INVESTOR DAY2019

OLIVIER BOTTRIE GLOBAL PRESIDENT, TRAVEL RETAIL AND RETAIL DEVELOPMENT

A WORLD OFOPPORTUNITY

TRAVEL RETAIL:

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 address our expectations regarding sales, earnings or other future financial performance and liquidity, product introductions, entry into new geographic regions, information technology initiatives, new methods of sale, our long-term strategy, restructuring and other charges and resulting cost savings, and future operations or operating results. These statements may contain words like “expect,” “will,” “will likely result,” “would,” “believe,” “estimate,” “planned,” “plans,” “intends,” “may,” “should,” “could,” “anticipate,” “estimate,” “project,” “projected,” “forecast,” and “forecasted” or similar expressions. Factors that could cause actual results to differ materially from our forward-looking statements are described in our Investor Day materials as well as 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, 2018. The Company assumes no responsibility to update forward-looking statements made herein or otherwise.

Our Investor Day materials also include non-GAAP financial measures. We use certain non-GAAP financial 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, or do not reflect our underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period to period. Our non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. 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 in our Investor Day materials as well as on the Investors area of the Company’s website, www.elcompanies.com, under the heading “GAAP Reconciliation.”

FORWARD-LOOKING INFORMATION AND NON-GAAP DISCLOSURES

WE INTEND TO DO EVEN GREATER THINGS IN THE YEARS TO COME

TRAVEL RETAIL HAS BEEN ONE OF THE BIGGEST CONTRIBUTORS TO ELC’S SUCCESS:

DOUBLE DIGIT NET SALES CAGR…

… WITH ANNUAL NOP GROWTH FASTER THAN SALES

ELC TRAVEL RETAIL: HISTORIC GROWTH OVER THE PAST DECADE, FY09-18

CY18 TRAVEL RETAIL BEAUTY RETAIL SALES (EST.):

’15-’18 CAGR OF 14%, 2X

BUILDING CAPABILITIES TO WIN IN ONE OF THE MOST ATTRACTIVE MARKETPLACES

THE RATE OF GLOBAL PRESTIGE BEAUTY

$28BN

Source: Generation, ELC TRWW Analysis

IN THE PAST DECADE, WE HAVE GAINED 760 BPS OF SHARE AND ARE NOW #1 IN GLOBAL TRAVEL RETAIL PRESTIGE BEAUTY MARKET SHARE, CY09-18 (EST.)

OUR FOCUS HAS PRODUCED AMAZING SHARE RESULTS

IN CY18, ELC GREW >30%, MORE THAN 3X THE RATE OF PRESTIGE BEAUTY IN TR (EST.)

’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 EST.

13.9%

20.0%21.5%

21.1% #2 PLAYER IN GLOBAL TR PRESTIGE BEAUTY

Source: Generation, ELC TRWW Estimates, Press Releases

OUR UNIQUE MODEL HAS THREE KEY COMPONENTS

LEVERAGE A&P AND INNOVATION OF THE COUNTRY OF ORIGIN

FOLLOW CONSUMER TRAVEL CORRIDORS: CHINESE TRAVELER EXAMPLE

BUILD PRESENCE ACROSS ALL DUTY FREE CHANNELS

1

2

3

8%

1%

10%

75%

AIRPORTS INFLIGHT AQUATICDOWNTOWN ONLINE

6%

Source: air4cast; ELC TRWW Analysis

TRAFFIC, SPEND PER PAX, CONVERSION SUGGEST HUGE GROWTH POTENTIAL; CONVERSION IS THE LARGEST DRIVER

THE FUNDAMENTALS OF TRAVEL RETAIL

SPEND / PAXCY18 (EST.)

EMERGING TRAVELERS’ DUTY FREE SPEND RELATIVE

TO DEVELOPED PAX

2–4X

CONVERSION: DUTY FREE BEAUTY SHOPPERS

CY18 (EST.)

