KEY TAKEAWAYS - lb.gcs-web.com

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KEY TAKEAWAYS

Global, leading brands, led by talented, experienced teams– High emotional content– Highly attractive retail categories of intimate apparel and personal care

and beauty– Deep customer engagement

Disciplined execution; strong capabilities– Speed and agility– Disciplined financial management– Proactive management of real estate

Significant growth opportunities in North America and internationally

1. Our consolidated results have deteriorated driven by Victoria’s Secret North America and, to a lesser extent, International.

2. Bath & Body Works results remain consistent and among the best in specialty Retail.

3. We have taken significant actions– Closed Henri Bendel and sold La Senza - eliminating $74 million in annual

operating losses– Reduced the regular dividend by 1/2 with the intent to reduce debt,

freeing up $325 million per year in cash flow– Closed (and also opened) or remodeled stores where appropriate– Appointed Amy Hauk to lead PINK and hired John Mehas to run VS

Lingerie– Continued investment in Direct business– Continuing to refresh our Board of Directors

STATE OF THE BUSINESS

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STRONG BRANDS – LEAD THEIR CATEGORIES, HIGH EMOTIONAL CONTENT

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Victoria’s Secret

Approximately $4 billion in global Lingerie retail sales More than 400 million store visits per year Nearly 1 billion website visits per year

– More than 65 million Instagram followers – More than 29 million Facebook fans– More than 11 million Twitter followers

Victoria’s Secret PINK

Approximately $3 billion in global retail sales– 7.9 million Instagram followers– 14.5 million Facebook fans– Approximately 13 million PINK Nation members

Victoria’s Secret Beauty

Approximately $1.5 billion in global retail sales 6 of the top 20 fragrances in the U.S.

– Bombshell– Tease– Heavenly– Bombshell Seduction– Love– Very Sexy

0

20

40

60

80

100

VS PINK Adore Me Aerie Third Love

Social Media Followers (Millions)

Twitter Facebook Instagram

One of the largest specialty personal care and home fragrance brands in the world

– Nearly $5 billion in global retail sales– More than 350 million store visits per year– More than 300 million website visits per year– In 2018, Bath & Body Works had ~150 million transactions– 235 stores outside North America with strong customer response

#1 Brand in America for:

– Three-wick candles– Electric fragrance diffuser for the home … Wallflower– Body moisturizer (lotion & body cream)– Fine fragrance mist– Men’s body moisturizer– Hand soap– Hand sanitizer

#1 Home Fragrance Retailer in America

Bath & Body Works

STRONG BRANDS – LEAD THEIR CATEGORIES, HIGH EMOTIONAL CONTENT

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$1.95 $2.19

$2.04

$1.68 $1.44

2014 2015 2016 2017 2018

1On an adjusted basis. 2017 is based on 52 weeks.

Sales1

($Billions)Operating Income1

($Billions)

SALES & PROFIT TRENDS

$11.5 $12.2 $12.6 $12.5 $13.2

2014 2015 2016 2017 2018

% Growth 6% 6% 3% (1%) 6% % Growth 12% 12% (7%) (17%) (15%)

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*Category exits include apparel, swim and makeup

SALES GROWTH BY SEGMENT

%$USD Billions 2014 2018 Inc/(Dec)

Total L Brands $11.5 $13.2 16%

Victoria's Secret Lingerie (Go-Forward) $3.2 $3.3 4%PINK $2.1 $2.8 32%Victoria's Secret Beauty $1.0 $1.1 9%Category Exits* $0.9 $0.1 nm

Victoria's Secret $7.2 $7.4 2%

Bath & Body Works $3.3 $4.6 38%

International $0.3 $0.6 81%

Revenue

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SIGNIFICANT CASH FLOW

(1)Restated to reflect the required change in presentation related to the new accounting standard for stock-based compensation adopted in 2017.

