TRAVEL RETAIL: A WINDOW TO THE WORLD NOVEMBER 4, 2026 0 GLOBAL TRAVEL RETAIL Matthew Growdon PRESIDENT, ASIA-PACIFIC AND TRAVEL RETAIL WORLDWIDE TRAVEL RETAIL: A WINDOW TO THE WORLD TRAVEL RETAIL: STRATEGIC PLATFORM TO RECRUIT CONSUMERS AND BUILD BRANDS Source: 1. PAX-Air4cast data (international departure); 2. CY25 Generation Research Annual Report; 3. M1ind-set B1S report. BEAUTY STILL #1 CATEGORY $30B | ~35% Mix CY25 Prestige Beauty travel retail sales2, Mix of total travel retail industry3 TOP CHANNEL FOR PRESTIGE BEAUTY One of the largest Global channels BRAND RECRUITING WINDOW ~2/3 shoppers bought a specific product for the first time in Travel Retail3 GROWING AND DIVERSIFIED TRAVELER BASE 2B | +3% | +12% International Departure FY26 | YOY% vs. FY25 | Recovery vs. CY191 INCREASING & ACCELERATING TOURISM REVENUE ~$1T | +9% IATA Global Airline Revenue from passengers, CY25 & estimated growth in CY26 NEW AIRPORT DEVELOPMENT ~50 India alone plans Major global air hubs undergoing expansion and modernization new airports in next 5 years
Source: 1. FY26 Q4 East market based on Beauté Research, West market based on Generation Stabilized Retail in Travel Retail East and Worldwide FY27 Q1 Share gain in both Travel Retail East and West FY26 Q41 ELC IS A LEADER IN BEAUTY IN TRAVEL RETAIL Source: CY25 Generation Research Annual Report UNIQUE AND DIVERSIFIED OPPORTUNITIES IN THE EAST $18.5B, ~63% Mix Category Mix Skin Care Makeup Fragrance Hair Care Mix of Business China Mainland Korea Hong Kong SAR, Macau SAR Other Travel Retail East Markets TRAVEL RETAIL EAST MARKET 43% 14% 16% 27% 1% 63% 15% 21% UNIQUE AND DIVERSIFIED OPPORTUNITIES IN THE WEST Category Mix 72% 28% Fragrance Hair Care Skin Care Makeup Mix of Business Mature Markets Emerging Markets 9% 12% 78% 1% TRAVEL RETAIL WEST MARKET $11.0B, ~37% Mix Source: CY25 Generation Research Annual Report ELC’S REGIONALIZED MODEL SHARPENS OWNERSHIP AND PRIORITIES 1. Best-in-class retail execution 2. Diversify consumer reach and geographic footprint 3. Broaden portfolio representation TRAVEL RETAIL WEST TRAVEL RETAIL EAST TRAVEL RETAIL WORLDWIDE AMERICAS EUROPE UK/IRELAND MIDDLE EAST/INDIA/AFRICA CHINA KOREA JAPAN REST OF TRAVEL RETAIL EAST
ELC’S REGIONALIZED MODEL SHARPENS OWNERSHIP AND PRIORITIES Sources: 1. ELC FY26 ranking based on the Generation Research; 2. ELC FY26 Ranking based on Beauté Research TRAVEL RETAIL EAST Reignite growth as #1 in the largest prestige beauty travel retail market2 Regional Priorities 1. Strengthen skin care leadership via service & luxury experience 2. Further unlock growth across brand portfolio 3. Gain share in growth destinations FASTER-DECISION MAKING | FEWER SPANS AND LAYERS | ENHANCED PRODUCTIVITY | SPEED TO MARKET TRAVEL RETAIL WORLDWIDE TRAVEL RETAIL WEST Accelerate Share Gain as Market Challenger (#5)1 Regional Priorities 1. Accelerate fragrance 2. Expand productive retail space 3. Scale in emerging