Tiffany & Company 2016 Investor Day April 12, 2016 Corporate Speakers         

Mark Aaron; Tiffany & Co; VP, IR Frederic Cumenal; Tiffany & Co; CEO Caroline Naggiar; Tiffany & Co; SVP, Chief Brand Officer Pam Cloud; Tiffany & Co; SVP, Global Category Marketing Jean-Marc Bellaiche; Tiffany & Co; SVP, Strategy & Business Development Philippe Galtie; Tiffany & Co; SVP, International Retail Jennifer de Winter; Tiffany & Co.; SVP, Northern America Retail Andy Hart; Tiffany & Co.; SVP, Diamond and Jewelry Supply Ralph Nicoletti; Tiffany & Co.; EVP-CFO

Participants                  

Lorraine Hutchinson; Bank of America-Merrill Lynch; Analyst Rajeev Bhaman; Oppenheimer; Analyst Teresa Donahue; Neuberger Berman; Analyst Francesca Di Pasquantonio; Deutsche Bank; Analyst Laurent Vasilescu; Macquarie Capital; Analyst Bob Drbul; Nomura Global Research; Analyst Oliver Chen; Cowen and Company; Analyst Dorothy Lakner; Topeka Capital Markets; Analyst Anne-Charlotte Windal; Bernstein Research; Analyst Paul Swinand; Morningstar Investment Services; Analyst Brian Nagel; Oppenheimer; Analyst Janet Kloppenburg; JJK Research; Analyst Maribeth Holland; Sutton Place Capital; Analyst Randy Konik; Jefferies & Company, Inc.; Analyst Kimberly Greenberger; Morgan Stanley; Analyst Zachary Sacks; Waddell & reed; Analyst Paul Lejuez; Citi Research; Analyst Dana Telsey; Telsey Advisory Group; Analyst

PRESENTATION Mark Aaron: Good morning to all of you who are here today at Tiffany’s corporate office in New York. We also say good day to those of you around the world participating in the webcast. We truly appreciate your interest in Tiffany and I am personally delighted to see so many analysts and investors here who have followed Tiffany’s progress over the years, and in

fact, over decades. Before we continue, you need to please note our Safe Harbor statement on this slide. I’ll let you read it. Here, you can see the agenda for today’s meeting, beginning with some opening remarks from Frederic Cumenal, our CEO. Members of Tiffany’s senior management have prepared presentations about their areas of responsibility and strategies, and we hope you find their remarks to be interesting and informative. Our formal remarks, in total, will run about two hours and then we’ll have time to answer some questions from those of you in attendance here. I wanted to just mention that we’re not taking a break during the presentation, so please feel free to get up at any time to grab coffee or snack or to use the restrooms which are located in the foyer area that you entered when getting off the elevator. We also ask that you hold any questions until after we have concluded those prepared presentations. In addition, we ask for your indulgence in turning off or at least silencing your cell phones and other potentially noisy electronic devices, whatever they may be, so you do not disturb others in this room and those investors listening to the webcast. If you need to use your phone, we request that you please step out of the room. Lastly, I want to give a special thanks to my Tiffany colleagues who, without specifying the long list of names, have collaborated with us in producing our event today. So I think we can now begin and I’m delighted to turn the podium over to Frederic Cumenal. Good morning, Frederic. Frederic Cumenal: Good morning, good morning to all of you. Let me say, it’s a great pleasure for all of us to welcome you. For those of you who are here in person in our corporate office and also the investors around the world who are listening at our webcast. We know, frankly, that most of you have become very familiar over the years with our Company, our strategies, and our growing global presence. However, we thought it would be very timely for us to host today’s meeting in order to give you the opportunities to hear directly from our senior executives about our wide-ranging strategies that are intended to deliver attractive returns to shareholders. After the presentation, and as mentioned by Mark, you will also have the opportunity to ask questions. Before turning the microphone over my colleagues, I’ll begin by reiterating that Tiffany’s overall financial results in 2015 were disappointing. You are all familiar with the results we reported a few weeks ago and I wouldn't be going over the numbers again. Results were pressured by a number of macro challenges but we have also acknowledged that there are areas within our control that need to be advanced. As a result, we are all working very hard to make Tiffany a stronger brand and a more profitable and qualitative business. Our long-term aspirations for this magnificent brand continue to be boundless.

The macro challenges that Tiffany faced in 2015 are rather [abused]; a strong US dollar, weakening economies, geopolitical tensions and a decline of the price of oil that reduced the purchasing power in key growth markets. We may need to get used to those challenges though, but we also need to operate our business more effectively and efficiently so that Tiffany can deliver a solid performance regardless of this environment. There were bright spots in 2015, including important product launches and the continuing rollout of the very successful Tiffany key collections. We also enjoyed growth by reinterpreting iconic key collections, such as our Return to Tiffany, Victoria and Infinity collections. Our statement business was very strong, validating our strategy in recent years to innovate the brand. We had a very successful re-launch of Tiffany watches with messaging that elaborated the brand’s New York DNA. In fact, and as you know, we achieved full year first growth on a constant exchange rate basis in all regions except the Americas. And while our earnings for 2015 did not meet the objective we have set at the start at the year, we did exceed our objective for free cash flow generation and returned a substantial amount of cash to shareholders. Looking forward, I’m very proud of the talented management team we have assembled, a team committed to driving our business forward and achieving global growth. One such example of Tiffany’s innovative strategy is our new e-commerce collaboration, announced this morning, with the online luxury fashion side Net-A-Porter. The only authorized online destination beyond Tiffany’s omni-channels where customers will find a creative collection of Tiffany & Co jewelry, Net-A-Porter and their same style authority will reintroduce Tiffany to a highly engaged and fashion-conscious global consumer in over 170 countries. This significantly furthers the reach of Tiffany’s e-commerce presence, currently in certain markets, to a new generation of customers wherever they shop. And ultimately, regardless of channel, all of us are focused on delivering attractive shareholder return through sales growth, margin expansion and free cash flow. The four pillars of Tiffany achieving attractive TSR are first, strengthening Tiffany’s position as one of the world’s most important luxury brands through appropriate brand positioning, marketing communications and product design innovation. Second, enhancing the consumer experience through optimizing the store network, a more proactive customer engagement, and richer sales training and development. Third, we see further opportunities to advance our business operations including further refinement of our supply chain, enhancing our IT systems, and the further development of the companywide global procurement process. And fourth, capital stewardship that results in strong cash flow generation, maintaining balance sheet liquidity and providing us with the opportunity to return value to our shareholders.

These four pillars represent a roadmap for Tiffany’s future success and for our ability to achieve attractive TSR over the long-term. These pillars rest on the strength of our organization and culture that everyday celebrates of core value of innovation, integrity and corporate social responsibility. Today, you will hear about the initiatives taking place in each of those pillars. Pam, Caroline and Jean-Marc will expand on strategies in our merchandising and marketing. Philippe will talk more about our efforts to make Tiffany more consumercentric so that we deliver an even better in-store experience. Tiffany has a vast companyoperated distribution network that spans 27 countries with potential to reach enormous audiences that have not yet experienced the excellence of Tiffany. To give you a picture of this global retail organization, Jennifer will talk about the Americas region and then Philippe, our international markets. Our growing global business requires a highly efficient and competitive supply chain. Andy will give you an overview of this important area. And finally, Ralph will share our financial initiatives that are in service of cost efficiency and asset productivity and how they can support our future capital allocation. So we clearly have a lot to cover in the next couple of hours. And before introducing our speakers, I nevertheless want to mention three Tiffany obsessions. The first is our brand. This is our DNA. This is our main asset and raw materials. We believe Tiffany is, and will continue to be, amongst the most admired and desired luxury brand on earth. The second obsession is with our customers. We are quite simply in the business of making their dreams come true. And third, an organization and culture devoted to always doing the right thing as we meet our mission of creating beauty for an inspired life. Let’s now begin with a closer look at Tiffany’s world of merchandising and marketing, and please welcome Caroline and Pamela. Caroline Naggiar: Today, Pam and I will be sharing with you an overview of our brand positioning, the Tiffany customer, our marketing approach, and a category overview. Let’s start with the Tiffany brand. Tiffany is an extraordinary brand. We are almost 180 years old. So iconic is our brand that we have a trademarked color. We are in the permanent collections of many great museums worldwide. We introduced one of the most famous pieces of jewelry in history 130 years ago, the Tiffany Setting engagement ring. And we have a box that makes hearts beat faster. Tiffany has changed our history with our extraordinary designs, and we have changed the lives of our customers with the deep meaning and breath-taking beauty of our designs. We say that our noble purpose is to create beauty for an inspired life because beauty is emotion tethered to dreams, capable of moving us all in the deepest possible way, and we believe in a life filled with love and beauty, a life filled with energy and intellect, curiosity and culture, wit and charm.

The Tiffany brand is a unique alchemy of legendary excellence, pure elegance, radiant optimism, love, and yes, New York creativity. And while we’re lucky enough to have a broad product offering from the accessible to a $10 million pendant, it all springs from a clearly defined design, aesthetic, style and set of values. We design for the Tiffany woman and the Tiffany man, those who have a refined style, those obsessed with design and quality, and those who lead a life rich in love and connection. Tiffany is honored to play a very special and important role in our customers’ lives, and it began, of course, in 1837 when Charles Lewis Tiffany established the legacy of beauty that is perfect, profound and inspiring. After almost 180 years, we know what matters, what is right, and what brings lasting joy. And because of this, our customers trust us and share with us their love, their lives and their dreams. We have the opportunity to play three distinct roles. We create symbols worthy of love expertly crafted and exquisitely rendered to honest, deepest connections, highest hopes and strongest emotions. We design the most important expressions of style because when design is perfect, it transforms the utterly and irrevocably changing the way we move to the world. And finally, we allow our customers to say in the best possible way thank you or I’ll never forget you and even I love you. And then there is, of course, how we act. We know that each Blue Box holds an important story. We pursue perfection in every aspect of our service. We are experts, with wisdom and understanding. We share the inspiration stories behind our designs. We act with elegance, warmth and grace. We build lasting relationships. We do the right thing, guided by heart and soul. We honor the legacy and enrich the legend. We’ll talk a little bit about the Tiffany consumer. Around the world, Tiffany is positioned to invite in a wide range of customers from those seeking accessible luxury, fashion purchasers, of course, bridal and engagement, those seeking delightful and meaningful gift, men buying watches and accessories, and the connoisseurs of the world who choose Tiffany masterpieces to add to their collections. And while this is a wonderfully expensive group of potential customers, they do, in fact, have much in common, and appreciation for luxury, legacy and authenticity, a passion for a refined timeless design and fine craftsmanship. Tiffany invests significantly in consumer research, seeking insights that help us refine our strategic choices in media, messaging and product concepts. Around the world, we conduct quantitative tracking and segmentation studies as well as category and target audience-specific qualitative studies to better understand cultural norms and mores, consumer shopping, media consumption and competitive dynamics. Of special interest, of course, among our many important target audiences are millennials, who are a focus of our product and marketing work. We believe that Tiffany

is uniquely positioned to connect and engage with the millennial audience. Beyond our fantastic style offering at accessible prices and the new designs we’ll be introducing 2016, we can tell stories that millennials care about. We’ve been in the business of celebrating deepest love and connections for almost two centuries. Tiffany’s authentic brand was an extraordinary history as an innovator in design, materials and craftsmanship, and then there’s Tiffany’s long involvement with CSR involving the support of the environment. Tiffany is best-in-class in our digital communications and constantly working to innovate in that space. To bring this extraordinary brand to the world, it requires powerful consumer outreach. We work to craft 360 degree marketing plans to reach the right customers. We’re continually working to optimize how we engage consumers on tiffany.com. We express our brand through digital and social media channels basically 24 hours a day and we reach out to our customers through CRM programs to help build long-lasting relationship. Our major product initiatives are accompanied by 360 marketing toolkits that can include P.R., events, CVM, tiffany.com, social media, video, digital advertising, search, CRM, emails, print advertising, outdoor and catalog. And here is a sampling of some of our recent marketing work in the disciplines; magazine, newspaper, catalogues, which gives us a wonderful editorial platform to express our fashion ability and style; public relations which includes press outreach, events, and, of course, red carpet and digital. And here is the [confetti] of platforms that we feed with news of the brand and a sampling of that content. It’s worth pausing on digital work because it is such a passion for Tiffany. We were ranked number one in the jewelry and watch category, and in the top 10 -- among the top 10 specialty retail brands by L2 for luxury digital intelligence firm out of NYU. In 2015, our Instagram following grew by 167% in traffic to tiffany.com, grew over 50% from our social media, reflecting its quality and ability to draw interest and engagement. And, of course, our Ring Finder app, which helps folks find their dream Tiffany engagement ring, and even includes the ring sizer and a way to virtually try on a beautiful Tiffany ring, and it’s been downloaded over four million times since launch. A quick look at our marketing spend and you can see that our annual marketing spend has been tracking between about 6.4% and 7.4% of net sales for the last five years. Pam Cloud: Thanks, Caroline. Good morning. I’m Pam Cloud and I am pleased to present an overview of our product strategies.

