All brick-and-mortar channels dramatically hit in 2020, leading to a distribution eco-system transformation YoY ’19 – 20E 2020 … … and beyond • Monobrand stores & outlets suffered due to closures • Department stores and specialty stores: survival of the fittest – European department stores also deteriorated due to lack of tourism • Travel retail heavily impacted from world travel freeze • Online to become #1 channel, fueling omnichannel transformation • Outlet weight increase given value-driven purchases and spur from Chinese middle class • Monobrand stores to be reinvented as a g-local touchpoint with a new role of the store – Physical networks disruption (i.e. resized footprint & format) – Integration of digital in the physical • Department and specialty stores losing relevance (and surface) in ecosystems – Winners vs. losers game: sharp opinion, new calendar and updated business model key to thrive • Travel retail expected to recover to historical levels CAGR ‘19 – ‘25F D I S T R I B U T I O N E C O S Y S T E M T R A

Includes column charts and icons indicating changes in luxury goods market distribution channels from 2019 to 2025F.