- Tom Ford Richemont Ltd was formed as a joint venture between luxury brand Tom Ford and luxury goods company Richemont to enter the luxury watch market. - Richemont brings manufacturing and distribution expertise while Tom Ford contributes fresh design and brand appeal. - The plan is to launch lifestyle and elegant watch lines targeting the accessible luxury segment and evaluate expanding to higher price points and women's lines over time.

6. 5 Forces

9. Investment Plan Company Structure 100 % owned by Richemont. 20 years initial agreement 5 member Board of Directors 1 representative from Tom Ford company HO costs sharing from 3 rd year No dividends for Richemont in the initial years 10% of Revenue >> Tom Ford ’s fees No major debt financing Launch into Accessible luxury segment Evaluate moving into luxury segment @ Year 3 Launch Men ’s range of watches Introduce women’s range in the 3 rd yr of operation Year 3 Year 2 Year 5 Year 4 Year 1 25 M

13. 1.Skeleton dial sapphire crystal case back with automatic mechanical movement 2. Basic silver titanium color 3. Strap – spido textile material Collection plan -Lifestyle-

14. Collection plan -Elegant- Both elegant and lifestyle lines are starting lines The portfolio will be diversified with time and extended into ladies watches after year three

15. Collection plan -Elegant- Both elegant and sports lines are starting lines; The portfolio will be diversified with time and extended into ladies watches after year three

17. Market Segmentation

18. Marketing

19. Departmental Stores DOS Distribution Highlights

20. Distribution Highlights Multi-Brand Shops Total Shops 167 263 327 383 428

21. Distribution Highlights Revenue per Store by Region % Revenue vs. % of Shops by Region - 2017

22. P&L Realistic P&L Statement 2013 2014 2015 2016 2017 Comments for 2013 Comments for 2014 Comments for 2015 Comments for 2016 Comments for 2017 Revenues 119 216 309 409 498 COGS 33% of Rev 39 32% of Rev 69 31% of Rev 96 30% of Rev 123 30% of Rev 149 Gross Profit 80 147 213 286 348 Selling and Distribution Expenses 23% of Rev 27 23% of Rev 50 22% of Rev 68 21% of Rev 86 20% of Rev 100 Communication Expenses 8% of Rev 10 8% of Rev 17 7.5% of Rev 23 7.5% of Rev 31 7% of Rev 35 Administrative Expenses 9% of Rev 11 9% of Rev 19 8% of Rev 25 8% of Rev 33 7% of Rev 35 Other Operating (expense ) / Income 3 5 7 9 13 Operating Profit 29 56 90 128 166 Tom Ford % Payout 10% of Rev 12 10% of Rev 22 10% of Rev 31 10% of Rev 41 10% of Rev 50 Profit before Taxation 17 34 59 87 116 HO Costs Fixed 25 Fixed 25 Fixed 25 Taxes 13% of Net Profits 2 13% of Net Profits 4 13% of Net Profits 4 13% of Net Profits 8 13% of Net Profits 12 Net Profit 15 30 30 54 79 Dividends 0 0 0 0 0 Transfer to Balance Sheet 15 30 0 30 0 54 0 79

23. Distribution Highlights Scenario 2 Multi-Brand Shops by Region - 2017 Revenue by Region - 2017 Realistic Pessimistic Realistic Pessimistic -31 -18 -11 -53 -98 -9 -42 -22

24. P&L Pessimistic P&L Statement 2013 2014 2015 2016 2017 Comments for 2013 Comments for 2014 Comments for 2015 Comments for 2016 Comments for 2017 Revenues 78 141 202 268 326 COGS 33% of Rev 26 32% of Rev 45 31% of Rev 63 30% of Rev 80 30% of Rev 98 Gross Profit 52 96 139 187 228 Selling and Distribution Expenses 23% of Rev 18 23% of Rev 32 22% of Rev 44 21% of Rev 56 20% of Rev 65 Communication Expenses 8% of Rev 6 8% of Rev 11 7.5% of Rev 15 7.5% of Rev 20 7% of Rev 23 Administrative Expenses 9% of Rev 7 9% of Rev 13 8% of Rev 16 8% of Rev 21 7% of Rev 23 Other Operating (expense ) / Income 3 5 7 9 13 Operating Profit 18 35 57 81 104 Tom Ford % Payout 10% of Rev 8 10% of Rev 14 10% of Rev 20 10% of Rev 27 10% of Rev 33 Profit before Taxation 10 20 36 54 72 HO Costs Fixed 25 Fixed 25 Fixed 25 Taxes 13% of Net Profits 1 13% of Net Profits 3 13% of Net Profits 1 13% of Net Profits 4 13% of Net Profits 6 Net Profit 9 18 10 25 41 Dividends 0 0 0 0 0 Transfer to Balance Sheet 9 18 0 10 0 25 0 41

25. Conclusion

26. Appendix TFR LTD - Statement of Cash Flows - 5Yr Projection 2013 2014 2015 2016 2017 Cash Flow from Operating Activities Profit before tax 17 34 59 87 116 Depreciation 1.0 1.0 0.7 0.3 0.0 Change in Working Capital 7 0 -1 2 8 HO Expenses 0 0 25 25 25 Taxation Paid 2 4 4 8 12 Net Cash from Operating Activities 9 30 31 52 71 Cash Flow from Investing Activities Property, Plant & Equipment -3 -3 -2 -1 0 Other Investing Activities 0 0 0 0 0 Net Cash (used) / (generated) from Investing activities -3 -3 -2 -1 0 Cash Flow from Financing Activities Proceeds from borrowings 0 0 0 0 0 Repayment of borrowings 0 0 0 0 0 Shares Issued 25 0 0 0 0 Dividends paid 0 0 0 0 0 Payment for treasury shares 0 0 0 0 0 Capital element of finance lease payments 0 0 0 0 0 Net Cash used in Financing activities 25 0 0 0 0 Net Change in Cash & Cash equivalents 31 27 29 51 71 Cash & Cash equivalents at beginning of period 0 31 58 87 138 Exchange gains on Cash & Cash equivalents 0 0 0 0 0 Cash & Cash equivalents at end of period 31 58 87 138 210

27. Appendix TFR LTD - Statement of Cash Flows - 5Yr Projection 2013 2014 2015 2016 2017 Cash Flow from Operating Activities Profit before tax 10 20 36 54 72 Depreciation 1.0 1.0 0.7 0.3 0.0 Change in Working Capital 9 2 0 3 9 HO Expenses 0 0 25 25 25 Taxation Paid 1 3 1 4 6 Net Cash from Operating Activities 1 17 10 22 32 Cash Flow from Investing Activities Property, Plant & Equipment -3 -3 -2 -1 0 Other Investing Activities 0 0 0 0 0 Net Cash (used) / (generated) from Investing activities -3 -3 -2 -1 0 Cash Flow from Financing Activities Proceeds from borrowings 0 0 0 0 0 Repayment of borrowings 0 0 0 0 0 Shares Issued 25 0 0 0 0 Dividends paid 0 0 0 0 0 Payment for treasury shares 0 0 0 0 0 Capital element of finance lease payments 0 0 0 0 0 Net Cash used in Financing activities 25 0 0 0 0 Net Change in Cash & Cash equivalents 23 14 8 21 32 Cash & Cash equivalents at beginning of period 0 23 37 46 67 Exchange gains on Cash & Cash equivalents 0 0 0 0 0 Cash & Cash equivalents at end of period 23 37 46 67 98

28. Thank You!