HISTORICAL BACKGROUND&

LACOSTE BUSINESS UPDATE

Davis Cup, 1927

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)

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

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.

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

Saint Cloud, 1927René Lacoste at French Internationals - 1927

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’ oldUS 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)

A FAMILY OF CHAMPIONS

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.

LACOSTE SYSTEM AND NETWORK

LG & BeltsLG & Belts

EyewearEyewear Home

textile

Home

textileWatchesWatchesFootwearFootwearPerfumePerfumeClothingClothing

GL

OB

AL

LO

CA

L

Mobile phonesMobile phones

DISTRIBUTORSDISTRIBUTORS

RETAILERSRETAILERS

CONSUMERS

Special initiativesSpecial

initiatives

LICENCEES

Fashion

Jewelry

Fashion

Jewelry

GLOBAL PARTNERS

BeltsSince 1982

Eyewearsince 1981

FootwearSince 1984

LeathergoodsSince 1969

Fragrancessince 1968

Clothing since 1933

Watchessince 1993

Home textilesince 2000

Mobile phone from 2010/11

Fashion Jewelry from 2011

GLOBAL PARTNERS

CEMALAC

Belts

Eyewear

Footwear

Leathergoods

Fragrances

Clothing

Watches

Home textile

Mobile phone

Fashion Jewelry from 2011

Groupe GL

THE CHOICE OF SELECTIVITY

A solid international network based on long-termpartnerships has been built from the early fifties.

With selectivity as a watchword, the homogeneous andworldwide distribution network preserves the brand’sspecificities:

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 thegenuine Lacoste products and provides good assistance tothem.

LACOSTE TODAY

• A success story

Relying on its authentic roots sports, Lacoste represents today a

modern lifestyle, unique and of high quality represented througha wide range of products for men, women and children: sportsand 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 Lacostebrand, representing a total wholesale turnover of € 1.5 billionacross 112 countries through a network of 1112 Lacosteboutiques, department stores, sports shops, specialized

retailersand more than 2000 clothing corners.

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LACOSTEGlobal sales

16

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

Lacoste Wholesale sales split activity (M€) – All productsUpdate May 2010

2009Total sales : 1’361

2009Total sales : 1’361

E2011Total sales : 1’549M€

E2011Total sales : 1’549M€

Footwear20%

Belts1%

Apparel60%

Home Textiles1%

Perfumes13%

Leathergoods3%

Watches1%Eyewear

1%Leathergoods

2%

Footwear18%

Perfumes14%

Eyewear1%

Watches1%

Belts1%

Apparel62%

Home Textiles1%

Total : 4% Total : 4%

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AMERICAS: 30% of the Sales- NORTH AMERICA : 20%

E2011 :30%

E 2011 :51%

E 2011 :19%

Lacoste Wholesale sales – Weight by region (M€) – All productsUpdate May 2010

Lacoste Wholesale sales – Weight by region (M€) – All productsUpdate May 2010

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LACOSTEin the USA: a historic story

19

Boston: The Crocodile’s birthplace

20

USA : Home of the Musketeers’ glory years

21

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

22

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

23

USA : Bernard Lacoste is inspired to build a global company

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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.

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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.

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LACOSTE in the USA: A «  rollercoaster» Story

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US: Rebuilding the brand after the Izod years

US - Evolution of sales by product category1979 - E2010 - (M$)

9

9

0

0

20

1

1

97

95

16

99

126

00

30

27

94

133

93

21

00

92

1

22

23

23

197

7

386

9060

5

158

257

50

244

129

2

50

116

175

229

09

306

199216

04

13

35

117

03

330

44

166

76

11

139

2

10

345

05

20

93

26

06

107

315

E10

268

37

221

02

35

42

3

42

225

6

6

46

35

6

71

07

331

8 9

08

37

398

0

-12%

24

91

0

60

01

96

98

93

88

89

116

87

129

86

139

90

90

85

166

84

244

83

330

82

386

81

398

80

221

79

107

0

835

586

31

53

34

Clothing

Footwear

HomeTextiles

Watches

Perfumes

Leathergoods

Eyewear

Belts

Perfumes, Belts, Watches, Eyewear : Sales in USD calculated with average year FX rate

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

# ofboutiques 34 46 56 66 69 69221386755421

Years of retail investments

# stores X3 between 03-10

Fast POS opening with poor selectivity

Low AURSuffering from brand dilution

from over distribution and

low-end positioning

Clothing growth highly dependent

on polo

Distribution clean-up

1st country15% of tot.

sales