marketsA new operating model, alongside a redesigned organizational structure, brings our teams closer to consumers and key retail partners, enabling greater agility and market relevance. DOWNTOWN DESTINATION DUTY-FREE RETAIL ONLINE IN-FLIGHT CRUISE AIRPORT GLOBAL GATEWAY RETAIL Source: 1. Based on FY26 Door count by country GLOBAL CHANNEL ECOSYSTEM EXPANDS CONSUMER COVERAGE ELC Travel Retail is present in 1,900+ brick-and-mortar locations with 6,700+ POS1 globally Airport: Miami DFA Beauty Store AIRPORT GLOBAL GATEWAY RETAIL Source: 1. Based on FY26 Door count by country Le Labo – CDF (Ex-DFS) Four Seasons Macau Estée Lauder – Shilla Seoul Downtown GLOBAL CHANNEL ECOSYSTEM EXPANDS CONSUMER COVERAGE ELC Travel Retail is present in 1,900+ brick-and-mortar locations with 6,700+ POS1 globally DOWNTOWN DESTINATION DUTY-FREE RETAIL ONLINE IN-FLIGHT CRUISE Source: 1. Based on FY26 Door count by country GLOBAL CHANNEL ECOSYSTEM EXPANDS CONSUMER COVERAGE Focusing on the quality and personalization of the online experience (shop in shop, elevated on-site product and brand experience, targeted CRM activation programs) Club AvoltaKorea ShillaHainan Replenishment Site ONLINE IN-FLIGHT CRUISE AIRPORT GLOBAL GATEWAY RETAIL DOWNTOWN DESTINATION DUTY-FREE RETAIL
Source: 1. Based on FY26 Door count by country GLOBAL CHANNEL ECOSYSTEM EXPANDS CONSUMER COVERAGE ELC Travel Retail is present in 1,900+ brick-and-mortar locations with 6,700+ POS1 globally In-flight: Korea Air Korea Air First class lounge: Estée Lauder Re-Nutriv Activation ONLINE IN- FLIGHT CRUISE I - I AIRPORT GLOBAL GATEWAY RETAIL DOWNTOWN DESTINATION DUTY-FREE RETAIL LATEST GLOBAL OPENINGS BRING BRAND EQUITY TO LIFE THROUGH ELEVATED EXPERIENCES Jo Malone London Heathrow T2 (opened in FY26) LATEST GLOBAL OPENINGS BRING BRAND EQUITY TO LIFE THROUGH ELEVATED EXPERIENCES DFA Macau Venetian Downtown Estée Lauder CDF (ex-DFS) Macau Downtown La Mer SEAMLESS JOURNEY ACROSS DOMESTIC AND TR WITH CONSUMERS AT THE CENTER ONE JOURNEY WITH CONSUMERS AT THE CENTER DISCOVER 3 EXPLORE, EXPERIENCE & TRY PRODUCTS DURING TRAVEL Domestic B&M and Online Travel Retail Channel Touchpoints PURCHASE 4 SHOP SEAMLESSLY, PHYSICAL AND DIGITAL Domestic B&M and Online Travel Retail Channels REPLENISH 5 LOYALTY AND OMNICHANNEL REPURCHASE Domestic: Brand/Retailer Membership Travel Retailer Membership PLAN 2 RESEARCH, COMPARE & BUILD WISH LISTS Domestic and Travel/Destination Media INSPIRE 1 CAMPAIGNS, CREATORS AND SOCIAL ENGAGEMENT Domestic Media
