A n n u a l R e s u l t s

2 0 1 3 A n n u a l R e s u l t s 27 February 2014

Overview Accounting Sales up 3%. Global Brand Sales down 2%. Sales mainly decline in China, Taiwan and Singapore offset by growth in other markets, particularly Thailand and Indonesia. GP % up 2pp to 60.7%. ME acquisition up 2.3% offset by adverse SEA currencies devaluation. OPEX down 1% (excluding Middle East acquisition impact). PATS down 3% excluding non-recurring exceptional gains. Total system inventory stayed flat. Inventory profile is fresh. Dividend payout remained at 40 HK cents (94% payout ratio), reflecting the Group s strong cash flow position 27 February 2014 Giordano 2013 Annual Results 2

Operations Highlights Group Sales up 3% but Trading PATS down 3% (In HK$ millions) 2013 2012 Variance Sales 5,848 5,673 +3% Gross margin 60.7% 58.7% +2.0pp Operating expenses (2,836) (2,620) +8% Comparable operating expenses (without Middle East) (2,606) (2,620) -1% Net profit as reported 663 826-20% Net profit margin as reported 11.3% 14.6% -3.3pp Net profit excluding exceptional disposal gains 663 683-3% Net profit margin excluding exceptional disposal gains 11.3% 12.0% -0.7pp 27 February 2014 Giordano 2013 Annual Results 3

PATS Reconciliation (HK$ millions) 900 800 700 600 500 (143) (34) (39) (50) 46 57 400 300 200 826 683 606 11% 663 3% 100 0 2012 Reported PATS Less: exceptional disposal gains 2012 Trading PATS Decrease in profit from Mainland China Decrease in profits from Hong Kong & Taiwan Decrease in profits from Rest of Asia Pacific Corporate expenses, wholesale & interco margins, NCI and others 2013 Trading Profit (excludes additional profits from Middle East) Additional profits from Middle East 2013 Reported PATS 27 February 2014 Giordano 2013 Annual Results 4

2013 Final Dividend Dividend remained 40 HK cents, 94% pay-out ratio (In HK cents) DPS [1] EPS Payout Ratio Dividend yield on full year average share price [2] on current share price 2013 40.0 42.6 94% 5% 8% 2012 as reported 40.0 53.8 74% 6% 2012 excluding accounting gains on deemed disposals (HK cents) 60 50 40 30 20 10 0 86% 192% Dividend Per Share Payout Ratio 96% 23.0 26.5 26.5 40.0 46.4 87% 6% 21.5 109% 46% 9.5 27 February 2014 Giordano 2013 Annual Results 5 83% 16.0 75% 79% 27.0 87% 94% 38.0 40.0 40.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 [1] Includes interim dividend of 16.0 HK cents and final dividend of 24.0 HK cents (2012: interim 15.0 HK cents; final 25.0 HK cents) [2] Calculated on full-year average share price (2013: HK$7.45; 2012: HK$6.22) Book close date: May 22-23, 2014 / Dividend payment date: on or about Jun 27, 2014 (%) 200% 160% 120% 80% 40% 0%

Sales Growth and Contribution by Region Sales growth continuing in Southeast Asia; sales decline in China, Taiwan and Singapore (HK$ millions) 7,000 6,000 5,673 5,848 5,000 4,000 3,000 2,000 1,000 0 1,898 (33%) 1,756 (31%) 1,427 (25%) Mainland China 9% / 11%* Hong Kong & Taiwan 2% / 1%* Rest of Asia Pacific 2% / 8%* 1,727 (30%) 1,725 (29%) 1,460 (25%) 108 (2%) Middle East Wholesale sales to 485% 632 (11%) 484 (9%) overseas & others 37% 304 (5%) (ex-me: 5%) 2012 2013 Mainland China Hong Kong & Taiwan Rest of Asia Pacific Middle East Wholesale sales to overseas & others % to group sales in brackets * Sales growth excludes exchange effects 27 February 2014 Giordano 2013 Annual Results 6

