CAPITAL MARKETS EXPERIENCE NOVEMBER 4, 2026 .2 CAPITAL MARKETS EXPERIENCE Rainey Mancini SENIOR VICE PRESIDENT AND HEAD OF INVESTOR RELATIONS
FORWARD-LOOKING INFORMATION AND NON-GAAP DISCLOSURES Statements made on this webcast and included across all presentations, as well as 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 the Company’s expectations regarding sales, earnings or other future financial performance and liquidity, other performance measures, product introductions, entry into new geographic regions, information technology initiatives, new methods of sale, the Company’s 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. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, actual results may differ materially from the Company’s expectations. Factors that could cause actual results to differ materially from our forward-looking statements are 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, 2026. The Company assumes no responsibility to update forward-looking statements made herein or otherwise. To facilitate discussion of the Company’s underlying business, financial results and expectations presented or discussed across all presentations exclude restructuring and other charges and adjustments, unless otherwise noted. Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impact from foreign currency translation. The Company uses certain non-GAAP financial measures, among other financial measures, to evaluate its operating performance, which represent the manner in which the Company conducts and views its business. Management believes that excluding certain items that are not comparable from period-to-period, or do not reflect the Company’s underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period-to- period. For free cash flow, this measure represents how much cash the Company has available from operations after the deduction of capital expenditures, which are a recurring and necessary use of cash. The Company anticipates a net sales impact from the acquisition of Forest Essentials in fiscal 2028 related to the fiscal 2028 first quarter which is not able to be forecasted at this time with reasonable certainty, nor are we able to forecast the impact of foreign currency with reasonable certainty. Additionally, the Company expects charges from restructuring and other activities of approximately $40 million to $50 million, before taxes, in fiscal 2028, which are currently expected to impact operating margin, effective tax rate and diluted net earnings per common share, and are excluded from these forward-looking metrics. In isolation, our estimated charges from restructuring and other activities are not expected to impact the projected improvements in these metrics, on a reported basis compared to as adjusted. The Company does not provide full reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP measures because such reconciliations are not available without unreasonable effort. This is due to the inherent difficulty in forecasting with reasonable certainty certain other amounts that are necessary for such reconciliations. For the same reasons, the Company is unable to forecast with reasonable certainty all adjustments needed in order to provide forward-looking GAAP financial measures at this time. The amount of these adjustments may be material and, therefore, could result in forward-looking GAAP financial measures being materially different or less than forward-looking non- GAAP financial measures. