Estee Lauder Companies, Inc. (the) · NYSE:EL
Estee Lauder Companies, Inc. (the) — The Estée Lauder Companies — Investor Presentation (May 2019)
20 slides from Estee Lauder Companies, Inc. (the)'s investor presentation, May 28, 2019
Slide 1: Estée Lauder Companies: The Best Diversified Pure Play
ESTÉE LAUDER COMPANIES: THE BEST FABRIZIO FREDA PRESIDENT AND DIVERSIFIED CHIEF EXECUTIVE OFFICER PURE PLAY
Slide 2: 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 3: 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; changes in the fair value of contingent consideration; the tran
Slide 4: Prestige Beauty Is One of the Most Attractive Consumer Segments
PRESTIGE BEAUTY IS ONE OF THE MOST ATTRACTIVE CONSUMER SEGMENTS Market Leading Aspirational Brands Repurchase Rates Affordable Luxury Pricing Power
Slide 5: We Are the Best Diversified Pure Play
WE ARE THE BEST DIVERSIFIED PURE PLAY Solely focused on prestige beauty We are well diversified by: Brands Categories Geographies Channels Consumer Segments Price Points
Slide 6: Diversity of Growth
DIVERSITY OF GROWTH COUNTRIES LEADERSHIP IN SKIN BRANDS REPRESENTING LEADING IN FAST REPRESENTING HALF OF CARE, MAKEUP & >70% OF SALES GROWING TRAVEL RETAIL SALES GROWING >6% LUXURY/ARTISANAL GROWING >6% AND ONLINE CHANNELS FRAGRANCE
Slide 7: Global Prestige Beauty Is Growing Fast
GLOBAL PRESTIGE BEAUTY IS GROWING FAST CONSUMER STAPLES GLOBAL PRESTIGE BEAUTY 13% 9% 7% 7% 7% 7% 7% 7% 6% 6% 5% 5% 5% 5% 3% 3% 2% -2% FY14 FY15 FY16 FY17 FY18 FY19E -2% (1) Consumer Staples represents S&P Consumer Staples Index (FactSet). (2) Prestige Beauty represents 2017 Euromonitor premium frag
Slide 8: ELC Has Grown Even Faster
ELC HAS GROWN EVEN FASTER CONSUMER STAPLES GLOBAL PRESTIGE BEAUTY ELC 13% 11% 7% 7% 7% 7% 7% 7% 6% 6% 5% 5% 5% 5% 3% 3% 2% -2% FY14 FY15 FY16 FY17 FY18 FY19E -2% (1) Consumer Staples represents S&P Consumer Staples Index (FactSet). (2) Prestige Beauty represents 2017 Euromonitor premium fragrance, p
Slide 9: North America as a Granular Emerging Region; Our Five Growth Drivers
NORTH AMERICA AS A GRANULAR EMERGING REGION OUR FIVE GROWTH DRIVERS WIN WITH MORE CONSUMERS CHANGING DISTRIBUTION EQUILIBRIUM TARGETED MEDIA INVESTMENT AGILE, EMPOWERED ORGANIZATION BREAKTHROUGH INNOVATION
Slide 10: Managing Investments with Agility
MANAGING INVESTMENTS WITH AGILITY USD$ billions, FY09-FY19E GROWTH DRIVEN BY GROWTH GROWTH DRIVEN BY INCREASE IN CONTRACTION IN BECCA / TOO FACED CHINESE CONSUMERS AND DRIVEN CONSUMER PULL ADVERTISING CHINESE SPENDING ACQUISITIONS INCREASED ADVERTISING BY EL & MAC AVERAGE ANNUAL SALES GROWTH(1) +5%
Slide 11: Prestige Beauty Tailwinds Continue
PRESTIGE BEAUTY TAILWINDS CONTINUE FAVORABLE DYNAMICS FUEL GLOBAL PRESTIGE DEMOGRAPHIC BEAUTY DIGITAL GROWTH SHIFTING OPPORTUNITIES + REVOLUTION + CONSUMER PREFERENCE
Slide 12: A Strong Brand Building Model
A STRONG BRAND BUILDING MODEL DEVELOPING SCALING LARGE LESS THAN $500M $500M-$1B GREATER THAN $1B NET SALES NET SALES NET SALES ALL OTHER BRANDS
Slide 13: Innovation Powered by Data Analytics and Consumer Insights
INNOVATION POWERED BY DATA ANALYTICS AND CONSUMER INSIGHTS Record ~30% of net sales Increasing success rate Focus on hero franchises, local relevance, and best global opportunities Improved speed to market Superb product quality
Slide 14: Transformed Our Cost Structure to Support Growth
TRANSFORMED OUR COST STRUCTURE TO SUPPORT GROWTH OPERATING MARGIN & COST STRUCTURE OPERATING INCOME % of Net Sales, FY09 & FY18 USD$ billions, FY09 & FY18 OPERATING MARGIN 7.0% 9.6% 16.6% COST OF 25.6% GOODS SOLD 5.0% 20.6% $2.3 MEDIA & PROMOTIONAL EXPENSE 25.2% 0.4% 25.6% >4X OTHER OPERATING EXPENS
Slide 15: We Will Continue to Adapt
WE WILL CONTINUE TO ADAPT INA FAST CHANGING ENVIRONMENT RUN TO WIN, TRANSFORM TO LEAD
Slide 16: Expect Strong Sales and Double-Digit EPS Growth to Continue
EXPECT STRONG SALES AND DOUBLE-DIGIT EPS GROWTH TO CONTINUE FISCAL 2019 LONG-TERM ESTIMATE TARGETS (2) Net Sales Growth In Constant Currency(1) +10% to +11% +6% to +8% ~+50 Basis Points Operating Margin(1) ~+50 Basis Points Per Year Diluted Earnings Per Share(1) $5.15 to $5.19 Earnings Per Share Gro
Slide 17: Sustainability goals: packaging and emissions targets
75-100% Set a science- recyclable, Glossary of key based target refillable, ingredients covering our reusable, online by the Scopes 1,2, and recycled or end of 2025 3 em issions by recoverable, the end of 2020 packaging by the end of 2025
Slide 18: ELC Citizenship & Sustainability Awareness Increasing
ELC CITIZENSHIP & SUSTAINABILITY AWARENESS INCREASING ELC launched The Breast Cancer Campaign was sustainability goals accepted into the Smithsonian on Investor Day. National Museum of American Research LLC (March, History. 2019). ELC has been recognized as the 2nd largest ELC named to 2019 100 sust
Slide 19: Created $56B of Stockholder Value Since 2009
CREATED $56B OF STOCKHOLDER VALUE SINCE 2009 EL S&P 500 S&P CONSUMER STAPLES PEER AVERAGE 1060% 478% 283% 229% 30-Jun-09 30-Jun-10 30-Jun-11 29-Jun-12 28-Jun-13 30-Jun-14 30-Jun-15 30-Jun-16 30-Jun-17 29-Jun-18 21-May-19 Marke t C apitalizatio n $6B $61B FactSet: as of 5/21/19. Peers represents , LV
Slide 20: Best Diversified Pure Play
WE ARE THE BEST DIVERSIFIED PURE PLAY For sustainable, profitable long- term growth
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