($ in millions) 2014 2015 2016 2017 2018

Operating Cash Flow(1) $1,877 $2,027 $1,990 $1,406 $1,377

Capital Expenditures ($715) ($727) ($990) ($707) ($629)

Free Cash Flow $1,162 $1,301 $1,000 $699 $748

Regular Dividend ($399) ($587) ($683) ($686) ($666)

Retained Cash Flow $763 $714 $317 $13 $82

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SIGNIFICANT CASH RETURNED TO SHAREHOLDERS

CASH DISTRIBUTION(1) SINCE 2014Regular Dividends $3.0 Billion

Special Dividends $1.5 Billion

Share Repurchases(2) $1.6 Billion

Total $6.1 Billion

(1)Reflects cash distributions from fiscal 2014 through February 2, 2019.(2)From fiscal 2014 through February 2, 2019, 27.3 million shares were repurchased at an average price of $60.31 per share. 9

Note: Total shareholder return data is current as of 3/22/2019; LB stock price closed at $26.67

SHAREHOLDER RETURNS FOR SELECT RETAILERS

1 Foot Locker 39.7 1 Best Buy 33.7 1 Best Buy 24.9 1 TJX 25.12 TJX 31.3 2 Wal-Mart Stores 16.0 2 Home Depot 21.2 2 Foot Locker 21.4

Median of 3 Fast Retailing 28.6 Median of 3 Fast Retailing 15.9 Median of 3 TJX 12.7 Median of 3 Inditex 19.8quartile: 4 Target 17.6 quartile: 4 Home Depot 15.7 quartile: 4 American Eagle 12.7 quartile: 4 L Brands 19.623.1% 5 Wal-Mart Stores 15.4 15.8% 5 Tiffany & Co. 15.0 12.7% 5 Children's Place 12.0 19.7% 5 Fast Retailing 18.8

6 H&M 14.5 6 TJX 12.1 6 Fast Retailing 9.8 6 Tiffany & Co. 18.37 Ralph Lauren 13.9 7 Giordano 10.9 7 Target 9.3 7 Giordano 15.98 Tiffany & Co. 10.8 8 American Eagle 10.0 8 Wal-Mart Stores 8.0 8 Children's Place 15.0

Median of 9 Abercrombie & Fitch 10.7 Median of 9 Ralph Lauren 9.5 Median of 9 Foot Locker 6.6 Median of 9 Ralph Lauren 12.8quartile: 10 Home Depot 10.3 quartile: 10 Children's Place 4.0 quartile: 10 Inditex 6.2 quartile: 10 Target 12.010.5% 11 Best Buy 7.1 6.8% 11 Target 2.2 6.4% 11 Tiffany & Co. 4.7 12.4% 11 Walgreen Co. 11.2

12 Inditex 6.3 12 Gap (2.1) 12 Giordano 1.8 12 Best Buy 10.513 American Eagle 4.9 13 Inditex (2.1) 13 Walgreen Co. 1.2 13 American Eagle 9.714 Walgreen Co. (2.9) 14 Foot Locker (2.6) 14 Ralph Lauren (3.9) 14 Gap 9.5

Median of 15 Buckle (4.6) Median of 15 Abercrombie & Fitch (3.6) Median of 15 Abercrombie & Fitch (5.4) Median of 15 Wal-Mart Stores 9.4quartile: 16 Giordano (9.8) quartile: 16 Coach (4.3) quartile: 16 Coach (6.0) quartile: 16 Coach 9.2(7.2%) 17 Gap (18.6) (3.9%) 17 Walgreen Co. (7.1) (5.7%) 17 Gap (7.2) 9.3% 17 Abercrombie & Fitch 3.5

18 L Brands (25.4) 18 Buckle (10.6) 18 Buckle (10.2) 18 Buckle 2.619 Bed Bath & Beyond (33.0) 19 H&M (16.5) 19 H&M (10.2) 19 H&M 2.420 Children's Place (33.2) 20 Li & Fung (22.6) 20 L Brands (10.2) 20 Chico's 0.2

Median of 21 Coach (38.5) Median of 21 Chico's (28.1) Median of 21 Chico's (21.4) Median of 21 Bed Bath & Beyond (4.9)quartile: 22 Esprit Holdings (39.7) quartile: 22 L Brands (28.6) quartile: 22 Li & Fung (26.0) quartile: 22 Li & Fung (10.6)(39.7%) 23 Ascena Retail Group (45.7) (28.6%) 23 Bed Bath & Beyond (33.5) (26.0%) 23 Bed Bath & Beyond (26.2) (10.6%) 23 Ascena Retail Group (15.8)

24 Chico's (48.7) 24 Esprit Holdings (36.8) 24 Esprit Holdings (32.8) 24 Home Depot (26.3)25 Li & Fung (58.5) 25 Ascena Retail Group (53.5) 25 Ascena Retail Group (43.1) 25 Esprit Holdings (26.5)

3-year Total Return 5-year Total Return 10-year Total Return1-year Total Return

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KEY TAKEAWAYS

Global, leading brands, led by talented, experienced teams– High emotional content– Highly attractive retail categories of intimate apparel and personal

care and beauty– Deep customer engagement



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86% 2018 fourth quarter open to buy at beginning of Fall season