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While the Company considers the non-GAAP measures useful in analyzing its 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 Investors area of the Company’s website, www.elcompanies.com, under the heading “GAAP Reconciliation.” See Appendix for footnote definitions referenced throughout this presentation. AGENDA TIME PRESENTATION SPEAKERS 1:00-2:10 PM Beauty Reimagined: Turning Ambition into Action Stéphane de La Faverie, President and CEO Akhil Shrivastava, EVP and CFO Brian Franz, Chief Technology & Transformation Officer 2:10-3:10 PM Fueling the Next Generation of Consumer-Centric Growth Creating Consumer Demand Aude Gandon, Chief Digital & Marketing Officer Powering Growth through Disruptive Innovation René Lammers, Ph.D., EVP, Chief Research & Innovation Officer Delivering Growth through a Dynamic Value Chain Roberto Canevari, EVP, Chief Value Chain Officer 3:10-3:30 PM Break Note: Time in China Standard Time (CST). AGENDA TIME PRESENTATION SPEAKERS 3:30-4:40 PM China: A Blueprint for Consumer-Centric Growth The Next China Is Still China Joy Fan, President and CEO, China Estée Lauder: Elevating Brand Leadership through Online Excellence and Innovation Ginger Yang, SVP/General Manager – Estée Lauder, China La Mer: Reinforcing Luxury Skin Care Leadership through Experience and Innovation Daisy Jiang, SVP/General Manager – La Mer, China M·A·C: Accelerating Growth through Youth Engagement and Trend-Led Innovation Yan Gao, VP/General Manager – M·A·C, China The Ordinary: Scaling Next-Generation Engagement through Science and Locally Relevant Innovation Sherry Bai, Brand General Manager – The Ordinary, China Fragrance: Advancing Luxury and Artisanal Fragrance through Signature Retail Experiences and Innovation Neo Ye, VP/Brand General Manager – Le Labo, KILIAN PARIS, and Editions de Parfums Frédéric Malle, China 4:40-5:40 PM Travel Retail: A Window to the World Matthew Growdon, President, Asia-Pacific and Travel Retail Worldwide Olivier Dubos, SVP/General Manager – Travel Retail Worldwide Lina Ly, SVP/General Manager - Travel Retail East (Q&A) 5:40-5:55 PM Closing Remarks Stéphane de La Faverie, President and CEO Note: Time in China Standard Time (CST). BEAUTY REIMAGINED: TURNING AMBITION INTO ACTION Stéphane de La Faverie PRESIDENT AND CHIEF EXECUTIVE OFFICER
BEAUTY REIMAGINED: TURNING AMBITION INTO ACTION DELIVERED A STRONG START TO FISCAL 2027, WITH EXCELLENT RESULTS IN 1Q27 +7% 1Q27 Reported Sales Growth +6% 1Q27 Organic*1 Sales Growth +240bps 1Q27 Adjusted Gross Margin*1 +480bps 1Q27 Adjusted Operating Margin*1 +125% 1Q27 Adjusted Diluted EPS*1 Growth +8% 1Q27 Consumer-facing Investments Growth *See Appendix +20% POWERED FRAGRANCE: PRESTIGE THROUGH LUXURY Organically*1 *See Appendix +4% AMPLIFIED SKIN CARE: HEROES + INNOVATION Organically*1 *See Appendix
