VANCOUVER TORONTO NEW YORK

NIBC 2 0 1 8 - 2 0 1 9 First Ro und Case

SUMMA RY C A SE EXC ERPTS ONLY – F OR PREVIEW

This summary pro vides a preview o f key case co mpo ne nt s fo r individ ual s lo o king to co mpete.
Please sig n up a team at www.nib c. ca to do wnlo ad the full case packag e & templates.
NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 1 | FIRST ROUND CASE
Welcome Letter
Dear 2018-2019 Competitors,
Thank you for competing in the NIBC 2018 Global Investment Banking Competition. Since inception, our
goal has been to create a unique opportunity for investment banking candidates to develop their skills and
be recognized by recruiters on a global stage.

The First Round puts you in the position of an Analyst and Associate at an origination desk developing new
ideas for a client, while the Final Round places you in the Director seat on a live transaction.

Once you have worked through this package, you will have learned how to create a full-fledged investment
banking pitchbook ready to be sent to a client. To help you on this journey, you have been provided with
model templates, slide templates, past case examples and detailed instructions, which you customarily
would have access to at an investment bank. This approach is designed to help you adopt best practices and
produce client-ready work within quick turnaround times.

We would like to thank our growing number of past organizing team members, who have pursued
investment banking careers in New York, London, Hong Kong, Toronto, Calgary and Vancouver and have
contributed to the case, templates and training materials.

Please take the time to review the rules & regulations outlined in this package and direct any inquiries to
Eric Hall ([email protected]) and Mehtaab Chandi ([email protected]) copied to both team members.

We wish all teams much success and hope to see you at the Final Round in Vancouver, Canada on March
13th to 15th, 2019.

The NIBC Board & Organizing Team,

Eric Hall | Associate Director, Competition

Mehtaab Chandi | Case Manager

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 2 | FIRST ROUND CASE
 F IRST ROUND C A SE EXC ERPTS ONLY – F OR PREVIEW
Please sign up a team at www.nibc. c a for full techni c al guidance & templat es

1. Templates 4
2. Scenario 5
3. Company 6
4. Deliverables 9
SUMMARY EXCERPTS ONLY – FOR PREVIEW

5. Technical Guidance 13
A. Company & Industry Analysis
B. Discounted Cash Flow Valuation
C. Trading Comparables Valuation
D. Precedent Transactions Valuation
E. Leveraged Buyout Valuation
F. Strategic Transaction Advice
G. Financial Model Submission
H. Pitchbook Submission
I. Video Submission
J. Team Member Profiles
K. Attachments to Case Package A-D
6. Submission Rules 40
7. Contact Us 42
8. Participating Schools 43
9. Sponsors & Partners 44
10. NIBC Final Round 45

Attachment A: Industry Overview 49

Attachment B: Precedent Transaction Summaries 62
Attachment C: Team Profile Templates 98
Attachment D: Model Output Templates 102

Legal Disclaimer
The Case and all relevant materials such as spreadsheets and 4presentations are a copyright of the members of the NIBC Case
Committee of the National Investment Banking Competition & Conference (NIBC), and intended only to be used by Competitors
of NIBC 2018 between November 30th, 2018 till January 30th, 5 2019. No one may copy, republish, reproduce or redistribute in
any form, including electronic reproduction by “uploading” or “downloading”, without the prior written consent of the NIBC Case
6
Committee. Any such use or violation of copyright will be prosecuted to the full extent of the law.
NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018
9
1 . Templates
Industry Templates & Resources

Please see below a list of suggested resources to aid you in the submission for the Corporate Valuation
and Strategic Review of Tapestry.
▪ Originality: You may use all of the templates provided by NIBC subject to modifying and creating
your own designs; as a deal team you cannot replicate the templates of other banks without making
some meaningful modifications.
▪ The key to delivering high-quality work product under time-pressure is to utilize existing materials and
then allocate more time to customizing and improving them.
▪ Make sure you do not submit slides populated with irrelevant or old information relating to a different
pitch or deal, which looks extremely unprofessional.
▪ Please note that past case examples are meant to be used as reference only as each pitch needs to
emphasize a different set of topics relevant to the particular situation.

Required Resources (Requires Access to Competitor Portal)

2018 Model Template (Excel) Required model template to filled in
Attachment A: Industry Overview (PDF) Required model outputs for pitchbook appendix
Attachment B: Precedent Transactions (PDF) Precedent transaction summaries
Attachment C: Team Profile Template (PDF, PPT) Ream member profile template for pitchbook
Attachment D: Model Outputs Template (PDF, PPT) Model outputs template for pitchbook

Suggested Resources
IB Research Guide (PDF) Investment banking research guide
Pitchbook Templates Library (Web) Collection of slide templates for valuation pitchbooks
Pitchbook Tutorials (Video Series) Pitchbook Instructions (Chapter 1 MANDATORY)
CV & CL Writing Guide (PDF) Guidelines of refining resumes and cover letters
CV & CL Sample (Word) Example of model resume and cover letter
CV Blank Template (Word) Blank resume template
Full Sample Case Pitchbook (PDF) Example of valuation & strategic review pitchbook
Full Sample Case Model (Excel) Example of valuation model

Fundamental Concepts
IB Competitor Workshop (PDF) Introduction to fundamental corporate finance concepts

Corporate Finance Industry (Video) Overview of capital markets

Full-Service Investment Bank (Video) Overview of full-service investment bank

IB Interview Topics (PDF) Common IB topics discussed in interviews

Important Disclaimer: The information contained herein is copyrighted, proprietary and has not been reviewed for external
publication or audited and therefore should not be relied on or used for any other purpose than for training as stated here.

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 4 | FIRST ROUND CASE
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2. The Scenario

From: Head of Consumer Retail, Managing Director

To: Consumer Retail Group (New York)
Subject: Tapestry Initiating Coverage – Valuation & Strategic Review

Deal Team,

Greetings from the Maldives – incredible weather here vs NYC. Just got a call from the CFO of Tapestry.
As you know, I’ve been meeting with a few corporates looking at potential transactions in consumer retail.
They are particularly interested in our views on secular trends and consolidation in luxury fashion.

One of the hot topics is Michael Kors given its recent acquisition of Versace ($2.1bn). Our competitor
snapped up the role due to their relationship with the PE firm (even my Wharton network didn’t help!) They
now have a growing foothold in the emerging North American luxury market. Shame we missed out.

That being said, I believe the space has significant fee potential if we build the right relationships and
position ourselves for the next deal. I’ve initiated coverage on Tapestry and told the CFO they can expect
some valuation work and strategic alternatives in the next few weeks.

Sorry for the short turnaround but I’m hoping it wont be quite as bad if we use our templates. We will need
to demonstrate that we know the company and industry like no one else and can pitch quality ideas.

Also note the VP is taking advantage of some well-deserved vacation days (congrats on the deal) so this
engagement falls entirely in the hands of our talented juniors.

I realize the holidays are fast approaching but this is a great opportunity for you to step up and come closer
to replacing the VP and perhaps even myself … lol (not)

Thanks in advance. Please have this fully vetted on my desk before I’m back on January 30th.

Cheers and best of the season (from the Maldives)!

MD

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 5 | FIRST ROUND CASE
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3 . Company Information

Corporate Overview

Name: Tapestry, Inc.

Relative Stock Performance since IPO
Exchange / Ticker: NYSE / TPR
$80 $4,000
Share Price: $38.93
52-Week Range: $36.72 – $55.50
$60 $3,000
Market Cap: $11,282m
As of Nov 30, 2018
$40 $2,000
Cash and Equivalents: $1,243m
Total Debt: $1,601m
$20 $1,000
FY 2018 Revenues: $5,880m
FY 2018 EBITDA: $1,147m
FY 2018 Net Income: $398m $0 $0
Nov 2000 Nov 2006 Nov 2012 Nov 2018
FY 2018 Diluted EPS: $0.42
TPR S&P 500
Fiscal Year 2018 ended Jun 30, 2018

Tapestry, Inc., previously known as Coach Inc., is an American multinational company with the rights to
luxury fashion houses Coach, Kate Spade, and Stuart Weitzman. The company’s namesake brand,
Coach, was founded in 1941 out of a Manhattan loft and did an IPO for $118m at the turn of the century.
Since then, Coach has acquired Stuart Weitzman ($574m) in 2015 followed by Kate Spade ($2.4b) in
2017. As a result of their Kate Spade acquisition, Coach folded all three brands under their current
name, Tapestry. Headquartered in Manhattan, New York, this American fashion conglomerate operates
over 670 stores across North America and 762 internationally. In addition to the revenue derived from
brick and mortar locations and online, Tapestry plays an active role in licensing their brands to partners
such as Luxottica for eyewear, and various wholesale distributors such as Nordstrom.

Amidst a consolidation trend within the market for luxury brands, Tapestry continues to face fierce
competition against other fashion conglomerates and one-off brands. The company remains committed
towards driving global growth, however, fueling brand innovation and meticulously engineering products
made from the finest materials for a flawless fit – both on and off the red carpet.

Net Sales Components Net Sales (FY 2018)

Coach $4,222m 71.79%
Kate Spade $1,285m 21.85%
Stuart Weitzman $374m 6.36%
Total $5,880m 100%

Sources: Company reports, all figures USD unless specified otherwise

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 6 | FIRST ROUND CASE
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3 . Company Information

Fiscal 2018 Highlights

Tapestry experienced strong results driven by their recent acquisition of Kate

Spade and organic growth. While revenues grew to $5.9b, up 31% to 2017’s $4.5b,
Acquisition operating income increased 22% from $813m to $992m.
Synergies
Diluted EPS had a growth of 22%, standing at $2.63 vs last year’s $2.15,
highlighting the success of Tapestry’s newfound stature as a true house of brands.

For brands Coach and Stuart Weitzman, sales increased by 2.60% and 0.05%
respectively YoY.
Sales
Outlook
Excluding the favorable impact of foreign currency, real sales increased only 1.6%
for Coach while decreasing the same amount for Stuart Weitzman.
Tapestry operates in a fiercely competitive environment where the right capital
allocation and strategic positioning is critical.
Competitive
Environment Coach is on its way to becoming one of the first true American ‘fashion
conglomerates’, with only Michael Kors and L Brands on its heels.

Select Management Comments

Q1 2019 Earnings Call | October 30th, 2018

“[Of] course, our New York Fashion Week presentation again received praise from the editorial community.”
“[We] remain focused first and foremost on execution. As you know, our goal is to deliver strong revenue and
operating income growth in fiscal 2019, while making the right strategic investments to support our long term
vision and return to double digit operating income and EPS growth in FY 2020. Overall, we are proud of our
continued progress in the first quarter and remain very excited about the opportunities ahead for Tapestry and
each of our brands.”
“Our [new] Data Labs team is focused on [using advanced] data tools to drive aggregate business insights
across the organization [and] innovating with advanced analytics to optimize key processes, for example
using machine learning on product allocation, pricing or promotion planning.”
“We continue to reinforce [Coach] Signature as a coveted brand icon by […] significantly expanding the
platform's reach. In September, we continued our partnership with Selena Gomez launching our new cross
category collection.”
– Victor Luis, Chief Executive Officer of Tapestry, Inc.

“[We] couldn't be more excited about having Michael B. Jordan as our first global face for the Coach men’s
and it's currently about 20% business. We've talked before [on] the importance of men's as a driver for total
Coach growth of our business and we see a clear path to $1 billion and beyond.”
– Joshua Schulman, Chief Executive Officer and Brand President of Coach

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 7 | FIRST ROUND CASE
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3 . Company Information
Research Analyst Comments

“TPR’s underlying fundamentals appear solid, with Coach brand comps having
increased for four consecutive quarters, Kate Spade’s turnaround continuing to
progress, and Stuart Weitzman remaining on course to return to sales growth in
F2Q19.”

“Trends at Coach and Kate appear firmly on track, with Kate on pace to deliver positive
[results in the near future] and both brands delivering strong gross margin results.”
“We continue to see significant synergy opportunity with Kate.”

“[Although] Tapestry [has added] to its multi-branded portfolio with a further accretive
acquisition, [we expect] brand dilution from outlet distribution, particularly at Kate
Spade as it further expands into this channel.”

“Stuart Weitzman has had its share of issues – from management turnover to
distribution while Kate Spade is undergoing its own turnaround as management works
to elevate the brand. Both Acquisitions are a ‘wait and see’ story.”
“TPR’s acquisitions of Stuart Weitzman and Kate Spade helped diversify its product
mix slightly, but have increased total exposure to the U.S. and to the same accessible
luxury market.”

