Limited Brands

ANALYSIS for NYSE : LTD MARCH 11, 2013

VICTORIA'S SECRET US STORES

$

49.87
$14.4 B MKT CAP
Trefis Estimate

$

45.09
$13 B MKT CAP
Market Price

Victoria's Secret US Revenue per Square Foot 4 Average Square Footage per Victoria's Secret US Store 5 Number of Victoria's Secret US Stores 6 Victoria's Secret US Stores EBITDA Margin 7
BATH & BODY WORKS US STORES

See the Full Analysis for Limited Brands on Trefis
— CORPORATE SNAPSHOT —

Limited Brands sells lingerie, personal care & beauty products, apparel and accessories. The company owns the following brands: Victoria's Secret, PINK, Bath & Body Works, C.O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel brands. Limited Brands is one of the largest specialty retailers in the U.S. with over 3,000 specialty stores nationwide. The company also operates in Canada as well as 40 other countries. Additionally, the company's products are sold through the Victoria's Secret Catalog and online.
— VALUATION HIGHLIGHTS —

Bath & Body Works US Revenue per Square Foot 9 Average Square Footage per Bath & Body Works US Store 10 Number of Bath & Body Works US Stores 11 Bath & Body Works US Stores EBITDA Margin 12
VICTORIA'S SECRET DIRECT Victoria's Secret Direct Revenues 14

Victoria's Secret Direct EBITDA Margin 15
BATH & BODY WORKS DIRECT

1. Victoria's Secret US Stores constitute 48% of the Trefis price estimate for Limited Brands's stock. 2. Bath & Body Works US Stores constitute 30% of the Trefis price estimate for Limited Brands's stock. 3. Victoria's Secret Direct constitutes 19% of the Trefis price estimate for Limited Brands's stock.

Bath & Body Works Direct Revenues 17 Bath & Body Works Direct EBITDA Margin 18
INTERNATIONAL & OTHER International & Other Revenues 19

International & Other EBITDA Margin 20
APPENDICES

See the Interactive Valuation Breakdown on Trefis Our share price estimate and the overall company value is derived by summing-up the values of individual divisions/businesses in a sum-of-theparts analysis. The value of each division is calculated using a discounted cash flow (DCF) methodology. We forecast fundamental drivers like pricing, market share, and profit margins for different businesses in estimating the division’s value within the

Summary P&L for Limited Brands 24 Detailed Victoria's Secret US Stores P&L 25 Detailed Bath & Body Works US Stores P&L 26 Detailed Victoria's Secret Direct P&L 27 Detailed Bath & Body Works Direct P&L 28 Detailed International & Other P&L 29

DCF framework. The analysis below primarily focuses on those important forecasts that drive our share price and value estimate. Our complete analysis, including sources of historical data, underlying equations and additional discussion are available on www.trefis.com.
— POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE —

Below are key drivers of Limited Brands' value that present opportunities for upside or downside to the current Trefis price estimate for Limited Brands: Victoria's Secret US Stores • Victoria's Secret US Revenue per Square Foot: Victoria's Secret US revenue per square foot increased from $581 in 2009 to $817 in 2012 as consumer spending picked up and the brand launched new products. Going forward, we expect revenue per square foot to increase and reach $1,020 by the end of the Trefis forecast period. If revenue per square foot increases to $1,200 by the end of the Trefis forecast period, there could be 10% upside to the Trefis estimate for Limited Brands. On the other hand, if it remains at the same level, there can be 10% downside to the Trefis estimate. • Victoria's Secret US Stores EBITDA Margin: Victoria's Secret US stores EBITDA margin increased to 24.95% in 2011 primarily due to higher merchandise margins. Going forward we expect the figure to increase and reach 26.8% by the end of the Trefis forecast period. If margins increase to 29% by the end of the Trefis forecast period, there could be 5% upside to the Trefis estimate for Limited Brands. On the other hand, if it decreases to 24.5%, there can be 5% downside to the Trefis estimate.
— SOURCES OF VALUE —

We believe Victoria's Secret U.S. and Bath & Body Works U.S. stores are the largest sources of value for Limited Brands. Margins for Bath & Body Works Higher, But Average Size and Revenue Share Higher for Victoria's Secret EBITDA margins for Victoria's Secret is around 23% compared to 27% for Bath & Body Works. However, the average size of a Victoria's Secret U.S. store is almost 2.5x that of Bath & Body Works. Victoria’s Secret generates more than $4 billion in sales a year. It is the fastest growing brand with revenue share increasing from 40% in 2009 to 48% in 2012.
— KEY TRENDS —

Diversity of Products has Increased Intimate Apparel used to be uniform with very few differences among products. Style and Fit were consistent across brands with very little diversity.

TREFIS ANALYSIS for LIMITED BRANDS

CONTENT@TREFIS.COM

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However, over time, many new innovations have occurred leading to more variety and more customized options for women. Increasing Competition in U.S. Intimate Apparel Industry Women’s intimate apparel industry in the US has witnessed an increase in competition as more lingerie brands have ventured into this very lucrative business. Many retailers such as Kohl's and JC Penney have added new lingerie lines and have started offering services such as bra fitters. The heightened competition is a change from the prior two decades, when Victoria's Secret largely had the market to itself. Effective Merchandising and Marketing Key to Growth in Personal Care & Beauty Market In the developed U.S. personal care and beauty market, price competition is fierce, brand loyalty is low and private label is a real threat to manufacturers. The challenge for manufacturers in this category is to offer added benefits that will drive consumers away from budget product lines. With few nonusers to convert and limited population growth, the burden of further expansion comes down to marketing efforts and product innovation See the Full Analysis for Limited Brands on Trefis

TREFIS ANALYSIS for LIMITED BRANDS

CONTENT@TREFIS.COM

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driven by new product launch. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. The figure improved to $817 in 2012. This is an important metric that measures store productivity and drives operating margins.9% of our $49. However. Forecast Rationale Supporting 1. Victoria's Secret US Revenue per Square Foot (K $) 1.75 0. An improvement in consumer confidence and a decrease in unemployment should result in an increase in comparable sales for Limited Brands going forward.50 0.S. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak.The most important drivers for the Victoria's Secret US Stores business are: • Victoria's Secret US Revenue per Square Foot • Average Square Footage per Victoria's Secret US Store • Number of Victoria's Secret US Stores • Victoria's Secret US Stores EBITDA Margin — VICTORIA'S SECRET US REVENUE PER SQUARE FOOT — Victoria's Secret US Revenue per Square Foot refers to the average annual revenue per square feet of retail store space for Victoria's Secret stores and PINK stores in the U. we expect revenue per square foot to increase and reach $1. resulting in decline in sales for apparel retailers across the board. Going forward. strong marketing and consolidation of underperforming stores.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Victoria's Secret US Revenue per Square Foot increased from $581 in 2009 to $663 in 2010 as consumer spending picked up.Victoria's Secret US Stores The Victoria's Secret US Stores division constitutes 47.87 price estimate for this stock. macro conditions have slowly been improving and consumer confidence has rebounded in 2012.S. based on our sum of the parts analysis.COM + 1 617 394 8763 •4 .020 by the end of the Trefis forecast period.25 0.00 0.

