DENT BRAND EVALUATION July 2012.

DENT BRAND EVALUATION July 2012

Introduction Scope and structure
Dent has engaged FTI to provide an indicative valuation of the brand (and or the company). The shareholders of Dent are considering a possible sale of the company, and in particular, the brand. Dent has engaged FTI Consulting LLP (“FTI”) to: Develop a framework for analysing and assessing the potential value of the Dent brand. provide an indicative valuation of the brand (and or the company). We understand that the shareholders of Dent are indifferent between either a sale of the brand or the company. When referring to the Dent brand we mean all of the relevant intellectual property including trade marks, design rights, copyright, know-how and archival material. This indicative valuation has been carried out with a limited amount of data, reflecting the state of development of different parts of the Dent business. This report may be made available to Dent, its subsidiaries, its shareholders and its advisers. It has been prepared for use in this matter. In all other respects, this report is confidential. It should not be used, reproduced or circulated for any other purpose, in whole or in part, without the prior written consent of FTI. This report is structured as follows: Dent business and brand Our approach Valuation of the existing project business Valuation of the retail watches opportunity Potential purchasers Dent brand evaluation | July 2012

DENT BUSINESS AND BRAND

Dent business and brand Summary of the business and recent history
Dent is a British timepiece company with a unique and rich history. It was re-launched in 2007 after a period of almost forty years, and now offers watch, architectural clock and carriage clock propositions. Dent traces its history back to Edward John Dent, a famous English watchmaker and the year 1814. The brand has a very rich British history, most notably being awarded the contract to design and built the clock for Big Ben. It has also been awarded various royal warrants; and Greenwich Mean Time and the six BBC ‘pips’ were synchronised to a Dent clock. The brand continued until 1970 when production was stopped. It was re-launched by a team of investors in 2007, who have sought to build on the brand’s deep history. Dent offers three propositions – watches, which operate in the retail environment, and architectural and carriage clocks which currently operate on a “project” basis. Initially, sales were concentrated in watches, with Dent selling 13 watches in 2010, contributing 80% of revenue. Since then, however, sales have shifted towards the Middle East, with Dent winning a small number of lucrative contracts to design and supply architectural and, in particular, carriage clocks. These are high margin contracts, which has led to strong financial results for Dent in 2011 and 2012 YTD. Dent brand evaluation | July 2012

Dent business and brand Key brand attributes
Dent is a well-established and well-known British heritage brand. It has a number of key brand attributes. Rich heritage British firm established in 1814 by Edward J. Dent Numerous royal warrants held including from Queen Victoria and Queen Elizabeth II Former customers include Winston Churchill, Charles Darwin and David Livingstone Edward J. Dent patented the first keyless winding mechanism and invented the fluid compass Iconic clocks Maker of Big Ben Maker of the Greenwich Observatory clock which keeps Greenwich Mean Time (GMT) Many more iconic clocks and observatories around the world made by Dent Recent prestigious projects Dent produced the largest public clock at St Pancras Station, London The new Cunard vessel Queen Victoria Qatar Sand Clock Wide product range Architectural clocks Kinetic art Mantel clocks Wristwatches Quality Dent watches (barring those in platinum) contain on average 5½ ounces of 18k gold Made to order and limited collections Quality craftsmanship and made with precious materials Dent brand evaluation | July 2012

Dent business and brand Financials
Dent’s financial result has improved considerably since 2010, driven by large volumes of high-margin carriage clock sales. Dent historical financials and 2012 forecast Revenue by segment CHF million 2010 2011 2012F Average Revenue 0.34 2.19 3.04 1.86 Direct costs (0.23) (0.59) (1.11) (0.64) Gross margin 0.12 1.59 1.94 1.22 Gross margin % 33.8% 72.9% 63.6% 65.5% Operating Expenses (0.18) (0.54) (0.71) (0.48) EBITDA (0.68) 1.05 0.74 EBITDA % (20.1%) 48.1% 40.2% 39.6% Depreciation (0.31) (0.03) (0.02) (0.12) EBIT (0.38) 1.02 1.20 0.62 EBIT% (111.1%) 46.6% 33.1% Profit from selling precious metals 0.13 0.44 Financial income / expenses 0.16 0.48 Total financial result (0.27) 1.18 0.71 CHF million 2010 2011 2012 Architectural clocks 0.07 0.01 0.27 Mantel clocks 2.17 1.00 Watches Total revenue 0.34 2.19 1.27 Our key observations Dent significantly increased revenue from 2010 to 2011, and based on its five month “run-rate” for 2012 is on pace to increase revenue further. This increase in revenue has been driven by sales of carriage clocks, which have contributed the majority of both 2011 and 2012 revenue. Whilst watch sales contributed the majority of 2010 sales revenue, no watches have been sold in subsequent years. [Iain – can you confirm?] This shift towards carriage clocks has increased Dent’s gross margin, as carriage clocks provide a significantly higher gross margin than watches and architectural clocks. The increased revenue and gross margin has led to a significant improvement in Dent’s financial result from 2010, with 2010 losses being followed by a £1.18m of profit in 2011 and a forecasted £1.2m profit in (based on the five month “run rate”). Dent brand evaluation | July 2012