“[We remain cautious as] F1Q19 had its puts and takes. Total revenue beat, however,
operating results were mixed”

“TPR shares appear to be over-sold on China fears. [We believe that the] valuation [is
now] attractive for [this] global brand portfolio with longer-term double digit EPS and
free cash flow algorithm.”
“[The real question] is when/if investors will start to feel more comfortable on
sustainability of China spending…”

“Tapestry is a growth stock with more EPS upside than the market prices in.”
“We predict the Coach brand will grow faster and the Kate Spade deal will prove more
accretive than the Street believes.”
“[Both] Coach and Kate Spade have big China opportunities”

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 8 | FIRST ROUND CASE
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4 . Deliverables
DEVELOPMENT PROCESS

Development Process – Corporate Valuation & Strategic Review

The Corporate Valuation and Strategic Review will be presented in one of first meetings you will
have with a new client and must meet all of the following objectives:
✓ Demonstrate you understand the company and its industry
✓ Present perspectives on the value of the company
✓ Introduce actionable corporate finance ideas
✓ Showcase capabilities, professionalism and communication skills

Below diagram illustrates the typical steps and topics that need to be covered to secure a mandate.
ANALYSIS

Company & Industry Research & Analysis

▪ Financial Forecast ▪ Business Model ▪ Market Opportunities ▪ Supply Chain

▪ Strategic Objectives ▪ Capital Structure ▪ Industry Trends ▪ Competitive Landscape

How do the company and industry operate?

DCF Comparables Precedents Leveraged Buyout

MODEL

▪ Intrinsic Valuation ▪ Relative Valuation ▪ Relative Valuation ▪ Financial Sponsors

▪ Understand business ▪ Market Trends ▪ M&A Trends Valuation

What is the company’s worth and what is driving its value?

Corporate Finance Recommendations

ADVICE

▪ Capital Raising ▪ M&A, Joint Ventures ▪ Vertical Integration ▪ In-House Expansion

▪ Capital Structure ▪ Divestitures ▪ Horizontal Integration ▪ Restructuring

How can shareholder value be maximized?

Most critical submission

PITCHBOOK
deliverable & selling tool

SECURE CLIENT ADVISORY MANDATE

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 9 | FIRST ROUND CASE
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4 . Deliverables
ANALYTICAL COMPONENTS (A-F)

Key Steps – Corporate Valuation & Strategic Review

An high-level overview of the purpose of the key components underlying your analysis and
recommendations is provided below.
Company & Industry Analysis (A) In order to credibly position yourself for an advisory
Fundamentals mandate and have a meaningful discussion senior with
management and shareholders, you need to develop a
comprehensive understanding of the company and the
industry it operates in.
Discounted Cashflows (B) Your first task will be to forecast financial statements from
Intrinsic Valuation historical data and public information in order to calculate
free cash flows to capital providers and discount them by
an appropriate cost of capital. This analysis estimates the
present value of the company’s cash flows and ensures
you have a detailed understanding of the company.

Trading Comparables (C) You are required to complete a dataset of trading

Relative Valuation comparables and select the multiples which are the most
suitable for valuing Tapestry. Your should also identify
current valuation themes including how the market is
valuing specific characteristics of companies in the sector.
Precedent Transactions (D) You will need to discuss relevant precedent transactions
Relative Valuation in the space and how those relate to the valuation of
Tapestry. You are required to identify the appropriate
metrics for each transaction and outline how specific
transactions and their context might relate to Tapestry.
Leveraged Buyout (E) You are also requested to produce an analysis on the
Financial Sponsor Valuation viability and implied share price for a Leveraged Buyout
(LBO) and provide some perspectives on the LBO market
in the space.
Corporate Finance Advice (F) Your client has emphasized that Tapestry operates in an
Strategic Recommendations increasingly competitive environment and that they expect
to have an informed discussion on how Tapestry might
allocate capital to maximize shareholder value. They also
want to understand how shareholders are reacting to
Tapestry and other luxury fashion players pursuing
external growth opportunities into specific market
segments. In preparation for this discussion, you are
required to provide an analysis of potential corporate
finance transactions from a strategic, financial and
operational perspective as well as identify relevant
transactions themes in the broader sector.

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 10 | FIRST ROUND CASE
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4 . Deliverables
PITCHBOOK CONTENT (H)

Pitchbook Content – Corporate Valuation & Strategic Review

Your pitchbook needs to incorporate all of the information you want to convey to your client
including team credentials, model outputs and supporting information in appendices.

The expectation is that your client has to only look at your pitchbook to access all of the information
relevant to your pitch and the work you have completed.

THE PITCH BOOK | “All-in-One Selling Tool”

PITCHBOOK CONTENT RESEARCH & ANALYSIS

COMPANY OVERVIEW VALUATION MODEL

Financial Forecast
Outputs Summaries
Strategic Objectives
Business Model Results Overview
Capital Requirements Assumptions Overview
Capital Structure
Discounted Cashflow Valuation
INDUSTRY OVERVIEW Cashflow Forecast
Market Opportunities Discount Rate Assumptions
Industry Trends
Competitive Landscape Relative Valuation
Trading Comparables
VALUATION ANALYSIS Precedent Transactions
Share Price Analysis Analysis of Results
Trading Comparables
Precedent Transactions Leveraged Buyout Valuation
Discounted Cashflows Financing Assumptions
Leveraged Buyout Buyer Landscape

CORPORATE FINANCE ADVICE STRATEGIC ADVICE

Capital Raising
M&A, Divestitures VIDEO PRESENTATION

APPENDICES
TEAM CREDENTIALS

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 11 | FIRST ROUND CASE
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 SUMMA RY C A SE EXC ERPTS ONLY – F OR PREVIEW
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5 . Technical Guidance
(A) COMPANY & INDUSTRY ANALYSIS

A. COMPANY & INDUSTRY ANALYSIS

When you are pitching to a corporate client, you are expected to have done your homework on the
company, its key competitors and the industry environment. This is an essential prerequisite to
having a meaningful discussion with management and shareholders about strategic corporate
finance recommendations. The types of transactions you are proposing typically involve millions (or
billions) of dollars changing hands and may have a transformational impact on a company.
Please refer to the separate research guide sent to you for additional instructions.
COMPANY RESEARCH TOPICS
▪ Financial performance ▪ Stock performance ▪ Strategic objectives
▪ Growth rates & margins ▪ Key valuation metrics ▪ Business model
▪ Capital requirements ▪ Recent news ▪ Competitive advantage
▪ Capital structure ▪ Analyst recommendations ▪ Competitors
▪ Corporate finance activity ▪ Valuation methodologies ▪ Company history
▪ Shareholder base ▪ Volatility & risks ▪ Customers & suppliers

INDUSTRY RESEARCH TOPICS

▪ Market segments ▪ Sector index performance ▪ Sector value-chain
▪ Key players ▪ Sector trends ▪ Business models
▪ Growth rates & margins ▪ Valuation methodologies ▪ Competitiveness
▪ Capital requirements ▪ Return on assets ▪ Sector history
▪ Corporate finance activity ▪ Volatility & risks ▪ Customers & suppliers

QUICK COMPANY CHECKLIST (complete first draft in < 2-5 hours per company)

Quantitative Qualitative
✓ Revenues and EBITDA ✓ Major market segments, properties or assets
✓ Historic & forecasted CAGRs (Revenue, EBITDA) ✓ Proportion of revenues from segments / assets
✓ EBIDTA Margin ✓ Overall market growth and trends by segment
✓ EV and Market Cap ✓ Growth due to market, market share, price
✓ EV/EBIDTA, EV/Sales, EV/Volume Metric, P/E ✓ Business model and supply chain
✓ Multiples relative to historic & future metrics ✓ Key competitors and competitive advantage
✓ Debt/EV and Debt/EBITDA ✓ New developments and capacity expansions
✓ Historic and forecasted capital expenditures ✓ Capital requirements, return on assets, payback
✓ Stock chart relative to S&P and sector index ✓ Leverage, refinancing, spin-off, M&A, other
✓ Analysis of peaks and troughs in stock price ✓ Sources of financing
✓ WACC, beta ✓ Marketing strategy
✓ Cost of Debt, Credit Rating ✓ Ownership

INFORMATION SOURCES

✓ Annual/Quarterly Reports ✓ Financial News ✓ Industry Associations ✓ Company Initiating Coverage

✓ Earnings Calls ✓ Data Aggregators ✓ Wikipedia Research
✓ Investor Presentations ✓ Sector Research ✓ Google ✓ Company Earnings Research

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 12 | FIRST ROUND CASE
 SUMMA RY C A SE EXC ERPTS ONLY – F OR PREVIEW
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5 . Technical Guidance
(B) DISCOUNTED CASHFLOW VALUATION (Page 1 of 9)

B. Discounted Cashflow Analysis

DCF Summary - Operating Cashflows

Cashflow Forecast
*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E
Coach revenues 4,806 4,192 4,147 4,115 4,222 - - - - - - - -
Kate Spade revenues - - - - 1,285 - - - - - - - -
Stuart Weizman revenues - - 345 374 374 - - - - - - - -
Total Revenues 4,806 4,192 4,492 4,488 5,880 - - - - - - - -
Revenue growth (12.8%) 7.2% (0.1%) 31.0% (100.0%) – – – – – – –
Coach COGS (1,509) (1,283) (1,298) (1,260) (1,290) - - - - - - - -
Kate Spade COGS - - - - (574) - - - - - - - -
Stuart Weizman COGS - - (142) (148) (163) - - - - - - - -
Total COGS (1,509) (1,283) (1,441) (1,407) (2,026) - - - - - - - -
Coach SG&A (1,865) (1,963) (1,825) (1,815) (1,847) - - - - - - - -
Kate Spade SG&A - - - - (773) - - - - - - - -
Stuart Weizman SG&A - - (170) (211) (214) - - - - - - - -
Corporate SG&A (312) (328) (403) (268) (349) - - - - - - - -
Total SG&A (2,177) (2,291) (2,398) (2,294) (3,183) - - - - - - - -
Coach EBIT 1,432 946 1,024 1,040 1,084 - - - - - - - -
Kate Spade EBIT - - - - (62) - - - - - - - -
Stuart Weizman EBIT - - 33 16 (3) - - - - - - - -
Corporate SG&A (312) (328) (403) (268) (349) - - - - - - - -
Total EBIT 1,120 618 654 787 671 - - - - - - - -
EBIT growth (44.8%) 5.7% 20.5% (14.8%) (100.0%) – – – – – – –
EBIT margin 23.3% 14.7% 14.5% 17.5% 11.4% – – – – – – – –
Add: Total D&A 189 192 211 213 260 - - - - - - - -
Add: Stock-based compensation 84 95 96 77 81 - - - - - - - -
Add: Integration and restructuring activities 108 60 18 9 135 - - - - - - - -
EBITDA 1,501 964 978 1,086 1,147 - - - - - - - -
EBITDA growth (35.8%) 1.4% 11.1% 5.6% (100.0%) – – – – – – –
EBITDA margin 31.2% 23.0% 21.8% 24.2% 19.5% – – – – – – – –

DCF Summary - Financing Cashflows

Cashflow Forecast
*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E
EBITDA 1,501 964 978 1,086 1,147 - - - - - - - -
Purchases of PPE (220) (199) (396) (283) (267) - - - - - - - -
Provision for income taxes (341) (209) (166) (168) (199) - - - - - - - -
Working capital and other adjustments (178) 175 (23) (38) 111 - - - - - - - -
Free Cashflows / Cashflows for Debt Service 763 731 393 597 792 - - - - - - - -
Interest expense 2 (6) (27) (28) (74) - - - - - - - -
Issuance / repayment of long-term debt 140 756 (15) 712 - - - - - - - - -
Sale (purchase) of investments (484) 106 (388) 876 478 - - - - - - - -
Acquisitions 10 (515) (21) 35 (2,242) - - - - - - - -
Cashflow Available for Equity Distributions 431 1,072 (58) 2,192 (1,045) - - - - - - - -
Equity issuance / repurchase (525) - - - - - - - - - - - -
Dividends (incl. distributions of cash balance) (377) (372) (375) (378) (384) - - - - - - - -
Net Cashflows (471) 700 (433) 1,814 (1,430) - - - - - - - -

