School Project of annual report short layout. Created Layout with CS3 InDesign and edited photos with CS3 Photoshop.

1. COMPANIES
2008
ANNUAL REPORT
LesleyEsteeFinal.indd 1 2/20/2009 11:58:52 PM

2. HOW WE GROW
Our strategy for profi table growth is maintaining our unwavering commitment
to “bringing the best to everyone we touch” while continually expanding into
new regions, new distribution channels and new brands. This is our story.
TODAY, OUR PRODUCTS ARE SOLD
IN MORE THAN 140 COUNTRIES AND TERRITORIES.
WE HAVE 29 BRANDS.
AND WE ACHIEVED NEARLY $8,000,000,000 IN GLOBAL SALES.
800
2008
700
8
Reductions
600
7
Additions
6 500
5 400 2007
4
300
Reductions
3
200
2 Additions
100
1
2006
0 0
1953 1972 1985 1991 2008 Skin Care Makeup Fragrance Hair Care Total
Estee Lauder 1953-2008 Profit Growth (in billions) Estee Lauder 2006-2008 Net Profit by Product (in millions)
LesleyEsteeFinal.indd 2 2/20/2009 11:58:52 PM

3. TABLE OF CONTENTS
Letter To The Stockholder Page 5
Year in Review 2009 Pages 6-7
Statement of Earnings Pages 9
Board of Director Pages10-11
LesleyEsteeFinal.indd 3 2/20/2009 11:58:52 PM

4. Estee Lauder: 1962 by Adam Smith
BEST
BRINGING THE
TO EVERYONE We Touch.
COMPANIES
LesleyEsteeFinal.indd 4 2/20/2009 11:58:53 PM

5. ESTEE LAUDER LETTER TO THE STOCKHOLDERS 5
Dear Fellow Stockholders:
Every year for the past 62 years, The Estée Lauder Companies
has continued to grow. I am proud to report that thanks to
the efforts of our 32,000 dedicated employees, we continued
that trend with excellent financial results in the 2008
fiscal year.
I am often asked how the Company will maintain its growth
record as we look forward to the next era, especially in times
as challenging as the present. I believe the answer can be
found in our unparalleled multi-national, multi-channel and
multi-brand strategy.
As Chairman of the Company, I am extremely gratified by the
progress we have made. We have grown from just three brands
in the 1960s to a dynamic portfolio of 29 cherished brands
today that help women and men look and feel their best.
Until 1961, our products were available on only one continent. LEONARD A. LAUDER: CHAIRMAN
Today, we sell our stellar brands in more than 140 countries and territories. As our consumers ven-
tured out to try other shopping venues, we also expanded our distribution to match their lifestyles.
Our Company’s strength lies in its innovation, ability to stay fresh and relevant, and unwavering
commitment to “Bringing the Best to Everyone We Touch.”
I applaud the efforts of our Chief Executive Officer, William Lauder, and his outstanding leader-
ship team, to amplify our progress in the years ahead. They are working to ensure that
we continue to exceed consumers’ expectations, that outstanding quality remains the hallmark
of our products and services, and that all of our talented people work together to focus our
resources on achieving new levels of success.
While the challenges of operating a business on a global scale are great, I am confident that
our opportunities are even greater, and that we are well positioned to make the most of those
opportunities. As always, your support of our Company, our brands and our leadership is
greatly appreciated.
Sincerely,
Leonard A. Lauder
Chairman
LesleyEsteeFinal.indd 5 2/20/2009 11:58:53 PM

6. ESTEE LAUDER YEAR IN REVIEW 6
FRAGRANCE
2008
Accounts for 18 percent of total net sales
• Fragrance sales grew in every region, led by solid
gains in Europe, the Middle East & Africa and Asia/
Pacific, as well as a modest increase in the Ameri-
cas, resulting in the category growing 9.4 percent
to more than $1.4 billion.
• Contributing to the fragrance sales growth were hit
products such as Sean John Unforgivable Woman,
Dreaming Tommy Hilfiger, DKNY Be Delicious,
Donna Karan Cashmere Mist and Estée Lauder
Pure White Linen Light Breeze.
YEAR IN REVIEW
MAKEUP
Accounts for 38 percent of total net sales
• A $3 billion category in fiscal 2008, makeup grew
10.6 percent, driven by solid double-digit sales
gains in international markets.
• Makeup artist brands M.A.C and Bobbi Brown
accounted for nearly two-thirds of the incremental
sales.
• Incremental sales from the launches of Estée
Lauder Signature Hydra Lustre Lipstick and
Supermoisture Makeup from Clinique contributed
to the sales performance.
LesleyEsteeFinal.indd 6 2/20/2009 11:58:54 PM