Jan Feb Mar Apr May Jun Jul Sep Oct Nov DecAug MEETING CONSUMERS AT EVERY MOMENT WITH DIFFERENTIATED EXPERIENCES Ramadan + EID Women’s Day Easter Golden Week Labor Day Mothers’ Day 618 Double 11 Thanksgiving Diwali Cyber Week Christmas Golden Week Middle Autumn Festival Peak: Summer Vacation Peak: New Year & Winter Vacation Lunar New Year Valentine’s Day CHINESE NEW YEAR CAMPAIGNS DIWALI CAMPAIGNS RAMADAN AND EID CAMPAIGNS EXTENDING ELC BRAND POWER ACROSS KEY MOMENTS AROUND THE GLOBE Accelerating Growth Through Connected Market Development Examples from China, India and Middle East COORDINATED LAUNCHES AMPLIFY HIGH-IMPACT INNOVATION Source: Beauté Research FY26 Estée Lauder Double Wear launch in China DOMESTIC CHINA: +29% YOY growth in retail sales in FY26 Q3 Suzhou Center - February/March 2026 TRAVEL RETAIL HAINAN: May retail sales +29% vs. FY25 monthly average Hainan HTB - May 2026 TRAVEL RETAIL EXTENDS DOMESTIC INVESTMENT THROUGH HIGH-IMPACT, TRAVELER-RELEVANT CAMPAIGNS La Mer Arrive Hydrated Travel Retail Exclusive CampaignHainan Jay Chou Sanya Concert Partnership & In-store Activation, Mar 25 & Dec 26 La Mer Tranquility Travel Retail Exclusive Campaign
BRINGING OUR BRANDS TO LIFE THROUGH IMMERSIVE TRAVEL RETAIL EXPERIENCES REIMAGINING TRAVEL RETAIL FOR THE FUTURE OF PRESTIGE BEAUTY From Traditional Retail & Merchandising To Iconic “Sense of Place” London Heathrow T2 Jo Malone London From Transaction-driven Shopping Journey To Immersive Retail-tainment Experience JFK T8 KILIAN PARIS Speakeasy From Shared Assortment with Domestic To Travel-Tailored Innovation Estée Lauder Diane Von Furstenberg Retail limited edition CHINESE TRAVELING CONSUMER AND CHINA TRAVEL RETAIL Olivier Dubos SENIOR VICE PRESIDENT/GENERAL MANAGER, TRAVEL RETAIL WORLDWIDE Source: 1. Chinese Traveling Consumer departures from all airports (China & overseas); 2. Hainan Provincial Bureau of Statistics. ELC HAS THE AGILITY AND GLOBAL PRESENCE TO SERVE CHINESE TRAVELERS GLOBALLY OUTBOUND CHINESE TRAVELERS 117M FY26 CTC INTL DEPARTURES1 +10% VS. FY25 86% of CY19 levels What shapes destination choices Foreign exchange Destination momentum shifting Visa policies Geopolitics Cultural trends HAINAN DUTY-FREE ECOSYSTEM ~110M CY25 HAINAN VISITORS2 +9% VS. CY24 133% of CY19 levels What sustains Hainan momentum China’s largest duty-free ecosystem Duty free policy Destination investment Frictionless domestic travel Mature retail ecosystem
Source: 2026 Chinese Traveling Consumer Shopper Study, ELC Internal CONNECTING PLANNING AND VALUE WITH DIGITAL, EXCLUSIVITY AND DISCOVERY WHAT REMAINS CORE 50%+ Beauty remains a staple 60%+ Highly planned 56% Value remains a key driver WHAT IS EVOLVING 98% Digital throughout the journey 41% Exclusivity beyond price 32% Discovery drives impulse Chinese Consumer Shopper Study Insights CHINA’S TOP AIRPORT HUBS ARE UNVEILING NEW TRAVELLER EXPERIENCES SOON SHANGHAI AND BEIJING AIRPORT RENOVATION ELC NEW STORE RENDERING ELC’S PRIME RETAIL PRESENCE EXTENDS CHINESE TRAVELER ENGAGEMENT ACROSS APAC AND BEYOND Macau - DFA Venetian Downtown Japan Haneda Airport T3 Shilla Seoul Downtown Singapore Changi Airport Source: 1. Hainan Provincial Bureau of Statistics 2. CDF White Paper Report 3. ELC Hainan New to File Report HAINAN: WORLD’S LARGEST DUTY-FREE ISLAND AND UNIQUE GATEWAY TO CHINESE CONSUMERS WORLD-CLASS RETAIL ECOSYSTEM LARGEST DUTY-FREE ISLAND HAINAN DUTY FREE ECOSYSTEM >500K M2 | 6.1K M2 Total Hainan retail space ELC retail space 4 Cities | 5 Retailers 11 B&M | 10 Online doors ELC Retail footprint in Hainan 28% ELC consumers in Hainan are new to brand3 $32B | +11% CY25 Total visitor spend and growth vs. CY24 in Hainan1 50M | +26% CY25 CDF Members, growth% of purchasing members in Beauty2 75% New Tier 1 & Tier 2+ consumers in CDF Beauty2
