Regulation G Reconciliations

March 28, 2003 Strategic Update Meeting

The following table and annual schedules for 1998 - 2002 reconcile non-GAAP financial measures used in presentations with the corresponding GAAP measures.

Presenter

Slide Number

Slide Title

Non-GAAP Measure

GAAP Measure

Andrea Jung (Open)	13	Business Transformation is Driving Profits	2002/1998 Op Profit from sales growth - $117 CAGR -- 4% 2002/1998 Op Profit from margin improvement - $161 CAGR -- 6% 1998 Op Profit - $628 2002 Op Profit - $906 CAGR -- 10%	2002/1998 Op Profit from sales growth - $88 CAGR -- 4% 2002/1998 Op Profit from margin improvement - $309 CAGR -- 13% 1998 Op Profit - $473 2002 Op Profit -$870 CAGR -- 17%
	14	Our Performance has Steadily Improved	2002 Op Margin - 15%	2002 Op Margin - 14%
	18	Robust Financial Results	Op Margin '00 to '02 increase - 60 BP	Op Margin '00 to '02 increase - 20 BP
Andrea Jung (Close)	5	Accelerating the Momentum	Op Margin improvement 2002-2004 from 2001 base: 250 BP Annual EPS growth of 10%+	Op Margin improvement 2002-2004 from 2001 base: 370 BP Annual EPS growth 02 vs 01 : +20% 03 vs 02: +15% 04 vs 03: +10%+

Susan Kropf	4	Business Transformation Overview	Op Margin improvement 2002-2004 from 2001 base: 250 BP	Op Margin improvement 2002-2004 from 2001 base: 370 BP
	42/43	Operating Margin Expansion Accelerates	2001 Op Margin - 14.1%	2001 Op Margin - 12.9%