Global Operations

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Overview

Global Operations

Our Global Presence

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The Americas

  • 9 Affiliate offices
  • 42% Of total net sales
  • 1 Global headquarters
  • 70 Years in business

SOURCE: The Estée Lauder Companies, June 2016

Map of Americas

The Americas is The Estée Lauder Companies largest region in terms of sales, contributing 42% or $4.71 billion to the Company's total net sales in FY 2016. The Americas consists of all manufacturing and sales operations within the United States, Canada and Latin America. The Company’s global headquarters are located in New York City and its first manufacturing facility was established in Melville, New York.

The Company first began selling products in the United States in 1946. The Estée Lauder brand began selling in prestige retail stores in Canada in 1960, during the Company’s early wave of expansion. With the acquisition of MAC in 1994 – a brand that originated in Canada – the Company expanded its footprint in the country to include manufacturing, R&D and distribution centers.

Chris Good

The North America business is led by Chris Good, President, North America (right). Today, the North America business is structured with dedicated affiliate offices in the United States and Canada to service the unique needs of consumers and retailers.

Spotlight: Latin America (LATAM)

In FY 2016, Latin America was the Company’s fastest growing region for the sixth consecutive year. The Company’s Latin American headquarters has been based in New York City since 2009. In addition, we maintain offices and field operations in Argentina, Brazil, Chile, Mexico, Peru and Venezuela to service the broader region – where recent consumer trends, including the proliferation of shopping malls, and digital and social media growth – have contributed to an increased demand for luxury and beauty products.

Daniel Rachmanis

Daniel Rachmanis, President, Latin America (left) has led the Company’s expansion in the region since 2009. The Company has achieved the number one position in prestige beauty in Latin America thanks to our strong growth across categories, brands, and geographies.

The Company continues to increase share of direct-to-consumer business in the region through our growth of freestanding stores and e-commerce. In 2015, we launched Jo Malone London and La Mer in Brazil. We also continue to expand our footprint in second- and third-tier cities across the region.

Europe, the Middle East & Africa (EMEA)

  • 80± Countries
  • 39% Of total net sales
  • 800± Freestanding stores
  • 17 Affiliate offices

SOURCE: The Estée Lauder Companies, June 2016

After the Company established a presence in 1960 in London, England, a decade of robust global expansion ensued, including entry into France, Germany and Sweden. This included the building of manufacturing facilities in Belgium and Switzerland to meet growing demand. The first African affiliate was established in 1974 in South Africa, and one debuted in 1996 in the Middle East.

Map of EMEA

Today this multicultural and diverse geographic area, composed of approximately 80 countries, contributes the highest percentage of our operating income and includes continental Europe and rapidly growing emerging markets such as Turkey, the Middle East, South Africa and India. In FY 2016, the EMEA region contributed $4.38 billion or 39 percent of the total Company net sales.

Peter Jueptner

Approximately 19,000 people are employed throughout the EMEA region, where the company operates 17 affiliate offices, two R&D centers, three manufacturing facilities and ten distribution centers. There are more than 800 freestanding stores and thousands of points of sale catering to consumers at retail outlets and online. EMEA’s regional headquarters is in Paris, France. The headquarters has a diverse workforce, with 23 languages spoken. More than 60 percent of the employees are millennials. Effective September 2016, Peter Jueptner (right) has been appointed President, EMEA.

Spotlight: United Kingdom & Ireland

The Estée Lauder Companies UK & Ireland is the number one prestige beauty company in the UK where our brands are sold in more than 4,000 doors. In 1960, our first overseas account was launched in Harrods, the prestigious store in London, helping to establish the United Kingdom & Ireland as a core market.

In the UK & Ireland there are approximately 10,000 employees and the company was ranked as one of the Sunday Times '30 Best Big Companies to Work For' 2017 based on employee survey results. In 2015 the UK & Ireland headquarters moved to a new location as One Fitzroy in London, which houses 500 employees along with operations, an innovation lab and training facilities. One Fitzroy recently won the British Council for Offices Award for Fit-Out of Workplace for the London Region, and Best Workplace Interior at the World Interiors News Awards 2016.

The West End is also home to Jo Malone London’s iconic 18th century Georgian townhouse, which features design studios, boardrooms and a salon. A hi-tech distribution center at Kite’s Croft in Hampshire includes 160,000 square feet of warehouse and office space for 300 staff.

The UK & Ireland is committed to initiatives including M·A·C VIVA GLAM, Bobbi Brown’s PrettyPowerful, Jo Malone London’s Garden Goodness, Breast Cancer Campaign, Look Good Feel Better, Kiss it Better for childhood cancer research and Aveda’s Earth Month. Other charities supported by our efforts in the region include Smart Works, The Blue Marine Foundation, Trees for Cities, Global Fund for Children and Global Re-Leaf. The Wellness & Harmonisation Programme for employees includes yoga and pilates classes and nutritionist-designed menus at the staff restaurants.

Asia/Pacific

  • 13 Affiliate offices
  • 19% Of total net sales
  • 300+ Freestanding stores
  • 16,000± Full-time employees

SOURCE: The Estée Lauder Companies, June 2016

Map of Americas

Asia/Pacific (APAC), home to 60 percent of the world’s population, is one of the fastest growing regions for the Company. Asian consumers are among the most discerning in the world — which bodes well for the prestige beauty category. In FY 2016, the Asia/Pacific region contributed 19% or $2.17 billion to the Company's total net sales.

Fabrice Weber

The Estée Lauder Companies first established a presence in Hong Kong in 1961. Four years later Australia became the region’s first affiliate. Today approximately 16,000 people are employed full time in the APAC region, where the Company operates 13 affiliate offices, two R&D centers, three creative and trend labs, and multiple distribution centers. There are more than 300 freestanding stores and thousands of points of sale catering to consumers at retail outlets and online.

Leading the region is Fabrice Weber (right). Regional headquarters is in Hong Kong. APAC employees are highly engaged in the Company’s global philanthropy and corporate citizenship efforts around health, the environment and education, as well as in locally supported charitable initiatives.

Spotlight: China

In 1993, the Estée Lauder and Clinique brands were launched in China, with the first counters set up in Shanghai. In 2002, we opened our China affiliate office. Today we are a leader in China’s prestige beauty industry, with more than 1,600 retail locations at upscale department stores, freestanding stores and specialty-multi retailers in more than 110 cities. Our brand e-commerce sites in China draw shoppers from over 600 cities across the country, including ones where the Company has no retail locations.

To better understand the needs of Asian consumers, we established an R&D team in 2005, and we opened a dedicated R&D center in 2011 in Shanghai to develop skin care products for the Asian market. The extension of our research capabilities reinforces our strong commitment to local consumers and allows us to draw upon the scientific knowledge base and expertise of local talent.

Our employees in China actively embrace the Company’s citizenship efforts, such as the Breast Cancer Awareness Campaign and our brand-led causes, while tailoring community outreach initiatives to meet the needs of the Chinese population. This includes working with the Chinese People’s Association for Friendship with Foreign Countries to develop the Rainbow Bridge project, which addresses “left behind” children.

THE AMERICAS

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The Estée Lauder Companies' Global Operations

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