Dent business and brand New business pipeline
Dent Management has advised it has four large contracts in its business pipeline as of July 2012, with potential revenue exceeding £66m. Potential revenue Expected gross margin Probability (%) Big Ben 2 £42.5 million 34% [to discuss] 20,000 watches at $1,500 £19.4 million 32% 30 Mecca clocks £2.0 million 73% 3,000 prayer clocks at $1,500 £2.9 million [To discuss probability of success and extent to which pipeline is indicative of steady state demand] Dent brand evaluation | July 2012

Dent business and brand Potential projects – status unknown
We have reviewed the information provided by Dent Management and have identified the following projects which may also be in Dent’s business pipeline as of July 2012. Country Date Description Status Qatar Early 2010 Doha clock – Smith of Derby and Dent proposals to “supply, deliver and supervise installation of clock feature” (various prices £149,562 and £194,388 Dent and £144,488 Smith) [to discuss] Nigeria February 2010 Unity clock tower for Abuja (£750,000, £800,000 or £950,000 options?) Oman March 2010 Oman Central Bank Tower Clock ($68,832) with necessary additional products: 10 mantle clocks at $14,000, 25 wristwatches at $6000 and 25 wristwatches at $25,000 July 2012 10 year exclusive co-operation arrangement with ABA Qatar for all architectural installations in Qatar (including World Cup Sundial?) [Other potential projects] [Masdar time trail 12 pieces; Jabal Omar and Abraj Al-Bait SA; replica Royal Clock Tower clocks; Paris Orrery; Sungai Petani, Malaysia; Brown Thomas, Dublin] [To discuss - the objective is to develop a comprehensive pipeline analysis.] Dent brand evaluation | July 2012

Dent business and brand Role of the brand in each segment
Dent’s branding applies in a different manner to its three propositions, with each able to use the brand to reach a strong position in their respective markets. Architectural clocks Mantel clocks Watches Value proposition Business with clear brand differentiator. Business with clear brand differentiator. Underexploited luxury British brand. Brand enabler “From the makers of Big Ben”. “From the makers of Big Ben” British heritage. British heritage. Brand facets Appeal to autocratic cultures – trophy / marquee projects. Unique platform for brand extension (in certain environments) – mantel clocks and watches. Brand promotion for other sales channels. Appeal to autocratic cultures – Middle East, Asia, Africa. Formal gift / memento. Dent history ideal conversion piece. Unique archive of branding and marketing material. Multi-faceted brand position relative to other heritage (British) watch brands – additive to existing portfolio / distinct on standalone basis. Brand proposition scalable – requires marketing/retail capabilities. Luxury market brand positioning. Low risk relative to build option. Dent brand evaluation | July 2012

Dent business and brand Brand analysis
Dent’s unique and rich brand provides benefits for all three of propositions. Brand benefits Architectural clocks Increased likelihood of being invited to tender (reduced costs/ risks). Reduced price sensitivity. Possibility of marquee projects (Big Ben/ St. Pancras associations). Strong sell through (in certain cultures / situations). Mantel clocks Watches Value proposition based on authentic / highly differentiable brand asset – low cash flow risk means of developing a luxury British watch brand. Sell through possibilities (in certain cultures / situations). Architectural clocks Mantel clocks Watches Increased quantity  Increased price Cost savings (marketing)  Risk reduction Optionality / brand extension - Principal benefits Dent brand evaluation | July 2012

Dent business and brand Comparison against other luxury British watch brands
The unique and rich history of Dent provides a multi-faceted brand position relative to other comparable and competing luxury British watch brands. Brand characteristics Dent Bremont Graham London Arnold & Sons Luxury ü Mechanical Movements British brand Longevity / Time Stamp û Rediscovered brand (“hidden gem") British Landmarks Military history Royalty / Monarchy Horology Historical Figures Explorers Radio Navy Aviation / RAF Astronomy / Science Celebrity Classic Look? Price range estimate £10k - £25k £3k - £20k+ £3k - £10k / higher £3k - £10k / higher? Dent brand evaluation | July 2012

OUR APPROACH

Our approach Approach to the valuation
Our approach involves considering the value of the existing project business using a standard valuation approach uplifted to reflect the value of the brand and considering the value of the retail watches opportunity separately. Standard business Brand differentiation Marquee projects enabled by brand Follow-on sales (clocks, watches) + Earnings multiple Premium to multiple NPV of probability weighted cash flows + Value of existing project business Value of Dent Relief from royalty approach Value of watches opportunity Avoided brand costs approach Dent brand evaluation | July 2012

