PRESIDENT AND CEO THE ESTÉE LAUDER COMPANIES

FABRIZIO FREDA

SEPTEMBER 8, 2016

LEADING GROWTH

IN PRESTIGE BEAUTY

EXECUTIVE VICE PRESIDENT AND CFO THE ESTÉE LAUDER COMPANIES

TRACEY T. TRAVIS

FORWARD-LOOKING INFORMATION THE FORWARD-LOOKING STATEMENTS IN THIS PRESENTATION, INCLUDING THOSE CONTAINING WORDS LIKE “EXPECT,” “PLANS,” “MAY,” “COULD,” “ANTICIPATE,” “ESTIMATE,” “PROJECTED,” “FORECASTED,” THOSE IN MR. FREDA’S AND MS. TRAVIS’S REMARKS AND THOSE IN THE “NEAR AND LONGER-TERM GOALS” SLIDE INVOLVE RISKS AND UNCERTAINTIES. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE FORWARD-LOOKING STATEMENTS INCLUDE THE FOLLOWING:

(1) INCREASED COMPETITIVE ACTIVITY FROM COMPANIES IN THE SKIN CARE, MAKEUP, FRAGRANCE AND HAIR CARE BUSINESSES;

(2) THE COMPANY’S ABILITY TO DEVELOP, PRODUCE AND MARKET NEW PRODUCTS ON WHICH FUTURE OPERATING RESULTS MAY DEPEND AND TO SUCCESSFULLY ADDRESS CHALLENGES IN THE COMPANY’S BUSINESS;

(3) CONSOLIDATIONS, RESTRUCTURINGS, BANKRUPTCIES AND REORGANIZATIONS IN THE RETAIL INDUSTRY, AND OTHER FACTORS CAUSING A DECREASE IN THE NUMBER OF STORES THAT SELL THE COMPANY’S PRODUCTS, AN INCREASE IN THE OWNERSHIP CONCENTRATION WITHIN THE RETAIL INDUSTRY, OWNERSHIP OF RETAILERS BY THE COMPANY’S COMPETITORS OR OWNERSHIP OF COMPETITORS BY THE COMPANY’S CUSTOMERS THAT ARE RETAILERS AND OUR INABILITY TO COLLECT RECEIVABLES;

(4) DESTOCKING AND TIGHTER WORKING CAPITAL MANAGEMENT BY RETAILERS;

(5) THE SUCCESS, OR CHANGES IN TIMING OR SCOPE, OF NEW PRODUCT LAUNCHES AND THE SUCCESS, OR CHANGES IN THE TIMING OR THE SCOPE, OF ADVERTISING, SAMPLING AND MERCHANDISING PROGRAMS;

(6) SHIFTS IN THE PREFERENCES OF CONSUMERS AS TO WHERE AND HOW THEY SHOP FOR THE TYPES OF PRODUCTS AND SERVICES THE COMPANY SELLS;

(7) SOCIAL, POLITICAL AND ECONOMIC RISKS TO THE COMPANY’S FOREIGN OR DOMESTIC MANUFACTURING, DISTRIBUTION AND RETAIL OPERATIONS, INCLUDING CHANGES IN FOREIGN INVESTMENT AND TRADE POLICIES AND REGULATIONS OF THE HOST COUNTRIES AND OF THE UNITED STATES;

(8) CHANGES IN THE LAWS, REGULATIONS AND POLICIES (INCLUDING THE INTERPRETATIONS AND ENFORCEMENT THEREOF) THAT AFFECT, OR WILL AFFECT, THE COMPANY’S BUSINESS, INCLUDING THOSE RELATING TO ITS PRODUCTS OR DISTRIBUTION NETWORKS, CHANGES IN ACCOUNTING STANDARDS, TAX LAWS AND REGULATIONS, ENVIRONMENTAL OR CLIMATE CHANGE LAWS, REGULATIONS OR ACCORDS, TRADE RULES AND CUSTOMS REGULATIONS, AND THE OUTCOME AND EXPENSE OF LEGAL OR REGULATORY PROCEEDINGS, AND ANY ACTION THE COMPANY MAY TAKE AS A RESULT;