demography of the region. targets primarily college girls. accessories. Mitigating 6. EXPANSION INTO NEW PRODUCT CATEGORIES – Victoria's Secret over the past few years has expanded its product offering outside of its core lingerie products. Additionally. This should act as a near-term tailwind for the division's revenue per square foot. EXPANSION OF BEAUTY CATEGORY SHOULD DRIVE REVENUE PER SQUARE FOOT – Beauty segment is one of the fastest growing categories at Victoria's Secret Stores./srt]. An increase in contribution of beauty category to Victoria's Secret's sales should reflect as an increase in the division's revenue per square foot. CLOSING OF UNDER PERFORMING VICTORIA'S SECRET STORES. This typically depends on store formats. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.2. 5.S. 3. 4. evening wear. the expected traffic and real estate prices. Unlike Victoria's Secret. presenting Limited Brands a long runway of growth for this brand. sportswear and loungewear also represent promising new growth categories for Victoria's Secret. Opening exclusive new PINK stores and adding full merchandise of PINK to existing Victoria's Secret stores should drive revenue per square foot higher going forward. The category has higher revenue per square feet than other categories. the penetration of PINK in US market is quite limited. Currently beauty represents nearly 20% of Victoria's Secret US sales.COM + 1 617 394 8763 •5 . We expect this product category expansion to continue in the future as Victoria's Secret leverages its strong brand. The company generally decides the size of a store at a particular location on factors like availability of space. luggage and fragrances. are out with new lingerie lines. launched as the lifestyle brand of the company in 2004. as Limited closed 19 and 20 Victoria's Secret stores in 2011 and 2012. online and brick & mortar. The trend has been evident over the past two years. Sources for historical data and explanations can be found on the Trefis. INCREASING COMPETITION IN THE HIGH MARGIN INTIMATE APPAREL MARKET – Many retailers. Victoria's Secret now also offers shoes. As a result of increasing competition. handbags. Even established specialty retailers such American Eagle Outfitters. are starting to include intimate apparel as part of their product offerings. Victoria's Secret US stores may lose market share going forward. other categories such as swimwear. – Closing of under performing Victoria's Secret stores remains a high priority for the company. Increased product offerings at Victoria's Secret stores should result in an increase in Victoria's Secret US Revenue per Square Foot.com website (link) — AVERAGE SQUARE FOOTAGE PER VICTORIA'S SECRET US STORE — Average Square Footage per Victoria's Secret US Store refers to the average retail space area per Victoria's Secret U. store measured in terms of square feet units. respectively. We expect this to continue in 2013 as well with the retailer planning to close 18 stores. Abercrombie & Fitch etc. EXPANSION OF PINK – PINK.

swimwear. in 2012.COM + 1 617 394 8763 •6 . leveraging the success of strategic locations. in 2009 to 5. Limited plans to expand its existing Victoria's Secret store size to add new categories such as beauty. Mitigating 2. ft. TRENDS IN THE REAL ESTATE MARKET – As real estate prices increase and availability of desired spaces in prime locations become scarce. Limited Brands should find it increasingly difficult to increase its store size.990 sq. ft. we believe the figure will continue to increase.com website (link) — NUMBER OF VICTORIA'S SECRET US STORES — This refers to the number of Victoria's Secret stores and PINK stores operating in the US at the end of fiscal year. Forecast Rationale Trefis considere the following factors for its forecast: Supporting 1.Average Square Footage per Victoria's Secret US Store (K) 6 5 4 3 2 1 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 The Average Square Footage per Victoria's Secret US Store increased from 5. Going forward. Sources for historical data and explanations can be found on the Trefis. EXISTING STORE EXPANSION AS PART OF GROWTH STRATEGY – Part of Limited Brands' growth strategy is to expand its existing stores.778 sq. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. VSX and broader bra assortments. PINK.

EBITDA Margin represents divisional EBITDA as a percentage of divisional revenues. Victoria's Secret is by far the largest lingerie retailer in the U. Abercrombie's Gilly Hicks and American Eagle Aerie operate far fewer number of stores.043 in 2008 to 1. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses.S. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. Taxes. such as stock-based compensation expenses.019 in 2012 with a mix of store closure and PINK's expansion. and R&D Expenses. The retailer will continue this in 2013 as well with another 18 stores planned for closure. Forecast Rationale Supporting: 1. SG&A Expenses. If the number of new VS PINK stores exceed the number of VS under performing stores closed.COM + 1 617 394 8763 •7 .com website (link) — VICTORIA'S SECRET US STORES EBITDA MARGIN — Earnings Before Interest. Sources for historical data and explanations can be found on the Trefis. the figure slightly increased to 1.Number of Victoria's Secret US Stores (K) 1.75 0. Mitigating: 2. OPENING OF VS PINK STORES – Expanding PINK is one of the company's key initiatives in the US. While the company opened just 2 PINK stores in 2011.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Number of Victoria's Secret US Stores has declined from 1. The trend has been evident over the past two years as Limited closed 19 and 20 Victoria's Secret stores in 2011 and 2012.25 0.50 0. number of VS stores should increase. CLOSING OF UNDER PERFORMING VICTORIA'S SECRET STORES – Closing of under performing Victoria's Secret stores remains a high priority for the company. such as Cost of Goods and Services Sold. Going forward. respectively.046 by the end of the Trefis forecast period. Competitors such as Frederick's of Hollywood. However. We adjust EBITDA figures to exclude non-recurring charges and noncash charges.. we expect the store count to increase in 2013 with PINK's expansion and thereafter stabilize at 1.017 in 2011 as the company shut down some of its under-performing stores. it opened 19 PINK stores in 2012.00 0.

2. Heightened competition may lead to competitive pricing and could negatively impact EBITDA margins in the future. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U. An increase in contribution of beauty category to Victoria's Secret's sales should result in EBITDA margins increasing. INCREASING COMPETITION IN THE US INTIMATE APPAREL MARKET – Victoria's Secret US stores should face increasing competition as new players and established brands enter the intimate apparel market. GROWTH OF HIGH-MARGIN CATEGORIES – Limited is focusing on the growth of high margin categories such as beauty. Mitigating 4. In 2011 the figure further improved to 24. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak. which should reflect as an increase in near-term margins. Beauty segment is one of the fastest growing categories in Victoria's Secret Stores. Going forward we expect the divisional EBITDA margin to increase and reach 26.COM + 1 617 394 8763 •8 . However.S. resulting in decline in sales for apparel retailers across the board. This should lead to an increase in marketing expense as Victoria's Secret tries to defend its market share.11% in 2009 to 23.8% by the end of the Trefis forecast period. macro conditions have slowly been improving and consumer confidence has rebounded in 2012. The increase was driven by higher merchandise margins due to a decrease in promotional activity in 2010. operating expenses should result in an improvement of EBITDA margins going forward. An improvement in macro-economic conditions should result in lesser promotional activities this year. 3. Currently beauty represents 20% of Victoria's Secret US sales.95%.Victoria's Secret US Stores EBITDA Margin (%) 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Victoria's Secret US Stores EBITDA Margin increased from 20.com website (link) TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.82% in 2010. Forecast Rationale Supporting 1. OPERATING LEVERAGE – A faster growth of revenues vs. Sources for historical data and explanations can be found on the Trefis.

