FINANCIAL HIGHLIGHTS Percent YEAR ENDED JUNE 30 2003 2002 Change (Dollars in millions, except per share data) Net Sales* $5,117.6 $4,743.7 8% Operating Income* 495.1 341.4 45% Net Earnings (before preferred dividends)* 319.8 191.9 67% Net Earnings Per Share — Diluted* 1.26 0.70 80% AT JUNE 30 Total Assets $3,349.9 $3,416.5 (2%) Stockholder’s Equity 1,423.6 1,461.9 (3%) *Fiscal 2003 information includes the effect of a special charge of $22.0 million ($13.5 million after-tax), or $.06 per diluted common share, related to the proposed settlement of a legal action. Fiscal 2002 information includes the effect of restructuring charges of $117.4 million ($76.9 million after-tax), or $.32 per common share, and is after the cumulative effect of adopting a new accounting principle in the amount of $20.6 million, or $.08 per common share. Fiscal 2001 information is reported after considering the effect of restructuring and special charges of $63.0 million ($40.3 million  after-tax), or $.17 per common share, and after the cumulative effect of adopting a new accounting principle in the amount of $2.2 million after-tax, or $.01 per common share. For a more detailed description of our operating results, including the impact of these items refer to “Management’s Discussion and Analysis of Financial Condition — Results of Operations.” †Before preferred dividends. 36 THEEST{E LAUDER COMPANIES INC. A HERITAGE OF UNINTERRUPTED SALES GROWTH 1953 1972 1985 1991 2003 $100 million $1 billion $2 billion $5.1 billion NET SALES* (Dollars in billions) 4.04 4.44 4.67 4.74 5.12 1999 2000 2001 2002 2003 OPERATING INCOME* (Dollars in millions) 456.9 515.8 495.6 341.4 495.1 1999 2000 2001 2002 2003 NET EARNINGS* † (Dollars in millions) 272.9 314.1 305.2 191.9 319.8 1999 2000 2001 2002 2003