Ending Cash Balance 592 1,292 859 2,673 1,243 - - - - - - - -

DCF Summary - Valuation Results
Ending Debt Balance 141 1,037 1,022 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734
Cashflow Forecast
Ending Net Debt Balance (451) (255) 163 (939) 491 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734
*All dollarInterest
Adjusted amounts in millions
Expense (for debt sizing only) 2014 20156 2016
27 2017
28 2018
74 2019E- 2020E- 2021E- 2022E- 2023E- 2024E- 2025E- 2026E-
Free cash flows to the firm for valuation (FCFF) - - - - - - - - - - - - -
Net Debt to EBITDA - (0.3 x) 0.2 x (0.9 x) 0.4 x - - - - - - - -
EBITDA / Notional Interest Expense - 150.6 x 36.3 x 38.2 x 15.5 x - - - - - - - -
Enterprise Value EBITDA Multiple Method Enterprise Value Perpetual Growth Method WACC Assumptions
EBITDA multiple 0.0x
Terminal year EBITDA - Valuation date 31-Jan-19
Revenue muliple 0.0x 10-yr US government bond rate 0.0%
Terminal year Revenue - Perpetual growth of firm cash flows 0.00% Expected market return 0.0%
Present value of terminal value - Present value of terminal value - Market risk premium 0.0%
Present value of forecast FCF - Present value of forecast FCF - Beta 0.00
Enterprise Value - Enterprise Value - CAPM Cost of Equity 0.0%
Debt - Debt - Cost of debt 0.0%
Cash - Cash - Tax rate 0.0%
Equity Value (Market Cap) - Equity Value (Market Cap) - After Tax Cost of Debt 0.0%
Shares outstanding - Shares outstanding - Target gearing 0.0%
Fair Value Share Price $0.00 Fair Value Share Price $0.00 WACC 0.0%

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 13 | FIRST ROUND CASE
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 SUMMA RY C A SE EXC ERPTS ONLY – F OR PREVIEW
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5 . Technical Guidance
(C) TRADING COMPARABLES VALUATION (Page 1 of 3)

C. Trading Comparables Analysis

(2) (2) (2) (2) (2)
Company Name Market Enterprise Total Cash & Revenue EBITDA Earnings Net Debt / EV/Revenue EV/EBITDA P/E EBITDA CAGR Revenue CAGR EBITDA WACC
(1)
Cap. Value Debt S-t Inv. NTM NTM NTM EV LTM NTM 2020E LTM NTM 2020E LTM NTM 3-Yr Hist. 2-Yr Fcst. 3-Yr Hist. 2-Yr Fcst. Margin (%)
(all figures presented in USD millions, except per share figures or where noted)
Eurpoean Luxury Conglomerates
LVMH - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Kering - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Inditex - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Richemont - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

American Luxury Conglomerates

L Brands - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Tapestry - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Michael Kors - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Luxury Apparel
Christian Dior - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Burberry - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Moncler - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Hugo Boss - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Ted Baker - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Luxury Accessories
Hermes - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Luxottica - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Swatch Group - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Tiffany & Co. - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Prada - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Pandora - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Salvatore Ferragamo - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Brunello Cucinelli - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Padini - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Tod's - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Luxury Segments Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Tapestry 0 0 0 0 0 0 0 – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

(2) (2) (2) (2) (2)

Company Name Market Enterprise TotalCash & STRevenue EBITDA Earnings Net Debt / EV/Revenue EV/EBITDA P/E EBITDA CAGR Revenue CAGR EBITDA WACC
(1)
Cap. Value Debt Investm. NTM NTM NTM EV LTM NTM 2020E LTM NTM 2020E LTM NTM 3-Yr Hist. 2-Yr Fcst. 3-Yr Hist. 2-Yr Fcst. Margin (%)
(all figures presented in USD millions, except per share figures or where noted)
Upscale Brands
Tommy Hilfiger - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Ralph Lauren Corporation - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Marks & Spencer - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Steve Madden - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Everyday Brands
H&M - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Gap - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
American Eagle - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Express, Inc - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Athletic Wear
Nike - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Adidas - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Lululemon Athletica - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Under Armour - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Fashion Retailers
Nordstrom - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Hudson's Bay - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
FarFetch - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Buckle - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Noni B - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Related Segments Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Cumulative Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Tapestry 0 0 0 0 0 0 0 – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Sources: Bloomberg, Company Information

(1) Enterprise Value is defined as mark et capitalization, plus total debt and minority interests less cash and short-term investments; ignores equity investments
(2) Based on analyst consensus forecasts

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5 . Technical Guidance
(D) PRECEDENT TRANSACTIONS VALUATION (Page 1 of 3)

D. Precedent Transactions

Michael Kors Acquires Versace (2018) Apax Partners Acquires Cole Haan (2012)
Randa Attempted Acquisition of Perry Ellis (2018) PPR (Kering) Acquires Brioni (2011)
Michael Kors Acquires Jimmy Choo (2017) Blackstone Acquires Jack Wolfskin (2011)
Coach (Tapestry) Acquires Kate Spade (2017) Eurazeo Acquires Stake in Moncler (2011)
Semyrhamis Acquires Stake in Christian Dior (2017) JAB Luxury Acquires Jimmy Choo (2011)
Essilor Acquires Majority Stake in Luxottica (2017) PPR (Kering) Acquires Volcom (2011)
PFC and Zignago Holding AcquireStake in Hugo Boss (2015) LVMH Acquires Stake in Bulgari (2011)
Coach (Tapestry) Acquires Stuart Weitzman (2015) LVMH Acquires Stake in Bulgari (2011)
Sycamore Acquires The Jones Group (2013) Carlyle Acquires Moncler (2008)
LVMH Acquires Loro Piana (2013)

(2)
Target Buyer Transaction LTM EV/LTM
(1)
Company Type Company Type EV Date Year Rationale Impl, EV Revenue EBITDA Revenue EBITDA
(all figures presented in USD millions, except per share figures or where otherwise noted)
Versace Michael Kors September 25, 2018 2018
Perry Ellis Perry Ellis July 2, 2018 2018
Jimmy Choo Michael Kors July 25, 2017 2017
Christian Dior Semyrhamis April 25, 2017 2017
Luxottica Essilor January 16, 2017 2017
Hugo Boss PFC and Zignago February 10, 2015 2015
The Jones Group Sycamore December 19, 2013 2013
Loro Piana LVMH July 8, 2013 2013
Cole Haan Apax Partners November 16, 2012 2012
Brioni Kering July 29, 2011 2011
Jack Wolfskin Blackstone July 21, 2011 2011
Moncler Eurazeo June 6, 2011 2011
Jimmy Choo JAB Luxury May 22, 2011 2011
Volcom Kering May 2, 2011 2011
Bulgari LVMH March 6, 2011 2011
Bulgari LVMH March 6, 2011 2011
Moncler Carlyle August 5, 2008 2008

Average

Tapestry

Combined Entity
EV/Revenue EV/EBITDA
Target Incl.? LTM Incl.? LTM Relevance to Target Valuation
(all figures presented in USD millions, except per share figures or where otherwise noted)

Versace Yes 0.00 Yes 0.00

Perry Ellis Yes 0.00 Yes 0.00
Jimmy Choo Yes 0.00 Yes 0.00
Christian Dior Yes 0.00 Yes 0.00
Luxottica Yes 0.00 Yes 0.00
Hugo Boss Yes 0.00 Yes 0.00
The Jones Group Yes 0.00 Yes 0.00
Loro Piana Yes 0.00 Yes 0.00
Cole Haan Yes 0.00 Yes 0.00
Brioni Yes 0.00 Yes 0.00
Jack Wolfskin Yes 0.00 Yes 0.00
Moncler Yes 0.00 Yes 0.00
Jimmy Choo Yes 0.00 Yes 0.00
Volcom Yes 0.00 Yes 0.00
Bulgari Yes 0.00 Yes 0.00
Bulgari Yes 0.00 Yes 0.00
Moncler Yes 0.00 Yes 0.00
Yes 0.00 Yes 0.00
Average 0.0x 0.0x
Tapestry
Implied Enterprise Value
Total Enterprise Value
- Debt
- Preferred & Other
+ Cash
Equity Value
Shares Outstanding (millions)
Fair Value Share Price

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5 . Technical Guidance
(E) LEVERAGED BUYOUT VALUATION (Page 1 of 2)

E. Leveraged Buyout (LBO) Valuation

Assumed LBO Transaction Summary

Use of Funds Source of Funds
Tapestry - 0.0% Senior Debt - -%
Parent Equity Premium (0%) - 0.0% Junior Debt - -%
Equity Value - -% Revolver - -%
Debt Retired / Assumed 1,734 100.0% Assumed Debt - -%
Transaction Costs - 0.0% Total Debt - -%
Sponsor Equity 491 28.3%
Excess Balance Sheet Cash (Shortfall) 1,243 71.7%
Total Funds Uses 1,734 100% Total Funds Sources 1,734 100%
Post-LBO Transaction
Equity Cashflows 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Proforma Revenue Forecast Annual Revenue % Growth 0.0% - - - - - -
Revenue & Margin Synergies EBITDA Contribution Annual Margin Improvement 0.0% - - - - - -
Proforma EBITDA Forecast Average EBITDA Margin 0.0% - - - - - -
Cashflow for Debt Service (post Taxes, Capex, & WC) - - - - - -
Mandatory Debt Service (Interest Expense) - - - - - -
Repayment of LBO Debt - - - - - -
Operating Cashflow for Equity - - - - - - -
LBO Sponsor Equity (491) - - - - - -
Sales Proceeds (based on 0.0x LTM EBITDA multiple) - - - - - - -
(-) Exit Transaction Costs Current $38.93 - - - - - - -
(-) Remaining Debt at Exit Offered $38.93 - - - - - - -
(+) Excess Cash Premium 0% - - - - - - -
(+) Residual Cash Flows - - - - - - -
Net Equity Cashflows IRR 0.00% (491) - - - - - -
Post-LBO Transaction
Outstanding Debt Balance 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Senior Debt at 0.0% - - - - - - -
Junior Debt at 0.0% - - - - - - -
Revolver Debt at 0.0% - - - - - - -
Assumed Debt at 0.0% - - - - - - -
Total Debt Ending Balance - - - - - - -
Debt/EBITDA NM NM NM NM NM NM NM
Cashflows for Debt Service / Total Interest Expense 0.0x NM NM NM NM NM NM
Cashflows for Debt Service / Senior Interest Expense 0.0x NM NM NM NM NM NM

Detailed LBO Cashflow Summary Post-LBO Transaction

*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Standalone Revenues 4,806 4,192 4,492 4,488 5,880 - - - - - - -
Revenue Synergies - - - - - - - - - - - -
Proforma Revenue Forecast 4,806 4,192 4,492 4,488 5,880 - - - - - - -
Revenue Growth (12.8)% 7.2% (0.1)% 31.0% (100.0)% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Standalone EBITDA 1,501 964 978 1,086 1,147 - - - - - - -
Revenue & Margin Synergies EBITDA Contribution - - - - - - - - - - - -
Proforma EBITDA Forecast 1,501 964 978 1,086 1,147 - - - - - - -
EBITDA Margin 31.2% 23.0% 21.8% 24.2% 19.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Taxes (341) (209) (166) (168) (199) - - - - - - -
Capex (220) (199) (396) (283) (267) - - - - - - -
Change in Working Capital (178) 175 (23) (38) 111 - - - - - - -
Cashflow for Debt Service (post Taxes, Capex, & WC) 763 731 393 597 792 - - - - - - -
Interest Expense on Existing Debt 2 (6) (27) (28) (74) - - - - - - -
Senior LBO Debt Interest Expense - - - - - - - - - - - -
Junior LBO Debt Interest Expense - - - - - - - - - - - -
Mandatory Debt Service (Interest Expense) 2 (6) (27) (28) (74) - - - - - - -
Debt/EBITDA NM NM NM NM NM NM NM
Cashflows for Debt Service / Total Interest Expense NM NM NM NM NM NM
Cashflows for Debt Service / Senior Interest Expense NM NM NM NM NM NM
FCF for LBO Debt Repayment 765 724 366 568 718 - - - - - - -
Repayment of LBO Debt - - - - - - -
Residual Cashflow after LBO Debt Service - - - - - -
LBO Purchase
Excess Cash on Balance Sheet 1,243 - - - - - -
Equity Issuance for LBO 491 - - - - - -
Senior LBO Debt Issuance - - - - - - -
Junior LBO Debt Issuance - - - - - - -
LBO Purchase Price (1,734) - - - - - -
- - - - -
Equity IRR Calculation
LBO Sponsor Equity (491) - - - - - -
Sale Proceeds - - - - - - -
Transaction Costs (Exit) - - - - - - -
Repayment of Debt - - - - - - -
Excess Cash - - - - - - -
Residual Cashflows - - - - - - -
Cash Flows to Equity IRR: -% - (491) - - - - - -

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 16 | FIRST ROUND CASE
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5 . Technical Guidance
(F) CORPORATE FINANCE ADVICE (Page 1 of 2)

F. Corporate Finance Advice

Luxury Fashion Industry Overview Industry by Segment

Revenue by Major Segment
Accessories $118bn
Apparel $75bn
0% 20% 40% 60% 80% 100%
Beauty $52bn
Hard Luxury $32bn Accessories Apparel Beauty Hard Luxury Other

Other $12bn
Industry by Region Distribution Channels
Total revenue $289bn
5-year revenue growth 4.7% 100%
Industry Characteristics 7% 90% Monobr
and
Total Debt/EBITDA 2.9x 9% 80%
33% Store
EBITDA/Interest Expense 8.3x 70%
Average EBITDA margin 7.7% 14% 60% Speciali
ty Store
Quick Ratio 1.4x 50%
EV/Revenue 2.0x 33% 40% Depart
ment
EV/EBITDA 12.8x 30%
Store
Global Industry Europe Americas 20% Off-
price
Total revenue 3-year CAGR 8.1% Rest of Asia Japan 10% Store
Online
China Other 0% Store
Forecasted 5-year revenue growth 4.4%

Carlyle Group takes control of Moncler ($631.04m)

PVH buys remaining interest in Tommy Hilfiger ($3.52bn)

LVMH acquires Bulgari ($2.93b)

Blackstone buys JACK WOLFSKIN ($1.01b)

Kering acquires Brioni ($817.32m)

PVH acquires remaining interest in Calvin Klein ($3.16b)

2007 2008 2009 2010 2011 2012

2013 2014 2015 2016 2017 2018

Michael Kors successfully bids for Versace ($2.2b)

Tapestry acquires Kate Spade ($2.78b)

Michael Kors acquires Jimmy Choo ($1.39b)

LVMH acquires remaining interest in Christian Dior ($10.60b)

Luxottica merges with Essilor ($17.30b)

Permira sells Hugo Boss ($547.85m)

Tapestry acquires Stuart Weitzman ($573.76m)

Dominion Diamond sells Harry Winston to Swatch ($1.00b)

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 SUMMA RY C A SE EXC ERPTS ONLY – F OR PREVIEW
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5 . Technical Guidance
(H) PITCHBOOK SUBMISSION (Page 1 of 2)

H. The Pitchbook

Other than your live discussions in a meeting, the pitchbook is your ultimate selling-tool to convince
your client to consider hiring you as a financial advisor. All critical information can and should be
conveyed in a well structured, concise and visually appealing pitchbook with supporting
information included in appendices.

