Ha_e )* DCF and valuation parameters Hermès 35.5% B Operating aggregates Sales growth expectations for cosmetics players are lower than Moncler 33.6% for the luxury segment but the gap is narrowing Michael Kors 29.0% Richemont 26.7% Tiffany 25.1% Prada 24.7% D’Gccitane and Fatmra significantlq L’Occitane and Natura are expected to post strong growth in the next few years, driven by e-commerce sales Coach 24.0% outperformed the cosmetics sample and emerging brand expansion for D’Gccitane, and channel dinersification and international grooth for Salvatore Ferragamo 23.5% expectations. Natura. The cosmetics market is likely to be driven by: LVMH 23.2% • Penetration by existing players with innovative products into new markets Swatch 23.1% • Increase of consumer purchasing power Luxottica 22.9% Tod's 21.3% • Rise of millennial consumers Hugo Boss 21.1% Sales CAGR, Notes: Average 21.0% Burberry Sales 20.9% CAGR >Q)-9'=Ç>Q)0= È cgseelics cgepanies • *()- figmres are estimated (in €m) FY14A FY15A/E FY16E FY17E FY18E (FY15A/E–FY18E) Tumi 20.5% (“E“) or actual (“A“), depending L'Occitane 9.7% on their availability as of the Kering L'Oréal 19.1% 22,532 25,257 *-$/0. */$(,/ *0$.(/ ,&* Natura 9.3% date of this study. Estée Lauder 1$.+) 1$,.. 1$0.- )($,.( ))$))1 -&- Brunello Cucinelli 17.3% Shiseido 6.4% • Figures are converted into :eiejsdgj^ .$*0- .$.0. .$0-+ /$).. 7,523 ,&( Ralph Lauren 17.1% euros, using exchange rates Shiseido .$(/, .$*,( .$011 /$))1 /$-*) .&, Average 5.9% as of 31 March 2016 (Source: Jimmy Choo 16.8% Estée Lauder 5.5% Capital IQ). Chow Tai Fook Coty 10.9% +$11/ +$0-1 3,762 +$0)/ ,$(1/ *&( L'Oréal 4.2% Natura )$0++ )$1-, *$)*. 2,337 *$-,1 1&+ Kafilg 9.8% L'Occitane )$)/0 )$+(0 )$,)) )$-+, )$/*/ 1&/ Beiersdorf 4.0% YOOX Net-A-Porter 9.5% Average 5.9% Coty 2.0% Hengdeli 7.5% Median 5.5% Maximum 9.7% Minimum 2.0% Source: Data based on consensus of several brokers reports for each company Estimated data have not been derived from internal insights. The luxury and cosmetics financial factbook 2016