LEONARD A. LAUDER
CHAIRMAN EMERITUS' LETTER
Dear Fellow Stockholders:
For 63 years, The Estée Lauder Companies has excelled at building innovative brands that have appealed to consumers all over the globe. Along the way we have weathered tough challenges, including severe recessions and key customers going out of business. But we have always emerged a greater company- stronger, smarter and more flexible. Difficult times reward companies that are versatile, adaptive and diversified. All are true of The Estée Lauder Companies.
Fiscal 2009 was a challenging year, as we and everyone else confronted a global economic downturn.
Under the strong leadership of our Executive Chairman, William P. Lauder, and our President and
Chief Executive Officer, Fabrizio Freda, we quickly took action to respond to the external environment.
The following report will provide detail on our new corporate strategy, which was rolled out in fiscal 2009.
This strategy provides a roadmap to speed up innovation, prioritize investments, rein in costs and usher in
the next stage of our Company's growth.
DIFFICULT TIMES REWARD COMPANIES THAT
ARE VERSATILE, ADAPTIVE AND DIVERSIFIED.
ALL ARE TRUE OF THE ESTÉE LAUDER COMPANIES.
As we welcome Fabrizio Freda as our new Chief Executive Officer, I want to thank William Lauder for the outstanding accomplishments our Company achieved while he was Chief Executive Officer. Thanks to his knowledge and keen insights, we expanded our international reach, increased our presence in new channels of distribution-particularly the fast-growing Internet and direct response television - and greatly strengthened our brand portfolio, all of which contributed to our Company's growth.
At the start of fiscal 2010, I transitioned into a new role as Chairman Emeritus. As a continuing member of the Board and a long-time stockholder, I have full confidence that under William and Fabrizio's leadership, our Company will continue to achieve even greater pinnacles of success. William's profound understanding of The Estée Lauder Companies and its rich heritage, combined with Fabrizio's deep business acumen and strategic vision, will continue a long tradition of strong partnership at the Company's helm.
This leadership team marks the start of a new era at The Estée Lauder Companies. As I assume my new position, I will continue to provide advice and guidance to the leaders of the Company so we can continue the incredible journey that started more than half a century ago when I came to work at a small cosmetics company started by my mother.
I want to thank, with deep appreciation and gratitude, all our employees, retail partners and consumers who have helped build The Estée Lauder Companies into what it is today-a worldwide leader in prestige beauty.