AGM 3 2010 Harry Winston

Harry Winston Diamond CorporationANNUAL GENERAL MEETING | JUNE 2010

2

Forward-Looking Information

Information in this disclosure that is not current or historical factual information may constitute forward-looking information or

statements within the meaning of applicable securities laws. Forward-looking information is based on certain factors and

assumptions regarding, among other things, mining, production, grade and tonnage, construction and exploration activities at the

Diavik Diamond Mine, world and US economic conditions, the worldwide demand for luxury goods and the level of worldwide

diamond production. Specifically, in making statements regarding expected diamond prices and expectations concerning the

diamond industry and expected sales trends, margins, profitability and market conditions in the retail segment, Harry Winston

Diamond Corporation (“the Company”) has made assumptions regarding, among other things, continuing recovery of world and

US economic conditions, diamond supply and demand for luxury goods. Forward-looking information may relate to management’s

future outlook and anticipated events or results, and may include statements or information regarding plans, timelines and targets

for construction, mining, development, production and exploration activities at the Diavik Diamond Mine, future mining activities

and processing at the Diavik Diamond Mine, projected capital expenditure requirements and the funding thereof, liquidity and

working capital requirements and sources, estimated reserves and resources at, and production from, the Diavik Diamond Mine,

the number and timing of expected rough diamond sales, expected diamond prices and expectations concerning the diamond

industry and the demand for luxury goods, expected cost of sales and gross margin trends in the mining segment, and expected

sales trends and market conditions in the retail segment. Actual results may vary from the forward-looking information. While the

Company considers these assumptions to be reasonable based on the information currently available to it, they may prove to be

incorrect.

Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to

differ materially from what we currently expect. These factors include, among other things, the uncertain nature of mining

activities, including risks associated with underground construction and mining operations, risks associated with joint venture

operations, risks associated with the remote location of and harsh climate at the Diavik Diamond Mine site, risks associated with

regulatory requirements, fluctuations in diamond prices and changes in US and world economic conditions, the risk of fluctuations

in the Canadian/US dollar exchange rate, cash flow and liquidity risks, risks relating to the Company’s salon expansion strategy

and competition in the luxury jewelry segment as well as changes in demand for high end luxury goods. Readers/viewers are

cautioned not to place undue importance on forward-looking information, which speaks only as of the date of this disclosure, and

should not rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not

undertake to update or revise any forward-looking information, except as required by law. Additional information concerning

factors that may cause actual results to materially differ from those in such forward-looking statements is contained in the Harry

Winston Diamond Corporation’s filings with Canadian and United States securities regulatory authorities and can be found at

www.sedar.com and www.sec.gov respectively.

3

Agenda

• Introduction

• Financial Highlights

• Retail Segment

• Mining Segment

• Q & A Session

4

PICE INFOMATION

SUPPLY

LEVERAGE

The Diavik Mine

Cutters/Polishers

Diavik Mine

Supply

Harry Winston: The Unique Proposition

Price?

5

PICE INFOMATION

SUPPLY

LEVERAGE

The Diavik Mine

Other Rough

Diamond SuppliersOther

Jewelers

Cutters/Polishers

Diavik Mine

Supply


Price?

6

PICE INFOMATION

SUPPLY

LEVERAGE

The Diavik Mine Retail Customer

Other Rough


Jewelers

Cutters/Polishers

Diavik Mine

Supply

Harry Winston

Retail Demand

PRICE INFORMATION


7

PICE INFOMATION

SUPPLY

LEVERAGE

The Diavik Mine Retail Customer

Other Rough


Jewelers

Cutters/Polishers

Diavik Mine

Supply

Harry Winston

Retail DemandSUPPLY LEVERAGE

PRICE INFORMATION


8

Indexed on S&P/Goldman Sachs spot metal prices and Harry Winston rough sales indexed to shipment 01/07

Diamond Prices Have Recovered Rapidly

9

Harry Winston rough sales and polished purchases indexed to January 2008

Rough Prices Underpinned by Polished

10

Financial Highlights

11

FY

2009

FY

2010

110

156

Q1

-29%

FY

2009

FY

2010

95

186

Q2

-49%

FY

2009

FY

2010

75

149

Q3

-50%

FY

2009

FY

2010

134

118

Q4

+14%

Turnaround Began in Q4 FY2010

Consolidated Sales

(in millions of US dollars)