06 227 0. Bath & Body Works US Revenue per Square Foot ($) 750 500 250 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.72 848 1.38 3. For the purposes of our analysis.39 4.54 757 CY15 5.43 370 1.74 4.35 782 1.73 885 In addition.69 546 1.96 814 1. This is an important metric that measures retail productivity and drives operating margins.96 n/a CY11 4.71 873 CY19 6. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.48 811 1.58 821 1.13 4. you can see the detailed P&L for the Victoria's Secret US Stores business in the Appendix (link) Bath & Body Works US Stores The most important drivers for the Bath & Body Works US Stores business are: • Bath & Body Works US Revenue per Square Foot • Average Square Footage per Bath & Body Works US Store • Number of Bath & Body Works US Stores • Bath & Body Works US Stores EBITDA Margin — BATH & BODY WORKS US REVENUE PER SQUARE FOOT — Bath & Body Works US Revenue per Square Foot refers to the average annual revenue per square feet of retail store space for Bath & Body Works US stores. Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Bil $) Free Cash Flow (Mil $) CY09 3.60 815 CY16 6.26 4.68 858 CY18 6.Note that Limited Brands reports financial information for fiscal year ended January 31st.95 4.56 3.50 2.42 609 CY14 5.70 n/a CY10 4.21 778 1.14 n/a CY12 4.67 841 1.02 3.79 114 0.COM + 1 617 394 8763 •9 .64 833 CY17 6.98 3.29 n/a CY13 5.46 4.

In 2012. Forecast Rationale Supporting: 1.COM + 1 617 394 8763 •10 . An improvement in consumer confidence and a decrease in unemployment should result in an increase in comparable sales for Limited Brands going forward. respectively. Sources for historical data and explanations can be found on the Trefis. This has been evident over the past two years as Limited closed 19 and 20 Bath & Body Works stores in 2011 and 2012.Bath & Body Works US Revenue per Square Foot increased from $587 in 2009 to $620 in 2010. This typically depends on store formats. resulting in decline in sales for apparel retailers across the board. which should result in an increase in the division's revenue per square foot going forward. 3. home fragrance and antibacterial categories. CLOSING OF UNDER PERFORMING BATH & BODY WORKS STORES – Closing of under performing Bath & Body Works stores is a key initiative for the company. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U. demography of the region. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak. We expect this to continue. 2. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. The company generally decides the size of a store at a particular location on factors like availability of space. LAUNCH OF NEW PRODUCTS – Launching new products is a key growth strategy for Bath & Body Works. the expected traffic and real estate prices. it further rose to $724 as Bath & Body Works continued its strength in signature collection.S. which should act as a near-term tailwind for the division's revenue per square foot. We expect the figure to increase going forward and reach $898 by the end of the Trefis forecast period. macro conditions have slowly been improving and consumer confidence has rebounded in 2012.com website (link) — AVERAGE SQUARE FOOTAGE PER BATH & BODY WORKS US STORE — Average Square Footage per Bath & Body Works US Store refers to the average retail space area per Bath & Body Works US store measured in terms of square feet units. The figure increased to $658 in 2011 due to a 6% increase in Bath & Body Works comparable store sales. The growth was primarily driven by growth in the Signature Collection (including the re-launch of the men’s line). The company is particularly focused on introducing new fragrances and anti-bacterial products. However. home fragrance and soap & sanitizer.

5 0.5 1. Sources for historical data and explanations can be found on the Trefis.Average Square Footage per Bath & Body Works US Store (K) 2.COM + 1 617 394 8763 •11 .0 1. ADDITION OF NEW CATEGORIES – Limited plans to add new categories to its Bath & Body Works stores particularly in fragrance and anti-bacterial segments. Going forward we expect the figure to increase slightly.5 2.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average Square Footage per Bath & Body Works US Store has remained constant at around 2. feet historically.com website (link) — NUMBER OF BATH & BODY WORKS US STORES — This refers to the number of Bath & Body Works stores operating in the US at the end of fiscal year TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.370 sq. Forecast Rationale Supporting: 1. This should reflect as an increase in Average Square Footage per Bath & Body Works US Store going ahead.0 0.

Number of Bath & Body Works US Stores (K) 1.COM + 1 617 394 8763 •12 .25 1. Number of Bath & Body Works US Stores will decrease further going forward as the company closes more under performing Bath & Body Works stores in the U.50 0. respectively. Taxes. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenues.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Number of Bath & Body Works US Stores has declined from 1. and R&D Expenses.50 1.571 in 2012 as the company shutdown some of its under-performing stores.25 0. CLOSING OF UNDER PERFORMING BATH & BODY WORKS STORES – Closing of under performing Bath & Body Works stores is a key initiative for the company. which should act as a near-term tailwind for the division's revenue per square foot.S. such as stock-based compensation expenses. such as Cost of Goods and Services Sold. We believe. Forecast Rationale Supporting: 1. Sources for historical data and explanations can be found on the Trefis. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses.00 0. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. We expect this to continue. This has been evident over the past two years as Limited closed 19 and 20 Bath & Body Works stores in 2011 and 2012.638 in 2008 to 1.75 0.com website (link) — BATH & BODY WORKS US STORES EBITDA MARGIN — Earnings Before Interest. We adjust EBITDA figures to exclude non-recurring charges and noncash charges. SG&A Expenses.

31% in 2010. Forecast Rationale Supporting 1. The increase was primarily driven by higher merchandise margins as a result of a decrease in cost of goods sold due to cost cuts in the Bath & Body Works business.15 2.09 348 CY15 3. macro conditions have slowly been improving and consumer confidence has rebounded in 2012. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.71 1. Sources for historical data and explanations can be found on the Trefis.09 2.22 361 CY17 3. resulting in decline in sales for apparel retailers across the board.3% by the end of the Trefis forecast period. Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) CY09 2.com website (link) Note that Limited Brands reports financial information for fiscal year ended January 31st.COM + 1 617 394 8763 •13 .42% in 2009 to 26.49 1.30 373 CY19 3. For the purposes of our analysis. Going forward we expect the divisional EBITDA margin to increase and reach 28. This increase in margins was partially offset by an increase in buying and occupancy expenses primarily driven by higher net sales and store related activity. An improvement in macro-economic conditions should result in lesser promotional activities this year. 2.26 364 CY18 3. operating expenses should result in an improvement of EBITDA margins going forward.35 380 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.01 2.S.96 253 CY13 2. which should reflect as an increase in near-term margins. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak.28 1. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U.81 2. In 2011 the figure improved slightly to 26.83 184 CY12 2.48% due to higher merchandise margins.03 386 CY14 2.90 2.75 135 CY11 2.16 348 CY16 3.9 CY10 2. However.74 36.37 1.28 2. OPERATING LEVERAGE – Faster growth of revenues vs.21 2.Bath & Body Works US Stores EBITDA Margin (%) 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Bath & Body Works US Stores EBITDA Margin increased from 23.

