Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Trends in the diamond industry - Macquarie Diamond Day

1,282 views

Published on

Bruce Cleaver, Executive Head of Strategy and Corporate Affairs, at the Macquarie Diamond Day.

  • Be the first to comment

Trends in the diamond industry - Macquarie Diamond Day

  1. 1. TRENDS IN THE DIAMOND INDUSTRY Bruce Cleaver, Executive Head of Strategy and Corporate Affairs DE BEERS GROUP or COMVANVES
  2. 2. GLOBAL DIAMOND JEWELLERY SALES GREW 3% TO RECORD HIGH OF $81 BILLION IN 2014 GLOBAL DIAMOND JEWELLERY VALUE GROWTH USD billion (nominal) $90 $80 $70 $60 $50 $40 $30 $20 $ 1 0 0 HF? 2009 2010 DIAMOND JEWELLERY VALUE GROWTH BY MARKET IN LOCAL CURRENCY (PREL| M.) SIG S30 S20 S10 Sn US China I l! IVIII/ UN Innuyuulll II’, II£ / II/ Ium rIImumu/ I so 35 37 Y 62 van 59 m m *1 Y0 am 2aI4I> 2oI: I 2oI4I> up 7% on 201:; up 0%, on 201:; 79 81 I 2011 2012 2013 201411’ India I. /I lullmu Im, .I. ..mII _ , ,., ,, ,,, ,,, , 2240 2” _ 727207 not use vsoo 607 5” H20 won (60 V20!) I0 V0 2018 2014? 2013 2oHI> Up 21% on 2013 1'1) 2% on 2013 mmmmwm e—ra: £i-‘.21 201$ l'p 2% on 2013 2014? III. » II. » Heel’: (xrollp un <: .m. p.. ..II»~
  3. 3. SUPPLY/ DEMAND CURVE BASED ON MCKINSEY FORECASTS (lntlwc 111151» 10/) in 2014) 180 C 160 140 120 100 80 60 Smilu‘: T l)eIIIaIIclI‘0I‘ccasI j Pm(1I1cIinII flII'ec'. IsI 2014F 20l5F 20l6F 201717 2()l8F 201917 2020F 2021F 2022F 2()2?>F 202417 MI 1'iII~I- (; In1I; II 1II~IiuIII-: .1< I'iII~'I-'. ’~ (luIIIp; IIIv. 'I’m/ nu/ /Ivm rm I/ u»/ Immuml / HI/ lI/ I '. SI-pit-IIIIII-I ‘_'H| »I II. .- II. » Iierw (. mup nl <: .m. p;. ..II»~
  4. 4. THE US AND CHINA WILL REMAIN THE KEY MARKETS FOR DIAMOND CONSUMPTION FOR THE FORESEEABLE FUTURE ROW 13% ROW 20% EU 8% USA 40% Gulf 8% LISA 42% Gulf 7% _ japan 4% japaii 9% India 9% India 8% CIIIIIEI 16% Greater CI1iI1:I' 19% 1.(: I-I-III: -I-(IIIIIIIIiIIr1IIIl<-~(21IiII; I. Ilrmg I<m. ;; and Milrilll sm. m: 1): ‘ I5('L'I'« Immp Sllalrgv m. ;.I_~I- IIII» In» Beers umup III (: ()III[)2II| I(‘<
  5. 5. PROJECTED GROWTH OF MIDDLE CLASSES IN EMERGING MARKETS SHOULD SEE CONTINUED GLOBAL DEMAND GROWTH FOR DIAMONDS PROJECTED GROWTH OF MIDDLE CLASSES IN NUMBER OF PROJECTED ADDITIONAL MIDDLE CLASS EMERGING MARKETS IIOUSEHDLDSIN ZOIBF VS.2OI3A (Perrent change 2013/1—2018F) (Millions) Brazil 27% 27 Russia 49% China 129% Turkey 33% 13 10 11 South Africa 69% 6 , Mexico 27% I 3 Y . . Indonesia 164% Ilia/ I1 Russi I Tlllk(. - "" f: ;.%: :': |~ Mexico - -v India 72% Imloiiesia Smirr r: Uxfnril lLroIIoIIIics 'I‘IIe1)e Beers (; mIIp 0I'( : .IIIIpIIIIIes India China
  6. 6. DOWNSTREAM TRENDS MILLENNIALS ONLINE BRANDS CONFIDENCE ADVERTISING
  7. 7. MIDSTREAM TRENDS Financing challenges as banks require greater transparency and financial strength Pressure on rough price due to higher production costs V M » MIDSTREAM « 2 Pressure on polished price as retailers look to maintain price points III. - II. » I‘I(’| ‘I'¥ (IIOIII) III <. .IIII. I;IIII. »~ Changing industry stockholding patterns pushes burden of inventory to cutting centres !
  8. 8. TRENDS IN THE DIAMOND INDUSTRY Bruce Cleaver, Executive Head of Strategy and Corporate Affairs DE BEERS GROUP or COMPANIES

×