Reference Data on the 70 th Term Quarter 1 Results Briefing

Reference Data on the 70 th Term Quarter 1 Results Briefing September 2, 2013 Vérité Co. Ltd. (code:9904) Place : Tokyo Shoken Building Copyrights 2013

目次 Introduction Company Overview 4 1. Term 70 Quarter 1 results 7 2. Forecast 18 3. New Strategies 19 4. Q&A 33 2 2013/9/2

Introduction Company Profile History of VERITE About DIGICO Group Copyrights 2013

Company Profile Corporate Name Vérité Co. Ltd. Location of Head Office 3-33-8, Tsuruyacho, Kanagawa-ku, Yokohama City, Kanagawa Prefecture, 221-8705, Japan Capital 3,972,736,945 Business Details Jewelry retail specialty-store chain Head Count 532 (including Part-Timers & Shokutaku contract employees as of June 30, 2013) Stock Exchange 2 nd Section of the Tokyo Stock Exchange (Security code: 9904) Holding Company DIGICO HOLDINGS LIMITED (The Diamond Trading Company (DTC) Sightholder) 4 2013/9/2

History of VERITE 1936 Ohkubo Clock Store is founded by Toshiharu Ohkubo 1971 Expands into the Kinki region with a store in the Hankyu Five shopping center 1984 Total stores surpass 50 1991 The company name is changed to Jewel Verite Ohkubo Co., Ltd. 2010 Katsuyoshi Hirano becomes President and 2008 CEO. The company celebrates its 60th Anniversary 2012 Launches Mimikazari to Shinjuku Isetan Main Store 1967 Opens a store in Tachikawa Seibu Dept. Store, as the first step to chain store business 1985 Total stores surpass 100 2006 The main office is relocated to Yokohama. 2008 The company becomes a member of the DIGICO Group, a Sightholder of DTC Oct-2010 The first MAHARAJA Diamond store opens in Koshigaya AEON Lake Town s Kaze shopping zone. 2012 Mimikazari store opens in Hankyu Umeda Dept. Store 5 2013/9/2

DIGICO Group has 30 companies & approx. 4,000 liaison offices Hong Kong DIGICO Holdings Limited Diamart : polished diamond wholesaler Japan Verite Co., Ltd. jewelry retailer Cest Bien Co., Ltd. jewelry retailer Diminco Japan Limited: polished diamond wholesaler Thailand Gemsiam Manufacturing (Bangkok): diamond manufacturing China Diminco Manufacturing: diamond manufacturing Diminco Diamond Shanghai: polished diamond wholesaler Giant Jewelry Trading: jewelry retailer Pacific Luxury Jewelry Manufacturing: jewelry manufacturing India Plytast Jewelry: jewelry manufacturing, jewelry wholesaler Cria Jewelry: jewelry retailer D damas Jewelry India: jewelry manufacturing, jewelry wholesaler Desire Lifestyle: jewelry retailer, brand management Fantasy Diamond Cut: diamond wholesaler Gemplus Jewelry India: jewelry manufacturing and wholesaler Gitanjili Exports Corporation: polished diamond manufacturing and wholesaler, rough diamond wholesaler Gitanjhili Gem: polished diamond manufacturing, rough diamond wholesaler, diamond manufacturing Meful Impex: polished diamond wholesaler, rough diamond wholesaler, diamond manufacturing UAE Jewel Trade DMCC: polished diamond wholesaler, rough diamond wholesaler, jewelry wholesaler Belgium Diminco NV : rough diamond wholesaler, polished diamond wholesaler I Cap NV: jewelry wholesaler U.S.A Samuels Jewelers : jewelry retailer Rogers: jewelry retailer Jewelry Marketing Corp: jewelry wholesaler Diamlink: polished diamond wholesaler Jewelry Marketing Company: jewelry wholesaler Tristar Worldwide LLC: polished diamond wholesaler, jewelry wholesaler Namibia Diminco Diamond Manufacturing Namibia: diamond manufacturing 6 2013/9/2

1.Term 70 2013 Q1 Results Summarized Profit & Loss Jewelry Business Sales, Gross Profit and Operating Profit Breakdown of SGA Expenses Customer Footfall and Sales Unit (vs Last Year) Customer Footfall and Sales Unit Trend Trade-in (CBB&SCB) Results with Metal Market Summarized Balance Sheet Copyrights 2013

Summarized Profit & Loss Unit : 1MJPY FY2012 Q1 FY2013 Q1 Increase/ Decrease vs Last Year Net Sales 2,217 2,251 +34 101.5% Cost of Goods Sold 1,055 1,124-69 106.5% Gross Profit 1,162 1,127-35 97.0% SGA Expenses 1,371 1,169 +202 85.3% Operating Profit 209 42 +167 Current Profit 238 66 +172 Q1 Net Profit 254 58 +196 Deficit Reduced Deficit Reduced Deficit Reduced 8 2013/9/2