12

Q1

FY2010Q1

FY2011

114110

Sales Gross Margin

Q1

FY2010Q1

FY2011

37

26


And Continued in Q1 FY2011

Consolidated

EBITDA1

Q1

FY2010Q1

FY2011

23

8

1 EBITDA is earnings before interest, taxes, depreciation and amortization.

13

Q1

CY 2009Q1

CY 2010

625

714

Carats Recovered1

(in thousands)

Mine Plan Contemplated Lower Production

in Q1 FY2011Mining Segment

Q1

FY 2010Q1

FY 2011

49

58

Sales

1 Represents 40% share of Diavik Production

(in millions of US dollars except carat amounts)

14

Underlying Strength in Rough MarketMining Segment

Q1

FY 2010Q1

FY 2011

98%

-54%

Achieved Price

Q1

FY 2010Q1

FY 2011

18

10

EBITDA1



15

CY

2008

CY

2009

CY

2010

2,226

3,690

FY

2009

FY

2010

FY

2011

188

328

Carats Recovered 1 Sales

Mining Segment Full Year Growth

(in millions of US dollars except carats amounts)

(in thousands)

1 Represents 40% share of the Diavik production

625

FY

2009

FY

2010

FY

2011

45

233

EBITDA 2

+/-3,200


16

Q1

FY2010Q1

FY2011

65

52

Sales Gross Margin

Q1

FY2010Q1

FY2011

34


25

Retail Segment Shows

Considerable Improvement in Q1 FY2011

EBITDA1

Q1

FY2010Q1

FY2011

5

-2


17


FY

2009

FY

2010

FY

2011

225

281

FY

2009

FY

2010

FY

2011

108

133

Sales Gross Margin

Expected to Continue for the Year

Retail

FY

2009

FY

2010

FY

2011

-3

10

EBITDA1


18

Debt

47

-323

January 31, 2009


Cash Net Debt

-276

Debt

90

-198

April 30, 2010

Cash Net Debt

-108

Debt

63

-185

January 31, 2010

Cash Net Debt

-122

Significant Balance Sheet De-leveraging

FYE 2009 FYE 2010 Q1 FY 2011

Consolidated

19

Debt

41

-105

January 31, 2009


Cash Net Debt

-64

Debt

62

-23

April 30, 2010

Cash Net Cash

39

Debt

45

-7

January 31, 2010

Cash Net Cash

38


FYE 2009 FYE 2010 Q1 FY 2011

Mining Segment

20

Debt

6

-218

January 31, 2009


Cash Net Debt

-212

Debt

28

-176

April 30, 2010

Cash Net Debt

-148

Debt

18

-178

January 31, 2010

Cash Net Debt

-160


FYE 2009 FYE 2010 Q1 FY 2011

Retail Segment

21

Retail Segment

22

• Our Mission

• The Harry Winston Brand

• Trends in the Global Luxury Market

• Five Year Growth Plan

• Financial Vision

Retail Segment

23

Retail Segment Mission Statement

Create financial value for Shareholders,

by creating emotional value for Clients and

goodwill from Society,

by being the most exclusive Diamond

Jeweler and Watchmaker in the world.

24

Retail Segment Financial Vision

FY2010 FY20131 FY20161

Last year

Revenue $225M 20% CAGR 15% CAGR

Gross Margin % 48% +/- 51% +/- 52%

Operating Profit % -7% +/- 7% +/- 12%

EBITDA % -1.2% +/- 11% +/- 15%

1 Figures for internal planning and measurement purposes. This is not a forecast of actual results.

25

Brand Mission Statement

Celebrate the meaningful moments

of our clients’ lives

26

• Our Mission





Retail Segment

27

Harry Winston is a Brand…..

for Meaningful Moments

Luxury is about celebrating relationships & giving

Emotion, gratitude, attachment, commitment, love

with Meaningful ProductsAdamas. Diamonds are timeless symbols of power and purity.Best Quality: capture the rarest essence of nature

Best Craftsmanship: express the genius of man, shaping nature and time

by Meaningful PeopleHarry Winston people are:

Knowledgeable, passionate, trustworthy, service oriented

28

Heritage is a Source of Power

Jennifer Jones,

Hollywood, 1944…

Harry Winston invents

Red Carpet dressing

Lesotho, Jonker,

Star of Sierra LeoneMythical Gemstones owned by Harry Winston

29

Innovation is a Source of Power

The youngest legitimateHorology Brand

In one decade, Opus has gained the respect of century-old brands

Pioneer of modern

jewelry craftsmanship

Invention of fluid shapes

and the Cluster Design

30

Philanthropy is a Source of Power

1958, Harry Winston

donates Hope to the World

A chief act of generosity, 2nd

most visited artifact in the world

Court of Jewels- the heart of

American philanthropy

The first socially responsible

jeweler was born

Retail Segment - Market Opportunity

Page 31

• A Jewelry market over $150 billion1, 85% of which is

unbranded

• Brands bring a sense of History, Social Status &

Style Guidelines

• Branding Phenomenon in the 2000’s: Luxury and

Fashion brands are set to conquer the jewelry field

Market Shift to Branded Jewelry

Sources: Company estimates based on multiple sources

32

• Our Mission





Retail Segment

33

Luxury in 2010

Entering a Post-recession Era

ASIA (ex-Japan) - Booming

China 15%, Rest of Asia 10%

THE WEST - Slow Recovery

North America 4%, Europe 3%

JAPAN - Still very Profitable but saturated

Japan -3%

Year 2010 growth forecast

Global luxury market 5-10%

Sources: Bain & Co, April 2010; American Express, 2010

34

Old World, Young WorldThe Global Age Gap Shaping Luxury Markets

Source: CIA World Factbook, 2009

35

Where the Wealthy LiveHigh Net Worth Individual Population by Region

Page 35

Latin America:

0.4M2005-2008: +25%

North

America: 2.7M2005-2008: -7.4%

Europe: 2.6M2005-2008: +7.7%

Asia Pacific

(incl. Japan): 2.4M2005-2008: 0%

Africa: 0.1M2005-2008: 0%

Middle East: 0.4M2005-2008: +25%

Sources: CapGemini Merrill Lynch, 2009

Footnote: HNWI: People with more than 1 million dollars in investable assets excluding primary

residence, collectibles, consumables and consumer durables

36

At the Very TopTop countries and cities with billionaires

CityNumber of

billionaires

New York 60

Moscow 50

London 32

Istanbul 28

Los Angeles 27

Hong Kong 25

Mumbai 20

Dallas 17

San Francisco 14

Tokyo 14

Harry Winston Retail Presence

• In 2010,China has the most

billionaires outside of the US

• Closely followed by Russia,

Germany and India

• HW already has a strong

presence in key cities where

top billionaires reside

Source: Forbes, 2010

37

Luxury Consumers and the Internet

• Luxury consumers declare the Internet is the most useful

source of information for them

• 80% of wealthy consumers use search engines on a daily

basis

• Luxury consumers shop both online and in stores

• On average, Internet users are richer and younger than in-

store shoppers

Sources: Google, 2008; Luxury Institute, 2010

38

• Our Mission





Retail Segment

39

Retail Segment - Strategic Statement

Create a Global and Scalable platform,

to substantially Grow Sales and Profitability

over five years,

through an Integrated Marketing strategy

40

Branding Strategy

Consolidate & Expand our Position

Target Consumer Base Size

Exclusivity

ScaleExpressed through:

Price points

Number of Stores

Consumer Perception

Affordable / Everyday Luxury

Designer Eyewear, Fragrances, Spirits, Silver Jewelry…

Core & Premium Luxury

Generalist watch & jewelry brands

Designer accessories & apparel

Ultra High-End

Bespoke

41

Branding – Blend Tradition & Innovation

• Rejuvenate the delivery of our message to appeal to the new

generation

• Use our name & history to boost our communication exposure

Harry Winston: a Brand of extremes, uncompromising

42

Jewelry Collections

• Strengthen the Iconic High End

− Reinforce our core product segment

− Revive our legacy business, use the “umbrella effect”

• Become a Bridal Destination

− Use our legitimacy in diamonds to gain market share in a

highly competitive market

• Collections: Modern, Creative, Innovative

− Rejuvenate our offer, appeal to a younger clientele

43

Timepieces Collections

• Rationalize, broaden our offer

− More compact collections for more commercial impact &

better product rotation

− Introduce variety in designs to target different market

segments

• Optimize Margins & Assortment

− Use our scalable manufacturing capacity to improve gross

margins

44

Communication

• Amplify, Integrate, Synchronize

Printed Material

Visual Merchandising

Packaging

Exhibition Design

Media Planning

Website / Online

Marketing

AdvertisingPublic

Relations

Harry Winston’sMessage

45

Retail Salon Network

• Salon Profitability Action Plans

− Focused action plans to improve

existing Salon profitability

• Capture Growth Opportunities

− Asia (ex-Japan)