LONG TERM POTENTIAL

40%50%

30%

35%

30%15%

NON VISITORS

BROWSERS

BUYERS

ANNUAL AIR TRAFFIC, CY19 (EST.)(SELECT NATIONALITIES, MM)

KEY EMERGING TRAVELERS REPRESENT TREMENDOUS

GROWTH OPPORTUNITY

British

American

Chinese

Middle Eastern

Indian

Russian

Brazilian

TOTAL 226

11

31

41

51

92

213

95

118

428

397

356

305

213

118

439

Source: Air4Cast, m1nd-set, TRWW Analysis

OUR COMPETITIVE ADVANTAGE RESTS ON FIVE KEY PILLARS

WE ARE UNIQUELY POSITIONED TO WIN IN THIS HIGH GROWTH ENVIRONMENT

#2ABILITY TO REACH MORE TRAVELERS WITH HIGH PRODUCTIVITY/ DOOR

#3UNIQUE CAPABILITIES FOR OUTSTANDING GO-TO-MARKET EXECUTION

#1DISTINCTIVE TOOLS AND PRODUCTS TO CONVERT EMERGING PAX

#4BUILDING OF EQUITY AND RECRUITMENT OF LUXURY CONSUMERS

#5DIGITAL ENGAGEMENT OF CONSUMERS ALONG THE TRAVEL JOURNEY

TOOLS (CHINESE TRAVELER EXAMPLE)

ELEMENTS EXAMPLE

Pre-Travel

Social platform engagement

CRM targeting / pre-tailing

At Airport

Geo-targeting in terminal

Corridor specific ‘pop-ups’

In-Store

Bilingual Demo + Signage

Tailored Assortment

PRODUCTS (EXCLUSIVE TO OUR CHANNEL)

SENSE OF PLACE GIFTING (SELF)

TRAVEL BEAUTY GIFTING (OTHERS)

: NEW TOOLS AND PRODUCTS TO EXPAND CONSUMER REACH & CONVERSION#1

FY19 (EST.) COVERAGE BY BRAND IN EXISTING LOCATIONS

HIGHEST PRODUCTIVITY / DOOR ACROSS ELC

Estée Lauder, Clinique, ADF

MAC, La Mer, Jo Malone London, Origins, Bobbi Brown

Tom Ford Beauty (Full Line), GlamGlow, Lab Series

Kilian, Aveda, Too Faced, Frederic Malle, Darphin, Becca,

Le Labo3%

8%

15%

90%

NEW OPPORTUNITIES IN THE ABSOLUTE GROWTH OF DOORS (CHINA EXAMPLE)

20+ DUTY FREE DOORS PLANNED IN CY19–20 FOR CHINA ALONE

DOWNTOWN

HAINAN OFFSHORE

PRE-TAIL (ECOMMERCE)

INTL. AIRPORTS

IN BOTH EXISTING DOORS AND IN NEW PLANNED LOCATIONS

#2: OPPORTUNITIES TO INCREASE PROFITABLY OUR COVERAGE OF TRAVELERS

STORE DESIGN & VISUAL MERCHANDISING

ATTRACTING CONSUMERS WITH THE LATEST

GENERATION COUNTERS

TRAVEL RETAIL EXCLUSIVES (INNOVATION HUB)

LAUNCHING 200+ TRAVEL RETAIL SPECIFIC PRODUCT

OFFERINGS IN FY19

INTEGRATED MARKETING

DEPLOYING 270+ TR SPECIFIC DIGITAL

CAMPAIGNS IN FY19

DIGITALMARKETING

ECOMMERCE

SHOPPERINSIGHTS

& CATEGORYSTRATEGY

COMMUNICATION

#3: SPECIALIZED CAPABILITIES FOR OUTSTANDING GO-TO-MARKET EXECUTION

FLAGSHIP STORE ENVIRONMENTS

BEIJING CAPITAL INTERNATIONAL AIRPORT

TERMINAL 3

LARGE SCALE, OUT OF HOME MEDIA

HEATHROW AIRPORT ‘LIFT WRAP’

