1. Giordano International Limited 2004 Results
04/12/2018
RESULT HIGHLIGHTS
FOR THE YEAR ENDED DECEMBER 31, 2004
2018/12/4
World Without Strangers

2. Giordano International Limited 2004 Results
04/12/2018
Group Financial Highlights
For the Year Ended December 31
YOY change (%)
2004
2003
Turnover (HK$M)
4,003
3,389
+18.1
Gross profit (HK$M)
2,035
1,634
+24.5
EBITDA (HK$M)
646
488
+32.4
Operating profit (HK$M)
497
364
+36.5
Profit attributable to shareholders (HK$M)
393
266
+47.7
Earnings per share (HK cents)
27.2
18.5
+47.0
Dividend per share - interim (HK cents)
- interim special (HK cents)
- final (HK cents)
- final special (HK cents)
- total for year (HK cents)
4.0
1.5
4.5
13.0
23.0
3.0
12.0
21.0
+166.7
-50.0 -
+8.3
+9.5
Dividend payout ratio (%)
84.6
113.5
-25.5
2018/12/4
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3. Selected Financial Highlights & Ratios For the Year Ended December 31
Giordano International Limited 2004 Results
04/12/2018
Selected Financial Highlights & Ratios For the Year Ended December 31
2004
2003
Net cash & bank balances
HK$689M
HK$784M
Cash inflow from operating activities
HK$322M
HK$498M
Inventory turnover on sales
30 days
24 days
Current ratio
2.7 times
2.5 times
Gearing on shareholder’s equity
3.2%
3.7%
Gross margin
50.8%
48.2%
Operating margin
12.4%
10.7%
Net margin
9.8%
7.8%
Return on average equity
20.9%
14.8%
2018/12/4
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4. Divisional Highlights For the Year Ended December 31
Turnover
Operating Profit
(In HK$M)
2004
2003
YOY Chg
Retail and
Distribution
3,739
3,221
+16.1%
443
319
+38.9%
Manufacturing *
264
168
+57.1% 51 42
+21.4%
Others ** - 3
Total
4,003
3,389
+18.1%
497
364
+36.5%
* Net of inter-segment sales
** Intra-division eliminations
2018/12/4

5. Retail and Distribution Division
For the Year Ended December 31, 2004
Singapore
10%
(11%)
Taiwan
19%
(19%)
Malaysia 3%
(4%)
Hong Kong
22%
(22%)
Others
16%
(14%)
Mainland China
25%
(25%)
Australia 5%
(5%)
Note:
2003 figures in brackets
Retail and Distribution Turnover Composition by Market
2018/12/4

6. Retail and Distribution Division Giordano core line + Junior
For the Year Ended December 31, 2004
Giordano Ladies 4%
(4%)
Bluestar Exchange 8%
(7%)
Giordano core line + Junior
88%
(89%)
Note:
2003 figures in brackets
Retail and Distribution Turnover Composition by Brand
2018/12/4

7. Retail and Distribution Division Giordano core line + Junior
Brand Statistics
Giordano core line + Junior
Giordano Ladies
Bluestar Exchange
Retail Turnover Growth (YOY % Chg)
+16.0
+30.2
+32.5
Gross Margin (YOY Basis Point Chg)
+310
+620
+100
Total comparable store sales %
Total comparable store gross profit %
2018/12/4

8. Market Review Mainland China Sales (HK$M) Sales per Sq. ft. (HK$)
Comp. Store Sales Chg.
Retail Floor area (ft2)
No. of Outlets
2004
952 *
2,400 **
+7% **
557,800 *
671 *
2003
815 *
3,000 **
-13% **
484,300 *
581 *
Sales up 17%; sales per sq. ft. fell 20%
During 2004, we took over certain authorized dealers’ operations.
All brands posted gross margin improvements.
Warm weather dampened sales in 4Q 04.
Completed major refurbishment of Shanghai flagship in April.
Added 74 core line, 2 Ladies and 15 Bluestar outlets. Closed 1 Junior outlet.
* Includes all outlets
** Includes directly managed outlets only
2018/12/4