− Japan

− Europe

Retail Network Today

North America

8 Salons

Europe

2 Salons

Asia(ex-Japan)

4 Salons

Japan

5 Salons

46

Projected Retail Network by 2016

Asia (Ex-Japan)

13 Salons North America

9 Salons

Europe

6 SalonsJapan

7 Salons

47

48

Other Channels

• Wholesale

• Room for growth: develop network of authorized watch

retailers

• Partner Salons: Hybrid Distribution Model

• Harry Winston Salons operated by business partners

• Maintain control of Brand image

• Limit company exposure in riskier markets

• Exhibitions & E-commerce

• Extend our reach while minimizing operating costs

49

• Our Mission





Retail Segment

50

Retail Segment Financial Vision

FY2010 FY20131 FY20161

Last year

Revenue $225M 20% CAGR 15% CAGR

Gross Margin % 48% +/- 51% +/- 52%

Operating Profit % -7% +/- 7% +/- 12%

EBITDA % -1.2% +/- 11% +/- 15%

Operated Salons 19 +/- 26 +/- 35

Partner Salons 0 +/- 12 +/- 20

Wholesale Doors 188 250+ 300+

1 Figures for internal planning and measurement purposes. This is not a forecast of actual results.

51

Mining Segment

A21

Measured

Resource

Indicated

Resource

Inferred

Resource

Exploratory

52

Diavik Mine: Reserves and Resources

52

9400 L

9350 L

9300 L

9250 L

9200 L

9150 L

9100 L

9050 L

9000 L

8950 L

8900 L

8850 L

8800 L

8750 L

8700 L

53

Exceptional grade makes Diavik

one of the highest value tonne mines

Source: Based on 2008 data from Company Estimates, Annual Reports, BMO Diamond Research (Jan 2009)

Rock Value US$/Tonne for Major KimberlitesRelative to 2008 Production Value

Dia

vik

$8

00

m

Mir $

54

6m

Vic

tor

$29

9m

Sna

p L

ake

$14

8m

Eka

ti $

53

5m

Jw

ane

ng

$1,7

09

m

Ve

ne

tia $

63

8m

Nyu

rba

$59

6m

Aik

hal $

37

2m

Ud

ach

ny $

79

6m

Letlh

aka

ne

$24

0m

Ora

pa

$1,0

00

m

Ca

toca

$45

1m

Lets

eng

$21

5m

Arg

yle

$21

1m

Fin

sch $

19

7m

Elle

ndale

$109m

$8,000m $7,000m $6,000m $5,000m $4,000m $3,000m $2,000m $1,000m $0m

$0

$50

$100

$150

$200

$250

$300

$350

Rock Value

per tonne in

millions of

US dollars

Production value in millions of US dollars

54

Source: De Beers estimates 2008

Other (fragmented) includes: Artisanal & Illicit (8%) and Juniors (19%)

Rio Tinto

6% BHP

4%

Harry

Winston

4%

De Beers

40%

Total US$14.8 billion

Gem diamond production (value)

World Diamond Production

Other

(highly fragmented)

27%

Alrosa

19%

55

Underground Mining Methods

56


57


Sublevel Caving

58

Diamonds

100%

Jewellery

Source: De Beers Group analysis; World Gold Council Gold Demand Trends, February 2009; Angloplat 2008 Annual Report, page 20

80%

60%

40%

20%

0%

Gold Platinum

Industrial and Autocatalyst Investment

99%

1%

58%

12%

29%

6%

73%

23%

Diamonds are Different

59

Diamond Exploration Challenge

Gold Mines

Source: De Beers exploration data (diamonds) and Metals Economic Group (gold mines)

5,000

850

50

5,000

1,500

1,000

500

0

Diamond exploration results from the last 140 years

Kimberlites

sampled

Diamond-

iferous

Economic

1,025

60

Diavik Exploration Potential

61

Source: De Beers

World Supply Reducing

No new material production is expected to come

online in the near future

62

Diavik Underground is a Major Development

Project

Source: Based on Janse/Read: Diamonds (15 March 2009), Company Estimates, Public Company data

Rock Value US$/Tonne for Advanced ProjectsRelative to 2008 InSitu Value Estimates

Rock value per

tonne in millions

of US dollars

Value estimates in millions of US dollars

63

Diavik and

Harry Winston

premium assets

supporting each other

AGM 3 2010 Harry Winston

Documents

diavik minepice

rough diamond

diavik diamond

diavik mine

harry winston

expected diamond

underground

global luxury