Hello, everyone, welcome to the prepared remarks portion of Coty's Second Quarter Fiscal 2024 Earnings. On Thursday, February 8th, 2024, at approximately 8.15 a.m. Eastern Time or 2.15 p.m. Central European Time, we will hold a separate live Q&A session on our results, which you can access via our Investor Relations website. Joining me for our presentation are Sue Nabi, Coty’s CEO, and Laurent Mercier, Coty’s CFO. Before I hand the call over to Sue, I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty’s earnings release and the reports filed with the SEC, where the company lists factors that could cause actual results to differ materially from these forward-looking statements. In addition, except noted, the discussion of Coty’s financial results and Coty’s expectations reflect certain adjustments as specified in the non-GAAP financial measures section of the company's release. Thank you. I will now turn it over to our CEO, Sue Nabi.

Thank you, Olga. Welcome, everyone. The strength of our Q2 and first half results reinforce several of our convictions, including: Number one, the attractiveness of the beauty market; two, the strength of our brands; and number three, Coty's transformed and industry-leading capabilities and of course our disciplined financial execution. The momentum of the global beauty market in the midst of geopolitical and macroeconomic disruptions confirms that consumers continue to gravitate and prioritize beauty as a fundamental pillar in their well-being. At the same time, our amazing brands and our industry-leading capabilities are enabling Coty to bring exceptional innovations to the market which further strengthen consumers' desire for beauty. We are continuing to deliver on our balanced growth agenda, with like-for-like growth in both Prestige and Consumer Beauty, in each of our regions, in each of our categories of fragrances, cosmetics, skincare bodycare, and across volumes, price and mix. As a result, we are once again outperforming the beauty market. And this growth is accompanied by strong and disciplined financial delivery, as we generate robust profit growth, operating and EBITDA margin expansion, free cash flow, and deleveraging progress. We therefore continue to target sales growth that is ahead of the beauty market, growing our profit ahead of sales, steadily deleveraging our balance sheet, and positioning the company as a beauty powerhouse with still significant untapped potential. Let me summarize the key messages from our results. First, we continued tdeliver market leading revenue growth ahead of both expectations and raised guidance for the first half of fiscal 2024, fueled by the strength of the beauty category and Coty’s successful icons and top notch innovations. Our like-for-like revenues grew 11% in Q2 and 14% in the first half, which was ahead of our updated first half 2024 guidance of 11 to 13% growth.…

Thank you, Sue. In the current macroeconomic environment, I am pleased to share that we continued to deliver strong financial performance, with the Q2 results marking the 14th consecutive quarter of operational results in-line to ahead of expectations. Let’s begin with an update on how we’re managing the global supply chain, as well as our visibility in to the inflationary environment. In Q2, Prestige and Consumer Beauty service levels remained very strong at approximately 96%. And, as anticipated, COGS inflation moderated quarter-over-quarter and was in line with our expectations, benefitting from stabilization in commodities and transportation inflation. We have been balancing these inflationary impacts through a combination of our execution on premiumization, mix management, and productivity, complemented by price increases. In the second half of fiscal 2024, we continue to expect COGS inflation to ease significantly, with the main inflationary remnant being general inflation. It’s important to note that with the significant moderation in inflation, we will be very limited and targeted on any future price increases. Finally, with the conflict in the Red Sea dominating headlines, it’s important to highlight that we currently see limited risk from this as we have been using alternate routes and purchasing some safety stock. This inventory build does represent a moderate headwind to our free cash flow expectations for the year. I will now provide an update on our All-in-to-Win program. In the second quarter, we delivered savings of approximately $30 million, bringing our fiscal year-to-date total savings to approximately $65 million. Due to our very strong project pipeline, we are increasing our target for savings in fiscal 2024 to $110 million, $120 million from our previous outlook of over $100 million. The savings are driven by material cost savings, structural A&CP savings and trade investment. Importantly, the increased savings are helping us…

Thank you, Laurent. Let me take a few minutes to discuss the progress we continue to make on our six strategic pillars. Starting with our first strategic pillar, which is, stabilizing and growing our Consumer Beauty business. In Q2, our Consumer Beauty revenues grew 5% like-for-like, bringing the growth in the first half to 7% like-for-like. This is in line with the global mass beauty market, which similarly grew in the mid-single digits percentage. We once again benefitted from the diversification of our Consumer Beauty portfolio, as we delivered solid growth across our categories: color cosmetics, lifestyle fragrances and skin and bodycare. Our presence across multiple mass beauty categories is allowing us to capitalize on the tailwinds in both mass fragrances and bodycare, contributing to double-digit percentage growth in our brands Beckham, Jovan, Monange and Bozzan. We delivered solid revenue growth in color cosmetics, even as the market growth has been normalizing closer to the low-single-digit percentage growth seen in the pre-COVID period. Importantly, cosmetics category growth remains robust in the e-commerce channel, growing in the mid-teens. And in this outperforming channel, I am happy to share that our leading cosmetics brands are gaining market share, including CoverGirl, Rimmel and Sally Hansen. Now let me turn to disruptive innovation we’ve recently launched under CoverGirl. The CoverGirl Simply Ageless Skin Perfector Essence foundation marks a new milestone in CoverGirl’s leadership in skinified makeup, by offering a serum texture with skincare ingredients and pigmented foundation capsules. This is the first-to-mass product whose distinctiveness is immediately visible. It is therefore the perfect launch to complement our significantly accelerated influencer strategy. As we discussed on the last quarter’s earnings call, we are actively step-changing our social media reach in order to drive our brands and build stronger community engagement, underpinned by disruptive innovation. While…