Estee Lauder Companies, Inc. (the) · NYSE:EL
Estee Lauder Companies, Inc. (the) — The Estée Lauder Companies — DbACCESS Global Consumer Conference 2018
15 slides from Estee Lauder Companies, Inc. (the)'s conference presentation, Jun 12, 2018
Slide 1: DbACCESS Global Consumer Conference
DbACCESS GLOBAL CONSUMER CONFERENCE JUNE 12, 2018
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Some of our remarks contain forward-looking statements. Refer to our recent press releases, SEC filings and our website for factors that could cause actual results to differ materially from these forward- looking statements. Any forward-looking st
Slide 3: We Are A Growth Company In A Dynamic, Growing Industry
WE ARE A GROWTH COMPANY IN A DYNAMIC, GROWING INDUSTRY ELC is solely focused on prestige beauty Prestige beauty is one of the fastest growing HPC industries We have consistently outpaced the industry, gaining global share AVERAGE NET SALES GROWTH 2012-2017 7% 5% 1% GLOBAL PRESTIGE ESTĒE LAUDER S&P C
Slide 4: We Deploy Our Powerful Brand Portfolio Against The Best Opportunities
WE DEPLOY OUR POWERFUL BRAND PORTFOLIO AGAINST THE BEST OPPORTUNITIES PREMIUM CLASSIC PROGRESSIVE ENTRY PRICE POINT
Slide 5: Our Long-Term Strategy Powers Multiple Engines Of Growth
OUR LONG-TERM STRATEGY POWERS MULTIPLE ENGINES OF GROWTH BRAND GEOGRAPHY CATEGORY CHANNEL
Slide 6: Mix Shifting To High-Growth Channels
MIX SHIFTING TO HIGH-GROWTH CHANNELS OTHER FAST GROWING CHANNELS (TRAVEL RETAIL, SPECIALTY-MULTI, BRAND.COM) NORTH AMERICA DEPARTMENT STORES INTERNATIONAL DEPARTMENT STORES 28% 26% 26% 32% 22% 18% 24% 24% FY2016 FY2017 *Other includes salons, spas, military and pharmacies
Slide 7: A Digital-First Mindset Keeps Us Close To Consumers
A DIGITAL-FIRST MINDSET KEEPS US CLOSE TO CONSUMERS
Slide 8: Creativity And Innovation Underpin Our Success
CREATIVITY AND INNOVATION UNDERPIN OUR SUCCESS Building loyalty with quality products Innovating hero franchises Developing breakthrough formulations and packaging Creating trends Improving speed to market
Slide 9: Increasing Efficiency Fuels Reinvestment And Sustainable Margin Development
INCREASING EFFICIENCY FUELS REINVESTMENT AND SUSTAINABLE MARGIN DEVELOPMENT Leading Beauty Forward initiative • A growth program • Lowers overhead cost base / increases sales leverage • Funds priority investments • Annual net benefits $200M to $300M before tax
Slide 10: We Have Delivered Reliable, Balanced Sales Growth
WE HAVE DELIVERED RELIABLE, BALANCED SALES GROWTH AVERAGE ANNUAL SALES GROWTH IN CONSTANT CURRENCY FY2012 – FY2017 By Region By Category Americas Skin Care Makeup EMEA Fragrance APAC Hair Care Total Total 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Slide 11: We Have Delivered Reliable, Increasingly Profitable Growth
WE HAVE DELIVERED RELIABLE, INCREASINGLY PROFITABLE GROWTH Sales ANNUAL SALES AND EPS GROWTH IN CONSTANT CURRENCY EPS 25% 20% 15% 10% 5% 0% F2013 F2014 F2015 F2016 F2017 F2018E Adjusted for accelerated sales orders, restructuring and other charges and adjustments.
Slide 12: We Expect Strong Sales And Double-Digit EPS Growth To Continue
WE EXPECT STRONG SALES AND DOUBLE-DIGIT EPS GROWTH TO CONTINUE FISCAL 2018 LONG-TERM ESTIMATE TARGETS NET SALES GROWTH IN CONSTANT CURRENCY +11% TO +12% +6% TO +8% OPERATING MARGIN ~+50 BASIS POINTS ~+50 BASIS POINTS PER YEAR DILUTED EARNINGS PER SHARE $4.38 TO $4.42 ---- EARNINGS PER SHARE GROWTH I
Slide 13: Best-In-Class Return On Invested Capital
BEST-IN-CLASS RETURN ON INVESTED CAPITAL 5 Year Average ROIC 21.9% 14.6% 14.3% 14.0% 3.8% 1.6% Estee Lauder LVMH AmorePacific L'Oreal Shiseido Coty Source: FactSet.
Slide 14: Corporate Citizenship And Sustainability
CORPORATE CITIZENSHIP AND SUSTAINABILITY Strong social and environmental commitments Invest in communities and causes that create positive environmental and social impacts across signature giving areas Promote climate resilience by committing to net-zero emissions by 2020 Commitment to safety
Slide 15: Estee Lauder Companies
ESTEE LAUDER COMPANIES -
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