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Chronext - NOAH18 Berlin

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Chronext - NOAH18 Berlin

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Chronext - NOAH18 Berlin

  1. 1. NOAH BERLIN 2018
  2. 2. Three Conferences, One Mission: Empower the European Digital Ecosystem To provide a physical marketplace that facilitates funding of digital European companies at all stages Mission MissionMission To promote Israel - European relationships and enable funding To bring together future-shaping executives and investors active across segments driven by digital revolution Connecting Capital with Entrepreneurs Connecting European Champions and Challengers Connecting Israel’s Startups with Large Corporates and Investors 30-31 October 2018 Old Billingsgate, London 13-14 June 2019 STATION Berlin 9-10 April 2019 Haoman 17, Tel Aviv
  3. 3. 2 THE MOST ADVANCED WAY TO BUY, SELL AND SERVICE LUXURY WATCHES
  4. 4. 3
  5. 5. 4 WHY?
  6. 6. WE MANAGE ALL PRE-SALE & AFTER-SALE SERVICES, PAYMENT, LOGISTICS AND AUTHENTICATION FOR RETAILERS, CONSUMERS AND WATCH BRANDS 5
  7. 7. WE CHECK EVERY WATCH FOR CONDITION AND AUTHENTICITY 6
  8. 8. NO EXCEPTIONS 7
  9. 9. 8 Funds wired 1 Place watch online 2 5 4 5 2 3 Goods Information Money HUB Buys … … and pays Watch picked up Watch checked by watchmaker Watch shipped after verification BuyerResellers CHRONEXT is the interface between sellers and buyers
  10. 10. WHY IS THE MARKET ONLY MOVING ONLINE NOW? 9
  11. 11. The global luxury watch market is transitioning online… New luxury watch market(1) €80bn annually C2B luxury watch market €500bn – €900bn cumulative inventory size €10bn – €20bn yearly GMV High scalability due to low unit numbers and very high basket values Online penetration still low but growing fast: 13% 2011-16 CAGR in online sales(2) Luxury watches command significantly higher margins than other consumer offerings Electronics Clothing Luxury watches(3) Significant upside for online penetration as the online luxury watches market matures 50% 16% 2-6% …with potential to reach 40%+ online penetration 10 Sources: Euromonitor; Management estimates Notes: (1) End-customer annual new watches retail value calculated by applying 35% margin to c.€30bn of sales from luxury watch brands; (2) Luxury watch brands sales; (3) Online penetration estimates for luxury watches vary depending on data experts
  12. 12. 11 Today’s luxury watch market, based on a pre-internet distribution model, creates leakage and undermines pricing as well as brand equity 1 2 The CHRONEXT model is the only way to transform online3 CHRONEXT is the only platform to facilitate watch brand friendly online sales The only way to stop leakage is to have a global omni-channel distribution, that helps offline points get additional sales
  13. 13. 12 Grey market Discount Grey market Premium Brand Distributor The traditional distribution model systematically produces friction and inefficiencies – not through over supply but through misallocation Oversupply Undersupply Authorised retailer Consumer
  14. 14. 13 Key challenges for established players to move online While on the one hand the watch market is perfectly suitable for a global online model… …execution for brands has key challenges Globally standardised product Easy to ship item CHRONEXT IS THE SOLUTION Maintain price control Preserve established distribution channels Ensure quality and brand control 1 2 Customer is already online for product research 3 1 2 3
  15. 15. 14 Brand Via retailer Direct sale Consumer Enabling brands to move online without cannibalising established distribution channels
  16. 16. BENEFITS TO THE BRANDS: 15
  17. 17. 1. UP TO 100% INCREASE IN PROFIT PER WATCH SOLD BY SIMPLIFYING THE SUPPLY-CHAIN AND REVENUE SHARE 16
  18. 18. 2. PRESERVING THE EXISTING OFFLINE RETAIL STRUCTURE BY SUBSIDISING WITH ONLINE SALES 17
  19. 19. 3. DRYING OUT THE GREY MARKET ONLINE AND INCREASING CONTROL OF PRICE AND BRAND EQUITY 18
  20. 20. AND WE ARE DRIVING THIS ALREADY TODAY… 19
