the necessary steps here. There's a material cost piece, which is challenging right now. We're going to talk about headwinds in a minute, but we're working on strategic sourcing, working with our supply base, but also very much focusing on material value analysis and platforming our products, which is part of the portfolio stream, which is the fourth piece portfolio attack. And again, I have a page on that, so I'm not going to go into detail here. I wanted to give you a few examples of what we're doing on the gross margin side. And the first one here is on our consolidation of our fragrance manufacturing footprint. And before I do that though, I spend a lot of my time really at our facility. So I've seen most of them now. I've seen some distribution centers and so on. And I'm really impressed by the work that's being done by the team on continuous improvement making sure service levels are high, quality defects are low and so on. So there's a lot going on. And every year, we're posting additional benefits from this continuous improvement work that's being done in the facilities. But specifically, on fragrances, we had previously 3 different fragrance locations where we made fragrances. There was Germany, France and Spain, and all 3 of them were heavily underutilized. So we made the tough decision to close one of them, which was the German facility, and to move the volume into France and into Spain, which is well underway. So the lines are being set up as we speak and so on. The 2 facilities are really state-of-the-art. I was super impressed by the Spanish facility I've seen. So it's really incredible what they've done there, very clearly laid out, very efficient with a great team on site. And the impact you see just 2 metrics here. Capacity utilization will go up by 20 percentage points for the footprint going forward. Unit cost goes down by 13%. So it's exactly the kind of thing we want to do to reduce the overhead that's being absorbed by the units being produced. Last point, maybe just to mention, there's lots of room for expansion still, so we're not limiting ourselves by having done this move. Portfolio optimization. That was the fourth box on the gross margin at tax stream. So there are 3 major pillars. I'm just going to rush through them in the interest of time. The first one is our SKU rationalization program. When we first started, this is really 18 months ago, and did an analysis, we found that the bottom 35% of SKUs, this is in color cosmetics, accounted for only 3% of net sales. And apparently, that is, in fact, that was known for many, many years, but people were afraid to make the decision to discontinue these SKUs. And we decided very quickly to basically say, let's stop producing them, and let's pull them off the shelf, which is happening pretty much as we speak. And the impact to revenue is actually positive because when you think about it, of course, we're not going to leave those slots empty, we're replacing them with more profitable SKUs, and they're driving sales, they're turning with the SKUs were discontinuing were not turning. So it's really -- it's a no-brainer, in a way. The second stream here is called platforming. We've mentioned that before, I think, in previous discussions. And really, we're trying to reduce the packaging types and to something we maybe future on also some of the chassis that are underlying our products. In the past, every brand, specifically also on Consumer Beauty, where we have multiple brands that do the same thing in different regions, everybody was designing their own portfolio of products, of packaging types and so on. And we've greatly reduced, you see here the example of the number of tubes being used in foundations, the number of caps, all those types of things to drive efficiency and sourcing, in inventory holding and also in manufacturing. And the third element to mention here is assortment management. So we've taken a look at the planograms of our major retailers and looked at what's moving and what's not, you think this would be day-to-day work that should be done, but it wasn't done consistently. We found that many planograms had items that just didn't sell or didn't have a sufficient gross margin or both in the worst case. And we've decided to pull those off and replace them with other items from our global catalog. Our global catalog is large enough to fill every fixture twice. So it's not like we needed to introduce new innovation. We just needed to pick items that were higher performing. And of course, going forward, there's also accretive innovation, new products coming online with better gross margin. And over time, that will automatically raise our gross margin level. Headwinds. I mean this is a very current topic. And many of you will have read that most industries are being hit with increases in freight, but also in the raw materials and components that they buy. So we wanted to speak about that specifically. And you see on the left-hand side, we've listed the different materials we purchased, including freight. And we've calculated what is the impact we're facing for the year. When we did the budget at the beginning of the year, we were expecting about $30 million in headwinds which when you think about the size of business, we are -- it's really not that much. And it shows you the relative level of material cost versus our overall value chain. So $30 million going in. And we had very much included that into All-in to Wind and specifically wanted to offset by strategic sourcing initiatives and by material value analysis and platforming, which I just mentioned. We know where we stand today. The herd is going to be more like $60 million. So it's $30 million more than initially anticipated. And what we've done is to step up our pricing performance. And you will see there are additional pricing increases that we're driving across the portfolio and across the countries that will more than offset that additional hurt. So bad news is there are headwinds, but the good news is it's very much under control. Let's switch to growth a little bit. On the left-hand side, you see the 6 strategic pillars that Sue has gone through, so I don't need to rehash them. I just wanted to talk a little bit about how we execute against those growth pillars. And normally, what I've seen in the past as well as when there's a growth objective, the growth target is handed to the head of the sales organization or the commercial organization said, "This is your new target, go get it, good luck." And sometimes that works, and sometimes that doesn't we decided let's do it in a different way here. Let's really put an execution engine behind these growth pillars. And for most of these topics, you see on the left-hand side, we formed a cross-functional team. So there's an executive sponsor and there's a full-time project manager. There's a full cross-functional team, which really includes from procurement to finance to HR to IT to of course, sales and marketing, and they collaboratively will deliver and accelerate where we want to get to. There's a drumbeat behind with steering committee meetings, working team meetings and so on. And we really think that this is the turbocharger behind the growth engines, if you will. And on the right-hand side, you just see a few examples. So there's a China powerhouse team we've called it with a sub team on Hainan. We have a skincare task force that has sampling as one subcomponent and Orveda integration, which is new news today. There's a [ dark ] powerhouse team, so basically wanting to improve our business performance in Germany, Austria, Switzerland and so on, these are just some examples that we wanted to mention. As the last stream, let's talk about Cash Olympics. Cash Olympics, again, is the program to free up cash and create free cash flow to deleverage the business. You can see on the left-hand side, these are the key streams we're focusing on. And it's the typical stuff, so nothing surprising. You focus on inventory on receivables, on payables, what you normally do to manage cash. And on the right-hand side, some specific examples. The one here in red is our real estate program. So we've gone through our portfolio and taking a look and took stock, what assets do we have that are core to the business and what assets do we have that are really noncore to the business. And we've decided to divest some of these noncore real estate holdings. The size of the price is over $150 million, and a lot of that is already in the bank or fully in implementation. And the second example here on the very right-hand side is our VAR program. VAR stands at value at risk. And value at risk is basically inventory that is slipping into a position because it's not turning that it might have to be written off. And of course, we want to avoid that at all costs for economical reasons, but also for environmental reasons. And so what we've done, we've really stepped up our performance in planning. We used to have a monthly centrally-driven planning cycle. And now we've gone to a new model, which is weekly planning between the markets and centrally. So -- and you can imagine if you're that flexible, if you bring in market perspective, plus you do it on a weekly basis, your planning becomes much better and that's what we've seen. So therefore, we're reducing these bar numbers. And secondly, we have an active program now to promote and sell off items that might slip into VAR before that happens and to really market them much more proactively. So what are the key takeaways? The first key takeaway here is we think we've built a really strong execution engine for the transformation. So there's quite a structure in place we need all the time. We work cross-functionally, we're monitoring everything we do centrally and making sure whenever we get off track, we notice that very, very quickly. So that is one of the key success factors for making this transformation happen. The second thing is that we are fully on track to deliver the $600 million we have committed to all of you, and almost $400 million of those are in the bank. So over $330 million in the first year and already $60 million since the beginning of this year. And we've raised the number now to $675 million, including fiscal year '24. So there's more to come, which is also good news. On gross margin attack, we have this program. I've described a little bit what we're doing there. Q1 is already looking promising, but the target is this mid-60s number by fiscal year '25. And with all the levers you've seen, we are very confident that we're going to get there. The fourth key point to take home is we're back to growth. Like-for-like growth in Q1, so it was plus 21%. So really quite a strong showing. And that is across Prestige, but also across Consumer Beauty, and we think there's more to come on that front across the 6 strategic pillars. And the last point to mention is cash. Of course, I just mentioned that before. The goal is to leave or finish this calendar year with a leverage ratio of 5x. Laurent is going to speak about it in more detail after. And the ultimate goal for us is a leverage of around or even below 2x. So we're quite ambitious as to where we want to -- where we want leverage to go. I'd like to leave you with this slide, which I used many times in internal presentations. And I tell our associates often that the key to success is firmly in our hands. We have exactly what it takes. We have a plan, we have the brands, we have the people, we have the global reach to make this happen. So now what we need to do is execute. And we need to execute with diligence, with passion, with enthusiasm, with accountability, and I really feel the initial results that we're seeing are indicating that we're well on our way to getting that done. And with that, I would say we're making corporate history here. So in my mind, it would be great 5 years down the road, if there was a Harvard business case that would say, well, look at this company that was very, very challenged and people were doubting whether it's viable. And 5 years down the road, look where we are. It's a company that's high performing, that's an innovator, it's a trendsetter. It's really a global beauty powerhouse, and we're all working very hard to make that happen. So that's it for my piece. Thank you for the time. Much appreciate it, and I look forward to the Q&A session after. Thank you.

Good morning. So I'm Alexis Vaganay, the Chief Commercial Officer of Consumer Beauty, with 25 years' experience in personal care and beauty. I've been at Coty for 5 years, previously as the Executive Vice President of Europe, Middle East and Africa on both Consumer and Prestige.

And I'm Stefano Curti, I'm the Chief Brands Officer of Coty Consumer Beauty. I've been in the beauty and personal care industry for over 25 years, spent over 10 countries and then globally.

So Stefano and I have both been in our respective roles exactly for a year this month. And we are excited to share with you the recent stabilization and growth of Coty's consumer business. So the mass beauty market is large and very resilient despite the changes presented by the global pandemic. The overall beauty market is worth $183 billion, and it's now back to growth even when compared to the pre panning market in 2019. Skincare, fragrances and personal care segments are growing the fastest, while makeup has now fully recovered back to prepandemic levels. And here, I want to recognize when sizing the mass beauty market the limitations of Nielsen data, as it doesn't cover growing channels like Brick, and Click, Amazon and Ulta, among others, in this country. So the Consumer Beauty has started to stabilize since March 2021 after 6 challenging years for Coty. And it's starting to post growth in market share and revenues. How did we do that? Well, first, we have been very intentional in focusing on the top 5 brands, COVERGIRL, Rimmel, Sally Hansen, adidas, Max Factor, which account for 70% of our revenues and nearly 90% of our media and promotional investments. Over the past 6 months, we've also repositioned COVERGIRL, Rimmel and Max Factor. And we are about to release the new brand positioning and equity on adidas and Bourjois. You probably know that in Brazil, we have a very powerful portfolio of local brands, which account for 10% of the Consumer Beauty business, and the sell-out keeps growing. We've seen very nice e-commerce acceleration, and we have managed to achieve a stable to positive distribution, thanks to aligned plans with our key retail partners. So let me now share with you a few highlights on those last 2 points. First, on top of our -- one of our top priorities when we took over the reins of the division with Stefano, was to ring fence or grow our physical distribution. And this after a very challenging 2019 year on that front. So we shared on the line on the brand, we launched plans with our key retail partners, which allowed us to successfully whole distribution and sometimes gain on some brands. This is the new display of Rimmel in the U.K., where we succeed to hold a full national distribution. It's maxed out there. On that slide, you see a Max Factor will there in the U.K., featuring our new brand ambassador, Priyanka Chopra Jonas, which allowed us once again to hold distribution. Next up is Sally Hansen, where we achieved to grow distribution from 45% in the U.S. -- in the U.S. pharmacy, sorry, specifically, to 135% in the U.K. High Street. In the nail category, highly driven by import purchase, this newly lead merchandising wall is driving a nice sales of fleet as well. Now on to COVERGIRL in the U.S., we've managed to solidify our physical distribution by growing 7% in pharmacy. And you've heard Sue and Laurent mentioning in the earnings call in Q1 that we managed to specifically gain in CVS. And at the end of this meeting, you will have a chance to see this magnificent roll in the showroom, which is once again putting a nice sales upfit. Now onto e-commerce. We also accelerated there during the pandemic and has maintained -- we've maintained a growth momentum after all the peak of the pandemic. And this demonstrates the relevance of our brands in an omnichannel environment. Coty Consumer Beauty e-commerce contributed to 40% of the total growth in Q1, and it grew its penetration by 2.3 points versus fiscal '20. Both e-retail and pre players accelerated in Q1 by 27%, thanks to new distribution but we expect to land some additional distribution in Consumer Beauty, either through new retailer listings or through brand and market expansions. At Coty Consumer Beauty, we strive to become a leader in sustainability. As presented by Sue, we are committed to our Beauty that Lasts platform through the beauty of our products, the beauty of our planet and the beauty of people. Some of our Consumer Beauty brands are pioneering some of the latest clean and sustainable innovations, which is recognized by both our consumers and our retailers. Coty is definitely leading in clean innovation, for instance. We formulate our new products following a strict clean ingredient policy. As such, we have banned a long list of ingredients, which we keep updating regularly. And our products are also vegan, and they're never tested on animals. And we strive to formulate with a minimum amount of ingredients to deliver the purest formulas. As a result, our clean products really work with no compromise. Coty is also leading the sustainable innovation agenda. And these are our latest mass fragrance innovations, which are all alcohol-free and utilize a water-based formula [indiscernible] state, they're made of recycled or recyclable materials, they're made of clean ingredients only that are vegan and cruelty-free.