502 million.75 0.25 1.75 1. although at a slower rate as compared to 2010 and 2011.25 0.00 0. The figure increased in 2012 to $1.com website.50 0. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U.COM + 1 617 394 8763 •14 .S. Victoria's Secret Direct Revenues ($ Bil) 1. you can see the detailed P&L for the Bath & Body Works US Stores business in the Appendix (link) Victoria's Secret Direct The most important drivers for the Victoria's Secret Direct business are: • Victoria's Secret Direct Revenues • Victoria's Secret Direct EBITDA Margin — VICTORIA'S SECRET DIRECT REVENUES — Victoria's Secret Direct Revenues refers to the annual revenue generated through the Victoria's Secret Catalogs and victoriassecret. Going forward we expect Victoria's Secret direct revenues to increase and reach $1.865 million by the end of the Trefis forecast period.50 1.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Victoria's Secret Direct Revenues increased 8% in 2010 to $1. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak. Forecast Rationale Supporting: 1. resulting in decline in sales for apparel retailers across the TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.593 million.Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) CY09 CY10 CY11 532 624 659 n/a n/a n/a CY12 744 n/a CY13 781 395 CY14 CY15 815 850 466 501 CY16 CY17 873 890 511 525 CY18 CY19 908 927 534 547 In addition.

ADDITION OF NEW CATEGORIES – Limited is adding new product categories to its direct business to grow revenues.06% in 2011. The increase was driven by higher merchandise margins as a result of decreased promotional activity.com website (link) — VICTORIA'S SECRET DIRECT EBITDA MARGIN — Earnings Before Interest. ADDITION OF DIFFERENT CHANNELS TO THE DIRECT BUSINESS – Limited Brands is focused on developing other channels of direct business such as m-commerce and f-commerce (f for Facebook). and R&D Expenses. SG&A Expenses. An improvement in consumer confidence and a decrease in unemployment should result in an increase in comparable sales for Limited Brands going forward.COM + 1 617 394 8763 •15 . 3.board. such as stock-based compensation expenses. swim and beauty are quite popular on its direct channel and we expect this to drive revenues higher in the future. Additionally. Taxes. 4. However. more consumers are buying their clothes online.1% by the end of the Trefis forecast period. Going forward we expect the division's EBITDA margin to increase and reach 29. Categories such as PINK. 2. This should translate into an increase in Victoria's Secret direct revenues going forward. macro conditions have slowly been improving and consumer confidence has rebounded in 2012. Victoria's Secret Direct EBITDA Margin (%) 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Victoria's Secret Direct EBITDA Margin increased consistently from 22. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. Sources for historical data and explanations can be found on the Trefis. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenues.7% in 2009 to 28. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. We adjust EBITDA figures to exclude non-recurring charges and noncash charges. Victoria's Secret is one of the most followed brands on Facebook with nearly 19 million fans. such as Cost of Goods and Services Sold. Mobile channel currently contributes a substantial amount to Victoria's Secret direct sales and with increasing smartphone penetration we expect this trend to continue going forward. We believe that online retail will continue to grow in the future with an advancement in technology. GROWTH IN E-COMMERCE – With increasing internet penetration.

For the purposes of our analysis.85 1.87 1.12 102 436 n/a CY12 1. OPERATING LEVERAGE – Faster growth of revenues vs. Currently beauty represents 20% of Victoria's Secret US sales.18 201 478 276 CY14 1.COM + 1 617 394 8763 •16 .31 187 537 349 CY19 1.07 19.50 1.14 120 456 n/a CY13 1.71 1. Sources for historical data and explanations can be found on the Trefis. macro conditions have slowly been improving and consumer confidence has rebounded in 2012.27 183 521 338 CY17 1.56 1. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U.Forecast Rationale Supporting 1.32 188 542 353 In addition.79 1. GROWTH OF HIGH-MARGIN CATEGORIES – Limited is focusing on the growth of high margin categories such as beauty. However. An improvement in macro-economic conditions should result in lesser promotional activities this year. operating expenses should result in an improvement in EBITDA margins going forward. you can see the detailed P&L for the Victoria's Secret Direct business in the Appendix (link) TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.30 184 531 347 CY18 1.21 180 494 313 CY15 1.5 400 n/a CY11 1.6 315 n/a CY10 1. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.S. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak.83 1.59 1.66 1. 3.76 1. Beauty segment is one of the fastest growing categories in Victoria's Secret Stores.25 177 510 333 CY16 1.10 72.39 1. which should reflect as an increase in near-term margins.com website (link) Note that Limited Brands reports financial information for fiscal year ended January 31st. Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) CY09 1. resulting in decline in sales for apparel retailers across the board. 2. An increase in contribution of beauty category to Victoria's Secret's sales should result in EBITDA margins increasing.

S. with an approximate CAGR of 30%. more consumers are buying their clothes online. Going forward we expect Bath & Body Works direct revenues to increase and reach $287 million by the end of the Trefis forecast period.com website (link) TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.com website. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak. resulting in decline in sales for apparel retailers across the board.COM + 1 617 394 8763 •17 .Bath & Body Works Direct The most important drivers for the Bath & Body Works Direct business are: • Bath & Body Works Direct Revenues • Bath & Body Works Direct EBITDA Margin — BATH & BODY WORKS DIRECT REVENUES — Bath & Body Works Direct Revenues refers to the annual revenue generated through the sales at bathandbodyworks. macro conditions have slowly been improving and consumer confidence has rebounded in 2012. The figure steadily increased to $195 million in 2012. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U. However. GROWTH IN E-COMMERCE – With increasing internet penetration. An improvement in consumer confidence and a decrease in unemployment should result in an increase in comparable sales for Limited Brands going forward. 2. We believe that online retail will continue to grow in the future with an advancement in technology. Forecast Rationale Supporting: 1. Sources for historical data and explanations can be found on the Trefis. Bath & Body Works Direct Revenues ($ Mil) 250 200 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Bath & Body Works direct revenues increased from $108 million in 2009 to $182 in 2011.

S. – Consumer confidence dropped significantly in 2011 as the outlook for employment growth remained weak. 2. Bath & Body Works Direct EBITDA Margin (%) 35 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Bath & Body Works Direct EBITDA Margin increased from 31. such as Cost of Goods and Services Sold.— BATH & BODY WORKS DIRECT EBITDA MARGIN — Earnings Before Interest. and R&D Expenses. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. resulting in decline in sales for apparel retailers across the board. An improvement in macro-economic conditions should result in lesser promotional activities this year. Sources for historical data and explanations can be found on the Trefis. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenues. Going forward we expect the divisional EBITDA margin to increase and reach 33.com website (link) Note that Limited Brands reports financial information for fiscal year ended January 31st.12% in 2010. However.46%. Taxes. which should reflect as an increase in near-term margins. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures. In 2011 the figure declined slightly to 32. OPERATING LEVERAGE – A faster growth of revenues vs.9% by the end of the Trefis forecast period. SG&A Expenses.5% in 2009 to 33. Total Revenue (Mil $) CY09 CY10 CY11 108 141 182 CY12 194 CY13 206 CY14 CY15 216 225 CY16 CY17 231 236 CY18 CY19 238 241 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. Forecast Rationale Supporting 1.COM + 1 617 394 8763 •18 . such as stock-based compensation expenses. GRADUALLY IMPROVING MACROECONOMIC CONDITIONS IN THE U. macro conditions have slowly been improving and consumer confidence has rebounded in 2012. We adjust EBITDA figures to exclude non-recurring charges and noncash charges. operating expenses should result in an improvement of EBITDA margins going forward. For the purposes of our analysis.