Valuation: existing Project business

Valuation: Existing project business Sum-of-the-parts analysis
Branded business has potential to be considerably more valuable than “conventional” architectural clock business. Critical question is whether the project business is developed / sustainable and therefore can support a business valuation (earnings multiple-based valuation). Historical and current pipeline analysis suggests not? [to discuss] Ability to replicate beyond Middle Eastern environments. [to discuss] Brand has considerable potential to support premium valuation based on: Marquee projects (sold primarily by reference to Big Ben association) Follow-on sales based on relationships established via projects (sold by reference to broader Dent brand history). Requires reliable pipeline analysis [to discuss]. Dent brand evaluation | July 2012

Valuation: WATCHES OPPORTUNITY

Valuation: Watches opportunity Overview
The retail watches opportunity is characterised by both the considerable potential of the brand, but also the fact that it is currently underdeveloped and largely untested. Retail brand is positioned in luxury segment, but currently: underdeveloped (retail brand relaunched in 2007, but very limited sales). Brand potential is considerable Luxury brand positioning. Sustainable differentiation given brand history. Extensive archive of authentic / unique marketing material. Brand potential is, however, largely untested. Dent brand evaluation | July 2012

Valuation: Watches opportunity Recent transactions involving watch companies
There is significant transaction activity involving watch companies in the last 10 years. Target Location Year Buyer Price (local currency) (£ equivalent) Transaction multiple Maison Favre Leuba, S.A.1 Switzerland 2011 Titan Industries Limited < €2.0m £1.7m 1.0x Net asset value Eterna AG Uhrenfabrik China Haidian Holdings Ltd. CHF 22.9m £17.1m 1.8x Revenue Montres Chouriet SA 2009 Fiyta (Hong Kong) Limited HKD 9.0m £0.7m Zhuhai Rossini Watch Industry Ltd. China 2008 HKD 544.0m2 £37.8m2 10.5x EBITDA Ladoire SA Aurinvest CHF 4.1m3 £2.1m3 Fabrique d'Horlogerie Minerva SA4 2006 Compagnie Financiere Richemont SA €7m £4.7m Tick Tack AG Stategrace Group Limited HKD 11.7m5 £0.8m5 Bertolucci SA 2005 Dickson Concepts International Ltd. n.a. Ebel S.A. 2003 Movado Group, Inc. CHF 47.9m £21.7m 1.2x Revenue The Avia Watch Company Ltd. United Kingdom 2001 Fossil (UK) Holdings Ltd US$5.0m £3.5m Xantia, S.A. 2000 Swiss Army Brands, Inc.6 US$11.5m £7.7m 5.8x EBITDA Source: CapitalIQ Notes Binding term sheet was signed on November 16, Deal is to be finalised at the time of preparing this report. China Haidian Holdings Ltd. acquired a 91% interest in Zhuhai Rossini Watch Industry Ltd. for HKD 508m (£35.3m). This gives rise to an implied enterprise value of HKD 544m (£37.8m). Aurinvest acquired a 37% interest in Ladoire SA for CHF 1.5m (£0.8m). This gives rise to an implied enterprise value of CHF 4.1m (£2.1m) Heavily involved in production of watch movements. Stategrace Group Limited acquired a 51% interest in Tick Tack AG for HKD 6m (£0.41). This gives rise to an implied enterprise value of HKD 11.7m (£0.8m). Swiss Army Brands, Inc. Is now known as Victorinox Swiss Army, Inc. Dent brand evaluation | July 2012

Valuation: Watches opportunity Overview of approaches
Relief from royalty approach Avoided brand costs approach Value of the brand = value of royalties “avoided” by owning the brand (that is, the avoided cost of not having to license an equivalent brand). As applied to Dent, recognises that the realisation of brand value entails resources, investment and risk by licensee / acquirer (distribution, resources, marketing, retail expertise). Aligned with the current situation as realising brand value requires extensive retail, distribution and marketing expenditure (that is, a similar situation to licensing in a brand to an existing business). Key assumptions for this approach are: Price. Steady state sales volumes. Period until steady state sales volumes is reached. Royalty rates. Value of brand = avoided cost/ risk of not having to create and maintain an equivalent brand. We have based on calculations using this approach on data such as: General information on brand creation costs. Analysis of on-going marketing costs of luxury watch companies. Potential value of ongoing reduced advertising expenditure Affinity with Big Ben/ St. Pancras Marketing and press narratives generated by brand history / archive (reduces need for brand advertising). Dent brand evaluation | July 2012