Overview of Key Topics

Designates mandatory sections although note that relative emphasis will differ for each pitch

Cover Page
INTRO

Team Profile Slide 1 1▪ One-slide team profile (see package attachment)

Table of Contents
Executive Summary 2 2▪ All key conclusions to be immediately apparent

Company Overview
COMPANY

Operating Forecast
Business Model & Objectives
Capital Structure
Ownership

Industry Overview & Supply Chain

INDUSTRY

Market Segments
Competitive Landscape
Industry Trends

Historical Share Price

Valuation Football Field 3 List and rank 3-5 recommendations on one slide
VALUATION

Valuation Analysis Add one slide per recommendation for at least 3

DCF Overview recommendations with rationale, concerns and
Comparables Overview high-level expected financial / valuation impact
Precedents Overview
4▪ List of most likely corporate finance transactions
LBO Overview
among key competitors
Strategic Review
ADVICE

Corporate Finance Advice 3 5▪ Model outputs (see package attachment)

Corporate Finance Industry Activity 4

Appendix I: Model Outputs 5 6▪ Full team profiles (see package attachment)

Appendix II: Team Member Profiles 6
Appendix III Other Supporting Info 7 7▪ Any relevant info too lengthy for main body

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5 . Technical Guidance
(J) TEAM MEMBER PROFILES SUBMISSION

I. Team Member Profiles

Every team is required to submit updated profiles for each team member in the pitchbook and as
separate PDFs.

Evaluation: Please note that personal qualifications will not be used in evaluating your
advancement to the Final Round, which is determined based on the quality of your submission.
However, your ability to present your team and accomplishments in a polished and professional
manner will factor into your overall submission.

Separate CV Submission: Your standard-form one-page CVs will be made accessible to judges
and sponsors upon request .

▪ Please follow our suggested guidelines in Section 3 for writing and

refining your CV.
▪ Include any upcoming future work placements.
▪ Create and upload one combined PDF (entire team) and one
separate PDF per team member (one person).
▪ Each CV must not take up more than one page per person.
▪ Upload all CV files in PDF format.

Team Profiles in Pitchbook: Irrespective of your current experience and qualification, it is critical
that you and your team present yourself in the pitchbook in a polished and professional manner.
This is one of the most important skills for securing a high-profile advisory role and you are
encouraged to closely follow the below guidelines.

Profile Photo: Please watch Pitchbooks Chapter 1 on NIBCLive.com for formatting profile pictures.
In particular, please limit the excess space above the head for any portrait-style pictures.

▪ This slide should be added at the beginning of the pitchbook and

repeated in the appendix and servers as a general introduction.
▪ Introduce every team member in a short paragraph-style format.
▪ Include the most important work experience and personal details.
▪ Create your own design (do not copy the template like-for-like)

▪ This slide should be added to the appendix and summarizes key

accomplishments of all team members on one slide.
▪ Follow the template and divide up the information into roles &
organizations and accomplishments.
▪ You may use the template provided (recommend no modifications)

▪ This slide should be added to the appendix and should include all of
the information highlighted in your CV.
▪ Create one slide per team members.
▪ You may use the template provided (recommend modifying to
include and highlight team-specific experiences)

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 19 | FIRST ROUND CASE
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7 . CONTACT US
Competition Inquiries

Please note that NIBC typically does not provide additional guidance on producing the case
submission unless some corrections are required to the materials provided. This is to ensure a fair
process but also recognizing that this is a real life situation and you are expected to utilize all
information and past examples provided to deliver the best submission.

Should you need to get in contact with a team member regarding any queries, please contact the
respective representatives below via email and be sure to copy both individuals on the email .

Kind regards,
The NIBC Organizing Team

For inquiries about the case and competition rules:

Eric Hall Mehtaab Chandi
NIBC NIBC
Associate Director, Competition Case Manager

[email protected] [email protected]

For inquiries about competition and conference logistics:

Sofiia Salimova Tennille Robertson
NIBC NIBC
Director, Conference Competition Manager

(604
[email protected] [email protected]

For organizational and any other inquiries:

James Huang Maori Hayashi
NIBC NIBC
Director, Operations Operations Manager

[email protected] [email protected]

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 20 | FIRST ROUND CASE
8. Participatingfrom
Highlights SchoolNIBC 2012
Select Canadian Universities

Select US Universities

Select International Universities

NATIONAL INVESTMENT BANKING COMPETITION Competition Prospectus | 21

9. Sponsors & Partners

Past Participating Firms, Sponsors & Judges

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018 Competition Prospectus | 22

10. NIBC Final Round
Hotel Venue

NATIONAL INVESTMENT BANKING COMPETITION Competition Prospectus | 23

10. NIBC Final Round
Opening Reception

NATIONAL INVESTMENT BANKING COMPETITION Competition Prospectus | 24

10. NIBC Final Round
Gala Dinner Final Round

NATIONAL INVESTMENT BANKING COMPETITION Competition Prospectus | 25

 VANCOUVER TORONTO NEW YORK

About NIBC
Established in 2007, the National Investment Banking Competition (NIBC) brings together over 1,600 competitors from 150 universities and 150 professionals in an
annual transaction advisory competition. NIBC was founded on the guiding principle of giving students from any background an equal opportunity to showcase their
skills on a global stage and connect with recruiters from financial centers around the world. Run by a team of dedicated students and with the generous support of
corporate sponsors and board members, NIBC has become the first and largest international investment banking competition globally.

Competition & Case Contact Information

The NIBC Organizing Team would like to thank you for your interest in NIBC 2018. For further inquiries, please copy the following contacts:

Eric Hall | Associate Director, Competition | 604.700.4120 | [email protected]

Mehtaab Chandi | Case Manager | 778.834.6040 | [email protected]

WATCH OUR STORY | VISIT NIBC.ca

NATIONAL INVESTMENT BANKING COMPETITION & CONFERENCE 2018
Appendix A: Industry Overview

NIBC 2018 Global Competition | First Round

 Industry Overview

Luxury Fashion Industry Overview

Revenue by Major Segment Industry by Segment

Accessories $118bn
Apparel $75bn
Beauty $52bn
0% 20% 40% 60% 80% 100%
Hard Luxury $32bn
Accessories Apparel Beauty Hard Luxury Other
Other $12bn
Total revenue $289bn
Industry by Region Distribution Channels
5-year revenue growth 4.7%
100%
Industry Characteristics
90%
7% Monobrand
Total Debt/EBITDA 2.9x
80% Store
EBITDA/Interest Expense 8.3x 9% 33%
70%
Average EBITDA margin 7.7%
14% 60% Speciality
Quick Ratio 1.4x Store
50%
EV/Revenue 2.0x 40%
33% Department
EV/EBITDA 12.8x 30% Store
Global Industry 20%
Europe Americas
Off-price Store
Total revenue 3-year CAGR 8.1% Rest of Asia Japan 10%
Online Store
Forecasted 5-year revenue growth 4.4% China Other 0%

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 2
 Industry Trends

◼ Millennials: The industry is transitioning into a new market where

Millennials are contributing to significant portion of sales.

Trends ◼ Digital Media: Marketing through influencers on social media is becoming

an increasingly dominant arena for brand development
◼ Chinese Consumer: Luxury products are in high demand in the Asian
markets with mixed impacts from the macroeconomic

◼ Brand Acquisition: Quality companies with attractive brands are in strong

demand for conglomerates and financial buyers
Competition
◼ Market Share: Potential to expand market share and monopolize profits via
acquisition

◼ Europe: Heart of the luxury fashion, accessories, and jewelry origination

markets, and home to major conglomerates and brands
Regional ◼ North America: Less history and symbolism in relation to branding but
Characteristics strong contender via private equity investments
◼ Asia / International: Strong consumer demand but limited home-grown
and owned luxury brands

◼ LVMH (10.6% - European luxury conglomerate)

◼ Kering (4.1% - European luxury conglomerate)
Key Players
(% Luxury Goods ◼ Luxottica (0.02% - luxury accessories)
Market, 2017)
◼ Tapestry (0.01% - American luxury conglomerate)
◼ Michael Kors (0.01% - American luxury conglomerate)

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 3
 Key Players
5-Year Share Price Performance and Notable Events

Luxury, High-End,
Genre High-End Luxury Luxury Upscale
Upscale

Core Product Fully diversified luxury Fully diversified luxury Accessories, footwear Premium lifestyle
Modern luxury and lifestyle
Focus products products and apparel products

Louis Vuitton, Dior, Gucci, Bottega

Coach, Kate Spade, Stuart Michael Kors, Jimmy Ralph Lauren, Club
Key Brands Celine, Marc Jacobs, Veneta, Brioni, Yves
Weitzman Choo, Versace Monaco
Givenchy, Fendi, etc Saint Laurent, etc

North America (23%) North America (19%) North America (56%)

North America (59%) North America (64%)
Europe (28%) Europe (35%) Europe (40%)
Geography Asia (24%) Europe (23%)
Asia (37%) Asia (40%) Asia (3%)
Other (17%) Asia (13%)
Other (12%) Other (6%) Other (1%)

François-Henri
CEO Victor Luis Bernard Arnault John Idol Patrice Louvet
Pinault

Headquarters New York City Paris Paris New York City New York City

Bought remaining Closed flagship store

Recently acquired Kate Sold Puma back to Recently acquired
Recent Events interest in Christian on Fifth Avenue, New
Spade original shareholders Versace
Dior brand York City

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 4
 Corporate Finance Activity
Carlyle Group takes control of Moncler ($631m)

PVH buys remaining interest in Tommy Hilfiger ($3.52bn)

LVMH acquires Bulgari ($2.93bn)

Blackstone buys JACK WOLFSKIN ($1.01bn)

Kering acquires Brioni ($817.3m)

PVH acquires remaining interest in Calvin Klein ($3.16bn)

2007 2008 2009 2010 2011 2012

2013 2014 2015 2016 2017 2018

Michael Kors successfully bids for Versace ($2.2bn)

Tapestry acquires Kate Spade ($2.78bn)

Michael Kors acquires Jimmy Choo ($1.39bn)

LVMH acquires remaining interest in Christian Dior ($10.6bn)

Luxottica merges with Essilor ($17.3bn)

Permira sells Hugo Boss ($547.9m)

Tapestry acquires Stuart Weitzman ($573.8m)

M&A Activity: Brand acquisition, growth equity
Dominion Diamond sells Harry Winston to Swatch ($1bm) investment and consolidation over the past decade

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 5
 Recent Brand Acquisitions

Tapestry LVMH Kering

Michael Kors Ralph Lauren PVH

Recent Transactions in Luxury Segment

Tapestry acquires Kate Spade ($2.78bn) Michael Kors successfully bids for Versace ($2.2bn)

LVMH acquires remaining interest in Christian Dior ($10.6bn) Michael Kors acquires Jimmy Choo ($1.39bn)

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 6
 Tapestry Share Price Performance
5-Year Share Price Performance and Notable Events

7
Tapestry, Inc. (NYSE:TPR)
60

50

40

30

20
January 2015 May 2017
Stuart Weitzman Intermediate LLC Kate Spade and Company
10 acquisition announced ($570m) acquisition announced ($2.4bn)

