Rouge Partners Outline Description 1. Opportunity Set Luxury goods is a strong growth market, reflecting the growing disposable income of BRIC markets and the innate desire of individuals to demonstrate their success and good taste through the acquisition, gifting and wearing of high-end luxury brands. The universe of global luxury brands is highly fragmented, with the top 6 players owning just 10% of the brands. There is an increasing divergence between the larger brand-owning groups and the smaller houses, due to the level of investment required to expand in key markets and the challenges of supporting growth across a number of geographies at the same time. There is an opportunity to create value through building a new specialist luxury good group comprising 5 to 7 brands, bringing together a top flight team with the required experience, supported by a shareholder base with insight and relationships in the key growth markets of the next decade. Rouge's management team has identified approximately 70 brands in the key categories of Accessories and Leather, Jewelry and Writing, Luxury Daywear, and Watches as well as a very small number of retail-led Fragrance brands which they believe could be acquired and grown successfully within this new luxury goods company. The focus will be on accelerating the growth of brands with high potential rather than turnarounds or the implementation of high-risk strategies. Discussions with a number of key targets have been initiated. 2. Structure Rouge Partners has been structured as a partnership between a Management Team and 10 equal Founding Investors each committing to invest the same amount of capital, €50m each. Well-established entrepreneurial families in the key growth markets are in discussions with Rouge Partners to become its Founding Investors. The objective of the partnership is to create a new, independent, publicly traded luxury goods group, which will list in five year's time, allowing th