  21. 21. 20 CHRONEXT supplier portal CHRONEXT IS THE ONLY COMPLETE DIGITAL MARKETPLACE IN THE LUXURY WATCH MARKET CAPABLE OF CHANGING THE DISTRIBUTION LOGIC Single unified platform to interact with large supplier network Real-time access to suppliers’ inventory Improved profitability Automated sourcing from a network of more than 1,000 suppliers 1 2 3
  22. 22. THE INDUSTRY IS ACKNOWLEDGING THIS 21
  23. 23. I understand what [CHRONEXT] does – luckily” (March 2018) Online retail is the future, and you will not be able to stop it. It is impossible to stop it. Online business is part of the future" (April 2017) “ Jean-Claude Biver, President of LVMH Watch Division; CEO, TAG Heuer 22 The product will stay analogue, but everything else will go digital. I mean everything: communications, advertising, customer service and sales” (March 2018) Georges Kern, CEO of Breitling (ex-Head of Watchmaking at Richemont) “ “
  24. 24. RECENT MILESTONES 23
  25. 25. 24 $34M FUNDING ROUND (2017)
  26. 26. 25 CHRONEXT brought in from the cold as it secures certification for its workshops by Swatch Group" (May 2018) “ FULLY CERTIFIED AUTHENTICATION AND WATCH WORKSHOP
  27. 27. 26 c. €7,200 AVERAGE SHIPPED RETAIL EQUIVALENT ORDER VALUE IN 130 MARKETS
  28. 28. 27 31,000 MODELS AVAILABLE ON THE PLATFORM
  29. 29. 28 197% 2014 – 17A REVENUE CAGR
  30. 30. 29 THANK YOU
  31. 31. 30 NOAH2018 €150(1) Note: (1) Valid for orders with minimum value of €1,500 and until 31 July 2018 Thank you for listening – 150€ off on your next purchase with CHRONEXT:
  32. 32. Selected Completed NOAH Transactions Focus on Leading European Internet companies Covering over 400 companies across 25 online verticals, a broad range of over 500 investors as well as 100+ online-focused corporates Deep understanding of industry dynamics Ability to add value beyond banking advice Facilitates overall process and minimizes management distraction NOAH Advisors is globally well connected and has direct access to virtually all key players in the industry Knowledge of and strong relationships with potential buyers’ key decision makers Proactively finds and unlocks attractive investment opportunities for leading investors Annual NOAH Conference in its 8th year Over 40 years of combined relevant M&A experience Routine execution of M&A and financing transactions with sizes of several billion euros 30 successfully completed NOAH Advisors transactions underline successful transfer of M&A competencies to the Internet sector Entrepreneurial mind-set, focused on growing the business and establishing a reputation for excellence Ability to deliver top results in short time frames Highly success-based compensation structures align interests of clients and NOAH Advisors, and demonstrate conviction to deliver top results Creative deal solutions December 2014 September 2014 October 2014 May 2014 Sale of 100% of for $800m to Exclusive Financial Advisor to Fotolia and the Selling Shareholders Sale of 100% of for €80m to Exclusive Financial Advisor to Trovit and its Shareholders Sale of controlling stake in to Exclusive Financial Advisor to Facile.it and its Shareholders sold 100% of for $228m to a joint venture between Exclusive Financial Advisor to Yad2 and its Shareholders Unique Industry Know-How Unmatched Network and Relationships Strong Investment Banking Competence Full Commitment - We Are Entrepreneurs! EUROPE’S LEADING INTERNET CORPORATE FINANCE BOUTIQUE September 2016October 2016 December 2016 Financial Advisor to Oakley Capital ® Marco Rodzynek Managing Director & Founder marco.rodzynek@noah-advisors.com Jan Brandes Managing Director jan.brandes@noah-advisors.com The NOAH Advisors Core Banking Team Acquisition of a Majority Stake in by from at a valuation of €300m Investment in Exclusive Financial Advisor to KäuferPortal and its Shareholders by 84% Ownership Financial Advisor to Silver Lake Investment in by August 2017 Financial Advisor to EMK Capital Acquisition of a Majority Stake in by at a valuation of $200m Aleksander Skwarczek Analyst aleksander.skwarczek@noah-advisors.com Nikhil Parmar Director nikhil.parmar@noah-advisors.com

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