Brand Sales Growth for the last 8 quarters Tough trading conditions reflecting weakening macro and intense competition 6% 4% 2% 3% 3% 2013 2012 Variance Global brand sales (HK$ millions) 7,912 8,062-2% Comparable store sales growth -2% -1% 2% 0% -2% -1% 0% 0% -2% -1% -1% -1% -2% -2% -2% -2% -2% -4% -3% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Total Brand Sales Growth Comparable Store Sales Growth 27 February 2014 Giordano 2013 Annual Results 7

Store Number by Market as at 31 December 2013 Other Markets, 1% 24 outlets as at Dec-13-5 in 2013 Japan, 0% 10 outlets as at Dec-13 +4 in 2013 Myanmar, 4% 109 outlets as at Dec-13 +13 in 2013 Philippines, 2% 62 outlets as at Dec-13 +5 in 2013 Australia, 1% 32 outlets as at Dec-13 Unchanged in 2013 Singapore, 2% 52 outlets as at Dec-13-2 in 2013 India, 3% 65 outlets as at Dec-13 +13 in 2013 Malaysia, 3% 87 outlets as at Dec-13 +3 in 2013 Hong Kong & Macau, 3% 88 outlets as at Dec-13 +4 in 2013 Mainland China, 44% 1,161 outlets as at Dec-13-82 in 2013 South Korea, 9% 244 outlets as at Dec-13-9 in 2013 Worldwide Total 2,642 outlets -6 in 2013 Taiwan, 8% 201 outlets as at Dec-13-13 in 2013 Indonesia, 7% 179 outlets as at Dec-13 +36 in 2013 Thailand, 5% 133 outlets as at Dec-13 +16 in 2013 Middle East, 8% 195 outlets as at Dec-13 +11 in 2013 27 February 2014 Giordano 2013 Annual Results 8

Gross Margin Reconciliation Margin improved by Middle East acquisition and product mix changes. SEA currency depreciation adversely affected margin 62% 61% 2.3% 0.3% 60% (0.5%) (0.1%) 59% 58% 60.7% 57% 58.7% 56% 55% 2012 Gross Margin Middle East Impact Increase in purchase costs due to currency depreciation in Rest of AP Margin erosion in Mainland China Margin improvement in Rest of AP 2013 Gross Margin 27 February 2014 Giordano 2013 Annual Results 9

Gross Profit Reconciliation Margin improved but volume went down (HK$ millions) 4,000 3,500 3,000 (95) Avg. Cost 4% 356 Avg. Price 7% (337) Volume 12% 329 (33) 2,500 2,000 1,500 3,331 (58.7%) +220m ( 7%) 3,551 (60.7%) 1,000 500 0 2012 Gross Profit Cost Increase Price Increase Volume Decrease Middle East (Jan-Oct 2013) Stock Provision and Exchange Difference 2013 Gross Profit 27 February 2014 Giordano 2013 Annual Results 10

Total Operating Expenses Reconciliation OPEX excluding Middle East down 1% reflecting strong cost controls (HK$ millions) 3,500 Shop area 3% Rent/sq.ft. Flat Headcounts Flat Average salaries 3% 3,000 2,500 18 ( 2%) (6) ( 2%) 27 ( 3%) (5) ( 5%) (35) 230 (13) 2,000 1,500 1,000 2,620 46% of sales +216m ( 8%) 2,836 48% of sales 500 0 2012 Total OPEX Shop Rental Other Shop Overhead Staff Costs (shop & office) Advertising & Marketing Other Operating Expenses Middle East (Jan-Oct 2013) Exchange Difference 2013 Total OPEX 27 February 2014 Giordano 2013 Annual Results 11

Operating Profit (Margin) by Region Low sales growth deteriorated profit (HK$ millions) 400 350 300 250 Profit Contribution 18% 13% 31% 26% 35% 31% 3% 15% 13% 15% 269 (15.3%) 218 (12.6%) 301 (21.1%) 259 (17.8%) 2012 2013 200 150 100 156 (8.2%) 112 (6.5%) 155 124 (19.6%) 123 108 50 29 (26.9%) 0 Mainland China Hong Kong & Taiwan Rest of Asia Pacific Middle East Wholesale Sales to Group Companies & Overseas Franchisees The above exclude the corporate function of -HK$8m (2012: -HK$29m excluding exceptional disposal gains) 27 February 2014 Giordano 2013 Annual Results 12