Thank you. Since we took over the Consumer Beauty division in late 2020, we've been busy assessing our portfolio of mass equities. And we are proud to say now that we have a clarified view of our portfolio.with each of our brands playing a key role versus an identified key competitor. We have moved, as you can see, a lagging speed to reposition our brands, starting with COVERGIRL in February '21, the brand that gives you the uplift in power of beauty. We have then progressed with Rimmel in July and Max Factor in August, both across Europe. And in 2022, we will be launching adidas to make it the leader in Active Beauty, while Sally Hansen has always enjoyed a very strong unique distinct brand positioning. A major focus has been the turnaround of our assets, of our campaigns, of our advertising. And we have started by rejuvenating each of our equities. This has allowed us to achieve stronger assets that have a higher return of our media investment. We follow very disciplined steps to measure 3 key performance indicators in our advertising campaigns. The first one is the overall impact of advertising, which represents the ability of the advertising to cut through the media Clara. The second one is the ability for the consumer to remember the product and the brand. And the third one is, finally, the ability to change consumer behavior. So it's the call to action. Ultimately, what we want to hear is that a consumer would say, I'll definitely buy your product. Now in this slide, yes, just visually, you can see the turnaround of all these 3 key performance indicators from the advertising developed prior to the year 2021, which is the one on the top to the one developed since February 2021, which is the one at the bottom. And as you can just see visually, we moved from a sea of yellow and reds to all green indicators. We will now cover an update on the growth strategy of our top brands, and we will start with COVERGIRL. Our test strategy for COVERGIRL has been to focus on the top lines. actually on the top 8 lines, which we call magnificent 8. The magnificent 8 account for 70% of our business. They also represented the strongest tie with the brand equity of COVERGIRL, and they have the highest return on the investment. And today, as a proof of our focused strategy, the magnificent 8 are growing 50% faster than the category, and they are driving overall growth for the overall brand. Another priority has been the one to rejuvenate the brand equity of COVERGIRL. COVERGIRL is already a beloved brand in the United States. In fact, as you can see here on the left, the Brand Power Index in 2019 has ranked COVERGIRL as the #1 brand in color cosmetics with a very significant difference versus its closest competitor. COVERGIRL has the highest spontaneous awareness, the highest consumer top of mind and the strongest affinity with U.S. consumers. COVERGIRL is renowned for its tag line, Easy, Breezy, Beautiful, and it's always associated with clean, healthy beauty products, and with a genuine authentic tone of voice, which we have brought back to the brand. As a result of the pandemic, beauty consumers behavior has seen a return to trusted brand and to clean sustainable ingredients usually associated with niche brands that are attracting new Gen Z. I want to show you now the first example of the new brand equity, which we have brought to life starting in February 21 and starting with Lash Blast Clean Mascara. [Presentation]

So the campaign that you've seen, it just went viral. And then that has encouraged us to repeat the successful recipe to other franchises. And we've studied with Simply Ageless, which is today the #1 antiaging foundation in mass market in America. Please enjoy the film. [Presentation]

You must have recognized Niki Taylor. We'll go back to her in just a moment. This new TV campaign has part a strong organic influencer reaction. Here is an example for Clean Fresh skin milk on the left, which generated over 9 million views and 1.7 million likes. The organic endorsement was then amplified by multiple channels. And on the right, you will see how this clean positioning of COVERGIRL has enabled the brand to become the preferred partner for key e-retailers like cbs.com and target.com to help them recruit the health-oriented beauty consumers, which often are towards the Gen Z generation. And on Amazon, finally, at the bottom there, COVERGIRL has registered an outstanding growth of 45%, growing faster than the category online. Our growth strategies, as you know, have resulted in the turnaround of COVERGIRL market share. After years of share decline, COVERGIRL has started gaining share again since March '21 when the first campaign under the rejuvenated brand equity started. And now we have been growing for 20 weeks out of the last 30. Let's go back to the Niki Taylor and our talent roster. COVERGIRL talent ambassador have expanded over time in the last few months in order to appeal and speak to the different demographic profiles. We partnered initially with Lili Reinhart that is the star actress at Riverdale, and she's been our ambassador to launch Clean Fresh Foundation and Lash Blast Clean Mascara. We then have brought back Niki Taylor. So Niki was the first ambassador, if you can remember, of COVERGIRL clean foundation back in 1998. And today, Niki is the way -- is the voice and the face of Simply Ageless, the #1 antiaging foundation in America, as I said. And the first product actually historically, they merged color cosmetic with skincare. So what's next? Well, the Hispanic community is at the core of COVERGIRL consumers. That's why today, we are announcing our new cover girll, and that's America Ferrera. America will be the ambassador of our skincare expansion in January '22. America, I'm sure you know, is the actress that played the role in Ugly Betty, now the young girl that goes through the struggles of aesthetics and beauty as she grows up in America. America is also a producer, a director and a winner of Emmy and Golden Globes Awards. The new campaign, which we have just shot really brings to life America's stories, America personal life story. And let's hear from America herself. [Presentation]

COVERGIRL, we believe, now has the right momentum in the strong credentials to expand in skincare. We are announcing this week, in fact, that the brand that will a dedicated skincare line, which will be on shelf in January '22, of which America Ferrera will be the main spokesperson. That's the line. It's COVERGIRL Clean Fresh skincare, which is the supercharged clean, big and in cruelty-free skincare that finally works. The first range includes 5 products, those ones on the slide, all developed to work perfectly in combination with COVERGIRL makeup to maximize the performance of our makeup. The line will be initially displayed on the makeup wall. So let's move to our next brand, and that is Sally Hansen. We are very proud of Sally Hansen which continues to be strong, both in the U.S. and more recently, globally. Sally Hansen has a very unique and winning positioning. Sally Hansen stands for salon quality results at home. It is trusted by consumers for its superior salon quality products and its affordability, making it the leader in nail color and care in the U.S. and very fast growing globally. The result is that in 2021, the brand is hitting record shares. The brand has posted its highest share since 2019 in the U.S., with market share just over 40%. Miracle Gel. Miracle Gel is a subrange of Sally Hansen. He's actually the inventor of the 2-step nail color in mass, has accelerated its growth now at plus 18% just in the last 3 months. And remember, we are comparing this growth to a pandemic year where the nail market boomed. The brand is also growing exponentially globally with major share gains in U.K., Australia, Italy, Spain, Canada and France. On to Remmil. Remmil is Coty Consumer Beauty's second-largest brand with a very strong footprint in Europe. Remmil. Remmil is the unapologetic brand. Remmil is the brand for the bold individualists. Remmil is the brand that offers a better beauty for all. Remmil is also at the forefront of inclusivity and sustainability. And today, Remmil is the undisputed market leader in the U.K. and has a very broad European presence with very strong recent share gains in countries like Australia, Netherlands, Czech Republic and Argentina. The brand relaunch started in July and is having already a positive impact across all markets. In fact, in just the last 2 months, the brand has stabilized and started growing. Remmil is now changing the face of beauty again by launching the new Kind & Free collection, which you can see on the slide. It's the first time in Europe that a leading trusted brand finally offers clean beauty that works. It's vegan. It's kind to animals and to the planet, and we don't accept compromise. And it's creating a new movement, a new movement that we call the blue beauty. And I want to share with you a representation on this new movement in a video. [Presentation]

Where clean works. On to the next brand, priority brand, Max Factor. Max Factor is also going through a journey of transformation. In fact, since August, Max Factor has stabilized or return to growth in over 75% of the geographies where we compete with the stronger share gains in the U.K., Netherlands, Poland, Spain and Russia. Here is Priyanka Chopra Jonas. Our new brand ambassador who has helped us lead this turnaround, this transformation since August. Let's watch her in the first commercial. [Presentation]

The brand transformation is happening across the whole shopper journey. We have, in fact, relaunched our new visual merchandising completely also featuring Priyanka. Max Factor is definitely back in the spot lighting across the European countries and once again, holds the prestigious spot in Piccadilly Circus in London in so many years.

Let's now move to our global power brand, adidas. Our mission at Coty is to turn adidas into the best active beauty brand in the world, taking advantage of its sports credential and doubling down on sustainability and inclusivity. Ultimately, adidas is meant to become a premium female beauty care brand. Our strategy is therefore fourfold. First, premiumize from toiletries to sustainable and inclusive beauty care; second, recruit female with active lifestyles and expand in geographies and in e-commerce further and better leverage the adidas mother brand ecosystem. adidas also belongs to a powerful mass fragrance portfolio, which has been rejuvenated to strengthen its leadership. Brands like [indiscernible], Nautica, David Beckham, are beacons of our industry. And as such, the positioning needs to constantly be fine-tuned to stay current and relevant. Take a look at the latest David Beckham commercial to illustrate the work that we've done in this area. [Presentation]

We are confident about our progress and initiatives, and we believe we can bring substantial value to Coty. For the first time in many, many years, Coty Consumer Beauty is finally closing the gap with the market and gaining share globally so that green box includes all of our categories across all the markets that we track. This is the litmus test of our ability to win externally. As a result, we can expect some very solid sales and profit growth in the coming years on Consumer Beauty. Like-for-like net revenues should grow high single digit this fiscal year. We plan revenues to grow in line with the market in color cosmetics and mass fragrances with skincare coming out on top, posting overall low to mid-single-digit growth through fiscal '25. Adjusted EBITDA should outpace top line sales growth in fiscal '22 and beyond. Adjusted EBITDA margins should expand in fiscal year '22 and grow by several percentage points in the years to come. To conclude, Stefano and I would like you to take away a few highlights from today's presentation. First, Consumer Beauty is back to growth with outlook for low to mid-single-digit sales growth through '25, driven by key brand relaunches in COVERGIRL, Remmil and Max Factor. Second, Consumer Beauty is a fantastic playground for innovation that can further leveraged by the rest of Coty's organization. We own the brands, and we can exert the Coty flare and know-how in full force. We are transforming our heritage brands into a relevant and powerful proposition of both trusted and niche propositions. And last, we're already seeing a very positive momentum with simultaneous market share gains, good sales and profit growth. We are grateful for your support. Thank you so much. And we will now hand it over to Isabelle, Constantin and Andrew to talk about Prestige.

Good morning, everybody. My name is Isabelle Bonfanti, and I am the Prestige, Chief Commercial Officer, 30 years of experience in luxury and cosmetic industry, and I'm extremely happy to be with you today. I would like also to introduce my colleagues, Constantin Sklavenitis, Chief Brand Officer; and Andrew Stanleick, EVP for North America; and CEO, Kylie Jenner beauty brands, will also be presenting later. Constantin?

Thank you, Isabelle. I'm delighted to be presenting with you today and with you, too, Andrew. Good morning, everyone. So my name is Constantin Sklavenitis. I recently joined Coty but I have 25 years of experience in the beauty Prestige industry at L'Oreal, Estee Lauder, but also working with Indie brands in skincare and makeup. Back to you, Isabelle.

Thanks. So let's now deep dive on our potential in fragrances, skincare and makeup. Consumers have shown a strong appetite for Prestige products. The industry has been constantly growing over the past few years. Growth in beauty has been driven mainly by 4 key forces that are the growing interest for Chinese consumers for beauty, the rise of e-commerce, the ongoing premiumization of beauty and the rise of care and clean with customers increasingly drawn towards well-being. In fact, Prestige was 43% of beauty market back in 2006, 45% in 2019, and we should reach 48% by 2025. Now if we look at Prestige industry by category, on the left, you see that skincare is 39% of the mix with a projected 3-year CAGR at 8%, followed by fragrance 35%, and makeup at 26%, both CAGR projecting a mid-single digits. Coty on the right has a huge potential for growth in skincare and makeup. But as you will see, we also have a huge potential in fragrances where we already are a global leader. We indeed plan to beat the market in each of this category, including fragrances. Now let's have a look at the fragrance landscape. Despite our #1 global ranking, we still see a strong potential of growth, especially in the biggest portion of the market, the female fragrances where we are #2 with only 14% of market share. Now our ambition is to become #1 in female fragrances. And in order to do so, we will anchor 2 female franchises in the top 15 worldwide markets. And the good news is that Flora, Gucci Flora, has the potential to do so. In male fragrances, we are #1 with 17% of market share. And we are confident that with our growing existing icons such as Gucci Guilty as well as our innovation, Burberry Hero, we will keep on increasing our market share. And lastly, we have a strong potential in a booming high-end segment, where we have only 0.5% market share. Now if you look at the regions, we hold strong position in the major 3 continents, and our biggest growth potential is in the U.S. and in China, where we are #2 and #3, respectively, in fragrances. In the U.S., customers have shown a great appetite for fragrance category. While in China, we see customers educating themselves on this category and they are especially drawn to the high-end segment of the market. In China, fragrances are becoming a luxury items. And we really believe ultra-premium fragrance will dominate the market in China. Finally, we have travel retail which was strongly impacted during COVID, but we are starting to see strong sign of recovery. We see Hainan as a great area of growth in travel retail and my colleague, Caroline, will provide you more details very shortly. Another reason to give us confidence in our future is our portfolio.