(9) FOREIGN CURRENCY FLUCTUATIONS AFFECTING THE COMPANY’S RESULTS OF OPERATIONS AND THE VALUE OF ITS FOREIGN ASSETS, THE RELATIVE PRICES AT WHICH THE COMPANY AND ITS FOREIGN COMPETITORS SELL PRODUCTS IN THE SAME MARKETS AND THE COMPANY’S OPERATING AND MANUFACTURING COSTS OUTSIDE OF THE UNITED STATES;

(10) CHANGES IN GLOBAL OR LOCAL CONDITIONS, INCLUDING THOSE DUE TO THE VOLATILITY IN THE GLOBAL CREDIT AND EQUITY MARKETS, NATURAL OR MAN-MADE DISASTERS, REAL OR PERCEIVED EPIDEMICS, OR ENERGY COSTS, THAT COULD AFFECT CONSUMER PURCHASING, THE WILLINGNESS OR ABILITY OF CONSUMERS TO TRAVEL AND/OR PURCHASE THE COMPANY’S PRODUCTS WHILE TRAVELING, THE FINANCIAL STRENGTH OF THE COMPANY’S CUSTOMERS, SUPPLIERS OR OTHER CONTRACT COUNTERPARTIES, THE COMPANY’S OPERATIONS, THE COST AND AVAILABILITY OF CAPITAL WHICH THE COMPANY MAY NEED FOR NEW EQUIPMENT, FACILITIES OR ACQUISITIONS, THE RETURNS THAT THE COMPANY IS ABLE TO GENERATE ON ITS PENSION ASSETS AND THE RESULTING IMPACT ON ITS FUNDING OBLIGATIONS, THE COST AND AVAILABILITY OF RAW MATERIALS AND THE ASSUMPTIONS UNDERLYING THE COMPANY’S CRITICAL ACCOUNTING ESTIMATES;

(11) SHIPMENT DELAYS, COMMODITY PRICING, DEPLETION OF INVENTORY AND INCREASED PRODUCTION COSTS RESULTING FROM DISRUPTIONS OF OPERATIONS AT ANY OF THE FACILITIES THAT MANUFACTURE NEARLY ALL OF THE COMPANY’S SUPPLY OF A PARTICULAR TYPE OF PRODUCT (I.E., FOCUS FACTORIES) OR AT THE COMPANY’S DISTRIBUTION OR INVENTORY CENTERS, INCLUDING DISRUPTIONS THAT MAY BE CAUSED BY THE IMPLEMENTATION OF INFORMATION TECHNOLOGY INITIATIVES OR BY RESTRUCTURINGS;

(12) REAL ESTATE RATES AND AVAILABILITY, WHICH MAY AFFECT THE COMPANY’S ABILITY TO INCREASE OR MAINTAIN THE NUMBER OF RETAIL LOCATIONS AT WHICH THE COMPANY SELLS ITS PRODUCTS AND THE COSTS ASSOCIATED WITH THE COMPANY’S OTHER FACILITIES;

(13) CHANGES IN PRODUCT MIX TO PRODUCTS WHICH ARE LESS PROFITABLE;

(14) THE COMPANY’S ABILITY TO ACQUIRE, DEVELOP OR IMPLEMENT NEW INFORMATION AND DISTRIBUTION TECHNOLOGIES AND INITIATIVES ON A TIMELY BASIS AND WITHIN THE COMPANY’S COST ESTIMATES AND THE COMPANY’S ABILITY TO MAINTAIN CONTINUOUS OPERATIONS OF SUCH SYSTEMS AND THE SECURITY OF DATA AND OTHER INFORMATION THAT MAY BE STORED IN SUCH SYSTEMS OR OTHER SYSTEMS OR MEDIA;