Industry & Policy Engagement via Hainan Expo Invest in Local Talent & Infrastructure 1st Fully Functioning Distribution Center Among Prestige Beauty Players DRIVING GROWTH ACROSS HAINAN BY ENGAGING THE WHOLE ECOSYSTEM Industry & Policy Engagement via Hainan Expo Invest in Local Talent & Infrastructure 1st Fully Functioning Distribution Center Among Prestige Beauty Players DRIVING GROWTH ACROSS HAINAN BY ENGAGING THE WHOLE ECOSYSTEM Industry & Policy Engagement via Hainan Expo Invest in Local Talent & Infrastructure 1st Fully Functioning Distribution Center Among Prestige Beauty Players DRIVING GROWTH ACROSS HAINAN BY ENGAGING THE WHOLE ECOSYSTEM CONNECTING EVERY CONSUMER TOUCHPOINT THROUGH ELEVATED RETAIL EXPERIENCES HOSPITALITY & TOURISM COLLABORATION PREMIUM SHOPPING DESTINATIONS STRATEGIC AIRPORT PRESENCE STRONG RETAILER PARTNERSHIP
HAINAN BRINGS ELC’S PORTFOLIO TO LIFE THROUGH ELEVATED RETAIL AND PERSONALIZED SERVICES HAINAN BRINGS ELC’S PORTFOLIO TO LIFE THROUGH ELEVATED RETAIL AND PERSONALIZED SERVICES • 98% satisfaction rate • 10/10 overall experience rating • ~35-40 services/day incl. SPA and on-counter • Repurchase rate ~12% among consumer who already spend ~$700 as threshold EST{E LAUDER SERVICE SPA (71 m2) 2 SPA Cabins + 2 Consultation Rooms + Service Area • Exclusive Hainan Signature Facial • ~20 services/day incl. SPA and on-counter • ~24% conversion of repurchase LA MER SERVICE SPA (62 m2) EST{E LAUDER CY26 CHINESE NEW YEARHIGH-IMPACT ACTIVATIONS UNLOCK POWERFUL CONSUMER RECRUITMENT OPPORTUNITIES EST{E LAUDER ROBOT-CRAFTED ELIXIRS FOR SLEEP CONCERNS EST{E LAUDER “THE PLAYHOUSE OF DREAMS” PERSONALIZED SERVICES AND GAMIFICATION TURN DISCOVERY INTO ENGAGEMENT EST{E LAUDER SCI-FI PHOTOSHOOT EXPERIENCE
LEVERAGE CROSSOVER COLLABORATIONS TO SPARK EXCITEMENT AND RECRUIT NEW CONSUMERS CURATED VIP EXPERIENCES DEEPEN RELATIONSHIPS WITH HIGH-VALUE CONSUMERS HAINAN BRINGS TOGETHER INFRASTRUCTURE, PARTNERSHIP, AND EXPERIENTIAL RETAIL TO CREATE A WORLD-CLASS TRAVEL RETAIL ECOSYSTEM
SHAPE THE NEXT CHAPTER OF TRAVEL RETAIL Scale the world’s leading duty-free island 1. HAINAN Elevate China’s major travel gateways 2. CHINA AIRPORTS Connect engagement before, during and after travel 3. OMNI CHANNEL Welcome Chinese travelers wherever demand moves 4. OVERSEAS ONE CONNECTED ECOSYSTEM | ONE TEAM MODEL ELEVATE CONSUMER JOURNEY | BUILD BRANDS | UNLOCK LONG-TERM GROWTH ELC CHINA TRAVEL RETAIL GROWTH PLATFORMS Q&A BEAUTY REIMAGINED: TURNING AMBITION INTO ACTION