+1% REIGNITED MAKEUP: LED BY ARTISTRY AND LUXURY Organically*1 *See Appendix STABILIZED HAIR CARE: DRIVEN BY THE ORDINARY DELIVERED GROWTH IN EVERY REGION, FOR THE 2ND CONSECUTIVE QUARTER +5% +4% THE AMERICAS +1% +4% EUKEM +9% +10% ASIA/PACIFIC +7% +9% MAINLAND CHINA Fiscal 4Q26 Fiscal 1Q27 Organically*1 *See Appendix ACHIEVED STRONG PERFORMANCE IN PRIORITY EMERGING MARKETS +15% Organically*1,2 *See Appendix
REALIZED ONLINE STRENGTH AROUND THE WORLD +High Single-Digit Organically*1,3 THE AMERICAS +High Single-Digit EUKEM +High Single-Digit ASIA/PACIFIC +Double-Digit MAINLAND CHINA +High Single-Digit *See Appendix COMPLEMENTED BY IN-STORE PERFORMANCE Note: Includes travel retail. +Mid Single-Digit Organically*1,4 *See Appendix KILIAN PARIS: Moving from Strength to Strength in Fragrance across Multiple Price Tiers La Mer: Thriving In Luxury M·A·C: Reigniting Growth in the Global Prestige Makeup Leader The Ordinary: Soaring as an Indie BEAUTY REIMAGINED | POWERING OUR PORTFOLIO
STRENGTHENED GLOBAL LEADERSHIP IN LUXURY SKIN CARE IN FY26 AND 1Q27 KILIAN PARIS: Moving from Strength to Strength in Fragrance across Multiple Price Tiers La Mer: Thriving In Luxury M·A·C: Reigniting Growth in the Global Prestige Makeup Leader The Ordinary: Soaring as an Indie BEAUTY REIMAGINED | POWERING OUR PORTFOLIO RETURNED TO ORGANIC*1,5 SALES GROWTH IN FY26 AND GREW DOUBLE-DIGITS IN 1Q27 KILIAN PARIS: Moving from Strength to Strength in Fragrance across Multiple Price Tiers The Ordinary: Soaring as an Indie La Mer: Thriving In Luxury M·A·C: Reigniting Growth in the Global Prestige Makeup Leader *See Appendix BEAUTY REIMAGINED | POWERING OUR PORTFOLIO PORTFOLIO’S FASTEST-GROWING BRAND IN FY26 AND 1Q27 M·A·C: Reigniting Growth in the Global Prestige Makeup Leader The Ordinary: Soaring as an Indie La Mer: Thriving In Luxury KILIAN PARIS: Moving from Strength to Strength in Fragrance across Multiple Price Tiers BEAUTY REIMAGINED | POWERING OUR PORTFOLIO 4 CONSECUTIVE QUARTERS OF DOUBLE-DIGIT ORGANIC*1,6 SALES GROWTH KILIAN PARIS: Moving from Strength to Strength in Fragrance across Multiple Price Tiers M·A·C: Reigniting Growth in the Global Prestige Makeup Leader La Mer: Thriving In Luxury The Ordinary: Soaring as an Indie *See Appendix BEAUTY REIMAGINED | POWERING OUR PORTFOLIO
FUELED BY BEAUTY REIMAGINED ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE 1 FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES 4 CREATE TRANSFORMATIVE INNOVATION 2 REIMAGINE THE WAY WE WORK 5 BOOST CONSUMER-FACING INVESTMENTS 3 BEAUTY REIMAGINED | OUR GROWTH PLAYBOOK ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE 1 FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES 4 CREATE TRANSFORMATIVE INNOVATION 2 REIMAGINE THE WAY WE WORK 5 BOOST CONSUMER-FACING INVESTMENTS 3 BEAUTY REIMAGINED | OUR GROWTH PLAYBOOK ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE 1 FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES 4 CREATE TRANSFORMATIVE INNOVATION 2 REIMAGINE THE WAY WE WORK 5 BOOST CONSUMER-FACING INVESTMENTS 3 FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES 4 CREATE TRANSFORMATIVE INNOVATION 2 REIMAGINE THE WAY WE WORK 5 BOOST CONSUMER-FACING INVESTMENTS 3 ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE 1 BEAUTY REIMAGINED | OUR GROWTH PLAYBOOK INCREASING BY +200-250 BPS IN FISCAL 2027 BRINGING INNOVATIONS TO MARKET FASTER THAN EVER
FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES 4 REIMAGINE THE WAY WE WORK 5 BOOST CONSUMER-FACING INVESTMENTS 3 ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE 1 CREATE TRANSFORMATIVE INNOVATION 2 BEAUTY REIMAGINED | OUR GROWTH PLAYBOOK INCREASED CONSUMER-FACING INVESTMENTS FOR 7 CONSECUTIVE QUARTERS INVESTING IN HIGHEST ROI OPPORTUNITIES FOR NEW CONSUMER ACQUISITION ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE 1 FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES 4 CREATE TRANSFORMATIVE INNOVATION 2 REIMAGINE THE WAY WE WORK 5 BOOST CONSUMER-FACING INVESTMENTS 3 BEAUTY REIMAGINED | OUR GROWTH PLAYBOOK EXECUTING FINAL PHASE OF PRGP WITH EXCELLENCE EMBRACING AI AND A CONTINUOUS OPTIMIZATION MINDSET ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE 1 CREATE TRANSFORMATIVE INNOVATION 2 REIMAGINE THE WAY WE WORK 5 BOOST CONSUMER-FACING INVESTMENTS 3 FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES 4 BEAUTY REIMAGINED | OUR GROWTH PLAYBOOK ONE ELC ONE CULTURE ONE OPERATING ECOSYSTEM ONE TEAM ENTERPRISE BUSINESS SERVICES GLOBAL MEDIA MODEL UNIFIED DTC COMMERCE PRIMED TO CAPITALIZE ON ONE ELC | ONE TEAM
PRIMED TO BENEFIT FROM ONE ELC | ONE CULTURE Bold WE LEAD WITH VISION AND AMBITION Entrepreneurial WE EMBRACE OWNERSHIP AND ACCOUNTABILITY Agile WE MOVE FAST, ALWAYS PUTTING THE CONSUMER FIRST Unified WE ARE ONE TEAM Transformational WE TRANSFORM WITH SPEED AND FOCUS YES WE SAY, “YES!” PRIMED TO OPTIMIZE ONE ELC | ONE OPERATING ECOSYSTEM ENTERPRISE BUSINESS SERVICES GLOBAL MEDIA MODEL UNIFIED DTC COMMERCE ACCENTURE: 85% of roles transitioned through October WPP: 100% transitioned, from >30 agencies to one global agency SHOPIFY: On track to deploy 80% of in-scope brand.com sales and ~300 freestanding stores through Fiscal 2027 ACHIEVED 5TH CONSECUTIVE QUARTER OF SALES GROWTH AND MARGIN EXPANSION IN 1Q27 ORGANIC*1 SALES GROWTH Fiscal 1Q26 Fiscal 2Q26 Fiscal 3Q26 Fiscal 4Q26 Fiscal 1Q27 6% 5% 2% 4% 3% ADJUSTED OPERATING MARGIN*1 EXPANSION (BPS) Fiscal 1Q26 Fiscal 2Q26 Fiscal 3Q26 Fiscal 4Q26 Fiscal 1Q27 +480 +330 +360 +290+300 ADJUSTED GROSS MARGIN*1 EXPANSION (BPS) Fiscal 1Q26 Fiscal 2Q26 Fiscal 3Q26 Fiscal 4Q26 Fiscal 1Q27 +240 +360 +140 +40+60 *See Appendix RAISED FISCAL 2027 OUTLOOK +5.0%-6.5% FY27 Reported Sales Growth Up from +3%-5% +4.0%-5.5% FY27 Organic Sales Growth*1 Up from +3%-5% 12.9%-13.7% FY27 Adjusted Operating Margin*1 Up from 12.7%-13.5% +28%-38% FY27 Adjusted Diluted EPS Growth*1 Up from +24%-34% *See Appendix
