The Estée Lauder Companies Inc. Recast Historical Financial Information to Reflect the Current Geographic Region Structure (Form 8-K)

The Estée Lauder Companies Inc.

Recast Historical Financial Information to Reflect the Current Geographic Region Structure

(Unaudited)

To provide investors with historical information on a basis consistent with its new geographic region reporting structure, The Estée Lauder Companies Inc. (the "Company") has recast its historical results by geographic region to conform to the new regional structure. The Company's four geographic regions, effective July 1, 2025, are:

•The Americas, which will continue to include North America and Latin America;

•Europe, the United Kingdom and Ireland and Emerging Markets ("EUKEM"), which will continue to include the geographic markets of its previously reported Europe, the Middle East & Africa region, will exclude its global travel retail business, and will include its Southeast Asian Emerging Markets, previously reported in its Asia/Pacific region, of Indonesia, Malaysia, the Philippines, Thailand and Vietnam;

•Asia/Pacific, which will continue to include certain geographic markets of its previously reported Asia/Pacific region, such as Japan, Korea, Hong Kong SAR, and Australia, among others, and will also include its global travel retail business, previously reported in its Europe, the Middle East & Africa region; and

•Mainland China, previously reported in its Asia/Pacific region, will now be reported as a separate region.

In connection with the reorganization of the Company's geographic regions, the Company has changed its methodology used to report certain global and regional activity to reflect management's view of the business. The primary revisions to operating results by region include (i) excluding the impacts of intercompany royalty activities globally, (ii) the allocation of corporate expenses to all regions, including global support functions, which had historically been reported in The Americas region, and (iii) the allocation of impacts from the Company's manufacturing facilities to all regions, which had historically been reported in the region where the facilities are located. These changes were made to reflect management's view that these activities are conducted to benefit the Company on a global basis.

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FISCAL 2025 AND 2024 RESULTS BY REGION

Results by Geographic Region (Unaudited)
			Three Months Ended September 30,
			Net Sales						Percentage Change1									Operating (Loss) Income						Percentage Change
($ in millions)			2024			2023			Reported Basis			Impact of Foreign Currency Translation			Organic Net Sales (Non-GAAP)			2024			2023			Reported Basis
The Americas			$	1,197		$	1,217		(2)		%	1		%	(1)		%	$	19		$	(17)		100+%
EUKEM			868			825			5			(2)			3			(30)			4			(100+)
Asia/Pacific			806			905			(11)			-			(11)			37			112			(67)
Mainland China			490			571			(14)			(2)			(16)			(41)			1			(100+)
Subtotal			$	3,361		$	3,518		(4)		%	(1)		%	(5)		%	$	(15)		$	100		(100+)%
Returns/charges associated with restructuring and other activities			-			-												(106)			(2)
Total			$	3,361		$	3,518		(4)		%	(1)		%	(5)		%	$	(121)		$	98		(100+)%
Non-GAAP Adjustments to As Reported Operating (Loss) Income:
Returns/charges associated with restructuring and other activities																		106			2
The Americas - Changes in fair value of DECIEM acquisition-related stock options																		-			8
The Americas - Talcum litigation settlement agreements																		159			-
Adjusted Operating Income - Non-GAAP																		$	144		$	108		33		%
1Percentages are calculated on an individual basis.

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Results by Geographic Region (Unaudited)
			Three Months Ended December 31,
			Net Sales						Percentage Change1									Operating (Loss) Income						Percentage Change
($ in millions)			2024			2023			Reported Basis			Impact of Foreign Currency Translation			Organic Net Sales (Non-GAAP)			2024			2023			Reported Basis
The Americas			$	1,209		$	1,239		(2)		%	1		%	(1)		%	$	(875)		$	145		(100+)%
EUKEM			1,085			1,064			2			-			2			185			103			80
Asia/Pacific			888			1,069			(17)			1			(16)			191			214			(11)
Mainland China			822			908			(9)			(1)			(10)			100			120			(17)
Subtotal			$	4,004		$	4,280		(6)		%	-		%	(6)		%	$	(399)		$	582		(100+)%
Returns/charges associated with restructuring and other activities			-			(1)												(181)			(8)
Total			$	4,004		$	4,279		(6)		%	-		%	(6)		%	$	(580)		$	574		(100+)%
Non-GAAP Adjustments to As Reported Operating (Loss) Income:
Returns/charges associated with restructuring and other activities																		181			8
The Americas - Goodwill and other intangible asset impairments																		861			-
The Americas - Change in fair value of DECIEM acquisition-related stock options																		-			(5)
Adjusted Operating Income - Non-GAAP																		$	462		$	577		(20)		%
1Percentages are calculated on an individual basis.