Tiffany has five key product categories. Within each, we are actively managing the existing product portfolio, developing a new product pipeline and working closely with our marketing and retail and visual merchandising colleagues on the execution of our product strategies and messages. In 2015, the bridal category consisting of engagement rings, wedding bands and band rings, accounted for 29% of our total sales. It is the heart of our business. We believe that the Tiffany Setting is the most famous piece of jewelry in the world. And this year, on its 130th anniversary, we will celebrate the Tiffany Setting as a legend. The fashion jewelry category includes our fashion silver, fashion gold and designer businesses, and in 2015, accounted for 42% of our total sales. Our collections reenforced Tiffany as a house of style in the world. In fine and statement jewelry, we leverage the glamour of extraordinary diamond and colored stone collections, which range from this $15 million necklace featured on the slide to our beautifully and classically designed Victoria collection, which continues to be a focus for us as we have recently launched new items to complement our existing offering. In watches, we plan to continue our work to establish a strong position in the category. And finally, we view the gift business as an area of potential growth for Tiffany. It provides us with an opportunity to invite our customers into our stores, again and again, to help them find the perfect gift for a wedding, a new baby, an anniversary or just because. In any of these categories, the decision to launch new products depends on multiple factors. There is a balance between launching entirely new collections and adding newness to existing iconic collections. To develop new, we look at the needs of the business, feedbacks from the markets and new ideas brought forth by our design teams, our product development team or our marketing team. Then we carefully phase out the calendar, allowing time for new collections to maximize their potential while adding newness to existing to move them forward as well. Now, let’s take a look at a couple of specifics within each category. Bridal; this year, we celebrate the iconic Tiffany Setting. Love is at the heart of the brand’s character, and bridal is the foundation blocks of the brand’s equity. This year, as it marks its 130th anniversary, we will celebrate it. For new products on the occasion of its anniversary, we plan to launch the Tiffany Setting in diamonds [Pavay]. This diamond encrusted band and six-prong setting illuminates the center stone and celebrates the style. This ring will be offered in limited numbers in 2016 and then launched in select worldwide doors in 2017. Featured here is an 8.5 carat DIF stone launching at our Blue Book collection this week for $2.3 million. In the fall of 2016, we also expect to launch a rose gold version of our Tiffany Setting to complement our existing platinum and yellow gold offering.

And finally, Tiffany Celebration rings and our assortment of wedding bands and band rings are an important program to us, whether an expression of love or marriage or a moment of achievement, these rings showcase individuality and express style. Now, Caroline will talk a little bit more about our anniversary plan. Caroline Naggiar: We thought it might be interesting for you to see a quick case study of how we do some of the category marketing, and our example today is our 2016 bridal campaign. It turns out as we’ve been saying that indeed, 2016 marks the 130th anniversary of the Tiffany Setting. And we decided to use this opportunity to communicate the Tiffany difference to our superior craftsmanship which re-enforces Tiffany’s legendary status in diamond authority. To prepare for this campaign, we conducted extensive consumer research in both the US, China and many international markets. And we found out what territories consumers cared about when buying an engagement ring. Not surprisingly, they turned out to be quality, legacy and heritage, craftsmanship, design and innovation, sourcing and exclusivity. Then we tested scores of claims that Tiffany could make within these critical territories to help us refine clarity on what the Tiffany difference, how it should be articulated. And if you will indulge me a reading, here are the most powerful facts. Tiffany rejects 99.96% of the world’s gem-grade diamonds. Tiffany diamonds are cut with the most exacting proportions to reveal the superior, striking diamond. Tiffany diamond engagement rings are handcrafted, hand cut, and hand polished just as it was done in New York 130 years ago. Tiffany goes beyond the standard 4Cs to grade on presence, a unique fifth element that impacts a diamond’s brilliance, scintillation and dispersion in profound ways. With 130 years of engagement experience, Tiffany offers diamond expertise you can trust. Tiffany’s superlative grading standards are reflected in the Tiffany Diamond Certificate, which we stand behind with a lifetime warranty. So this year, we launched the three-prong engagement campaign. The first part which has been in market since last year is the emotional layer, with copy that has a voice from the ring giver and always begins, Will You. The second layer, the new layer, is the promise from Tiffany artisans and it has a copy that always begins, I Will. And the third layer is our institutional claim for the anniversary which where the headline says, 130 years ago we lifted a diamond and created a legend. Let me show you some of the new advertising work. Here is a close-up on the copy. The copy reads, I will reject 99.96% of the world’s finest diamond because there’s a difference between quality and Tiffany quality. And this is said by Melvyn Kirtley, Tiffany’s Chief Gemologist for over 31 years.

The next ad read, I will craft a setting so flawlessly that the exquisite diamond it holds seems to float, just as it was done 130 years ago, said by Tomasz Dziwura, Tiffany & Co setter for over 15 years. And finally, I will polish a diamond’s 57 facets with exacting precision and if only 56 of them are brilliant, I’ll consider it a failure, a quote from Manek Patel, Tiffany & Co polisher for over 13 years. Please take a look at our campaign video. (Video Playing) Pam Cloud: Now I invite your attention to our jewelry collections. In 2015, our fashion jewelry collections represented 42% of our worldwide sales. Featured here are our most important collections that represent a significant portion of our fashion business. We manage this robust portfolio with targeted introductions annually; the volume of introductions is cased with an ion innovation. Starting with Tiffany T, launched in 2014, Tiffany T is already an icon for us. In 2015, we launched new items within Tiffany T, including the charming new Tiffany T Smile collection, and we plan to refresh with newness as we go through this year. Return to Tiffany launched in the late 1960s is a symbol of optimism, beauty and love, which lie at the heart of Tiffany’s legacy. This always popular collection is typically infused with newness each year, and we’ve had a particular focus to address the softness and the under $500 segment. We expect to add newness to RTT continuing now and going to the remainder of the year. Atlas and 1837 represents strong design messages for us and heritage messages for us. And finally, our Charms program delights our customers with playful and whimsical style that come with personal messages and symbols to mark collecting and occasion. Let’s take a look at some of these collections in our recent communications. Our new Tiffany T wrap style featured here in yellow gold, sterling silver and rose gold with diamonds, launched this past holiday, they complement our iconic square message as seen here in the recent Tiffany ad. Newly launched, our Return to Tiffany Love collection, launched in our New York store in March and rolling out to all US stores this month, this is an important part of our planned newness in the silver jewelry category. These items will support the iconic RTT bracelet and our new RTT dangle style at launch this fall. Here’s some of our work in Atlas; a newness in the Atlas collection would be dangles. 1837, a collection we expect to refresh later this year as we move into the holidays. And

our Charms story; Charms are the perfect gift for new mothers, for anniversaries, and for holidays. We expect to develop our Charms collections in both gold and silver to reach accessible price points with the intent of fostering repeat purchases. Our name designers are a source of style that we believe will continue to generate excitement in the fashion category. First, Elsa Peretti, whose offerings have been revolutionary to jewelry designs for more than 40 years, to Paloma Picasso whose jewelry expressed a joyful, bold and colorful energy, and Jean Schlumberger who brought the world a new vision of jewelry design and showed how wonders of the natural world could be transformed into jewelry of mesmerizing beauty. And we believe the world loves gifts from Tiffany both in jewelry and non-jewelry. Outside of the jewelry category, we plan to add new items to the assortment and refresh our existing offerings. And last but certainly not least, our statement, fine and solitaire category. Tiffany fine collections are distinguished in the marketplace by extraordinary stones and irresistible designs. Tiffany keys are an iconic design and a symbol of all that’s possible. With planned new introductions annually and an expansive existing assortment, Tiffany keys provide seemingly endless opportunities for our customers to find and express their individual style. And finally, we offer the beautifully designed collections of Tiffany Victoria, Tiffany Soleste, Enchant and our yellow diamonds, which epitomize graceful, classic and feminine design inspired by both the natural world and our icons. A recent Tiffany keys ad was the message that keys unlock the possibilities in life, featuring some of our newly launched keys from this fall. And our Victoria marketing campaign, which featured our newly refreshed Victoria collection, and finally, our yellow diamonds. I will now turn it back to Caroline who will speak about our statement jewelry and the 2016 Blue Book collection. Caroline Naggiar: Our yearly Blue Book is Tiffany’s annual couture collection, and it is not just for those of you who will buy these masterpieces. It gives proof our extraordinary artistic and craftsmanship credential and declares our belief that we are quite simply the most important jeweler on earth. It’s with stars like Cate Blanchett wore at the Oscars this year, and it gives us rich stories to tell through public relations and all our digital feeds. This year’s collection has nine pieces over $1 million, in fact, two over $10 million, 20 different diamond cuts, and 32 different varieties of colored stones.

Each year, the Blue Book is inspired by a poetic theme, and this year, it is the art of transformation. Transformation happens, as if by magic, in the quiet places that we so easily overlook, where all is still. But just below the surface, a new and brilliant world unfolds. Cocooned in silence, shapes shift and transform, slipping from one element into another. Intricate treasures are unveiled. Life unfurls, stretching, pushing vigorously upwards until stillness bursts into extraordinary beauty. Please take a look at Tiffany’s 2015 masterworks. (Video Playing) Caroline Naggiar: Thank you very much. We’re pleased to introduce Jean-Marc. Jean-Marc Bellaiche: Thank you, Caroline. Good morning. It is 10:08 at my CT60 automatic rose gold chronograph. We are on time which is great as we start talking about watch. Let me start by telling you why we think it’s important for Tiffany to succeed in watch. We see four key strategic rationales. The first one is pretty obvious. Luxury watch is a big high margin market where many jewelry brands had succeeded. It represents up to 50% for some, and more than 15% of sales for most luxury jewelry competitors. So it has a big potential for Tiffany, with management believing watch sales could, in the longer term, comprise 5% to 10% of a sales. Also, this is a high-margin category, so we have a potential to create significant value for our shareholders in the long-term with this new pillar. Number two, it is also a way to enhance our brand. It’s a great platform to talk about our unique heritage and craftsmanship. Moreover, it is a category with relatively high price points, which we believe will further help to elevate our brand. Third, it is also a way to better serve our existing customers. Watch is a different platform to express the Tiffany style and continue to delight our customer. With a strong watch offering, we will also be able to better cover such as occasions to mark key milestones, key celebrations and key gifts. And finally, we can also [tweak this] watch. Men, of course, as the watch market industry-wide is 60% to 65% masculine. We have many men in our store to buy gift for their loved ones and we can raise their interest with watch. Chinese men in particular in the luxury watch category is big in this market. So when we talk about the strategic positioning for our watches, we believe that there are three emotional zones that are triggered when a customer decides to spend in the luxury watch. I invite you to look at the left side of the slide.

They can be attracted by what’s inside the watch, the quality of the movement, the complication. This is the craft dimension. On this dimension, we want to be credible to produce watch of outstanding quality but we know that it will take time for us to compete with the leaders. The second emotion can be summarized with this gesture. When you want to show your watch, when you want to be seen with your watch, you want to show your success with an expensive watch. Here again, we want our watch collection to become iconic but our products are not designed with the goal of signaling [status]. Quite the opposite, we think we could flip the argument and becomes the best alternative to some of the big brands. Sometimes you go at a dinner and maybe in this room and you see many people with the same watch. Where is [this credibility] here? Tiffany, during its launch, has a terrific opportunity to become the refined alternative to all those big watch brands, these are best [secretive] stone, the watch of the one in the know who want to be different, yet not ready to go for niche brands but instead to go for one of the most desirable brands in the world but not too distributed yet in watches. So if you understand from the chart on the left, the main focus is going to be on the third emotion, the why I love this watch, the design. We are going to focus on designing beautiful watch, building on our unique style. Beyond product , if I talk a little bit about the other dimension of the [core piece], we have decided to re-establish our watch business at the cost price point of the best luxury watch player, entry price point around $3,000, [core] between $5,000 and $10,000, and with a significant business above $15,000. We are going to target our existing consumers in our stores, so mainly female, although you might have noticed that we have started with men because we really wanted to build on a strong history and heritage and we wanted to build credibility with men first. So we start in our stores, we have a fantastic global network with strong presence and customer relationship and we believe this is a great asset to leverage. We will consider to entering to multi-brand watch store only later when we are strong and successful and demanded by these retailers. Now, you could argue that man y players are trying to focus on design. The world does not need another brand for watch. So what is unique? We think there are two points of uniqueness that we can bring to the market of watch. The first one, of New York origin, I don’t understand why people think the best luxury watch should only come from French, Swiss and Italian brands. We are from New York,

we have a great style and we can design watch that have this clean, neat aesthetic and be different from all the other players. We can also leverage the energy and aspiration from New York, what we called the New York minutes in some of the video spots that you’ve already seen. After all, this is probably the most known and desired city on earth. The second point of uniqueness is based on our unique heritage. We designed and sold our first watches in 1847. This is about 30 years before Cartier, 60 years before Rolex, 130 years before Bulgari. We opened in 1863 what was at the time the largest watch manufacturing facility in Geneva. A few years later, we sold it to [Patek] who would produce Tiffany watch on there for many years. This is unique. And what comes with it is its unique archives as well. All our existing watch collections are strong goods, history and story. The Atlas collection, for example, was inspired by the Atlas clock that [the founder] and styled in front of its New York store in 1853 to differentiate from another competitor who opened in front of us, the same clock that New Yorkers would use to set their time since it was one of the first public watch and very visible public watch in New York. The CT60 collection that we launched this year was inspired by a watch that we crafted in 1945 and was worn by President Franklin Roosevelt when he was rebuilding the new world at the Yalta conference. And from there, we created a few collections -- a full collection with beautiful models and color. The East West is inspired by our first watch from our archive that should open and read horizontally, a new take on time, and, of course, our jewelry watch from the 1920s and the 1930s of such a strong source of inspiration. The cocktail line here is a good example. The pictures on screen are beautiful, but to see the real pieces, the actual pieces even better, and we have a few samples at the back, so invite you to have a look. And, of course, if you’re interested, you know where to find us. So I hope I was able to share with you a bit more about the why and the how. Let me close by stating why we believe that this re-launch is going to be a success for Tiffany. There are four key points that I want to highlight. The first one, we have much more control than ever before. We don’t do one-stop shopping going onto to one supplier anymore. As we speak, we have been a team of more than 50 people in Switzerland. We design our watch, select the best supplier for each component one by one, dial, case, hand, bracelet and, of course, movement, orchestrate the quality of each component, ensure the assembly, and we just started as we speak this month to assemble some of our collection internally. And, of course, we do the Atlas self-service. So control is stronger.