PRESTIGE BEAUTY’S STRUCTURAL DRIVERS Skin Care Makeup (girls) Fragrance U.S. TEENS: AVERAGE AGE OF FIRST BEAUTY CATEGORY PARTICIPATION Source: BCG x WWD, April 2025, Survey of 1,239 current teens and 726 former teens 2000s Teens 2010s Teens Early 2020s Teens Today’s Teens 15 years 10 years 11.25 years 12.5 years 13.75 years 2020 2050 million Source: Beautystreams, Longevity Market Pulse, citing United Nations Department of Economic and Social Affairs ~700 billion ~1.5 PEOPLE GLOBALLY AGED 65+ GREATER CONSUMER LIFETIME VALUE EMERGING MIDDLE CLASS (MILLIONS OF HOUSEHOLDS) 2015 2025 2035 India Asia, excluding China & India Latin America Eastern Europe Africa & Middle East 10 13 53 33 19 128 31 32 73 63 19 218 106 81 105 69 36 397PRESTIGE BEAUTY’S STRUCTURAL DRIVERS Source: “The Outlook For The Emerging Markets Middle Class” Report, Oxford Economics March 2026. Middle Class as the number of households with disposable income between $20,000-$70,000 per year +13% 2025–2035E CAGR +10% +4% +7% +1% EMERGING MARKETS PRESTIGE BEAUTY’S STRUCTURAL DRIVERS CATEGORY MIX BY REGION CY25 Source: *Euromonitor International Limited 2025 © All rights reserved 11% 18% 61% 10% ASIA/PACIFIC, INCLUDING CHINA Fragrance Hair Care Makeup Skin Care 33% 26% 26% 16% THE AMERICAS Skin Care Hair Care Fragrance Makeup 15% 28% 11% EMEA Makeup Skin Care Hair Care 46% FragranceFRAGRANCE FRAGRANCE’S GLOBAL GROWTH Every Region Is Expected to Contribute to Growth Significant Opportunity to Increase Penetration in Asia/Pacific +High Single-Digit* CY25-CY30E CAGR INDUSTRY GROWTH RATE +4%-5% Nearly 3% Fiscal 2026 Fiscal 2028-2030E CAGR POSITIONED TO CAPTURE PRESTIGE BEAUTY’S ACCELERATING TRENDS
Mid Single-Digit Organic*1 Sales Growth Annually through Fiscal 2030 Fiscal 2030 Adjusted Operating Margin*1 16.5%-18.5% *See Appendix FOCUSED ON DELIVERING FISCAL 2030 AMBITION Akhil Shrivastava EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER BEAUTY REIMAGINED: TURNING AMBITION INTO ACTION Sustainable Sales Growth Growth Outperform Global Prestige Beauty & Gain Share Improved Profitability Margin Expand Margins & Generate Operating Leverage Stronger Cash Generation Cash Efficient Working Capital Optimized Capital Expenditures DRIVE LONG-TERM VALUE CREATION FUEL GROWTH WHILE IMPROVING PROFITABILITY VALUE CREATION PLAYBOOK *See Appendix +3% ORGANIC NET SALES*1 Fiscal 2026 Growth +150BPS ADJUSTED GROSS MARGIN*1 Fiscal 2026 Expansion +7% INCREASE IN CONSUMER-FACING INVESTMENTS Fiscal 2026*7 , including co-op advertising +140BPS OF ADJUSTED OPERATING MARGIN*1 EXPANSION DRIVEN BY NON-CONSUMER-FACING EXPENSE OPTIMIZATION Fiscal 2026 +320BPS ADJUSTED OPERATING MARGIN*1 Fiscal 2026 Expansion Fiscal 2025 Fiscal 2026 24.5%26.0% 36.6%36.9% 27.7%29.1% 11.2%8.0% COST STRUCTURE (% OF NET SALES)*8 Non-Consumer- Facing Expenses Consumer-Facing Expenses*7 Cost of Sales Adjusted Operating Margin*1
Fiscal 2030 Outlook*1 76% - 78% *See Appendix EXPAND ADJUSTED GROSS MARGIN A MORE AGILE AND EFFICIENT VALUE CHAIN HIGHER OVERHEAD PRODUCTIVITY ZERO WASTE MINDSET IN OPERATIONS PROCUREMENT AND PLATFORM SAVINGS IMPROVE PRICE RATIONALIZATION VIA OPTIMIZED PROMOTIONS BUILD ON MEASURABLE PROGRESS *See Appendix Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2030 Outlook ADJUSTED GROSS MARGIN*1 78% 76%75.5% 74.0% 71.7% MAINTAIN COST DISCIPLINE AND EFFICIENCY AS THE BUSINESS GROWS EXECUTE PRGP Full run-rate benefits in FY28 EMBED EVERYDAY EFFICIENCY AI and standardized One ELC processes ONGOING TRANSFORMATION Procurement, organizational effectiveness and media efficiency NON-CONSUMER-FACING EXPENSES (% OF NET SALES) FY25 FY26 FY27 FY30 29.1% 27.7% CONTINUE TO INVEST TO BUILD BRAND DESIRABILITY AND DRIVE GROWTH INVEST FOR GROWTH IMPROVE INVESTMENT EFFECTIVENESS DELIVER OPERATING LEVERAGE *See Appendix CONSUMER-FACING INVESTMENTS*7 ($) FY25 FY26 FY27 FY30 % OF NS +3% YoY Growth +7% YoY Growth