(15) THE COMPANY’S ABILITY TO CAPITALIZE ON OPPORTUNITIES FOR IMPROVED EFFICIENCY, SUCH AS PUBLICLY-ANNOUNCED STRATEGIES AND RESTRUCTURING AND COST-SAVINGS INITIATIVES, AND TO INTEGRATE ACQUIRED BUSINESSES AND REALIZE VALUE THEREFROM;

(16) CONSEQUENCES ATTRIBUTABLE TO LOCAL OR INTERNATIONAL CONFLICTS AROUND THE WORLD, AS WELL AS FROM ANY TERRORIST ACTION, RETALIATION AND THE THREAT OF FURTHER ACTION OR RETALIATION;

(17) THE TIMING AND IMPACT OF ACQUISITIONS, INVESTMENTS AND DIVESTITURES; AND

(18) ADDITIONAL FACTORS AS DESCRIBED IN THE COMPANY’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING ITS ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED JUNE 30, 2016.

THE COMPANY ASSUMES NO RESPONSIBILITY TO UPDATE FORWARD-LOOKING STATEMENTS MADE HEREIN OR OTHERWISE.

NON-GAAP DISCLOSURES

THESE MATERIALS INCLUDE SOME NON-GAAP FINANCIAL MEASURES RELATING TO: CONSTANT CURRENCY; CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES; ACCELERATED ORDERS ASSOCIATED WITH THE COMPANY’S SMI ROLLOUT; THE VENEZUELA REMEASUREMENT CHARGES; AND INTEREST EXPENSE ON DEBT EXTINGUISHMENT. WE USE SUCH MEASURES, AMONG OTHER FINANCIAL MEASURES, TO EVALUATE OUR OPERATING PERFORMANCE, WHICH REPRESENT THE MANNER IN WHICH WE CONDUCT AND VIEW OUR BUSINESS. MANAGEMENT BELIEVES THAT EXCLUDING CERTAIN ITEMS THAT ARE NOT COMPARABLE FROM PERIOD TO PERIOD HELPS INVESTORS AND OTHERS COMPARE OPERATING PERFORMANCE BETWEEN TWO PERIODS. WHILE WE CONSIDER THE NON-GAAP MEASURES USEFUL IN ANALYZING OUR RESULTS, THEY ARE NOT INTENDED TO REPLACE, OR ACT AS A SUBSTITUTE FOR, ANY PRESENTATION INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN CONFORMITY WITH U.S. GAAP. INFORMATION ABOUT GAAP AND NON-GAAP FINANCIAL MEASURES, INCLUDING RECONCILIATION INFORMATION, IS INCLUDED ON THE INVESTOR AREA OF THE COMPANY’S WEBSITE, WWW.ELCOMPANIES.COM, UNDER THE HEADING “GAAP RECONCILIATION.”

WE ARE GLOBAL LEADER IN PRESTIGE

BEAUTY

$11 BILLION IN SALES

25+ BRANDS

150 COUNTRIES AND TERRITORIES

MORE THAN 10 PRESTIGE DISTRIBUTION CHANNELS

46,000 EMPLOYEES WORLDWIDE

WHO

BEAUTY DATA: ELC ESTIMATES, EUROMONITOR 2015 FOR SKIN CARE, MAKEUP AND FRAGRANCES.

HPC: AVERAGE OF PAST FIVE YEARS ORGANIC SALES GROWTH FOR SELECT CONSUMER GOODS COMPANIES.

0%

1%

2%

3%

4%

5%

6%

PRESTIGEBEAUTY

MASS & DIRECTBEAUTY

HPC

5-Year CAGR

GLOBAL GROWTH ESTIMATES CAGR 2010 - 2015

GROWTH INDUSTRY

PRESTIGE BEAUTY IS A

PRESTIGE BEAUTY IS ONE OF THE FASTEST GROWING

CATEGORIES

ELC IS SOLELY FOCUSED ON PRESTIGE BEAUTY

WE LEVERAGE OUR POWERFUL BRAND

PORTFOLIO TO PURSUE HIGH GROWTH AREAS

ITS #1 POSITION

AND GROWN SHARE

ELC HAS REINFORCED SHARE OF GLOBAL PRESTIGE BEAUTY

13.5%

2010

14.5%

2015

ELC ESTIMATES AND EUROMONITOR 2015 FOR PRESTIGE SKIN CARE, MAKEUP AND FRAGRANCES;

EXCLUDES TRAVEL RETAIL.