Which, Isabelle, is the most beautiful of the industry. We work with amazingly talent designers such as Alessandro Michele for Gucci, Ricardo Tisci for Burberry, Louise Trotter for Lacoste, Jess Lomax for Calvin Klein, of course, our own Marc Jacobs, but also Ingo Wilts for Hugo Boss and Gabriela Hearst for Chloe, to name just a few. Our fashion houses are stronger than ever, and the good news is that we have amazing relationship with our licensors, and we have long-term contracts with all of them. Our portfolio also has the best-known brand in the industry. So what you see on the screen is a third-party research that shows around 90% consumer awareness for Calvin Klein, Gucci, Boss Lacoste, well above our competitors. And our portfolio covers all price points from the most exclusive to the most premium brands. Isabelle?

To win, our first strategy is to focus on a few fashion-driven brands that can become global powerhouse with multi-category potential that resonates in key focus markets like China. Today, 6 brands, we presented 80% of our Coty net revenue. We currently have one global brand, which is Gucci. And our first strategic priority is to grow our brands and globalize our regional heroes. And in fact, we already have strong regional heroes, Calvin Klein and Marc Jacobs in the U.S., HUGO BOSS and Chloé in Europe and Burberry in China. And we really do believe all these brands have a strong potential to also succeed as global brands. Another way to strategize our global winners is that we are doubling down on our efforts to win with our successful innovations, including Flora Gorgeous Gardenia from Gucci and Hero from Burberry, respectively, today, top 10 and -- top 10 to top 20 across 3 continents at key retailers.

Thank you, Isabelle. Let's watch a few ads. First, I want to show you Perfect by Marc Jacobs. Launched in July 2020, it is the biggest launch in the U.S. in the past 3 years. The product and communication strategy was crafted to cater to the Gen Z in this new post-COVID world with a digital-first mindset, top-notch fragrance within an Instagrammable packaging, as you can see, a new positive definition of beauty. Perfect as I am, diverse, inclusive. The ad campaign is a collection of several personalities with their own force and singularity, like Lila Moss, daughter of Kate Moss and talent being selected via an Instagram contest. The whole new approach for a whole new generation. [Presentation]

Perfect, perfect, perfect. You are all perfect as you are. And Isabelle, Andrew, I'm perfect as I am, too, right?

Yes, sure. No-brainer.

Thank you, thank you. Look at this wonderful billboard in London. Now to the second fragrance. Burberry Hero launched in August '21. Hero conveys an empowering message of self-acceptance, hearing all the singularities that can make us extraordinary. A new definition of what it means to be a hero today beyond stereotypes echoed by the singular aura of Adam Driver. [Presentation]

And look at this Hero podium in Beijing APM. Last but not least, our new Gucci Flora, embodied by A-list Miley Cyrus. Disruptive, surprising, magical, Flora is a female star launch of the year 2021. With a never-seen-before communication of Flora Fantasy inspired by Japanese anime and winning -- a winning fragrance build around delicious Gardenia Straights on trends. [Presentation]

And another striking podium in IFS, Chengdu.

Now let's dig into the high-end niche fragrances business. It's booming everywhere. It is an answer to the consumer appetite for exclusive fragrance with the highest-quality ingredients that's providing more value for the consumer and the brand. Today, Coty is well armed for success. We have exclusive collections in several of our brands like Gucci Alchemists Garden, a precious collection of eau de parfum, floral waters and perfumed oil. Or Atelier des Fleurs from Chloé, a collection of 12 fragrances, each of them craft around a unique flower. Atelier des Fleurs has been a huge success, especially in Asia, and we plan a rollout in the next years with a strong focus in China. Now let's watch the Video. [Presentation]

And here, you see a boutique display of Atelier des Fleurs just opened this week in Beijing Joy City. So Constantin, why are we winning? And why do you believe we will continue to win in fragrances?

It's a very good question, Isabelle. Thank you for asking. You saw we have great brands and products, but we also have a secret, a competitive edge in 3 areas. First, we created an internal olfactive cell. What is that? It's a team of fragrance specialists working hand in hand with the best fragrance houses, briefing them, evaluating the potential of the juices with internal test protocols. They also work on the future of active trends to build the future top 10 fragrances of this world. The second, we arguably have the best research and development fragrance team in the industry. Over time, our labs have crafted patents to make our fragrance last longer, improving the performance of essential oils. Lastly, we're creating partnership with external vendors such as LanzaTech which has been able to transform carbon emissions into high-purity, sustainable ethanol, usable in fragrances. This expertise allow us to launch fragrances like Chloé Naturelle that you see on the screen, a true breakthrough, an entirely natural vegan fragrance lasting over time, with 100% natural alcohol. And with this, we wrap up our fragrance section. Now if you don't mind, let's look at the market potential for skincare. And here Coty is building a complete skin care portfolio to cover all major and future beauty trends. In the green clinical side, which is booming right now, we have an amazing brand with philosophy. philosophy will be revamped by focusing on the founding story of the brand and its unique derm expertise. On the derm-led and cutting-edge ingredients segment of the market, we're preparing to launch a skincare line by Kim Kardashian West. In a few minutes, my friend, Andrew will provide more details on that. Another growing trend is regenerative science, the self-healing power of your skin. Well, in fact, we own the founding brand in this domain, our Sleeping Beauty, Lancaster. Lancaster already started to be revamped to win big, starting in Hainan in China. Focusing on Gen Zs, we have Kylie skincare competing with brands like Glossier. Finally, we have microbiome science, where our latest brand in the portfolio, Orveda, will compete with very high-end brand such as La Mer. And to build skin care, we can rely on our labs and their unique expertise. 75 years of research, scientific communications, breakthrough in fields like antioxidants, oxygen simulation or life protection and more than 50 active patents, a true powerhouse. And we're strengthening our R&D team with the arrival of Véronique Schwartz, SVP product development. You heard it from Sue, 26 years of experience in the beauty industry. And more to come with the arrival in January of our new Chief Scientific Officer, Dr. Shimei Fan, as you heard earlier. If we now look at our brands, let's start with Philosophy. Philosophy, 25 years ago, was one of the first indie brands. And still to date, it is the #8 skincare brand in this market in the U.S. But we got challenged by newcomers. So what we're doing now is preparing a brand repositioning, taking it back to its dermatological routes, reexplaining an amazing unique expertise that we have. It will be reinjected in our hero products, Purity and Hope in a Jar, and will create word-of-mouth with a very strong influencer campaign. Our goal is to turn around the brand and achieve double-digit growth and transform its lineup to make it 100% clean, vegan and cruelty-free by 2024. And now let's shift to Lancaster. [Presentation]

As you can see, Lancaster is a phenomenal brand with 75 years of research in regenerative science. In fact, this brand changed the market with several breakthrough, including the first patented retinol. But over time, the brand drifted towards the sun care brands. We want to retell our skincare story, the superiority that we have. And we will focus on 2 hero lines. First, we conducted blind tests in China for our 365 SKIN REPAIR Serum. And we found out that it was preferred over the #1 and preferred over the #2 serums of the market, which both represent around $200 million of retail each. And a new premium line that will be launched in 2023 was seen as breakthrough by 80% of Chinese women who tested it. Get ready with Lancaster. And at last, Orveda. Orveda is officially joining Coty. Orveda is our ultra-premium skin care brand made in France. Orveda combines the best of nature with cutting-edge dermatology and biotechnology that helps consumers achieve a healthy skin glow rivaling makeup. Orveda products are known for their exceptional quality and high concentration of proven actives that work with the skin rather than against it to produce clinical-level efficacy. Orveda Skin Care pioneered the microbiome and prebiotic science. And all products are vegan, sustainability-minded and genderless. This incredible brand has won multiple beauty awards and today completes a skincare portfolio in the very high-end segment with, of course, a huge potential in the Asian markets. And finally, Kylie is positioned to tackle the Gen-Z demographic. Again, Andrew will do a big show right after us. To wrap up this section, I hope you agree with me, fiscal year 2023 for Coty will be the year of skincare. We're strongly focused on Kim Kardashian West skincare, Kylie and Philosophy in the U.S. and on Lancaster and Orveda in China and Asia. Finally, let's talk Prestige makeup. If we look at the recent evolution of the market, there are 4 major segments that account for the vast majority. And there are 2 segments that grew strongly and continue to grow, which are couture brands and indie brands. Couture brands even represent half of the market in China. And there, again, Coty is well positioned with the brands to become a major player in these growing segments. In couture brands, we have Gucci makeup. Gucci is the only couture brand that combines high-end fashion appeal with playfulness to unleash the enchanting power of makeup. Gucci makeup has global reach and is already sitting in the top 5 rankings in key retailers. The brand is bringing the best of both worlds, the vibrancy, playfulness of indie brands with the aura of luxury and refinements of brands like Chanel. Here's an example of beautiful installation in the U.K. The other couture brand that we bet on is Burberry, a timeless iconic brand that can reinvent tradition by integrating outstanding innovation and leveraging technology and long-wear expertise. Its brand mission is to hero all beauties with an armor of extraordinary to explore the world with confidence. Another amazing display at Beijing APM store. Isabelle?

The good news -- the good things about makeup is that, in the past, makeup was extremely costly with a lot of CapEx in numerous countries. But now in the new business model, fewer counters and high-weighted online distribution boost the overall productivity. Indeed, relevant content trigger the consumer conversion. And here, Coty is extremely lucky. Because on one side, we have very creative fashion house content. And on the other side, socially-driven indie brands. And talking about indie brands, let's pass it over to Andrew to discuss Kylie and team. Please, Andrew, the floor is yours.

Thank you, Isabelle. Well, good morning, everyone, and thanks for joining us this morning. I'm Andrew Stanleick. I'm the Executive Vice President of North America, and I have the great privilege to lead the U.S. business. I'm also the Global CEO of Kylie Jenner Beauty, and I oversee within Coty Kim Kardashian West beauty brand. I have over 25 years of experience in beauty. I garnered over 8 countries, 4 continents, including 7 years in Asia. And I'm so very happy to be with you all this morning to share the phenomenal power we're building in our partnership with Kylie. So in our next few minutes together, I will walk you through the origin of the brand and the momentum we're gaining with it. We'll talk through the progress we've had 2 years into our partnership and then wrap up with a shared vision of our growth opportunity for this brand. But firstly, how did it start? I think most of you probably generally know how the brand started. It started with the lip kit. But what's more interesting is the insight behind that transformational kit. It was a personal lip insecurity that Kylie had that led to a truly breakthrough product for the category. She made an all-in-one lip kit with a matching liner and liquid lipstick to define, line and fill her lips. That first launch back in 2015 was just 3 shades and 45,000 units. It's sold out in minutes. And the rest -- well, the rest is just history. So Kylie Jenner is a successful entrepreneur, author, fashion designer, TV personality, style icon and, of course, beauty mogul. And now she can add to her list of titles queen of social. And if you see here the state of the data from Instagram, you can see she's the most followed woman on the planet, and these numbers speak for themselves. On Instagram alone, she has 280 million followers, adding 75 million new followers in the last 12 months. Kylie is also booming on TikTok. She has 37 million followers, and she's added 2 million followers in the last 8 weeks. And I think we all recognize how important this platform is becoming for brands. Kylie's social content is so powerful. She recently did an interview with Vogue that broke all engagement records. The video earned 6 million views in the first 24 hours. That's what? 9,000 views per minute. It's staggering. It was the #1 trending video on YouTube. When Kylie filmed her own premiere for the Kylie Baby, which she launched back in September, she broke records again. 27 million views in the first week with 15 million views coming in those first 24 hours. And with astronomical social presence, Kylie is writing new rules when it comes to marketing. So 2 years ago, we started -- actually, 2 years ago today, we announced our strategic partnership with Kylie. So what I want to do now is just take a step back and walk you through some of the progress we've made during that period together. Firstly, in the middle of a pandemic, no mean feat, we created an entirely new makeup line with new and improved formulas that are clean, cruelty-free, gluten-free, vegan, stunning new packaging, which you can see next join the showroom. We created 347 new SKUs, 10 million units. And we developed a new agile collection drop model that enables us to take Kylie's ideas and concepts to the D2C within 5, 6 months. All of this work completed in just 12 months. It's really a fantastic achievement we've achieved together. We also created a strong visual connection between online and in-store, driving a very consistent look and feel and experience for all our consumers wherever they wish to shop. And I wanted to show you some actual images from around the world of how we're bringing this new vision to life. There's an example here from the U.S. Here's boots in the U.K. And in the room next door, you'll see many more examples for you to explore. We've also hyped up every single moment regarding the brand. And here's an example of what we did for the relaunch back in July. Here is the holiday -- sorry, the birthday collection. And here, you can actually see the birthday collection, which is one of the most productive drop collections she's ever done. In September, we launched Kylie Baby. It is the first category extension for the brand and a real personal passion project for Kylie. The Kylie Baby products are tremendous. They're safe, gentle, clean and conscious products. The collection includes a shampoo, conditioner, bubble bath, moisturizing lotion and with many more products in the pipeline. It's been just 6 weeks since we launched it, but the results are staggering and well ahead of plan. The Halloween, we dropped the Nightmare on Elm Street collection with a major social hype behind it. The key visual here on the left was one of the Kylie's most engaged visuals ever. And we supported it with fabulous Times Square takeover and this branded truck that delivered the kids to VIPs and influencers all around the L.A. area. And this is one of my personal favorites. And I think it really showcases very well the beauty of this brand. We can have so much creativity and fun with it. And Kylie is an active founder. She is the creative director of this brand. She is behind all of the product development, all of the creative development. And she engages with us with key retailers, acting as an important advocate as we expand into bricks-and-mortar globally. But I think what is really exciting is what lies ahead. And our vision is to create a destination for glam, a destination for glam wear. Kylie can create products which inspire, educate and equip her community to create their own version of glam. Key tenet of that vision is to develop Kylie's omnichannel beauty destination. I'll talk more to that later. We will also continue to develop an innovative multi-category offering. We call this our glam toolbox, all this with the objective of building Kylie into a global mega brand. We have laid out a very clear strategy behind the vision with 3 key priorities: one, build strong glam pillars; two, strengthen our global presence; and three, overdrive in social influence. And just let me walk you through these each very briefly. Our first priority is to build those strong glam pillars. And we will continue to conquer makeup, and you'll see us extending that portfolio with new and innovative products and gestures. Secondly, we will continue to accelerate in skin. As you heard, the market is booming, and we're well set to capture that. And thirdly, we will continue to expand the glam toolbox, entering new categories. And Kylie will share more to that soon. As we pursue this priority of building strong glam pillars, the collection and drop model will still remain key to our execution. Collections are absolutely superb way to try new products, say a product lab, if you will, to accelerate social and recruitment with this natural bars which they create and to share really a window into Kylie's unique makeup vision. So we'll continue with those. Now let's look at our second strategic pillar, strengthening our global presence. So Kylie will remain a D2C-first brand, but we will continue to expand to 1 or 2 key retailers in each market, ranging from accessible to ultra-premium luxury doors, each delivering unique experiences. This summer, we launched the new Kylie D2C into 5 markets: the U.S., the U.K., France, Germany and a pan-European site. We will also continue to expand our global retail footprint. Kylie has added 2,500 doors across 3 continents since 2019. And today, Kylie is sold in 27 markets across 10 countries and 3,500 retailers with more to come in the new year. Now finally, our third strategic priority, and that's to overdrive social and influence. And we will continue to expand the Kylie community, enlisting the voices of makeup artists, skincare experts and beauty advisers to help tell the Kylie story and invite them into Kylie's glam universe. Secondly, we'll overdriving social coverage with premium influencer engagement, whether it be the mailers or the pop-ups or their experiential marketing truck, as you saw earlier with the Nightmare on Elm Street. And we will continue to generate ongoing media coverage, telling that Kylie story through all the key titles around the world. I have to tell you, I'm incredibly proud of the work and the progress the team have made together during the past year. But truly, that journey has just begun. And I think what's going to come next is going to be truly amazing. And speaking of what comes next, we are so looking forward to the launch of Kim Kardashian West skincare brand in the second half of our fiscal '22. This story starts with Kim, and we can't wait to share more details with that shortly, and Kim will tell that. But for now, I leave you with my thanks, my commitment that we will continue to drive the beauty business of Kylie and Kim to new heights. Thank you, Isabelle.