EBIT and Free Cash Flow from Operations Free cash flow weakened by increased working capital for inventory and rental deposits for store expansion in SE Asia (HK$ millions) 1,200 1,000 137 800 (156) (41) (55) (31) 600 400 929 (184) 599 200 0 EBIT Depreciation & amortization CAPEX less disposal Share of pre-tax profit of JCE/associate (net of dividend income) Changes in working capital Others Tax paid Free cash flow from operations 27 February 2014 Giordano 2013 Annual Results 13

Changes in Working Capital (In HK$ millions) At Dec-12 Changes in working capital Middle East completion dividend (net) At Dec-13 Inventory 476 42 518 Trade receivables 361 (45) 316 Trade payables (193) 33 (160) Other receivables and payables (189) 25 (164) Middle East completion dividend (net) (87) 87 368 55 87 510 27 February 2014 Giordano 2013 Annual Results 14

(HK$ millions) 700 600 500 400 300 200 100 0 95 605 Inventory (ex-me: 63 days) 74 (ex-me: 68days) 82 73 92 ME ME 476 518 403 426 Dec 2011 Dec 2012 Dec 2013 Inventory Turnover days (Days) 100 90 80 70 60 50 40 30 20 10 0 (HK$ millions) 400 350 300 250 200 150 100 50 0 Trade Receivables 40 38 40 358 361 316 Dec 2011 Dec 2012 Dec 2013 Trade receivables Days Sales Outstanding (Days) 45 40 35 30 25 20 15 10 5 0 (HK$ millions) 350 300 250 200 150 100 50 0 Trade Payables 36 37 34 298 193 160 Dec 2011 Dec 2012 Dec 2013 Trade payables Days Purchases Outstanding (Days) 40 35 30 25 20 15 10 5 0 (HK$ millions) 180 160 140 120 100 80 60 40 20 0 Capital Expenditure 137 115 95 156 115 108 Dec 2011 Dec 2012 Dec 2013 Capital expenditure Depreciation 27 February 2014 Giordano 2013 Annual Results 15

Total Inventory including finished goods at suppliers (In HK$ millions) Dec 2013 Dec 2012 Inventory balance held by the Group 518 476 Inventory held by franchisees in Mainland China 94 133 Finished goods at suppliers (not yet shipped) 27 33 Total system inventory 639 642 Inventory Aging Analysis GROUP MAINLAND CHINA Dec 2013 Dec 2012 Dec 2013 Dec 2012 Core items 16% 30% 2% 15% Current season 61% 49% 88% 70% Past seasons 23% 21% 10% 15% 100% 100% 100% 100% 27 February 2014 Giordano 2013 Annual Results 16

Change in Net Cash and Bank Balances (HK$ millions) 2,000 1,800 1,600 599 (87) Completion dividend paid to NCI of subsidiaries in Middle East 1,400 1,200 98 3 1,000 800 (768) 600 1,173 1,105 400 200 0 Net Cash & Bank Balances on 31 Dec 2012 Free Cash Flow from Operations Dividend paid to shareholders & NCI Proceeds from issuance of new shares Exchange difference on opening net cash and bank balances Net Cash & Bank Balances on 31 Dec 2013 27 February 2014 Giordano 2013 Annual Results 17

outlook

Mainland China: Multi-brand Strategy To put the right merchandise in the right place New Budget brand* New Women brand* Giordano Men (GM) Giordano Women (GW) (GL) (GJ) New Budget brand New Women brand Department stores strategy: move from casual apparel floor to separate Men, Women and Junior counters Strong VM, more innovative merchandise & more intimate store ambience Replicate the success of BSX in HK to China Open shops in prime shopping centers and co-location with international brands To launch in 2Q14 Change of channel strategy Replace GIO shops in supermarket which offer good quality functional merchandise at a reasonably low price Replace cashier by cell phone To launch in 2H14 Italian design values but still functional simplicity Price point in between GL and GW * To launch in 2014 by China as pioneer 27 February 2014 Giordano 2013 Annual Results 19

