DCF and valuation parameters Ha_e )1 C Advertising expenses Advertising remains a key driver in the industry, with digital expenses’ share growing fast • Earceting and adnertising represent a significant cost component for both global lmxmrq and cosmetics industries. • Q)-9'= 40% Average 26.8% 35% 33.6% 30% 29.1% 25.7% 26.4% 25% 22.9% 22.9% 20% Average 6.7% 15% 11.3% 11.3% 10% 6.6% 6.7% 6.8% 7.4% 3.4% 3.8% 5.1% 5.4% 5.6% 5% 0% Tumi Coach Prada Tiffany LVMH Kafilg Coty Natura Salvatore BrunelloCucinelliMonclerLuxottica Shiseido L'Oréal Ferragamo Hugo Boss Beiersdorf Estée Lauder Luxury companies Cosmetics companies Source: Data based on actual or estimated numbers based on availability as of the date of this report. Fote2 Lhe resmlts of *()- are actmal É9Ê! if the financial resmlts are closed and expected ÉEÊ! if the financial qear is not closed qet. The luxury and cosmetics financial factbook 2016