We’re always fully focused on our unique DNA, our unique point of uniqueness and we believe we have great storytelling on top of having great watches. We have planned to remain very focused and consistent on our communication platform, our point of uniqueness around New York, New York style, New York energy or heritage or archive. Third, we are investing behind this new pillar. For the first few years, we plan to invest gross margin dollars into marketing, retail activation and building of Swiss operations to build further awareness and [sustainability] for our watch business. And lastly, we are committed behind this pillar for the long run. We see this as a marathon, not a sprint. This is why we started by building the key foundational brick with men mechanical watch. Many brands would [address] to woman diamond watch which is so obvious for Tiffany, but we think we need this credibility and we need to build on our heritage. More diamond woman watch will come in the next few years, of course. We believe we will succeed because we are investing (inaudible) and we’re very committed through time and for the long time. Thank you and I’m pleased to welcome Philippe who will talk about our amazing plan on customer experience. Philippe Galtie: Good morning. I’m Philippe Galtie, and I’m very happy to share some of our client experience initiatives. But first, allow me to say I’m thrilled to have joined this amazing house last year and I really believe in this potential as one of the most desired brand in the world of luxury. Customer experience is one of the most critical challenges for luxury brand because as we already know, the age of digitally empowered customers, customer motivations have changed, they want experience and not just buying beautiful creations. On this slide that outlines the key drivers which have contributed to the development of luxury market in the past 30 years, we see that luxury rose to design for the elite in the 80s then accelerated in the 90s with the emergence of global brands which then enjoyed a growth acceleration from retail expansion. Now, on top of all these levers, which are still very strong engine, of course, we have the client who is ever more demanding and really believe that superior client experience will be an additional critical engine of long-term growth. So our strategic focus in retail, as Frederic Cumenal said, is to foster a culture of client centricity and service excellence. This ambition is based on the following four key pillars. One, the acceleration of our sales development linked to our CRM and [customary treatment].

Two, the store design and network management, the physical store needless to say plays an important role in the customer experience, and nothing can, you know, replace a meaningful in-store experience. Third, the mastery of service excellence which is the bedrock of retail performance, and, of course, a moment of truth with the customer satisfaction. And fourth, the omni-channel and digital integration model we are currently in the process of building, leveraging our leadership in terms of digital competence among jewelry and watch category. Let’s talk about the first pillar. The Tiffany brand, a special meaningful for so many special moments of celebration in life, and Tiffany enjoy a large customer base, we are talking in millions here, with whom we have the opportunity to build loyalty and create more repeat purchase. And it’s critical for us to turn the one-time engagement, a bridal customer into a lifelong client, and to develop through local clientele as well as [stories]. That is why we are currently running two streams of activities. First, the CRM strategy, all markets, all stores, all sales professionals implement planned activation programs based on CRM tools with specific targets like the repeat customers and with executional guidelines regarding outreach and high touch point for key customers. In this respect, we are fine-tuning our current global customer segmentation model which we believe will enable us to increase the effectiveness of our CRM activation plans for personalized treatment based on client product preferences and with a view to build longterm relationship and increase loyalty rate. To develop those CRM capabilities, we have established a centrality of skilled experts including data analyst and talents coming from other top companies and industries. These CRM experts seen in headquarter and in region along with our investments in the systems and with our infrastructure and processes enable Tiffany to have a global customer management approach. As you would expect we also have coordination between China and the Chinese tourist destination developing innovative digital plans and building together a global Chinese customer activation program. We are targeting especially the free independent travelers. And second, we have systems and customer analytics at play here. We want to continue to improve the performance of our systems and their integration and to keep leveraging customer amenities to better our sell our clients. Never before has Tiffany so holistically used its customer data and it goes without saying that we are serving our customer with an addition to exceed our client expectation. To

ensure that our global customers are being served in a consistent Tiffany way, we have now the capability for single view of our client globally which is the bed work of world class CRM. Nevertheless, our ambition is to go further and we also currently investing and working on analytics solutions to provide business teams with richer and more insightful data combining all customer touchpoint. We're talking here about CRM data mark associated with new technology platform which brings new tools and all of these should improve the [integrity] of targeted campaigns and should reduce the cost of information production and that will also improve the data quality as well. We believe this will improve our business decision and action plan and we are going phase by phase and we'll gradually accelerate the rollout. Second pillar is a store network evolution. The physicality of our store plays an important role in the client experience because, of course, the store remains the major channel for purchase even if digital is playing an increasing influence in the client journey. Naturally, we plan to continue our strict approach in terms of footprint and network management with every single project, new store or extension or relocation meets our requirements in terms of brand experience and potential for financial contribution. But we also maintain the quality and relevance of our stores in every single market. Actually, our store concept is carefully managed along three dimensions. The image expression through design and architecture that must reflect the brand qualities and values and also story telling. When you visit the Tiffany store in a nutshell we want the customer to feel inspired and jived and uplifted by the creativity of the legendary house of Tiffany and by the vibrancy and glamour of New York. The second dimension of the client journey, from windows impact, the windows are our last touch-point before entering our stores, together with great creative and visual merchandising to the welcoming, to the comfortable browsing, to the selling ceremony with more mobility and symmetrical with more comfortable sitting. We're increasing for example the number of sitting table when we're renovating. We are moving towards a more conservative model and we also plan to create more sophisticated private rooms. And third is the commercial dimension which is linked to the circulation in the store, to the readability of the different zones and product categories recognizing that stores have a different role to play between our flagship or flagship store or product retail or hightraffic area.

We need to incorporate local specificities and its relevance and we also need to fine tune the assortment. Therefore, the animation of the showcase line is critical to support the launches or to highlight our creations. We keep evolving the concept through renovation and opening or relocation. For example, we regularly work on the efficiency of our showcase lines, the lighting, the product impact, the app program on the walls with respect to the in-store direction, for example, I'm happy to announce that we will use the Audrey Hepburn visual, who was one of the most iconic star and had a special association with Tiffany that will be using our iconography for example. Many other examples being to sitting area at the private rooms. So for us, it's natural to refresh and adapt continually the store. That’s what we do always. We keep in mind the scalability and the cost efficiency of our store design especially to optimize our internal strategy. I'm going to give you some examples of the latest changes we made. This is an example of Taipei Sogo Dunnan. You see the before and the after. Another one in Yokohama in Japan. You see the difference on different aspects. The Chengdu renovation in China. The latest opening of Condotti up in Rome in via Condotti, the opening of Venice in Italy a few weeks ago. As you can see the new design, the energy, the vibrancy, the creativity and the preference values come across most fondly and, of course, we have core element of standardization but nevertheless you can see we are sensitive to give a different touch to each store and not to have a cookie cutter approach. Now we must never forget on the store element the service excellence. It's the fundamental of retail. The interaction between the sales professional and the visitor. It's the most critical touch-point and the moment of truth in the client journey and we believe we can make the difference. We can make a big difference by mastering our art of selling and going beyond the usual standard of service excellence. That’s why we aim to differentiate Tiffany with our Tiffany service signature which is based on an internal selling methods polishing the power of Tiffany culture connecting sales technique with our company values. Honoring the client and recognizing that every blue box hold an important story. So we are doing the following: First, strong investment in training in particular on our store leader worldwide in order to raise their coaching capabilities and to empower and associate beyond the traditional service and selling fundamentals. We have developed an international experience, client experience barometer which allows us to monitor customer service experience in all stores including how our clientfacing teams interact with our clients and this provides a very useful feedback from our customer to keep improving our store operations.

Lastly, we believe retail is people first and we seek to build the most skilled client-facing teams in all markets. That’s why we have a competency model on our commercial talent to use in the design of our training programs and the learning path which are individualized. We are looking at store efficiencies in terms of maximizing client-facing time and resources to convert traffic into purchase. We are implementing efficiency to help expedite non-commercial tax, for example, in order for sales associate to increase the number of client transaction and the conversion rate especially during fixed times. For example, we believe we can further optimize the on-the-floor time in very high traffic stores yet a better match to traffic forecast with more flexibility. There are additional buckets of roles in capturing more values during the peak traffic time [signaling] those some operations. Thanks to info systems and back -- and office IT solutions. The fourth pillar is omni-channel and digitalization model. Our aim is to build a convergence and value creation model leveraging our digital leadership. We have the right foundational elements. Today due to independent consulting firm ranks Tiffany as number one in watch and jewelry category. Thanks to social media due to marketing, ecommerce functionalities and mobile. But what I would like to say here is that, first, omni-channel is about creating a free and frictionless expressions and cross channel like looking up the availability of an item at the physical store, online or buy online and pick up in stores. This is the first part. And the second is to develop some digitalization of the store to elevate the brand experience. Developing omni-channel capability and in-store digitalization is an investment and we present result intensive effort. However, at the same time, it has to be approached with nimbleness. It comes down to which aspects of omni-channel and digitalization will enable Tiffany to enhance the brand experience. So we are building gradually, it's a journey, the convergence between physical and digital is a necessity imposed by the an evolution of the client journey and the omni-channel ecosystem in to which retail is moving. So our vision is really to use the combination of our 300-plus Tiffany-owned stores with our 20 country level websites throughout the world, some of them are e-commerce enabled, and it is upon our already strong digital foundation to deliver more personalized and relevant omni-channel experience to our customers. Personalization is a key component of truly effective omni-channel experience and we know that delivering personalized experience starts with knowing and recognizing our

customer, who they are, their need, their preference and delivering what they want and their need accordingly. So we stand to continue to develop our customer analytics enhancing our current understanding through a 360-degree understanding of our customers and ultimately, to reach them with relevancy and service them in the best possible way. So let me take you through the different components of the roadmap of our initiative. Some are already implemented, some are underway. Our omni and digital strategy is based naturally on the different steps of the client cycle that everybody knows. First, attract and engage with online visits that we have to translate into leads then conversion with leads becoming client and last client; we can retain to generate loyalty and profitability. And there are two types of initiative. The first one is foundational capability needed for what is now customer expected. The operational agility, we believe this is a must have. This is about the physical and the digital convergence and having the best-in-class e-commerce. And the second aspect is to deliver value which is what a brand does to leverage those fundamental omni-channel capabilities to delight customers for customer relation, added value service, digitally [small] technologies and frontline team empowerment. With those both aspects in mind and going a little deeper, we are working on different projects like look-up inventory at nearby stores or online which remove one of the friction points in the client journey. We also plan to extend the in-store routine functionality. Sharing the data -- the software data once the client [obtains], of course. It's a way to enable better experience in store for example. Then the click and collect which means buy online and pick up in store which is a key feature enabling certain markets and we plan to expand beyond the pilot. This is we believe a key component of omni-channel, expect to be more and more available by our multi-channel clients. To retain customers, it's important also to be able to offer the option to retail in store whether it's been processed online without any friction here again. And we further to plan to have the buy online which is an in-store service among other benefits. And, of course, the endless aisle which refer to the ability to fulfill any out-ofstock items from any location. Going further on delivering added value, we plant to leverage our contact centers to improve the online experience in the client journey and develop personalized service among the different possibilities. I'd like to mention this one which is adjust personalized recommendation that is on past purchase for shopping cart and many other benefit experience that are based on the sign-on basis.