Mainland China: Other Strategies E-strategy Partner with Alipay online to offline (O2O) applications >50% Eshop specific merchandise Fast marketing and brand x-over 12 campaigns launched in 2H positive feedback from business partners still need to improve the quality and coverage Improve Eshop gross margin AD strategy Further concentration of franchisees Subsidy only for shop refurbishment and marketing initiatives which build the brand Store portfolio development Not chasing sales from opening shops but delivering profits from good store portfolio Special task force was set up to turnaround material loss making stores 27 February 2014 Giordano 2013 Annual Results 20

Outlook for other regions Hong Kong & Taiwan New multi-brand mini-department store format to roll out in Macau in 2014 High quality fast marketing programs continue to launch in 2014 X-over campaigns in Taiwan South East Asia Continue to expand to realize First mover advantage Launch Marketing programs as brand differentiator Continue to develop small markets such as Vietnam, Cambodia, Myanmar Middle East Back to growth momentum in 2014 after a disappointing year Emerging new markets development including Middle East, Asia Minor, Central Asian republics, Africa, Eastern and Central Europe and Latin America 27 February 2014 Giordano 2013 Annual Results 22

Concepts Idea came from mini department store Each brand has its own renovation elements to highlight its brand image Elements of mini department store: 4 zones (Giordano, Giordano Essential, Junior, BSX) Corridor Different colour signature and renovation Variety of choices

Giordano 4 zones Giordano Essential Junior BSX

An Artistic Collaboration Product by 11 Asian Designers from Hong Kong, China, Taiwan, Japan, Korea, and Thailand Images taken by WANG Chien-yang ( 王建揚 ), a famous Art Photographer in Taiwan Event & pop-up store at a Brand New Arty Place, PMQ ( 元創方 ) @ Hollywood Road

Other objectives for 2014 Maintain Strong Cash Flow Further rationalize inventory in 2014 Concentrating more cash at Headquarter by treasury initiatives Widen supplier base to maintain gross margin Invest prudently in store upgrades and marketing initiatives. Maintain strong control on headcount and operating costs Portfolio Development Continue to review opportunities to develop the Group s operations through direct investment, partnerships with franchisees and joint ventures. 27 February 2014 Giordano 2013 Annual Results 29

Q&A 27 February 2014 Giordano 2013 Annual Results 30

Summary of Total Sales and Comparable Store Sales Growth by Market Total sales [1] Comparable store sales [2] (HK$ millions) 2013 2012 Variance 2013 2012 Mainland China 1,727 1,898-9% -6% -6% Hong Kong 1,042 1,024 +2% +2% +11% Taiwan 683 732-7% -4% -9% Singapore 373 398-6% -5% -5% Indonesia 435 380 +14% +14% +18% Malaysia 240 234 +3% +2% +3% Thailand 241 199 +21% +13% +9% Australia 142 189-25% -13% -2% India 29 27 +7% -4% -3% UAE 246 54 +356% -2% +2% Saudi Arabia 335 54 +520% -4% +7% Other Middle East regions 51 n/a -8% -1% Retail & Distribution total 5,544 5,189 +7% -2% -1% Wholesale sales to overseas & others 304 484-37% Group total 5,848 5,673 +3% [1] Total Sales are total retail sales in self-operated stores and total wholesale sales to franchisees, translated at average exchange rates. [2] Comparable Store Sales are total brand sales, at constant exchange rates, from existing stores and e-shop that have been opened/operated in the prior period. 27 February 2014 Giordano 2013 Annual Results 31

Global Retail Network Number of outlets Giordano & Junior Giordano Ladies As at 31 December 2013 BSX Others Total As at Dec-12 Change Mainland China 1,104 27 30 1,161 1,243-82 Hong Kong & Macau 57 13 18 88 84 +4 Taiwan 171 14 16 201 214-13 Singapore 49 3 52 54-2 Indonesia 147 5 27 179 143 +36 Malaysia 87 87 84 +3 Thailand 126 7 133 117 +16 Australia 32 32 32 India 65 65 52 +13 UAE 44 44 43 +1 Saudi Arabia 92 7 99 88 +11 South Korea 208 36 244 253-9 Other markets 239 2 16 257 241 +16 Group total 2,421 71 123 27 2,642 2,648-6 27 February 2014 Giordano 2013 Annual Results 32