DISCIPLINED EXECUTION: SPEED AND AGILITY

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Examples:

Victoria’s Secret / PINK Panties 14 Days

Fragrant Body Care (lotion, shower gel and fine fragrance mist) 21 Days

ORDER MANUFACTURESHIP TO

DISTRIBUTION CENTER

SHIP TO STORE

DISCIPLINED EXECUTION: SPEED AND AGILITY

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BALANCED, PROACTIVE CAPITAL STRUCTURE MANAGEMENT

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($ in millions)

HEALTHY MATURITY PROFILE

MATURITY PROFILE PROVIDES FLEXIBILITY

$1,000

$338

$780

$956

$500

$297

$500

$350

$1,000

$700

$300

$0

$200

$400

$600

$800

$1,000

$1,200

7.00% 6.625% 5.625% 5.625% 5.25% 6.95% 6.875% 6.75% 7.60%6.694%

Bonds Revolver

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1. Performance based investment – we can and do adjust spending levels based on performance

2. High sales per foot productivity

3. Strong financial profile– Project IRR’s of ~20%– 99% of stores are cash flow positive

4. Diverse real estate portfolio across venue tiers and types

5. Minimal exposure to vulnerable venues due to strong lease termination rights which provide flexibility

6. Actively managing the store fleet

DISCIPLINED EXECUTION: REAL ESTATE

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High profitability across all mall types in North America

33% of stores are not in malls

Leases provide significant protection based on occupancy and co-tenancy provisions

25% in C malls with above fleet average profit rates and remaining average lease term of less than 3 years

Minimal exposure in vulnerable venues due to strong lease termination rights which provide flexibility


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15% Growth

Note: U.S. stores sales per Selling Square Foot. 2017 is based on 52 weeks.

Victoria’s Secret Bath & Body Works


INDUSTRY-LEADING SALES PRODUCTIVITY

$836 $864 $844 $774 $757

2014 2015 2016 2017 2018

$774 $815 $831 $835

$891

2014 2015 2016 2017 2018

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Store Closures

Store Openings


Over the last 10 years:

Opened 822 stores primarily in top tier and off-mall venues Closed 675 stores primarily in lower tier venues and sold 130 stores in the La Senza fleet

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CONSISTENT COMP PERFORMANCE BETWEEN TOP AND BOTTOM MALL TIERS

‐20%

‐15%

‐10%

‐5%

0%

5%

10%

15%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Bath & Body Works U.S. Stores

A

C

2017 2018

‐20%

‐15%

‐10%

‐5%

0%

5%

10%

15%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Victoria's Secret U.S. Stores

A

C

2017 2018

Victoria’s Secret / PINK and Bath & Body Works real estate investments in the U.S. generate a profit rate of 18% and projected internal rates of return of 24%

Financial Returns1

Victoria’s Secret

Bath & Body Works

L Brands U.S.

Number of Stores 667 740 1,407Projected Internal Rate of Return 18% 35% 24%Profit Rate 2 11% 30% 18%

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1 Includes store investments since 20122 Calculated as Four-Wall Profit / Sales

Aver

age d

ollar

turn

DISCIPLINED EXECUTION: INVENTORY MANAGEMENT

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3.94.1 4.2 4.3 4.4

2014 2015 2016 2017 2018

Note: 2017 is based on 52 weeks.

KEY TAKEAWAYS

Global, leading brands, led by talented, experienced teams– High emotional content– Highly attractive retail categories of intimate apparel and personal care and beauty– Deep customer engagement



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GROWTH FRAMEWORK

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Low-SingleDigits

Relatively Flat

Mid-Teens Low-Twenties

Direct Sales International North America

Square FootageNorth AmericaComp Stores

5 – 10% TOTAL SALES GROWTH

COMP STORE SALES GROWTH

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North AmericaComp Stores

Strong brands which lead their categories – high emotional content and close connections with customers

Frequent launches of compelling new merchandise –leveraging speed

Engaging store designs in best locations

Speed, agility and disciplined management of inventory

Passionate and capable sales force

Low-SingleDigits

ENGAGING STORE DESIGNS – DRIVE TRAFFIC AND CREATE EMOTIONAL EXPERIENCES

27Dolphin Mall – Miami, FL

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Southcenter – Seattle, WA

Easton Town Center – Columbus, OH 29


PASSIONATE AND CAPABLE SALES FORCE

Selective recruitment and hiring

Attractive pay and benefits

Training and culture

Stable, performance-oriented teams

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Low-SingleDigits

Relatively Flat

Mid-Teens Low-Twenties




GROWTH FRAMEWORK

North America SSF Growth (CAGR)