As it relates to in-store utilization we are currently enabling the entire network with superior bandwidth capacity in order to provide better service. Thanks to fully integrated transactional tablets or mobile device and optimized checkout solutions. We have already scalable solution which incorporate self-efficient apps to better treat clients and we believe that it will continue this new unique benefits matched to the value of the clients. So in conclusion, I’d like to summarize this rapid overview of our vision on client experience by saying that through the mobilization of our resources and if I may add the passion of our Tiffany team around the world, we are focusing more for strengths of activity, the sales development acceleration through clienteling and CRM activation to the laser-focused management of our store design and store network; third, the salesmanship of our retail teams to master the art of selling; and fourth, big but exciting digital roadmap to achieve world class omni-channel and digital integration. We believe we are polished to become one of the most client centric luxury house and to enhance our position as a strong leader in luxury thereby maximizing revenues and delivering expected retails. Thank you and now I'll turn it over to Jennifer de Winter. Jennifer de Winter: Thank you, Philippe. Good morning. My name is Jennifer de Winter and it's a pleasure to present an overview of the America and our strategic priorities. I joined Tiffany a year ago and I too am thrilled to be a part of this important global luxury brand. In 2015, I was fortunate to have visited all 107 stores in the US and Canada. It was a great opportunity to meet and engage with our retail team and client. Also, to learn more about the business and competitive landscape. I believe we have an opportunity to gain market share and achieve sales growth. The United States represents the majority of the Americas region. While we see continued growth and expansion opportunities in Canada and Latin America, the expectation is that the US would continue to make up the vast majority of the region sales. Distribution in the US is comprised of retail, e-commerce, and business sales. The majority of the US sales are produced by our retail store network. The network is made up of 78 mall based and 17 street locations. If we view the e-commerce channel as a store, it would be our second largest store worldwide after the New York flagship. As you will see in the upcoming slides, our priorities drive sales to the existing store base while renovating our most important locations and opportunistically relocating when needed. We expect there will be limited new store opening over the next several years.

The Canada market has developed quite dramatically over the past 10 years going from one location on Bloor Street in Toronto to 12 locations and an e-commerce site. Latin America today is primarily driven by the Mexico business with 11 stores in that country. There we have a strong department store partnership with Palacio de Hierro. Regionally, our wholesale business expands the Caribbean, Central and South America. The jewelry market is competitive and fragmented. From the luxury and specialty brands to the local independent, department stores, and, of course, e-commerce. Product offerings vary from fashion jewelry, engagement rings, watches, fine jewelry and investment pieces to non-jewelry gifts. While some competitors specialize in one or a few of these areas, Tiffany competes in all categories with our reputation for high quality products, distinctive merchandise, and customer service. As Caroline mentioned earlier, we are committed to ongoing consumer research. Our most recent US tracking study identified Tiffany as having the highest ranking amongst our competition in terms of brand power built on factors like being top of mind, relevance and distinctiveness. We know that the overall brand health and perception in the US is strong with special brand strength and perception of Tiffany making you feel special being classic and being romantic. This month, we are igniting our next wave of consumer research that explores the desirability among our core segment so we can better convert our strong fundamentals into future purchases. With the industry being so fragmented, we need to continue leveraging Tiffany's brand strength to capture market share. Our growth potential is greatly impacted by of our ability to attract new customers and the retention of our existing. Our strategic priorities are focused on attracting the millennial, female and male self-purchaser and recapture the non-jewelry gifter. Using customer analytics and our segmentation models as discussed by Philippe and Caroline, it will provide us more insightful data to improve business decisions and actions. Through the pacing of new product extensions and introductions and enhanced visual merchandising presentations, our goal is to ensure our brand connects with the broad consumer base including both current and potential customers. We have established ourselves as one of the leading luxury brand in the digital space and planned to continue to strengthen our positioning by expanding our presence on emerging social media platforms. It is important that we continue to evolve the in-store experience focusing on a modernized selling ceremony, elevated hospitality program and utilization of technology providing a seamless omni-channel experience allowing the customer to shop anytime and anywhere.

We plan to continue to invest in our store network focusing on our most important stores in our most important cities with the greatest sales opportunity. You will see in the following slides that we are well on our way in executing this strategic priority. We continue to experience sales decline which management attributes the declines in fourth the through our spending due to the strong US dollar. We estimate that the domestic consumer represented approximately 80% of the US business in 2015. While there has been softening in the domestic business, I want to share the actions we are taking that we believe will improve our performance with this customer segment. The retail team has accelerated effort in transitioning from transactional to a more engaging client-telling approach. We are doing this by elevating the in-store experience, strengthening our selling capabilities, and the training and development of our people. We have the opportunity to increase shopping frequency and spend by proactively connecting with, engaging and celebrating life most special moments with our customers. In matters of the heart, we believe Tiffany has no equal. Our associates are empowered with discovering each customer story, engaging in a meaningful relationship, creating a unique and personal experience, and inviting them back again and again. As Philippe mentioned, we are supporting our client-telling efforts with new tools that provide greater sales capabilities. The levers to maximize sales opportunities are increasing traffic, conversion, and average dollar transaction. The teams are charged to drive traffic into the stores to client outreach and creating compelling in-store events, community involvement as well as networking. By increasing our client-facing time and strengthening our selling capabilities, we believe we can improve conversion rate. And through customer frequency, we believe we can increase our average dollar transaction. We continue to elevate our talent by investing in the training and development of our retail team through a blended learning strategy encompassing e-learnings, one-on-one coaching, and facilitator led. In addition to product trainings, our curriculum is focused on developing client-telling strategies, coaching for client-telling, and improving our selling techniques. We are leveraging the product and marketing initiatives shared by Pam and Caroline. We are pleased with our customers' response to new product introductions and in the fashion and fine categories. Our new marketing campaigns, product innovations and in-store activation for engagements highlight outstanding craftsmanship, heritage and our diamond authority. We are looking forward to hosting our top clients at our blue book this week. As we continue to enhance our product development efforts in both silver and gift under 500

during 2015, we mitigated some of the softness we were experiencing. Although there is more work to be done, we believe this is the right direction. We believe our growth in the Americas will primarily be driven by optimizing our existing store base. We continue to upgrade our store network focused on prioritizing our capital spend, on renovating our largest revenue producing doors, increasing market potential by relocating stores and improving brand visibility, to strategically opening doors in market where we believe we can achieve financial and brand requirement, and lastly, selectively closing stores that are brand dilutive or underperforming. I'd like to share a few highlights of our store renovation plans. Chicago was our fifth store in the US opening in 1966, located on North Michigan Avenue on the Magnificent Mile. We are excited to be completed with renovating the entire 15,000 square-foot store. The store renovation began in 2014 and was completed in the fall of 2015. The work included both the exterior and interior of the building. As you can see from the picture on your right, the exterior work consisted of adding lit signage and blue features with awnings and curtains. The interior was completely transformed. The picture on the left is the ground floor featuring engagement, fine jewelry and a watch salon. A grand center staircase leads to the second floor. The picture on the right is the upper floor which houses fashion jewelry and customer service. It has an open field with blonde wood flooring and soft seating. To enhance the customer experience, all renovated stores will have increased sittings and private sales salon. Since the reopening, the Chicago store had outperformed our overall trend in the US. Our Beverly Hills store opened in 1964 located on one of the iconic corners in the world, Rodeo Drive and Wilshire Boulevard. We are excited to be in the process of renovating the entire 17,000 square-foot store. The renovation began in 2015 and is expected to be completed by fall of 2016. The work will include both the exterior and interior of the building. The exterior work consists of changing out show windows, adding lit signage and blue features with awnings and exterior curtain. The entire interior of the store, four floors will be transformed. The ground floor which features the renewed fashion area and a watch salon was completed. The balance of the three floors will be remodeled and a spectacular event space will be added to the third floor. This will be a multipurpose room that can be used for private appointments, celebrity dressing, or converted into a private dining space for in-store special events.

San Francisco was our second store opening in 1963 located in Union Square on Post Street in the heart of San Francisco. We are thrilled to be in the process of renovating the entire 16,000 square-foot space. The store renovation began in 2015 and is expected to be complete in 2016. The work will include both the exterior and interior of the building. The exterior work will consist of a double-height facade, large glass opening, [onyx] and lit signage. The double-height grand entrance will be flanked by staircases leading to the stone replaced with windows, illuminated [weekly branding] and a marquee for enhanced visibility. The interior will be transformed by including a grand double-height entrance. The second floor balcony can be seen in the picture on the left and the picture on the right is our spacious second floor illuminated with natural sunlight. The Vancouver Burrard stored opened in 2006. It is located on the prominent corner of Burrard Street and Alberni Street. We will transform the current 4,700 square-foot onelevel store to a two-level 12,000 square-foot important location. The renovation is just beginning and is expected to be completed by early 2017. The work will include both the exterior and interior of the building. The exterior work will consist of a double-height facade, large glass openings awnings and lit signage. The double-height grand entrance will be [flanked] by staircases leading to the second floor with a balcony overlooking the main floor. This graph represents the American store productivity performance. As you can see from the graph, sales per square foot peaked in 2007. Recovering from the drop in 2009, the region had made progress until a recent setback in 2015. Productivity has improved as the product mix shifted from lower-priced silver and gift to higher-priced gold and fine jewelry. While the average price per transaction continued to improve in 2015, the region especially in the US was not able to overcome the significant decline in international tourism and slowdown with the US domestic customer. As I discussed earlier, we believe our growth in the Americas will primarily be driven by optimizing our existing store base. Therefore, our focus is to drive comp store growth through increased sales productivity. In conclusion, as we execute on these very important strategic priorities, we are committed to working to improve our operating effectiveness and grow the business. At this time, I'd like to invite Philippe back up to the podium. Philippe Galtie: Thank you, Jennifer. Now over to international business outside America.

International is the other bigger half of the business, actually 53% of our total sales in fiscal 2015 to be precise. We cover 22 countries in three regions, Asia-Pacific, Japan, and Europe. You see that the Asia-Pacific is the biggest region in some of the – both number of stores and turnover with Greater China, Korea, Southeast Asia, Australia and the other retail business. And in this region, we operate 81 stores and this region account for 24% of our total sales worldwide. Japan is our second biggest region. We benefit from one of the largest and strongest network among branded jewelry players in Japan and also we benefit from our strong brand equity bid over the years especially with the strong leadership in engagement and jewelry. Europe was opened 30 years ago in 1986 with the major Tiffany store in London on New Bond Street. But we accelerated the grand building recently covering now 14 countries in the major cities of UK, France, Benelux, Italy, Germany, Austria, Spain, Ireland, Czech Republic, Ukraine and Turkey. And we also have five directly operating stores in UAE. Our trade network, I would like to mention, is concentrated on travel retail and major tourist destinations of Asia and Japan and in emerging countries like Indonesia, Philippines and also in the Middle East. To illustrate how healthy is our network, let's have a look at the key performance litigator, the productivity measured in sales geography. This graph shows the store productivity evolution in total and by region over the last 10 years. So we can see here that we have doubled the network from 88 stores to 178 while increasing the average productivity from $2,800 to $3,100, The engine of that performance are Asia Pacific with the productivity increased of 43% and a network that is more than tripled. Also Europe where we also tripled our footprint together with a solid increase in productivity. Japan here did not increase although it's still above the worldwide average. But in Japan, we are more concerned with top revenue growth than increasing productivity. Japan is a market dominated by a department store business model and we are looking at optimizing and increasing the average size of our stores in Japan whether it's in department store or withstanding boutiques. So you see we have built a healthy and performing network making sure that every move is always based on strong sale growth and high productivity financial standout and also complementarity with the rest of the network and that is true whether it's domestic or duty free or, of course, if it's directly operate store or external trade store.