EXPAND ADJUSTED OPERATING MARGIN*1 *See Appendix ADJUSTED OPERATING MARGIN*1 BETWEEN 850BPS TO 1,050BPS OF EXPANSION IN 5 YEARS 13.7% 12.9% 18.5% 16.5% FY27 Revised Outlook FY30FY25 FY26 8.0% 11.2% IMPROVE ADJUSTED EFFECTIVE TAX RATE*1 THROUGH FISCAL 2030 *See Appendix FY25 FY26 FY27 FY30 35.7% 33%-34% 30% or below 38.8% RECOVERY AND REBALANCING OF PROFITABILITY TAX PLANNING INITIATIVES ALIGNED WITH STRATEGIC CHANGES TO OUR MIX OF BUSINESS DELIVER ADJUSTED EPS GROWTH*1 Double-Digit Adjusted EPS Growth through Fiscal 2030 Sales Growth Margin Expansion Lower Effective Tax Rate *See Appendix GENERATE CASH TO FUND GROWTH AND ENHANCE FINANCIAL FLEXIBILITY *See Appendix Operating Cash Flow Capital Expenditures Free Cash Flow*1 INVEST IN THE BUSINESS REPAY DEBT RETURN CAPITAL TO SHAREHOLDERS WHITESPACE M&A - MINORITY INVESTMENTS AND SINGLE-BRAND ACQUISITIONS Maintain Disciplined Capital Allocation
CREATE LONG-TERM VALUE THROUGH BEAUTY REIMAGINED Growth Outperform Global Prestige Beauty & Gain Share Margin Deliver Operating Leverage at the Same Level of Sales Growth Cash Generate Stronger Cash with Disciplined Capital Allocation Strong and Sustainable Value Creation Brian Franz CHIEF TECHNOLOGY & TRANSFORMATION OFFICER BEAUTY REIMAGINED: TURNING AMBITION INTO ACTION ONE ELC TRANSFORMATION DRIVES SUSTAINABLE GROWTH, MARGINS AND PROFITABILITY CONTINUOUS OPTIMIZATION ALIGNED TO BEAUTY REIMAGINED AI AS AN ENTERPRISE CAPABILITY WITH DATA AS A STRATEGIC ASSET ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE Unified Commerce Digital/Consumer Flywheel Dynamic Value Chain CREATE TRANSFORMATIVE INNOVATION Faster Innovation BOOST CONSUMER-FACING INVESTMENTS Decision Intelligence FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES Spend Efficiency REIMAGINE THE WAY WE WORK Enterprise Business Services II. DECISION INTELLIGENCE Connect data and insights to improve decisions I. NEW CAPABILITIES & GROWTH Power differentiated experiences and products III. INDIVIDUAL PRODUCTIVITY & PROCESS AUTOMATIONS Enable employees with enterprise AI tools and agentic automation EMBEDDING AI IN THE EXPERIENCES, DECISIONS AND WORKFLOWS THAT MATTER MOST Foundations Established ✓ Evolved Organization ✓ Partner Ecosystem ✓ Unified Data Platform ✓ Unified Commerce Platform ✓ Governance
