Estee Lauder Companies, Inc. (the) · NYSE:EL
Estee Lauder Companies, Inc. (the) — Investor Day (March 2019)
43 slides from Estee Lauder Companies, Inc. (the)'s investor day presentation, Mar 6, 2019
Slide 1: Brand Building: The Power of Our Portfolio
BRAND BUILDING: JOHN DEMSEY EXECUTIVE GROUP PRESIDENT THE POWER OF OUR PORTFOLIO ANDREW ROSS EXECUTIVE VICE PRESIDENT
Slide 2: Brand Building: The Power of Our Portfolio
BRAND BUILDING: THE POWER OF OUR PORTFOLIO JOHN DEMSEY EXECUTIVE GROUP PRESIDENT ANDREW ROSS EXECUTIVE VICE PRESIDENT
Slide 3: Our brand-building and brand-scaling track record is unparalleled
OUR BRAND-~$7B IN NET SALES BUILDING AND $1B+ $500M–$1B $100M–$500M <$100M BRAND-SCALING TRACK RECORD IS UNPARALLELED 2009
Slide 4: ~$7B to ~$14B+ in net sales, 2009 to 2019E
~$14B+ IN NET SALES ~$7B IN NET SALES $1B+ $500M–$1B $100M–$500M <$100M 2019E 2009
Slide 5: Leveraging our enduring strengths
CREATIVITY WE ARE ASPIRATIONAL BRAND PORTFOLIO BRAND BUILDING DISTRIBUTION CONSUMER LEVERAGING OUR ENDURING STRENGTHS… PRODUCT QUALITY
Slide 6: While enhancing them for the future
CREATIVITY DATA/CONSUMER INSIGHTS PRODUCT INNOVATION …WHILE ENHANCING ASPIRATIONAL BRAND PORTFOLIO BRAND BUILDING DISTRIBUTION CONSUMER THEM FOR THE FUTURE TALENT AND DIVERSITY OF EMPLOYEES DIGITAL-FIRST STORYTELLING PRODUCT QUALITY
Slide 7: Estée Lauder brand trial is an investment
ESTÉE LAUDER BRAND TRIAL IS AN INVESTMENT RETENTION COST RETENTION RATE 64% +25% QUALITY DRIVES REPEAT AND LOYALTY LOYALTY DRIVES PROFITABILITY LOWER COST VS. RECRUITMENT HIGHER THAN PRESTIGE BEAUTY BENCHMARKS SOURCE: BRAND ANALYSIS
Slide 8: Our mix of strengths enables creative connections
OUR MIX OF STRENGTHS ENABLES US TO MAKE CREATIVE CONNECTIONS IN NEW AND INNOVATIVE WAYS
Slide 9: Our mix of strengths
OUR MIX_OF STRENGTHS ENABLES US TO MAKE CREATIVE CONNECTIONS IN NEW AND INNOVATIVE WAYS
Slide 10: Product Innovation
PRODUCT INNOVATION
Slide 11: [LOGO]
[LOGO]
Slide 12: Commercial Activation
COMMERCIAL ACTIVATION
Slide 13: Commercial Activation
COMMERCIAL ACTIVATION
Slide 14: Commercial Agility
COMMERCIAL AGILITY
Slide 15: Commercial Agility
COMMERCIAL AGILITY
Slide 16: [LOGO]
[LOGO]
Slide 17: M·A·C Marrakesh
M·A·C MARRAKESH
Slide 18: Our global reach makes us unparalleled brand scalers
OUR GLOBAL REACH MAKES US UNPARALLELED BRAND SCALERS FY18 NET SALES BY REGION FY18 NET SALES BY DISTRIBUTION CHANNEL OTHER 3 ASIA/PACIFIC TRAVEL EUROPE, THE MIDDLE & AFRICA 1 EAST ONLINE 2 BRICK AND MORTAR FREESTANDING STORES 1 THE AMERICAS 2 (1) (2) INCLUDES FREE STANDING FORMATS INCLUDES BRAND.COM
Slide 19: Le Labo
LE LABO" GRASSE - NEW YORK Prcduct c nts, iampl;... 1 FINE FRAGRANCES BODY-HAIR -FACE GROOMING HOME CREATIONS ODDITIES GIFT SAMPLES VERVEINE 32 [lV1, -.l . l•c.en\HI • .,....,1• Il• LE LABO"
Slide 20: Jo Malone London scaling value
JO MALONE LONDON SCALING VALUE NET SALES, $US ~$700M $80M < DAY 2009 2019 REDEFINESOLFACTIVE ITSELF IN HOME INNOVATION MARKET (UK) AND LOCAL RELEVANCE TO CONTINUED INTERNATIONAL MARKET EXPANSION
Slide 21: We are strategic portfolio managers
WE ARE STRATEGIC PORTFOLIO MANAGERS
Slide 22: Net sales growth vs. global prestige beauty
