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Harry Winston Diamond CorporationRobert Gannicott
Chairman & Chief Executive Officer
Third International Rough Diamond Conference
Tel-Aviv, Israel
February 11, 2008
Industry Strategies
Mining
The Diamond Pipeline
HARRY WINSTON DIAMOND CORPORATION 3
The Public
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
Nature
The Diamond Pipeline
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Mining
Nature
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
HistoricalDe Beers, Russia, Rio Tinto, BHP
The Public
The Diamond Pipeline
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Mining
Nature
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
Mid 20th CenturyDe Beers
The Public
The Diamond Pipeline
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Mining
Nature
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
TodayDe Beers
The Public
The Diamond Pipeline
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Mining
Nature
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
TodayGraff
The Public
The Diamond Pipeline
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Mining
Nature
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
TodayTiffany
The Public
The Diamond Pipeline
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Mining
Nature
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
TodayBlue Nile
The Public
The Diamond Pipeline
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Mining
Nature
RoughTrading Polishing Polished
TradingJewelry
Manufacture Retailing
Today
The Public
Harry Winston Strategy
Why do we do what we do?• We are a diamond company
• We own the bookends of the industry, the strategic parts of the pipeline with the highest “barriers to entry”
• We share information from both ends of the pipeline to make both of our businesses more successful
Our components are top quality• Highest-valued ore bodies
• Most prestigious jewelry brand – America’s only true luxury brand
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Core Strengths
• 40% ownership of Diavik Mine, Northwest Territories, Canada
• 100% ownership of Harry Winston, the world’s leading luxury diamond jewelry brand
• Rough diamond sales through our offices in the world’s leading diamond centers
• Global network of strategically-located retail salons
• Exclusive timepiece wholesale network of more than 150 locations worldwide
• People: experts in rough diamonds, polished diamonds, jewelry manufacture and luxury retail all communicating effectively in one organization
Growth StrategyMine • Rough Diamonds • Fine Jewelry
• Watches • Retail
Growth Strategy - Mine
• Improve plant utilization, reduce damage and increase recovery• Diamond production up 21%1
• Extend lifespan beyond 2020 with expanded reserve and resource base
• Active exploration of existing claim block
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1Represents Harry Winston Diamond Corporation’s 40% share of the Diavik Mine production for calendar 2007
• Maximize price by sorting to customer requirements
• Continue to provide clients with consistent supply of finely-delineated assortments of high-quality diamonds
• Achieve price gains through direct sales to diamond manufacturers in local diamond centers
• Increase supplemental sales (in addition to 10 primary sales) throughout the year in India and Israel
Growth Strategy – Rough Diamonds
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• Create limited, hand-crafted designs with the highest-quality diamonds
• Introduce innovative new collections – Diamant de Neige, Thom Browne while respecting the rich heritage of the brand
• Focus on the growing international high-net worth individual consumer market
Growth Strategy – Fine Jewelry
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Growth Strategy - Timepieces
• Build on strong watch demand worldwide
• Business launched in 1989, still in early growth phase
• Expand both wholesale and retail sales
• Add capacity through new manufacturing facility in Geneva, Switzerland
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• Increase sales in current 18 salons located in luxury capitals of the world
• Target approximately three new salon openings per year and/or refurbishing salons
• Expand up to 40 salons without diluting premium, luxury-brand status
• Extend distribution channel through select partners in limited markets
Growth Strategy - Salons
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Harry Winston Strategy
Why do we do what we do?• We are a diamond company
• We own the bookends of the industry, the strategic parts of the pipeline with the highest “barriers to entry”
• We share information from both ends of the pipeline to make both of our businesses more profitable
Our components are top quality• Highest-valued ore bodies
• Most prestigious jewelry brand – America’s only true luxury brand
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