13%

14%

12%

STRONG RESULTS

SALES +7% IN CONSTANT CURRENCY; ABOVE INDUSTRY

COST SAVINGS THROUGH RESTRUCTURING AND IMPROVED

FINANCIAL DISCIPLINE

OPERATING MARGIN +250 BPS

DOUBLE-DIGIT EPS GROWTH IN CONSTANT CURRENCY

MARKET CAP +$13 BILLION

TOTAL SHAREHOLDER RETURN +84%, ABOVE S&P 500 AND ~2X

PEER GROUP AVERAGE

WE HAVE DELIVERED

0%

1%

2%

3%

4%

5%

6%

7%

8%

Estée Lauder Prestige Beauty Mass & DirectBeauty

HPC

5 YEAR GLOBAL SALES GROWTH

80

100

120

140

160

180

200

2011 2012 2013 2014 2015 2016

Estée Lauder S&P 500 Peer Avg

5 YEAR TOTAL SHAREHOLDER RETURN

+84%

+77%

+40%

ENDURING STRENGTHS

POWERFUL BRAND PORTFOLIO

UNRIVALED CREATIVITY, SERVICE AND INNOVATION

BALANCED AND DIVERSIFIED BUSINESS

MULTIPLE ENGINES OF GROWTH

CULTURE OF ANTICIPATING AND EMBRACING CHANGE

AGILITY IN INVESTMENT ALLOCATION

RESULTS DRIVEN BY OUR

OUR BRAND PORTFOLIO THE POWER OF

PROGRESSIVE CLASSIC

PREMIUM

ENTRY PRICE POINT

BRAND BUILDERS

WE ARE

FIT BRANDS TO BEST OPPORTUNITIES

ACQUIRE NEW BRANDS STRATEGICALLY

CATEGORY STRENGTH BY

$4,446

$4,703

$1,487

$554

$3,719

$3,371

$1,236

$432

FY2016 FY2011

SKIN CARE CAGR +3.6%

MAKEUP CAGR +6.9%

FRAGRANCE CAGR +3.8%

HAIR CARE CAGR +5.1%

($ MILLIONS)

ALL CATEGORIES ARE GROWING

MAKEUP STRONG IN ALL REGIONS

INNOVATION SUPPORTS GROWTH

GLOBAL LEADER IN PRESTIGE MAKEUP

WE ARE THE

EUROMONITOR 2015 GLOBAL PRESTIGE COLOR COSMETICS

27.7%

13.0%

10.1% 8.7%

5.0%

ELC L’OREAL SHISEIDO LVMH KAO

INNOVATION

CATEGORY GROWTH SUPPORTED BY

SUPERIOR QUALITY

RESEARCH & DEVELOPMENT

TECHNOLOGY & INNOVATION

PATENT PORTFOLIO +40%

GEOGRAPHY STRENGTH BY

ALL REGIONS AND VIRTUALLY ALL MARKETS ARE GROWING

EMERGING MARKETS EXCL. CHINA +25%

U.K. +DOUBLE-DIGITS FOR 3 YEARS

$1,761

$3,258

$3,796

$2,173

$4,381

$4,710

FY2016 FY2011

AMERICAS

CAGR 4.4%

EMEA

CAGR 6.1%

ASIA/PACIFIC

CAGR 4.3%

($ MILLIONS)

MULTIPLE CHANNELS

STRENGTH ACROSS

46%

12%

11%

8%

6%

5%

12%

FY2016

Other*

Perfumeries

Brand.com

Specialty-Multi

FreestandingRetail Stores

Travel Retail

DepartmentStores

*OTHER INCLUDES SALONS, SPAS, MILITARY AND PHARMACIES

10-YEAR COMPASS PROVIDES DIRECTION

SUSTAINABLE, RELIABLE GROWTH

IDENTIFIES LONG-TERM BEAUTY TRENDS

DETERMINES AREAS OF FASTEST GROWTH AND GREATEST OPPORTUNITIES TO FOCUS ON

ALLOCATES RESOURCES IN AN AGILE WAY

“KEEPS OUR BOAT IN THE WIND.”