FOCUSING ON HIGHEST-VALUE OPPORTUNITIES TO SCALE AI NEW CAPABILITIES & GROWTH Agentic Commerce & Experiences AI-Enabled Product Innovation DECISION INTELLIGENCE Conversational Analytics Formula Development Inventory Deployment INDIVIDUAL PRODUCTIVITY & PROCESS AUTOMATIONS People Experience Transformation Enterprise Enablement VALUE-BASED, END-TO-END PROCESS REDESIGN ENABLING CONTINUOUS PRODUCTIVITY FOCUSING ON HIGHEST-VALUE OPPORTUNITIES TO SCALE AI NEW CAPABILITIES & GROWTH Agentic Commerce & Experiences AI-Enabled Product Innovation FOCUSING ON HIGHEST-VALUE OPPORTUNITIES TO SCALE AI NEW CAPABILITIES & GROWTH Agentic Commerce & Experiences AI-Enabled Product Innovation DECISION INTELLIGENCE Conversational Analytics Formula Development Inventory Deployment INDIVIDUAL PRODUCTIVITY & PROCESS AUTOMATIONS People Experience Transformation Enterprise Enablement VALUE-BASED, END-TO-END PROCESS REDESIGN ENABLING CONTINUOUS PRODUCTIVITY FOCUSING ON HIGHEST-VALUE OPPORTUNITIES TO SCALE AI INDIVIDUAL PRODUCTIVITY & PROCESS AUTOMATIONS People Experience Transformation Enterprise Enablement
UNIFIED COMMERCE PLATFORM: EFFICIENT, SCALABLE FOUNDATION TO DRIVE OMNICHANNEL EXPERIENCE AND GROWTH LAUNCHING ACROSS PORTFOLIO BY FY28 +12% checkout completion ~60% Shop Pay adoption 90 Search Engine Optimization score 6-8 weeks launch time (vs. 5-6 months) DECISION INTELLIGENCE TO OPTIMIZE RESOURCE ALLOCATION REAL-TIME Connected Al Decision Layer Unified Commerce Platform Unified Data Platform ✓ Connected insights ✓ Forward-looking ✓ Faster, better decisions R&I Marketing Value Chain Commercial DECISION INTELLIGENCE ENGINE Across 4 focus areas: DRIVING INDIRECT SPEND EFFICIENCY PROCUREMENT & PROCESS EXCELLENCE DISCIPLINED SPEND MANAGEMENT TAIL SPEND CONSOLIDATION
ENTERPRISE BUSINESS SERVICES BUILDS SCALABLE FOUNDATION FOR GROWTH STANDARDIZED INTEGRATED PLATFORMS / AI SCALABLE EFFICIENCY CONTINUOUS OPTIMIZATION Enterprise model connecting: Finance, Tech, Data & Analytics, People, Supply Chain Planning, Consumer Care, Marketing FOCUS ON CONSUMER CENTRICITY • Simplify critical processes • Change the work to drive agility • Enable ELC to focus on consumers STRATEGIC LEVERS • Leverage partner expertise • Harness shared tech / data to operate & scale • B.E.A.U.T.Y. Commitments EMPOWERING OUR PEOPLE TO REIMAGINE WORK WITH AI Notes: * Active adoption across Microsoft 365 Copilot and ChatGPT Enterprise users. ** Growth in ChatGPT active usage compared with the same period last year. BUILD CAPABILITIES THROUGH LEARNING >50% of knowledge workers trained on AI 90% Active Adoption of enterprise AI tools* +60% usage since last year** CREATE SHARED AI-FORWARD MINDSET CONTINUOUS IMPROVEMENT ALIGNED TO BEAUTY REIMAGINED AI AS AN ENTERPRISE CAPABILITY WITH DATA AS A STRATEGIC ASSET ACCELERATE BEST-IN-CLASS CONSUMER COVERAGE Unified Consumer Data Platform Omni Experience Tech-Driven Fulfillment Automation CREATE TRANSFORMATIVE INNOVATION China Innovation Center BOOST CONSUMER-FACING INVESTMENTS Decision Intelligence FUEL SUSTAINABLE GROWTH THROUGH BOLD EFFICIENCIES Spend Efficiency REIMAGINE THE WAY WE WORK Enterprise Business Services CHINA ACCELERATES LEARNING FOR ONE ELC TRANSFORMATION China-specific Global capabilities DRIVING CONTINUOUS OPTIMIZATION THROUGHONE ELC TRANSFORMATION DRIVES SUSTAINABLE GROWTH AND MARGIN EXPANSION FOUNDATIONAL PLATFORMS TALENT AND ECOSYSTEM SIMPLIFICATION OF HOW WE WORK SPEND DISCIPLINE AI FOR SPEED, AGILITY AND INNOVATION
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