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Results by Geographic Region (Unaudited)
			Six Months Ended December 31,
			Net Sales						Percentage Change1									Operating (Loss) Income						Percentage Change
($ in millions)			2024			2023			Reported Basis			Impact of Foreign Currency Translation			Organic Net Sales (Non-GAAP)			2024			2023			Reported Basis
The Americas			$	2,406		$	2,456		(2)		%	1		%	(1)		%	$	(856)		$	128		(100+)%
EUKEM			1,953			1,889			3			(1)			2			155			107			45
Asia/Pacific			1,694			1,974			(14)			1			(13)			228			326			(30)
Mainland China			1,312			1,479			(11)			(1)			(12)			59			121			(51)
Subtotal			$	7,365		$	7,798		(6)		%	-		%	(6)		%	$	(414)		$	682		(100+)%
Returns/charges associated with restructuring and other activities			-			(1)												(287)			(10)
Total			$	7,365		$	7,797		(6)		%	-		%	(6)		%	$	(701)		$	672		(100+)%
Non-GAAP Adjustments to As Reported Operating (Loss) Income:
Returns/charges associated with restructuring and other activities																		287			10
The Americas - Goodwill and other intangible asset impairments																		861			-
The Americas - Talcum litigation settlement agreements																		159			-
The Americas - Change in fair value of DECIEM acquisition-related stock options																		-			3
Adjusted Operating Income - Non-GAAP																		$	606		$	685		(12)		%
1Percentages are calculated on an individual basis.

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Results by Geographic Region (Unaudited)
			Three Months Ended March 31,
			Net Sales						Percentage Change1									Operating Income						Percentage Change
($ in millions)			2025			2024			Reported Basis			Impact of Foreign Currency Translation			Organic Net Sales (Non-GAAP)			2025			2024			Reported Basis
The Americas			$	1,063		$	1,129		(6)		%	2		%	(4)		%	$	67		$	45		49		%
EUKEM			785			836			(6)			1			(5)			28			30			(7)
Asia/Pacific			1,006			1,295			(22)			1			(21)			232			337			(31)
Mainland China			696			680			2			1			4			76			137			(45)
Subtotal			$	3,550		$	3,940		(10)		%	1		%	(9)		%	$	403		$	549		(27)		%
Returns/charges associated with restructuring and other activities			-			-												(97)			(18)
Total			$	3,550		$	3,940		(10)		%	1		%	(9)		%	$	306		$	531		(42)		%
Non-GAAP Adjustments to As Reported Operating Income:
Returns/charges associated with restructuring and other activities																		97			18
The Americas - Changes in fair value of DECIEM acquisition-related stock options																		-			5
Adjusted Operating Income - Non-GAAP																		$	403		$	554		(27)		%
1Percentages are calculated on an individual basis.

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Results by Geographic Region (Unaudited)
			Nine Months Ended March 31,
			Net Sales						Percentage Change1									Operating (Loss) Income						Percentage Change
($ in millions)			2025			2024			Reported Basis			Impact of Foreign Currency Translation			Organic Net Sales (Non-GAAP)			2025			2024			Reported Basis
The Americas			$	3,469		$	3,585		(3)		%	1		%	(2)		%	$	(789)		$	173		(100+)%
EUKEM			2,738			2,725			-			-			-			183			137			34
Asia/Pacific			2,700			3,269			(17)			1			(16)			460			663			(31)
Mainland China			2,008			2,159			(7)			-			(7)			135			258			(48)
Subtotal			$	10,915		$	11,738		(7)		%	-		%	(7)		%	$	(11)		$	1,231		(100+)%
Returns/charges associated with restructuring and other activities			-			(1)												(384)			(28)
Total			$	10,915		$	11,737		(7)		%	-		%	(7)		%	$	(395)		$	1,203		(100+)%
Non-GAAP Adjustments to As Reported Operating (Loss) Income:
Returns/charges associated with restructuring and other activities																		384			28
The Americas - Goodwill and other intangible asset impairments																		861			-
The Americas - Talcum litigation settlement agreements																		159			-
The Americas - Change in fair value of DECIEM acquisition-related stock options																		-			8
Adjusted Operating Income - Non-GAAP																		$	1,009		$	1,239		(19)		%
1Percentages are calculated on an individual basis.