CAPTURING GROWTH

THE CHANGING DYNAMICS IN BEAUTY

DEMOGRAPHIC SHIFTS

INSPIRE OUR BUSINESS

AGELESS, MILLENNIAL, GEN Z

THE RISE OF SOCIAL MEDIA

FOCUS ON THE BIGGEST

GROWTH OPPORTUNITIES

OUR LONG-TERM STRATEGY

INCREASING OUR REACH TO TARGET CONSUMERS BY CHANNEL

AND GEOGRAPHY

ENHANCING CONSUMER ENGAGEMENT WITH INNOVATIVE

PRODUCTS AND SERVICES

EXPAND CONSUMER REACH

OPTIMIZING DISTRIBUTION TO

• MAINTAIN HIGH PRODUCTIVITY PER DOOR

• BRING BRANDS TO NEW CONSUMERS

• GLOBAL OPPORTUNITY

• RECRUIT FROM MASS

0 20 40 60 80 100

Top Brands

Smashbox

Tom Ford

MAC

La Mer

Jo Malone

INDEXED DISTRIBUTION

IN ONLINE PRESTIGE BEAUTY

ELC HAS FURTHER OPPORTUNITY

DOUBLE-DIGIT GROWTH IN EXISTING SITES

E/M-COMMERCE SITES IN ~ 30 COUNTRIES VERSUS MORE THAN 150 WITH BRICK AND

MORTAR DISTRIBUTION

OPPORTUNITY TO ADD BRANDS TO EXISTING MARKETS & EXPAND INTO NEW MARKETS

0

20

40

60

80

100

120

140

160

180

EsteeLauder

Clinique MAC BobbiBrown

Jo Malone Smashbox

ONLINE VS TOTAL MARKETS

ONLINE MARKETS

IN SPECIALTY- MULTI BEAUTY

ELC ACCELERATING

GROWING DOUBLE-DIGITS IN CHANNEL

APPEALING, EXPERIENTIAL RETAILING

WIN WITH BRAND PORTFOLIO, SPECIALIZED PRODUCT ASSORTMENT, INNOVATIVE

MERCHANDISING, SAMPLING

OPPORTUNITY TO ADD BRANDS TO EXISTING RETAIL & GROW WITH RETAILER EXPANSION

ACCELERATION IN FREESTANDING RETAIL STORES

FAST GROWTH BRANDS DRIVE

GROWING DOUBLE-DIGITS IN ~1,260 COMPANY-OPERATED STORES GLOBALLY

ENTER MARKETS WHERE PRESTIGE DISTRIBUTION IS UNDERDEVELOPED

MARGIN ACCRETIVE BY YEAR 3

OMNICHANNEL CAPABILITIES

NEW STORE FORMATS / LOWER COSTS

0

50

100

150

200

250

FY2012 FY2013 FY2014 FY2015 FY2016

ANNUAL STORE INCREASE

MAC Jo Malone Bobbi Brown

Acquisitions Other

IN TRAVEL RETAIL

BROADENING CONSUMER REACH

EQUITY DRIVER FOR THE BRANDS