Thank you, Andrew. So now we are done with the makeup section, let's have a look at what we expect our business to look like in fiscal year '25. Our goal is to achieve a more balanced business portfolio with Prestige makeup representing almost 10% of our total Coty net revenue and skincare in the high single digits. Looking ahead into fiscal year '25, the profit impact of our plan is particularly good for Coty overall as we are planning to double our revenue from $200 million for our high gross margin Prestige skincare business. Finally, I would like to walk you through a few financial elements for Prestige. We expect Fragrance to grow in line or ahead of the market, and we anticipate our smaller categories, makeup and skincare, to grow ahead of the market. Our EBITDA margin will be supported by our expansion in China, premiumization of our product offering and shifting our business towards skincare. Moreover, we expect to increase profitability of our makeup and skin care business by switching from a distributor model to a more direct-to-consumer model, especially in China. And finally, we will further support our margin with our All-in to Win initiative that flows through volume increases. So now to sum up, we have 5 strategic focus area. Number one, we are aiming to achieve a leadership position in female fragrance while keeping our #1 position in male fragrance. Number two, we are aiming to become a top player in the highly profitable niche fragrance segment. Number three, we are leveraged key brands in the 2 fastest growth and most profitable prestige makeup segment, couture and indies with, respectively, Gucci, Burberry, and Kylie. We plan to triple the penetration of prestige make as a percentage of a total Coty net revenue by fiscal year '25. Number four, we are currently creating a portfolio of skincare brands, which are positioning -- positioned within the leading market trends. Fiscal year '23 is a year of skincare for Coty. We are planning to reenergize both Lancaster and Philosophy, as Constantin explained you, while developing Orveda, Kim and Kylie skincare lines. Number five, finally, we are targeting high single-digit like-for-like sales growth through fiscal year '25 with adjusted EBITDA margin over 20%. I thank you very much for your attention. We are all happy to be with you today. And now I invite you for a short break of 10 minutes. Thank you. [Break]

Good morning. My name is Jean-Denis Mariani, and I am the Chief Digital Officer for Coty. I've spent the last 20 years of my career leading digital transformation project, with 6 of them in the beauty industry with L'Oréal and LVMH. It is my pleasure to take you through our Coty digital transformation journey over the next 15 minutes. It's obvious, there is no digital strategy anymore, just strategy in a digital world, and this world is moving fast. Social commerce is the new e-commerce. Experience is a key differentiator. Authenticity is the core value. Services are the new cookies to collect valuable data. Video is overpassing picture. Data is a strategic asset. Advocacy is a growth engine. Disruption is everywhere, and it's a positive thing. Self-expression is the new creative. Distinctiveness is the winning recipe. So what does digital stand for at the end? It's about consumer centricity, about direct connection between brands and consumers. And digital transformation is about taking what we do today and leveraging technology, data and new ways of working to do it better, faster and more effectively. At Coty, we decided to put the consumer first at the center of everything we do. As a result, we have become a fully consumer and data-centric organization. We put a strong focus on agility and test-and-learn methods. And we capitalize on our key partners and iconic fashion houses to create future value for our consumers and for us. So where do we stand? In less than 1 year, we designed and set up a holistic digital organization around 8 centers of expertise to fully support our brands and countries to accelerate our transformation. Innovation, IT factory, media, content, direct-to-consumer, indirect e-commerce and social commerce as main growth drivers. And we are capitalizing on the U.S. market as a pilot country for testing new initiatives on a global basis. In less than 1 year, we kicked off a robust and agile transformation program through 5 families of priorities to fully unleash our potential. Our first priority is to unlock our full e-commerce potential by developing all our online sales channel with a huge focus on China and U.S. markets, obviously. Our second one is about building love brands because consumers love brands that act in a more personal ways. They want an emotional engagement, a relationship consisting of loyalty and commitment. Building love brands will help us turn our consumer into brand ambassadors. To do so, we are leveraging advanced consumer knowledge, innovative services and content and a strong advocacy strategy. The third driver is about setting up a best-in-class technology ecosystem because there is no digital transformation without technology. The next one is about data-driven marketing, putting data at the core of our model to build more personalized consumer interaction and maximize our media efficiency. And the last priority but not the least, lead this transformation as a change agent for Coty, injecting new ways for working and securing the digital upskilling of all our employees. I always like to say everybody at Coty is a Chief Digital Officer. Going into the detail of our digital transformation program. We delivered against all priorities and secured our turnaround. We established solid capabilities to accelerate drastically over the next 3 years. Each priority is subject to a close monitoring and advancement road map: agility, adaptation and focus remain our core value in this transformation journey. Our strong e-commerce performance in quarter 1 is a direct result to our digital transformation program. We delivered growth of 23% in like-for-like revenue with well-balanced growth across both Prestige and Consumer Beauty segment. On a 2-year growth basis, our momentum is very, very powerful. When comparing quarter 1 fiscal year '22 to quarter 1 fiscal year '20, a pre-COVID comparison, we grew nearly 80%, 80%. In the same time span, our e-commerce penetration doubled. We are more confident than ever in this growth momentum, coupled with the long-term fundamentals put in place to deliver our ambition to accelerate drastically in the next 3 years. The U.S. and China are the key pillars to our growth ambition with both countries continuing to deliver outsized growth in both our segments. In the U.S., our largest market, we had strong and balanced growth of over 25% in both Prestige and Consumer Beauty segment. In China, we accelerate dramatically on both segments, reaching roughly 40% penetration in Prestige and roughly 60% in Consumer Beauty. As an example, in China, we have opened new e-commerce flagship stores to build brand relationship with Chinese consumers, and our efforts have paid off. On Tmall, on JD.com, and on doing TikTok. Within 6 months of opening these stores, we've achieved top 10 brand product ranking position across all our brand initiatives. We also activate Consumer Beauty brands via leading pure players and social commerce platform with immediate impact. Max Factor success on doing is a perfect example. We have plans to build and iterate with other brands and categories within the group to continue fueling our acceleration in China. COVERGIRL, our biggest Consumer Beauty brand in the U.S. grew both off-line and online and both category in key retailers. The stellar COVERGIRL e-commerce performance and share gains on Amazon speaks volumes about the real demand behind the brand and validates our investment areas within incurring our strong e-position in U.S. COVERGIRL desirability is high online and is resonating in omnichannel. In addition to continue to unlock the U.S. and China e-business potential, we delivered digital innovation across all key categories and regions. To name just a few, Coty and Amazon partnered to co-create a clean beauty space integrating COVERGIRL's clean assortment into key Amazon moments and platform. In June 2021, the Coty Be Your Own COVERGIRL subscription box launched as the first box in the clean beauty category, and it was a success. Coty met all pilot KPIs and continue now the program on a quarterly basis. We put innovative content at the core of our model, such as creating unique Shop the Looks in Europe Zalando platform, integrating our iconic fashion house and beauty portfolio to increase the cross-selling. And we advanced our data capabilities also in Travel Retail by connecting all touch points of our consumer shopping journey. Our intention is to continue to build on these successes and priorities to continue to drive growth for the business in the coming years. Today, Coty has a unique positioning to build key differentiator. Part of our digital transformation is also to act as an industry captain, building our key differentiators in 4 strategic areas: innovative services and content to improve the consumer experience and collect variable data, social commerce and live streaming. And we have some of the most iconic brands to succeed. 2 unique D2C brands, Kylie Cosmetics and Kim Kardashian skincare to pave the path for our next D2C brands within the group. And finally, we are investing a lot on advocacy power and viral amplification. So let's start with the first one, innovative services and content. We recently announced an omnichannel partnership with a technology industry leader, Perfect Corp, that will embed augmented reality and artificial intelligence experiences across Coty beauty brands globally. This game-changing partnership, which is cost-effective, will also allow us to co-create exclusive technologies for Coty brands together with Perfect Corp. Each of the 2 parties are bringing their own expertise to build the next generation of consumer experience. Perfect Corp is definitely the most advanced technology when it comes to artificial intelligence and augmented reality. Thanks to their award-winning 60 patents, in fact, relative to other solutions in the market, perfect Corp. has a much more precise facial recognition algorithm, a faster response time and a much stronger partnership with key Chinese platform. Perfect Corp will provide Coty with their best-in-class technology solutions, including virtual trial, Foundation shade finder and online skin diagnosis to push relevant product recommendation to our consumer. This partnership is a real game changer to elevate our user experience, enabling them to experiment different looks and shades and take advantage of data-driven personalization. And for Coty, this is a tremendous opportunity to collect more valuable consumer data and to provide a seamless consumer experience, integrated, for example, these technologies into live streaming session and into video consultation with our beauty advisers. This rich consumer engagement experience could not be more timely. While online sales continue to skyrocket and the desire for touchless option in store are magnified, this solution will further enhance the consumer shopping experience, resulting in an increase in conversion both online and in-store, respectively, up to 4x and 2x. The try before you buy experience and the online skin diagnosis will also result in an average basket value increase up to 40% and, obviously, a product return rate decrease. Using social listening to enhance our consumer knowledge, we can effectively interact with our consumer. That's why we are building the next generation of social listening, analyzing all the online conversation of our consumer to be even more consumer-centric. Social listening is helping to resonate with what our consumer wants to see from us. We informed the businesses in real-time on different important aspects: product feedback, trends, advocates and influencers, consumer trial identification, consumer experience perception. This approach is essential to maintain a close relationship with our consumers and create a strong bond with them. Creative content is an important key differentiator. To achieve this, we are creating internal digital factories focusing on the following levers: digital-first creative content, content that engages that sell ahead of the game, 30-day campaign, data-driven and much more return on investment focus content to grow the U.S., the store in China, entertainment for Gen Z and young millennials and, obviously, content that embraces diversity, inclusivity and sustainability. We estimate that we will multiply by 4 the volume of produced assets and maximize the relevancy and return investment of these assets by the end of 2023. Some of our brands are already paving the way for success using data and insight to prepare that content, coupled with full 360-degree content for classic new Gen Z platform and e-commerce partner. COVERGIRL is paving the way. The Gucci team is doing an amazing job also of creating full experiences inside and outside Tmall through a relevant content story telling. Social commerce and live streaming are the new way of doing commerce and constitute for sure a strong focus from our side. At Coty, we are strongly accelerating on social commerce. We are pioneers when it comes to partnering with social networks and new application solution that propose seamless social commerce experience. Kylie Skin was among the first brands to pilot the TikTok shop features to shop directly in the app in the U.S., in U.K. and in Canada. This month, philosophy and COVERGIRL were early joiners in Flipp, a live stream plus social selling plus customer review platform application that is on the rise in the U.S. Our recipe for success will be to continue, obviously, winning on social commerce on a mature landscape like China while building out new innovative capabilities in the West. For this reason, we are heavily accelerating on transactional live streaming beyond China by building scalable programs and capabilities with our iconic brands, Kylie, Philosophy, COVERGIRL, Rimmel. We are building ambitious programs with our brands and key retailers in order to be at the forefront of the next live streaming boom. Kylie and Kim Kardashian Skin Care, 2 of the most powerful D2C brands, which are sources of both business and learnings. We are pioneering D2C thanks to Kylie, which saw an incredible cosmetics we launched in July with cosmetic cells and skill productivity more than doubling versus prior year. The brand had several launches during quarter 1 from Kylie's Birthday and Halloween collection drops to the launch of our new baby category, which drove tremendous excitement and sales peaks as well as recruiting many new customers to the brand. For example, our birthday collection took over 20,000 orders in first 20 minutes with just over 40% of orders coming from customers completely new to the brand. These results confirm the full potential of the brand and also allow us leverage learnings for our other D2C brands. Last, key strategic area, advocacy power and viral implication. At Coty, we can amplify the natural advocacy power with more advocacy and sales. How we do that? As a first step, we use our internal social listening capabilities that allow the team to flag the most engaging content on our brands within 24, 48 hours, whether they are coming from creators that are involved in our advocacy and influencers activities or natural advocates. Our second step involves influencers PR, social commerce, sales, marketing, working all together super quickly in order to engage with the best advocates and amplify their own post with paid media. And our final step, we see the impact on sell-out both at brick-and-mortar retailers and online. We sell out for those products growing double to triple digit within a week. To conclude, Coty's digital transformation is a top priority for all of us under the inclusion of the new leadership team. In less than a year, we set up the right organization and accurate transformation framework and solid capabilities to maximize our performance already demonstrated in our previous results. We set up a game-changing partnership with Perfect Corp to lead innovative services and increase data collection in a post-cookie world. We are operating 2 of the most powerful D2C brands, which are a source of both business and learnings. And finally, I would say that our e-commerce margins are nicely accretive and that our e-commerce penetration should rise to mid-20% by fiscal year '25. Thank you so much for your time, and I will now pass Guilhem who'll join us virtually from China. Thanks a lot.

