1. Diamond Creative Test Report May 2016

2. Methodology and Objectives There were two separate samples of 240 millennials (age 18 – 34) – 480 in total. One group was the control and not exposed to the creative, the other was the test group that was exposed to the creative. Among those exposed – reactions to the video were obtained. General attitudes about diamonds were asked of both groups to determine any differences between those exposed and not exposed. Please note: this was only one exposure so moving the needle on key metrics is challenging. This research was conducted in mid-May 2016

3. KEY FINDINGS AMONG THOSE EXPOSED TO VIDEO

4. Key Findings After looking at the creative video…. Nine in ten millennials have some type of emotion evoked. The primary reactions were feeling inspired, hopeful and happy. All of these mentioned by at least a third of those surveyed. Two-thirds feel that the idea and style of the video is very different from most jewelry ads that they have seen. Two-thirds also feel like the video is appealing and relevant to them. The creative comes across as very unique from other jewelry ads according to six in ten. And almost everyone (92%) feel that the ideas in the video are at least somewhat unique. Seven in ten say that they might do at least one of a number of specific actions after seeing this video. The top actions that they would do as a result of this creative, indicated by at least one out of five millennials, is think a little differently about diamond jewelry, share the video with a friend, take a closer look at diamond jewelry the next time they are in a store and/or talk about diamond jewelry with a friend or significant other.

5. Key Findings When asked to talk about the main message of the creative, a number of themes arise, such as real is rare, diamonds are rare, love is rare, creating connections, happiness and enjoying life, finding something real, technology limiting our connections rather than building. “In today’s day and age, we don’t have real face to face connections with other people. But when you find that person who you would rather talk to in person instead of Facebook, spend time outside exploring instead of exploring over the internet, then it’s something real. And real is rare. Diamonds are rare.” “Real relationships are like real diamonds, rare and worth it” “That real love is rare and should be celebrated with something also beautiful and are like a diamond.” “In this day and age, people’s relationships are often limited to digital interactions and carefully selected images on screens. It’s rare to find a relationship that is intimate and personal in real life. Such a relationship is beautiful and long-lasting like a diamond.” “Diamonds are rare and should be celebrated” “That we all want real connection but it doesn’t happen often” “Real moments in life are rare just like diamonds”

6. Key Findings Focusing on what millennials liked best about the ideas in the video – themes such as inspiring, hopeful, that they liked everything about it, that it reminds them of their youth, the emotions and the connections. “I like the genuinely real aspect of his idea”. Diamonds are rare, and when they are considered “real’ diamonds, they are special, just like the rare moments in life are genuine.” “I like how real life situations are incorporated to advertise. It makes jewelry more meaningful in a way, which is amazing from my perspective.” “In a world where everything revolves around technology and the internet, a diamond is a timeless gift” “That they make the ad have an emotional meaning instead of being a superficial diamond flashing commercial like most of the ads out there from fine jewelry like Zane’s and other ones that I can’t remember the name of” “The inspirational viewpoint of it all. It is artistic and makes you think about the real things in life – the real moments, the real experiences, the real and the rare in the world.” ‘The verbiage in the video and especially the visuals used for the video are VERY different than most commercials you see nowadays” “There is a happy ending for everyone” “The fact that it made me think of all the good times I had when I was younger” “It gives people hope” “It’s inspiring”

7. Key Findings 44% say that this ad changes the way they feel about diamond jewelry… specifically: Young people typically do not associate love with diamond jewelry (either for contempt of antiquity or lack of money). It showed that young, fiery love can be like a diamond, and that real diamonds are for real relationships” “Diamond jewelry can connect two people” “I see more value on why getting the jewelry” “It makes me think that is I feel like the idea describes that a diamond is a small price to pay to show the world how I feel” “It sends the message that people shouldn’t have to wonder what is real and what is fake and that the diamond jewelry is genuine and real even if it seems too good to be true” “Makes it more accessible and less scary” “Jewelry is more than just a symbol – it holds emotions and memories too” “I never thought about diamonds evoking an emotional response aside from the initial excitement upon receipt or purchase, but the video suggests that diamonds are capable of triggering emotions repeatedly.” “it makes me feel more empowered than I was before seeing how we went through those phases of life, it’s like a flashback”

8. SIGNIFICANT DIFFERENCES AMONG THOSE EXPOSED TO VIDEO – AGE AND HOUSEHOLD INCOME

9. How Does This Video Make You Feel? Test 18-24 (A)Test 25-34 (B) Test HHI < $75k (E) Test HHI 75k+ (F) Happy 32%37%30%45% E Excited 23%29%30%26% Hopeful 34%33%32%35% Energized 19%24%20%28% Empowered 36% B17%22%19% Inspired 40%41%44%38% Cynical 2%7%6%5% Annoyed 13%8%9% Sad 4%5% Mature 19% B8%9%12% Young 32%26%23%33% None of the above 15%11%13%10% Younger millennials who are exposed to the video versus those not exposed are more likely to feel inspired and mature. q6: How does this video make you feel? BASE: Test 18-24 n=47*; Test 25-34 n=193; Test HHI <$75k n=142; Test HHI $75k+ n=98. *Small sample size (<50) NOTE: A,B & C indicate statically significant at 95% CI; a,b &c indicate statistically significant at 90% CI.

