Page 32 DCF and valuation parameters F Transaction multiples Analysis of worldwide M&A transactions in the luxury industry (2012–1H16) • As shown in the number of completed deals sorted by geography and accounts for almost one-third of total deals, Italy is the top target country of the luxury industry. Italy and US together represent more than an half of total deals (59% of total transactions). • Hrinate eimitq fmnds hane a grooing interest in the lmxmrq sector, recentlq approx. ,/ of total transactions. • 9fter a *()- characterired bq a large nmmber of transactions, the deal actinitq in the first semester of 2016 has slowed down. FmeZej g^ cgepleled deals FmeZej g^ cgepleled deals Zy lype g^ Zmyej FmeZej g^ cgepleled deals sgjled Zy _eg_jap`y g^ l`e laj_el gnej >Q)*Ç)@). aegn_ l`e lgp )( cgmnljies! S. Korea 80 50 50% China 2% Canada Spain 2% 2% 68 45 43 47% 45% 3% 70 41 41 Germany 62 40 40% 4% Italy 60 40% 30% 52 35 34% 35% UK 50 31 9% s 30 30% 44 l 27 a 30% e d 40 f 25 25% o . 21 o Switzerland N 20 20% 30 17% 9% 19 15 13 15% 20 10 10 9 9 10% 10 France 5 5% 10% 0 0 0% United States 2012 2013 2014 2015 1H16 2012 2013 2014 2015 1H16 29% Corporate PE PE/total Sources: Capital IQ, Mergermarket, Factiva. The luxury and cosmetics financial factbook 2016