▪ January 2015 – Tapestry announced $570m cash agreement to acquire Stuart Weitzman Intermediate LLC
▪ May 2017 – Tapestry announced $2.4bn all cash tender offer to acquire Kate Spade & Company
▪ Oct 2017 – Rebrands company from Coach to Tapestry to reflect diversified brand portfolio resulting from M&A

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged
 Luxury Segment Share Price Performance
5-Year Share Price of Key Competitors

209.00%

159.00%

109.00%

59.00%

9.00%

-41.00%

-91.00%

Michael Kors Holdings Limited (NYSE:KORS) - Share Pricing LVMH Moët Hennessy Louis Vuitton S.E. (ENXTPA:MC) - Share Pricing
Tapestry, Inc. (NYSE:TPR) - Share Pricing Kering SA (ENXTPA:KER) - Share Pricing
Ralph Lauren Corporation (NYSE:RL) - Share Pricing

Source: Capital IQ

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 8
 Company Profile: Tapestry

Tapestry, Inc

History Operations

▪ The company’s namesake brand, Coach, was founded in 1941 out of a ▪ Operates three core brands: Coach, Stuart Weitzman, and Kate Spade
family-run workshop in a Manhattan workshop ▪ Sells products through Tapestry operated stores, wholesale, online, and
▪ Has since grown into a multinational holding company for luxury fashion third-party distributors / licensers
houses Coach, Kate Spade, and Stuart Weitzman ▪ Fun fact: Coach branded women’s handbags account for 39% of revenue

Select Financial Stats Business Strategy

▪ Exchange / Ticker: NYSE / TPR ▪ Diversification through M&A – have acquired both Stuart Weitzman and
▪ Stock Price: $38.93 Kate Spade brands to gain market share
▪ Market Capitalization: $11.46bn ▪ Moderately grow retail presence with a focus on mainland China and
Europe
▪ Revenue: $5.9bn; Gross Profit: $3.9bn; EBITDA: $1.2bn
▪ Use the data analytics to drive retail and department store traffic, with an
▪ Total Debt: $1.6bn; Cash: $1.0bn
ecommerce platform integrated into the retail experience
▪ EV/EBITDA: 10.2x; EV/Revenue: 2.0x

Select Corporate Finance Transactions Structure

▪ Acquired Kate Spade (2017): $2.4bn Reported revenue in 2018 through three business segments:

▪ Acquired Stuart Weitzman (2015): $574m ▪ Coach (72%)

▪ Kate Spade (22%)

▪ Stuart Weitzman (6%)

Source: Capital IQ as of November 30, 2018; Tapestry 2018 Annual Report

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 9
 Company Profile: LVMH
LVMH Moët Hennessy Louis Vuitton S.E.

History Operations
▪ LVMH was formed by the merger of fashion house Louis Vuitton and wine ▪ Operates five core business groups: Wines & Spirits, Fashion & Leather
and spirits producer Moët Hennessy in 1987 Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective
▪ With M&A history stretching as far back as the 80’s, LVMH has come to Retailing
own and operate exclusive brands across all luxury segments

Select Financial Stats Business Strategy

▪ Exchange / Ticker: EPA / MC ▪ Focus on organic growth and invests heavily in their brands
▪ Stock Price: €252.55 ▪ Both upstream and downstream vertical integration enabling control over
▪ Market Capitalization: €126.84bn the entire value chain (protecting brand image)
▪ Revenue: €44.67bn; Gross Profit: €29.64bn; EBITDA: €10.90bn ▪ Heavy diversification to ensure stable profits and shareholder return
▪ Total Debt: €12.37bn; Cash: €4.96bn
▪ EV/EBITDA: 12.4x; EV/Revenue: 3.0x

Select Corporate Finance Transactions Structure

▪ Acquired Christian Dior Couture S.A. (2017): $7bn Reported revenue in 2017 through the following business segments:
▪ Purchased 80% stake in Rimowa (2016): $716m ▪ Fashion & Luxury Goods (36%)
▪ Purchased 42% stake in Repossi (2015): Undisclosed ▪ Selective Retailing (30%)
▪ Acquired Bulgari (2011): $5.2bn ▪ Perfume & Cosmetics (13%)
▪ Wines & Spirits (12%)
▪ Watches & Jewelry (9%)
Source: Capital IQ as of November 30, 2018; LVMH 2017 Annual Report

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 10
 Company Profile: Kering

Kering SA

History Operations
▪ Founded in 1963 by François Pinault as a timber trading company ▪ Three core brands (Gucci, Bottega Veneta, and Saint Laurent) represent
▪ Transitioned to luxury goods in 1999, purchasing a 42% stake in Gucci over 50% of revenue
Group with further acquisitions in later years ▪ Operates in all international markets through traditional retail and e-
commerce

Select Financial Stats Business Strategy

▪ Exchange / Ticker: EPA / KER ▪ Strong focus on in-store organic sales growth – increasing sales per
▪ Stock Price: €384.00 square meter with new concepts and unique storytelling
▪ Market Capitalization: €48.41bn ▪ Leverage social media through the GucciApp and #GucciGram
▪ Revenue: €16.84bn; Gross Profit: €11.24bn; EBITDA: €4.13bn ▪ Continue to build e-commerce platform (86% growth for Gucci sales)
alongside their refocus on becoming a luxury pure player
▪ Total Debt: €4.72bn; Cash: €1.93bn
▪ EV/EBITDA: 12.4x; EV/Revenue: 3.0x

Select Corporate Finance Transactions Structure

▪ Acquiring Stella McCartney (2018): Undisclosed Reported revenue in 2017 through two business segments:
▪ PUMA spin-off (2018): $4.5bn ▪ Luxury (71%)
▪ Sold 1,500sqm retail property (2017): Undisclosed ▪ Sports & Lifestyle (29%)
▪ Sold Kering Eyewear (2017): Undisclosed
▪ Sold Sergio Rossi (2017): $65.9m

Source: Capital IQ as of November 30, 2018; Kering SA 2017 Annual Report

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 11
 Company Profile: Michael Kors
Michael Kors Holdings Limited

History Operations
▪ Founded by designer Michael Kors in 1990 as a licensee of Bergdorf ▪ Offer four primary collections: Michael Kors Collection, MICHAEL Michael
Goodman Kors, Michael Kors Men, and Jimmy Choo
▪ Went bankrupt in 1990 but remerged in 2003 after a $100m investment ▪ Primary revenue generation is through retail and wholesale operations
▪ Completed IPO at $3.4bn valuation on the NYSE in 2011 ▪ Preparing corporate rebrand as Capri Holdings after Versace acquisition

Select Financial Stats Business Strategy

▪ Exchange / Ticker: NYSE / KORS ▪ Dependent on trendsetting and innovation – unique design and style is
▪ Stock Price: $43.75 the key differentiator in the luxury fashion industry
▪ Market Capitalization: $6.57bn ▪ Brand engagement through product placement is a core marketing
strategy – leveraged celebrities through red carpet product placement and
▪ Revenue: $5.07bn; Gross Profit: $3.10bn; EBITDA: $1.16bn
social media campaigns
▪ Total Debt: $759m; Cash: $155m
▪ Asia market penetration – Jimmy Choo acquisition to help drive growth
▪ EV/EBITDA: 6.2x; EV/Revenue: 1.4x

Select Corporate Finance Transactions Structure

▪ Acquired Gianni Versace S.p.A. (2018): $2.1bn Reported revenue in 2018 through four business segments:
▪ Acquired Jimmy Choo Group Plc. (2017): $1.3bn ▪ MK Retail (57.5%)
▪ Share buyback (2017): $1.0bn ▪ MK Wholesale (34.7%)
▪ Share buyback (2016): $1.0bn ▪ Jimmy Choo (4.7%)
▪ Share buyback (2014): $1.6bn ▪ MK Licensing (3.1%)

Source: Capital IQ as of November 30, 2018; Michael Kors Holdings Limited 2018 Annual Report

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 12
 Company Profile: Ralph Lauren
Ralph Lauren Corporation

History Operations
▪ Founded by designer Ralph Lauren in 1967 by creating men’s ties in New ▪ Producer and distributor of mid range to luxury products
York City ▪ Uses wholesale, retail and licensing deals to generate revenue
▪ IPO’ed on the NYSE in 1997 ▪ Merchandise is available in over 13,000 stores worldwide
▪ Ralph Lauren and his family retain 83% of voting shares

Select Financial Stats Business Strategy

▪ Exchange / Ticker: NYSE / RL ▪ Strategy shift to focus on e-commerce verses traditional brick and mortar
▪ Stock Price: $111.40 ▪ Shut down Firth Avenue flagship store in New York City
▪ Market Capitalization: $8.96bn ▪ Heavily investing in Salesforce e-commerce platform
▪ Revenue: $6.25bn; EBITDA: $962mm ▪ Further segmentation of mid range clientele from luxury clientele – luxury
▪ Total Debt: $8.26bn; Cash: $384mm brand only available through premier retail outlets
▪ EV/EBITDA: 8.4x; EV/Revenue: 1.3x

Select Corporate Finance Transactions Structure

▪ Share buyback (2018): $1bn Reported revenue in 2017 through four business segments:
▪ Share buyback (2014): $2.5bn ▪ North America (57%)
▪ Acquired Impact 21 (2007): $346mm ▪ Europe (23%)
▪ Acquired Ralph Lauren Media LLC (2007): $175mm ▪ Asia (13%)
▪ Acquired Sun Apparel (2005): $355mm ▪ Other (7%)

Source: Capital IQ as of November 30, 2018; Ralph Lauren Corporation 2017 Annual Report

National Investment Banking Competition & Conference 2018 | Highly Confidential and Privileged 13
 NI B C 2018-2019 First Ro u n d Ca se
NIBC Tapestry

A p p e n d i x B : P re c e d e n t T r a n s a c t i o n s
Contents

Michael Kors Acquires Versace (Sep 25, 2018)

Randa Attempted Acquisition of Perry Ellis (Jul 02, 2018)
Michael Kors Acquires Jimmy Choo (Jul 25, 2017)
Coach (Tapestry) Acquires Kate Spade (May 08, 2017)
Semyrhamis Acquires Additional 25.7% Stake in Christian Dior (Apr 25, 2017)
Essilor Acquires Majority Stake in Luxottica (Jan 16, 2017)
PFC and Zignago Holding Acquires 7.2% Stake in Hugo Boss (Feb 10, 2015)
Coach (Tapestry) Acquires Stuart Weitzman (Jan 6, 2015)
Sycamore Acquires The Jones Group (Dec 19, 2013)
LVMH Acquires Loro Piana (Jul 8, 2013)
Apax Partners Acquires Cole Haan (Nov 16, 2012)
PPR (Kering) Acquires Brioni (Jul 29, 2011)
Blackstone Acquires Jack Wolfskin (Jul 21, 2011)
Eurazeo Acquires 45% Stake in Moncler (Jun 6, 2011)
JAB Luxury Acquires Jimmy Choo (May 22, 2011)
PPR (Kering) Acquires Volcom (May 2, 2011)
LVMH Acquires 50.43% Stake in Bulgari (Mar 6, 2011)
LVMH Acquires 49.57% Stake in Bulgari (Mar 6, 2011)
Carlyle Acquires Moncler (Aug 5, 2008)

F IR S T RO UN D C A S E E XC E RP T S – F O R PR EV IE W O NL Y
Ple a se s ig n up a t ea m a t w ww . nib c . c a for f u ll t ec h ni c al g uid a n c e & t em pl a te s

Please note all supplied IEV and LTM figures are in USD.

