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THIRD QUARTER OPERATIONS HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007. Group Operations Highlights Nine Months Ended September 30, 2007. Group turnover 13.0 % Retail & Distribution turnover 11.1% Comparable store sales 2.9%
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THIRD QUARTER OPERATIONS HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007
Group Operations Highlights Nine Months Ended September 30, 2007 • Group turnover 13.0% • Retail & Distribution turnover 11.1% • Comparable store sales 2.9% • Mainland China retail sales 25.4% • Manufacturing third party sales 31.5% • Group gross profit 8.7% • Group gross margin 47.6% • Net cash & bank balances (HKD millions) 401 • Inventory turnover on sales (days) 36 Giordano 2007 Third Quarter Results
Divisional Highlights • Group turnover increased by high-teens YOY in Oct-07. 1 Sales to external parties, net of intra-group sales Giordano 2007 Third Quarter Results
Group Turnover by Business Segment Nine Months Ended September 30, 2007 BSX / Bluestar Exchange, 6% (7%)1 Giordano Ladies, 5% (5%)1 Garment Trading & Manufacturing2, 11% (9%)1 Giordano Concepts, 4% (N/A)1 Giordano core line & Giordano Junior, 74% (79%)1 1 YOY figures in brackets 2 Sales to external parties, net of intra-group sales Giordano 2007 Third Quarter Results
Retail & Distribution Division Operations Highlights • 3Q07 Retail & Distribution gross margin widened to 50.3% (3Q06: 49.9%). • Oct-07 Retail & Distributionsales and gross profit both increased by mid-teens. Giordano 2007 Third Quarter Results
Retail & Distribution Division Operations Highlights 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration. Giordano 2007 Third Quarter Results
Giordano core-line & Junior • Accounted for 83.6% of Retail & Distribution turnover for the nine months ended Sep-07. • Oct-07 sales up mid-teens YOY. Giordano 2007 Third Quarter Results
Giordano Ladies • Accounted for 5.6% of Retail & Distribution turnover for the nine months ended Sep-07. • Launched in Kuala Lumpur in 3Q07. • Total 37 stores as of end Sep-07. • Oct-07 sales up mid-teens YOY. • New store planned in Jakarta in 4Q07. Giordano 2007 Third Quarter Results
Giordano Concepts • Accounted for 4.2% of Retail & Distribution turnover for the nine months ended Sep-07. • Added three stores in Guangzhou, Taipei and Kuala Lumpur in 3Q07. • Total 12 stores as of end Sep-07. • At least another two stores planned in 4Q07. Giordano 2007 Third Quarter Results
BSX / Bluestar Exchange • Accounted for 6.6% of Retail & Distribution turnover for the nine months ended Sep-07. • Gross margin for the nine months ended Sep-07 up 2.8 percentage points due to better product mix. • 14 out of 125 stores re-branded to BSX as of end Sep-07. • Closed 17 stores in 3Q07 to restructure store network. • Oct-07 sales down low-teens YOY. Giordano 2007 Third Quarter Results
Retail & Distribution Turnover by Market Nine Months Ended September 30, 2007 Others, 11% (11%)1 Thailand, 3% (2%)1 Mainland China, 29% (25%)1 Malaysia, 3% (3%)1 Indonesia, 4% (3%)1 Australia, 5% (6%)1 Singapore, 9% (10%)1 Hong Kong, 21% (23%)1 Taiwan, 15% (17%)1 1 YOY figures in brackets Giordano 2007 Third Quarter Results
Retail & Distribution Division Operations Highlights 1 Korean and Middle East sales are not consolidated into Group sales. Giordano 2007 Third Quarter Results
Retail & Distribution Division Operations Highlights 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration. 2 Korean and Middle East sales are not consolidated into Group sales. Giordano 2007 Third Quarter Results
Mainland China • Opened first Giordano Concepts store in Guangzhou in August 2007. • Total 786 outlets as of end Sep-07. • 20 additional stores planned for 4Q07. • Oct-07 turnover and gross profit up > 20% YOY. Giordano 2007 Third Quarter Results
Hong Kong • Total 93 outlets as of end Sep-07. • Oct-07 sales up low single digit YOY while gross profit up high single digit. Giordano 2007 Third Quarter Results
Taiwan • Closed 16 stores in the nine months to Sep-07. • Total 223 outlets as of end Sep-07. • Oct-07 sales and gross profit up low single digit YOY. Giordano 2007 Third Quarter Results
Singapore • Sales impacted by 2 percentage point GST increase to 7% in Jul-07. • Total 53 outlets as of end Sep-07. • Oct-07 sales down double digit YOY. Giordano 2007 Third Quarter Results
South Korea Nine Months Ended September 30 • Gross margin for the nine months ended Sep-07 up 1.5 percentage points. • Total 165 outlets as of end Sep-07. • Oct-07 sales up low single digit YOY. Giordano 2007 Third Quarter Results
Middle East • Total 142 outlets as of end Sep-07. • Oct-07 sales up mid-teens YOY. Giordano 2007 Third Quarter Results
Global Retail Network Giordano 2007 Third Quarter Results