578 million in 2010.7 59. revenue from Limited's international wholesale and franchise business and favorable currency TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.8 65.5 42.25 1.6 80.1 n/a CY12 129 24.2 73. This decrease was partially offset by new Victoria's Secret and Bath & Body Works stores in Canada.3 11.Direct Expense (Mil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) CY09 74.1 n/a CY13 136 37.365 million in 2009 to $1.50 1. International & Other Revenues ($ Bil) 1.4 46.8 CY15 148 34.1 44. The increase was primarily related to new Bath & Body Works stores in Canada.2 41. The figure declined by $9 million to $1.7 44.9 44.0 3.50 0.25 0.3 CY19 159 36.75 0.4 32.8 CY16 153 35.8 CY17 156 36.38 34.00 0.0 n/a CY10 94. the introduction of Victoria’s Secret stores in Canada.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 International & Other Revenues increased from $1.COM + 1 617 394 8763 •19 .8 81.0 CY18 157 36. you can see the detailed P&L for the Bath & Body Works Direct business in the Appendix (link) International & Other The most important drivers for the International & Other business are: • International & Other Revenues • International & Other EBITDA Margin — INTERNATIONAL & OTHER REVENUES — International & Other Revenues refers to annual revenues from Henri Bendel and Limited Brands' international operations including La Senza.1 69.7 n/a CY11 122 17.7 78.1 80.9 In addition.4 76. revenue from Limited's international wholesale and franchise business and an increase in third-party sales at Mast Global.1 38.3 CY14 143 34.569 million primarily due to the divestiture of the third-party apparel sourcing business in the fourth quarter of 2011.

Victoria's Secret Canada stores have increased from 4 in 2009 to 16 in 2012. particularly in Canada. the company initiated a restructuring program designed to resize La Senza's store fleet and relocate its home office from Montreal. 3. accessories. TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. evening wear. If the same trend continues going forward. LA SENZA'S POOR PERFORMANCE – Despite strong performance in Limited's other business segments. the company is also closing under performing La Senza stores in Canada. such as stock-based compensation expenses. Additionally. Ohio. other categories such as swimwear. Limited has increased its Bath & Body Works Canada store count from 31 in 2009 to 71 in 2012. Sources for historical data and explanations can be found on the Trefis. the company plans to open an additional 8 Bath & Body Works stores and 8 Victoria’s Secret stores in Canada. La Senza has comped negatively over the past few quarters. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. EXPANSION INTO NEW PRODUCT CATEGORIES – Victoria's Secret over the past few years has expanded its product offering outside of its core lingerie products. Mitigating: 4. Limited also launched its first Victoria's Secret flagship store in London in the summer of 2012. handbags.fluctuations related to its Canadian businesses. SG&A Expenses. The growth in Victoria's Secret international and Bath & Body Works international should be a major catalyst for divisional revenues going ahead. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenues. luggage and fragrances. Additionally. 2. Canada to Columbus. divisional revenues may decline. Limited closed 22 La Senza stores in 2011 bringing the store count to 230 from 252 in 2010. remains a high priority for Limited Brands.161 million by the end of the Trefis forecast period. Victoria's Secret now also offers shoes. RESTRUCTURING OF LA SENZA – Limited is currently undertaking a significant repositioning of its La Senza business in Canada. Forecast Rationale Supporting: 1. Additionally. During the fourth quarter of 2011. such as Cost of Goods and Services Sold. Going forward we expect the revenues to increase gradually and reach $1. We adjust EBITDA figures to exclude non-recurring charges and noncash charges. We expect this product category expansion to continue in the future as Victoria's Secret leverages its strong brand. GROWTH IN INTERNATIONAL BUSINESS – Expanding its international footprint. Taxes. In 2013. sportswear and loungewear also represent promising new growth categories for Victoria's Secret. Increased product offerings at Victoria's Secret stores should result in an increase in International & Other Revenues. We expect the restructuring efforts to increase La Senza comps and thereby increase the International & Other Revenues going ahead. and R&D Expenses.COM + 1 617 394 8763 •20 . Revenues from this division declined to $982 million in 2012 due to the sale of Mast Global in 2011.com website (link) — INTERNATIONAL & OTHER EBITDA MARGIN — Earnings Before Interest.

58 1.5 5. Going forward we expect the figure to increase to 15. we expect the margin to increase.2 CY16 1.4 186 n/a CY10 1.International & Other EBITDA Margin (%) 15.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 International & Other EBITDA Margin decreased from 13. Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) CY09 1.COM + 1 617 394 8763 •21 .83 CY15 1.5 0.57 1.5% by the end of the Trefis forecast period.65% in 2009 to 12. operating expenses should result in an improvement of EBITDA margins going forward.96 160 176 16.0 7.0 2. The figure improved to 13.91 158 154 -3. INCREASE IN PERCENTAGE CONTRIBUTION OF INTERNATIONAL VICTORIA'S SECRET AND BATH & BODY WORKS REVENUES TO THE DIVISION'S NET REVENUES.4 CY14 1.38 184 195 n/a CY11 1. – Victoria's Secret and Bath & body Works margins are much higher than Mast & La Senza.02 0.36 1.98 163 180 16.14 0.3 CY19 1.16 0.15 0. Sources for historical data and explanations can be found on the Trefis.03% in 2011.06 0.93 149 164 15. Forecast Rationale Supporting 1. The decline was primarily due to an increase in lower margin Mast Global third-party sales and an increased promotional stance to drive La Senza comps.39% in 2010.5 CY18 1.18 78.95 155 171 15.88 170 143 -27. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures. As the percentage contribution of international Victoria's Secret and Bath & Body Works revenues to the division's net revenues increases.97 162 178 16.12 0.7 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.09 0. 2.5 10.85 152 128 n/a CY13 1.98 0.36 245 204 n/a CY12 0.2 CY17 1. OPERATING LEVERAGE – A faster growth of revenues vs.com website (link) Note that Limited Brands reports financial information for fiscal year ended January 31st.0 12. For the purposes of our analysis.

COM + 1 617 394 8763 •22 .In addition. you can see the detailed P&L for the International & Other business in the Appendix (link) TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.

Ford and Gap to name a few. you may also want to see the Trefis coverage for companies such as: Daimler AG Ford Honda General Motors Toyota Tesla Motors See the list of all companies covered by Trefis — 2 Week Free Trial of Trefis Pro — Liked this report? Get access to even more comprehensive reports along with interactive analyses with Trefis Pro Try Trefis Pro for 2 weeks — About Trefis — Trefis. you should think about buying the stock.com. what happens to the value of the company?" Trefis analysts spend weeks evaluating each stock that we cover and utilize commonly used valuation methodologies to determine a Trefis price for each company.Learn More — Related Trefis Coverage — If you're interested in Limited Brands. Google. We move beyond the qualitative notion "if you love the coffee at Dunkin’ Donuts. We present you with not only our synthesized view but also every single step within the valuation process used to determine the Trefis price which you can see via our interactive analysis on Trefis. GE.com was founded by MIT engineers and former Wall Street analysts who realized that most people do not understand the seemingly familiar companies around them including well known companies like Apple. Learn more about the Trefis story Read the Trefis FAQ TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS. The Trefis platform uses extensive data to show in a single snapshot what drives the value of a company's business. Coca Cola." to answer quantitative questions like "If their coffee sales are up 10% next year but doughnut sales are down 5%.COM + 1 617 394 8763 •23 .