Jewelry Business Sales, Gross Profit and Operating Profit FY2012 Q1 FY2013 Q1 Increase/ Decrease vs Last Year Net Sales Jewelry Biz 2,038 2,111 73 103.6% Ex-Biz 179 140-39 78.2% Total 2,217 2,251 34 101.5% Gross Profit Jewelry Biz 51.1% 1,041 51.5% 1,087 +0.4% 46 104.4% Ex-Biz 121 40-81 33.1% Total 1,162 1,127-35 97.0% SGA Exp. Jewelry Biz 1,179 1,103-76 93.6% Ex-Biz 192 66-126 34.4% Total 1,371 1,169-202 85.3% Operating Jewelry Biz 138 16 122 11.6% Profit Ex-Biz 71 26 45 36.6% Ex-Biz : Pandora Business Unit : 1MJPY Total 209 42 167 20.1% 9 2013/9/2

Breakdown of SGA Expenses Unit : 1MJPY 1,371 million yen 1,169 million yen 1,400 1,200 1,000 800 600 400 200 Decreased by 202 million yen 126 178 95 163 367 297 700 614 Other その他 Sales Exp. 販売費 Equipment Exp. 設備管理費 Personnel Exp. 人件費 0 FY2012 Q1 FY2013 Q1 10 2013/9/2

Customer Footfall and Sales Unit (vs Last Year) At the end of the previous fiscal year the franchise agreement for the brand business in question was terminated in consent. Due to this termination, we only have one segment. 11 2013/9/2

Customer Footfall and Sales Unit Trend Unit : JPY 40,000 50,000 35,000 Sales Unit お客様単価 Footfall お客様数 36,667 31,743 40,000 30,000 27,495 29,616 25,000 24,146 24,928 24,853 26,810 30,000 20,000 15,000 20,000 10,000 10,000 5,000 0 2012/04 2012/05 2012/06 2012/07 2012/08 2012/09 2012/10 2012/11 2012/12 2013/01 2013/02 2013/03 2013/04 2013/05 2013/06 2013/07 0 12 2013/9/2

Trade-In (CBB & SCB) Results with Metal Market Unit : JPY 100,000,000 90,000,000 : 下取 CBB : 買取 SCB -: 金地金相場 Gold Metal Market 5,258 6,000 80,000,000 5,000 70,000,000 4,272 4,007 4,313 4,194 4,294 4,000 60,000,000 50,000,000 3,000 40,000,000 30,000,000 2,000 20,000,000 1,000 10,000,000 0 2012/4 2012/5 2012/6 2012/7 2012/8 2012/9 2012/10 2012/11 2012/12 2013/1 2013/2 2013/3 2013/4 2013/5 2013/6 2013/7 0 13 2013/9/2

Summarized Balance Sheet Unit : 1MJPY Current Assets Fixed Assets 2013/3/31 2013/6/30 Increase/ Decrease vs Last Year 10,324 10,193-131 98.7% 1,636 1,669 +33 102.0% Total Assets (Liabilities & Net Assets) 11,960 11,862-98 99.2% Current Liabilities Fixed Liabilities Total Liabilities Net Assets 4,778 4,728-50 99.0% 289 297 +8 102.8% 5,068 5,025-43 99.2% 57.6% 6,892 57.6% 6,836 +0.0% -56 99.2% 14 2013/9/2

2.Forecast Forecast for the 70 th Term Copyrights 2013

Forecast for the 70 th Term Net Sales Operating Profit Current Profit Net Profit Net Profit per share 8,600 million Yen 390 million Yen 240 million Yen 130 million Yen 4.78 yen 16 2013/9/2

3.New Strategies Copyrights 2013

Start implementing new strategies Joined the DIGICO Group, a DTC Sightholder Mid-term Business Plan: Phase 1 Intensive business streamlining Mid-term Business Plan: Phase 2 Maharaja Diamond Start of New Strategy Implementation Jun 2008 April 2009 October 2010 2013 Start implementing new strategies in 2013! Aim to be a leading company in the jewelry industry while maintaining stable profit. 18 2013/9/2

New Corporate VISION BEAUTY FOR EVERYONE Beautify all women. As a pioneer of jewelry retail business, Verite offers all women jewelry that is exciting, just by wearing it. Jewelry that makes their everyday sparkle, help them stand out, and filled with confidence. Until now, from now, and forever Verite will continue to provide jewelry that adds beautiful brilliance to all women. 19 2013/9/2

Measures for New Strategies Objective: Establish a stable profit mechanism in Verite 1 Multi-brand strategy Efficiently cover the market and reinforce profitability 2 Maximize customers lifetime value (LTV) in link with CRM 3 Thorough Supply Chain of DIGICO 20 2013/9/2

Aim of Multi-brand Strategy 360 market-covering Multi-brand Strategy Handle individual brands to meet diverse values of different customer groups Verite Maharaja MiMiKaZaRi = 360 Jewelry market coverage 21 2013/9/2

