DCF and valuation parameters Ha_e )+ B Operating aggregates The luxury sample EBITDA margin indicates margin pressure in the near term EBITDA remains largely below 30%, with few The slightly lower EBITDA margin presented this year is mainly due to: • Earcet nolatilitq drinen bq cmrrencq soings and Ömctmating tomrist Öoos notable exceptions s • Lower growth experienced in some of the key markets, such as mainland China and Hong Kong er aluationt ame ar p DCF and v Average EBITDA margin, *Kering margin for FY14A–FY16E EBITDA Average ratio >Q).=Ç>Q)0= È lmpmjy cgepanies excludes numbers for Redcats, margin FY14A FY15A/E FY16E FY17E FY18E (FY16E–FY18E) Sergio Rossi and Groupe Fnac. Hermès 35.5% Notes: LVMH *+&( *+&( *+&( *+&+ *+&, *+&* Moncler 33.6% • Figures for YOOX Net–A– Kering* )1&0 )/&/ )0&- )1&( )1&/ )1&) Michael Kors 29.0% Porter for FY14 and FY15 Richemont +(&- *.&) *.&. *.&- */&( *.&/ Richemont 26.7% are presented on a pro–forma Luxottica *(&) *)&( **&) **&- *,&( **&1 Tiffany 25.1% basis, i.e., assuming the merger Swatch *)&. *(&/ *+&( *+&, *+&( *+&) was effective at the start of ;`go Lai >ggc ))&- 1&1 )(&- ))&( ))&) )(&1 Prada 24.7% FY14. Ralph Lauren )/&/ )-&- ).&* )/&+ )/&/ )/&) Coach 24.0% • The 2015 EBITDA margin Hermès +-&) +-&, +-&. +-&/ +-&* +-&- Salvatore Ferragamo 23.5% is computed on the basis of Michael Kors +)&1 *1&. *0&, *1&. *1&( *1&( LVMH 23.2% either actual (“A“) or estimated ÉEÉ! figmres for *()- sales, Coach */&* )1&+ **&( *+&- *.&/ *,&( Swatch 23.1% depending on their availability. Li^^any *-&- *+&- *,&/ *-&) *-&, *-&) Luxottica 22.9% As some groups are listed Prada *.&1 **&. *,&. *-&* *,&+ *,&/ Tod's 21.3% under different jurisdictions :mjZejjy **&1 *)&/ *(&1 *)&) *(&1 *(&1 around the world, they may use Hugo Boss *+&( *)&* *)&( *)&* *)&* *)&) Hugo Boss 21.1% different GAAP, and therefore Average 21.0% a direct comparison of EBITDA Hengdeli /&* -&/ /&) /&- /&1 /&- Burberry 20.9% may be less meaningful than YOOX Net–A–Porter .&/ /&. 0&+ 1&+ )(&0 1&- Tumi if their results were presented Salvatore Ferragamo **&* **&1 *+&, *+&/ *+&- *+&- 20.5% under the International Kafilg 1&1 /&0 1&1 0&- ))&( 1&0 L'Occitane9.7% Kering 19.1% Accounting Standards. Natura9.3% Brunello Cucinelli 17.3% Tod's *(&( )1&- *(&0 *)&- *)&- *)&+ Shiseido6.4% Ralph Lauren Moncler ++&- +,&) ++&0 ++&0 ++&, ++&. 17.1% Tumi *)&* *)&. *(&1 *(&) *(&. *(&- Average5.9% Jimmy Choo 16.8% Brunello Cucinelli )/&/ ).&/ )/&) )/&+ )/&, )/&+ Estée Lauder5.5% Chow Tai Fook 10.9% Bieey ;`gg ).&0 ).&( ).&1 )/&/ )-&1 ).&0 L'Oréal4.2% Kafilg 9.8% Average 21.4% 20.0% 20.7% 21.0% 21.3% 21.0% Beiersdorf4.0% YOOX Net-A-Porter 9.5% Median 21.6% 21.0% 21.0% 21.5% 21.5% 21.3% Coty2.0% Hengdeli 7.5% Maximum 35.1% 35.4% 35.6% 35.7% 35.2% 35.5% Source: Data based on consensus of several brokers reports for each company. Minimum 6.7% 5.7% 7.1% 7.5% 7.9% 7.5% Estimated data have not been derived from internal insights. The luxury and cosmetics financial factbook 2016