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

12 Months Ended

Jun. 30, 2024

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

Net income (loss) attributable to Coty Inc. common stockholders per common share (“basic EPS”) is computed by dividing net income (loss) attributable to Coty Inc. less any dividends on Series B Preferred Stock by the weighted-average number of common shares outstanding during the period.

Net income (loss) attributable to Coty Inc. common stockholders per common share assuming dilution (“diluted EPS”) is computed by adjusting the numerator used in basic EPS to add back the dividends applicable to the Series B Preferred Stock, if dilutive, and using the basic EPS weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period as the denominator. Potentially dilutive securities consist of non-qualified stock options, Series A Preferred Stock, RSUs, unvested restricted stock awards and potential shares resulting from the conversion of the Series B Preferred Stock as of June 30, 2024, 2023 and 2022.

Net income (loss) attributable to Coty Inc. is adjusted through the application of the two-class method of income per share to reflect a portion of the periodic adjustment of the redemption value in excess of fair value of the redeemable noncontrolling

interests. There is no excess of redemption value over fair value of the redeemable noncontrolling interests in fiscal 2024, 2023 and 2022. In addition, there are no participating securities requiring the application of the two-class method of income per share.

Reconciliation between the numerators and denominators of the basic and diluted EPS computations is presented below:


	Year Ended June 30,
	2024		2023		2022
Amounts attributable to Coty Inc.:
Net income (loss) from continuing operations	$	89.4	$	508.2	$	253.8
Convertible Series B Preferred Stock dividends	(13.2)		(13.2)		(198.3)
Net income (loss) from continuing operations attributable to common stockholders	76.2		495.0		55.5
Net income (loss) from discontinued operations, net of tax	—		—		5.7
Net income (loss) attributable to common stockholders	$	76.2	$	495.0	$	61.2
Weighted-average common shares outstanding:
Weighted-average common shares outstanding—Basic	874.4		849.0		820.6
Effect of dilutive stock options and Series A Preferred Stock (a)	0.1		—		—
Effect of restricted stock, PRSUs and RSUs (b)	8.9		13.8		13.5
Effect of Convertible Series B Preferred Stock (c)	—		23.7		—
Effect of Forward Repurchase Contracts (d)	—		—		—
Weighted-average common shares and common share equivalents outstanding—Diluted	883.4		886.5		834.1

Earnings (losses) per common share
Earnings from continuing operations per common share - basic	$	0.09	$	0.58	$	0.07
Earnings (losses) from continuing operations per common share - diluted (e)	$	0.09	$	0.57	$	0.07

Earnings from discontinued operations - basic	$	0.00	$	0.00	$	0.01
Earnings from discontinued operations - diluted	$	0.00	$	0.00	$	0.01

Earnings (losses) per common share - basic	$	0.09	$	0.58	$	0.08
Earnings (losses) per common share - diluted (e)	$	0.09	$	0.57	$	0.08

(a) As of June 30, 2024, 2023, and 2022, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 2.8 million, 4.8 million, and 8.3 million weighted average anti-dilutive shares of Common Stock, respectively, were excluded from the computation of diluted EPS.

(b) As of June 30, 2024, 2023, and 2022, there were 1.0 million, 3.2 million, and 1.6 million weighted average anti-dilutive RSUs, respectively, were excluded from the computation of diluted EPS.

(c ) As of June 30, 2024 and 2022, there were 23.7 million and 65.4 million dilutive shares of Convertible Series B Preferred Stock, respectively, were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive.

(d) For the twelve months ended June 30, 2024, potential shares for the Forward Repurchase Contracts were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the twelve months ended June 30, 2023, potential shares for the Forward Repurchase Contracts were excluded from the computation of diluted EPS as Coty is in the position to receive shares from the counterparties and as such their inclusion would be anti-dilutive.

(e) Diluted EPS is adjusted by the effect of dilutive securities, including awards under the Company's equity compensation plans, the convertible Series B Preferred Stock, and the Forward Repurchase Contracts. When calculating any potential dilutive effect of stock options, Series A Preferred Stock, restricted stock, PRSUs and RSUs, the Company uses the treasury method and the if-converted method for the Convertible Series B Preferred Stock and the Forward Repurchase Contracts. 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 $13.2, $13.2, and $198.3, respectively, and to reverse the impact of fair market value losses/(gains) for contracts with the option to settle in shares or

cash of $73.4, $(101.8), and $0, respectively, if dilutive, for the twelve months ended June 30, 2024, 2023, and 2022 on net income applicable to common stockholders during the period.