Certain statements in this communication are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Coty Inc.’s (“Coty’s”) current views with respect to, among other things, the consummation of the transactions with Burberry (the “Transactions”), the future performance and expected growth of Burberry Beauty and Coty and its luxury fragrance portfolio, and Coty’s ability to support its planned business operations on a near- and long-term basis. These forward-looking statements are generally identified by words or phrases, such as “anticipate”, “estimate”, “plan”, “project”, “expect”, “believe”, “intend”, “foresee”, “forecast”, “look forward”, “will”, “may”, “should”, “outlook”, “continue”, “target”, “aim” and similar words or phrases.
These statements are based on certain assumptions and estimates that Coty considers reasonable and are subject to a number of risks and uncertainties, many of which are beyond the control of Coty, which could cause actual events or results to differ materially from such statements, including, but not limited to:
- Coty’s ability to achieve its global business strategy, compete effectively in the beauty industry and achieve the benefits contemplated by the transaction with Burberry within the expected time frame;
- managerial, integration, operational, regulatory, legal and financial risks and expenses associated with Coty’s strategic transactions and internal reorganizations generally and the Transactions specifically;
- Coty, its other brand partners and licensors’, and Burberry’s ability to obtain, maintain and protect their respective intellectual property rights, including trademarks, brand names and other intellectual property used in their respective businesses and products and Burberry Beauty and their abilities to protect their respective reputations and defend claims by third parties for infringement of intellectual property rights;
- the distribution and sale by third parties of counterfeit and/or gray market versions of Coty’s products and Coty’s effectiveness in reducing such distribution and sale;
- Coty’s and Burberry’s ability to anticipate, gauge and respond to market trends and consumer preferences, which may change rapidly, and the market acceptance of new products;
- Coty’s ability to manage seasonal variability;
- the integration of The Procter & Gamble Company’s global fine fragrances, salon professional, cosmetics and retail hair color businesses along with select hair styling brands with Coty’s legacy business, operations, systems, financial data and culture and the ability to realize synergies and other potential benefits within the time frames currently contemplated;
- changes in law, regulations and policies that affect Coty’s business or products;
- Coty’s ability to successfully execute its announced intent to divest or discontinue non-core brands and to rationalize wholesale distribution by reducing the amount of product diversion to the value and mass channels;
- risks related to Coty’s international operations and joint ventures, including reputational, compliance, regulatory, economic and foreign political risks;
- Coty’s dependence on certain licenses, entities performing outsourced functions and third-party suppliers, including third party software providers;
- administrative, development and other difficulties in meeting the expected timing of market expansions, product launches and marketing efforts;
- global political and/or economic uncertainties or disruptions;
- increased competition, consolidation among retailers, shifts in consumers’ preferred distribution channels and other changes in the retail, e-commerce, and wholesale environment in which we do business and sell our products;
- disruptions in operations, including due to disruptions or consolidation in supply chain, manufacturing rights or information systems, labor disputes and natural disasters; and
- Coty’s ability to attract and retain key personnel.
More information about potential risks and uncertainties that could affect the Coty’s business and financial results is included under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Coty’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017 and other periodic reports Coty has filed and may file with the SEC from time to time.
All forward-looking statements made in this communication are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this communication, and Coty does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.