NET SALES GROWTH VS. GLOBAL PRESTIGE BEAUTY ELC VS. GLOBAL PRESTIGE BEAUTY 1.4X 13% 1.9X (1) NON-GAAP; AVERAGE ANNUAL SALES GROWTH IN CONSTANT CURRENCY. SEE GAAP RECONCILIATION SOURCE: EUROMONITOR 3-YEAR FY15-18 1 9% 1-YEAR FY17-18
Slide 23: Dimensions of segmentation: category
DIMENSIONS OF SEGMENTATION CATEGORY
Slide 24: Dimensions of segmentation: geographic footprint
DIMENSIONS OF SEGMENTATION GEO GRAPHIC FO OTPRINT
Slide 25: Dimensions of segmentation: channel
DIMENSIONS OF SEGMENTATION CHANNEL
Slide 26: Dimensions of segmentation: demographics and inclusion
DIMENSIONS OF SEGMENTATION DEMO GRAPHICS AND INCLUSION
Slide 27: Dimensions of segmentation: price segment
DIMENSIONS OF SEGMENTATION PRICE SEGMENT
Slide 28: Dimensions of segmentation: psychographics
DIMENSIONS OF SEGMENTATION PSYCHO GRAPHICS
Slide 29: 10-year compass and 3-year rolling strategy
10-YEAR COMPASS 3-YEAR ROLLING CORPORATE STRATEGY 3-YEAR ROLLING BRAND/REGION/ FUNCTION STRATEGIES AND 1-YEAR EXECUTION PLANS
Slide 30: Creating value from acquired brands is part of our DNA
NET SALES GROWTH FROM 2009-2019E HOMEGROWN BRANDS CREATING VALUE FROM ACQUIRED BRANDS IS PART OF OUR DNA ACQUIRED BRANDS* *BRANDS ACQUIRED SINCE 1994
Slide 31: >21% ROIC on acquisitions since 1994
>21% RETURN ON INVESTED CAPITAL (ROIC) ON ACQUISITIONS SINCE 1994
Slide 32: Expansion into new channels
EXPANSION INTO NEW CHANNELS ACQUISITIONS ARE PART OF OUR DISCIPLINED APPROACH TO STRATEGIC PORTFOLIO MANAGEMENT
Slide 33: Ultra prestige fragrance leadership
ULTRA PRESTIGE FRAGRANCE LEADERSHIP ACQUISITIONS ARE PART OF OUR DISCIPLINED APPROACH TO STRATEGIC PORTFOLIO MANAGEMENT
Slide 34: Incubation/minority investments in new geographies
INCUBATION/MINORITY INVESTMENTS IN NEW GEOGRAPHIES ACQUISITIONS ARE PART OF OUR DISCIPLINED APPROACH TO STRATEGIC PORTFOLIO MANAGEMENT
Slide 35: Every acquisition enhances our capabilities: color development expertise
EVERY ACQUISITION ENHANCES OUR CAPABILITIES COLOR DEVELOPMENT EXPERTISE
Slide 36: Every acquisition enhances our capabilities: consumer engagement
EVERY ACQUISITION ENHANCES OUR CAPABILITIES CONSUMER ENGAGEMENT Liked by 19,716 others
Slide 37: Every acquisition enhances our capabilities: consumer engagement
EVERY ACQUISITION ENHANCES OUR CAPABILITIES CONSUMER ENGAGEMENT
Slide 38: Every acquisition enhances our capabilities: speed to market
EVERY ACQUISITION ENHANCES OUR CAPABILITIES SPEEDTO MARKET
Slide 39: Every acquisition enhances our capabilities: scaling international brands
EVERY ACQUISITION ENHANCES OUR CAPABILITIES SCALING INTERNATIONAL BRANDS
Slide 40: New brands: differentiated and empowered
NEW BRANDS DIFFERENTIATED AND EMPOWERED CONNECTED TO CORE AND NEW CAPABILITIES AND GLOBAL REACH
Slide 41: Brand builders, scalers, innovators, portfolio managers, acquirers
BRAND BRAND BUILDERS SCALERS PRODUCT AND QUALITY INNOVATORS STRATEGIC PORTFOLIO MANAGERS PROVEN ACQUIRERS
Slide 42: Forward-looking information and non-GAAP disclosures
FORWARD-LOOKING INFORMATION AND NON-GAAP DISCLOSURES Statements in the Investor Day presentations, 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 a
Slide 43: Forward-looking information and non-GAAP disclosures
FORWARD-LOOKING INFORMATION AND NON-GAAP DISCLOSURES Statements in the Investor Day presentations, 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 a