Estee Lauder 2009 Annual Report Download - page 8

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Operationally, we achieved solid progress in a number of key areas, leading to greater effi ciencies and
integration. We fi nished the year with major improvements in inventory days and sharply cut the number of
stock keeping units (SKUs) that we carry. We focused on better aligning our supply chain with the brands and
regions, which should enable us to achieve greater cost and time effi ciencies. We modernized our processes
and technologies in some demand planning and fi nancial functions and at our U.K. manufacturing operations.
While we adjusted our plans to deal with the unexpected economic downturn, Fabrizio Freda and I, along
with our senior leadership team, were also busy developing the Company’s four-year strategy that sets out
new goals. I am proud of how our employees came together in support of the new strategy and pleased
that, overall, investors responded favorably.
Companies that succeed in tough times like these, and emerge even stronger, share common traits. They
are diversifi ed in their geographic scope, distribution channels and product offerings and have a strong
fi nancial foundation and clear path for future growth. We possess all these attributes, and many more,
including decades of brand-building and commercial expertise, a portfolio of world-class brands and a long
history of
superior creativity, innovation and High-Touch personal service.
I am also pleased to note that we advanced our long-standing commitment to being a responsible
corporate citizen. We have included a special section in this report that highlights some of our activities
in philanthropy, social responsibility and environmental awareness. Being actively engaged in the
com munities where we live and work is a deep-rooted responsibility that is part of our core values and
business practices.
I look forward to continuing to collaborate with Fabrizio, who succeeded me as Chief Executive Offi cer on
July 1, 2009. Together, we will lead the efforts to achieve our objectives for the Company and
its stockholders.
My father, Leonard Lauder, transitioned to his new role as Chairman Emeritus. I would like to express my
gratitude to him on behalf of the whole Company for his vision, business skills, passion and tireless energy.
Although he will be less active on a day-to-day basis, we look forward to his continued contributions as a
member of the Board and his ongoing role as a valued teacher and advisor.
In addition to thanking our employees for their dedication to the Company, I want to extend my appreciation
and gratitude to our consumers for their loyalty, our customers who are invested in our brands,
our
Board for its advice and direction, and our stockholders for their ongoing support of The Estée Lauder
Companies. We continuously strive to increase stockholder value and make you proud to be a part of this
remarkable Company.
Sincerely,
William P. Lauder
Executive Chairman
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