Good morning, everyone. I am Guilhem Souche, Coty's China Managing Director. One of Coty's key strategic priorities is to expand our footprint in China, focusing on Prestige and select Consumer Beauty brands. We are seeing a strong repatriation of luxury spending as Chinese customers are now purchasing over 70% of luxury products in China. Hainan plays a key role in this repatriation. Omnichannel distribution dominates the industry. Mature premium cosmetic brand has around 10x for physical point of sales in China compared to North America. As a consequence, many of these physical stores are flagships in million-people cities. And digitalization is key to build the link with customers. The middle class is expected to double by 2040. Within that, we see Gen Z as the most valuable age group. They are the wealthiest and the most consumption-oriented generation to ever enter the market. E-commerce also continues to boom, and it is evolving rapidly. And finally, Chinese people are always connected. Now let's focus on beauty. In 2020, the market size was $80 million. The luxury market in China is booming. It is projected to grow at a CAGR of 16% between 2020 and 2024. This compares to a productive global CAGR of 5.6%. Furthermore, China has proven to be a resilient market with the luxury market growing 8% during COVID restrictions. China is a market dominated by skincare, which currently represents 68% of the market and has grown by plus 25% CAGR over the last 2 years. However, fragrances are now the fastest-growing category, growing at plus-30% CAGR. It is led by a higher penetration and sophistication. As the global leader in fragrances, we're positioned well to keep on gaining market share. Finally, makeup is returning to double-digit growth. Although Coty has been around since 1904, I remind you that we are still young in China. Our subsidiary was created in 2016. Before that, we operated through third-party agents. Our headquarters are based in Shanghai. We have a factory and an R&D center in Jiangsu province. Today, China only accounts for 4% of our company's total revenues, but total sales increased by 31% in the last fiscal year, and we see huge potential for growth in this market. In Prestige, we have gained significant market share since the beginning of calendar year 2021. Year-to-date, Coty outperformed the market with retail sales growing by 106% compared to 26% for the overall Prestige category. This was mainly driven by our success in makeup and fragrances. Even though we only launched Burberry makeup in 2018 and Gucci in 2019, both are now in the top 25 makeup brands. In Prestige fragrances, Coty has 3 brands in top 15, Gucci, Burberry and Tiffany. And this is further supported by Chloé with triple-digit sellout led by the ultra-premium fragrance collection at Fleur. Looking forward, we are committed to continuing this growth, and we'll still see ample opportunity. In e-commerce, for instance, our penetration is still 8 points below the market. So overall, in Prestige, from January 2021, we are growing 4x faster than the category. Today prestige was 85% of Coty net revenues in China, and this is enabling us to be accretive in China has a gross margin 8 percentage points above Coty Global. In mass, we focus on 2 brands, Adidas and Max Factor. And we are streamlining our distribution activities. This strategy has enabled us to return to growth after 2 years of significant revenue declines. Our 3 years' ambition is to more than double our sales. To achieve this goal, we are building iconic brands in each category. We'll continue expanding our distribution platform with the best partners, particularly in prestige. We plan to continue our transition from distribution to retail. We anticipate e-commerce will represent half of our sales in 3 years, and our plan is to keep growing skincare and makeup to account for roughly 60% of our business. We expect to accomplish all of this within the framework of our beauty that lasts sustainability platform. We will remain focused on our strong brand portfolio. Today, couture brands account for 25% of the beauty market in China. Here, we are well positioned and growing led by Gucci and Burberry. Artisanal fragrances are also growing rapidly. This is the mission of Chloé with Atelier des Fleurs that we are developing in retail. It is estimated that 2.5% of China's 1.4 billion people currently use personal fragrances. This is a key growth opportunity and brands like Calvin Klein, Marc Jacobs, Hugo Boss, Lacoste will also have a role to play to recruit Gen Z. In skincare, we are working to reposition Lancaster from Sun Care to a cutting-edge technology skin care brand. We have already relaunched Lancaster in Hainan and have seen very encouraging results. Finally, in the mass market, we will continue to focus our efforts on Adidas for active body care and Max Factor for color. In terms of channels, we are transitioning our Prestige division from distribution to retail. Our growth is currently driven by boutique, department stores and e-commerce flagship stores. Our transition from distribution model to own retail and e-commerce is enabling us to better control our brands and establish a direct relationship with our end customers, and it also generates higher margins. Here is an example of our retail distribution expansion with Gucci Beauty. With the traction on the brand, we have the opportunity to go only in China best stores when competition has opened hundreds of stores in the past 3 decades. In FY '22, we expect to almost double our distribution, expanding to 8 new provinces and 10 new cities. Here is an example of the latest Gucci Boutique we opened in Wuxi. And here in Beijing SKP, an example of counter in the most prestigious store in China. This is the podium we created for Burberry in Shanghai Daimaru, which is Shanghai top department store. And for Chloé Atelier des Fleurs, this is the first picture of the first flagship store that we opened in Beijing end of November. In skincare, Lancaster repositioning is just getting started in Hainan. Here is an example of this new identity that we presented during the China International Import Expo last week. And we are also excited to add Orveda to our portfolio and about the potential of the brand in the ultra-premium segment, which is one of the most dynamic in China. We are now building capabilities, working on the brand positioning. And fiscal year '23 will be the year of skincare expansion in China. In e-commerce, we are taking control and diversifying our distribution among the key platforms. Since August 2020, we opened Burberry and Gucci in Tmall, Calvin Klein and JD, philosophy, Max Factor on Douyin, which is a Chinese tiktok. We significantly increased our investment and the results are strong. Our prestige e-commerce sales increased by 246% in Q1 fiscal year 2021 compared to previous year. And our e-commerce administration in Prestige rose to 25% from 10%. For 11/11, we doubled Coty e-commerce sales and in Prestige tripled the sales of our flagship versus last year. We were also very excited to participate in the China International Import Expo this year for the first time. We showcased our latest products across 10 of our iconic brands operating in China. This has been a key effort that shows our long-term commitment to developing Coty in China. Key officials, business partners, media and thousands of visitors have seen our booth and have discovered Coty and our key brands. In conclusion, I would like you to remember that China is a secular growth market driven by expanding middle class, growing disposable income and expanding per capita beauty spend. Coty is the fastest-growing leading Prestige beauty company in China and targeting to more than double sales. Our growth is anchored in 3 engines: fragrances, makeup and skincare. We are diversifying e-commerce growth, targeting half of business in e-commerce in 3 years. We are building Consumer Beauty business in a limited number of brands. Our sustainable growth potential in Hainan is significant, and we are piloting a coordinated approach between Mainland China and Hainan. On behalf of the Coty China team, I would like to thank you.