Years until steady state reached
Valuation: Watches opportunity Relief from royalty approach – Assumptions We have used the following assumptions in our relief from royalty valuation approach Price We have used an average price of £13,000 based on the average price achieved on past Dent sales. Steady state volumes The market data that we have collected suggests that a steady state volume of sales between 2,500 and 7,500 is a reasonable assumption. The figures are based on the production levels of similarly-priced more mature luxury watch brands, such as Panerai (10,000 units per year), Perrelet (6,000), A. Lange & Son (5,000), and Parmigiani (4,000). Years until steady state reached We have developed two scenarios for the years until maturity: where sales grow linearly to a steady state (i) after 5 years and (ii) after 10 years. These scenarios are based on our understanding of the development and production of the Bremont and Graham London watch brands, and the well-developed nature of the Dent brand. Royalty rate We have used a royalty rate ranging from 2.5% to 7.5% based on licence agreements of luxury goods products, including watches. This range accords with that contained in those contained in the potentially comparable licence agreements that we have identified. Details of these agreements are contained in our Appendices. Other assumptions We have used a discount rate of 15%, deducted tax at the UK corporate tax rate and used a terminal growth rate of 3%. Dent brand evaluation | July 2012

Valuation: Watches opportunity Relief from royalty example
Relief from royalty example assuming steady state watch sales of 10,000 reached in 5 years, a royalty rate of 5% and a terminal growth rate of 3%. Year 1 2 3 4 5 (onwards) Watch sales 1,000 2,000 3,000 4,000 5,000 Price in £ per unit (with 3% growth) 13,000 13,390 13,792 14,205 14,632 Revenue from watch sales (£m) 13.0 26.8 41.4 56.8 73.2 Royalty rate 2.5% Gross royalties received (£m) 0.3 0.7 1.0 1.4 1.8 Tax rate 24% 23% Tax paid (£m) (0.1) (0.2) (0.3) (0.4) After-tax royalty payment received (£m) 0.2 0.5 0.8 1.1 Terminal value (£m) 12.1 Total annual cash flows (£m) 13.5 Discount factor (15% discount rate) 0.93 0.81 0.71 0.61 0.53 Discounted cash flows (£m) 0.4 0.6 7.2 Net present value (£m) 9.1 Dent brand evaluation | July 2012

Valuation: Watches opportunity Relief from royalty approach - Summary
The results show significant values at plausible steady watch volumes and royalty rates, but it may be necessary to consider acquisition terms that incorporate a running royalty-based licence agreement for the trade mark. Steady state sales volume reached in 5 years Conclusions The results from the relief from royalty approach show significant values at plausible steady state watch volumes and royalty rates. The key issue is the uncertainty of achieving the range of steady state volumes that we have assumed. It is not clear that potential acquirers will be willing to transact purely on a upfront lump sum basis based on these assumptions. However, we consider that royalty rates in this range could be achieved based on a smaller upfront payment, perhaps based on Dent’s costs of developing its movement and marketing costs to date, together with a running royalty based licence agreement for the trade mark. Royalty rate 2.50% 5.00% 7.50% 2,500 £4.5m £9.1m £13.6m 5,000 £18.2m £27.3m 7,500 £27.2m £40.8m Watch volumes Steady state sales volume reached in 10 years Royalty rate 2.50% 5.00% 7.50% 2,500 £3.6m £7.2m £10.7m 5,000 £14.3m £21.5m 7,500 £32.2m Watch volumes Dent brand evaluation | July 2012

On-going marketing costs
Valuation: Watches opportunity Avoided brand cost approach – Assumptions Brand creation costs Costs of developing consumer brands can be significant. Data that we have collected shows costs ranging from £12 million to £207 million (see appendices). On-going marketing costs Data that we have collected shows an average marketing spend of 8.4% of annual revenue by luxury goods companies. Dent brand evaluation | July 2012

Valuation: Watches opportunity Avoided brand costs approach example
Avoided brand costs example assuming the same revenue as the relief from royalty example, £1 million of brand establishment costs and avoided marketing costs equal to 5% of revenue. Year 1 2 3 4 5 (onwards) Avoided brand establishment costs (£m) 5.0 Revenue from watch sales (£m) 13.0 26.8 41.4 56.8 73.2 Avoided marketing costs (% of revenue) 2.0% Gross avoided brand costs (£m) 0.3 0.5 0.8 1.1 1.5 Tax rate 24% 23% Tax benefit (£m) (1.2) (0.1) (0.2) (0.3) Net avoided brand costs (£m) 0.2 0.4 0.6 0.9 Terminal value (£m) 9.7 Total avoided brand costs (£m) 3.8 10.7 Discount factor (15% discount rate) 1.00 0.93 0.81 0.71 0.61 0.53 Discounted avoided brand costs (£m) 5.8 Net present value (£m) 11.1 Dent brand evaluation | July 2012

Valuation: Watches opportunity Avoided brand costs approach - Summary
The results from the avoided brand costs approach are consistent with the results from the relief from royalty approach. Steady state sales volume of 5,000 units reached in 5 years On-going marketing costs (% of revenue) 2% 3% 4% £7.2m £10.9m £14.5m 5 £11.1m £14.7m £18.3m 10 £14.9m £18.5m £22.1m Costs avoided (£m) Steady state sales volume of 5,000 units reached in 10 years On-going marketing costs (% of revenue) 2% 3% 4% £5.7m £8.6m £11.5m 5 £9.5m £12.4m £15.2m 10 £13.3m £16.2m £19.0m Costs avoided (£m) Dent brand evaluation | July 2012

