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The Impact of the Ultra High Net Worth Luxury Consumer

ParisNovember 6th, 2014

Agenda

Your Target

Focus on France

The Luxury Industry

Engaging with Your UHNW Clients

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Definition

at least US$30 millionUltra High Net Worth Individuals

After accounting for shares in Public/Private companies, Residential Investments & Luxury Goods,

such as Art, Planes, Motor cars, Yacht, Watches & Jewellery

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4

200,000UHNW Individuals

US$28 TrillionTotal Net Worth

Source: Wealth-X and UBS World Ultra Wealth Report 2013

More Wealth, More Wealthy

800,000Principal, plus spouse and 2 adult children

Addressable Ultra Affluent Market Size

Source: Wealth-X Institute Analysis5

Source: Wealth-X and UBS World Ultra Wealth Report 20136

Source: Wealth-X and UBS World Ultra Wealth Report 20137

Europe: 29% of Global UHNW Population

France: Europe’s Fourth Largest UHNW Country

2013 2012 2012-2013

UHNW POPULATION

UHNW WEALTHUS$ billion

UHNW POPULATION

UHNW WEALTHUS$ billion

POPULATION CHANGE %

WEALTH CHANGE %

EUROPE 58,065 7,675 53,440 6,950 8.7% 10.4%

GERMANY 17,820 2,345 15,770 2,050 13.0% 14.4%

UNITED KINGDOM

10,910 1,375 10,515 1,325 3.8% 3.8%

SWITZERLAND 6,330 750 5,595 655 13.1% 14.5%

FRANCE 4,490 525 4,100 475 9.5% 10.5%

Source: Wealth-X and UBS World Ultra Wealth Report 20138

Paris: Europe’s Second Largest City

2013 2012

RANK CITY COUNTRYUHNW

POPULATIONUHNW

POPULATIONPOPULATION

CHANGE %

1 LONDON UNITED KINGDOM 6,360 6,015 5.7%

2 PARIS FRANCE 3,195 2,860 11.7%3 ZURICH SWITZERLAND 1,940 1,805 7.5%

4 MUNICH MUNICH 1,740 1,660 4.8%

5 GENEVA GENEVA 1,460 1,360 7.4%

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Moving Away?

Almost 20%of French-born UHNW individuals are based outside of France

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But France Attracts Other UHNW Individuals

one of the top tencountries for secondary residences for the UHNW population

Particularly the French countryside and the Côte d’Azur

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Luxury Industry Sentiment Index: Up 8% Since Beginning of the Year

12Source: Wealth-X Luxury Sentiment Survey Vol.1-4

ASSET

2013 WORLDWIDE

SPENDUS$ Billion

2013 UHNW MARKET SHARE %

Art 21 32%

Aviation 19 83%

Yachting 13 65%

Fashion 51 17%

Travel &Leisure

40 21%

Other 54 9%

Total 198 17%

17%UHNW Share of Luxury Market

Impact of UHNW Luxury Spending

13Source: Wealth-X Institute Analysis

Average Per UHNW Capita Luxury Spending*

$848 000

$1 101 000

$880 000

$777 000 $759 000 $755 000

$672 000

$360 000

Total Asia North America Latin America Oceania Middle East Europe Africa

14* For 2013; Excludes Real EstateSource: Wealth-X Institute Analysis

Mainland China10%

Asia (excluding mainland China)

40%

USA21%

Europe27%

Other2%

Chinese Tourists: A Big Clientele in Europe

Source: Wealth-X Institute Analysis15

Engaging with “Your” UHNW Clients

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Which Events?

17Source: Wealth-X Luxury Sentiment Survey Vol.3

25%

24%19%

17%

15%

Extend Client Base

Build Loyalty

Increase Brand Awareness

Increase Sales

Launch New Good/Service

Why Events?

18Source: Wealth-X Luxury Sentiment Survey Vol.3

29%

26%19%

17%

9%

Product Display

Product Launch

Product Education

Secondary Focus

Other

Why Referrals?

“The last hundred years have been defined by the mass media. In the next hundred years, information won’t be just pushed out to people. It

will be shared among the millions of connections people

have…Nothing influences people more than a recommendation from a trusted friend…

A trusted referral is the Holy Grail of advertising.”

-- Mark Zuckerberg

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Key Clients Intelligence

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Improve Luxury Retailing

Your Data Screening

Identify who and where your clients are

UHNW Dossiers

Relevant UHNW clients and prospects dossiers added to “Your Favourites”

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Learn About Individuals

• To make a good impression: get along with his children

• Discuss common interests:

– one of Niel’s favourite book is the Hitchhikers Guide to the Galaxy

– Niel owns a large stake in the music of Claude Francois

• Clear philanthropic attitude: enable children to build their own businesses

Develop a Personal Approach

Improve Targeting, Maximise Revenue

US$120 million new business

80% accepted

50 UHNW individuals invited

CASE STUDY: PRIVATE AVIATION EVENT

SCREENING OF GUEST LIST

PERSONALISED INVITATION FOR IDENTIFIED UHNW

INDIVIDUALS

Take Technology & Data Further

Profile Found

Facial Recognition

Target Identified

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WWW.WEALTHX.COM

Jean-Luc Gustave

Vice-President, Luxury

jlgustave@wealthx.com

www.billionairecensus.com

www.wealthx.com/wealthxubswealthreport

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Connect With Us

NORTH ASIA

gc@wealthx.com

INDIA

ind@wealthx.com

SOUTH EAST ASIA

sea@wealthx.com

AUSTRALIA AND NEW ZEALAND

pa@wealthx.com

MIDDLE EAST AND AFRICA

mena@wealthx.com

AMERICAS

na@wealthx.com

EUROPE

eu@wealthx.com

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