Ladies and gentlemen, welcome again. My name is Caroline Andreotti, and I lead the Global Travel Retail team. I've been with Coty for the last 18 years in different position in Travel Retail and in domestic markets and mainly in China. It is my absolute pleasure to talk to you through the phenomenal recovery that we are seeing in the Travel Retail channel. Now let's go back in time before the pandemic when global travel retail was growing at a staggering 20% and reaching 38 billion in retail sales. Travel Retail -- Coty Travel Retail represented about 7% of Coty's global sales, with 16% market share in global Travel Retail fragrances. Although we were leading the fragrance category, we knew that there was more for us to do in the skincare and in the makeup category and in Asia, where our share of business was below 30%. Now when COVID hit, airport traffic fell by 90%, with Travel Retail impacted at a similar level. Domestic travel in China and the Hainan phenomenon was the only exception. Now at the onset of the crisis, we took immediate actions to control costs and protect our cash and profit while preparing for the recovery by positioning our business for growth in 3 critical areas. The first area is about expanding into new categories. The second area of growth is about growing China and Asia. And the third one was about omnichannel, driving omnichannel retail excellence and digitalizing our point of sale. Today, we are seeing encouraging signs in fiscal '22, and I'm delighted to report that Travel Retail Americas is back on a quick recovery. In Europe, we are seeing a triple-digit growth versus last year, and we are nearly at the level of 2019. As a result, we are expecting Travel Retail to return to a CAGR of 20% to 25% by fiscal '25. Now looking at the 3 areas of growth in a bit more detail. First, I was talking about expanding our business share and investments in skincare and in makeup with Gucci and Burberry in Asia and repositioning Lancaster. You've heard about Lancaster before as a true beauty expert brand. By 2025, we expect skin care to reach already 6% and at minimum 6% of our overall Travel Retail business. Now very interestingly, and I really wanted to show you that slide. Gucci makeup is now our #1 brand in our Travel Retail global portfolio, already overtaking fragrances and primarily driven by Asia and the China Travel Retail business. Now although you don't see Kylie included in here, we just launched it 1 week ago in Paris Airpor, and I will talk about this a bit later. We are seeing very, very strong results. Just a quick illustration of how Gucci looks beautifully in Lagardère Sanya store in Hainan Island, China. And what's interesting is look at the center stage that makeup is already taken within the store. I just spoke about Kylie. Kylie had a very strong start in Paris Airport last week. I'm super proud to tell you that we were ranking #1 in early airports in the makeup category. And number two, in Charles de Gaulle airports outperforming Channel and Galleria. So really remarkable achievements. Second area of growth focus has been about growing our business share in Asia to 50% of Global Travel Retail by fiscal '25. This will be done through the expansion of distribution of makeup, of skin care, but also our ultra-premium fragrances, which you have seen before. It will be also about scaling up our distribution in the downtown domestic duty-free stores and mainly in Hainan. Thirdly, it's going to be about creating an omnichannel presence in our stores. And I know that you have heard a lot about omnichannel, but we are serious about it. We want to connect the off-line with the online. So digitalization of our point of sales and e-commerce. And as you can see here, our plan is to double our e-commerce sales to 30% by fiscal '25, very much driven by our Asia business. Now how are we going to win in Travel Retail? We know that if we want to win, we have 4 key priorities. The first priority is about maintaining our leadership in the fragrance category, and we are going to do that by focusing on our 5 iconic brands: Gucci, Burberry, Chloé, CK, HUGO BOSS. We are going to grow our ultra-premium and niche collection. You have heard a lot about Chloé Atelier des Fleurs, Burberry Signature, Gucci Garden Alchemist. And the third is we're going to differentiate our portfolio in Travel Retail versus domestic markets via travel retail exclusive, gifting, but also prelaunches. We're also taking a glocalized approach to our portfolio with a focus on skincare and makeup and ultra-premium fragrances in Asia while in the U.S. and in Europe, we are focusing on lifestyle and premium fragrances. Now we have seen very strong performance in our ultra-premium and niche fragrances, especially in Asia, where they have -- where they are planning to represent about 10% of our global portfolio by fiscal '25. Now we know -- and I've lived in China for many years, that Chinese consumers are looking for individual signature sense, and Coty is giving them exactly the right solution. With fragrances like Chloé Atelier des Fleurs -- or Chloé, Gucci Alchemist's Garden and our Burberry Signature. This is just a great illustration of what you can see today at La Samaritaine, Paris, the beautiful Chloé Atelier des Fleurs counter. Our second key priority is about the expansion into the makeup and skincare categories. Now you have heard, we have relaunched Lancaster, our beautiful iconic brand in Hainan with a premiumized and Asia-driven design. We are driving growth among Asian millennials with Gucci and Burberry Beauty and now with Kylie Skin Cosmetics, which has just launched in Travel Retail. Now the success of Lancaster in Hainan has been absolutely phenomenal. It is now available in the most prestigious store you can find in Hainan such as China Duty Free Group, Haitang Bay, Lagardere, Sanya, Dufry Mova, and we are seeing a fantastic growth month-over-month for the brands. Our investment in Hainan included a grand launch event, as you can see behind me, at Lagardere, Sanya with a pop-up store that we have had there for one month that was involving top celebrities and key opinion leaders, as you can see in here. Now our third key priority has been about strengthening our presence, visibility, investment, market share in Asia and in China, focusing on our premium plus and ultra-premium fragrances as well as skincare, makeup and our niche collection. Hainan Island has benefited, as you have heard from strong Chinese governmental support, aiming to turn Hainan into the world's largest duty free port by 2030, with retail sales expected to reach USD 50 billion by 2025. $50 billion by 2025. You can just imagine the fantastic opportunity that lies ahead of us. As you can see on this graph, our business in Hainan grew triple digits this fiscal versus last year and already very strongly up versus 2019. And that's very, very much thanks to the new government policies that we're aiming at driving local consumption. Now the growth is expected to continue at that pace. We know already that 60% of Chinese today plan to continue to travel to Hainan, even when international traffic resumes. As a result, we expect Hainan to account by fiscal '25 to 20% of our overall business. Now as you can see in the pictures here, we have opened absolutely gorgeous and top locations in Hainan over the last 12 months with personalized counters for Lancaster, for Gucci, for Burberry fragrances and makeup along with pop-up stores that are coming ahead of Christmas and during Chinese New Year. Here you can see a great example of Burberry's counter makeup and fragrance counter that was open again in Lagardere, Sanya back in February '21. The brand is already ranking in the top 10 makeup brands in that store. And finally, as I said before, we are creating a true omnichannel presence in our store and driving retail excellence. It is all going to be about retail excellence and who wins there. We're going to be focused on digital media, on store animations and on service. We will continue to blend the highly personalized online and off-line shopping experience for our consumers using innovative digital tools such as QR codes, augmented reality and virtual testing methods, which I will show you later on. Really wanted to give you an example of how we look. I was just speaking about being digitalized and about connecting offline and online. And I wanted to give you the example of Gucci store in Hainan, which is fully digitalized today. And for me, it's a great example of how we can become innovative, having such an omnichannel presence. Now as you can see here, consumer can actually test our products virtually, so without having to actually apply the products and doing it in a very engaging and safe way without necessarily having a beauty adviser next to them. So they can do it through the different QR codes that are displayed in the store through augmented reality, but also through gaming that we have at our point of sales. Now our goal is to excel at being the best consumer-centric company you can have, okay, meeting our shopper needs, interest but also expectations. Consumer will always want to test, to smell, to touch products, but they want to do it in a safe and an engaging way and doing it in an exciting shopping environment. To address all those needs of consumers, we have actually introduced touchless testers, which deliver a single drop of fragrance for testing. This is the picture you see on the left-hand side. We have also introduced -- sorry, there was a video here. We have also introduced a digital tablet, and I will be happy to show it to you after, which can be actioned remotely by the beauty adviser. Now what happens is that this digital tablet has about 20 fragrances of us. The beauty advisers can action it with her mobile phone and the consumer actually smells the fragrances that he shows from their tablets. So no touching, okay, very safe. And actually, it also reduces waste because we are using 5x less of testers versus the past. So it's also a very sustainable way of continuing to test our products. To conclude, we are very, very confident. I am very confident about the future of Travel Retail and in its recovery. I'm already seeing it on the ground. And over the next four years, we expect Travel Retail to grow at an annual 20% to 25%. Now to position Coty Travel Retail, first success and for future growth, we will be leveraging the following growth drivers. First one, maintaining our leadership in fragrances with an acceleration of our niche collection expansion; second, building skincare and accelerating our makeup growth, focusing on retail growth with a very large focus and emphasis on Asia Pacific and on China, driving retail excellence and premiumization; and then transform to a true omnichannel business connecting offline with online and growing our e-commerce business. I would like to take this opportunity and thank you. Thank you for your support to Coty. You see we are a very passionate team. We love our company. We love our brands. We love our people. And I'm looking forward to your questions and working -- continuing our work together. Now I would like to hand over the mic to Laurent Mercier, our CFO. Thank you very much.

Thank you, Caroline. I'm happy to be with you today and to share now our financial journey. I would like to first remind everyone of our investment highlights as shared by Sue during our strategic update event in April 2021. We unveiled our strategy roughly seven months ago, and already, we are seeing very tangible results. As shared by Isabelle, Constantin, Alexis and Stefano, we have one of the most beautiful portfolio with two complementary businesses, Prestige and Consumer Beauty. We are rapidly executing on all our key strategic growth pillars. Our recently reported Q1 results were a clear demonstration of our progress. Our gross margin expansion and cost reduction as part of all in to win, presented by Gordon, are fueling our growth initiatives while at the same time delivering profit growth. We expect strong EPS accretion through our capital structure improvement. And last but not least, we have simplified our capital structure and have a clear pathway to deleverage. Our financial journey is fully designed according to these investment highlights. Phase 1 has centered on stabilizing the company during the first half of fiscal '21 and then fueling the company during the second half of fiscal '21. We are calling Phase 2, build and grow, and that is effectively what's happening this year in fiscal '22. And beginning next year, fiscal '23, we will be entering the Phase 3, the growth flywheel. So let's start with our Phase 1, stabilize and fuel. Let me remind you what we implemented and achieved one year ago to stabilize the company, particularly as we were in the midst of the global pandemic. We reviewed in depth our organization to be more nimble, but also to be more efficient. We brought our non-people fixed costs to the bare minimum. And this was also a nice achieve for the organization. We announced salary freezes and no bonus. We completed the sale of 60% of Wella. And in addition, we implemented a strong cash culture to protect our cash and accelerate our deleveraging. This brought very strong results in fiscal '21. Our fixed costs were lower 16% year-on-year. We delivered net savings of over $330 million ahead of our initial target, which was over $200 million. Our EBITDA margin for the year was 300 basis points above pre-COVID levels despite a much lower net sales. We reduced net debt by $2.6 billion, and we extended approximately $2 billion of debt maturities from fiscal '23 to fiscal '26. Deleveraging was and remains the #1 imperative. Thanks to the Wella divestiture as well as our cash flow focus, we cut our leverage ratio by half from the end of fiscal '20 to the end of fiscal '21. Adding in the cash generated in the first half of fiscal '22 and proceeds from inorganic initiatives, we are confirming our path towards 5x leverage by the end of calendar '21. In fact, taking into account our retained Wella stake, currently valued at roughly $1.2 billion, our leverage is already below 4x based on economic net debt. At the same time, we have been working to fuel our business and unveil our strategic priorities in April. How did we do that? It was driven by a very strong partnership between Coty's finance team and business teams. And I want to share with you a few concrete cases. Let's start with Marc Jacobs Perfect. This innovation was launched, as shared by my colleagues, in the middle of the pandemic with investment limited to only digital support based on our internal ROI analysis. Results were outstanding as Perfect was the #1 fragrance launched in the U.S. over the last three years across all competitors. Second example is the launch of our COVERGIRL's Clean mascara. Here again, we designed a very specific plan with an innovative and cost-effective selfie video campaign while being very nimble in allocating our resources behind the right COVERGIRL franchises. The result was that this mascara became COVERGIRL's #2 best-selling mascara. And for the first time, in many years, COVERGIRL consistently gained market share over several months. And we are amplifying the success further with the launch of two strong fragrance icons in Q1 while the combination of cost savings and gross margin initiatives have allowed us to both double our media investment and deliver exceptional profit growths. Now that we have completed our phase, stabilize and fuel, we are now in the build and growth phase. As part of this phase, we are stepping up our processes and tools. We are leveraging new technology such as artificial intelligence to develop advanced planning, reporting and analytics. We're also stepping up our business process outsourcing through our partnership with Accenture as well as upgrading our enterprise resource planning platform. To build and grow, we are leveraging and amplifying what we implemented last year, maintaining discipline on fixed cost, improving gross margin, resource allocation with the ROI mindset, accelerating our cash flow generation with our cash Olympics program. And we have simplified our capital structure with KKR preferred shares now completely redeemed through a combination of block trades and swaps in exchange of a part of our Wella stake. I want to remind you that the total cash dividend savings for Coty as a result of the elimination of KKR's preferred is $77 million annually, which clearly supports our deleveraging agenda and, at the same time, allowing us to fuel our growth. These clear work streams are delivering tangible results with last week's Q1 earnings, marking the fifth consecutive quarter of delivery in line to ahead of expectations. This has enabled us to increase our guidance for the year. We now expect like-for-like revenue growth in the low to mid-teens as well as gross margin expansion for the year. And we confirm our EBITDA at a minimum of $900 million as we intentionally reinvest in our growth initiatives, thanks to increasing gross margin and fixed cost discipline. Based on the stronger business momentum and progress in simplifying our capital structure, this morning, we are increasing our EPS guidance range to $0.20 to $0.24. We are accelerating our deleveraging, and we are now targeting leverage towards 4x at the end of calendar year '22 as a result of lower net debt and EBITDA calendar '22, approaching $1 billion. Again, taking into account the value of our Wella stake, our leverage target exiting calendar year '22 and an economic net debt will be approximately 3x. At the same time, we significantly improved our debt maturity profile over the last six months, with the majority of our debt now due in '25 and '26. The progress we have made on improving our sales and margin deleveraging and simplifying our capital structure have led both rating agencies to upgrade Coty in recent months, which is a great milestone for the company. Now that we have completed our Phase 2, we are now ready to implement our growth flywheel and amplify our growth engine until '25 and beyond. So growth flywheel from fiscal '23 and beyond is characterized by several points. First, we will be operating at full potential. Second, over the years, we will be completing the execution of our 6 strategic pillars. Third, we will be entering a virtuous P&L cycle with sales growth ahead of the beauty market and profit growth ahead of sales growth. Fourth, our gross margin will continue to expand based on multiple drivers. And fifth, we will maintain a simplified balance sheet. So how do all our strategic initiatives and plans translate into medium-term financials? The short answer is that our target is to grow like-for-like revenue in the range of 6% to 8% from fiscal '22 to fiscal '25. In other words, outperforming the beauty market which has historically grown 3% to 5%. And our goal is to continue this growth momentum beyond fiscal '25. As shared by my colleagues during their respective presentations, the drivers of growth will be Prestige fragrance growing in the mid-single digits, in line with the market. Skincare high teens to mid-20s CAGR through fiscal '25, led by our existing skincare brands plus new additions and brand expansions such as COVERGIRL, Kim Kardashian West skincare and Orveda. Prestige makeup CAGR of 25% to 30%, led by Gucci, Burberry and Kylie. Consumer Beauty, excluding skincare, growing in line with the market at low single digits. The results of these initiatives is that by fiscal '25, we estimate that skincare and Prestige cosmetics will each represent roughly 10% of our net revenue. This compares to skincare at 5% and Prestige cosmetics at 0 2 years ago. We also expect the weight of skincare and Prestige cosmetics to increase beyond 2025. From a geographical standpoint -- so key growth drivers will be China, which we expect to more than double. Travel Retail growing up to 20% to 25% CAGR through fiscal '25. And other regions will grow from low single digits to mid-single digits. Putting together all these building blocks, we expect China's proportion of our sales to triple to over 10% by fiscal '25 compared to 3% two years ago, with further growth beyond fiscal '25. At the same time, we would expect Travel Retail to grow as a percentage of our net revenue to a high single-digit level. And in the background of it all, we project e-commerce penetration expanding to a mid-20% level compared to high single digit two years ago. Against this backdrop of targeted revenue growth above the beauty market. We have also multiple levers to meaningfully improve our P&L, cash flow and balance sheet. As you heard from Gordon, our gross margin attack plan is multipart with work streams across commercial initiatives, pricing and revenue growth management, mixed with portfolio, channel and geography, material cost productivity and supply chain. Together, we see opportunity for approximately 500 basis points of gross margin expansion in the next four years through fiscal '25. And as Gordon has also laid out, we have identified an additional $75 million of savings opportunity in fiscal '24. This brings the total savings for our cost savings program to $675 million over the 4-year period, optimizing all lines of our P&L, i.e., COGS, fixed cost, trade terms but also A&CP. These elements all together form the basis of our flywheel with an adjusted EBITDA CAGR of 9% to 11% expected from fiscal '22 to fiscal '25 and continuing at this level beyond fiscal '25. That brings me now to our midterm financial algorithm. I've already covered our latest outlook for fiscal '22, where we are seeing strong momentum up and down the P&L. It's also evident that the revenue growth in fiscal '22 is above the normal algorithm as the industry is still recovering from the pandemic. Beyond fiscal '22, however, we are targeting 6% to 8% like-for-like revenue growth outperforming the beauty market. Gross margins reaching mid-60s percent by fiscal '25 and continuing to expand from there. Adjusted EBITDA growing from 9% to 11% CAGR through fiscal '25 and beyond. Our tax rate in the high 20% level largely consistent with this year. We, of course, we are monitoring current and future tax proposals very closely. Adjusted EPS growing above the 30% CAGR through fiscal '25, reflecting the operating leverage effect from the profit expansion as well as continued reduction in our interest expense as we continue to reduce our debt. Leverage getting to approximately 4x exiting calendar '22. And as we have already shown, our retained stake in Wella remains financial assets that we can monetize to simplify our capital structure. Now with our ownership stake at 26% and values based on the latest [indiscernible] with KKR at roughly $1.2 billion, we intend to sell the remaining stake by fiscal '25, which should dramatically reshape our balance sheet. Translating all of this into cash flow, we expect free cash flow to grow nicely in fiscal '22 and further accelerate through fiscal '25. As a result, we continue to expect our leverage to improve to approximately 4x exiting calendar of '22, reaching approximately 3x exiting calendar of '23 and approximately 2x by calendar '25 and beyond. That brings me now to our capital allocation priorities. As we've continued to emphasize, deleveraging remains a top priority, and our optimal capital structure includes leverage below 2x. Outside of this, our focus is on reinvesting and fueling the growth in our existing portfolio, including media support, R&D, enhancing our digital capabilities, building our muscle in China and taking our skincare organization and how -- and know-how to the next level. We want to be known as a blue chip growth company. So to conclude, Coty has one of the most beautiful and comprehensive brand portfolio in the industry. And we are the only group at this level to operate 2 complementary businesses. We are rapidly executing on all key strategic growth pillars and targeting a revenue CAGR of 6% to 8% through fiscal '25 and beyond above the growth of the beauty market. We are targeting mid-60s gross margin by fiscal '25 and expanding thereafter, which will allow us to fuel our growth plans and expand profitability. We see strong EPS accretion via capital structure improvement with an EPS CAGR of 30% through fiscal '25 and in the mid- to high-teens CAGR after that. We have multiple levers to accelerate deleveraging, bringing us to a leverage ratio of 3x by end calendar '23, with an optimal ratio of below 2x. Our focus will be on deleveraging rather than on share repurchase, dividends or M&A until we reach our 2x leverage goal. Thank you very much for your time. We are now looking forward to answering your questions.