POTENTIAL PURCHASERS

Potential purchasers Asian companies (1 of 2)
We list below some Asian companies that could be interested in purchasing Dent. Name Head office location Last annual revenue figure (£m equivalent) Notes Trinity Limited (SEHK:891) Hong Kong £216 Trinity Limited is involved in the manufacture, wholesale and retail of luxury mens goods in China, wider Asia and Europe. It has a recent history of acquiring luxury European brands, having acquired Gieves & Hawkes in 2012, Cerruti 1881 in 2010 and Kent & Curwen in It is currently looking for further luxury brands to add to its portfolio. YGM Trading Ltd (SEHK:375) £111 YGM Trading Ltd is involved in the manufacture, wholesale and retail of apparel in Asia, Europe and the United States, with over 800 retail outlets. It aims to be the leading marketer and builder of international apparel brands in Asia. It recently acquired luxury clothing brand Aquascutum. Dickson Concepts International Ltd. (SEHK:113) £321 Dickson Concepts International Ltd is a retailer of luxury goods in China and wider Asia, with a retail network of approximately 320 shops. In 2005 it acquired Swiss watch maker Bertolucci SA. China Haidian Holdings Ltd. (SEHK:256) £121 China Haidian Holdings Ltd is involved in manufacture of watches and timepieces in China and Europe, operating more than 1,400 retail outlets. It launched its launched its own luxury Swiss watch brand, Codex, in 2009 and purchased Swiss watch company Eterna AG Uhrenfabrik in 2011. Chow Tai Fook Jewellery Group Ltd. (SEHK:1929) £4,556 Chow Tai Fook Jewellery Group Ltd is involved in the manufacture and retail of jewellery in China and wider Asia. Its principal products are luxury jewellery products, including watches, and as of December 2011 it had a 12.6% share of the Chinese jewellery market. It acquired Swiss watch brand Milus in 2008. Dent brand evaluation | July 2012

Potential purchasers Asian companies (2 of 2)
We list below some Asian companies that we think could be interested in purchasing Dent. Name Head office location Last annual revenue figure (£m equivalent) Notes King Fook Holdings Ltd (SEHK:280) Hong Kong £109 King Fook Holdings Ltd sells high-end jewellery in China, including luxury watches. In 2011 it obtained the sole license to sell two Swiss watch brands: Robert & Fils 1630 and Laurent Ferrier Genève. LuxuryConcepts Timepieces Sdn Bhd Malaysia N/A LuxuryConcepts Timepieces Sbn Bhd manufactures and markets watch and jewellery Malaysia, with a focus on selling luxury branded items to the East Asian market. It acquired the Swiss watch company Bedat & Co SA in 2009. Dent brand evaluation | July 2012

Potential purchasers Other companies
We list below other further companies that could be interested in purchasing Dent. Name Head office location Last annual revenue figure (£m equivalent) Notes Titan Industries Limited (BSE:500114) India £1,087 Titan Industries Limited is the world's l5th largest watch manufacturer and retails its watches in India and internationally. In 2009 it launched Helios, a leading Indian luxury watch brand retailer in 2009, which stocks over 40 premium international watch brands. In 2009 it acquired Swiss the watch company Maison Favre Leuba, S.A. Movado Group, Inc. (NYSE:MOV) United States £297 Movado Group, Inc. is a luxury Swiss watch company that is headquartered in the United States. It is involved in the design, manufacture, and distribution of various luxury brands to retailers and distributors, and also through its own retail stores. It acquired Swiss watch company Ebel S.A. in 2003. LVMH (ENXTPA:MC) France £19,746 LVMH Moet Hennessy Louis Vuitton is a French-based company involved in the manufacture and retail of luxury goods. Since its formation in 1987 it has grown its business through acquisition. It acquired Swiss watch company Hublot S.A in 2009. Campagnie Financiere Richemont SA (SWX:CFR) Geneva £7,392 Compagnie Financiere Richemont SA is a Geneva based company that is involved in the design, manufacture and distribution of luxury goods in Europe, Asia and the Americas. In 2006 it acquired a Swiss company involved in the production of watch movements, Fabrique d'Horologie Minerva SA. Stellican Ltd United Kingdom N/A Stellican Ltd is a British private equity firm that specialises in reviving heritage brands. In recent years it has bough, rebuilt and sold Cantiera Riva, an Italian maker of luxury power boats founded in the mid-1800's, and Indian Motorcycle, the oldest motorcycle brand in America. Dent brand evaluation | July 2012

