Page 64 Methodology Approach and SOTP analyses Approach There are many criteria to analyze the operating and financial performances of listed companies. The aim of this survey is not to conduct a detailed analysis of the selected companies. The approach implemented in this fifth edition of the luxury and cosmetics financial factbook essentially relies on three types of information: • Several standard valuation parameters and operating aggregates • Industry characteristics (in terms of growth forecasts and drivers) • An overview of 29 major actors of the industry Even though this data is important and essential to the analysis, it must be stressed that other criteria or parameters could also have been analyzed. The entirety of the data utilized in this factbook is publicly disclosed information. The TAS teams of EY who participated SOTP analyses in drafting this document have not had access to any confidential information. For the companies that have diversified activities (LVMH, If the information used turns out to be incomplete or Kering, L’Oréal), we performed a sum-of-the-parts analysis to incorrect, EY will not be held responsible for any impact this isolate the pure luxury segment and to better understand its may have on the results or the analyses presented in this characteristics as well as its contribution to the company’s document. performance. It must be noted that the information provided in this study is This analysis was not possible for Swatch, Beiersdorf and based on the latest available financial statements of each Shiseido as no accurate data was available. company as at 31 March 2015. Market data has been considered as of 31 March 2015, unless stated otherwise or apart from subsequent pieces of information included in this survey. Any modification of the analyzed group’s financial performances or any evolution of the financial markets that occurred since 31 March 2015 could lead to partially or completely different conclusions. Please note that we have presented the actual 2014 figures for the companies, that have already released their 2014 annual results as of 31 March 2015. The luxury and cosmetics financial factbook 2015