Robert Ottenstein, Evercore ISI. That was a terrific presentation. I was wondering if you can talk a little bit more about the plans to expand in Prestige skincare particularly, I mean, you're making a big investment, right, 200 people. Roughly how much -- how many of them been hired so far? What does that planning look like? Any ideas in terms of how much that would cost given that it's tough to get good people, right? So there's kind of a question mark, right? For me, in terms of getting those people on board and hitting your targets at the same time. And then the other tied to that on the skincare side, could you talk a little bit more about your -- the brand you're -- is it Orveda, which -- my bad, but I didn't know about it. Javier told me that it was a brand, I think, that you had created so maybe a little bit more about that brand and how you expect that brand to go up against something like La Mer?

Okay. Thank you, Robert. Can everyone hear me? Mic on. Okay. Perfect. So to answer the question about our skincare capabilities. And again, I think if there is one area in terms of R&D because skincare is about R&D and then about marketing capabilities and of course, executing in store. So when it comes to R&D, in fact, the great news is that the company is having the right R&D muscle, including headcount. We have people working on skincare in Monaco since many years behind Lancaster. We have people working on skincare and philosophy in the U.S. since many years again. And we also have a team in China, which people don't know, but we have a small team in China of people who helped us until recently, to understand the Chinese taste, in terms of textures, in terms of wordings, in terms of claims, et cetera, et cetera. So again, the key and most important part is there. It's really do you have the ability, I think what Constantin has been showing in his presentation without quoting the two serums that you saw, but when you have a texture that's beating the two best-selling serums around the world, it means that we have this know-how of creating winning textures, and we also have the right scientists. When you look at what we presented in terms of what I call the key IPs that Coty owns, we have very strong areas that are today, the ones that are making the trends in the makeup -- in the skincare arena, sorry. So if you think about dermatological actives for those who are skincare lovers or even for those who have people around them loving skincare, today, it's all about what does it contain, people on social media, all about what's the level of vitamin C, what's the level of retinol, what should I use before, what should I use after. So this, we have, in fact, this know-how of formulating highly concentrated skincare using best-in-class ingredients. We have know-how behind things into philosophy around even procedures. Philosophy has micro delivery, which is the #1 billing at home solution in America, and this gives us a door into those who are looking for clinical solutions. We have know-how when it comes to sun and pollution protection. This is huge, as you can imagine, in Asia, and even in America, if you ask a dermatologist, what's the best anti-aging ingredient. Here, she will say UV protection. So in a way, I'm just quoting a few of these. We have a strong muscle and I have to say that this was my, I would say, best surprise when I joined Coty one year ago, when I had the chance to visit Monaco Laboratories in October of 2020. When it comes to marketing people, in fact, we are building a team, but not at the level that you are mentioning. I think the 200 you're talking about are China and many other bets we're having here and there. But again, today, what we are seeing is that with Stefano on Consumer Beauty side and Constantin on the Prestige side, and many other people, of course, Shimei joining us -- Dr. Shimei joining us, Véronique Schwartz. They are all very, very strong at creating and managing skincare portfolios how to play with the portfolio. And of course, our business leaders, Caroline, who spoke about Travel Retail. She's a very, very good skincare expert and a big skincare expert. So all these people be it in the business or behind the scenes, creating the products have this know-how. So honestly for me, I think this area, and that's the reason why instead of saying, let's see what's going to happen in skincare by fiscal '25, we are saying, we are starting -- we will be starting to operate our skincare brands by fiscal '23, which is in nine months now. So it's really tomorrow. That's it. So when it comes to the second part of your question, about this skincare line I have created. When I left L'oreal, I had -- I wanted to confront myself to the world of start-ups. I wanted to understand how to create a brand. And I have to say that this experience, I know that started in 2014, I relocated from Paris to London because I thought that this brand had to be the best of Europe and the best of America because I had this in mind. I really wanted to create something that resonates with the Chinese market, everything into Orveda for those who know the Chinese market, you could find 1,000 clues that give you a clear understanding of what the skincare market going to be in China. And the good news is that the story behind Orveda, which is around mastering the skin microbiome. Skincare has been built around ingredients. And today, we are understanding that there is a layer that's billions and billions of bacteria, viruses, living on our skin, living on our scalp, but in our guts that are making, in fact, they're protection. They are the #1 skin barrier. And they are there to help you let your skin rejuvenate deep inside if this barrier is intact, in fact. So this science that we call the microbiome science, using prebiotics, probiotics, sometimes post-biotics, is really, for me, the next frontier in health in general because people are taking today daily -- on a daily basis probiotics, prebiotics, et cetera, and it's coming into skincare. And you'll see most of the brands, they are going at the moment or another to be obliged in a way to talk about skin barrier and skin microbiome. Orveda is precisely around this. It's probably the highest concentration in a skincare product that you could find today in the industry. It took us, the Cofounder and myself three years of formulations. And I went to, on a weekly basis during three years, to visit laboratories around the world to work on the textures, to work on how to mix ingredients together to have them efficient while taking care of the sensitivity of, I would say, the most sensitive skins. So we've done this job. We went to visit factories. I learned a lot, I have to say, because when you work in big corporations, even if you create the best-selling products, you don't spend that amount of time talking to people who are going to manufacture your products, talking to people who are going to source from China, from Europe, from South America, et cetera. So in a way, I think for me, coupled with my L'oreal experience, this was the best training possibility before joining a company like Coty.

It's Wendy Nicholson with Citi Group. It's been fantastic. My first question, just as a follow-up is on Lancaster specifically in China. I know where you have initially sort of started to build the brand as in Travel Retail. But can you talk about where it goes from here from a distribution perspective? Is it going to be in Sephora? Is it going to be in department stores? Or is it going to be most like Tmall? And then my second question, maybe, Gordon, is for you. Because I think historically, what's been so frustrating about this company is you've had so many great brands and so many great new products, but something has gotten lost from an execution perspective. And I loved it when you said that 80% of what has to go right is all execution because the strategy is pretty straightforward. But can you just talk about your relationship maybe with those important retailers, Ulta, Sephora, Tmall? Are you getting the shelf space you need? I know you've talked about a couple of examples like COVERGIRL and Ulta, but maybe more globally and more broadly, how is the relationship? Are you doing well with Sephora in Western Europe? And are you servicing them on time with the right product?

So Gordon, maybe you can start with the second part of the question, and I'll speak about Lancaster in business, maybe with the high...

Yes. In terms of Travel Retail, let's talk -- I think there was a question here already about product availability. And I think we've all heard these disruptions to the supply chain that many people are talking about. But when you look at our service levels, we are consistently operating around 95% service level right now, which is really phenomenal. And when you look at that number 12 months ago, it was below that. So we're actually performing better now despite the supply chain disruptions that you've heard about. We're actually lucky because we didn't do some of the things that our peers did. For example, many of our peers went into global sourcing in a big way over the last 10 years and moved component supply and material supply off to offshore markets. We never went that far, which is now turning out to be a major advantage because our sourcing is often very close to the plant in the same -- on the same continent, at a minimum, typically in the same country. Secondly, we also manufacture very close to where the product is consumed. So Brazil for Brazil, U.S. makeup for U.S. makeup and so on. Fragrance, maybe being the one exception. But that has allowed us to be much more flexible to have inventory in place that could be shipped to retailers very quickly. So we haven't really seen stock out on shelves, and that really has helped you talked about retailer relationships. That has really helped the retailer relationships because they have enjoyed the fact that we could deliver and we weren't stocking out on their shelves. So I think that is quite strong. And I think that probably answers the second part of your question.

And Wendy, to answer one part of your question around the retailers and how do they, in a way, see our innovations. In fact, we don't go to talk to retailers to say we are launching a new product. We love to go and see them and to tell them that we want to open a new category. We did it with Clean makeup. We have many other things arriving in the near future. And it's really this way that we unlock additional space, in fact, because as you can imagine, there is a huge competition for space. And every time we talk to retailers and Alexis has been doing this when it comes to keeping the shelf space of Max Factor first and then expanding, for example, the [indiscernible] one. This is really the story we tell them. And in a way, they are like you, in fact, they were waiting to see if we are able to put back the brands on track. And the first result that we've been presenting today, which are across each and every brand, honestly, with no exception almost, they are really giving them great confidence and very -- yes, they love to have other partners than always the same ones, too. So they are super happy that Coty is back. It gives them a lot of potential other partners to play the game with. Maybe on Lancaster, Caroline and Isabelle, if you are able to add one word, Caroline, about what's happening in Hainan; and Isabelle, about the upcoming expansion in China.

Well, thank you very much, Sue. So as you have seen, our first results in Hainan have been just phenomenal. We are coming with today a brand that has two facets, one of them being a true brand -- a true skincare expert, but also a, I would say, one of the brands that has the best I would say, today, light management technology, and we have been able really to resonate among our Chinese consumers in Hainan. Hainan is a fantastic testing ground for new products, and we have been really able to, through the activations that we had there, and so the brand story and what it stands for really talk to the Chinese consumers and get the full adherence. I will hand over to...

Isabelle? So four stores in Hainan?

We have four stores in Hainan.

On Lancaster?

Correct.

And then Hainan enable us to understand our customer and to understand how we could also better service them because they are traveling, they're on vacation. They have a lot of time to spend. So while Caroline is organizing a kind of entertainment with our customer traveling to Hainan, then we have a privileged distribution with Sephora. And Sephora is very happy because Sephora used to have a cleanser/sun care business with us. And now this is going towards face care. So we are building 365, as Constantin showed you, as a key pillar. So we're working hard on that. And Constantin was a great experience in indie brand, and the team we have in China has also great experience in skincare, we are building a communication. So communication strategy based on sponsors, on a spokesperson, on influencer and those persons will help us to build a pillar product and Hero product because what we need basically in China is Hero products. So 365 is the first one. It's a very well accepted serum. And as we mentioned earlier, we've hit #1 and #2, and this is our strategy today. So we have a strong strategy with Sephora. And of course, you can imagine that once you have set up your customer services, your entertainment in Hainan, you collect the data and then you carry on working with Sephora, we start a power engine.

Chris Carey, Wells Fargo. I'm trying to balance this dynamic where a lot of the strategy or a lot of the focus is on skincare and Prestige cosmetics in China. These are categories and geographies that are new or a new frontier in a way, right? And that makes a lot of sense. Those are secular growth categories. Those particular growth areas, but a really key part of the bridge in the financial algorithm is still Prestige fragrance and it's still Consumer Beauty, excluding skincare. And if I just think about the fragrance category, it's -- there's periods of cyclicality. It's up, it's down. And so clearly, there's a view that it can be sort of this mid-single-digit type category going forward, and you'd like to grow in line with that. And I would just like to understand some of the assumptions or what you're seeing in the category that gives you confidence that we're into a new phase of sustainable growth for Prestige fragrance. And so I'm just trying to balance those concepts.

Laurent, maybe you can start and I can complement on the trend.