APPENDICES

Appendices Data from Wristwatch Annual 2012 (1 of 7)
Brand Annual Production Lowest price Highest price Other notes A. Lange & Sohne 5,000 17,800 183,500 Alpina 10,000 2,450 2,795 Armin Strom 1,000 8,100 27,500 Arnold & Son - 17,135 135,000 Audemars Piguet 26,000 14,000 285,000 Azimuth 2,500 1,990 7,080 One watch for 285k Ball Watch Co 1,599 5,899 Baume & Mercier 3,450 19,450 Bell & Ross 3,200 One watch for 200k Ernst Benz 5,800 6,800 Benzinger 50 12,900 14,600 Blancpain 15,800 392,500 Many watches above $100k Bovet 2,000 26,400 364,000 Three watches, one for $26,400, one for $240,500 and one for $364,000 Breguet > 5,000 12,200 180,700 Breitling 700,000 4,200 10,615 BRM 3,250 145,350 Carl F. Bucherer 15,000 2,800 52,600 Bulgari 5,150 773,000 BWC-Swiss 529 1,749 Dent brand evaluation | July 2012

Brand Annual Production Lowest price Highest price Other notes Cartier - 6,500 490,000 Chanel 5,200 445,000 Chopard 4,170 185,400 Chris Aire 500 6,600 48,500 Chronoswiss 5,000 3,950 29,900 Concord 480,000 Frederique Constant 110,000 850 4,995 One watch at $49k Vacheron Constantin > 20,000 18,500 189,500 One watch for $673k Corum 16,000 3,600 59,000 One watch at 277k Cuervo y Sobrinos 3,500 4,400 5,800 D. Dornbluth & Sohn 120 8,200 10,900 De Bethune 90,500 23,800 Deep Blue 1,500 2,000 De Grisogono 15,900 44,900 DeWitt > 500 23,900 462,000 Dodane 1857 5,350 5,750 Doxa 1,649 3,970 One watch at 44k Jaquet Droz Roger Dubis > 5,000 16,300 250,000 One watch at 700k Dent brand evaluation | July 2012

Brand Annual Production Lowest price Highest price Other notes Ebel 20,000 2,490 26,500 Eberhard & Co - 3,370 12,580 Edox 50,000 1,350 5,625 Epos 2,550 Eterna 2,300 13,100 Fortis 1,800 21,700 Franck Muller 500 10,100 2,666,700 Paul Gerber > 100 6,000 18,345 Girdard-Perregaux 12,000 8,970 53,995 One watch at $154k, one at $195k Glashutte Original 5,000 8,600 35,300 One watch at $114k Graham 7,000 8,740 12,235 One at $74k Gruebel Forsey 120 390,000 790,000 Grieb & Benzinger 30 317,000 388,000 Habring 80 3,150 24,500 Hamilton 795 1,971 Hanhart 150,000 3,200 5,850 Harry Winston 20,300 605,300 Harwood 3,950 22,800 Hautlence 100 46,400 CHF Dent brand evaluation | July 2012

Brand Annual Production Lowest price Highest price Other notes Hermes - 6,125 38,950 IWC 80,000 6,900 56,400 One watch at 260,000. Production estimate sourced from: Jacob & Co 12,000 1,000,000 Jaeger-LeCoultre > 50,000 7,500 381,000 Jaermann & Stubi 500 8,650 14,500 Jaquet Droz > 5,000 8,700 92,500 One watch at JeanRichard 4,000 5,190 11,340 Romain Jerome 10,200 25,000 One watch for $179k F.P. Journe > 3000 CHF 31,600 CHF 140,800 One watch at CHF 650,000 Kobald 2,500 2,250 14,000 Krieger Watch Corporation 5,000 1,850 5,650 Stefan Kudoke 50 7,400 12,800 Maurice Lacroix 90,000 1,600 22,200 Linde Werdelin 600 4,500 18,600 Longines 1,175 5,100 Louis Moinet 13,950 295,000 Dent brand evaluation | July 2012

Brand Annual Production Lowest price Highest price Other notes Louis Vitton - 3,950 45,500 Marcello C. 15,000 1,257 2,999 MB&F 165 98,500 115,000 MeistarSinger 7,000 1,300 7,300 Richard Mille > 2,500 70,000 660,000 Milus 5,200 260,000 Three watches, one at 5k, one at 10k, one at 260k Mk II 800 780 1,265 Montana Watch Company 100 6,100 42,300 Montblanc 3,495 310,300 H. Moser & Cie 1,000 14,500 89,000 Muhle Glashutte 2,099 4,099 Ulysse Nardin 8,000 162,500 Nivrel 949 8,700 Nomos 1,520 6,300 Itay Noy 250 2,180 6,240 Omega 750,000 4,400 36,800 Oris 1,650 4,450 Dent brand evaluation | July 2012

