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Giordano International Limited (stock code: 709) March 28th, 2008 (Friday)

2007 Annual Results. Giordano International Limited (stock code: 709) March 28th, 2008 (Friday). Growth regaining momentum. March 28, 2008 Giordano 2007 Annual Results. Solid fundamentals.

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Giordano International Limited (stock code: 709) March 28th, 2008 (Friday)

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  1. 2007 Annual Results Giordano International Limited (stock code: 709) March 28th, 2008 (Friday)

  2. Growth regaining momentum March 28, 2008 Giordano 2007 Annual Results

  3. Solid fundamentals March 28, 2008 Giordano 2007 Annual Results

  4. Balancing between current return for shareholders and investing for future growth • Capex expected to increase to between HK$250 million and HK$300 million in 2008 (2007: HK$142 million) • Plans to add 150 stores worldwide in 2008 • New flagship stores coming in Hong Kong, Guangzhou, Hangzhou and elsewhere March 28, 2008 Giordano 2007 Annual Results

  5. Retail & Distribution Division driving growth • Better performance at the Group’s directly managed retail stores, reflecting consumer acceptance of our branding efforts • Comparable store sales increased by 2.4% (2006: down 3.0%) • Average selling price increased by 14.5% in 2007 • Garment Trading & Manufacturing Division becoming relatively less important • Decreasing share of Retail & Distribution purchases (16.2% in 2007 vs 25.7% in 2006) • Decreasing profit contribution March 28, 2008 Giordano 2007 Annual Results

  6. Retail & Distribution turnover by brand For the Year Ended December 31, 2007 • BSX / Bluestar Exchange • 6% of 2007 turnover (2006: 8%) • Converted 17 storesto BSX • Comp store sales up 12.1% and gross margin up 2.5% pts after conversion to BSX • ASP up 13.2% • Giordano Concepts • 4% of 2007 turnover (2006: N/A) • Added 11 stores in 2007 • Giordano Ladies • 6% of 2007 turnover (2006: 5%) • Turnover up 17.8% • Comp store sales up 9.1% • ASP up 11.0% • Gross margin up 1.0% pt • Added 8 stores in 2007 • Giordano & Giordano Junior • 84% of 2007 turnover (2006: 87%) • Turnover up 5.7% • Comp store sales up 2.0% • ASP up 10.0% • Added 137 outlets in 2007 March 28, 2008 Giordano 2007 Annual Results

  7. Mainland China • 31% of 2007 turnover (2006: 27%) • Turnover up 23.8% in 2007 • 820 out of 1,895 stores worldwide Others, 10% (10%)1 Thailand, 3% (2%)1 Malaysia, 3% (3%)1 Indonesia, 4% (4%)1 Australia, 5% (6%)1 Singapore, 9% (10%)1 Hong Kong, 20% (22%)1 Taiwan, 15% (16%)1 Retail & Distribution turnover by market For the Year Ended December 31, 2007 1 YOY figures in brackets March 28, 2008 Giordano 2007 Annual Results

  8. MAINLAND CHINA Aggressively moving ahead • Six consecutive quarters of double-digit turnover growth since 3Q06 • Turnover growth accelerated to 23.8% (2006: up 10.4%) and comp store sales growth increased to 15.2% (2006: up 8.5%) • ASP up 18.8% and gross margin expanded by 1.4% pts • Operating profit increased by 81.7% • 91 stores added in 2007, 72% of global store growth • Turnover up 43.2% in first two months of 2008 March 28, 2008 Giordano 2007 Annual Results

  9. HONG KONG Steady growth in a challenging market • Total turnover increased by 2.2%(2006: up 0.7%) and comp store sales increased by 8.1% (2006: up 5.4%) • Overall ASP up 20.6% • Turnover of Giordano brands (Giordano, Junior, Ladies and Concepts) up 7.0% and comp store sales up 8.6% • Turnover increased by 6.7% in firsttwo months of 2008 (Giordano brandsup 11.8%) March 28, 2008 Giordano 2007 Annual Results

  10. TAIWAN Re-engineering operations for a turnaround • Turnover stable (2006: down 10.1%) • Comp store sales decline narrowed to 4.2% (2006: down 9.1%) • ASP up 11.2% • 29 under-performing stores closed • Turnover increased by 13.6% in first two months of 2008 March 28, 2008 Giordano 2007 Annual Results

  11. SINGAPORE Reorganizing to improve operations • Turnover down 3.2% in 2007 • Experienced Hong Kong management team brought in to reorganize operations • Turnover decreased by 2.6% in the first two months of 2008 March 28, 2008 Giordano 2007 Annual Results

  12. SOUTH KOREA Turning around and profitable • Better merchandising discipline helped gross margin to increase by 2.4% pts • Despite a 3.2% decrease in sales, gross profit increased by 1.3% • More stringent cost control helped increase profit contribution to HK$13 million from zero in 2006 • Turnover up 13.0% in first two monthsof 2008 March 28, 2008 Giordano 2007 Annual Results

  13. MIDDLE EAST & INDIA Continued expansion in a buoyant market • Turnover grew by 29.5% and comp store sales increased by 10.9% • Profit contribution increased by 50.0% to HK$12 million • 16 stores added in 2007 • Launched in Delhi and Mumbai in India • Turnover increased by 11.8% in first two months of 2008 March 28, 2008 Giordano 2007 Annual Results

  14. Outlook – Sustain double-digit growth in 2008 • Group turnover increased 17.1% in first two months of 2008 • Plans to add 150 stores worldwide in 2008 • Capex expected to increase from HK$142 million in 2007 to between HK$250 million and HK$300 million in 2008 • Continue to focus on rapid growth in Mainland China • Target to add 120 stores (all brands) in Mainland China in 2008 • New flagship stores coming in Guangzhou and Hangzhou • Turnover grew by 43.2% in the first two months of 2008 • Faster growth for Giordano Ladies and Giordano Concepts • Target to add 30 Giordano Ladies and Giordano Concepts stores in 2008, mostly in Mainland China • New flagship store coming in Hong Kong • Turnover increased by 29.9% in the first two months of 2008 • Closely monitor and support turnaround in Taiwan and South Korea • Taiwan sales increased by 13.6% in the first two months of 2008 • South Korea sales up by 13.0% in the first two months of 2008 March 28, 2008 Giordano 2007 Annual Results

  15. Q&A 2007 Annual Results Giordano International Limited(stock code: 709)

  16. Appendix 2007 Annual Results Giordano International Limited(stock code: 709)

  17. 5-YEAR GROUP FINANCIAL HIGHLIGHTS March 28, 2008 Giordano 2007 Annual Results

  18. GLOBAL RETAIL NETWORK March 28, 2008 Giordano 2007 Annual Results

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