So let's look at the different regions. Let's start with the big one, the Asia Pacific. Our ambition is to ensure a sustainable growth in this very important region both in terms of geography and as tourism force for the rest of the world. It's all about brand building and desirability among affluent purchasers. That’s why we focus our strategies in maximizing customer recruitment and retention by having focused marketing investment especially on the diamond collection and in fashion gold jewelry in order to create a brand power and distinctiveness in terms of quality, craftsmanship and style. And, of course, all markets have specialty events in store targeted upscale PR, digital communication and overall strong CRM programs. We also have the opportunity to expand in new territories and we plan to open new stores in that region in travel retail and in new countries. We are going to continue to expand in several markets, China, Korea, other countries and at the same time continue to prioritize relocation or extension of existing stores where it makes sense so as we can generate more topline revenues and organic growth. An example, in China, in Chengdu this year, we – Chengdu is a major second tier city and provincial capital of Southwest China, 7 million inhabitants, we closed an aging store located in an old style mall and we replaced it by an enhanced concept store in the shopping mall of Taikoo Li and we expect this store to generate three times more sales while the second existing store in the city will not suffer from any cannibalization. Another example in Taipei, we closed a small store this year in Bellavite and we replaced it by a new store in Breeze which is a very important department store both for locals and tourists. We are also in this region currently evaluating key potential success factors for opening a new channel of e-commerce in China to expand our reach primarily in secondary and third tier cities. We are evaluating if we can deliver the optimum level of service and excellence which is in line with the Tiffany image. Japan is about reinforcing our strongly leadership position and especially the aspirational side of the brand to the local clients. We entered in Japan in 1972 and we are enjoying in what is the second largest luxury market in the world in 2015 according to different consulting firms, a very strong brand equity with both power and distinctiveness. And furthermore, words to highlight as we believe that Japanese customers are some of the most discerning, loyal and important luxury customers in the world. So we have already 56 stores as I said earlier. We expect that number will probably not change much since we cover every major city. But once again, we are looking to save opportunity to improve strong days in terms of average store size by consolidating some department store spaces into larger spaces and

developing our customer base with five street boutiques in Tokyo and Osaka and we have already more than any other international jeweler in terms of free-standing boutiques. So Japan as you know is a very strong destination for the Chinese. The Japan National Tourism Organization recalled at about 5 million tourists from China in 2015. We believe we can grow with the foreign tourists and also with the locals that’s why we have opened recently a duty free store in Ginza with the joint venture in Mitsukoshi and Shinjuku. Having said that, we really focus on marketing efforts in the local clients be we do not want to be too dependent on the Chinese tourists in terms of sales development and we believe in Japan. We have the opportunity to benefit from the traffic generated by the 2020 Olympics. Europe, turning to Europe, our strategy in this key region is to build foundation for the long-term. Our roadmap is to establish our long-term position with the local customers. Europe is already an important place for tourist and travel retail. We opened our first boutique some three years ago in London but we see there are still a lot of opportunities both with our traditional strong markets which are the United Kingdom and Italy and with also relatively new markets like Switzerland, Russia or France. We focus here on traffic generation activities and brand awareness building on the excellence of our service in the stores and targeted visibility program to local customers. Another example, we have built a strong capability with Mandarin-speaking sales professionals throughout Europe. We developed our presence in Europe with a lot of distinctiveness. Europe for example has the highest share of fashion jewelry, the icon design of (inaudible) in the total sales. In Europe, 54% of sales are in fashion jewelry, comparing to the 42% average worldwide on a global level. We are consolidating our network footprint in high potential tourist expertise. We have opened Geneva one year ago. We have opened our third store in Rome via Condotti, the luxury street of Rome. We have opened our second store in Madrid with Corte Ingles which is here which is very complimentary to our standalone boutiques. We have just opened our first store in Venice which is a booming tourist spot. We are also consolidating our presence in Russia with our successful store located in prime location at the GUM under the guidance of the Europe Regional Organization. So in Europe, we can say we have opportunities of growth for market expansion. Not all the markets are covered yet. We're not getting Monaco or Scandinavia for that matter. As far as Middle East is concerned, it's not part of Europe but we have a small presence with five boutiques and we have several trade stores in Saudi Arabia, Qatar and other countries.

For Europe, it is about long-term growth, building awareness, capitalize on the tourist business, optimize our store base and further develop our e-commerce platform as well. It's very successful. We are selling a lot through our e-commerce in Europe. So as a conclusion rapidly, we believe international will contribute to sale development. It's a world of opportunity for Tiffany whether it's an existing market or a new market, whether it's in Asia Pacific, Japan, Europe or travel retail in major cities, both from network expansion or also from optimization point of view. We think there are more and more affluent purchasers in the world with plenty spending power that will enjoy our beautiful creation to celebrate important moments in life or for their pleasure and (inaudible). And as tourist, we'll likely continue to grow long-term. We are really optimistic also on the travel retail business. Last, I would like to say that all our international strategies are primarily focusing on maximizing com sales by recruiting more clients and going after the loyalty to our solid CRM and marketing activities to generate the expected profitability. So thank you for your attention. I would like to give the mike to Andy Hart. Andy Hart: Thank you, Philippe. Good morning, everybody. My name is Andy Hart and I joined Tiffany in 1999 as a director in one of our jewelry manufacturing operations. Since then I've been working to increase our supply chain capabilities and further vertically integrate Tiffany's diamond and jewelry supply chain which I'm going to review for you in a moment. But first, some history. Tiffany has a long and steam history and has been a leader in vertical integration from their early stage of that history. The company began its own jewelry manufacturing in 1848 above the Union Square store at 550 Broadway in New York City. Shown here is the workshop where 50 or 60 artisans crafted early Tiffany jewelry designs. In 1851, the company expanded its manufacturing operation by acquiring the workshop of New York's most prominent silversmith, John C. Moore. His son, Edward C. Moore became chief of the design department and grew the Prince Street work located at Southern Manhattan into 500 artisan workshops. This launched Tiffany's credibility in silver jewelry manufacturing and within a few years, Tiffany was known as the leading silver warehouse in New York. In 1886, Tiffany's chief gemologist George Frederick Kunz, arguably the most important American gemologist in history, established Tiffany's own diamond cutting and polishing operation. Kunz started the diamond's cut and polished from the rough in the established center of Amsterdam did not leave the diamond finished with satisfactory brilliance.

This was the beginning of Tiffany's infatuation with diamonds being cut for beauty and brilliance and not for size, a focus that remains today 130 years later. This picture shows Tiffany's Union Square store in 1890. The drawings on the side are from an 1891 article in Scientific American reporting on Tiffany's diamond cutting operation. 1886 was also incidentally the year Charles Lewis Tiffany introduced the Tiffany setting to show off this brilliant and beautiful diamonds. This ad ran recently the full wrap of The New York Times. This ring style remains our most popular today 130 years later. I'll read it for you. 130 years ago, we lifted we lifted a diamond and created a legend. Charles Lewis Tiffany recognized an exceptional diamond should be heralded rather than hidden. So we handcrafted a ring with a diamond so rare it deserved to be lifted above the band. And in doing so, we created something not just brilliant but legendary. In 1897, Tiffany's Forest Hill sterling silver and plated ware operation opened in Newark, New Jersey. An article from the jewelry's review called it a revelation of our 20th century progress of manufacturing. Newark was chosen because at that time it was the center of the fine jewelry manufacturing industry fueled by ways of German immigrants with superior jewelry craftsmanship skills. Workers made and repaired almost all their own tools and machines within the workshop, something still do a fair amount of today. This is the same operation pictured in 1897. Tiffany's history of craftsmanship and vertical integration continued into the 1900s with the company acquiring Louis Comfort Tiffany, Tiffany furnaces jewelry workshop in in 1907 and relocating it to the then main store at Fifth Avenue in 37th Street in Manhattan pictured here in 1905. In 1940, Tiffany moved to three locations and jewelry workshop to the current flagship location at Fifth Avenue in 57th Street where we still manufacture fantastic statement pieces of jewelry today. The craft people we employ are true artisans, the best of the best in our view. Always fun and it's fascinating at least for me as it is to reminisce about Tiffany's [steamed] history and craftsmanship. Due to our time constraints, we need to jump to modern times. As you know, the company went public in 1987 and shortly thereafter, the management team began to plot our modern growth plans. The team vowed to rekindle the company’s vertical integration strategy and keeping with our forefathers' commitment to the craftsmanship and credibility required to be a luxury jewelry. In additional, it was determined that to meet our ambitious growth plans while maintaining control over the quality of our craftsmanship, we cannot afford to rely on third-party manufacturers but need it to do it ourselves. In early 1990s, Tiffany acquired a small fine jewelry manufacturer in Pleasantville, New York to complement the workshop above the flagship store and begin to realize the company's modern vertical integration strategy.

The operation was moved to our current location in Pelham, New York in 1995. During the mid-1990s, Tiffany manufactured about 20% of the merchandise silver retail and at that time, we did not cut or polish our own diamonds but instead procured them from third-parties. Speaking of diamond vertical integration, the 1990s was an exciting decade for diamond discoveries especially in Canada. The senior management team at Tiffany watched closely at the second diamond mine in Canada. Diavik mine pictured here was discovered near the Arctic Circle in the process of bringing it into production comments. Tiffany saw an opportunity to fulfill its long desired diamond vertical integration strategy by investing in Aber Resources, the junior mining company who discovered the Diavik mine. A return for our equity investment which we divested at a profit in 2004, we're able to secure a 10-year supply agreement the right to buy all Tiffany quality rough diamonds recovered from their 40% share of the mine. The mine was scheduled to produce in 2003. So in 2002, we established Laurelton Diamonds, a fully owned subsidy of Tiffany. Laurelton Diamonds' mandate is to buy rough diamonds directly from known mines and other known sources and convert them into Tiffany quality polished starting with rough from the Diavik mine. I thought you might be interested in this picture of Mark Aaron and me checking up the Diavik mine progress in October of 2002. We're standing in front of a 240-ton haul truck where the temperature regularly hovers in minus 40 degrees in the winter. This floor of Diavik is quite amazing and can be a whole presentation in itself. Today we enjoy a highly evolved global supply chain which supplies approximately 70% to 80% of Tiffany's diamonds by dollar value from rough and 60% of a merchandise from our own operations. We think this is important because we can better control input cost, scale with the sales plans of the company, further our corporate and social responsibility efforts as they relate to all aspects of Tiffany jewelry, and simply we believe great luxury goods companies must, for the most part, make their own products. Next I'll give you world tour of our current diamond and jewelry supply chains. Let's start with diamonds. We established the headquarters for our diamond operation in Antwerp, Belgium, the rough diamond capital of the world. Here we employed about 90 diamond experts to source rough diamonds, prepare them for cutting and polishing, and polish the larger diamonds in our own workshop. These are our most important raw materials, rough diamonds. These are typical parcels, the colorless diamonds on the left and fancy yellow diamonds on the right. The skilled diamond experts in our operation carefully study the rough diamonds under microscopes and with the aid of specialized software. They create the instructions the polishers will use to bring out the most beautiful and valuable polished diamond. The

picture on the bottom left shows parceled individual partial diamonds with their barcoded manufacturing instructions ready to go. These two polishers are working in our Antwerp operation. The polishing wheels cast iron and impregnated with diamond dust because it is true, diamond is the hardest substance and only a diamond can cut another diamond. The wheel spins at 3,000 revolutions per minute and this picture shows the polishers checking their work. They carefully polish each facet onto the rough diamond and they’ll move on to the next facet until the one they're working on is exactly right. In 2005, we acquired a manufacturer of small diamonds in Hai Duong, an industrial town about an hour outside of Hanoi in North Vietnam. We built a new facility, expanded the workforce to over 1,200 employees. Today in addition to producing over two million pieces of small diamonds per year, this operation performs the first selling steps on small diamonds. Develops and produces diamond polishing equipment for our network around the world and performs initial grading of polished diamonds smaller than one karat. In 2007, we opened Laurelton Diamonds in Botswana, a Tiffany majority-owned joint venture with two local business partners. Botswana is the largest producer of diamonds by value in the world. Botswana government is in partnership with DeBeers in the diamond mining and marketing business. Together, they have implemented policies to encourage local rough diamond polishing to create jobs and develop economic activities. We began our operations in Botswana in order to access these rough diamonds better reserved for local manufacturing. Today we have about 160 polishers almost all locally hired and trained polishing Tiffany diamonds. The access to supply we have secured in this location helps protect us in the future where we expect diamond demand will grow and diamond supply will decline. This facility has the ability to triple its workforce in the future as local supply grows and our demand dictates. In 2008, we expanded our diamond manufacturing capacity further by acquiring one of our suppliers in the South Indian Ocean country of Mauritius. We embarked on a new facility construction project and expanded the workforce to the current 250. We polished mostly medium-sized diamonds with about 30 points to one karat in fancyshaped diamonds and fancy colored diamonds here. This facility has the ability to double its workforce as demand grows in the future. These are our artisans that work in our Mauritius factory. The upper left picture shows diamond polishers checking their work, the picture on the right shows a quality control specialist checking a diamond and then the bottom left picture an instructor teaches a class.

We established Laurelton Diamond Cambodia in 2014 to be a sister facility to Laurelton Vietnam. Our annual demand for small diamond pieces is more than we can produce in Vietnam. So we need another operation to address that demand and keeping with our vertical integration focus. This facility currently employs about 700 diamond polishers with the capacity to expand to around 3,000. The picture on the bottom right shows our solar panels on top of a bike parking shades and this facility was the first in Cambodia to be LEED certified. The Tiffany gemological laboratory in Pelham, New York is the final stop in the diamond supply chain before polished diamonds are mounted in jewelry. Here we employed about 80 expert gemologists. Final grading including the 4Cs is performed and achievement of Tiffany's workmanship standards is confirmed. Pictured here is clarity grading and plotting, color grading, laser inscribing a serial number on the diamond, and our expert polishers are on hand to do any final touch-up to our diamonds to make sure the workmanship is superlative. All data we captured is entered into our system and is then reproduced on the Tiffany diamond certificate when a customer buys a diamond. Unlike other third-party grading reports, the Tiffany diamond certificate is backed by a full lifetime warranty. Tiffany stands behind the grading of its diamond. Moving on to jewelry manufacturing, we believe we are well positioned to meet our current needs and future jewelry supply needs. Today, we produce about 60% of our merchandiser ourselves with the remainder being procured from a small number of trusted suppliers primarily in the US and Europe to work closely under our guidance to produce to our exact and quality standards and comply with our vendor code of conduct. The first stop on our tour of Tiffany's jewelry workshops is New York City. We're above the flagship store at Fifth Avenue in 57th Street about 20 expert jewelry crafts people create extraordinary works of art, many of which are shown in our famous annual blue book. This picture shows an exquisite necklace being inspected by one of our artisans. Our next stop is in Westchester County about 15 miles north from here where maintained a fine jewelry and engagement ring workshop. We employed about 260 artisans who are handcrafting, assembling, setting diamonds and polishing jewelry. The facility is nondescript on the outside but don’t be fooled, we craft spectacular fine and engagement jewelry here. Our largest jewelry manufacturing workshop is in Cumberland, Rhode Island where we employ over 650 artisans. This operation opened in 2002 and produces a wide variety of silver jewelry and gold and platinum designs.