EYE-CATCHING NON-TRADITIONAL

FORMATS TRAVELING TOWNHOUSE, LONDON HEATHROW T2

MARQUEE EVENTS

CDFG SANYA (HAINAN) WITH EL BRAND AMBASSADOR

59% OF PRESTIGE BEAUTY BUYERS’ FIRST PURCHASE IS IN TRAVEL RETAIL

TO STRENGTHEN BRAND EQUITY AND RECRUIT NEW CONSUMERS#4: LUXURIOUS BRANDED EXPERIENCES

Sources: m1nd-set, TRWW Analysis

59% OF PRESTIGE BEAUTY BUYERS’ FIRST PURCHASE IS IN TRAVEL RETAILSources: m1nd-set, TRWW Analysis

FLAGSHIP STORE ENVIRONMENTS

59% OF PRESTIGE BEAUTY BUYERS’ FIRST PURCHASE IS IN TRAVEL RETAILSources: m1nd-set, TRWW Analysis

LARGE SCALE, OUT OF HOME MEDIA

59% OF PRESTIGE BEAUTY BUYERS’ FIRST PURCHASE IS IN TRAVEL RETAILSources: m1nd-set, TRWW Analysis

MARQUEE EVENTS

59% OF PRESTIGE BEAUTY BUYERS’ FIRST PURCHASE IS IN TRAVEL RETAILSources: m1nd-set, TRWW Analysis

EYE-CATCHING NON-TRADITIONAL

FORMATS

DIGITAL FIRST, TRAVEL RETAIL CAMPAIGNS 3 TIMES AS MANY IN 3 YEARS

TREMENDOUS CONSIDERATION DRIVER: 2/3’S OF SHOPPING DECISIONS MADE PRE-TRAVEL

ECOMMERCE SHOP ONLINE, PICK-UP AT AIRPORT

HUGE BOOSTER OF CONVERSION: NEW POTENTIAL SHOPPING MOMENT

ACROSS THE TRAVEL JOURNEY

#5: WELL DEVELOPED MEANS OF ENGAGING CONSUMERS DIGITALLY

“WHEN IT COMES TO COMMERCIAL REAL ESTATE, AIRPORTS OFFER THE TWO BIGGEST FACTORS LINKED TO RETAIL SUCCESS: LOCATION AND FOOT TRAFFIC”

–NY TIMES, SEPT 4, 2018

“AIRPORTS ARE BUILDING, AND VYING FOR BUSINESS, MORE THAN EVER: FROM INDOOR WATERFALLS TO NONSTOP FLIGHTS TO BUSINESS HUBS, AIRPORT COMPETITION TAKES OFF…”

–WALL STREET JOURNAL, NOV 14, 2018

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“AIRPORTS ARE NOW CONSIDERED THE SHOPPING MALLS OF MODERN TIMES… LUXURY AIRPORT STORES ARE THE CURATORS OF BRAND IDENTITY”

–JING DAILY, SEPT 6 / NOV 3, 2018

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CONCLUSION: ELC IS UNIQUELY POSITIONED TO EXPAND ITS LEADERSHIP IN THIS HIGH GROWTH AND PRESTIGE MARKETPLACE

A WORLD OFOPPORTUNITY

TRAVEL RETAIL:

OLIVIER BOTTRIE GLOBAL PRESIDENT, TRAVEL RETAIL AND RETAIL DEVELOPMENT

SANDRA MAIN GLOBAL BRAND PRESIDENT, LA MER AND BOBBI BROWN

STEPHANE DE LA FAVERIE GLOBAL BRAND PRESIDENT, ESTÉE LAUDER

GUILLAUME JESEL GLOBAL BRAND PRESIDENT, TOM FORD BEAUTY