2013 - 2017 2018 2019F

Victoria’s Secret / PINK

Gross 5% 1% 0%

Net of closures 4% (1%) (3%)

Bath & Body Works

Gross 3% 5% 4%

Net of closures 2% 4% 3%

L Brands

Gross 4% 2% 2%

Net of closures 3% (3%) (1%)

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GROWTH FRAMEWORK

PERFORMANCE-BASED

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Performance BasedPerformance-Based* 2018 ROIC of 13.8% uses the new lower tax rate of 26%. If we used previous years tax rate of 39%, the 2018 ROIC would be 11.2%.

GROWTH FRAMEWORK

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Low-SingleDigits

Relatively Flat

Mid-Teens Low- Twenties




GROWTH FRAMEWORK

DIRECT CHANNEL GROWTH

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A Very Significant, Profitable Business

$2.5 billion in volume at a 20+% operating income rate

Organizational changes at Victoria’s Secret to integrate stores and direct channels –brand/customer focus

Increasing investments (talent and dollars) to accelerate growth in North America and globally

DIRECT CHANNEL GROWTH

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$2.5 Billion; 20+% Operating Income Rate

% Sales Growth

Sales

($US

D) in

Milli

ons

Penetration

12017 is based on 52 weeks.

1

18% 29% 13% 18% 21%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

$500

$1,000

$1,500

$2,000

$2,500

2014 2015 2016 2017 2018

Digital Sales (Go‐Forward) and Penetration 2014 ‐ 2018

Digital Sales Digital Penetration

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Low-SingleDigits

Relatively Flat

Mid-Teens Low- Twenties

Direct Sales International North AmericaSquare Footage

North AmericaComp Stores


GROWTH FRAMEWORK

SIGNIFICANT INTERNATIONAL GROWTH

2014 2018 2014 – 2018CAGR

Total VS & BBW International Segment ($ US millions)

Store Count 394 753 18%

Retail Sales¹ $790 $1,507 18%

L Brands Recognized Revenue $336 $605 16%

Operating Income² $78 ($7) NM

1Represents total retail sales from company-owned and partner-owned stores; partner-owned sales may be unaudited and/or non-GAAP.²Operating Income results are non-GAAP. 38

SIGNIFICANT GROWTH OPPORTUNITY OUTSIDE NORTH AMERICA

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40

NEW MARKETENTRY

NEW MARKET ENTRY

GLASGOW, SCOTLAND

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NEW MARKET ENTRY

BANGKOK, THAILAND

42

NEW MARKET ENTRY

JAKARTA, INDONESIA

NEW MARKET ENTRY

KUALA LUMPUR,MALAYSIA

44

NEW MARKET ENTRY

SAN JOSÉ, COSTA RICA

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NEW MARKET ENTRY

MELBOURNE, AUSTRALIA

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NEW MARKET ENTRY

ROME,ITALY

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NEW MARKET ENTRY

HONGKONG

WHAT HAVE WE LEARNED IN CHINA?• Fully integrated digital and physical retail strategy• Best sellers largely similar to USA and …• Huge opportunity in local distortions (e.g. sizing,

Chinese New Year, Singles Day)

WHAT ARE WE DOING NEXT IN CHINA?• Continued focus on the fundamentals• Focus on smaller store formats to unlock scale• Pilot Bath & Body Works

WHAT HAVE WE LEARNED IN CHINA?• Fully integrated digital and physical retail strategy• Best sellers largely similar to USA and …• Huge opportunity in local distortions (e.g. sizing,

Chinese New Year, Singles Day)

WHAT ARE WE DOING NEXT IN CHINA?• Continued focus on the fundamentals• Focus on smaller store formats to unlock scale• Pilot Bath & Body Works

HONG KONG

2019 STORE GROWTH

L BRANDS, INC. INTERNATIONAL STORE COUNT

2019 FORECAST

2018Year End

2019New Stores

2019Closures

2019 FcstYear End

Wholly Owned Stores

Victoria's Secret Full Assortment - U.K. 20 0 0 20

PINK - U.K. 5 0 0 5

Victoria's Secret Full Assortment - Ireland 1 0 0 1

Victoria's Secret Full Assortment - Greater China 15 3 to 5 0 18 to 20

Victoria's Secret Beauty & Accessories - Greater China 38 12 to 15 5 to 6 44 to 48

