Chronext is positioning itself to lead the luxury watch market by focusing on certified pre-owned watches, leveraging the rise of e-commerce to tap into a multi-billion euro market. With a strong online presence and a commitment to quality assurance, they aim to attract a younger demographic while facilitating a streamlined buy, sell, and trade-in process for luxury watches. The company's robust growth strategy includes expanding brand partnerships and international reach while maintaining high customer satisfaction and repeat purchases.

1. JUNE 2019

2.  @NOAHConference
 @noah_conference
 @noah-conference
 @NOAHConference
FOLLOW USONSOCIAL

3. CHRONEXT IS CREATING THE DIGITAL PLATFORM FOR THE LUXURY WATCH
INDUSTRY

4. A QUICK OVERVIEW OF THE WATCH MARKET

5. The luxury watch industry is facing change like never before
Source: Bain & Company
Tomorrow:
Omni-channel and rise of CPO
Today
Today:
Offline and mostly new
Mostly offline and mostly new watches
Majority of pre-purchase research already online
Demand mainly from baby boomers and Gen X
Waitlists, limited offline selection and limited quality pre-owned
Online as the dominant channel with a strong click & collect
proposition
Every single luxury watch purchase begins online
Demand mainly from digital-savvy Gen Y and Gen Z
Pre-owned effectively sold alongside new watches
4

6. The luxury watch segment represents a multi-billion euro untapped market
that is only just beginning to shift online
70%
in 2018
~100%
in 2025
20%
2-5%
15%
Clothing Luxury watches
Multi-billion Euro market
2017 2025
Source: Bain & Company, Xerfi Global (1) Penetration for luxury watches & jewellery
Luxury watch segment as a huge addressable market
Unique characteristics fueling market attractiveness
Online penetration(1) expected to triple or more in near term
Online will influence every luxury watch purchase
3x+
Share of
online-influenced
purchases
Arbitrage effects
in supply
Global
customer
High-value
basket
~
€60-80bn
Prevalent shift to online
5

7. Ultra high €5,500 average basket leads to structural unit economics advantages
Small size but high value density leads to the lowest fulfillment cost ratio in digital commerce
Price:
Fulfillment cost ratio:
Fulfillment cost:
€1.99
2.5x
€5.00
€23,450
0.0008x
€18
6

8. OUR GOAL:
BECOMING THE GLOBAL LEADER IN CERTIFIED PRE-OWNED

9. Becoming the global leader in certified pre-owned through the power of online distribution
Huge opportunity for CHRONEXT
Rise of e-commerce facilitates second-hand business
€16-20bn
annual
GMV
Rise of e-commerce radically changes nature of pre-owned
€800bn +
cumulative
inventory size
Pre-owned watches naturally suited for online due to selection
Complementing the new watch portfolio with pre-owned / vintage
Attractive take rates and repeat purchases through trade-ins
Attracting an additional younger customer group
CHRONEXT is establishing a globally uniform standard in quality for
certified pre-owned watches across all brands
8

10. We own all expertise needed to scale Certified Pre-Owned globally
Three highly scalable pillars supporting future growth
9
Pricing of Watches
Authentication and Quality
Assurance
Customer friendly global
distribution platform
Pricing engine for real-time
pricings
Authentication Hub with
integrated watchmaking
workshop
Proven e-commerce platform
reaching 1 million watch-lovers
every month

11. 10
Pricing engine for accurate real-time pricing decisions
Buying
algorithm
Selling
algorithm
Critical to convert
certified pre-owned purchases
Critical to convert
customers in online shop
Pricing Engine

12. Authentication and quality control by in-house experts –
for every watch without exception
11
In-house watch atelier
checks every watch for
authenticity and quality
thoroughly
Team of watchmakers and
administrators certified by
leading brands
6-step authenticity and
quality control with
rigorous industry leading
standards
24-month CHRONEXT
warranty for all new and
certified pre-owned
watches
Certified pre-owned watches are fully authenticated and refurbished
for a superior quality standard in the watch world

13. OUR MISSION:
BECOME THE MOST RELAXED WAY TO BUY, SELL AND OWN A LUXURY WATCH

14. In our view: the most relaxed way to buy, sell and own a luxury watch entails
Widest selection
of unworn, certified
pre-owned
and vintage
Instant availability
with next day shipping
High quality content &
photography
Best-in-class
customer reviews
Personal
customer service
Guaranteed authenticity
& 24-month warranty
16 pick-up lounges across
the globe
Simple selling
and trade-in
13

15. 14
Leading certified pre-owned selection across 42 brands combined
with strict CHRONEXT quality standards
“The watch I purchased was practically new. I could not spot any flaws.
Neither scratches on the glass nor the case. This means that I received
a watch that is like new and only paid 40%. The entire order was processed
very professionally. This was not the last watch
I have purchased here. Many thanks to the entire team”
« « « «
High CHRONEXT
standards make condition
indistinguishable from new
Great value for money and next day availability
Certified pre-owned watches
with 24-month warranty

16. 15
Fast and simple process for private customers to sell and trade-in watches
enables us to become the leader in the €20bn annual pre-owned watch market
Customer places
appraisal request
CHRONEXT makes
purchase and/or
commission offer
Watch picked up and
verified
Pay out or credit for
trade-in
Simple, consumer
oriented process allows anyone
to sell their watch
Risk free for customer compared
to traditional marketplace
models
Attractive take rate
Ability to trade-in old
watches for any watch
sold on CHRONEXT
Ability to trade in watches drives repeat transactions that are mostly not possible offline

17. WHAT WE HAVE ACHIEVED SO FAR

18. CHRONEXT today
141% net revenue CAGR
(2014–2018)
No. 1
market position
€5,500
AOV
€80bn Luxury watch
market opportunity
30,000+ happy
customers to date
Access to €1.2bn
in new watches
15+ brand
partnerships
>10,000 new,
certified pre-owned
and vintage timepieces
17
DACH

19. WHAT`S AHEAD

20. What’s ahead
19
Continue Q1 19 growth of over 100%
Drive brand partnerships further
Accelerate Certified Pre-Owned growth to become the category winner
Expand internationally with focus on new markets
Increase product offering for deep customer lock-in and repeat rates

21. CERTIFIED LUXURY WATCHES