Legal Disclaimer:
The Case and all relevant materials such as spreadsheets and presentations are a copyright of the members of the Case Committee of
the National Investment Banking Competition & Conference (NIBC), and intended only to be used by Competitors of NIBC 2018 between
December 3 rd, 2018 and January 31st, 2019. No one may copy, republish, reproduce or redistribute in any form, including electronic
reproduction by “uploading” or “downloading”, without the prior written consent of the Case Committee of NIBC 2018. Any such use or
violation of copyright will be prosecuted to the full extent of law.
 Precedent Transactions

Michael Kors Acquires Versace (Sep 25, 2018)

Michael Kors Holdings Limited (NYSE:KORS) signed a definitive agreement to acquire all of the outstanding shares
of Gianni Versace S.p.A. from Versace family, Borgo Luxembourg S.à r.l., Blackstone GPV Capital Partners
(Mauritius) VI-D FDI Ltd., Blackstone GPV Tactical Partners (Mauritius)—N Ltd. and manages of Gianni Versace for
an enterprise value of approximately €1.8 billion on September 24, 2018. The purchase price is subject to certain
adjustments, including, subject to limited exceptions, reductions for any liabilities of Gianni Versace as of the closing
and for dividends, distributions or other payments made by Versace during the period beginning on July 1, 2018
through the closing. The deal value is primarily in cash with €150 million of the consideration to be paid in shares. In
addition, €100 million of the purchase price that would otherwise be payable at the closing to the Versace Parties
will be placed in an escrow account to secure certain indemnification obligations of sellers. Concurrent to the
transaction, Versace Parties will reinvest an aggregate of €150 million of the cash received in Gianni Versace.
Following acquisition, Donatella Versace, Santo Versace and Allegra Versace Beck will become shareholders in
Michael Kors Holdings. The cash portion of the purchase price is expected to be funded by a combination of cash
on hand, drawings under the company’s existing revolving credit facility, and committed underwritten bank term
loans from JPMorgan Chase Bank, N.A. and Barclays. Pursuant to debt commitment letter, JPMorgan Chase Bank
and Barclays Bank have committed to arrange and provide Michael Kors a senior unsecured term loan facility in an
aggregate principal amount of $1.6 billion (€1.359 billion), to the extent that certain amendments are not obtained
under the Michael Kors existing credit facilities prior to the closing of the acquisition, a $1 billion (€849.5 million)
backstop senior unsecured revolving credit facility. The proceeds will be used for the acquisition and to fund the
refinancing of Versace’s existing debt and credit facilities. Capri Holdings Limited (NYSE:CPRI) is the new name to
be adopted by Michael Kors Holdings Limited upon the closing of the transaction.

Versace’s management team will continue to be led by Chief Executive Officer, Jonathan Akeroyd. Donatella
Versace agreed to serve as Chief Creative Director for Versace for an additional five-year term following deal
completion. The transaction is subject to specified closing conditions, including the approval of all of the antitrust
authorities. The transaction is not subject to a financing condition. As of October 18, 2018, the Federal Trade
Commission approved the deal. As of November 8, 2018, European Commission has approved the deal. The
transaction is expected to close in the company’s fourth fiscal quarter of 2019. Michael Kors Holdings believes that
the acquisition of Versace enhances the company’s economic value and will drive improved long-term shareholder
value by accelerating long-term revenue and EPS growth potential. On a non-GAAP basis the acquisition is
expected to be dilutive to earnings per share in the high-single digits in fiscal 2020, accretive in the low-single digits
in fiscal 2021, and accretive in the high-single digits in fiscal 2022.

Implied Enterprise Value: $2,154.21

Buyer Description

Michael Kors Holdings Limited design, markets, distributes, and retails branded women’s and men’s apparel and
accessories. It operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. The MK
Retail segment sells women’s apparel; handbags and small leather goods; men’s apparel; footwear; and licensed
products comprising watches, jewelry, fragrances, and beauty and eyewear. It operates collection stores and
lifestyle stores, including concessions and outlets. As of March 31, 2018, this segment operated 379 Michael Kors
retail stores, including concessions in the United States and Canada (North America), and Latin America (the
Americas); and 450 international retail stores, including concessions in Europe and Asia, as well as e-commerce
sites in North America, Canada, Europe, China, Japan, and South Korea. The MK Wholesale segment sells
handbags and small leather goods; footwear; and women’s and men’s apparel to department stores and specialty
shops in the Americas, Europe, and Asia. The MK Licensing segment licenses its trademarks to third parties to
operate retail stores and/or sell the its products in Brazil, the Middle East, South Africa, Eastern Europe, Asia, and
Australia. The Jimmy Choo segment sells luxury footwear, handbags, and small leather goods through directly
operated Jimmy Choo stores in North America; Europe, the Middle East, and Africa; and Asia, as well as through
Jimmy Choo e-commerce sites. It is also involved in the wholesale distribution activities to partners, multi-brand
department stores, and specialty stores worldwide; and licensing agreements related to the manufacture and sale of
fragrance, sunglasses, and eyewear. As of March 31, 2018, this segment operated 629 wholesale doors. The
© National Investment Banking Competition & Conference 2016
 company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, JIMMY CHOO, and
various other trademarks and logos. Michael Kors Holdings Limited was founded in 1981 and is based in London,

the United Kingdom.

Buyer LTM Financial Information Buyer LTM Balance Sheet

Revenue: $4,258m Debt: $704m

EBITDA: $1,013m Cash and Cash Equivalents: $146m
EBIT: $827m
Net Income: $560m

Target Description

Gianni Versace S.p.A. manufactures and distributes clothes and accessories for men and women. The company
offers bags, shoes, pens, eyewear, fragrances, watches, jewelry, and home products. It sells products online, as
well as through its stores and boutiques in Europe, the Russian Federation and Central Asia, the Middle East, the
Asia Pacific and Australia, China Mainland, Japan, the United States, Canada, and Central and South America. The
company was founded in 1978 and is based in Milan, Italy. Gianni Versace S.p.A. operates as a subsidiary of GIVI
Holding S.p.A.

© National Investment Banking Competition & Conference 2016

Appendix C: Team Profile Templates

NIBC 2018 Global Competition | First Round

Team Introduction

James Maori Tennille Nina

Huang Hayashi Robertson Erdevicki

James is in his third year at the Maori is a third-year student at the Tennille is in her third year at the Nina is in her second year at the
University of British Columbia. He will University of British Columbia. She University of British Columbia. University of British Columbia.
be joining Macquarie Capital as an worked as a summer analyst at She has interned within She most recently completed an
incoming Summer Analyst in Calgary. M&A Cloud, an advisory firm Canaccord Genuity’s Wealth internship at Gravitas Securities
James is an Analyst for the Association focusing on small to mid-sized Management and corporate focusing on early-stage and
of Canadian Intercollegiate Investment businesses and will be joining finance team supporting advisory mature technology clients. Nina
Clubs (ACIIC) and previously worked Citigroup as incoming Summer and IPO financings. Tennille co- competed nationally in women's
for the Corporate Finance Institute. He Analyst in Tokyo. Maori played founded an events group and is a tennis and was ranked 1st in BC
has worked in fine-dining at two of the competitive basketball in Japan former competitive athlete on the and 7th in Canada and is currently
most high-end restaurants in and placed 3rd in the Osaka City BC provincial track & field and competing for the UBC women’s
Vancouver. Marathon. basketball team. tennis team.

[email protected] [email protected] [email protected] [email protected]

+1 (778) 865-9319 +1 (778) 710-2392 +1 (604) 671-0593 +1 (778) 836-4191
Vancouver, Canada Vancouver Canada Vancouver Canada Vancouver Canada

Education Education Education Education

• University of British Columbia • University of British Columbia • University of British Columbia • University of British Columbia
(Bachelor, 3rd Year Finance) (Bachelor, 3rd Year Finance) (Bachelor, 3rd Year Finance) (Bachelor, 2nd Year Finance)

Key Experiences Key Experiences Key Experiences Key Experiences

• Macquarie Capital, Calgary • Citigroup, Tokyo • CanaccordGenuity, Vancouver • Gravitas Securities, Vancouver
(Incoming Summer Analyst) (Incoming Summer Analyst) (Wealth Management & Advisory) (Summer Analyst)
• Corporate Finance Institute, • M&A Cloud, Tokyo • Events Media Group, Vancouver • Professional Tennis
Vancouver (Summer Analyst) (Summer Analyst) (Founding Member) (Ranked 1st in BC / 7th in Canada)

IMPORTANT NOTICE: These team profile examples are provided to NIBC competitors to assist with their submission and may not be shared externally. Thank You.
Team Member Accomplishments

EXPERIENCES SKILLS & ACHIEVEMENTS

James Huang (Undergrad | Finance 2020) Corporate Finance, Investment Research, Hospitality Operation
▪ Macquarie Capital (Calgary): Incoming IB Summer Analyst ▪ Published reports on Henry Hub, National Balancing Point, AECO
▪ Corporate Finance Institute: Research Analyst ▪ Oversaw dining service and front-of-house / back-of-house systems
▪ ACIIC: Research Analyst ▪ 4.20/4.33 Cumulative GPA for years 1 & 2, financial modeling training
▪ Fine Dining: CinCin Ristorante & Bar, Minami Restaurant ▪ Best Player (Basketball), 1st in Regional 4x100m Relay / Discus Throw

Maori Hayashi (Undergrad | Finance 2020) Corporate Finance, Accounting, Sponsorship

▪ Citigroup (Tokyo): Incoming IB Summer Analyst ▪ Invited speakers & sponsors and coached workshops for YI Program
▪ M&A Cloud: Analyst, Mid-Market Advisory ▪ Equity research (Bloomberg Certificate), Valuation modeling training
▪ Prime Focus World: Accounting Assistant, Film & Visual Effects ▪ 85% GPA in 2nd Year, Piano (Yamaha Music Foundation: Japan)
▪ Young Investor Program: Director, Sponsorships ▪ 3rd in City Marathon (Osaka Japan), Regional basketball (Vice-Captain)

Tennille Robertson (Undergrad | Finance 2020) Wealth Management, Professional Events, Direct Sales
▪ Canaccord Genuity: Wealth Management, Advisory ▪ Research for M&A and IPO investment strategies
▪ Community: Free the Children, Events Media Group (Founder) ▪ Raised $100,000+ in funds for WE Free the Children public initiatives
▪ Upstat Marketing: Sales Consultant ▪ Exceeded sales target for 100% commission-based door-to-door sales
▪ Kappa Kappa Gamma Sorority: Marshal Associate ▪ 97th percentile PSAT Math, 3rd in Provincial Basketball (Captain)

Nina Erdevicki (Undergrad, Finance 2021) Corporate Finance, High-Performance Competition, Leadership
▪ Gravitas Securities: IB Summer Analyst ▪ Raised sponsorship for Black Dress Fashion Gala at Fairmont (500+)
▪ Canadian National Tennis: Professional Competitor ▪ Co-founder, workshop leader and web developer for community project
▪ Community: Help Change My City, The Surrey Project (Leader) ▪ 6-time Canadian Tennis Nationals Competitor, 1st in BC / 7th in Canada
▪ Erdevicki Structural Engineering: Administrative Assistant ▪ International Tennis Federation competing in North America, Europe, Asia

IMPORTANT NOTICE: These team profile examples are provided to NIBC competitors to assist with their submission and may not be shared externally. Thank You.
Nina Erdevicki | Associate, Competition

Professional Experience
Gravitas Securities ▪ Completed investment banking summer internship and
Vancouver, Canada directly supported Canadian Head of Capital Markets
Summer 2018 covering Canadian and US clients as-fully licensed broker
― Assisted with pitchbook creation, contract due diligence
and financial research
― Worked on two financing engagements involving early-
+1 (778) 836-4191 stage and mid-size technology clients
[email protected] ― Awarded internship during first year and received
Vancouver, Canada return offer with high performance ranking

National Investment ▪ NIBC runs the largest investment banking competition

Education & Skills Banking Competition globally with 2,000+ competitors and 17 investment banks
▪ Bachelor of Commerce (UBC) Vancouver, Toronto, ▪ Selected by senior board member and investment banking
Finance Specialization, 2nd Year New York professionals to join team as only first year
▪ Other Education & Skills Training 2018-Present ― Asked to moderate fireside chat with Ken Sim, EY
Financial Modeling Entrepreneur of the Year, who I also assisted in a very
Achievements close 2018 Vancouver mayoral campaign
Corporate Finance Research
High-Performance Tennis
International Tennis ▪ Competed in International Tennis Federation (ITF)
Web Development & Marketing
Federation & Tennis tournaments in North America, Europe, Asia, and Canada
Canada ▪ Maintained first place ranking in British Columbia for junior
Awards & Achievements 2012-2017 high performance tennis from 2012-2016
▪ Ranked 1st in BC & 7th in Canada ▪ Competed in Nationals 6 times and attained top Canadian
Canadian Tennis Ranking National Ranking of 7th in Canada.
▪ Competed in Europe, Asia, & America
International Tennis Federation Help Change my City ▪ Help Change my City & the Surrey Project are philanthropic
Vancouver, Canada endeavors to help marginalized youth in Vancouver
▪ “STEM” TELUS Panel Speaker
Science, Tech, Engineering, Math
2016-2017 ▪ Co-Founder, Marketing Executive & Workshop Leader
― Helped organize two Little Black Dress Gala's in
▪ 2018 Mayoral Campaign
Fairmont hotels with 500+ attendees.
Supported runner-up Ken Sim
― Led workshops and mentored troubled youth and
▪ Associate, Competition participated in step-by-step support system
NIBC 2018 Organizing Team

IMPORTANT NOTICE: These team profile examples are provided to NIBC competitors to assist with their submission and may not be shared externally. Thank You.
Appendix D: Model Output Templates

NIBC 2018 Global Competition | First Round

 Discounted Cashflow Valuation | Operating Cashflows (1/5)