Wholly Owned Total 79 15 to 20 5 to 6 88 to 94

Partner Owned Stores

Victoria's Secret Full Assortment 47 18 to 20 0 65 to 67

PINK 9 1 to 2 0 10 to 11

Victoria's Secret Beauty & Accessories - Local Market 219 5 to 7 18 to 20 204 to 208

Bath & Body Works - Local Market 223 44 to 48 4 to 5 262 to 267

Victoria's Secret Beauty & Accessories - Travel Retail 164 15 to 18 18 to 20 159 to 164

Bath & Body Works - Travel Retail 12 4 to 5 0 to 1 15 to 17

Partner Owned Total 674 87 to 100 40 to 46 715 to 734

Total VS & BBW International 753 102 to 120 45 to 52 803 to 82849

KEY TAKEAWAYS

Global, leading brands, led by talented, experienced teams– High emotional content– Highly attractive retail categories of intimate apparel and personal care and beauty– Deep customer engagement



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APPENDIX

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

This presentation contains certain unaudited “Adjusted” financial information which represents non-GAAPfinancial measures. The adjusted financial information should not be construed as an alternative to the reportedresults determined in accordance with generally accepted accounting principles. Further, the Company’sdefinition of adjusted income information may differ from similarly titled measures used by other companies.While it is not possible to predict future results, management believes the adjusted information is useful for theassessment of the ongoing operations of the Company. The adjusted financial information should be read inconjunction with the Company’s historical financial statements and notes thereto contained in the Company’squarterly reports on Form 10-Q and annual report on Form 10-K. The following pages contain reconciliations ofcertain reported results to the adjusted results used in this presentation.

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APPENDIX

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Reported Adjustments Adjusted

Net Sales 13,237$ -$ 13,237$

Gross Profit 4,899 95 4,993

General, Administrative and Store Operating Expenses 3,563 (7) 3,556

Operating Income 1,237 200 1,437

Earnings Per Share 2.31 0.51 2.82

The Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures reflect the following:

The "Adjustments" column includes the following:

˙

·

·


2018(in millions except per share amounts)

A $99.2 million ($55.1 million net of tax of $44.1 million) loss on the sale of La Senza to an affiliate of Regent LP.

An $80.9 million charge ($72.7 million net of tax of $8.2 million), included in buying and occupancy expenses, related to the impairment of certain Victoria’s Secret store assets.

$20.3 million ($15.0 million net of tax of $5.3 million) of Henri Bendel closure costs, included in buying and occupancy expenses ($13.8 million) and general, administrative and store operating expenses ($6.5 million).

APPENDIX

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Net Sales 12,632$ -$ 12,632$

Gross Profit 4,959 - 4,959

General, Administrative and Store Operating Expenses 3,231 - 3,231

Operating Income 1,728 - 1,728

Earnings Per Share 3.42 0.22 3.20



˙·



A $45.0 million pre-tax loss ($28.8 million net of tax of $16.2 million), included in other income (loss), associated with the early extinguishment of our June 2019 notes.A $92.2 million tax benefit related to changes in U.S. tax legislation.

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APPENDIX


Net Sales 12,574$ -$ 12,574$

Gross Profit 5,125 11 5,136

General, Administrative and Store Operating Expenses 3,122 (24) 3,099

Operating Income 2,003 35 2,037

Earnings Per Share 3.98 (0.23) 3.74



˙

·

·

·

A $41.7 million tax benefit related to the favorable tax settlement of a discrete tax matter.

A $35.8 million pre-tax loss ($22.4 million net of tax of $13.4 million), included in other income, associated with the early extinguishment of our July 2017 notes.



Pre-tax charges of $34.5 million ($21.4 million net of tax of $13.1 million) related to actions at Victoria’s Secret, including severance charges, fabric cancellations and the write-off of catalogue paper.A $108.3 million pre-tax gain ($70.2 million net of tax of $38.1 million), included in other income, related to a $124.4 million cash distribution from Easton Town Center.

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APPENDIX


Net Sales 12,154$ -$ 12,154$

Gross Profit 5,204 - 5,204

General, Administrative and Store Operating Expenses 3,012 - 3,012

Operating Income 2,192 - 2,192

Earnings Per Share 4.22 (0.23) 3.99



˙



A $78.1 million pre-tax gain ($69 million net of tax) included in other income related to the sale of our remaining interest in the third-party apparel sourcing business.

KEY TAKEAWAYS - lb.gcs-web.com

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