Yes. I can start indeed with what you are raising -- the question you are raising is really about priority setting and resource allocation. So again the model, and this is what we unveiled seven months ago. This is what we are executing. And what I explained is really that is really focusing first on efficiency. So it means that whatever category either Consumer Beauty or Prestige, we are really making sure hand-in-hand finance and the business teams that we have the right setup, that we have the right media and we have the right ROI. So it's really focusing always discipline on return on investment. And I'm repeating, repeating is return on investment. Second element, is, of course, to get the fuel. And this is what Gordon has shared. So that's why our gross margin agenda is so important. But I believe that all the all-in to win program was did focus first on fixed cost and now is really moving also to gross margin, and you do the math. I mean it's really this way is really to get the fuel and we need to allocate the fuel in the right priorities. So it's really what we are doing. It's a mix of getting the money, of course, and we are perfectly on track. And again, all in to win is giving the money, but then it's really the way we use the money and again, completely in line with the strategy. So our model is built this way. It's fully designed. This is what we started again a year ago. It's working, and we are keeping very strict discipline, putting some allocation, some resources. It's only indeed media, but is also sometimes people or it can be also infrastructure. So there is no dogmatism here and again, setting on efficiency. And then Sue can complement on the category trend that we are seeing.

No, I think the question is about is fragrance going to continue to grow, et cetera? And my strong belief is yes, I would say. Several times, yes, for many regions. First, for geographic regions because we have a region of the world -- and Caroline or Isabelle, I think, has mentioned it that were 2.5% of people are using scents on a daily basis and 2.5% of a population of more than 1 billion. You can imagine there is a huge potential over there. They are big lovers of fashion brands, couture brands, and we do own some of the most desirable brands. The second trend for me is the one in Western World, which is the one of premiumization of this business. I'm not thinking just about niche and artisanal high-end fragrances, including in the mainstream big chunk of the market, we are selling more and more parfum instead of eau de toilette, which is much more expensive, as you can imagine. And in a way, this is a raising or repairing the fact that for many years, fragrances were down trading everything. They ended up looking like a commodity. So they are regaining their real luxury or fashion item status. And this, in a way, will make them as desirable as a fashion bag. That's my strong belief. And the third region is the young generation, and you couple this with the second, I would say, trend. The younger generation during the lockdowns, they had like all of us, I guess, the screens in front of us. And they started in a way to play, of course, with skincare, which they did for years, with makeup less and less. And what, in a way, replaced, I would say, the makeup to [indiscernible] is fragrance discovery. And the Perfect by Marc Jacobs video is a good way to show you the way people were playing with fragrances. Fragrance become a way to say who you are, in fact. And this young generation is hungry for self-expression. And they overtook TikTok, everywhere around the world to, in a way, either rediscover things that were there for years, or to look for fragrances that speak to them that look like them, et cetera. So if you couple all these things together, for me, I don't see this at all as cyclical. I see it really as a structural change, putting back fragrances to where they are maybe a century ago, which were luxury items as coveted as an expensive fashion bag, I would say.

Step Wissink with Jefferies. I have a question, Gordon or Laurent for you first, is on the six pillars. I think, Gordon, you mentioned that they are margin and growth accretive, each of them. So the combination really drives you to the upper right of that heat map. I'm wondering if you can talk a little bit about that in relation to the mid-60s gross margin target. If you were to move higher faster, what would be the priority for reinvestment in the business versus pass through? How do you think about balancing those? And Sue, just a really quick question for you. One thing that struck me about all of the presentations today was this idea of permission to really build franchises and platforms versus items and trends. Talk a little bit about the philosophy of that as a business leader, leading Coty how you think about the permission to be in some of these new greenfield categories with these existing brands, franchises and platforms.

Yes. So your question on moving higher, faster was around moving the gross margin higher, faster. And it's really -- I don't want to isolate one single thing. I think it's really the combination of the different factors we talked about. So there was the notion of supply chain improvement, which we're working on very diligently that's coming automatically. I don't think you can really accelerate that it takes a certain time to get to that point. Then there's the factor around material cost. We're working very hard on that as well. I think that's happening as we speak. The one you could probably do more maybe and accelerate is the whole portfolio mix. So as we grow and are more successful in certain elements of the portfolio, that will drive gross margin. And then there was the one clearly around commercials, which is the pricing element. And I mentioned already, but we're stepping out our performance on rolling out price increases, and then that's something that we're very doing more than we initially anticipated, I think, which to one -- to something you will counteract the headwinds we're seeing out there, but that's an ongoing benefit. That's there to stay. And I think this new level of pricing diligence that we're building strategically into the company is something we can execute in the future year after year.

So to answer the question about the permission to go in these new categories, I guess, that you are referring to Prestige makeup or skincare, for example. So Prestige makeup, I think the team showed you that there were two areas where there is growth and where people are looking for brands, couture and indies. And we have both, in fact. We have some of the most desirable couture brands. And we have one of the most, I would say, the strongest, probably the most powerful indie brand when it comes to Kylie Cosmetics. So the permission is obvious there. There is no question. We just need to execute. And the good news, again, like Isabelle presented it, is that today, going on this market has nothing to do with going there just 5 or 6 or 7 years ago, where you had to open a lot of stores, where you had to operate today, the fact that consumers are more towards flagship stores, places that are becoming destinations, et cetera, who are partnering with us in the U.S. and worldwide. And on the other side, shopping online is in a way making this much quicker and much easier in terms of speed of going to the market. When it comes to skincare. Skincare is a very specific category. It's not a category that's driven by fashion names. You know that. It's really driven by innovation. Honestly, and this -- that's what gives me full confidence to push the whole teams, and you cannot imagine how we are trying to go faster and faster in this area to make it happen because we have this know-how. We have the people who understand the different trends, how to make them happen. And with the recent appointment of Constantin, that together with Isabelle -- sorry, with Andrew in the U.S., Caroline on Travel Retail, Guilhem in China, we have people who understand this business better than anyone else. Or maybe at the level of the best ones. So again, the permission there is really more about our capabilities than about the brands, but the brands are also there. So in a way, I haven't seen anything that prevent us to say we're going to do it. We have it.

It's Andrea Teixeira from JPMorgan. Definitely, I appreciate all the information and more visibility on the numbers. So I was thinking more like as you step back on the long-term algorithm and of course, the top line implies a faster acceleration to the EBITDA. How we should be thinking about reinvestment, right? I mean obviously, you've got amazing influencers. Skincare is something more unique for you now and obviously requires a lot of more capitalization and investments. So is fiscal '23 probably going to be more of a reinvestment year? And I appreciate that, obviously, this is part of the transformation process, but how we should be framing that in conjunction with your goal?

Maybe I'll start just to give a frame. And Laurent, you will complement, please. For me, it's never either. It's really both, honestly. It's really going to be investment and profitability and the demonstration that Laurent has been doing, showing the different KPIs between today and '25 and beyond, I think it's a great demonstration of this. So maybe Laurent, you can add on why this is not going to be a choice between one or the other?

Yes, absolutely. And the question you are raising is really the daily work we are doing. So it's really -- it's not even strategic, it's very operational. So again, I repeat and I also repeat every day to the team. So first, our job and again, with Gordon, is that we find the fuel. We find the money, so that's why the "all in to win" program is so important. So we are really getting this money. But again, in a way that it's not hurting the business. It's what Gordon was sharing is real savings, which are not going against the business. Then contemplating this money is allocating where we have a strong ROI. So it means also on your question, is there one year or more than -- another year? No. I mean we manage -- the algorithm is really even along by '25. So again, we are making choices. There are some areas where we need to invest more one year than another, but we do it really in a linear way.

Olivia Cheang with Raymond James. My first question is around your benchmarking versus peers. A lot of the focus today has been on how you performed versus your past. But how do you think your plans to compare versus your peers as you benchmark your innovation approach, your manufacturing infrastructure, your go-to-market infrastructure going forward? And do you think your near-term investment plans are enough and the current portfolio is enough? It seems like you're done with the divestitures or perhaps thinking about adding additional brands. And then the other thing that I wanted to better understand is, I think, the plan is for Consumer Beauty, the market share to be flattish. What I'm a little bit surprised about given COVERGIRL start, Max Factor and Rimmel, you're really at the beginning, why only growing in line with the market?

Let me just maybe try to make sure I got the first part of your question, Olivia. How do we compare versus our peers globally as a company and with the two divisions, correct? So in Consumer Beauty, we are again a key contender in the makeup area. And we are going now to start to think about how we can be present in the big, huge market of skincare, more than half of this business. So you've seen the pyramid that compares us to the other brands, and we are occupying all price tiers. And in a way, the work that we have done since one year is to make sure each and every brand is positioned either at the right price level or/and into a key trend of the market of today and tomorrow. And we have a very strong, I would say, nimbleness in this area because, again, Rimmel just two years ago was not at all what you have seen today in terms of positioning, neither COVERGIRL. COVERGIRL was about trying to mimic what some, I would say, darker niche brands in terms of almost gothic. We're doing with black packaging, et cetera, which was not the right direction, obviously, for these brands. So we really put back things to where they're supposed to be. And the idea is to say it has to be true to the story of the brand. It has to be true to what the brand is standing for and it has to fit in the key trends and in front of key competitors. So I think the pyramid was very clear in front of us, I'm not going to quote our competitors. They are listening to us. So I'm going to talk about our brands. So we are, in a way, occupying all key price tiers, all key price position. In Prestige, it's exactly the same, specifically on fragrances. On fragrances, the two missing parts that we had, even being the #1 fragrance maker are niche or high end, super high end, whatever is the name. And you've seen that we have, of course, into Gucci, into Burberry, great potential, but also with Chloé Atelier des Fleurs. I think for a lot of you because several times when I speak about this brand, people don't see what it looks like. Today, you've seen it, and you can really see that this occupies something that doesn't exist anywhere else. And that's -- a powerful brand is a brand that has a point of view in the world, an ideally unique point of view. And Chloé, specifically since Gabriela Hearst took over the fashion brand with her concept of responsible or sustainable desirability or desirable sustainability. This is perfect in terms of portfolio. And you've seen that we have Italian brands, German brands, American brands, British brands, French brands. So this is the way we build the portfolio. That, for me, honestly, has nothing to invite to our competitors. Last but not least, in skincare, you've seen the pyramid. And again, there, we have all price tiers because skincare is also a lot of question of high premium, superpremium, et cetera, but also key trends. And you have consumers around the world who are not looking for the same thing. They're all looking for results. That's for sure. Some of them wanted to be naturally ingredient driven. Some others are not afraid to try a bit aggressive ingredients. Some other are all about the latest hype, cocoa butter, whatever, et cetera. So -- and we make sure we position each and every brand across all tiers of pricing, but also across all trends. On the top of the pyramid was about ultra premium, which is the fastest-growing category in China. And people don't know, but it's not a tiny category like it is in some markets. It's really, if I'm not wrong, 30% to 40% of this market, which is huge. You see what I mean? And growing by double digits since forever, and I think forever. So there, in a way, if I compare also to the skincare best doers, I'm happy.

I think we'll just give a couple of...

Yes, absolutely. Thank you very much for your questions. Thank you, Gordon. Thank you, Laurent. So again, thank you for the great questions. I've really truly enjoyed presenting to you and listening to the great team that was here with us today. Honestly, it's reminded of where Coty was when I joined a little over a year ago and how much has changed, and I hope that you are feeling the same thing. In just a short year, we have not only put the company back on solid footing, but also carve the path to transform Coty into a true global beauty powerhouse. Coming away from today's presentations, I hope you share the conviction that I have in the comprehensive plans in place and also the tremendous progress that we've already made. So Gordon presented to you our transformation journey. And that the "all in to win" program is not just about cost cutting, but about unleashing Coty's growth potential through investment where we can add most value. Alexis and Stefano showed that our Consumer Beauty brand repositionings are taking hold with the Consumer Beauty portfolio gaining share in September for the first time in many years and position us to grow our Consumer Beauty sales in the low to mid-single digits. Isabelle and Constantin presented how we will accelerate the Prestige fragrances and how we will continue to capture opportunities within Prestige makeup and of course, Prestige skincare with our comprehensive brand portfolio with a target of high single-digit like-for-like sales growth going forward. Andrew showed us the great and growing power of Kylie and Kim Kardashian West beauty brands speaking to the immense opportunity ahead of us. Jean-Denis spoke about building our e-com and DTC expertise and capabilities where we are differentiating and leading in the growing areas of social commerce, live streaming, innovative content and next-gen DTC brands. Guilhem and Caroline outlined the incredible and huge growth momentum we are already seeing in China as we are growing at 4x the market, driven again by Prestige makeup and ultra premium fragrance offers. And we are targeting substantial growth going forward in Mainland China, in Hainan and of course, in Global Travel Retail. Finally, Laurent gave us the specifics on our long-term growth plan, how we'll continue to grow like-for-like sales at 6% to 8% ahead of the beauty market growth of 3% to 5% and at the same time, expanding gross margins, growing EBITDA 9% to 11%, growing EPS at over 30% through fiscal '25, and steadily deleveraging to reach our optimal leverage level of below 2x. What you should take away is this. Our turnaround has been a success. Every single member of this team has a proven track record of delivering results in their field of expertise and they are hungry to achieve more. They chose to join Coty because they believe in our story and want to be part of its future success. And this is it. We expect to outperform the beauty market through fiscal '25 and beyond. We have reclaimed our position as a true beauty powerhouse. This will now be lunch outside the hall followed by the breakout session starting at 12:30. Thank you very much for your attention. Thank you.