BRAND VISION/DNA A DIAMOND FOR EVERYONE CORPORATE VISION BEAUTY FOR EVERYONE PRODUCT BRAND VISION 22 2013/9/2

THE NEW BRAND DEBUT In summer 2013 QIREINI will make its debut as a Heart & Cupid Diamond Brand. QIREINI is a proof of a stronger diamond radiating in even more exquisite brilliance. QIREINI delivers a beautiful, brilliant premium Quality to women who wish to always stay beautiful in their own way and to live with full confidence. 23 2013/9/2

BRAND CONCEPT / CUSTOMER IMAGE PROPOSAL New Diamond Value Standards: 4C+Brilliance Material Value Emotional Value Women in their 40s & 50s In choosing diamonds, prioritize essential factors such as quality & beautiful brilliance rather than famous brands. Knowledgeable about jewelry, buy jewelry for their own use. Diamonds in stronger, more beautiful brilliance. The supreme brilliance is created by veteran artisans cutting techniques Certificated Global Standards DTC sightholder, DIGICO delivers reliable diamonds from mines to market to offer customers satisfaction in owning highquality legitimate diamonds. BRAND PROMISE Confidence in H&C Ambassador Conversation with expert jewelers Pleasure of discovering a diamond on your own and sharing premium time. Offering a beautifully brilliant high quality to women who wish: to always stay beautiful in their own way, and to live in full confidence. 24 2013/9/2 CEO PRESENTATION Copyrights 2013

4 Core Brands with Common Customer Points BRAND Brand Attributes and Activity Directions 1 A Pioneer of Jewelry Chain Use CRM as a foundation and place importance on LTV by retaining VIP customers. Increase freshness of merchandise. 2 3 High quality Bridal Brand Strategically operate this brand as a highly profitable strategic brand to cultivate department store distributions. One-and-only Designers Pierced Earrings Specialty Store in Japan Aim to secure open display cases on the accessory floor by making use of dominant merchandise assortment as an ammunition. 4 One-and-only brand specialized in in Japan Expedite diverse channel development of H&C diamond as a brand with strong awareness and reputation as a H&C brand, synonymous as Verite. 25 2013/9/2

Integrate DIGICO Group s Capabilities & Improve Supply Chain Maximize the group capability of DIGICO, a DTC sightholder. Improve accuracy of quality & operation in all fields of supply chain, from MD development to the touch point with consumers. Design & MD Development Purchase & MD Manufacturing Distribution & Marketing Strategic Door Plans Always conscious of cost for value. Alert to trends and stories in proposing designs. Increase ratio of overseas procurement to cut down on manufacturing cost while committed to slash wasteful cost to the maximum. Committed to proper distribution of budgets, budget control based on ROI as index, & effectiveness measurement Choose doors possible to reinforce branding & run business there to improve ad effects. 26 2013/9/2

Comparison of Diamond Distribution Routes Standard Diamond Distribution Routs 1 2 3 4 5 6 De Beers (DTC) Sightholder Overseas dealers Importers Manufacturer (process) Manufacturing wholesale secondary Retailers Diamond Only 70 in the world Import Process/ manufacturing Productization Sales to customers 1 2 De Beers (DTC) Verite s Diamond Distribution Route Since a Holding company is a DTC Sightholder, quality diamonds are secured Diamonds are polished & processed at Group s factories and imported to Japan Diamond DIGICO GROUP Only 70firms worldwide 27 2013/9/2

FOCUS of New Mid-term Business Plan Design & MD Development Purchase & MD Manufacturing Distribution & Marketing Strategic Door Plan FOCUS Strengthen this part of supply chain, and establish highly competitive Verite with jewelry manufacturing/retailing functions Strengthen strategy and take action 28 2013/9/2

New Corporate VISION BEAUTY FOR EVERYONE Beautify all women. As a pioneer of jewelry retail business, Verite offers all women jewelry that is exciting, just by wearing it. Jewelry that makes their everyday sparkle, help them stand out, and filled with confidence. Until now, from now, and forever Verite will continue to provide jewelry that adds beautiful brilliance to all women. 29 2013/9/2

IR CONTACTS This document contains descriptions about future performances. They, however, are not guaranteed, as risks and uncertainties are contained in them. Please note that future performance is subject to change, depending on business environments. Any comments or inquiries for this information, please contact below: Vérité Co., Ltd. Business Planning Div. (Yodono or Dobashi) Tel +81-(0)45-415-8870 Fax +81-(0)45-329-1588 E-mail verite_ir@verite.co.jp Vérité Co., Ltd. DIGICO Group http://www.verite.jp/ http://www.digicogroup.com/ 30 2013/9/2

Reference Data on the 70 th Term Quarter 1 Results Briefing September 2, 2013 Vérité Co. Ltd. (code:9904) Copyrights 2013