Brand Annual Production Lowest price Highest price Other notes Otium - 1,700 6,600 Panerai 10,000 4,600 46,500 Production estimate found online. Refers to Wristwatch Annual 2011. Parmigiani 4,000 8,900 60,000 Patek Philippe 44,000 28,600 387,200 Perrelet 6,000 3,800 15,900 Piaget 19,900 65,000 Poljot International 12,000 1,620 2,340 Porsche Design 5,400 10,800 One watch for 150k Rado 2,600 Raymond Weil 250,000 2,450 4,500 RGM 300 9,200 One watch for 85k Rolex 1,000,000 7,720 70,450 Sattler 92,900 Schaumburg Watch 2,050 8,250 Seiko 495 Sinn 12,500 1,400 Stowa 560 2,034 Swiss Legend 795 2,995 Dent brand evaluation | July 2012

Brand Annual Production Lowest price Highest price Other notes Swiss Watch International - 2,795 6,995 Tag Heuer 2,700 13,700 Temption 700 2,100 4,150 Tissot 595 1,595 Towson Watch Company 200 2,800 4,375 Tutima 1,400 17,500 U-Boat 5,100 15,000 Urwerk 150 102,000 160,000 UTS < 500 4,900 Victorinox Swiss Army 875 2,095 Vogard 500 7,500 18,000 Vollmer 6,600 900 2,000 Vostok-Europe 25,000 449 799 Vulcain 5,000 1,800 1,600 Dent brand evaluation | July 2012

Appendices Potential comparable licence agreements (1 of 5)
Licensor Products involved Year Royalty Base Low Rate High Rate Upfront fee Licensee Description Bill Blass Watches 1986 Sales? (not specified) 5% 10% Robert Tabakow Co (Division of Jewelcor Inc) The Licensor entered to an agreement to license watches with designer names (Bill Blass); Blass watch line. Blass receives royalties between 5 and 10 percent, according to Earl Zimbler, vice president of marketing at Tabakow. Christian Dior Sales Memox Corp Christian Dior-New York has licensed the Dior name to manufacture a line of watches for distribution in the U.S. Dior will receive between 5 and 10 percent of sales in royalties Jaguar Cars Ltd 1989 Gross invoice price 7.5% Prestige Trading SA The Licensee wished to use the Jaguar name and leaping Jaguar device on high quality men's watches. Asian & Western Classics B.V Jewellery 1995 Net sales Victoria Creations Inc The Netherland Company grants to the Licensee the right to exclusively manufacture the Products for sale in the Territory under the Trade Marks; Karl Lagerfeld branded luxury costume jewellery for women; famous trademark "Karl Lagerfeld" in its various forms ("the Trade Marks" as defined below) and of the goodwill and reputation associated with them and manufactures or has manufactured for it and sells under the Trade Marks a wide range of luxury goods. "The Trade Marks" shall mean the trade mark "Karl Lagerfeld", in its various forms. The Products shall comprise of the following items:- Luxury costume jewellery for women. "Territory" shall mean North America excluding duty- free outlets. For and in consideration of the rights granted to the Licensee and undertakings given by Asian, the Licensee shall pay to Asian, subject to the due performance of its obligations, a royalty equal to ten per cent (10%) of the Net Sales Turnover of all Products manufactured and sold by the Licensee in any Contractual Year. Dent brand evaluation | July 2012

Licensor Products involved Year Royalty Base Low Rate High Rate Upfront fee Licensee Description Christian Dior Clothing 1997 Sales? (not specified) 5% 10% (Various) The Company would hand out licenses on a massive scale, permitting the Christian Dior name to be used on products which had never been seen by the designer, let alone designed by him. Licenses of the Christian Dior name on products such as ties, and later shirts and underwear, ready-to-wear suits, jewellery and furs. In return the manufacturers would pay Dior a 5 to 10 per cent royalty. Goldpfeil AG Jewellery 1999 Factory price 8% Egana Jewellery & Pearls Ltd The Company became the sole licensee of Goldpfeil AG in Germany to design, manufacture and distribute jewellery under the Goldpfeil brand on a worldwide basis for seven years. Starting in 1999, Egana will pay a sales royalty of 8 percent of the factory price of the licensed products subject to a guaranteed minimum royalty of US 1.03 million annually. Victorinox Original Swiss Army (TM) Knives Knives, Cutlery & Watches 1993 Net sales 1% Swiss Army Brands Inc This Trademark License Agreement was made on December 21, 1993 The Company entered into an agreement with Victorinox of Switzerland under which it received the exclusive distribution rights for Victorinox Original Swiss Army Knives and professional cutlery in the Caribbean and Victorinox Swiss-made watches in the United States, Canada and Caribbean. Swiss Army pays Victorinox a royalty of 1% of net sales of Victorinox Watches. Dent brand evaluation | July 2012