Some of the architectural details in the name of Forest Hill facility have been brought forward from Tiffany's Forest Hill facility in Newark from the late 1800s, as I showed you earlier. Starting on the top row in working rate, we can stamping and striking equipment, waxes on trees which is one of the first steps in the lost wax investment process. The casting machines, where molten metal is poured into molds to create the various shapes required; cleaning the castings, soldering, and assembling and hand polishing. The Forest Hill facility also host our hollowware shop where we craft some of the world's most famous trophies. Pictures here is, of course, the NFL's Vince Lombardi trophy presented to the winner of the Super Bowl. We also make trophies for the NBA and major league baseball among many others. I see there are a couple of trophies on display here. So for those of you in attendance, I hope you take the opportunity to inspect them close up. In 2010, we opened the workshop in Lexington, Kentucky, to augment our fine jewelry and engagement capacity in Pelham, New York. We currently employ over 100 craft people here. In 2014, we established an operation in the Dominican Republic, just outside the capital of Santo Domingo. On the bottom is the view of the industrial park where our facility is located. Across the top are images inside the facility. We currently employ over 350 craft people here. The primary purpose of this operation is to perform the final labor-intensive polishing step for some of the jewelry produced in our Rhode Island facility. From here, the product is shipped to our distribution center in Parsippany, New Jersey, which I'll show you a minute. Our most recent new jewelry operation was established in Bangkok, Thailand, in 2014. The picture here is our current leased facility. We have over 250 craft people performing casting, assembly, large stone setting, and polishing processes. We believe Thailand of the world's most important colored stone cutting and sourcing location with a strong history of jewelry making and a large availability of skilled labor. The purpose of this pilot operation is to help us determine if we want to expand our jewelry supply capabilities in this region. The last stop for Tiffany jewelry before hedged directly to a customer or to one of our retail location is our Distribution Center in New Jersey. The picture on the left is our retail service center in Parsippany. This operation opened in 1996, employs over 150 and is responsible for receiving all finished good product, assuring the quality, and replenishing our retail stores around the world. On the right is our customer fulfillment center in Whippany which opened in 2003. This facility employs over 150 and supports phone, catalog, and e-commerce sales orders for the US, Canada, and Australia.

Both of these facilities are extremely efficient, have the capacity to handle Tiffany's growth for the foreseeable future and set the foundation for developing an even more responsive and cost-efficient distribution network in the future. As we near the end of this review of Tiffany supply chain, I want to tell you that an area where we're doing some exciting new work which will help us become more agile and efficient at delivering product newness to our customers. Tiffany has a unique set of capabilities and assets to deploy to this end. We have significant in-house design capabilities, vertical integration in our supply chain, which I've just seen, which you’ve just seen, and scale. To achieve this ambition, we are creating a jewelry research and development center. Our aim is to create a competitive advantage in our new product pipeline by bringing new designs and innovation to market more efficiently and more cost effectively. The components of this strategy include organizational alignment around this objective and new methodologies in working processes to achieve results. Customers expect luxury brands to have a significant degree of control over their supply chains. Consumers will, in the future, become even more attached to where the raw material is sourced, how the environment was treated, who the people are that crafted the product and under what conditions objects were created. We strongly believe that great luxury brands, for the most part, make their own products. And the scale and scope of Tiffany's vertical integration gives us an advantage over our competitors. We believe that no competitor scale can match the degree of control we have over the crafting of our product. The purpose of our supply chain activities can be summed up this way. Help enable the achievement of Tiffany's sales objective by providing products of exacting quality at the lowest feasible cost and inventory investment while balancing supply risk factors, complying with Tiffany's strong corporate social responsibility objective, complying with our responsible metal, diamond, and gemstone sourcing standards and third-party social accountability program all while embracing the principle of supply chain is transparency. As you can see from our worldwide tour of Tiffany's operations, we go to great efforts to provide the top quality products for our customers while conducting our behind-thescenes business in the way they expect and deserve. Our supply chain is, and we expect it will continue to be a source of competitive advantage, we believe we are well-positioned to support the growth of the company and we will work to consistently improve the efficiency of our operations reducing cost where we can without compromising on quality or CSR commitments and effectively managing our working capital.

We believe this supply chain and our commitment to CSR and to continuously evaluating opportunities for improvement will continue to drive brand and financial benefits for Tiffany far into the future. Thank you for listening. I will now turn the podium over Ralph. Ralph Nicoletti: Thank you, Andy. Good morning and thank you for attending. Before handing this back to Frederic for some closing remarks and Q&A, I'll bring together what you’ve just heard this morning in terms of connecting to our financial performance and importantly total shareholder return. I also want to bring to your attention that there is a non-GAAP reconciliation in the appendix of my presentation for your reference. As you heard from my colleagues, we have implemented a number of initiatives designed to strengthen the brand and elevate the customer experience to drive growth, all supported by advanced business operations. We believe these actions will enable revenue growth, improve margins, generate solid cash flow, and our objective is to have that translate into attractive TSR over time. As we execute our plans and assuming that we see some stabilization and recovery of the current volatile and difficult macroeconomic environment, our objective is to deliver high single digit net earnings growth driven by mid-single digit revenue growth on a constant currency basis, operating margin improvement of 50 basis points annually on average and high single digit earnings growth with strong free cash flows. This will enable us to invest in the business to drive growth and margin improvement as well as provide the opportunity to return cash to shareholders. Now, I'll break this down a little further for some more insight. Our earnings guidance is based on the following assumptions. For sales, as you can see, on the left side of the of the chart over the last 10 years we've grown revenue 6%, constant currency with about half coming from new stores about 3% comp sales growth. Looking forward, we're assuming mid-single digit revenue growth on a constant currency basis with the majority of the growth coming from comp store sales driven by our strong brand position marketing, and new collections and refreshes as well as the investment we are making in customer engagement and the store network. Importantly, store expansion will play an important role in our growth especially in Asia and Europe as we are assuming annual square footage growth to be roughly 2% overtime. With generating mid-single digit sales growth, we believe we can improve our operating margin by about 50 basis points on average annually. As you could see from our historical performance, over the last 10 years, we have grown our operating margin over two-fold points driven by about 3.5 points in gross margin improvement while investing SG&A mainly in marketing and new stores.

We expect gross margins to improve driven by product mix particularly from growth in the fashion and fine jewelry categories and advancing our supplies -- our supply chain efficiencies as Andy discussed earlier. Importantly, our focus on comp sales will enable fixed cost leverage and we expect to achieve savings from procurement initiatives and overall expense management. Going a little deeper on procurement, we really just started focusing in this area in 2015. We created an organization and expect to build a center of excellence over time focusing on improving costs, quality, and service primarily in the indirect expense categories such as store construction, IT, freight and packaging. While early days, I would expect to see gross savings of about $50 million by 2018 of which about $30 million will be in the P&L and the balance will flow in over time through lower depreciation expense. We also plan to expand this capability into the direct areas such as product sourcing in time. We're also making important investments in information systems with a focus on the customer experience as well as on the efficiency of our manufacturing and administrative operations. We have increased our capital spending in these areas and are taking a phased-approach implementation in order to ensure that we execute well while managing risk. On the customer side, we are investing in omni-channel capabilities to improve cross channel fulfillment capability, for instance, buy online and pick up in the store. We're also improving our CRM and clienteling capabilities as Philippe discussed earlier. In terms of business operations, we expect that our investments will improve inventory management as well as supply-chain finance and other administrative capabilities globally. These systems enhancements will be implemented over the next several years with capabilities phased-in during that time. For instance, this year, we are rolling out our global clienteling system and are completing some of the foundational aspects of our customer database. Turning to cash flow, our historical performance has been improving partly driven by some internal process improvement but also because we have essentially completed the build out of our vertical integration strategy and the associated inventory build that required. At the $400 million level of free cash flow which represents our assumption for fiscal 2016, we will continue to prioritize investing in the business, managing inventories sufficiently and investing in new and existing stores. We believe we will have ample excess cash to allow for opportunities to return cash to shareholders. We have a s very strong liquidity position with extended debt maturities and a recently expanded credit facility. Our capital policy is guided by a few very important principles, being conservative but not inefficient, and maintaining investment-grade credit rating. Both of which will enable us to strategically invest in the business through uncertain and volatile macro-environments.

We expect this level of cash flow when coupled with our prudent set of operating principles should provide us with the opportunity to return cash to shareholders through dividend growth and share repurchase over time. Pulling this financial framework together with high-single digit earnings growth, the opportunity for dividend growth, and a potential to see our P/E multiple expand, we expect to deliver double-digit total shareholder returns over time. As I close, we have a clear path to growth, programs in place to drive operating margin improvement, as well as consistent generation free cash flow, allowing us to effectively invest in the business while providing an opportunity to deploy capital to shareholders, to drive attractive total shareholder returns. Thank you. And now I'll turn it back to Frederic with some closing remarks. Frederic Cumenal: Thank you, Ralph. I'm going to do like Jean-Marc, 11:35 to my rose gold limited edition CT60. We really used a little bit more than the two hours, two hours and five minutes. So I believe that all of you are now in passion to ask questions. May I ask my colleagues, maybe to move their chairs, in order to face the audience and to take some mike? The mikes are right –

QUESTION AND ANSWER Unidentified Company Representative: We'll take a moment to just stand up and stretch. Optional. Mark Aaron: Lorraine? Lorraine Hutchinson: Lorraine Hutchinson, Bank of America- Merrill Lynch. You said you're going into a lot of different strategies to try to drive the customer and drive sales. Can you just prioritize for us when you think about the domestic consumer, 80% of the North America business? You’ve seen some softness there. What do you think you the few key initiatives will be that will help reengage the customer with the brand and drive sales growth? Jennifer De Winter: As we discussed, it's a continuation of the product innovation and product newness that we continue to see in the stores. We also feel especially strongly about the under 500, the – which we, as I mentioned before, that we had gone back into and had started so see some nice results there as well as non-jewelry, the gifting businesses being an opportunity. And then continuing also with our digital efforts as well as social media. Continuing to drive that. And for sure, our in-store experience. We need to continue to make sure that

where elevating that and being unique and different versus the competition and a lot of that will be driven through the training and the development of our people. Unidentified Audience Member: Just to follow up – are there any metrics that you can provide on how your store renovation enhance productivity in some of your existing spots or maybe as you move towards the different locations, what kind of sales to get? And, Ralph, I was hoping you could maybe go into a bit more detail. You talked about the up margin improvement from some of the supply chain initiatives. What are some of the specific initiatives that you have in the works that you expect to be accretive to the bottom line and maybe some timeline to achieving that? Frederic Cumenal: So I'm going to take on the first one. I mean, it's – the world is complex and renovating stores is a part of cost of doing business. So we can see a huge variation in term of procurement versus the prior year or moving up, improving, like in some examples, but we don’t communicate on specific and like none of our competitors are actually. Ralph? Ralph Nicoletti: Yes. On effectively improving margins, a couple of areas that I'll highlight, one is around the supply chain specifically. As Andy showed you earlier, we've really, over the last, really 10 years of build out the supply chain with even some more recent investments over the last just couple years and we've really just begun to do was optimize it,. We built it strategically. It's in place for protection of our product, ensured supply and quality but we really haven't started to take advantage of the strong assets that we built. So the areas that we have in place to improve some margin are one on just improving facility performance and investment we're making and developing the people and technologies inside the facilities. Secondly, if you looked at our map of where our stores are and where our locations of manufacturing are, we're moving a product around a lot, and I think over time, you'll see us build out a more global based distribution network that today we're not leveraging. Those will drive both margin improvement as well as working capital efficiency as we move through those. The second area is an area that I touched upon with some more focus and that's procurement. And we're really, in the early days, on procurement, there's, as I mentioned, by 2018, we expect to have $50 million of cash savings. Some of that will be in the P&L already. I said about $30 million worth. Clearly, we have aspirations to make that a much bigger program in time. So that's another area that's very tangible and we're moving down that path over the next couple of years. We'll also move from indirect materials into direct sourcing as we build that capability. And then the third area is really on our foundational systems. And that's a project that we've been now going on for about two years or so. And there's still a few more years

