Giordano International Limited (Stock code: 709) August 27, 2009 (Thursday ) 2009 Interim Results

August 27, 2009Giordano 2009 Interim Results 2 Group Financial Highlights (Continuing operations) For the six months ended June 30, 2009 (in HK$ millions) 2009 YOY Change Turnover2, % Mainland China Retail & Distribution turnover % Gross profit % Gross margin48.2%- 350 bps Operating profit % Operating margin3.3%- 710 bps Profit attributable to shareholders % Earnings per share (in HK cents) % 1 1H08 profit inclusive of HK$33M China reinvestment tax credit and HK$17M gain on disposal. Excluding non-recurring items, 1H09 operating profit declined by 68.7% and profit attributable to shareholders declined by 70.7% YOY.

August 27, 2009Giordano 2009 Interim Results 3 Group Financial Highlights For the six months ended June Cash inflow from operating activities (in HK$ millions) ,2 Inventory turnover on sales 3 25 days28 days 1 Net cash & bank balances (in HK$ millions) Current ratio2.5x2.3x 4 Interim dividend (in HK cents) Special interim dividend (in HK cents) -2.0 Total interim dividend (in HK cents) Earnings per share (in HK cents) Payout ratio62.5%46.8% 1 Continuing and discontinuing operations combined 2 Inclusive of HK$33M China reinvestment tax credit 3 Inventory held at period end divided by turnover times number of days for the period 4 As at December 31, 2008

August 27, 2009Giordano 2009 Interim Results 4 Retail & Distribution For the six months ended June 30, 2009 (in HK$ millions) 2009 YOY Change Turnover1, % Comparable store sales- 9.2%N/A Gross profit % Gross margin50.0%- 480 bps Operating profit % Operating margin1.4%- 830 bps Total number of outlets1, stores

August 27, 2009Giordano 2009 Interim Results 5 Giordano & Junior 86% (84%) 1 BSX 4% (5%) 1 Giordano Concepts 3% (5%) 1 Giordano Ladies 6% (6%) 1 Retail & Distribution turnover by brand For the six months ended June 30, YOY figures in brackets Others 1% ( 0%) 1

August 27, 2009Giordano 2009 Interim Results 6 Giordano & Junior 1H091H08Remarks Turnover (in HK$ millions) 1,5691,756 –Gross margin began to recover in 2Q09 from new, higher margin products –Operating profit declined largely due to Mainland China –12 outlets added in China and 11 closed outside China in 1H09 Comp store sales %+ 0.1% Operating profit (in HK$ millions) Number of outlets1,3931,341 Giordano Ladies 1H091H08Remarks Turnover (in HK$ millions) –Gross margin lowered by discounting but began to recover in 2Q09 –High rental reduced operating margin –Five outlets closed in 1H09 Comp store sales %+ 5.8% Operating profit (in HK$ millions) 113 Number of outlets In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009Giordano 2009 Interim Results 7 Giordano Concepts 1H091H08Remarks Turnover (in HK$ millions) –Product missteps hurt sales and margins –7 non-performing stores closed in 1H09 –Reposition as high end menswear brand beginning F/W09 Comp store sales %- 0.1% Operating loss (in HK$ millions) (19)(1) Number of outlets24 BSX 1H091H08Remarks Turnover (in HK$ millions) –Gross margin increased by 240 bps –Operating loss reduced by half –10 outlets closed in 1H09 Comp store sales %+ 4.2% Operating loss (in HK$ millions) (6)(11) Number of outlets In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009Giordano 2009 Interim Results 8 Mainland China 42% (39%) 1 Hong Kong & Macau, 20% (20%) 1 Taiwan, 15% (16%) 1 Singapore, 8% (9%) 1 Australia, 4% (5%) 1 Other self-operated markets 2 11% (11%) 1 1 YOY figures in brackets 2 Includes Malaysia, Thailand, Indonesia and Japan Retail & Distribution turnover by market For the six months ended June 30, 2009

August 27, 2009Giordano 2009 Interim Results 9 Mainland China 1H091H08Remarks Turnover (in HK$ millions) –Half of business from Southern and Eastern China hard hit by downturn –Heavy discounting in 1Q09 to clear stocks –High operating cost from 2008 expansion reduced operating margin –Added three outlets in 1H09 Comp store sales %+ 11.8% Operating profit (in HK$ millions) Number of outlets Hong Kong (& Macau) 1H091H08Remarks Turnover (in HK$ millions) –Gross margin began improving in 2Q09 –High rentals squeezed operating margin –Closed two outlets in 1H09 Comp store sales %+ 3.8% Operating profit (in HK$ millions) 1027 Number of outlets8086 Performance review : Group markets 1 In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009Giordano 2009 Interim Results 10 Taiwan 1H091H08Remarks Turnover (in HK$ millions) –Heavy discounting in 1Q09 to clear stocks –Gross margin began improving in 2Q09 –Closed 13 outlets in 1H09 Comp store sales %+ 2.2% Operating loss (in HK$ millions) (4)(2) Number of outlets Singapore 1H091H08Remarks Turnover (in HK$ millions) –Heavy discounting in 1Q09 to clear stocks –Gross margin began improving in 2Q09 –Closed five outlets in 1H09 Comp store sales %- 13.8% Operating loss (in HK$ millions) (3)(4) Number of outlets4654 Performance review : Group markets 1 In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009Giordano 2009 Interim Results 11 South Korea 1H091H08Remarks Turnover (in HK$ millions) –Local currency turnover increased by 4.3%, gross margin up 50 bps (better products) –1H09 profit contribution: HK$9 million (1H08: HK$4 million) –On Jun 30, 2009, the Group held 48.5% in Giordano South Korea –Two outlets added in 1H09 Comp store sales %+ 2.1% Operating profit (in HK$ millions) N/D Number of outlets Middle East 1H091H08Remarks Turnover (in HK$ millions) −1H09 profit contribution: HK$1 million (1H08: HK$6 million) −On Jun 30, 2009, the Group held 20.0% in Giordano Middle East −Three outlets added in 1H09 Comp store sales %+ 17.0% Operating profit (in HK$ millions) N/D Number of outlets Performance review : Non-consolidated markets 1 In local currency for outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009Giordano 2009 Interim Results 12 Resume expansion in Mainland China. Target to add at least the same number of stores as 2H08 (ie 50) and support expansion program with increased A&P Inventory levels are healthy (ITOS = 25 days as at 30 June 2009). Focus on rebuilding margins in all markets Gross margin in Hong Kong, Taiwan and Singapore began trending up June and July Continue to collaborate with suppliers on low FOB products Develop differentiated products with higher prices and margins New 5,500 sq m design centre in Dongguan opened in August with 200 design and product development and sourcing staff 2H09 growth & profit drivers

August 27, 2009Giordano 2009 Interim Results 13 Number of outlets As at June 30, 2009 As at Dec 31, 2008 YTD Change Giordano & Junior Giordano Concepts Giordano Ladies BSXOthersTotal Mainland China Hong Kong & Macau Taiwan Singapore Australia Malaysia Indonesia Thailand Japan Retail & Distribution1, ,5281, South Korea Middle East & India Philippines Others Export & Licensing TOTAL1, ,9932,

Giordano International Limited (Stock code: 709) Q&A 2009 Interim Results