HISTORICAL BACKGROUND & LACOSTE BUSINESS UPDATE

1. HISTORICAL BACKGROUND& LACOSTE BUSINESS UPDATE

2. RENÉ LACOSTE: A TENNIS CHAMPION René Lacoste (1904 - 1996) entered the legend of tennis when he and his team-mates “the Musketeers” stole the Davis Cup away from the Americans for the first time in 1927 and again in 1928. Not forgetting his numerous singles Grand Slam titles ranking him world N°1 in 1926 and 1927: 3 French Open victories (1925, 1927 & 1929) 2 Wimbledon titles (1925 and 1928) 2 U.S. Open victories (1926 and 1927) Bronze medal at the Olympics in Paris, 1928 As well as 3 doubles Grand Slam victories: 2 French Open titles (1925 and 1929) 1 Wimbledon title (1925) Davis Cup, 1927

3. RENÉ LACOSTE: “THE ALLIGATOR” The true story of the “Crocodile” dates back to 1927 René Lacoste was nicknamed "The Alligator" by the American press after he made a bet with the captain of the French Davis Cup team with an alligator skin suitcase on the line. The public immediately adopted this nickname which conveyed the tenacity René Lacoste displayed on the tennis courts. René Lacoste had then a crocodile embroidered on his blazer which ultimately became an emblem of worldwide renown. Wimbledon, 1928

4. RENÉ LACOSTE: AN INVENTOR René Lacoste developed and ordered in 1927 a personal set of shirts offering comfort and solidity which became instantaneously popular among the players. Following this sportswear apparel “revolution”, René Lacoste kept on innovating from patented string damper to the very first steel racket, winner of 46 Grand Slam tournament titles between 1966 and 1978.

5. RENÉ LACOSTE: A TRUE GENTLEMAN René Lacoste was not only considered as an “esthete” bringing out his elegant style, but also known for his respect to opponents and his loyal friendship with his Davis Cup team-mates, the “Musketeers”. His influence still defines the brand values with reference to a sporting attitude as well as authenticity and self-fulfillment, casual elegance and quality. Wimbledon, 1928

6. Saint Cloud, 1927 René Lacoste at French Internationals - 1927

7. A FAMILY OF CHAMPIONS Madame René Lacoste (Simone Thion de La Chaume) • Main career victories: Girl’s British Junior (1924) Ladies British Championship (1927) French International Championship (1930, 1935, 1938 & 1939) French National Championship (1936, 1937 & 1939) Catherine Lacoste (daughter of Simone and René Lacoste) • Ranked N°1 in the Ladies World Championship (1964 & 1968) • Main career victories: World Team Championship at 19 years’ old US Open (1967) US Championship (1969) British Championship (1969) French Championship (1967,1969, 1970 and 1972) Spanish Championship (1969, 1972 and 1976) French National Championship (1968 and 1969) European Senior Ladies Team Championship (2002)

8. FROM AN ICONIC PRODUCT TO A LIFESTYLE BRAND 1933, birth of La Chemise Lacoste Code-named “1212”, Lacoste shirts made of a light knitted fabric called “jersey petit piqué” started selling to a large public in 1933. Lacoste shirts soon became famous worldwide. They are still today the icon of the brand. Toward new product territories The development toward new product territories was initiated in 1968 with the launch of the first Lacoste fragrance. True to Lacoste heritage and always preserving the brand’s image, the whole collection now offers a diversity which makes Lacoste a lifestyle brand.

9. LACOSTE SYSTEM AND NETWORK CONSUMERS LOCAL RETAILERS DISTRIBUTORS Clothing Perfume Footwear Fashion Jewelry Mobile phones Special initiatives LG & Belts Eyewear Watches Home textile GLOBAL LICENCEES

10. GLOBAL PARTNERS Fashion Jewelry from 2011 Clothing since 1933 Fragrances since 1968 Mobile phone from 2010/11 Leathergoods Since 1969 Home textile since 2000 Eyewear since 1981 Footwear Since 1984 Belts Since 1982 Watches since 1993

11. GLOBAL PARTNERS Groupe GL Clothing Fashion Jewelry from 2011 Fragrances Mobile phone CEMALAC Leathergoods Home textile Eyewear Footwear Belts Watches

12. THE CHOICE OF SELECTIVITY A solid international network based on long-term partnerships has been built from the early fifties. With selectivity as a watchword, the homogeneous and worldwide distribution network preserves the brand’s specificities: affordable prestige, lifestyle positioning and multi-distribution (Lacoste boutiques and corners, department stores, sport shops, specialized shops, duty frees, etc.) It also ensures our customers the right environment for the genuine Lacoste products and provides good assistance to them.

