NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE

9 Months Ended

Mar. 31, 2022

NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE

Reconciliation between the numerators and denominators of the basic and diluted income per share (“EPS”) computations is presented below:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2022		2021		2022		2021

Amounts attributable to Coty Inc.:
Net income from continuing operations	$	52.9	$	32.9	$	536.5	$	132.9
Convertible Series B Preferred Stock dividends	(3.3)		(34.1)		(195.0)		(78.1)
Net income from continuing operations attributable to common stockholders	49.6		(1.2)		341.5		54.8
Net income from discontinued operations, net of tax	0.7		(17.3)		4.5		(148.2)
Net income (loss) attributable to common stockholders	$	50.3	$	(18.5)	$	346.0	$	(93.4)

Weighted-average common shares outstanding:
Weighted-average common shares outstanding—Basic	838.4		765.4		814.8		764.6
Effect of dilutive stock options and Series A Preferred Stock (a)	—		—		—		—
Effect of restricted stock and RSUs (b)	14.5		—		12.7		5.4
Effect of Convertible Series B Preferred Stock (c)	—		—		—		162.1
Weighted-average common shares outstanding—Diluted	852.9		765.4		827.5		932.1

Earnings per common share:
Earnings from continuing operations per common share - basic	$	0.06	$	—	$	0.42	$	0.07
Earnings from continuing operations per common share - diluted (d)	0.06		—		0.42		0.07

Losses from discontinued operations - basic	—		(0.02)		—		(0.19)
Losses from discontinued operations - diluted	—		(0.02)		—		(0.19)

Earnings (losses) per common share - basic	0.06		(0.02)		0.42		(0.12)
Earnings (losses) per common share - diluted(d)	0.06		(0.02)		0.42		(0.12)

(a) For the three months ended March 31, 2022, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 6.6 million weighted average shares of Common Stock, were anti-dilutive and excluded from the computation of diluted EPS. For the three months ended March 31, 2021, there were outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase shares of Common Stock were excluded in the computation of diluted loss per share due to the net loss incurred during the period. For the nine months ended March 31, 2022 and 2021, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 8.9 million and 15.4 million weighted average shares of Common Stock, respectively, were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive.

(b) For the three months ended March 31, 2022, there were 0.7 million weighted average anti-dilutive RSUs, excluded from the computation of diluted EPS. For the three months ended March 31, 2021, RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. For the nine months ended March 31, 2022 and 2021, there were 2.3 million and 6.2 million weighted average anti-dilutive RSUs, respectively, excluded from the computation of diluted EPS.

(c) For the three months ended March 31, 2022, there were 23.7 million dilutive shares of Convertible Series B Preferred Stock excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the three months ended March 31, 2021, Convertible Series B Preferred Stock shares were excluded from the computation of diluted EPS due to the net loss incurred during the period. For the nine months ended March 31, 2022, and 2021, there were 79.2 million and 0.0 million, respectively, weighted average dilutive shares of Convertible Series B Preferred Stock excluded from the computation of diluted EPS as their inclusion would be anti-dilutive.

(d) Diluted EPS is adjusted by the effect of dilutive securities, including awards under the Company's equity compensation plans and the convertible Series B Preferred Stock. When calculating any potential dilutive effect of stock options, Series A Preferred Stock, restricted

stock and RSUs, the Company uses the treasury method and the if-converted method for the Convertible Series B Preferred Stock. The treasury method typically does not adjust the net income attributable to Coty Inc., while the if-converted method requires an adjustment to reverse the impact of the preferred stock dividends of $3.3 and $34.1 for the three months ended March 31, 2022 and 2021, respectively, and $195.0 and $78.1 for the nine months ended March 31, 2022 and 2021, respectively, on net income applicable to common stockholders during the period.