INTERNATIONAL PASSENGER TRAFFIC RISING

INCREASE CONVERSION

EXPANDING BRANDS WITHIN CURRENT DISTRIBUTION AND IN NEW AIRPORTS

NEWLY ACQUIRED BRANDS ADD INCREMENTAL OPPORTUNITY

0 500 1000 1500 2000

Estee Lauder

Clinique

Tom Ford

La Mer

MAC

Origins

Smashbox

Bobbi Brown

Jo Malone

GlamGlow

Aveda

Darphin

Le Labo

Frederic Malle

Kilian

TRAVEL RETAIL LOCATIONS

IN PRESTIGE DEPARTMENT

STORES

OPPORTUNITIES

INTERNATIONAL AND HIGH-END DEPARTMENT STORES ARE GROWING

RETAILER.COM IS GROWING

ALLOCATING RESOURCES TO AREAS OF OPPORTUNITY

OPPORTUNITIES

ENHANCING CONSUMER ENGAGEMENT

HIGH-QUALITY, INNOVATIVE PRODUCTS

NEW EXPERIENCES AND SERVICES

ARTISANAL AND EXPERIENTIAL

FRAGRANCE

LUXURY FRAGRANCE

PORTFOLIO OF

MODERNIZATION AND EFFICIENCY

OUR STRATEGY IS SUPPORTED BY INCREASING

COMPLETED MODERNIZATION OF KEY SYSTEMS

CONTINUING INFORMATION TECHNOLOGY INVESTMENT

LEADING BEAUTY FORWARD INITIATIVE

COST LEVERAGE / SAVINGS

OUR STRATEGY IS SUPPORTED BY INVESTMENT IN

TALENT DEVELOPMENT AND

CAPABILITIES

TO CONTINUE TO WIN IN A VOLATILE WORLD

ELC IS WELL-POSITIONED

LEADING GROWTH

IN PRESTIGE BEAUTY

CONSISTENT, BEST-IN-CLASS SALES GROWTH

• PRESTIGE BEAUTY HAS CONSISTENTLY GROWN MID-SINGLE DIGITS

• ELC GREW FASTER THAN GLOBAL PRESTIGE BEAUTY OVER 5 YEARS

• GOAL TO GROW AT LEAST 1PP FASTER THAN PRESTIGE BEAUTY

• ACQUISITIONS TARGETED TO ADD ANOTHER POINT OF GROWTH OVER THREE YEARS

• GEOGRAPHIC, BRAND AND CHANNEL OPPORTUNITY

• PRICING / MIX 0%

1%

2%

3%

4%

5%

6%

7%

8%

EstéeLauder

PrestigeBeauty

Mass &DirectBeauty

HPC

ELC 5 YEARS ENDED 6/30/16

BEAUTY DATA: ELC ESTIMATES, EUROMONITOR 2015 FOR SKIN CARE, MAKEUP AND FRAGRANCES.

HPC: AVERAGE OF PAST FIVE YEARS ORGANIC SALES GROWTH FOR SELECT EUROPEAN AND US BASED CONSUMER GOODS COMPANIES.

