1© 2006 121TIME CONFIDENTIAL & PROPRIETARY

2© 2006 121TIME CONFIDENTIAL & PROPRIETARY

5 x PFocusing on

KEY DIFFERENTIATORS

2. PlaceDistribution

(Market size not covered)

5. PeopleSuperior Customer Experience

4. PriceDynamic pricing & up-selling

1. ProductMass-customization

3. PromotionCommunication

L’ “internautisation” en 5 étapes

3© 2006 121TIME CONFIDENTIAL & PROPRIETARY

Certifiable

• Detailed information and objective certifications

Suited for Online Retailing• Significant product information• Broad selection and dynamic display• Small size / ease of shipping

Fashion segment

• Drives ownership of multiple watches

Swiss Made• Key differentiating factor (US & Asia)• “Swiss Made” label sells• “Swiss Made" = guarantee • “Swiss Made” = additional credibility

121TIME’s business model combined with

innovative PRODUCTScreates a strong USPCompetitive drivers

• Speed of renewal Additional product categories

• Ease to expand assortment toother product categories

Strong image (see slide Mass-customization)

• USP: Create your own• Ambassador: Stephane Lambiel

Product > Unique Selling proposal

4© 2006 121TIME CONFIDENTIAL & PROPRIETARY

The 121TIME model bringsability to build a powerful

and diversified distributionNetwork worldwide

Direct to 121TIME web site

• Web advertising

• Search engine marketing

Hybrid distribution (CBP)

• Interactive design workstations in physical retailer shopsAmbassador/vendor Program (CBP)

• Network of private persons promoting/selling 121TIME watches

Affiliation program (CBP)

• Network of banner publishers

E-retailers (CBP)

• Integration of configurator technology to enable customization

Viral communication (CBP)

• Communication triggered by 121 customers

CBP = commissions based performance

Place > Distribution

5© 2006 121TIME CONFIDENTIAL & PROPRIETARY

COMMUNICATION & PRODUCT MARKETINGmanaged by 121TIME

is low cost, flexible,adjustable & measurable

Free PR

• Free due to innovative concept Online Communication• Web advertising• Search engine marketing

E-newsletter

• Low cost acquisition on registered visitors

121TIME web site• Viral marketing• Contest, incentive• Special promotion

E-ambassador/vendor

Offline communication• Offline advertising• Sponsoring, events• Radio, TV spots

Communication > ROI measurable

6© 2006 121TIME CONFIDENTIAL & PROPRIETARY

Total controlon PRICING to

maximize reach,minimize barriers &

maximize profitability

No distribution

• 70% OFF = cost of physical distribution

Multi-level strategy• Price line 1: direct to 121TIME• Price line 2: indirect to 121TIME

No price barrier

• Dynamic pricing as a reduction factor(customer picks just theright options)

Up-selling

• Customer has opportunity to upgrade selection

Centralized•121TIME controls pricing•Promotions•Discounts•Partnerships

Pricing > Up-selling & dynamic pricing

7© 2006 121TIME CONFIDENTIAL & PROPRIETARY

Customer satisfaction• Direct customer service• Direct repair service

Wide assortment

• Broad selection and ability to customize

Quality/price ratio• Superior value • Upselling

Dynamic pricing

• Price transparency

USP

• Create your own watch

121TIME leverages online media

to bring a SUPERIOR CUSTOMER EXPERIENCE

to generate sales and penetrate distribution networks

Trust and guidance

• Customer controls purchasing experience

People: Superior Customer Experience

8© 2006 121TIME CONFIDENTIAL & PROPRIETARY

5 x PA fully Web-based &

integrated OPERATIONS,

minimizes working capital + risk;

maximizes flexibility, control

and profitability

1. PlaceDistribution

(Market size not covered)

2. PeopleSuperior Customer Experience

5. PriceDynamic pricing & up-selling

3. ProductMass-customization

4. PromotionCommunication

9© 2006 121TIME CONFIDENTIAL & PROPRIETARY

Made-to-order manufacturing • Largely minimizes risks and costs

No distribution => • Shorter time to market• Increases creativity Integrated supply chain

• Eliminates layers• Real-time information

reduces forecasting risks

Low & flexible cost structure (compresses value chain)

A fully Web-based &integrated OPERATIONS,

minimizes working capital + risk;maximizes flexibility, control

and profitability

A fully Web-based &integrated OPERATIONS,

minimizes working capital + risk;maximizes flexibility, control

and profitability

Minimized working capital• No inventory of finished products• Suppressed waste/spoilage, and avoids product returns

The online advantage• Asset efficiency – increased ROA, sales/employee• Capital efficiency – low capex, low customer

acquisition cost

Competitiveness > Operations