13. LACOSTE TODAY A success story Relying on its authentic roots sports, Lacoste represents today a modern lifestyle, unique and of high quality represented through a wide range of products for men, women and children: sports and leisure apparel, footwear, fragrances, leather goods, eyewear, watches, home textiles and belts. 2 Lacoste products are sold every second In 2010, 50 million items have been sold under the Lacoste brand, representing a total wholesale turnover of € 1.5 billion across 112 countries through a network of 1112 Lacoste boutiques, department stores, sports shops, specialized retailers and more than 2000 clothing corners.

14. LACOSTEGlobal sales

15. 6 Split by activity remain roughly the same in 2010, with slight increase of Apparel weight Lacoste Wholesale sales split activity (M€) – All productsUpdate May 2010 2009 Total sales : 1’361 E2011 Total sales : 1’549M€ Total : 4% Total : 4% Watches1% Watches1% Home Textiles1% Home Textiles1% Eyewear1% Eyewear1% Belts1% Belts1% Leathergoods3% Leathergoods2% Perfumes13% Perfumes14% Footwear18% Footwear20% Apparel60% Apparel62%

16. E 2011 : 51% E2011 : 30% E 2011 : 19% AMERICAS: 30% of the Sales- NORTH AMERICA : 20% Lacoste Wholesale sales – Weight by region (M€) – All productsUpdate May 2010

17. LACOSTEin the USA: a historic story

18. Boston: The Crocodile’s birthplace

19. USA : Home of the Musketeers’ glory years

20. USA : Where René Lacoste and Simone Thion de La Chaume first met

21. USA : Catherine Lacoste becomes the first French and amateur woman to win the Women’s US Open

22. USA : Bernard Lacoste is inspired to build a global company

23. First steps in the USA • 1923 – The first mention of René Lacoste’s nickname, the « crocodile », in the US by the Boston Herald. • 1927 – The crocodile is embroidered on René Lacoste’s blazer. • 1933 – The launch date of the industrial production of the L.12.12 in France. • 1952 – Products begin to be exported to the US. • 1950 – Lacoste enters the U.S. market by licensing its all-cotton shirts to David Crystal Inc., a New York-based manufacturer of apparel marketed under a variety of names, including Izod. The shirts were initially available only in white; after several years, in an attempt to broaden the shirts' appeal beyond the tennis court, colors were introduced. • 1963 – The 1st steel racquet is invented by René Lacoste: this racquet will win 46 Grand Chelem tournament titles from 1966 to 1978. Distributed in the US by Wilson it was used by Jimmy Connors & Billie Jean King, among others.

24. First steps in the USA • 1966 – Signing of the Izod license. • 1968 – General Mills purchases David Crystal Inc. • 1970s – The Lacoste shirt surges in popularity in the late 1970s with the advent of the "preppy" look. • 1981-1982 – Peak sales years with around $400 million in sales in 1981. • 1983 – The downturn of Izod begins. General Mills, using the "commodity" approach that it used with cereal, proceeded to saturate the market with merchandise. The brand invariably lost its upscale cachet, and combined with the rapid waning of the "preppy" look, sales and profits began to fall precipitously. • 1993 – US rights taken back and creation of Devanlay US.

25. LACOSTE in the USA: A «  rollercoaster» Story

26. 5 Fast POS opening with poor selectivity Low AUR Suffering from brand dilution from over distribution and low-end positioning Clothing growth highly dependent on polo Years of retail investments # stores X3 between 03-10 Distribution clean-up US: Rebuilding the brand after the Izod years 1st country15% of tot. sales US - Evolution of sales by product category 1979 - E2010 - (M$) 398 386 -12% 345 331 330 5 Belts 2 315 6 7 0 6 HomeTextiles 7 306 4 3 Watches 42 6 50 8 Eyewear 53 5 268 257 1 Leathergoods 35 1 244 8 46 2 6 37 22 Perfumes 2 37 221 31 Footwear 42 35 Clothing 398 386 35 166 158 330 0 1 0 139 30 129 116 244 10 107 229 225 221 216 93 90 199 197 175 166 71 0 139 60 129 0 20 117 116 107 44 0 93 90 9 1 27 23 24 60 50 16 13 12 9 35 6 3 26 23 20 13 11 9 8 6 3 0 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 E10 # ofboutiques 1 2 4 5 5 7 6 8 13 22 34 46 56 66 69 69 Izod (Crystal Brands) period US rights taken back and creation of Devanlay US (clothing distribution) Creation of PB Footwear US (footwear distribution) P&G distributes fragrances after Clarins Home with Sunham Perfumes, Belts, Watches, Eyewear : Sales in USD calculated with average year FX rate