PPage 66age 66 DCF and valuation pIndustry oaramevervieterws I Points of view from EY global sector Chinese appetite for luxury goods and brands reshapes the luxury and other industry professionals landscape Strategic investors from these regions, therefore, Wave 1 increasingly look at Swiss watch brands in the Breguet (CHF120m) affordable lmxmrq segment as potential acimisition Swatch Glashütte Original targets. The most prominent representative of this Union Glashütte development is Citychamp Watch & Jewellery Group A. Lange & Söhne Jaeger-LeCoultre (formerly known as China Haidian), which started to IWC Richemont (CHF3.1b)* build up a portfolio of Swiss watch brands by acimiring Eterna, r†d†riime ;onstant, Kering Girard-Perregaux Ulysse Nardin complementing its existing portfolio of the Swiss JEANRICHARD** component manufacturers La Joux-Perret and Prototec as well as the Swiss watch brand Arnold & Wave 3 Dreyfuss & Co. Son. Eterna Corum Rotary Looking ahead, acimisitions of one of the fomr Citychamp (CHF26m) (CHF81m) (CHF45m)*** European luxury groups seems unlikely due to the Arnold & Son Frédérique fact that each has already built up a comprehensive (CHF64m)**** Constant portfolio of brands and the sheer size and indicative Citizen valuation of the remaining independent heritage 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 brands. The continuation of the third wave of consolidation is more likely, where we will see the " Lg_el`ej Des Eanm^aclmjes @gjlg_‡jes K9 ^jge Eanneseann 9? plms jeeainin_ ,( slace g^ Bae_ejDe;gmllje ** Together Sowind Group entry of additional Asian buyers that aim to leverage *** Together Dreyfuss Group their distribution power in Asia with the ownership **** Purchase price for Prothor Holding, which includes the watch brand Arnold & Son as well as component manufacturers La Joux-Perret and Prototec and sale of affordable luxury watches made in Switzerland. Sources: EY research, Mergermarket. The luxury and cosmetics financial factbook 2016