left to build out foundational systems across the enterprise which will help with not only improving our operations that we have weathers it's in merchandising or manufacturing but just the administrative management of supporting our operations that we have globally. Rajeev Bhaman: This is Rajeev Bhaman from Oppenheimer. Could you talk a little bit about how far along are you in the CRM development and the analytics development? What sort of results have you seen from it so far? And when you say you're best in class in digital, what does that really mean? It's not entirely obvious to me. Frederic Cumenal: So, Philippe, on the first part and maybe Caroline on the second. Philippe Galtie: Yes. As I mentioned in my presentation, we have a solid base of customer database worldwide and we have a lot of data that we can leverage. We are roughly, I would say in the middle of the process. It's an ongoing process to enable, really capturing what we can do to make really precise plan. So it's a lot of investment. We are going forward into capturing more value out of that customer analytics. And if I may on the digital leadership, hand over the microphone. Caroline Naggiar: You know, I think we rely on some outside objective resources on the best in class. And as we've said, L2 has rated us number one again. The group out of NYU. So that's sort of the imperical measure. But also, we're very passionate about digital. We understand that it's the future in many ways and is the direct link to millennials. And so we're always working on innovating and have had, you know, we're really pleased with some of our internal metrics on reaching that. But we know that this is a long-term active innovation for us. Frederic Cumenal: And if I can add to both. On the first part, on the CRM part. We are now at a point where it was quite critical for us to build the database toward the information. And I would say that even if it's something that we are building day after day, you know, it's already done per se. We are the second phase that was about building the basic data analytics. And on that, it's largely done too. So the next phase is going to leverage on those analytics and to find the right formulas. And by right formula, I'm talking about the most efficient ones. The one that are the most fulfillment and this is the journey that we have in front of us. Clearly, our number objective about CRM is going to be about loyalty. The number one thing that we have in mind, we have a fantastic, a very large number of customers data. We need to reengage them for those that could have been customers and we need to serve them better benefitting from those information.

On the digital front, I mean no one in the world of luxury nor in any other world could say that they are at the forefront of anything because when we believe that we are touching something, the line is moving and moving and moving again. So this one, I guess, for the next 20 years, we will have an endless discussion about. Are you there and I will probably answer, not that I'd be able to answer maybe in 20 years from now, I will be too old and I won't get what you told me. But it will never be the case. Now, what we are totally obsessed about and obsessive about is we know that especially millennials, they are taking, grabbing, all of the information through mobile. I mean, it's not so much about magazine anymore. Frankly, not so much for this specific target, not so much about newspapers, it's a lot about everything that is about mobile. Mobile [encompassed story] to all of different applications, social network, and so on. And we are trying to do our best by recurring some of the best by being at the forefront of what we can do but the forefront, again, is something very relative. So that's a big challenge for all of us but also a big opportunity. Mark Aaron: Teresa? Could you state your name and firm? Teresa Donahue: Teresa Donahue, Neuberger Berman. For the North American customer, I guess I'm curious as to what your research has told you about the age range of the customer and who's going through the pipeline? Because one of the things I started thinking about lately is the luxury business in general losing the older into savings, retirement, etcetera. You know, like, how does your customer stage at this point and how much work opportunity would you say there is to move the needle one way or the other? Caroline Naggiar: Well, I can't address some of the age specifics that you're talking about. I would say that the research that we've done in the US has reflected that our fundamental, the brand fundamentals, are strong among all the age groups. That doesn’t mean that we don’t have, you know, work to do which is why you saw the work that we're doing in product innovation and marketing messaging but the brand fundamentals across the group appears strong. Mark Aaron: Francesca? Francesca Di Pasquantonio: Francesca Di Pasquantonio, Deutsche Bank. I have a couple of questions. The first is you described a lot about the brand, really, what it stands for a lot of self characteristics. I would like to draw your attention on one hard fact which is price. So are you finding any resistance to the level of price that -- not just the Tiffany brand but generally speaking luxury have reached over the last few years? And is this one of the resistances which may be the driver of more subdued business?

And the second question, again, a lot of soft features about the brand, my instinctive question to you is can silver and statement fine jewelry continue to coexist? Frederic Cumenal: On the first, the price resistance, you know, price resistance for luxury brand overall is a little bit of a difference anymore because luxury brands are not about consumer needs. It's about finding the right balance between design, interest, relevance in a given price point. Frankly, I have no evidence within the past last years that we reach the world in term of prices as long as we find new collections or existing collections by refreshing them, making them more relevant, and frankly, more desirable. The tools, though, is that within the last few years, we lost some ground in the US and the $500 price point. And our objective is really to stabilize this business. And frankly, not particularly to renew with growth and the $500 in the US but to stabilize the $500 price point. The second part of your question. And again, that's your instinct. So I will answer with my instinct. I believe that this is the Tiffany DNA. This is why we are from New York and why we are an American brand. You know, we made our success based on a large offering of in term of price point. We believe that we are going to continue to do that and we believe that we can have access price point or they are not going to be $100 price point but access price point to beautiful jewelry coexisting with the most amazing masterpieces in the world. And this tension in the brand is probably what is going to be our way to success. Laurent Vasilescu: Laurent Vasilescu from Macquarie. Regarding the watch presentation, how are you thinking about wearables? We're seeing some upscale watchmakers tinker with smartwatches. Is this an opportunity, a challenge, as you target millennials? Any insights would be appreciated. Frederic Cumenal: The watch business overall is a $40 billion to $45 billion business, as experts evaluated. And we believe that we have a great growth opportunities with traditional Swiss-made high question luxury watch. And because of our heritage and this history that I presented, we really won't stop with this. Wearables might come. Well, of course, like many other players, we are considering opportunities but we believe that our first batch is really to go with traditional watches and we have so much to go here. Mark Aaron: Bob? Bob Drbul: It's Bob Drbul from Nomura Securities. Just on the design side of it. There really wasn’t a mention of Francesca. Is her involvement still at the same level? Can you

talk a little bit about the team and what's happening on some of the new design opportunities? Frederic Cumenal: Yes. You shouldn't conclude. Again, you only have a part of the senior team here and we already took two hours and five minutes of your time. So, it could have been a full investor day and therefore we will have had to [manage all the breaks]. Design and innovation creativity are absolutely central and are at the core of what Tiffany is. And Francesca's team, because you're mentioning the name of their leader and the role of a leader is to lead and she's absolutely important, but we have a team of very talented designer and they are totally critical and pivotal. I guess that within the presentations, you’ve seen the way we are working. Obviously, design team, they receive [briefs]. I mean, we need to provide them with guidance. But at the same time, they are interpreting those briefs. The creative act and it's happening at this stage. And we strongly believe that luxury and at least us at Tiffany, we are about to find this right balance between the rational part of the business that is about understanding consumers, understanding the position, the role that we want to play in their life combined with the more artistic, creative, confident that is a little bit of a free spirit that Francesca and her team represents quite well. Oliver Chen: Oliver Chen from Cowen and Company. Regarding CRM and omnichannel and personalization, it's quite innovative relative to luxury peers. Where do you -- what product categories do you think that has the most linkage to in terms of driving comps or sales? Also, if you could speak to the $500 and less in the customer angle, is that a very different customer from the one who's interested in high jewelry? And how do you see these intersect or not? Frederic Cumenal: So if I just can start to answer and please don’t hesitate to join. We believe that CRM approach is relevant to all of our categories. I will eventually argue that it's probably a little bit less impactful mechanically on the very high-end jewelry because it's about one to one and personal relationships. So it's a kind of different CRM so that I will consider that as a slightly different approach. But it's as relevant for the under $500 price point where it's about, you know, contacting people when you know that they can have something to celebrate or that it is for celebrating an anniversary or anything else for fine jewelry category. So we don’t foresee the impact being higher on one category versus the other one. As far as the intersection for clientele is concerned, actually, and I'm going to be back to the high-end part of the business, the high-end jewelry, people that are buying under $500 are also for a large proportion of them, customers buying, shopping with us for fine jewelries and diamonds because it's just a different use.

Are they using the $500 as a gift, opportunity? Absolutely. But also some of them are – it's very clear in some countries, Italy being a good example. The same lady is going to wear, return to Tiffany silver bracelet that she could acquire probably for $350 or around and some much more high end pieces from us. So the intersection is real. It's real. The tools in that silver in addition of the difference between silver and entry price point overall because I could say the same thing for the entry price point on the gold category or the cheap segment is playing a bigger role in term of recruitment of new consumer. Mark Aaron: Dorothy? Dorothy Lakner: Dorothy Lakner, Topeka Capital Markets. I had a question about the jewelry research and development center. You talked about developing new products, and clearly, you’ve had a focus on bringing more newness into the assortment. So I wondered if we could just connect the dots. What's the timeline on this new center and how will that play into new product development as it exist currently? Andy Hart: The jewelry research and development center. We're focused on the efficiency and the ability to bring those new innovations and new ideas to market as quickly and as effectively as possible. So we standby ready to respond to whatever newness requirements that Pam and Caroline and their teams dream up. So it's a new way of working. It's not something that we don't do today that we're going to start doing immediately. So it's a new way of working, a new way of organizing ourselves, and a new way of responding more effectively and more quickly to the brief that that come from the product category group. So, Pam, if you want to say anything. Pam Cloud: Again, our new product innovations launches and refreshes are all planned out and paced. And so what the new R&D center will do is allow us to lunch more quickly if we need to or have even more and richer stories in the pipeline to lunch when they're ready at the right time. Anne-Charlotte Windal : Anne-Charlotte Windal with Bernstein. I have a question about the engagement jewelry category in particular. So you mentioned it's a very important category for their brand at the heart of the brand. You’ve experienced softness in that category in the past years particularly in the Americas and in Asia-Pacific. So could you comment on the drivers of that softness? Are we looking at secular trend or competitive pressures? And if you could also touch on any potential encouraging results you’ve seen from the current advertising efforts? Frederic Cumenal: So I'm not so sure [towards] the same information than the one that you're mentioning because, you know, the engagement category in particular is a big play

with Chinese consumers overall. And we have been extremely successful with that play and it has been a consistent win for us. So, you know, as a matter of fact, some of the numbers that you can read, remember, are very influenced by, first, the conversion rate and the tourists also. So we all know that in the Americas and in the US, in particular, in 2015, we suffered from, you know, lack of tourists in our stores or at least some reduction in term of purchasing from those tourists and it did impact within all the categories, the category in the US More generally, on engagement, we believe that we need to focus a lot on US, Japan, and China. China, because the size of the pie is bigger and bigger and we believe that we opportunities to grab more market share of a bigger pie, making it a very interesting longterm play for us. In the US, because this is an extremely fragmented market and even if we are, by far, the more, the brand, the most associated with its environment in the US, we are only scratching the surface of the potential of this country. It's a tough game, a lot of different players but we believe that in the US, with domestic -- domestic consumer, we have ways of growing this business. And in Japan, it's essential because this is a bread and butter of the Japanese business. So even here, it's probably more to protect than to come here because importantly, as far as I know, the Japanese population, especially the 20-35 years old are not a growing segment in Japan but we need to continuity to protect all very, very juicy and wealthy market share in Japan. And for the impact of the advertising, this is the long process. You know that people, when they decide to get engaged, it's a six-month average long journey. So that’s we're discussing five months and a half from now. Paul Swinand: Paul Swinand from Morningstar. I wanted to ask – Europe has been growing steadily for several years now and you’re investing there, but given that it's only -- it's not really a big diamond engagement market. As you commented, it's 54%. I think it's fashion. As it continuous to grow, how big can it get as a percentage of total and will that need to see a bigger penetration of diamond and engagement? Frederic Cumenal: So Europe has been, as you know, for all luxury brands, first and foremost, a tourist led market. I'm not talking specifically about Tiffany and we all know that in 2015, we -- all of us benefited in Europe, Tiffany included from the very hefty and very rapid growth of visitors in Europe and shoppers in Europe. We will see depending of the evolution of both the euro and the security in Europe, what will happen in the future, but this is what did happen in 2015. Again, remember that, you know, overall growth strategy, the fashion is a major play for us. The fashion, both gold and silver, but I will say eventually more gold is the major play and the style and the design is absolutely central to our strategy so we tend to believe that in the midterm, we

should be in a position to grow faster in Europe on the style dimension of the brand which, by the way, can interest with some fine, depending of the collections, then we will grow on the classic [idea]. Again, the only caveat being that depending of the tourist flow, the recognition of sales to tourist in Europe can be very high, moderate, or very low. We will see in the future. But Europe has always been a very prime destination, namely for Chinese visitors and for, you know, the rest of the world. Brian Nagel: Brian Nagel from Oppenheimer. So question, so Tiffany T was launched a while ago. So maybe a two-part question on Tiffany T. One, now it's been in the stores of a while, is there any way to look at it and say, you know, the purchase of Tiffany T, have they been largely incremental to Tiffany? Have they come at the potentially the expense of other lines within the store? And then the second question I have on that is will there be another Tiffany T type product. Tiffany sometimes in another – maybe I'm wrong, but I looked at Tiffany T as the real, almost innovation for Tiffany as far as merchandising went versus some of the other reinterpretations of the overall products. Pam Cloud: So I would start by saying we're always looking and working on new collections. And as we talked about, it's about those entirely new collections and then leveraging our existing base too. With Tiffany T, it launched in 2014. So we do consider that it has great potential and opportunity to build sales within that collection and we are committed, though, to refreshing and to adding to it as we go. To be honest, in T, we feel like we've just begun. So, yes, there will be new collections. Timing on that, we don’t have right now but we really need to focus on doing both which is leveraging the opportunity that we have in T and also leveraging the other collections that we are famous for such as RTT and Keys and the Tiffany Setting. Brian Nagel: (Inaudible -- microphone inaccessible). Pam Cloud: It's a mix. Yes. Frederic Cumenal: Yes. So it's bringing, I mean, it majorly – as I mentioned, mentioning some of the gold collection namely T, contributed for us to recruit new consumers to be in contact with [a lot] of consumers. In addition of serving the – not the needs, but the desire of our existing clientele, what has been said by Pamela is absolutely essential because it has been a gradual evolution in our strategies. I believe that in the past, let's say 10 years ago, we, as a company, we're used to a lot of new introduction for a limited figure of time moving our focus for one collection for a couple of months, three months, to another new collection.

