LI&FUNG LTD 2012 REPORT Confidential2011Annual Results2010 2011 Change t o Shareholders%of SalesC ash Earnings*%of Sales 3.4%6804.3%3.4%8504.2%-+25%-2010* 2011 Change (US Cents)EPS Interim Dividend Final Dividend Total Dividend 7.17¢2.44¢3.33¢5.77¢2010*8.43¢2.44¢4.36¢6.79¢2011+18%No change+31%+18%Change(HK Cents)EPS Interim Dividend Final Dividend Total Dividend 56.0¢19.0¢26.0¢45.0¢65.8¢19.0¢34.0¢53.0¢+18%No change+31%+18%Core Operating ProfitG ain on Disposal of PropertiesG ain on Disposal of Businesses/SubsidiariesAmortization of Intangible Assets from Acquisitions N on-cash InterestN et Cash Interest ExpensesP rofessional Fee for AcquisitionsS hare of Profits less Losses of Associated Companies T axM inority InterestTotal Non-operating Income(Expenses)Profit Attributable to Shareholders%of SalesCash Earnings* 2010725--(28)(19)(66)(18)2(48)-(177)5483.4%68020118821451(52)(22)(87)(15)1(91)-(201)6813.4%850Change+22%--+88%+12%+33%-18%-+91%--+24%-+25%Trading Of fices: 63 Global NetworkT rading Of fice Logistics Of fice DC Distribution Of ficesLogistics Of fices: 32 DCs: 155Distribution Of fices: 567Global Network63 126 48 237 6318756306Same61869Trading OfficesLogistics Offices&DCsDistribution OfficesOver 300 offices and DCs in more than 40 economies with 29,000 employees and a sourcing network of over 15,000 suppliers9% of Sales Operating CostsCore Operating Pro fit% of Sales(US$m)Turnover *Total Margin • 2011 was a milestone year forTrading in our 105 years.Trading Network had a great year• Core sourcing businessgaining market share withimprovement in margin201013,7421,177201115,8811,410Change+16%+20%8.6%8.9% (745)432 (845)565+14%+31%3.1% 3.6% TRADING* Turnover included intra-company sales of US$2,602m for 2011 (2010: US$1,815m), grew 43% and accounted for 11% of total sales• Solid start to the Logistics Networks first year 2011446 176 Change+510%+542%37.4% 39.3% +398%(32)(5)(163)132.9% LOGISTICS• Recorded solid pro fit for 20112010 #73 27• LF USA distribution business margin negatively impacted by higher costs but we see 2011 6,3051,488 Change+61%+44%26.4%23.6% (736)298(1,184)304 +61%+2%7.6%4.8%2010 # 3,9121,034 DISTRIBUTION•pressure easing.On a proforma basis, LF Asia’s pro fit grew 16% based on 2010 proforma annualized numbers201122% 1%2%70%Operating Pro fit201028%201134%2%64%77%2010-1%60%41%Acquisitions from 2007 - 20112007 Key Acquisitions & Outsourcing DealsTwo-Pronged acquisition strategyLarge acquisitions• 1 • 1New•Peter Black International Ltd••American Marketing Enterprises’s sourcing operation NewNew •Four of Liz Claiborne’s brands•Alliance MerchandisingNewNew•Helly Hansen outsourcing deal• 1 Germany outsourcing deal20072007Early 2008 ••Silvereed GroupNewNewSmall roll-up deals2008 Acquisitions2008 •Van Zeeland •Miles Fashion 2008 •Imagine•RT Sourcing •Silvereed Group •Wilson & Wong •Giant Merchandising 2009• Shubiz2009 AcquisitionsTwo-pronged acquisition strategySmall roll-up deals2009• Mar: JMI• Mar: Shubiz• Jun: Clearskies2010• Feb: HeuselLarge acquisitions2009• Oct:Wear Me Apparel2010• Feb:Visage2009 Outsourcing Deals 2009• Feb: Liz Claiborne Inc• Apr:Wolverine Worldwide Inc• Aug:Talbots,Inc• Dec: Hudson’s BayTrading Company 2010• Jan:Wal-Mart Stores,Inc2009 Sourcing Arrangement with Wal-Martin January2010•WSG,a wholly owned subsidiary of LF,will be a sourcing agent forthe Wal-Mart Group•Expects at least US$2 billion in shipment in first full year•A global deal that covers Walmart U.S.,Walmart International andSam’s Club•The core sourcing businesses of LF will be further strengthened•Arrangement involves all product categories,hardgoods andsoftgoods•The contract will run indefinitely but at a minimum until 2016,with LF granting a call option to Wal-Mart2010 Deals2010• • Jan: Wal-Mart Stores, Inc.Nov: Li Ning• Jun: MESH20102010• • Sep: French ConnectionNov: Jennifer Lopez & Marc Anthony• Dec: Silver Star & Iron Star• • • Feb: Rachel ZoeApr: TapouTJul: Sean John2011• Jan: So fia Vergara• Feb: Keds• • • Large Acquisitions2010Feb:VisageAug:JimlarOct:Integrated Distribution Services Group Limited Approximately USD2.8billion of annualized turnoverSmall Roll-up Deals 2010 2011• • • • • • • • Feb:HeuselMay:Jackel GroupJun:HTP GroupJun:CiprianiAug:KenasOct:Just JamieNov:Oxford ApparelDec:Fenix•••••Jan:Beyond ProductionsJan:ModiumMar:Stone Sapphire/Gemstone PrintingMar:CelissaMar:Techno SourceApproximately USD900million of annualized turnoverApproximately USD2billion of Annualized TurnoverTrends2% 2010 65% 4% 3%1% 24%21%12%2% 3% 1% 1%1%58%34%1% 2% 5% 201057% 34% 5% 1%3%↑ ↑29% ↑12% ↑28% Turkey↑21% Indonesia ↑24% China ↑41% Bangladesh ↑15% India Sourcing Trends in 2011↑4% Vietnam 6% Thailand Philippines Cambodia1st 2nd3rd4th5th6th7th8th9th10th China Bangladesh Vietnam Indonesia India Turkey Cambodia Thailand Philippines Guatemala China Vietnam Indonesia Bangladesh India Turkey Cambodia Thailand Philippines Guatemala ↑20% G uatemala LF’s Top 10 Countries in Production Volume2011 2010Tax CaseThe OutlookLI&FUNG LTD END。