LEADING GROWTH IN PRESTIGE BEAUTY

FABRIZIO FREDA PRESIDENT AND CEO THE ESTÉE LAUDER COMPANIES TRACEY T. TRAVIS EXECUTIVE VICE PRESIDENT AND CFO THE ESTÉE LAUDER COMPANIES

SEPTEMBER 8, 2016 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.” WHO 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 PRESTIGE BEAUTY IS A GLOBAL GROWTH ESTIMATES CAGR 2010 - 2015 GROWTH 6% 5-Year CAGR INDUSTRY 5% 4% PRESTIGE BEAUTY IS ONE OF THE FASTEST GROWING 3% CATEGORIES

2% ELC IS SOLELY FOCUSED ON PRESTIGE BEAUTY 1% WE LEVERAGE OUR POWERFUL BRAND 0% PORTFOLIO TO PURSUE PRESTIGE MASS & DIRECT HPC HIGH GROWTH AREAS BEAUTY BEAUTY

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. ELC HAS REINFORCED SHARE OF GLOBAL PRESTIGE BEAUTY 14.5% ITS #1 14%

POSITION 13.5% AND GROWN SHARE 13%

12%

2010 2015

ELC ESTIMATES AND EUROMONITOR 2015 FOR PRESTIGE SKIN CARE, MAKEUP AND FRAGRANCES; EXCLUDES TRAVEL RETAIL. 5 YEAR GLOBAL SALES GROWTH WE HAVE DELIVERED 8% 7% STRONG 6% 5% RESULTS 4% 3%

SALES +7% IN CONSTANT 2% CURRENCY; ABOVE INDUSTRY 1%

0% COST SAVINGS THROUGH Estée Lauder Prestige Beauty Mass & Direct HPC RESTRUCTURING AND IMPROVED Beauty FINANCIAL DISCIPLINE 5 YEAR TOTAL SHAREHOLDER RETURN Estée Lauder S&P 500 Peer Avg OPERATING MARGIN +250 BPS 200 +84% 180 DOUBLE-DIGIT EPS GROWTH IN +77% CONSTANT CURRENCY 160

MARKET CAP +$13 BILLION 140 +40%

TOTAL SHAREHOLDER RETURN 120 +84%, ABOVE S&P 500 AND ~2X PEER GROUP AVERAGE 100

80 2011 2012 2013 2014 2015 2016 RESULTS DRIVEN BY OUR 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 THE POWER OF OUR BRAND PORTFOLIO

