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Giordano International Limited (Stock code: 709) November 13, 2008 (Thursday)

An update on Giordano International Limited's third quarter performance in 2008, including highlights, turnover by brand and market, performance review by brand and market, as well as the outlook and strategies for future growth.

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Giordano International Limited (Stock code: 709) November 13, 2008 (Thursday)

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  1. 2008 Third Quarter Update Giordano International Limited (Stock code: 709) November 13, 2008 (Thursday)

  2. Group Operations Highlights 1 Excluding the results of Placita, the Group’s main garment manufacturing subsidiary, which has been substantially divested in Aug 2008. Giordano 2008 Third Quarter Update

  3. Group Operations Highlights 1 Continuing operations, excluding the results of Placita, the Group’s main garment manufacturing subsidiary, which has been substantially divested in Aug 2008. Giordano 2008 Third Quarter Update

  4. Turnover by Brand Nine Months Ended Sep 30, 2008 BSX • 5% of turnover (2007: 7%) • Turnover down 23.4% YOY • Same store sales down 0.1% • Launched in South Korea and the Middle East • Net reduction of 6 outlets • 111 stores as at Sep 30, 2008 • Giordano Concepts • 5% of turnover (2007: 4%) • Turnover up 19.3% • Same store sales down 7.2% • Net addition of 15 stores • 29 stores as at Sep 30, 2008 • Launching in the Middle East and Philippines in 4Q08 • Giordano Ladies • 6% of turnover (2007: 6%) • Turnover up 11.7% • Same store sales up 3.6% • Net addition of 7 stores • 46 stores as at Sep 30, 2008 • Launching in the Philippines in 4Q08 • Giordano & Giordano Junior • 84% of turnover (2007: 83%) • Turnover up 10.9% • Same store sales down 0.7% • Net addition of 34 stores • 1,757 stores as at Sep 30, 2008 Giordano 2008 Third Quarter Update

  5. Performance Review by Brand Giordano 2008 Third Quarter Update

  6. Performance Review by Brand 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration Giordano 2008 Third Quarter Update

  7. Retail & Distribution Turnover by Market Nine Months Ended Sep 30, 2008 Others, 11% (11%)1 • Mainland China • 33% of turnover (2007: 29%) • Turnover up 31.2% YOY • Gross margin up by 410 bps • Added 61 outlets • 881 outlets as at Sep 30, 2008 Thailand, 3% (3%)1 Malaysia, 4% (3%)1 Indonesia, 4% (4%)1 Australia, 5% (5%)1 • Singapore • 8% of turnover (2007: 9%) • Turnover down 5.1% • Number of stores unchanged • Taiwan • 14% of turnover (2007: 15%) • Turnover down 0.5% YOY • Net reduction of 11 outlets • 199 outlets as at Sep 30, 2008 • Hong Kong • 18% of turnover (2007: 21%) • Turnover down 3.3% YOY • Net reduction of 6 outlets • 86 outlets as at Sep 30, 2008 1 YOY figures in brackets Giordano 2008 Third Quarter Update

  8. Performance Review by Market 1 South Korea and Middle East sales are not consolidated into Group sales. On Sep 30, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East. Giordano 2008 Third Quarter Update

  9. Performance Review by Market 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration 2 South Korea and Middle East sales are not consolidated into Group sales. On Sep 30, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East. Giordano 2008 Third Quarter Update

  10. Review & Outlook • Mainland China continues to grow • Twenty-two stores, including new flagship stores in Guangzhou, Hangzhou, Wuhan and Chengdu, were added in 3Q08 • 3Q08 sales up by 25.3% YOY in Mainland China • Turnover up by 31.2% and gross profit up by 43.0% YOY in the nine months ended Sep 30, 2008 • Despite unseasonably warm weather and uncertain economic outlook, sales still increased by high single digit YOY in Oct 2008 • Markets outside Mainland China hit by global financial tsunami • Hong Kong, Taiwan and Singapore sales down respectively by 9.9%, 11.0% and 3.7% YOY in 3Q08 • Hong Kong and Taiwan sales were down by double digit in Oct 2008 • Group turnover decreased by high single digit YOY in Oct 2008 Giordano 2008 Third Quarter Update

  11. Review & Outlook • Continue to invest in Mainland China • Focus on 2nd and 3rd cities where growth prospects are expected to be good due to the recently announced stimulus package • New store projects and hiring outside Mainland China on hold • Rigorous inventory control • Inventory turnover on sales for nine months ended Sep 2008 was 30 days, one day better than 2007 • Conservative financial management • Net cash of HK$425 million as at Sep 30, 2008 kept in commercial banks • Capitalize on Giordano’s reputation for attentive service, excellent quality and superior value to build customer base Giordano 2008 Third Quarter Update

  12. Global Retail Network Giordano 2008 Third Quarter Update

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