77 39.0 26.4 11.2 44.40 9.6 24.27 1.36 5.57 52.0 26.0 49.42 4.49 52.77 1.9 23.7 17.4 11.5 1.34 31.39 5.0 26.2 12.92 26.1 total) Victoria's Secret Direct (% of total) Bath & Body Works Direct (% of total) 17.1 total) Victoria's Secret Direct (% of total) Bath & Body Works Direct (% of total) 17.0 CY16 CY17 12.63 36.0 14.86 CY14 CY15 11.0 26.25 45.36 8.86 9.2 Bath & Body Works US Stores (% of 30.0 16.03 9.56 50.0 28.1 18.1 50.21 3.42 50.3 11.6 9.6 15.7 CY12 10.0 14.86 CY13 11.6 1.8 1.0 2.81 29.10 8.25 50.38 5.4 23.5 0.0 2.60 52.8 23.6 25.22 1.30 10.1 27.1 Bath & Body Works US Stores (% of 26.1 2.14 1.9 26.4 1.8 2.8 13.1 1.7 2.95 2.4 International & Other (% of total) Indirect Expenses (Bil $) Victoria's Secret US Stores (% of total) Bath & Body Works US Stores (% of 14.0 21.36 50.2 1.18 2.1 11.47 16.5 49.84 49.14 8.30 10.22 43.38 5.73 1.9 2.0 12.1 1.0 26. For the purposes of our analysis.8 2.6 25.88 49.0 2.4 23.6 15. Summary P&L for Limited Brands Total Revenues (Bil $) Victoria's Secret US Stores (% of total) CY09 CY10 CY11 8.9 26.86 39.6 25.20 1.20 3.5 41.5 47.38 5.5 2.9 2.3 11.COM + 1 617 394 8763 •24 .69 48.07 9.8 2.8 2.76 15.37 5.4 14.37 5.8 6.6 15.36 5.88 CY18 CY19 12.2 14.2 20.8 15.0 2.4 23.26 13.6 49.8 24.0 14.2 27.4 17.92 10.77 8.50 45.5 25.50 51.79 0.1 27.96 9.5 11.7 International & Other (% of total) Adjusted EBITDA (Bil $) Victoria's Secret US Stores (% of total) Bath & Body Works US Stores (% of 30.63 9.0 26.02 1.22 7.4 23.7 2.38 5.4 17.5 1.0 2.7 International & Other (% of total) Direct Expenses (Bil $) Victoria's Secret US Stores (% of total) 9.36 8.6 25.5 2.2 27.0 26.86 8.21 1.6 1.0 2.40 4.90 49.4 12.87 45.7 15.7 2.7 2.5 2.87 9.31 10.93 9.5 15.1 49.7 2.7 17.5 15.55 52.04 9.02 3.5 16.39 5.28 10.79 2.6 total) Victoria's Secret Direct (% of total) Bath & Body Works Direct (% of total) 7.1 7.6 25.6 26.1 18.27 3.0 49.54 50.8 15.38 5.6 15.10 49.0 2.0 1.5 2.0 16.0 26.1 48.6 12.61 50.4 7.Appendix Summary P&L for Limited Brands Note that Limited Brands reports financial information for fiscal year ended January 31st.28 10.29 50.5 1.6 16.9 15.0 14.8 1.9 49.1 10.8 2.0 14.19 48.92 40.1 26.5 16.38 5.62 52.14 3.95 1.86 8.18 0.0 International & Other (% of total) TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.1 26.42 50.5 2.22 3.77 2.1 2.0 24.07 50.0 15.8 2.7 2.5 23.6 26.4 11.28 10. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.39 43.92 10.0 28.10 8.47 50.25 15.10 8.42 4.5 1.4 25.9 1.20 49.3 1.4 40.40 4.30 10.7 1.4 total) Victoria's Secret Direct (% of total) Bath & Body Works Direct (% of total) 16.61 10.6 16.8 25.

2 23.6 4.85 48.0 19.02 6.2 23.8 782 35.74 0.95 CY16 CY17 6.2 23.48 26.92 CY18 CY19 1.9 29.1 13.2 23.04 3.05 5.33 15.04 5. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.7 778 37.05 6.56 (Bil $) Victoria's Secret US Revenue per Square Foot (K $) Average Square Footage per Victoria's Secret US Store (K) Number of Victoria's Secret US Stores (K) Total Revenues (Bil $) Expenses Direct Expenses (Bil $) Victoria's Secret US Stores EBITDA Margin (%) Indirect Expenses (Mil $) Effective Tax Rate (%) Victoria's Secret US Stores CapEx % of EBITDA (%) Victoria's Secret Direct CapEx % of EBITDA (%) Bath & Body Works US Stores CapEx % of EBITDA (%) 0.5 9.97 6.95 2.96 26.56 CY12 4.03 1.69 25.89 0.5 9.8 848 33.91 Detailed P&L for the Victoria's Secret US Stores business The most important drivers for the Victoria's Secret US Stores business are discussed above.05 6.26 6.67 26.05 5.9 29.8 841 33.03 1.8 29.75 5.0 29.26 CY18 CY19 6.33 15.33 15.43 24. Victoria's Secret US Stores: Detailed P&L CY09 CY10 CY11 Revenues Victoria's Secret US Store Revenues 3.90 0.5 9.33 15.6 4.02 5.33 15.06 23.01 6.COM + 1 617 394 8763 •25 .6 4.95 0.5 2.02 4.98 0.46 0.6 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.71 2.87 47.3 7.66 0.18 3.86 1.6 4.5 9.35 26.13 -0.00 6.8 21.78 1.1 3.68 8.47 2.Summary P&L for Limited Brands continued CY09 CY10 CY11 Free Cash Flow (Bil $) n/a n/a n/a Victoria's Secret US Stores (% of n/a n/a n/a total) Bath & Body Works US Stores (% of n/a total) Victoria's Secret Direct (% of total) Bath & Body Works Direct (% of total) CY12 n/a n/a n/a n/a n/a n/a CY13 1.05 6.45 International & Other (% of total) -2.8 811 33.24 0.50 4.1 114 31.79 20.02 4.21 26. For the purposes of our analysis.4 2.44 47.79 47.33 15.9 546 41.2 23.46 1.02 1.98 CY13 5.46 0.91 5.58 5.8 821 33.74 1.5 9.2 2.9 370 30.9 29.4 814 39.74 1.39 6.50 0.5 2.7 7.6 4.2 2.43 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 20. here is the detailed P&L.4 8.2 29.13 0.46 0.06 5.7 3.03 4.6 19.5 9.4 2.01 1.6 4.13 6.62 3.2 23.82 5.4 CY16 CY17 1.92 1.33 15.4 30.39 6.4 3.8 227 35.87 CY14 CY15 5.57 1.51 CY14 CY15 1.00 6.33 15.99 1.58 26.4 19.4 19.7 12.29 47.02 4.72 26.01 1.05 3.33 4.05 6.99 1.38 1.2 23.7 47.3 19.82 1.71 48.38 0. Note that Limited Brands reports financial information for fiscal year ended January 31st.2 23.

