DCF and valuation parameters Page 31 F Transaction multiples Analysis of worldwide M&A transactions in the luxury industry since 2011 • The number of completed deals on global scale is still significant, despite the financial crisis. The M&A activity from both strategic and financial investors in the industry experienced a strong first quarter in 2015 with 18 completed deals. • PE activity was intense and stable during the past years, showing an always-stronger interest for the industry, confirmed through the creation of dedicated funds. s er aluationt • As presented in the graph about the top 10 markets by the number of completed deals over the FY11-1Q15 period, Italy turns out to be the first country as a target ame ar nationality, proving the attractiveness of Italian companies for investors (investors’ interest for ‘‘made in Italy’’ and brands’ high quality). p DCF and v Number of completed deals in the luxury industry Number of completed deals by type of buyer Number of completed deals sorted by nationality of the (global) (global) target over FY11–1Q15 (among the top 10 markets) 70 62 50 32% 35% 45 44 42 33% Germany 60 52 37 30% 30% HK China Netherlands 48 40 1% 2% 1% 1% 50 44 s35 31 25% India s l l a 23% a40 e30 3% e d 20% d f25 f o 20 o . 15% UK 30 o 15% . 20 Italy o 18 N 13 8% N20 15 11 12 10% 30% 10 8 6 10 5 5% 0 0 0% Switzerland FY11 FY12 FY13 FY14 1Q15 FY11 FY12 FY13 FY14 1Q15 14% Corporate PE PE/total France 12% United States 28% Source: Capital IQ, Mergermarket, Factiva The luxury and cosmetics financial factbook 2015