PREMIUM

CLASSIC PROGRESSIVE

ENTRY PRICE POINT WE ARE BRAND BUILDERS

FIT BRANDS TO BEST OPPORTUNITIES

ACQUIRE NEW BRANDS STRATEGICALLY STRENGTH BY $4,446 SKIN CARE CATEGORY CAGR +3.6% $3,719

ALL CATEGORIES ARE GROWING $4,703 MAKEUP MAKEUP STRONG IN ALL REGIONS CAGR +6.9% $3,371

INNOVATION SUPPORTS GROWTH $1,487 FRAGRANCE CAGR +3.8% $1,236

$554 HAIR CARE CAGR +5.1% $432 FY2016 FY2011

($ MILLIONS) WE ARE THE GLOBAL LEADER IN PRESTIGE MAKEUP

27.7%

13.0%

10.1% 8.7%

5.0%

ELC L’OREAL SHISEIDO LVMH KAO

EUROMONITOR 2015 GLOBAL PRESTIGE COLOR COSMETICS CATEGORY GROWTH SUPPORTED BY INNOVATION

SUPERIOR QUALITY

RESEARCH & DEVELOPMENT

TECHNOLOGY & INNOVATION

PATENT PORTFOLIO +40% STRENGTH BY

$4,710 GEOGRAPHY AMERICAS CAGR 4.4% $3,796 ALL REGIONS AND VIRTUALLY ALL MARKETS ARE GROWING

EMERGING MARKETS EXCL. CHINA +25% $4,381 U.K. +DOUBLE-DIGITS FOR 3 YEARS EMEA CAGR 6.1% $3,258

$2,173 ASIA/PACIFIC CAGR 4.3% $1,761

FY2016 FY2011

($ MILLIONS) STRENGTH ACROSS 12% Other*

5% MULTIPLE 6% Perfumeries 8% CHANNELS Brand.com 11%

12% Specialty-Multi

Freestanding Retail Stores

Travel Retail 46%

Department Stores

FY2016

*OTHER INCLUDES SALONS, SPAS, MILITARY AND PHARMACIES SUSTAINABLE, RELIABLE GROWTH 10-YEAR COMPASS PROVIDES DIRECTION

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 OUR LONG-TERM STRATEGY FOCUS ON THE BIGGEST GROWTH OPPORTUNITIES

INCREASING OUR REACH TO TARGET CONSUMERS BY CHANNEL AND GEOGRAPHY

ENHANCING CONSUMER ENGAGEMENT WITH INNOVATIVE PRODUCTS AND SERVICES OPTIMIZING DISTRIBUTION TO EXPAND CONSUMER REACH

INDEXED DISTRIBUTION

Jo Malone • MAINTAIN HIGH PRODUCTIVITY PER DOOR La Mer • BRING BRANDS TO NEW CONSUMERS MAC • GLOBAL OPPORTUNITY Tom Ford • RECRUIT FROM MASS

Smashbox

Top Brands

0 20 40 60 80 100 ELC HAS FURTHER OPPORTUNITY IN ONLINE PRESTIGE BEAUTY

180 DOUBLE-DIGIT GROWTH IN EXISTING SITES ONLINE VS TOTAL MARKETS 160 E/M-COMMERCE SITES IN ~ 30 COUNTRIES 140 VERSUS MORE THAN 150 WITH BRICK AND 120 MORTAR DISTRIBUTION 100 OPPORTUNITY TO ADD BRANDS TO EXISTING 80 MARKETS & EXPAND INTO NEW MARKETS 60 40 20 0 Estee MAC Bobbi Jo Malone Smashbox Lauder Brown ONLINE MARKETS ELC ACCELERATING IN SPECIALTY- MULTI BEAUTY

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 FAST GROWTH BRANDS DRIVE ACCELERATION IN FREESTANDING RETAIL STORES

GROWING DOUBLE-DIGITS IN ~1,260 COMPANY- OPERATED STORES GLOBALLY ANNUAL STORE INCREASE 250 ENTER MARKETS WHERE PRESTIGE 200 DISTRIBUTION IS UNDERDEVELOPED 150 MARGIN ACCRETIVE BY YEAR 3 100 50 OMNICHANNEL CAPABILITIES 0 FY2012 FY2013 FY2014 FY2015 FY2016 NEW STORE FORMATS / LOWER COSTS MAC Jo Malone Acquisitions Other BROADENING CONSUMER REACH TRAVEL RETAIL LOCATIONS Kilian IN TRAVEL Frederic Malle RETAIL Darphin GlamGlow EQUITY DRIVER FOR THE BRANDS Jo Malone Bobbi Brown INTERNATIONAL PASSENGER TRAFFIC RISING Smashbox INCREASE CONVERSION MAC EXPANDING BRANDS WITHIN CURRENT La Mer DISTRIBUTION AND IN NEW AIRPORTS Tom Ford Clinique NEWLY ACQUIRED BRANDS ADD INCREMENTAL OPPORTUNITY Estee Lauder 0 500 1000 1500 2000 OPPORTUNITIES IN PRESTIGE DEPARTMENT STORES 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 PORTFOLIO OF LUXURY FRAGRANCE OUR STRATEGY IS SUPPORTED BY INCREASING MODERNIZATION AND EFFICIENCY

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 ELC IS WELL-POSITIONED TO CONTINUE TO WIN IN A VOLATILE WORLD LEADING GROWTH IN PRESTIGE BEAUTY CONSISTENT, BEST-IN-CLASS SALES GROWTH

5 YEAR GLOBAL SALES GROWTH • PRESTIGE BEAUTY HAS 8% CONSISTENTLY GROWN MID-SINGLE DIGITS 7% • ELC GREW FASTER THAN 6% GLOBAL PRESTIGE BEAUTY OVER 5 YEARS 5% • GOAL TO GROW AT LEAST 1PP FASTER THAN PRESTIGE BEAUTY 4% • ACQUISITIONS TARGETED TO 3% ADD ANOTHER POINT OF GROWTH OVER THREE YEARS 2% • GEOGRAPHIC, BRAND AND 1% CHANNEL OPPORTUNITY