DCF Summary - Operating Cashflows

Cashflow Forecast
*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E
Coach revenues 4,806 4,192 4,147 4,115 4,222 - - - - - - - -
Kate Spade revenues - - - - 1,285 - - - - - - - -
Stuart Weizman revenues - - 345 374 374 - - - - - - - -
Total Revenues 4,806 4,192 4,492 4,488 5,880 - - - - - - - -
Revenue growth (12.8%) 7.2% (0.1%) 31.0% (100.0%) – – – – – – –
Coach COGS (1,509) (1,283) (1,298) (1,260) (1,290) - - - - - - - -
Kate Spade COGS - - - - (574) - - - - - - - -
Stuart Weizman COGS - - (142) (148) (163) - - - - - - - -
Total COGS (1,509) (1,283) (1,441) (1,407) (2,026) - - - - - - - -
Coach SG&A (1,865) (1,963) (1,825) (1,815) (1,847) - - - - - - - -
Kate Spade SG&A - - - - (773) - - - - - - - -
Stuart Weizman SG&A - - (170) (211) (214) - - - - - - - -
Corporate SG&A (312) (328) (403) (268) (349) - - - - - - - -
Total SG&A (2,177) (2,291) (2,398) (2,294) (3,183) - - - - - - - -
Coach EBIT 1,432 946 1,024 1,040 1,084 - - - - - - - -
Kate Spade EBIT - - - - (62) - - - - - - - -
Stuart Weizman EBIT - - 33 16 (3) - - - - - - - -
Corporate SG&A (312) (328) (403) (268) (349) - - - - - - - -
Total EBIT 1,120 618 654 787 671 - - - - - - - -
EBIT growth (44.8%) 5.7% 20.5% (14.8%) (100.0%) – – – – – – –
EBIT margin 23.3% 14.7% 14.5% 17.5% 11.4% – – – – – – – –
Add: Total D&A 189 192 211 213 260 - - - - - - - -
Add: Stock-based compensation 84 95 96 77 81 - - - - - - - -
Add: Integration and restructuring activities 108 60 18 9 135 - - - - - - - -
EBITDA 1,501 964 978 1,086 1,147 - - - - - - - -
EBITDA growth (35.8%) 1.4% 11.1% 5.6% (100.0%) – – – – – – –
EBITDA margin 31.2% 23.0% 21.8% 24.2% 19.5% – – – – – – – –

2
 Discounted Cashflow Valuation | Segmented Operating Metrics (2/5)

DCF Summary - Segmented Operating Metrics

Cashflow Forecast
*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E
Total Revenue Growth (12.8%) 7.2% (0.1%) 31.0% (100.0%) -% -% -% -% -% -% -%
Coach Revenue Growth (12.8%) (1.1%) (0.8%) 2.6% (100.0%) -% -% -% -% -% -% -%
Kate Spade Revenue Growth -% -% -% -% (100.0%) -% -% -% -% -% -% -%
Stuart Weizman Revenue Growth -% -% 8.4% 0.1% (100.0%) -% -% -% -% -% -% -%
Coach % of Total Revenues 100.0% 92.3% 91.7% 71.8% -% -% -% -% -% -% -% -%
Kate Spade % of Total Revenues -% -% -% 21.8% -% -% -% -% -% -% -% -%
Stuart Weizman % of Total Revenues -% 7.7% 8.3% 6.4% -% -% -% -% -% -% -% -%
Total EBIT Growth (44.8%) 5.7% 20.5% (14.8%) -% -% -% -% -% -% -% -%
Coach EBIT Growth (33.9%) 8.3% 1.5% 4.3% (100.0%) -% -% -% -% -% -% -%
Kate Spade EBIT Growth -% -% -% -% -% -% -% -% -% -% -% -%
Sturat Weizman EBIT Growth -% -% (52.3%) -% -% -% -% -% -% -% -% -%
Total EBIT Margin 14.7% 14.5% 17.5% 11.4% -% -% -% -% -% -% -% -%
Coach EBIT Margin 22.6% 24.7% 25.3% 25.7% -% -% -% -% -% -% -% -%
Kate Spade EBIT Margin -% -% -% (4.8%) -% -% -% -% -% -% -% -%
Stuart Weizman EBIT Margin -% 9.4% 4.1% (0.7%) -% -% -% -% -% -% -% -%
EBITDA Growth (35.8%) 1.4% 11.1% 5.6% (100.0%) -% -% -% -% -% -% -%
EBITDA Margin 23.0% 21.8% 24.2% 19.5% -% -% -% -% -% -% -% -%

3
 Discounted Cashflow Valuation | Financing Cashflow (3/5)

DCF Summary - Financing Cashflows

Cashflow Forecast
*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E
EBITDA 1,501 964 978 1,086 1,147 - - - - - - - -
Purchases of PPE (220) (199) (396) (283) (267) - - - - - - - -
Provision for income taxes (341) (209) (166) (168) (199) - - - - - - - -
Working capital and other adjustments (178) 175 (23) (38) 111 - - - - - - - -
Free Cashflows / Cashflows for Debt Service 763 731 393 597 792 - - - - - - - -
Interest expense 2 (6) (27) (28) (74) - - - - - - - -
Issuance / repayment of long-term debt 140 756 (15) 712 - - - - - - - - -
Sale (purchase) of investments (484) 106 (388) 876 478 - - - - - - - -
Acquisitions 10 (515) (21) 35 (2,242) - - - - - - - -
Cashflow Available for Equity Distributions 431 1,072 (58) 2,192 (1,045) - - - - - - - -
Equity issuance / repurchase (525) - - - - - - - - - - - -
Dividends (incl. distributions of cash balance) (377) (372) (375) (378) (384) - - - - - - - -
Net Cashflows (471) 700 (433) 1,814 (1,430) - - - - - - - -

Ending Cash Balance 592 1,292 859 2,673 1,243 - - - - - - - -

Ending Debt Balance 141 1,037 1,022 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734
Ending Net Debt Balance (451) (255) 163 (939) 491 1,734 1,734 1,734 1,734 1,734 1,734 1,734 1,734
Adjusted Interest Expense (for debt sizing only) 6 27 28 74 - - - - - - - -

Net Debt to EBITDA - (0.3 x) 0.2 x (0.9 x) 0.4 x - - - - - - - -

EBITDA / Notional Interest Expense - 150.6 x 36.3 x 38.2 x 15.5 x - - - - - - - -

Basic shares outstanding (millions) 278 276 278 281 285 285 285 285 285 285 285 285 285
Diluted shares outstanding (millions) 280 277 279 283 289 289 289 289 289 289 289 289 289
Diluted adjusted earnings (loss) per share $ 2.79 $ 1.45 $ 1.65 $ 2.09 $ 1.38 $ - $ - $ - $ - $ - $ - $ - $ -
Dividend per share (diluted) $ 1.34 $ 1.34 $ 1.34 $ 1.34 $ 1.33 $ - $ - $ - $ - $ - $ - $ - $ -
Equity cashflow per share (diluted including debt drawdowns) $ 4.83 $ 6.50 $ 4.36 $ 9.78 $ 1.83 $ - $ - $ - $ - $ - $ - $ - $ -

Check: Change in cash & equivalents OK OK OK OK OK OK OK OK OK OK OK OK OK

4
 Discounted Cashflow Valuation | Valuation Results (4/5)

DCF Summary - Valuation Results

Cashflow Forecast
*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E
Free cash flows to the firm for valuation (FCFF) - - - - - - - - - - - - -

Enterprise Value EBITDA Multiple Method Enterprise Value Perpetual Growth Method WACC Assumptions
EBITDA multiple 0.0x
Terminal year EBITDA - Valuation date 31-Jan-19
Revenue muliple 0.0x 10-yr US government bond rate 0.0%
Terminal year Revenue - Perpetual growth of firm cash flows 0.00% Expected market return 0.0%
Present value of terminal value - Present value of terminal value - Market risk premium 0.0%
Present value of forecast FCF - Present value of forecast FCF - Beta 0.00
Enterprise Value - Enterprise Value - CAPM Cost of Equity 0.0%
Debt - Debt - Cost of debt 0.0%

Cash - Cash - Tax rate 0.0%

Equity Value (Market Cap) - Equity Value (Market Cap) - After Tax Cost of Debt 0.0%
Shares outstanding - Shares outstanding - Target gearing 0.0%
Fair Value Share Price $0.00 Fair Value Share Price $0.00 WACC 0.0%

5
 Discounted Cashflow Valuation | Assumptions Document (5/5)

Operating Assumptions
Key Metrics CAGR/Avg Long-Term Justification
Total Revenue
(100.0)%
(CAGR '18-'26)
Coach Revenue
(100.0)%
(CAGR '18-'26)
Kate Spade Revenue
0.0%
(CAGR '18-'26)
Stuart Weizman Revenue
(100.0)%
(CAGR '18-'26)
Total EBIT Margin
0.0% 0.0%
(Avg '19-'26)
Coach EBIT Margin
0.0% 0.0%
(Avg '19-'26)
Kate Spade EBIT Margin
0.0% 0.0%
(Avg '19-'26)
Stuart Weizman EBIT Margin
0.0% 0.0%
(Avg '19-'26)
Total EBITDA
(100.0)%
(CAGR '18-'26)
Total EBITDA Margin
0.0% 0.0%
(Avg '19-'26)
Capex (% of revenue)
0.0%
(Avg '19-'26)

Valuation Assumptions
Key Metrics Key Metric Justification
Beta 0.00

Risk-free rate 0.0%

Cost of debt (pre-tax) 0.0%

Perpetual growth rate 0.0%

Exit multiple 0.0x

6
 Trading Comparables Valuation | Summary (1/5)
(2) (2) (2) (2) (2)
Company Name Market Enterprise Total Cash & Revenue EBITDA Earnings Net Debt / EV/Revenue EV/EBITDA P/E EBITDA CAGR Revenue CAGR EBITDA WACC
(1)
Cap. Value Debt S-t Inv. NTM NTM NTM EV LTM NTM 2020E LTM NTM 2020E LTM NTM 3-Yr Hist. 2-Yr Fcst. 3-Yr Hist. 2-Yr Fcst. Margin (%)
(all figures presented in USD millions, except per share figures or where noted)
Eurpoean Luxury Conglomerates
LVMH - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Kering - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Inditex - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Richemont - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

American Luxury Conglomerates

L Brands - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Tapestry - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Michael Kors - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Luxury Apparel
Christian Dior - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Burberry - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Moncler - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Hugo Boss - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Ted Baker - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Luxury Accessories
Hermes - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Luxottica - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Swatch Group - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Tiffany & Co. - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Prada - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Pandora - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Salvatore Ferragamo - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Brunello Cucinelli - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Padini - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Tod's - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Luxury Segments Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Tapestry 0 0 0 0 0 0 0 – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

7
 Trading Comparables Valuation | Summary (2/5)
(2) (2) (2) (2) (2)
Company Name Market Enterprise TotalCash & STRevenue EBITDA Earnings Net Debt / EV/Revenue EV/EBITDA P/E EBITDA CAGR Revenue CAGR EBITDA WACC
(1)
Cap. Value Debt Investm. NTM NTM NTM EV LTM NTM 2020E LTM NTM 2020E LTM NTM 3-Yr Hist. 2-Yr Fcst. 3-Yr Hist. 2-Yr Fcst. Margin (%)
(all figures presented in USD millions, except per share figures or where noted)
Upscale Brands
Tommy Hilfiger - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Ralph Lauren Corporation - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Marks & Spencer - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Steve Madden - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Everyday Brands
H&M - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Gap - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
American Eagle - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Express, Inc - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Athletic Wear
Nike - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Adidas - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Lululemon Athletica - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Under Armour - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Fashion Retailers
Nordstrom - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Hudson's Bay - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
FarFetch - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Buckle - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Noni B - - - - - - - -% 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%
Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Related Segments Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Cumulative Average – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Tapestry 0 0 0 0 0 0 0 – 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x -% -% -% -% -% 0.0%

Sources: Bloomberg, Company Information

(1) Enterprise Value is defined as mark et capitalization, plus total debt and minority interests less cash and short-term investments; ignores equity investments
(2) Based on analyst consensus forecasts

8
 Trading Comparables Valuation | Selection (3/5)

Company Name Yes EV/Rev Yes EV/EBITDA Valuation Rationale

Incl.? NTM Incl.? NTM

Eurpoean Luxury Conglomerates

LVMH Yes 0.0x Yes 0.0x
Kering Yes 0.0x Yes 0.0x
Inditex Yes 0.0x Yes 0.0x
Richemont Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

American Luxury Conglomerates

L Brands Yes 0.0x Yes 0.0x
Tapestry Yes 0.0x Yes 0.0x
Michael Kors Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

Luxury Apparel
Christian Dior Yes 0.0x Yes 0.0x
Burberry Yes 0.0x Yes 0.0x
Moncler Yes 0.0x Yes 0.0x
Hugo Boss Yes 0.0x Yes 0.0x
Ted Baker Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

