DCF and valuation parameters Page 23 D SOTP and segment analyses L’Oréal segment analysis • The L’Oréal Luxe division accounted for 29% of the total sales in FY15A. • This division is expected to register a sales growth at a CAGR of 4.4% over the 2015A–18E period, when its operating income is anticipated to grow from €1.5m to €1.8m (or at a CAGR of 4.2%) over the same period. s er aluationt • The L’Oréal Luxe division will remain one of the biggest divisions within L’Oréal, together with consumer ame ar products. p DCF and v Kales Zjeacdgon >Q),9Ç>Q)0= in ÒZ! =:AL Zjeacdgon >Q),9Ç>Q)0= in ÒZ! =:AL eaj_in >Q),9Ç>Q)0= in ! 30 27.0 27.2 5 4.9 4.9 22% 25.8 4.6 1% 21% 21% 21% 25.3 4% 4% 4.4 2% 20% 25 4% 2% 10% 11% 22.5 4% 8% 1% 19% 19% 7% 8% CAGR 3.9 10% CAGR 18% 18% 18% 4% 7% 4 2% 9% 20 4.4% 4.2% 7% 29% 30% 10% 35% 36% 29% 29% 34% 35% 3 33% 15 28% CAGR CAGR 0.9% 2.2% 2 10 46% 45% 53% 53% 48% 47% 46% 54% 54% 56% 5 1 13% 13% 13% 13% 13% 16% 15% 15% 15% 15% 0 0 (16%) (15%) (15%) (15%) (15%) 2014A 2015A 2016E 2017E 2018E 2014A 2015A 2016E 2017E 2018E 2014A 2015A 2016E 2017E 2018E L'Oreal Luxe Total cosmetics Professional products Consumer products Professional products Consumer products L'Oreal Luxe Active cosmetics L'Oreal Luxe Active cosmetics Body shop Eliminations Body shop Sources: Liberum (15 February 2016) and Kepler Cheuvreux (12 February 2016). 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