DCF and valuation parameters Page 25 E Trading multiples Improvement of multiples level for the cosmetics companies illustrates the growing dynamism of the industry • Trading multiples of the cosmetics companies are globally in line with those of the luxury industry, even with slightly higher figures for EBITDA multiples, illustrating analysts’ expectations for margins to improve in the next years. s er aluationt ame ar p DCF and v EV/sales (FY14A/E-16E) EV/EBITDA (FY14A/E-16E) Price to earnings (FY14A/E-16E) 3.5x 18.0x 35.0x 15.6x 16.0x 3.0x 2.8x 14.4x 14.8x 30.0x 27.7x 28.5x 28.9x 28.3x 15.0x 2.6x 2.5x 2.6x 13.0x 13.3x 2.5x 2.3x 2.3x 25.0x 24.4x 23.9x 12.0x 2.0x 20.0x 9.0x 1.5x 15.0x 6.0x 1.0x 10.0x 0.5x 3.0x 5.0x 0 0 0 2014A/E 2015E 2016E 2014A/E 2015E 2016E 2014A/E 2015E 2016E Average Median Average Median Average Median Source: Data based on consensus of several brokers reports for each company Notes: • The trading multiples are based on: • Fixed EV computed as market capitalization as of 31 March 2015 (one-month average) and latest-available net financial debt • Projections estimated by analysts for successive years The luxury and cosmetics financial factbook 2015