Page 30 DCF and valuation parameters F Transaction multiples The M&A deals in the cosmetics industry show a similar trend as the luxury industry • The average sales multiple over the last five years ranged between 1.1x and 1.9x, when the EBITDA multiple ranged between 10.0x and 16.6x. • 1Q15 multiples went back to previous 2014 levels. 2014 multiples illustrated an exceptionally positive trend, mainly driven by strategic acquisitions carried out by the major players to foster growth in emerging markets, and broaden the products’ offering into innovative segments. EV/sales (FY11-1Q15) EV/EBITDA (FY11-1Q15) 18.0x 16.6x 2.0x 1.9x 16.0x 14.9x 1.8x 1.6x 1.6x1.7x 1.6x 1.6x 14.0x 1.4x1.5x 11.7x 11.1x 1.4x 12.0x 10.1x 11.1x 10.1x 10.2x 1.2x 1.1x 1.0x 10.0x 10.0x 8.8x 1.0x 0.9x 8.0x 0.8x 6.0x 0.6x 0.4x 4.0x 0.2x 2.0x 0.0x 0.0x 2011 2012 2013 2014 1Q15 2011 2012 2013 2014 1Q15 Average Median Average Median Source: Capital IQ The luxury and cosmetics financial factbook 2015