0% • PRICING / MIX Estée Prestige Mass & HPC Lauder Beauty Direct Beauty 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. SMI-ENABLED COST SAVINGS AND EFFICIENCIES

$200

180 OTHER 160

140 DEMO

120 PROMO/ COLLATERAL 100

80 A&P EFFECTIVENESS

60 INDIRECT PROCUREMENT 40

20 SUPPLY CHAIN 0 FY2016

• ~$150 MILLION IN SAVINGS TARGETED IN FY2017

OPERATING MARGIN TRENDS

+50 -40 +90 BPS BPS -30 +20 -50 BPS 16.1% BPS BPS BPS +110 -10 15.9% -10 BPS 15.5% BPS BPS 15.2%

14.2%

FY2012 FY2013 FY2014 FY2015 FY2016 ORGANIC GROWTH CURRENCY IMPACT ACQUISITIONS

COST SAVINGS INITIATIVES CURRENCY TRANSLATION

EXPENSE LEVERAGE INVESTMENTS / ACQUISITIONS

EFFICIENCY / EFFECTIVENESS RETAIL STORE ACCELERATION

PRODUCT MIX

NOTE: ALL FIGURES EXCLUDE CHARGES AND SMI SALES SHIFTS SUSTAINED DOUBLE-DIGIT EPS GROWTH

REPORTED 16% 12% 3% 5% 6-8% CONSTANT • LEVERAGING TOPLINE 17% 12% 12% 13% 8-10% GROWTH CURRENCY • MARGIN EXPANSION $3.38 to $3.44 • IMPACT OF ACQUISITIONS AND $3.20 $3.05 CURRENCY $2.95 • OPPORTUNITIES IN TAX RATE $2.64 AND SHARE REPURCHASES $2.27 • DOUBLE-DIGIT EPS GROWTH CAN CONTINUE

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

NOTE: EXCLUDES CHARGES AND SMI SALES SHIFTS RETURNING CASH TO STOCKHOLDERS

$ MILLIONS 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. CASH FLOW DEPLOYMENT

$ MILLIONS

580 (5,218) 1,014

7,620

(2,390)

(368) 2,491

1,253

Ending Cash Operating Cash Debt Stock Based Dividends / Capital Acquisitions Ending Cash & 2011 Flow Comp/Other Buybacks Expenditures Investments 2016 NEAR AND LONGER-TERM GOALS

FY2017 FY2017 - FY2019

NET SALES GROWTH +6% TO +7%

NET SALES GROWTH IN +6% TO +7% +6% TO +8% CONSTANT CURRENCY

OPERATING MARGIN FLEXIBILITY +110 BPS TO +150 BPS

DILUTED EPS $3.38 TO $3.44

EPS GROWTH IN +8% TO +10% +DOUBLE-DIGITS CONSTANT CURRENCY

INVENTORY DAYS IMPROVEMENT ~150 DAYS TO SELL

NOTE: EXCLUDES RESTRUCTURING AND OTHER CHARGES.

OPERATING MARGIN GUIDANCE EVOLUTION

FY2017E FY2018E FY2019E AUGUST 2014 GUIDANCE 17.5% FY2015 FX AND ACQUISITION (0.7) IMPACTS ADJUSTED 16.8% AUGUST 2015 GUIDANCE 16.8% - 17.2% FY2016 FX AND ACQUISITION (0.6) IMPACTS ADJUSTED 16.2% - 16.6% AUGUST 2016 GUIDANCE 16.6% - 17.0%

NOTE: EXCLUDES RESTRUCTURING AND OTHER CHARGES. INVEST IN BRANDS REDUCE COSTS DESIGN FOR LEVERAGE 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

ONE YEAR FIVE YEAR

Estée Lauder S&P 500 Peer Avg 200

6.4% ESTÉE LAUDER +84% 180 +77%

160

S&P 500 4.0% 140 +40%

120

-2.9% PEER AVERAGE 100

80 -10.0% 0.0% 10.0% 2011 2012 2013 2014 2015 2016

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