Estee Lauder Companies, Inc. (the) · NYSE:EL
Estee Lauder Companies, Inc. (the) — The Estée Lauder Companies — Shareholder Meeting (2020)
39 slides from Estee Lauder Companies, Inc. (the)'s shareholder meeting presentation, 2020
Slide 1: Annual Meeting of Stockholders 2020
ESTEE LAUDER COMPA ‘ ANNUAL MEETING OF STOCKHOLDERS 2020
Slide 2: Agenda
AGENDA + Introductions by William P. Lauder, Executive Chairman + Meeting Formalities + Items of Business o Election of Class Ill Directors o Ratification of the Appointment of PricewaterhouseCoopers LLP as Independent Auditors o Advisory Vote to Approve Executive Compensation * Report on Vote + Adj
Slide 3: Forward-Looking Information
FORWARD-LOOKING INFORMATION Statements in this presentation, including remarks by the CEO and other members of management, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may address our expectations regarding sale
Slide 4: Non-GAAP Disclosures
NON-GAAP DISCLOSURES Presentation materials include non-GAAP financial measures and adjustments relating to: constant currency; charges associated with restructuring and other activities; goodwill and other intangible asset impairments; and changes in the fair value of contingent consideration. Fisc
Slide 5: Executive Chairman William P. Lauder
ESTEE LAUDER COMPANIES EXECUTIVE CHAIRMAN WILLIAM P. LAUDER EXECUTIVE CHAIRMAN
Slide 6: D-19 RELIED Doctors Withc
D-19 RELIED Doctors Withc
Slide 7: The Estee Lauder Companies Stands with the Black Community
THE ESTEE LAUDER COMPANIES STANDS WITH THE BLACK COMMUNITY WE SIAND WITH THE BLACK COMMUNITY. THIS IS HOW. Read the letter from William P. Lauder, Executive Chairman, and Fabrizio Freda, President and CEO, at ELCompanies.com ESTEE wa eas
Slide 8: A Culture of Belonging & Commitment to Social Impact
A CULTURE OF BELONGING & COMMITMENT TO SOCIAL IMPACT ESTEE civic LAUDER | qlliance | ~ TIME OFF TO ESTEE Deas #WorldAiDsDay [ia
Slide 9: Years of the Breast Cancer Campaign
28 YEARS OF THE BREAS P CANCER CAMPAL GN OSING BEL M a E i if EL LISTED ESTEE LAUDER COMPANIES LISTED BREAST CANCER CAMPAIGN \ es <i fy (-- a} apa Xe + Hope for a cure unites us all a #Timelok ndBreastCancer 28° gal “a
Slide 10: Recognition of Excellence
RECOGNITION OF EXCELLENCE Forbes | 2020 a THE BEST national partnership EMPLOYERS for women & families for AST POWERED BY STATISTA E BEST tomer | PLACES TO WORK 2020 | for LGBTQ Equality 100% CORPORATE EQUALITY INDEX i Bloomberg f Ky Gender-Equality ; MOTHER Human R uman OUrCce. Execut ecutive BEST
Slide 11: INTERNAL
INTERNAL
Slide 12: Fiscal 2020: A Year Without Parallel
ESTEE LAUDER COMPANIES FISCAL 2020: A Y WI HOUT FABRIZIO FREDA PRESIDENT AND CHIEF EXCECUTIVE OFFICER PARALL FAR EL
Slide 13: Fiscal 2020 Spotlight
FISCAL 2020 . SPOTLIGHT » “Ss CREME DE LA MER™ LA MERD + Gained share in global prestige beauty moisturizing cream 2 régénération intense + Strengthened leadership in Travel Retail + Online business surged worldwide + Innovation exceeded 25 percent of sales + Net sales increased in Skin Care and Asi
Slide 14: Fiscal 2020 Financial Results
FISCAL 2020 FINANCTAL RESULTS FISCAL 2020 VERSUS PRIOR YEAR NET SALES® $14.3 BILLION (Change In Constant Currency) -3% OPERATING MARGIN 14.7% -280 Basis Points NET EARNINGS” (Change In Constant Currency) $1.5 BILLION -23% EARNINGS PER SHARE” $4.12 22% (Change in Constant Currency) CASH FLOW FROM OPE
Slide 15: Fiscal 2020 Financial Results
FISCAL 2020 FINANCTAL RESULTS WE WERE ON TRACK FOR ANOTHER OUTSTANDING YEAR FIRST HALF CHANGE SECOND HALF CHANGE F¥2020 FULL YEAR CHANGE IN CONSTANT CURRENCY IN CONSTANT CURRENCY IN CONSTANT CURRENCY 21% 21% : LJ LJ LJ L 3% ] ya 19% 20% 22% 73% 84% 1) NersAtes TE (OPERATING INCOME ees Note: Non-GAAP
Slide 16: Fiscal 2020 Stockholder Value Created