63 1.5 2.35 10.8 386 39.06 0.26 28.39 1.12 2.7 85.3 CY14 CY15 19.5 184 30. Note that Limited Brands reports financial information for fiscal year ended January 31st.77 1.83 26.29 0.91 0.35 28.7 65.7 65.7 75.3 19.01 CY16 CY17 3.38 1.90 3.54 2.99 1.06 -0.7 12.54 757 5.4 2.71 723 2.28 898 2.07 -0.30 28.56 -0.2 78.81 759 2.5 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.37 Expenses Direct Expenses (Bil $) Bath & Body Works US Stores EBITDA Margin (%) Indirect Expenses (Mil $) Effective Tax Rate (%) Victoria's Secret US Stores CapEx % of EBITDA (%) CY11 2.3 364 33.03 27.49 CY12 2.3 348 35. For the purposes of our analysis.96 1.52 0.71 873 5.70 n/a 3.1 348 37.15 863 2.28 2.14 (%) (%) CY12 19.49 658 2.37 1.5 2.29 1.2 23.53 3.23 -0.44 3.90 790 2.COM + 1 617 394 8763 •26 .54 3.3 373 33.51 1. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.96 27.65 4.10 -0.2 23.3 380 33.14 1.3 CY18 CY19 19.37 Revenues (Bil $) Bath & Body Works US Revenue 587 619 per Square Foot ($) Average Square Footage per Bath 2.71 CY13 2.12 4.15 CY18 CY19 3.5 2.25 -0.60 815 5.2 23.2 23.9 31.3 361 33.4 1.3 -0.22 28.3 19. Bath & Body Works US Stores: Detailed P&L CY09 CY10 Revenues Bath & Body Works US Store 2.16 28.59 2.61 US Stores (K) Total Revenues (Bil $) 2.7 65.09 3.21 880 2.7 1.7 65.08 -0.42 609 -0.2 CapEx % of EBITDA (%) International & Other CapEx % 39.57 1.40 1.01 821 2.14 n/a n/a Detailed P&L for the Bath & Body Works US Stores business The most important drivers for the Bath & Body Works US Stores business are discussed above.09 28.5 2.29 n/a 4.3 19.71 1.37 1.5 253 41.57 2.4 36.53 3.2 100 of EBITDA (%) Increase in NWC % of Revenues -2.06 8.75 26.19 0. here is the detailed P&L.70 0.64 833 5.37 1.3 2.7 7.53 3.37 2.07 -0.38 1.2 23.09 846 2.81 CY14 CY15 2.73 885 Increase in NOA % of Revenue Total Expenses (Bil $) Adjusted EBITDA (Bil $) Free Cash Flow (Mil $) -0.37 & Body Works US Store (K) Number of Bath & Body Works 1.Victoria's Secret US Stores: Detailed P&L continued CY09 CY10 CY11 Bath & Body Works Direct 7.21 3.24 1.81 -0.2 23.09 -0.3 CY16 CY17 19.7 65.65 -1.2 100 CY13 19.5 2.38 1.1 13.37 1.80 0.28 2.06 -0.2 23.3 135 35.53 3.74 23.28 1.38 1.2 23.68 858 5.55 2.07 -0.

71 1.6 19.07 22.5 9.3 9.6 19.06 0.5 35.08 -0.44 815 466 2.59 1.1 177 35.50 850 501 2.79 1. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.4 3.85 1.7 85.35 10.56 Victoria's Secret Direct Revenues 1.33 15.83 CY18 CY19 1.33 1.0 180 37.1 183 33.87 1.68 1.3 -0.33 1.6 19.23 -0.76 1.33 1.58 873 511 2.2 23.10 26.76 CY16 CY17 1.25 29.7 65.65 -1.27 29.33 15.12 28.5 9.1 19.5 9.5 9.70 0.7 75.31 29.66 1.50 1.7 65.33 1.2 23.2 23.85 1.2 23.7 19.18 28.1 187 33. For the purposes of our analysis.6 19.4 8.32 29.33 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.2 23.Bath & Body Works US Stores: Detailed P&L continued CY09 CY10 CY11 Victoria's Secret Direct CapEx % 3.2 78.44 2.07 -0.33 2.33 15.79 1.83 1.9 201 39.59 CY13 1.87 1.12 1. Note that Limited Brands reports financial information for fiscal year ended January 31st.3 9. Victoria's Secret Direct: Detailed P&L CY09 CY10 CY11 Revenues Victoria's Secret Direct Revenues (Bil $) CY12 1.18 CapEx % of EBITDA (%) Bath & Body Works Direct 7.66 CY14 CY15 1.76 1.33 15.COM + 1 617 394 8763 •27 .2 100 of EBITDA (%) Increase in NWC % of Revenues -2.2 CapEx % of EBITDA (%) International & Other CapEx % 39.39 1.56 1.3 9.7 72.14 (%) (%) CY12 7.56 1.09 -0.85 1.42 781 395 -0.68 of EBITDA (%) Bath & Body Works US Stores 4.06 -0.02 659 n/a Detailed P&L for the Victoria's Secret Direct business The most important drivers for the Victoria's Secret Direct business are discussed above.7 7.04 3.39 ($ Bil) Total Revenues (Bil $) Expenses Direct Expenses (Bil $) Victoria's Secret Direct EBITDA Margin (%) Indirect Expenses (Mil $) Effective Tax Rate (%) Victoria's Secret US Stores CapEx % of EBITDA (%) Victoria's Secret Direct CapEx % of EBITDA (%) 1.33 15.88 624 n/a 0.7 12.06 -0.1 13.07 -0.7 3.39 1.62 8.3 CY14 CY15 9.07 -0.33 1.83 1.1 184 33.04 1.7 65.19 0.1 188 33.78 532 n/a 1.87 1.2 23.33 1.22 744 n/a 2.2 23.1 102 30.50 1.7 65.12 2.25 -0.66 1.52 0.05 5.65 2.33 1.73 927 547 Increase in NOA % of Revenue Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) -0.5 9.59 1.50 1.6 19.6 19.10 -0.71 1.14 28.6 31.21 29.2 23.71 1.7 65.30 29. here is the detailed P&L.68 908 534 2.33 15.79 1.71 2.6 19.33 1.33 15.33 15.62 890 525 2.3 CY16 CY17 9.81 -0.5 9.06 8.3 7.7 120 41.56 -0.3 CY18 CY19 9.2 100 CY13 8.