7. ESTEE LAUDER YEAR IN REVIEW 7
SKIN CARE
Accounts for 38 percent of total net sales
• Skin care sales reached $3 billion in fiscal 2008,
and delivered our best rate of sales growth at
15.2 percent.
• Sales growth was strongest in the Asia/Pacific
region, thanks to new skin care and whitening
products and higher sales in Greater China.
• New products that contributed to growth
included Idealist Pore Minimizing Skin
Refinisher and Cyber White EX by Estée Lauder
and Acne Solutions
• Clear Skin System and Redness Solutions
from Clinique. La Mer posted double-digit gains,
partly due to the success of The Eye Concentrate.
HAIR CARE
Accounts for 6 percent of total net sales
• The 13.3 percent rise in hair care product sales
primarily reflected the inclusion of the Ojon
wildcrafted beauty brand, and higher sales from
Aveda and Bumble and bumble.
• Aveda’s net sales benefited from the launches of
Smooth Infusion and Aveda Men Pure-Formance
products, while Bumble and bumble’s sales were
up primarily due to new points of distribution.
LesleyEsteeFinal.indd 7 2/20/2009 11:58:54 PM

8. QUALITY
Remains the
HALLMARK
Of Our Products and Services.
LesleyEsteeFinal.indd 8 2/20/2009 11:58:55 PM

9. ESTEE LAUDER STATEMENT OF EARNINGS 9
CONSOLIDATED STATEMENTS OF EARNINGS
YEAR ENDED JUNE 30th 2008 2007 2006
Net Sales $7,910.8 $7,037.5 $6,463.8
Cost of sales 1,996.8 1,774.8 1,686.6
Gross Profit 5,914.0 5,262.7 4,777.2
Operating expenses:
Selling, general and administrative 5,102.9 4,511.7 4,065.5
Special charges related
to cost savings initiative 0.4 1.1 92.1
Operating Income 5,103.3 4,512.8 4,157.6
Interest expense, net 810.7 749.9 619.6
Earnings before Income Taxes, Minority Interest 66.8 38.9 23.8
Minority Interest and Discontinued Operations 743.9 711.0 595.8
Provision for income taxes 259.9 255.2 259.7
Minority interest, net of tax (10.2) (7.1) (11.6)
Net Earnings from Continuing Operations 473.8 448.7 324.5
Discontinued operations, net of tax — 0.5 (80.3)
Net Earnings
Basic net earnings per common share: $473.8 $449.2 $244.2
Net earnings from continuing operations $2.44 $2.20 $1.51
Discontinued operations, net of tax — .00 (.37)
Net earnings
Diluted net earnings per common share $2.44 $2.20 $1.14
Net earnings from continuing operations $2.40 $2.16 $1.49
Discontinued operations, net of tax — .00 (.37)
Net earnings
Weighted average common shares outstanding:
Basic $2.40 $2.16 $1.12
Diluted 193.9 204.3 215.0
Cash dividends declared per share 197.1 207.8 217.4
(In millions, except per share data)
LesleyEsteeFinal.indd 9 2/20/2009 11:58:55 PM

10. ESTEE LAUDER BOARD OF DIRECTORS 10
LEONARD A. LAUDE CHARLENE BARSHEFSKY ROSE MARIE BRAVO, CBE
Chairman Senior International Partner Former Vice Chairman
The Estée Lauder Wilmer Cutler Pickering Burberry Group Plc.
Companies Inc. Hale and Dorr LLP
ESTÉE LAUDER
PAUL J. FRIBOURG MELLODY HOBSON IRVINE O. HOCKADAY, JR.
Chairman President Retired President and
Chief Executive Officer Ariel Investments, LLC Chief Executive Officer
Continental Grain Company Hallmark Cards, Inc.
LesleyEsteeFinal.indd 10 2/20/2009 11:58:55 PM

11. ESTEE LAUDER BOARD OF DIRECTORS 11
AERIN LAUDER RONALD S. LAUDER WILLIAM P. LAUDER
Senior Vice President Chairman Chief Executive Officer
Creative Director Clinique Laboratories, LLC The Estée Lauder
Estée Lauder Companies Inc.
BOARD OF DIRECTORS
RICHARD D. PARSONS LYNN FORESER-DEOTHSCHILD BARRY S. STERNLICHT
Chairman Chief Executive President
Time Warner EL Rothschild LLC Chief Executive Officer
Starwood Capital Group
LesleyEsteeFinal.indd 11 2/20/2009 11:58:56 PM

12. COMPANIES
767 FIFTH AVENUE
NEW YORK, NEW YORK 10153
LesleyEsteeFinal.indd 12 2/20/2009 11:58:56 PM