5 YEAR GLOBAL SALES GROWTH

SMI-ENABLED COST SAVINGS AND EFFICIENCIES

0

20

40

60

80

100

120

140

160

180

200

FY2016

OTHER

DEMO

PROMO/ COLLATERAL

A&P EFFECTIVENESS

INDIRECT PROCUREMENT

SUPPLY CHAIN

• ~$150 MILLION IN SAVINGS TARGETED IN FY2017

$

ORGANIC GROWTH CURRENCY IMPACT ACQUISITIONS

OPERATING MARGIN TRENDS

COST SAVINGS INITIATIVES CURRENCY TRANSLATION

EXPENSE LEVERAGE INVESTMENTS / ACQUISITIONS

EFFICIENCY / EFFECTIVENESS RETAIL STORE ACCELERATION

PRODUCT MIX

FY2012 FY2013 FY2014 FY2015 FY2016

14.2%

15.2%

16.1% 15.9%

15.5% +110 BPS

+90 BPS

+50 BPS +20

BPS -10

BPS

-40 BPS -50

BPS

-30 BPS

-10 BPS

NOTE: ALL FIGURES EXCLUDE CHARGES AND SMI SALES SHIFTS

SUSTAINED DOUBLE-DIGIT EPS GROWTH

$2.27

$2.64

$2.95 $3.05

$3.20

$3.38 to $3.44

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

• LEVERAGING TOPLINE GROWTH

• MARGIN EXPANSION

• IMPACT OF ACQUISITIONS AND CURRENCY

• OPPORTUNITIES IN TAX RATE AND SHARE REPURCHASES

• DOUBLE-DIGIT EPS GROWTH CAN CONTINUE

NOTE: EXCLUDES CHARGES AND SMI SALES SHIFTS

REPORTED 16% 12% 3% 5% 6-8%

CONSTANT

CURRENCY 17% 12% 12% 13% 8-10%

RETURNING CASH TO STOCKHOLDERS

FY2012 FY2013 FY2014 FY2015 FY2016

OPERATING CASH FLOW $1,127 $1,226 $1,535 $1,943 $1,789

CAPEX 421 461 510 473 525

FREE CASH FLOW $706 $765 $1,025 $1,470 $1,263

DIVIDENDS 204 419 302 350 423

SHARE REPURCHASES 593 388 667 983 890

TOTAL $797 $807 $969 $1,333 $1,313

% OF FREE CASH FLOW 113% 105% 95% 91% 104%

NOTE: FY2014 AND FY2015 OPERATING CASH FLOW INCLUDES THE IMPACT OF APPROXIMATELY $173 MILLION RELATED TO THE SMI SALES SHIFTS.

$ MILLIONS

Ending Cash2011

Operating CashFlow

Debt Stock BasedComp/Other

Dividends /Buybacks

CapitalExpenditures

Acquisitions Ending Cash &Investments

2016

CASH FLOW DEPLOYMENT

7,620

1,014

1,253

580 (5,218)

(2,390)

(368) 2,491

$ MILLIONS

NEAR AND LONGER-TERM GOALS

FY2017 FY2017 - FY2019

NET SALES GROWTH +6% TO +7%

NET SALES GROWTH IN

CONSTANT CURRENCY +6% TO +7% +6% TO +8%

OPERATING MARGIN FLEXIBILITY +110 BPS TO +150 BPS

DILUTED EPS $3.38 TO $3.44

EPS GROWTH IN

CONSTANT CURRENCY +8% TO +10% +DOUBLE-DIGITS

INVENTORY DAYS

TO SELL IMPROVEMENT ~150 DAYS

NOTE: EXCLUDES RESTRUCTURING AND OTHER CHARGES.

OPERATING MARGIN GUIDANCE EVOLUTION

FY2017E FY2018E FY2019E

AUGUST 2014 GUIDANCE 17.5%

FY2015 FX AND ACQUISITION

IMPACTS (0.7)

ADJUSTED 16.8%

AUGUST 2015 GUIDANCE 16.8% - 17.2%

FY2016 FX AND ACQUISITION

IMPACTS (0.6)

ADJUSTED 16.2% - 16.6%

AUGUST 2016 GUIDANCE 16.6% - 17.0%

NOTE: EXCLUDES RESTRUCTURING AND OTHER CHARGES.

REDUCE COSTS DESIGN FOR LEVERAGE INVEST IN BRANDS

AND CAPABILITIES

• LOWER OUR OVERHEAD COST BASE FOR ANNUAL NET BENEFITS OF $200 TO $300M BEFORE TAX

• REDUCE OUR LEVERAGE RATIO

• REALLOCATE A PORTION OF NET BENEFITS TO FUND PRIORITY INVESTMENTS

• SUSTAINABLE LONG-TERM GROWTH

CREATING VALUE TOTAL SHAREHOLDER RETURN

SOURCE: BLOOMBERG, S&P 06/30/16. PEER GROUP INCLUDES P&G, AVON, BEIERSDORF, LVMH, L’OREAL AND SHISEIDO.

-2.9%

4.0%

6.4%

-10.0% 0.0% 10.0%

ONE YEAR

80

100

120

140

160

180

200

2011 2012 2013 2014 2015 2016

Estée Lauder S&P 500 Peer Avg

FIVE YEAR

+84%

+77%

+40%

ESTÉE LAUDER

S&P 500

PEER AVERAGE