Licensor Products involved Year Royalty Base Low Rate High Rate Upfront fee Licensee Description Calvin Klein Luxury Goods 2002 Wholesale sales 1.15% Phillips-Van Heusen As part of the sale of the company that bears his name (Calvin Klein), this well known designer will receive a royalty on worldwide sales from a deal was signed last December Financial incentives tied to the acquisition guarantee Klein an annual payment of 1.15 percent of worldwide wholesale sales of all merchandise bearing his label for the next 15 years, according to SEC filings, which replaced an existing clause in Klein's contract to work for his own company that gave him a 1 percent royalty in perpetuity. Donna Karan International Inc Clothing 1996 Sales 7% $6,000,000 Designer Holdings Ltd The Company granted to a Licensee a thirty-year license to produce, sell and distribute DKNY men’s and women’s jeanswear; men’s and women’s wear with a designer label (Donna Karan). The company said it will receive $60 million plus royalties under the agreement. It said it received $6 million upon signing. Royalty: Annual 7% royalty on total sales and additional 2% on administrative fee on international sales, subject to guaranteed minimum payments. Polo Ralph Lauren Corp 2003 Jones Apparel Group The Company has our exclusive licenses to manufacture and market clothing under the Lauren by Ralph Lauren and Polo Jeans Company trademarks in the United States, Canada and elsewhere. License to use well known apparel trademark on line of women's and junior's clothing line. License also includes line of jeans. Sources said Polo is determined to get these businesses back and run them independently, and it's not a question of Jones raising the royalty payments to Polo. Jones pays a 7 percent royalty rate to Polo on each of its three Lauren businesses. Dent brand evaluation | July 2012

Licensor Products involved Year Royalty Base Low Rate High Rate Upfront fee Licensee Description Goldpfeil AG Jewellery 1999 Factory price 8% Egana Jewellery & Pearls Ltd The Company became the sole licensee of Goldpfeil AG in Germany to design, manufacture and distribute jewellery under the Goldpfeil brand on a worldwide basis for seven years. Starting in 1999, Egana will pay a sales royalty of 8 percent of the factory price of the licensed products subject to a guaranteed minimum royalty of US 1.03 million annually Victorinox(r) Original Swiss Army (TM) Knives Knives, Cutlery & Watches 1993 Net sales 1% Swiss Army Brands Inc This Trademark License Agreement was made on December 21, 1993 The Company entered into an agreement with Victorinox of Switzerland under which it received the exclusive distribution rights for Victorinox Original Swiss Army Knives and professional cutlery in the Caribbean and Victorinox Swiss-made watches in the United States, Canada and Caribbean. Swiss Army pays Victorinox a royalty of 1% of net sales of Victorinox Watches. Calvin Klein Luxury Goods 2002 Wholesale sales 1.15% Phillips-Van Heusen As part of the sale of the company that bears his name (Calvin Klein), this well known designer will receive a royalty on worldwide sales from a deal was signed last December Financial incentives tied to the acquisition guarantee Klein an annual payment of 1.15 percent of worldwide wholesale sales of all merchandise bearing his label for the next 15 years, according to SEC filings, which replaced an existing clause in Klein's contract to work for his own company that gave him a 1 percent royalty in perpetuity Dent brand evaluation | July 2012

Licensor Products involved Year Royalty Base Low Rate High Rate Upfront fee Licensee Description Donna Karan International Inc Clothing 1996 Sales 7% $6,000,000 Designer Holdings Ltd The Company granted to a Licensee a thirty-year license to produce, sell and distribute DKNY men’s and women’s jeanswear; men’s and women’s wear with a designer label (Donna Karan). The company said it will receive $60 million plus royalties under the agreement. It said it received $6 million upon signing. Royalty: Annual 7% royalty on total sales and additional 2% on administrative fee on international sales, subject to guaranteed minimum payments. Polo Ralph Lauren Corp 2003 Jones Apparel Group The Company has our exclusive licenses to manufacture and market clothing under the Lauren by Ralph Lauren and Polo Jeans Company trademarks in the United States, Canada and elsewhere. License to use well known apparel trademark on line of women's and junior's clothing line. License also includes line of jeans. Sources said Polo is determined to get these businesses back and run them independently, and it's not a question of Jones raising the royalty payments to Polo. Jones pays a 7 percent royalty rate to Polo on each of its three Lauren businesses. Dent brand evaluation | July 2012

Appendices Costs of developing a consumer brand
Branding/ Re-branding costs £ million Schroder Investment Management rebranding 12 Royal & Sun Alliance consumer division rebranding 20 Midland bank new corporate identity campaign AA from emergency service to multi-product company 22 Orange brand creation 26 Freeserve to Wanadoo 30 One2One to T-Mobile 35 Lloyds Pharmacy 1,400 retail chain rebranding 70 One2One brand creation 100 Vodafone worldwide business rebranding Andersen Consulting to Accenture 117 BP Amoco to BP 125 Midland bank to HSBC 150 BT Cellnet to 02 Compaq global rebranding 207 Source: Marketing week, Daily Mail, Media Week, Adv. Works Dent brand evaluation | July 2012

Appendices On-going marketing costs
Company Marketing spend as % of revenue Hermes 5.2% Tiffany & Co 6.4% Movado Group, Inc 13.7% Average 8.4% Dent brand evaluation | July 2012

DENT BRAND EVALUATION July 2012.

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DENT BRAND EVALUATION July 2012.

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