Antwerp, Diamonds and Tourists:Potential Partnerships?

Mark Van BockstaelChief Officer International Affairs AWDC

• 4th Century BC Far East

• 13th Century Bruges via Venice

• 15th Century Lodewijk van Bercken

• 16th Century Antwerp’s Golden Age

• 17th Century Tavernier sells diamonds to Louis XIV Amsterdam vs. Antwerp

• 18th Century Diamonds in Brazil (Diamantina)

• 19th Century Kimberly (SA) De Beers Antwerp

Antwerp and Diamonds,The heritage

80% of all rough diamonds pass through Antwerpstrong ties with Africa, Russia and Canada

50% of all polished diamonds pass through Antwerpstrong ties with Chinese, Swiss and US marketsstrong ties with polishing hubs in India andIsrael

2006 2007 2008 2009 20100

5000000000100000000001500000000020000000000250000000003000000000035000000000400000000004500000000050000000000

Trade volume

Trade Volume

Average yearly turnover

40 billion US$

or 200 million US$ per day

Antwerp, the world’s leading diamond trade centre……for rough and polished

Antwerp, the world’s leading diamond trade centre……for rough and polished

Critical mass

Mining companies

Unique financial

infrastructure

4 diamond bourses

Multicultural& stable climate

Antwerpthe beating heart of the diamond industry

Antwerp’s selling points

South Africa

The United States

India

People’s Republic of China

Russia

Shanghai Diamond Day& Gala Evening

AWDCFocus on BRIC-countries and Africa

Welcoming official delegations in Antwerp

Diamondspure carbon crystalsformed under extreme heat

and great pressure150 km beneath the earth’s surface

A diamond,is different

Commodities Nature’s treasure

Diamonds

4 C’sCaratClarityColourCut

Carat

Clarity

Cut

Color

4 C’s

Declining Reserves: Reserves of major operating mines / annual production

1971 Orapa

1982 Jwaneng& Argyle

1992 Venetia

EkatiDiavik

Source: BHP Billiton; De Beers estimates

0

10

20

30

40

50

60

70

80

90

1970 1975 1980 1985 1990 1995 2000 2005

Diamonds are getting more rareDiamond reserves at an all time lowMajor new mines not being found

Nominal Consumer Demand PWP

Polished Supply

Source: De Beers UK Ltd estimates. Note: Supply figure excludes existing polished stock in pipeline

Supply/demand favorable long-termGrowing demand from China & IndiaDemand likely to exceed supply through much of the next decade

The index is based on prices in US$ and gives the average price evolution on the Antwerp market.The index is for diamonds ranging in color from exceptional white to white and in clarity from LC to VS2

Polished Price Evolution

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (5m)

250

270

290

310

330

350

370

390 1 ct.

1 ct.

The index is based on prices in US$ and gives the average price evolution on the Antwerp market.The index is for diamonds ranging in color from exceptional white to white and in clarity from LC to VS2

Polished Price Evolution

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (5m)

220.0

230.0

240.0

250.0

260.0

270.0

280.0 0.5 ct.

0.5 ct.

The index is based on prices in US$ and gives the average price evolution on the Antwerp market.The index is for diamonds ranging in color from exceptional white to white and in clarity from LC to VS2

Polished Price Evolution

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (5m)

100

120

140

160

Small brilliant (0.01 - 0.06 ct)

Small brilliant (0.01 - 0.06 ct)

Consumer research findingsDiamond Jewelry seen as the N°1 gift to retain value

39% consumers choose diamonds as the ONE gift to do so

Women want ONE decent present

62 % women strongly agree that one gift of better quality beats several small gifts.

WOMEN1st

choice2nd choice

HONG KONG

CHINA

GULF

JAPAN

USA

KSA

INDIA

FRANCE

TURKEY

ITALY

Consumers want diamonds

most desirable luxury product in almost all major countries

TIME

Strategy:Value in three dimensions

Antwerp, Diamonds and Tourists:

Existing Hurdles:

• Antwerp is (loose) diamond Wholesale centre, hence limited infrastructure to cater for tourists’ needs

• 21% VAT (TVA/BTW) refundable upon export

AWDC and Antwerp’s Jewelry organisations can provide relevant contacts to visiting groups and travel organisations upon request

Thank you