10. q8A: Would you be interested in seeing this video (or another video conveying this idea) again, after viewing it once? BASE: Test 18-24 n=47*; Test 25-34 n=193; Test HHI <$75k n=142; Test HHI $75k+ n=98. *Small sample size (<50) Millennials who are slightly older and those having higher household incomes ($75k+) are most interested in seeing the video again. Interest In Seeing Video Again NOTE: A,B & C indicate statically significant at 95% CI; a,b &c indicate statistically significant at 90% CI.

11. q9: How does the idea and style of this video compare to diamond jewelry advertising you have seen? BASE: Test 18-24 n=47*; Test 25-34 n=193; Test HHI <$75k n=142; Test HHI $75k+ n=98. *Small sample size (<50) Those in the higher income group are more likely to feel that the creative video was very or somewhat different than other jewelry ads. How Video Compares To Other Diamond Jewelry Advertising

12. q10: How much does the video that you just viewed appeal to you? BASE: Test 18-24 n=47*; Test 25-34 n=193; Test HHI <$75k n=142; Test HHI $75k+ n=98. *Small sample size (<50) The older group of millennials are more likely to find the video appealing. Appeal Of Video NOTE: A,B & C indicate statically significant at 95% CI; a,b &c indicate statistically significant at 90% CI.

13. q10A: How relevant was the idea in this video to you? BASE: Test 18-24 n=47*; Test 25-34 n=193; Test HHI <$75k n=142; Test HHI $75k+ n=98. *Small sample size (<50) The video was less relevant to the younger millennials compared to the older millennials. Relevancy Of Video NOTE: A,B & C indicate statically significant at 95% CI; a,b &c indicate statistically significant at 90% CI.

14. SIGNIFICANT DIFFERENCES AMONG THOSE EXPOSED TO VIDEO VERSUS THOSE NOT EXPOSED

15. q12a: How likely are you to purchase diamond jewelry or receive diamond jewelry as a gift within the next 2 years? BASE: Test 18-24 n=47*; Test 25-34 n=193; Control 18-24 n=35*; Control 25-34 n=205; Test HHI <$75k n=142; Test HHI $75k+ n=98; Control HHI <$75k n=140; Control HHI $75k+ n=100 *Small sample size (<50) While the video is more appealing and relevant to the older millennials compared to younger, even the one exposure had a clear impact on the younger millennials when looking at those expose versus those not exposed. A substantially higher percentage of 18 – 24 years olds exposed to the video say they definitely or probably will buy or receive diamond jewelry in the next two years compared to those who weren’t exposed. Likelihood To Purchase Diamond Jewelry Or Receive Diamond Jewelry in the Next 2 Years

16. Agreement With Statement (Top 2 box – Completely/somewhat agree) Test 18-24 (A) Test 25-34 (B) Control 18- 24 (C) Control 25- 34 (D) Test HHI < $75k (E) Test HHI 75k+ (F) Control HHI < $75k (G) Control HHI $75k+ (H) There are moments in life when diamond jewelry best expresses how you feel 60%74%51%77%67%77%74%73% Diamond jewelry is a gift of love 79%78%71%85%71%89%84%82% I would be interested in seeing new, creative, cool diamond jewelry designs 79%73%66%84%72%77%84%77% Diamond jewelry is one form of a sincere expression of feelings 62%77%69%84%68%83% 81% It would mean a lot to me if someone gave me a piece of diamond jewelry 72% 63%79%70%76%80%72% Diamonds are forever 77%79%74%82%75%85%83%79% Diamond jewelry can help capture a moment 70%78%60%81%69%87%79%77% Diamond jewelry is a good way to celebrate a real connection with someone 74%77%49%80%73%82%79%71% When it comes to diamonds, It’s important to be sure you’re getting the real thing – natural diamonds responsibly mined from the earth 85%80%63%84%78%86%81%80% The higher income millennials who were exposed to the video are significantly more likely than the higher income group not exposed to the video to feel that diamond jewelry can capture a moment. Younger millennials in the exposed cell are significantly more likely than younger millennials not exposed to feel that diamonds are a good way to celebrate a real connection with someone and when it comes to diamonds, it’s important to be sure you’re getting the real thing – natural diamonds responsibly mined from the earth. q13a: How much do you agree or disagree with the following statements? NOTE: A,B & C indicate statically significant at 95% CI; a,b &c indicate statistically significant at 90% CI. BASE: Test 18-24 n=47*; Test 25-34 n=193; Control 18-24 n=35*; Control 25-34 n=205; Test HHI <$75k n=142; Test HHI $75k+ n=98; Control HHI <$75k n=140; Control HHI $75k+ n=100 *Small sample size (<50)