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Results by Geographic Region (Unaudited)
			Three Months Ended June 30,
			Net Sales						Percentage Change1									Operating (Loss) Income						Percentage Change
($ in millions)			2025			2024			Reported Basis			Impact of Foreign Currency Translation			Organic Net Sales (Non-GAAP)			2025			2024			Reported Basis
The Americas			$	941		$	994		(5)		%	1		%	(4)		%	$	(29)		$	(5)		(100+)%
EUKEM			828			814			2			(5)			(3)			(38)			(35)			(9)
Asia/Pacific			906			1,318			(31)			-			(31)			(280)			(153)			(83)
Mainland China			733			745			(2)			-			(1)			59			56			5
Subtotal			$	3,408		$	3,871		(12)		%	(1)		%	(13)		%	$	(288)		$	(137)		(100+)%
Returns/charges associated with restructuring and other activities			3			-												(102)			(96)
Total			$	3,411		$	3,871		(12)		%	(1)		%	(13)		%	$	(390)		$	(233)		(67)		%
Non-GAAP Adjustments to As Reported Operating Loss:
Returns/charges associated with restructuring and other activities																		102			96
The Americas - Other intangible asset impairments																		50			-
Asia/Pacific - Goodwill and other intangible asset impairments																		375			471
The Americas - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax																		-			6
EUKEM - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax																		-			9
Adjusted Operating Income - Non-GAAP																		$	137		$	349		(61)		%
1Percentages are calculated on an individual basis.

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Results by Geographic Region (Unaudited)
			Year Ended June 30,
			Net Sales						Percentage Change1									Operating (Loss) Income						Percentage Change
($ in millions)			2025			2024			Reported Basis			Impact of Foreign Currency Translation			Organic Net Sales (Non-GAAP)			2025			2024			Reported Basis
The Americas			$	4,410		$	4,579		(4)		%	1		%	(3)		%	$	(818)		$	168		(100+)%
EUKEM			3,566			3,539			1			(1)			(1)			145			102			42
Asia/Pacific			3,606			4,587			(21)			1			(21)			180			510			(65)
Mainland China			2,741			2,904			(6)			-			(6)			194			314			(38)
Subtotal			$	14,323		$	15,609		(8)		%	-		%	(8)		%	$	(299)		$	1,094		(100+)%
Returns/charges associated with restructuring and other activities			3			(1)												(486)			(124)
Total			$	14,326		$	15,608		(8)		%	-		%	(8)		%	$	(785)		$	970		(100+)%
Non-GAAP Adjustments to As Reported Operating (Loss) Income:
Returns/charges associated with restructuring and other activities																		486			124
The Americas - Goodwill and other intangible asset impairments																		911			-
Asia/Pacific - Goodwill and other intangible asset impairments																		375			471
The Americas - Talcum litigation settlement agreements																		159			-
The Americas - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax																		-			14
EUKEM - Changes in fair value of DECIEM acquisition-related stock options inclusive of payroll tax																		-			9
Adjusted Operating Income - Non-GAAP																		$	1,146		$	1,588		(28)		%
1Percentages are calculated on an individual basis.

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This document includes some non-GAAP financial measures relating to charges associated with restructuring and other activities and adjustments, as well as organic net sales. Included herein are reconciliations between the non-GAAP financial measures and the most directly comparable GAAP measures for net sales and operating income before and after these items. 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. In the future, the Company expects to incur charges or adjustments similar in nature to those presented herein; however, the impact to the Company's results in a given period may be highly variable and difficult to predict. 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.

The Company operates on a global basis, with the majority of its net sales generated outside the United States. Accordingly, fluctuations in foreign currency exchange rates can affect the Company's results of operations. Therefore, the Company presents certain net sales, operating results, provision for income taxes and diluted net earnings per common share information excluding the effect of foreign currency rate fluctuations to provide a framework for assessing the performance of its underlying business outside the United States. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency information by translating current-period results using prior-year period monthly average foreign currency exchange rates and adjusting for the period-over-period impact of foreign currency cash flow hedging activities.

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