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Li&Fung

In: Business and Management

Submitted By jazlinp
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Li & Fung Limited
Press Conference August 12, 2010

Interim Results

2010 Interim Results Highlights
• Record high growth of core operating profit over a half-year period • Record high margins due to strong onshore businesses and increasing involvement in value-added services

• Delivered strong operating leverage with continued cost savings • Turnover modestly improved, reflecting the effects of early stage of the economic recovery together with contributions from previous acquisitions and outsourcing deals announced acquisition of 7 companies, and signed 4 licensing deals so far this year

• Entered into a landmark sourcing deal with Wal-Mart Stores, Inc.,

2010 Interim Results Highlights
(HK$m) Turnover (US$m*) Total Margin % of sales Core Operating Profit % of sales Profit Attributable to Shareholders % of sales 1H 2009 46,292 5,935 5,395 11.7% 1,697 3.7% 1,397 3.0% 1H 2010 51,792 6,640 6,998 13.5% 2,635 5.1% 2,171 4.2%
*USD1 = HKD7.8

Change 12% 30% 55%

55%

2010 Interim Results
Per Share Data (HK Cents)
1H 2009 1H 2010 Change

EPS

38.3¢

57.5¢

50%

Interim Dividend

26.0¢

38.0¢

46%

2010 Interim Results
Analysis--Net Profit (HK$m)
In HK$m Core Operating Profit % of sales Amortization of intangible assets from acquisitions Notional Interest Net Interest (excluding notional interest) Associates Tax Minority Interest Profit attributable to shareholders % of sales

Actuals
1H 2009 1H 2010 1,697 2,635 3.7% 5.1% (48) (49) (127) 11 (88) 1 1,397 3.0% (88) (62) (172) 7 (150) 1 2,171 4.2% Change 55%

83% 27% 35% 70% 55%

Historical Trends of Total Margin and Core Operating Margin for 1H
Total Margin
14% 11.07% 11% 10.52% 9.39% 9.42% 9.05% 9.43% 10.55% 10.81% 11.5% 11.65% 13.51% 9.98%

8%
9 19 9 0 00 2 0 20 1 0 20 2 0 20 3 0 20 4 0 20 5 0 20 6 0 20 7 0 20 8 0 20 9 1 20 0

Core Operating Profit Margin
6% 3.67%...

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