FISCAL 2020 STOCKHOLDER VALUE CREATED TOTAL STOCKHOLDER RETURN 12 MONTHS ENDED JUNE 30, 2020 + Market capitalization rose 3 percent 75% + $893 million in share repurchases + $503 million paid in dividends, rate increased 12 percent 3.8% 3.6% THE ESTEE LAUDER COMPANIES: S&P 500 S&P CONSUMER STAPLES
Slide 17: Slide 17
Slide 18: Fiscal 2021 First Quarter Financial Results
FISCAL 2021 FIRST QUARTER FINANCIAL RESULTS FISCAL 2021 FIRST QUARTER | VERSUS PRIOR YEAR NET SALES (Change In Constant Currency) $3.6 BILLION “% OPERATING MARGIN® 20.0% -60 Basis Points NET EARNINGS® (Change In Constant Currency) $0.5 BILLION 14% EARNINGS PER SHARE® 14% (Change In Constant Currency
Slide 19: Prestige Beauty Is One of the Most Attractive Consumer Segments
PRESTIGE BEAUTY IS ONE OF THE MOST AT GRACTIVE CONSUMER SEGMENTS Affordable tuxury 1 ESTEE : High Quality Brands Bae LAUDER Ee Premium Pricin Replenishment COMPANIES 8
Slide 20: We Are the Best Diversified Pure Play
WE ARE THE BEST. DIVERSTFTIED PURE PLAY SOLELY FOCUSED ON PRESTIGE BEAUTY We are well diversified by: + Brands + Categories and Sub-Categories + Geographies + Channels + Consumer Segments + Price Points
Slide 21: Our Diverse Brand Portfolio Allows Us to Compete Effectively
OUR DIVERSE BRAND PORTFOLIO ALLOWS US TO COMPETE EEFECTIVELY Skin Care Makeup Fragrance Hair Care ESTEE LAUDER (TOM TEDRD BEAT | et ee Jo MALONE PLAMER BOBBI BROWN tomer LE LABO CLIN IQUE Foo Face! Fe saass E AVEDA Bumble and bumble. Dr.Jart+ 2 DARPHIN FREDERIC MALLE smashbox ESTEE LAUDER ‘ ORIGINS
Slide 22: We Are a Leader in E-Commerce
WH ARE A LEADER IN E-COMMERCE + Investing for ~25 years + Brand sites in >50 countries + Direct to consumer, retailer.com and Pureplay + Valuable media platforms + About 50 percent growth in FY20 + E-commerce comprises ~40 percent of sales in key markets + COVID-19 accelerated online adoption among
Slide 23: Social Media Has Driven Strong Consumer Engagement
SOCTAL MEDIA HAS DRIVEN STRONG CONSUMER ENGAGEMENT + Incredible consumer reach + Higher ROI + Enables clientelling + High-Touch services + Shoppable
Slide 24: Innovation Powered by Data Analytics and Consumer Insights
) INNOVATION as he POWERED BY DATA pS ANALYTICS AND = CONSUMER INSIGHTS “ [ + 25 percent to 30 percent of sales + Superb product quality & ey + Focus on hero franchises, local relevance, & ORIGINS and best global opportunities Aes Mei GINZING + Improved speed to market Ke. Xe Teo ake Glee \ Brighten
Slide 25: Lauder Advanced
LAUDER Advanced
Slide 26: The Concentrate
THE CONCENTRATE LE CONCENTRE
Slide 27: Clinique Even Better Clinical
CLI even belle clinical — radical dark spot corrector + interrupter anti-tache radical correcteur + interruptey 01802 EQUALIZER TECHNOLOG' TECHNOLOGIE CL302 EQUALISEU
Slide 28: INTERNAL
INTERNAL
Slide 29: Bobbi Brown Intensive Skin Serum
INTERNAL NEED BOBBI INTENSIVE SKIN SERUM MAKEUP BELOW
Slide 30: Tom Ford Rose Prick
INTERNAL NEED TOM FORD ROSE PRICK
Slide 31: Jo Malone London Poppy and Barley
INTERNAL NEED JML POPPY AND BARLEY
Slide 32: INTERNAL
INTERNAL
Slide 33: Aveda Botanical Repair
AVEDA botanical repair in ive ing masque om the insidepu botanical
Slide 34: Bumble & bumble Curl
INTERNAL , Bumble & bumble Curl
Slide 35: Beauty Inspired, Values Driven
THE ESTEE LAUDER COMPANIES INC BEAUTY INSPIRED, VALUES DRIVEN OUR FISCAL 2020 CITIZENSHIP AND SUSTAINABILITY REPORT
Slide 36: Progress On
~ » ee ia - PROGRESS ON
Slide 37: Commitments to Our Employees and Black Consumers
WEMA BLACK DE STRONG COMMITMENTS TO OUR EMPLOYEES AND BLACK CONSUMERS TO WORK TOWARD RACIAL EQUALITY WITHIN OUR COMMUNITIES AND AS A COMPANY TO ACHIEVE RACIAL EQUITY WITHIN OUR ORGAMZATION.
Slide 38: Five Year Total Shareholder Return
FIVE YEAR TOTAL SHAREHOLDER RETURN =EL =S&P500 —S&P CONSUMER STAPLES 200 vo 42% 100 JUN-2015 JUN-2016 JUN-2017 JUN-2018 JUN-2019 JUN-2020. STANDARD & POORS $100 INVESTED ON 6/30/15 IN STOCK OR INDEX, INCLUDING REINVESTMENT OF DIVIDENDS.
Slide 39: INTERNAL
INTERNAL
The Estée Lauder Companies — Shareholder Meeting (2020) on 6ix