33 15.33 4.26 456 n/a 1.2 23.65 -1.5 24.7 85.3 CY14 CY15 15.5 9.39 494 313 1.17 400 n/a Detailed P&L for the Bath & Body Works Direct business The most important drivers for the Bath & Body Works Direct business are discussed above.9 35.6 33.3 15.2 37.05 94.06 -0.12 1.38 31.07 -0.04 5.Victoria's Secret Direct: Detailed P&L continued CY09 CY10 Bath & Body Works US Stores 4.8 33.5 17.6 159 33.08 -0.33 15. For the purposes of our analysis.22 436 n/a -0. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.09 315 n/a 1.33 15.3 33.7 75.35 CapEx % of EBITDA (%) International & Other CapEx % 39.38 478 276 -0.5 9.3 15.81 (%) (%) CY11 8.06 0.7 33.2 23.0 31.6 157 33.3 CY18 CY19 15.9 34.6 148 33.5 3.COM + 1 617 394 8763 •28 .19 0.7 65.1 13.50 537 349 1.1 33.8 34.7 65.65 1.2 of EBITDA (%) Increase in NWC % of Revenues -2. here is the detailed P&L.6 19.4 3.62 122 32.33 15.6 19.2 23.1 19.6 19.42 510 333 1.6 156 33.4 35.23 -0.09 -0.2 23.52 0.2 23.48 531 347 1.5 9.70 0.33 15.33 15.2 23.12 1.2 23.7 30.6 19.06 8.2 100 CY13 15.9 36.10 -0.05 5.2 23.56 0.18 129 33.1 39.7 65.1 136 33.5 9.7 12. Note that Limited Brands reports financial information for fiscal year ended January 31st.06 -0.6 19.7 65.45 521 338 1.2 78.18 10.6 143 33.68 8.51 542 353 Increase in NOA % of Revenue Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) -0.07 -0.9 36.5 9.07 -0.3 15.14 -0.7 7. Bath & Body Works Direct: Detailed P&L CY09 Revenues Bath & Body Works Direct 108 Revenues (Mil $) Bath & Body Works Direct 108 Revenues ($ Mil) Total Revenues (Mil $) 108 Expenses Direct Expenses (Mil $) Bath & Body Works Direct EBITDA Margin (%) Indirect Expenses (Mil $) Effective Tax Rate (%) Victoria's Secret US Stores CapEx % of EBITDA (%) Victoria's Secret Direct CapEx % of EBITDA (%) Bath & Body Works US Stores CapEx % of EBITDA (%) CY10 CY11 141 141 141 182 182 182 CY12 194 194 194 CY13 206 206 206 CY14 CY15 216 216 216 225 225 225 CY16 CY17 231 231 231 236 236 236 CY18 CY19 238 238 238 241 241 241 74.62 CapEx % of EBITDA (%) Bath & Body Works Direct 7.7 3.3 CY16 CY17 15.6 19.71 2.1 11.3 -0.2 100 CY12 15.33 15.6 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.7 37.7 65.3 7.4 8.5 9.9 36.6 153 33.44 1.8 41.6 19.4 35.25 -0.33 15.

7 0.07 -0.71 2.96 0.1 n/a 173 69.7 65.52 0.98 CY13 1.09 1.7 3.2 23. For the purposes of our analysis.33 15.14 1.95 15.16 1.7 0.7 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.5 9.6 19.70 0.33 15. Note that Limited Brands reports financial information for fiscal year ended January 31st.2 CapEx % of EBITDA (%) International & Other CapEx % 39.0 245 30.02 1.33 15.12 1.05 7.08 -0.12 177 73.7 15.7 65.7 65.5 160 33.COM + 1 617 394 8763 •29 .16 1.33 4.33 15.06 8.56 -0.6 19.09 CY16 CY17 1.33 15.68 8.7 44.0 n/a 105 46.0 149 35.23 -0.06 1.1 19.6 19.14 CY18 CY19 1.7 65.02 1.3 -0.1 13.8 183 76.2 23.98 0.5 9.4 32.62 8.5 9.09 1.35 10.7 75. we have treated Limited Brands' fiscal year figures as equivalent to calendar year ended December 31st figures.8 189 78.97 15.2 41.36 1.3 19.14 (%) (%) CY12 19.57 1.2 23.12 1.06 0.2 23.58 1.06 1.06 -0.5 163 33.3 19.6 19.7 65.0 152 41.14 1.2 0.7 n/a 0.91 14.57 1.12 1.06 1.93 15.2 23.18 10.4 34.3 7.35 1.44 140 59.36 $) International & Other Revenues ($ Bil) CY12 0.15 1.2 23.98 0.15 1.81 -0.2 100 CY13 19.33 15.3 155 33.5 162 33.65 154 65.5 9.10 -0.8 192 80.07 -0.5 42.4 8.33 15.06 -0.57 1.04 5.58 1.7 85.58 1.2 78.2 100 of EBITDA (%) Increase in NWC % of Revenues -2.19 0.7 0.3 CY18 CY19 19.36 Total Revenues (Bil $) Expenses Direct Expenses (Bil $) International & Other EBITDA Margin (%) Indirect Expenses (Mil $) Effective Tax Rate (%) Victoria's Secret US Stores CapEx % of EBITDA (%) Victoria's Secret Direct CapEx % of EBITDA (%) Bath & Body Works US Stores CapEx % of EBITDA (%) Bath & Body Works Direct CapEx % of EBITDA (%) 1.9 44.4 3.65 -1.3 19.2 23.16 1.5 158 37.1 38.9 Increase in NOA % of Revenue Total Expenses (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) -0.5 9.Bath & Body Works Direct: Detailed P&L continued CY09 CY10 CY11 Bath & Body Works Direct 7.33 15.6 19.18 13.5 9.02 CY14 CY15 1.38 12.4 184 35.0 194 80.3 CY16 CY17 19. International & Other : Detailed P&L CY09 CY10 CY11 Revenues International & Other Revenues (Bil 1. here is the detailed P&L.3 CY14 CY15 19.07 -0.15 1.6 19.06 1.88 14.36 13.09 -0.98 15.85 13.3 -0.0 170 39.7 78.12 77.1 44.6 19.2 0.7 0.3 196 81.7 12.7 0.1 n/a Detailed P&L for the International & Other business The most important drivers for the International & Other business are discussed above.7 7.2 23.25 -0.4 31.

COM + 1 617 394 8763 •30 .08 -0.3 65.5 1.2 100 100 85.3 CY18 CY19 65.23 -0.4 -3.3 1.57 195 n/a 0.2 TREFIS ANALYSIS for LIMITED BRANDS CONTENT@TREFIS.70 0.26 186 n/a 1.19 0.07 -0.01 128 n/a 1.15 180 16.61 204 n/a -0.06 -0.3 of EBITDA (%) Increase in NWC % of Revenues -2.83 15.06 -0.09 -0.International & Other : Detailed P&L continued CY09 CY10 CY11 CY12 CY13 International & Other CapEx % 39.65 1.06 0.56 (%) Increase in NOA % of Revenue (%) CY14 CY15 75.12 176 16.3 65.07 1.3 -0.52 0.44 1.13 178 16.12 1.14 -0.10 -0.25 -0.07 -0.3 CY16 CY17 65.7 -0.3 65.65 -1.81 -0.07 -0.2 1.12 1.10 171 15.05 Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 143 154 164 -27.2 78.08 1.

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