Ha_e 0 DCF and valuation parameters A Financial parameters Luxury companies reflect moderate but steady growth, with a limited risk profile • O9;;" ranges from / Kafilo! to )( ;oach!, depending on the companq’s risc profile perception oith an overall limited variance. • LTGR presents a larger range (1% to 4.3%) mainly depending on size, maturity stage of the retail network and prodmct dinersification. Lhe estimated anerage DL?J is slightlq looer onerall than last qear’s figmre, reÖecting a prenailing consernatine nieo among financial marcets operators abomt fmtmre grooth. O9;; and DL?J Zy cgepany Companies are sorted in decreasing order based on the Luxury Market capitalization WACC Gearing Beta LTGR market capitalization in euros companies (in €m) observed as of 31 March 2016 LVMH //$(0) 0&( -&1 (&1/ *&0 10.5% (one-month average). Coach Michael Kors, Tumi and Hengdeli Richemont ++$,.( 0&+ ),&+! )&** *&, 10.0% are not represented in the graphic Hermès ++$+*) 0&* ,&-! (&// +&* 9.5% Chow Tai Fook at left because LTGR data for them Luxottica *+$01( /&+ ,&+ (&1, *&. Hugo Tiffany was not available. Kering *($+,) 0&) )0&/ (&1- *&- 9.0% Boss Ralph Lauren Prada Burberry Brunello Swatch )/$)0- 0&. 1&)! )&). *&- C Swatch Tod's Cucinelli C8.5% WA Salvatore Richemont Coach 1$//, )(&( ,&+! (&0. *&- Ferragamo Moncler YOOX Net-A-Porter 8.0% Hermès Michael Kors 1$)/1 1&/ /&+! (&// n/a Jimmy Choo Kering LVMH Li^^any 0$)*0 1&( .&( )&(+ *&- 7.5% Luxottica Prada 7,675 0&0 )&1 (&.0 *&- Kafilg 7.0% :mjZejjy /$..0 0&0 0&*! )&)* *&/ 6.5% Ralph Lauren /$+)( 0&. 0&(! )&)( )&( 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% ;`go Lai >ggc 5,657 1&+ 0&0 (&/( +&( LTGR Hugo Boss +$0,* 0&. +&, (&0+ *&. Fote2 bmbble sire reÖects marcet capitaliration.