All-In to Win Transformation Program

PORTFOLIO OPTIMIZATION PROGRAM DRIVING GM TAIL-END SKU RATIONALIZATION ■ Removing non-productive SKUs ☐ ☐ Revenue neutral due to increased ☐ shelf productivity 2 Gross Margin Attack PLATFORMING Standardization of packaging types Rolling out winning innovations across consumer beauty brands ASSORTMENT MANAGEMENT Prioritization of competing SKUs with higher GM Optimizing SKU mix in planograms ☐ Status: Rationalization launched Aug 2020 ☐ Status: Being rolled out for color cosmetics ☐ Status: Implementation started Jul 2021 COTY Example: Color Cosmetics 100% 100% 65% 97% 35% 3% Example: Foundations Reduction of Tube shapes by -50% COVERGIRL со эмоотневе BB ORG RIMMEL 001 ULTIMATE KOHL KAJAL EYELINER/TRACEUR PEMENTE SKUs Net Sales ERPROOF KOHL Non-Productive Productive 55 OZ 1.6g From 6 tubes 15-40ml To 3 tubes 30ml Example: Rimmel Rimmel Ultimate Kohl Kajal RIMMEL LONDON SOFT KOHL KAJAL EYE UNER ENCL INTENSE SMOKEY Rimmel Soft Kohl Kajal Gross Margin: low Rotation: low 011 Crayon 004120 Soft Percifor Smokey Eye Laski BLENDABLE & LONG WEARING Gross Margin: high Rotation: high 8

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