Luxury Accessories
Hermes Yes 0.0x Yes 0.0x
Luxottica Yes 0.0x Yes 0.0x
Swatch Group Yes 0.0x Yes 0.0x
Tiffany & Co. Yes 0.0x Yes 0.0x
Prada Yes 0.0x Yes 0.0x
Pandora Yes 0.0x Yes 0.0x
Salvatore Ferragamo Yes 0.0x Yes 0.0x
Brunello Cucinelli Yes 0.0x Yes 0.0x
Padini Yes 0.0x Yes 0.0x
Tod's Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

Luxury Segments Selection 0.0x 0.0x

Tapestry 0.0x 0.0x

9
 Trading Comparables Valuation | Selection (4/5)

Company Name Yes EV/Rev Yes EV/EBITDA Valuation Rationale

Incl.? NTM Incl.? NTM

Upscale Brands
Tommy Hilfiger Yes 0.0x Yes 0.0x
Ralph Lauren Corporation Yes 0.0x Yes 0.0x
Marks & Spencer Yes 0.0x Yes 0.0x
Steve Madden Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

Everyday Brands
H&M Yes 0.0x Yes 0.0x
Gap Yes 0.0x Yes 0.0x
American Eagle Yes 0.0x Yes 0.0x
Express, Inc Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

Athletic Wear
Nike Yes 0.0x Yes 0.0x
Adidas Yes 0.0x Yes 0.0x
Lululemon Athletica Yes 0.0x Yes 0.0x
Under Armour Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

Fashion Retailers
Nordstrom Yes 0.00 Yes 0.00
Hudson's Bay Yes 0.00 Yes 0.00
FarFetch Yes 0.0x Yes 0.0x
Buckle Yes 0.0x Yes 0.0x
Noni B Yes 0.0x Yes 0.0x
Average Selection 0.0x 0.0x

Related Segments Selection 0.0x 0.0x

Cumulative Selection 0.0x 0.0x

Tapestry 0.0x 0.0x

Selected Industry Multiple

Tapestry Metric (2019E) Note: Use "Incl.?" column to indicate whether a company should be included in the valuation [0 - No; 1 - Yes]
Total Enterprise Value
- Total Debt
- Preferred & ST Inv
+ Cash
Equity Value
Shares Outstanding (m)
Fair Value Share Price

10
 Trading Comparables Valuation | Calculations (5/5)
(3)
Company Share Market Enterprise Total Cash & ST Revenue EBITDA Earnings Tot. Debt / Net Debt / Total Debt / Net Debt / EV/Revenue EV/EBITDA P/E EBITDA CAGR Revenue CAGR EBITDA

Name Price (USD) Cap. Value Debt Investm. NTM NTM NTM Tot. Cap. EBITDA EV EV 2017A LTM NTM 2020E 2017A LTM NTM 2020E 2017A LTM NTM 2019E 3-Yr Hist. 2-Yr Fcst. 3-Yr Hist. 2-Yr Fcst. Margin (%) BETA WACC
(all figures presented in USD millions, except per share figures or where noted) [use =IF($BP9/BW9<0,"N/A",$BP9/BW9) to avoid errors] [use =IFERROR(AQ9,"NA") to
Eurpoean Luxury Conglomerates
LVMH
Kering
Inditex
Richemont
Average

American Luxury Conglomerates

L Brands
Tapestry
Michael Kors
Average

Luxury Apparel
Christian Dior
Burberry
Moncler
Hugo Boss
Ted Baker
Average

Luxury Accessories
Hermes
Luxottica
Swatch Group
Tiffany & Co.
Prada
Pandora
Salvatore Ferragamo
Brunello Cucinelli
Padini
Tod's
Average

Upscale Brands
Tommy Hilfiger
Ralph Lauren Corporation
Marks & Spencer
Steve Madden
Average

Everyday Brands
H&M
Gap
American Eagle
Express, Inc
Average

Athletic Wear
Nike
Adidas
Lululemon Athletica
Under Armour
Average

Fashion Retailers
Nordstrom
Hudson's Bay
FarFetch
Buckle
Noni B
Average

Tapestry

11
 Precedent Transactions Valuation | Summary (1/2)
Combined Entity
EV/Revenue EV/EBITDA
Target Incl.? LTM Incl.? LTM Relevance to Target Valuation
(all figures presented in USD millions, except per share figures or where otherwise noted)

Versace Yes 0.00 Yes 0.00

Perry Ellis Yes 0.00 Yes 0.00
Jimmy Choo Yes 0.00 Yes 0.00
Christian Dior Yes 0.00 Yes 0.00
Luxottica Yes 0.00 Yes 0.00
Hugo Boss Yes 0.00 Yes 0.00
The Jones Group Yes 0.00 Yes 0.00
Loro Piana Yes 0.00 Yes 0.00
Cole Haan Yes 0.00 Yes 0.00
Brioni Yes 0.00 Yes 0.00
Jack Wolfskin Yes 0.00 Yes 0.00
Moncler Yes 0.00 Yes 0.00
Jimmy Choo Yes 0.00 Yes 0.00
Volcom Yes 0.00 Yes 0.00
Bulgari Yes 0.00 Yes 0.00
Bulgari Yes 0.00 Yes 0.00
Moncler Yes 0.00 Yes 0.00
Yes 0.00 Yes 0.00
Average 0.0x 0.0x
Tapestry
Implied Enterprise Value
Total Enterprise Value
- Debt
- Preferred & Other
+ Cash
Equity Value
Shares Outstanding (millions)
Fair Value Share Price

12
 Precedent Transactions Valuation | Calculations (2/2)
(2)
Target Buyer Transaction LTM EV/LTM
(1)
Company Type Company Type EV Date Year Rationale Impl, EV Revenue EBITDA Revenue EBITDA
(all figures presented in USD millions, except per share figures or where otherwise noted)
Versace Michael Kors September 25, 2018 2018
Perry Ellis Perry Ellis July 2, 2018 2018
Jimmy Choo Michael Kors July 25, 2017 2017
Christian Dior Semyrhamis April 25, 2017 2017
Luxottica Essilor January 16, 2017 2017
Hugo Boss PFC and Zignago February 10, 2015 2015
The Jones Group Sycamore December 19, 2013 2013
Loro Piana LVMH July 8, 2013 2013
Cole Haan Apax Partners November 16, 2012 2012
Brioni Kering July 29, 2011 2011
Jack Wolfskin Blackstone July 21, 2011 2011
Moncler Eurazeo June 6, 2011 2011
Jimmy Choo JAB Luxury May 22, 2011 2011
Volcom Kering May 2, 2011 2011
Bulgari LVMH March 6, 2011 2011
Bulgari LVMH March 6, 2011 2011
Moncler Carlyle August 5, 2008 2008

Average

Tapestry

(1) Current EV
(2) EV/LTM multiple should be calculated based on Transaction EV

13
 Leveraged Buyout Valuation | Transaction Summary (1/3)
Assumed LBO Transaction Summary
Use of Funds Source of Funds
Tapestry - 0.0% Senior Debt - -%
Parent Equity Premium (0%) - 0.0% Junior Debt - -%
Equity Value - -% Revolver - -%
Debt Retired / Assumed 1,734 100.0% Assumed Debt - -%
Transaction Costs - 0.0% Total Debt - -%
Sponsor Equity 491 28.3%
Excess Balance Sheet Cash (Shortfall) 1,243 71.7%
Total Funds Uses 1,734 100% Total Funds Sources 1,734 100%
Post-LBO Transaction
Equity Cashflows 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Proforma Revenue Forecast Annual Revenue % Growth 0.0% - - - - - -
Revenue & Margin Synergies EBITDA Contribution Annual Margin Improvement 0.0% - - - - - -
Proforma EBITDA Forecast Average EBITDA Margin 0.0% - - - - - -
Cashflow for Debt Service (post Taxes, Capex, & WC) - - - - - -
Mandatory Debt Service (Interest Expense) - - - - - -
Repayment of LBO Debt - - - - - -
Operating Cashflow for Equity - - - - - - -
LBO Sponsor Equity (491) - - - - - -
Sales Proceeds (based on 0.0x LTM EBITDA multiple) - - - - - - -
(-) Exit Transaction Costs Current $38.93 - - - - - - -
(-) Remaining Debt at Exit Offered $38.93 - - - - - - -
(+) Excess Cash Premium 0% - - - - - - -
(+) Residual Cash Flows - - - - - - -
Net Equity Cashflows IRR 0.00% (491) - - - - - -
Post-LBO Transaction
Outstanding Debt Balance 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Junior Debt Repayment - - - - - -
Junior Debt Ending Balance at 0.0% - - - - - - -
Senior Debt Repayment - - - - - -
Senior Debt Ending Balance at 0.0% - - - - - - -
Revolver Debt Repayment - - - - - -
Revolver Debt Ending Balance at 0.0% - - - - - - -
Assumed Debt Repayment - - - - - -
Assumed Debt Ending Balance at 0.0% - - - - - - -
Total Debt Ending Balance - - - - - - -

Debt/EBITDA NM NM NM NM NM NM NM
Cashflows for Debt Service / Total Interest Expense 0.0x NM NM NM NM NM NM
Cashflows for Debt Service / Senior Interest Expense 0.0x NM NM NM NM NM NM

14
 Leveraged Buyout Valuation | Cashflow Summary (2/3)
Detailed LBO Cashflow Summary
Post-LBO Transaction
*All dollar amounts in millions 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Standalone Revenues 4,806 4,192 4,492 4,488 5,880 - - - - - - -
Revenue Synergies - - - - - - - - - - - -
Proforma Revenue Forecast 4,806 4,192 4,492 4,488 5,880 - - - - - - -
Revenue Growth (12.8)% 7.2% (0.1)% 31.0% (100.0)% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Standalone EBITDA 1,501 964 978 1,086 1,147 - - - - - - -
Revenue & Margin Synergies EBITDA Contribution - - - - - - - - - - - -
Proforma EBITDA Forecast 1,501 964 978 1,086 1,147 - - - - - - -
EBITDA Margin 31.2% 23.0% 21.8% 24.2% 19.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Taxes (341) (209) (166) (168) (199) - - - - - - -

Capex (220) (199) (396) (283) (267) - - - - - - -
Change in Working Capital (178) 175 (23) (38) 111 - - - - - - -
Cashflow for Debt Service (post Taxes, Capex, & WC) 763 731 393 597 792 - - - - - - -
Interest Expense on Existing Debt 2 (6) (27) (28) (74) - - - - - - -
Senior LBO Debt Interest Expense - - - - - - - - - - - -
Junior LBO Debt Interest Expense - - - - - - - - - - - -
Mandatory Debt Service (Interest Expense) 2 (6) (27) (28) (74) - - - - - - -

Debt/EBITDA NM NM NM NM NM NM NM
Cashflows for Debt Service / Total Interest Expense NM NM NM NM NM NM
Cashflows for Debt Service / Senior Interest Expense NM NM NM NM NM NM

FCF for LBO Debt Repayment 765 724 366 568 718 - - - - - - -
Repayment of LBO Debt - - - - - - -
Residual Cashflow after LBO Debt Service - - - - - -

LBO Purchase
Excess Cash on Balance Sheet 1,243 - - - - - -
Equity Issuance for LBO 491 - - - - - -
Senior LBO Debt Issuance - - - - - - -
Junior LBO Debt Issuance - - - - - - -
LBO Purchase Price (1,734) - -- -- -- -- --

Equity IRR Calculation

LBO Sponsor Equity (491) - - - - - -
Sale Proceeds - - - - - - -
Transaction Costs (Exit) - - - - - - -
Repayment of Debt - - - - - - -
Excess Cash - - - - - - -
Residual Cashflows - - - - - - -
Cash Flows to Equity IRR: -% - (491) - - - - - -

15
Leveraged Buyout Valuation | Assumptions Document (3/3)

LBO Assumtions
Key Levers Values Justification

Debt/EBITDA NM

Interest Rates
0.0% / 0.0%
(Senior / Junior)

Premium 0.0%

Exit Multiple 0.0x

Revenue Increase 0.0%

EBITDA
0.0%
Margin Improvement

16
 VANCOUVER TORONTO NEW YORK

About NIBC
Established in 2007, the National Investment Banking Competition (NIBC) brings together over 1,600 competitors from 150 universities and 150 professionals in an
annual transaction advisory competition. NIBC was founded on the guiding principle of giving students from any background an equal opportunity to showcase their
skills on a global stage and connect with recruiters from financial centers around the world. Run by a team of dedicated students and with the generous support of
corporate sponsors and board members, NIBC has become the first and largest international investment banking competition globally.

Competition & Case Contact Information

The NIBC Organizing Team would like to thank you for your interest in NIBC 2018. For further inquiries, please copy the following contacts:

Eric Hall | Associate Director, Competition | 604.700.4120 | [email protected]

Mehtaab Chandi | Case Manager | 778.834.6040 | [email protected]

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