harry winston Pdf

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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

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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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