9. Market Review Hong Kong Sales (HK$M) Sales per Sq. ft. (HK$)
Comp. Store Sales Chg.
Retail Floor area (ft2)
No. of Outlets
2004
810
7,100
+11%
113,700 92
2003
697
6,200
-15%
112,100 75
Sales up 16%; sales per sq. ft. grow 15%
All brands posted higher gross margins.
Renovated core line stores using new store concept.
Added nine core line and eight Bluestar outlets.
2018/12/4

10. Market Review Taiwan Sales (HK$M) Sales per Sq. ft. (HK$)
Comp. Store Sales Chg.
Retail Floor area(ft2)
No. of Outlets
2004
707
2,900
+1%
245,800
236
2003
604
2,600
-13%
241,500
195
Sales up 17%; sales per sq. ft. up 12%
Short sales disruption in March and April due to presidential election controversy.
All brands showed gross margin improvements.
Highest gross margin increase among our major markets.
Added 29 core line and 12 Bluestar outlets.
Current recovery in performance sustainable
2018/12/4

11. Market Review Singapore Sales (HK$M) Sales per Sq. ft. (HK$)
Comp. Store Sales Chg.
Retail Floor area(ft2)
No. of Outlets
2004
391
8,700
+13%
48,600 47
2003
348
7,700
-14%
43,600 43
Sales up 12%; sales per sq. ft. up 13%
Launched Giordano Ladies with first store opening on Orchard Road in 4Q 04.
Added one core line and two Junior outlets.
2018/12/4

12. Market Review Other Markets (in HK$M) Australia Malaysia Indonesia
Thailand
Japan
Total
2004
188
126
119 84 53
570
2003
149
114 90 64 28
445
YOY Change
+26%
+11%
+32%
+31%
+89%
+28%
Above territories account for 15% of total retail & distribution turnover (2003:14%)
Australia accounts for 5% of turnover. Eight new stores added in 2004, seven new stores planned for 2005.
Japan saw the best sales and gross margin growth. Sales per sq. ft. rose 45.0%. Eleven outlets added in 2004 and ten outlets planned for 2005.
Sales in Indonesia and Thailand both grew by over 30%.
2018/12/4

13. Korea and the Middle East
Market Review
Korea and the Middle East
Korea
Consumer spending continued to be weak, sales fell by 11% YOY
Gross margins improved due to better discipline on pricing and discounts. Net profits almost tripled as a result.
Middle East
Sales grew by 23% YOY and 14 new outlets were added in Ten new outlets planned for 2005.
2018/12/4

14. Number of Outlets, by Region and by Brand (as at December 31, 2004)
Total
Giordano core line
Giordano Ladies
Giordano Junior (standalone)
Bluestar Exchange
Aruba 6
Australia 42
Brunei 3
Hong Kong 92 53 8 31
Indonesia 45
Japan 24
Korea
172
134 38
Mainland China
671
629 7 2 33
Malaysia 49
Middle East 89
Myanmar 18
Philippines 41
Singapore 47 37 1 9
Taiwan
236
164 57
Thailand 46
Vietnam 4
1,585
1,384 56
121
2018/12/4

15. Manufacturing Division
Accounted for 7% of consolidated turnover
Supplied 27% of retail division’s requirement
Turnover before elimination up 20%
Intra-group sales declined to 68% of turnover
Gross margins remained almost unchanged
Operating profit up 21.4%
New clients in Europe and America
2018/12/4

16. Outlook Positive medium term global economic outlook
Aim for higher sales and profits growth in 2005
Focus on brand building worldwide
YTD sales have been encouraging
Mainland China
Medium term earnings driver
Nation-wide store renovation program to include company-operated and authorized dealer stores
Guangzhou flagship to be renovated
Plans to open 80 core line and 20 Bluestar Exchange outlets in 2005
2018/12/4

17. Outlook Hong Kong Taiwan Singapore
Upbeat economic outlook tempered by increased cost pressure, especially in rental
Focus on brand building
Just completed refurbishment of TST flagship
Seven new outlets planned for 2005
Taiwan
Sales and profits driver in 2005
Focus on branding and operations
Plans to add eight outlets in 2005
Singapore
Plans to add two Giordano Ladies outlets in 2005
2018/12/4

18. Outlook Korea Outlook for 2005 unclear; still worst seems to be over
Focus on operations
Japan
Started to break even in 4Q 04
Continue to focus on operations
Ten new stores planned for 2005
Aims to be profitable in 2005
2018/12/4