We believe it's not the mobile we want to go for. Our goal is to try to build iconic collection. Again, I'm saying trying to build because we are not going to be successful 100% of the time. Tiffany has been a fantastic success but we are just scratching the surface. We believe that the potential for Tiffany T is more in front of us and we are just, remember, 18 months after the launch, 18 months. We are talking about '14 but we are talking about September or August of 2014. So it's some very successful collection to 10, 20 years to be established. This one, already in 18 months, it's at the forefront of what we are doing on our best day. Janet Kloppenburg: Janet Kloppenburg, JJK Research. Frederic, I wonder if you could talk a little bit more about your positioning with the millennial customer, particularly in the United States. How important is it? How successful have you been there? What's your data analytics are telling you? Is this a top of mind brand for that fashion customer, that self purchaser, and also for that engagement customer? Frederic Cumenal: I mean, millennials are absolutely critical for reasons that you all know of. I mean, they represent a huge very soon majority of potential consumers entering or coming to the market. And they are the early phase of acquiring consumption pattern and developing brand loyalty. So it is extremely rewarding for us if we are getting successful at developing the relevance of the brand for those millennial because they will be with us for the next, arguably, 50 years or more. We know from on internal market research and data that we, as a brand, are very relevant to millennials. We don’t have any major pushback, okay? Having say that, we also know that we have more opportunities to move from these likability to the act of purchase. Can we do better? Absolutely. And what can we do to be better to reinforce our communication on some of our values, key values. Actually, I will argue that even the communication, the current I will, the new part, is quite relevant for millennial despite being quite classic but this is really what millennials are about, partly. So we need to make justice to what we have been doing for more than 10 years now which is about CSR. We are the forefront of CSR initiatives. We are doing more than most, frankly, and clearly more than anyone else in our own sector. We need to let them know because this is a fantastic way to engage them into the brand. And so we need to continue to provide them with some exciting design at moderate prices. Not necessary exclusively talking about under $500 price point. Tiffany T is a good example. You know, it's ranging, frankly, from $500 to $5,000, roughly. That's quite relevant too for the millennial. So this is really what we are after. Janet Kloppenburg: (Inaudible -- microphone inaccessible).

Frederic Cumenal: That has been something that we've been clear about already or that has been cleared about in the past. We believe that a big chunk of the luxury business is along those price points. Maribeth Holland: Maribeth Holland with Sutton Place Capital. A question about China. I just wanted to ask about the relationship between Tiffany and the cruise industries. Clearly, the cruise industries are slowly ramping up ship deployment to that region. So I just wanted to know how close the stores are to the docks or anything else you see coming down the pipe? Frederic Cumenal: You know, we are testing, not in China. And then we ventured in some kind of relationship with one famous cruise line. They are not to move our stores nearby the dock but to move on of our store, at least, inside the boat. And some peer reading that we need to better understand in terms of results and part and but we are really considering the opportunity of developing this kind of activity. Again, Tiffany stores, not Tiffany (inaudible) kind of business, sorry, Tiffany stores in some of the most prestigious cruise lines partially tapping at this new emerging wealthy Chinese population that are more and more interested at not going into the water but going on the water. So that's something that we have our eyes on that. Randy Konik: Randy Konik at Jefferies. I guess two questions. First, your customer research on the sub $500 product category, what is it telling you is the primary issue? Is it innovation? Is it the actual price point materials? What is your research telling you the issue in that particular price strata? And then second, you know, you’ve done a great job of telling us about these engagement strategies in building that long-term relationship with your customers, perhaps more of that local jeweler feel that you build over time that people have. How do you think about what had to be different about dealing with your significant tourist business? Because the significant portion of US sales, New York sales, etcetera; how do you follow that customer from that tourist purchase back towards the home base and build that global relationship on a long-term basis because that can be pretty powerful. Frederic Cumenal: On the first question, you know, we made a few years ago the conscious decision – we took the decision of not probably removing ourselves from the under $500 but to edit down and to reduce our exposure to the under $500 business, $500 price point, for one main reason that by then we had really low entry price point, $100, $150 price point that we are not providing in term of design, in our opinion, enough differentiation versus any potential competitors and I'm not talking, obviously, about the luxury competitors. So the work we've estimated that it was potentially brand dilutive and we took all of this. So a part of what you’ve seen are the results of that. The exposure of the number of SKUs that we have under $500 price point has been significantly reduced within the past three years. That's number one.

Second, under $500 price point is very important for us because, again, this is an entry price point to the brand. The only difficulty for us is to be able to provide some design vision to those categories because it could be labor intensive or material intensive and most of the time, it's easier for our designers to do things above the $500 threshold than below the $500 threshold. But you're going to see as of March and April and May with the larger distribution everywhere in the US and in some of other countries that there are a lot of things that we can do under the $500 price point. We are using – and I'm just reiterating what Pamela said earlier, the return to Tiffany and the return to Tiffany love as a very good example of what we can do and what we are committed at doing. Mark Aaron: Is that Kimberly? Kimberly Greenberger: Thanks so much. Kimberly Greenberger, Morgan Stanley. I'm wondering if you can talk about the CRM rollout that you’ve got going on this year and the different ways in which you envision utilizing that CRM system to grow sales over time. Thanks. Frederic Cumenal: As I mentioned, we believe there's a huge capacity with programs, and the customer likes to have really personalized approach by having a client portfolio managed by each sales associate, enable them to engage in high touch point with small guidelines and capturing along the way the results and improving along the way performance of those outreach activation plan. So the CRM is about, really, managing the royalty, going up to royalty. We have great opportunities here because definitely, we are engaging in the relationship with the client from the beginning and the entry to the high end. And we also have opportunities by tapping into potential customers because we have collaboration with third parties. We are looking at expanding our reach and this is where the CRM program are really instrumental to complement all our marketing activities whether it's advertising or PR. Zachary Sacks: Hi. Zachary Sacks from Waddell & Reed. I just had a question about store productivity. I mean, there's a lot of talk about to a low-level investment as far as training and getting the sales force in operating away, it sounds like. And as long -along with that, you’ve got renovations which are in the Vancouver case, increasing the store size by 2.5 times. I know in the past you’ve talked about a leverage point of about 5% for comp. So are we to except in this transition period a lot further, I guess, operationally leverage at the store level in Americas? Frederic Cumenal: Ralph, you want to take on that?

Ralph Nicoletti: Yes. Zach, on store productivity overall, as you’ve said, we have said that around 5% was the level in where we get leverage. We're working this from a couple different ends. One is on the cost side to drive down costs to help bring down that point of where you can get leverage. On the store piece, particularly in the US, there's a combination of a couple things going on. One, when we make big investments like the one in Vancouver, for instance, where we have this fantastic location and then have the building to upsize the store, we would expect to get more leverage and more productivity out of that location than we currently do today. So in that kind of instance, we would expect to see the metrics improve. But then there's also within the network of stores we, in particular in the US, we have some older stores. We have to make some renovations in the existing locations. And those are expenses that we be adding in the P&L that will likely not necessarily drive sales per square foot up and put a little bit of some pressure on it. So I think it's a balance of both when we look at. But overtime, we would expect to be able to between the investments from making in local marketing in CRM, focus on comp sales, sales training improving locations, getting the store experience even further improved, we would expect to see sales per square foot improvement overtime. Paul Lejuez: Paul Lejuez, Citi Group. Two questions. One, you guys showed us a bunch of manufacturing facilities all over the world. Just wondering are all those included in your cost of goods line, both the facilities and the people working there? So just a modeling question. And then second on the store closures, how many are you looking at stores that could potentially get close both in the US and globally? Ralph Nicoletti: Maybe I'll just take both of those. On the manufacturing, yes. So all the variable and fixed manufacturing related to the facilities is – falls in our cost of goods sold, so that's where you'll see that expense. And I would say that’s just traditional GAAP accounting is what we followed there, of course. On the store closures, I would just think of it this way, it's something that – we're looking closely. You know, maybe we're going to look at it more closely than we have in the past. Having said that, I'm not seeing a significant amount store closures over a period of time. So I wouldn't read anything into that more than, we just take a critical look. Unidentified Audience Member: Frederic, I think you used the world tension, I used the word balance. Tiffany has always had this conversation for as long as I could remember talking to Mark about it; sterling silver, very high-end, very exclusive, demographic.

So when I think about your push into social media on the marketing side and I think about your brand on social media, what lens should I be thinking about because you flashed the screen up there and while I'll be thrilled to see, you know, a Snapchat with my Tiffany when I come close to your store, I'm a little less enthused about the Tinder that I saw up there. I'm old, so maybe I'm completely wrong, but if you think about how we should think about how we should think about the lens of the social media for Tiffany here and in China because I know in China it's exceptionally important especially for that millennial consumer which is your consumer in China, realistically? Pam Cloud: It's a great question and I would say that overall, what we want to do on all of our social media platforms are to tell stories to create aspirations. So we don’t – while that audience may skew the millennials who may – on the immediate, frankly, seeking things under $500, for example, we want to transform them into lifelong customers who aspire to the full range of our portfolio. So I think that you'll see a variety but that all the storytelling is about aspiration. We're not focused on the lower end. We're going to be telling wonderful stories at the end of this week about Blue Book, about engagement, about engagement, about our craftsmanship and all the highest qualities of the brand. Unidentified Audience Member: (Inaudible -- microphone inaccessible). Pam Cloud: Absolutely. Mark Aaron: There may be one or two more? Dana Telsey: Hi, Dana Telsey, TAG. Earlier, at the end of last month, I believe you spoke at one of the French Chamber of Commerce sessions and I think one of the discussions was about the difference between European luxury goods companies and American luxury goods companies. Given that you’ve worked at both now, how do you see the difference and especially given the game plan of how channels are changing going forward compared to the past? Frederic Cumenal: Frankly, I'm more interested in the specifics of the company, of the brand, not about generalization. Generalization are extremely interesting for public debate, but here, we are very much focusing on Tiffany. And frankly, one of the differences that we have at Tiffany is – and I'm using that a little bit as a teasing line, but I'm the ultimate New Yorker. I'm even not American. I live in New York. I always live in big cities around the globe. And this is what New York is made of, attracting – I don’t know if I'm talented so I'm putting myself in this category, but it's a very creative or talented people or people that are just dying to change their life or to do something else.

And the spirit transpires, is going through the brands such as Tiffany, this obsession to go for innovation. This obsession to treat everyone as an equal. This obsession to welcome the – what was the $100 buyer price point, I mean, buying in the past that arguably now is more $250 or $350 price point with ultimately the same respect than the folks entering in our stores to buy for $20,000 or $50,000. That is what I call being inclusive. You know, we are from everywhere. We are just driven by aspirations. Now maybe some of the brands – not direct competitor, I would never do that – have different origins, have been fortunate enough to lead fantastic companies with European origins. And those regions where based on king or queens of – they were based aristocracy. It's aristocracy by definition is exclusive. It's for me or for my group of people. Maybe one day you could aspire to join us but I'm not sure you can now. So it's a little bit different. Both model has the chance, I mean, I strongly believe in the model of Tiffany. Mark Aaron: Well, I think we all believe in the model of Tiffany, so that's probably – Frederic Cumenal: That’s a good line. Mark Aaron: A good time to wrap it up. Thank you all very, very much for attending. And of course, if any of you have any follow-up questions in the future, just give me a call. Frederic Cumenal: Thank you all. Mark Aaron: Have a great day. Frederic Cumenal: Thank you.