Li & Fung Limited 2002 Interim ResultsAnnouncement - Analyst Briefing15 August 2002115 August, 2002Li & Fung Limited2002 Interim ResultsRESULTS HIGHLIGHTS6 months to 30 June 2002Turnover +5.4% to $14.3bNet Profits +0.6% to $340mEPS unchanged at 11.8 centsDPS +6.3% to 8.5 centsRESULTS HIGHLIGHTSl First Half results reflect poor economicclimate in the USA in the second half of 2001l Turnover up 5.4% and earnings flatl Improved order taking in first half shouldresult in much stronger performance in thesecond halfl Acquisition of Janco Overseas Limitedcompleted. Will add HK$ 1.4 billion toturnover second half of this yearRESULTS HIGHLIGHTS6 months to 30 June 2002On Continuing operations:Turnover +5.7% to $14.3bTotal Margin +6.2% to $1,357mOp Profits +2.2% to $333m-ex. amortization, prov - 0.5% to $338mNet Profits - 8.8% to $340mEPS - 9% to 11.8 centsTURNOVER (HK$M)6 months to 30 June14,328(+5.7%) 13,560050001000015000200002001 2002* On continuing operationsTURNOVER BY MARKETS (HK$M)6 months to 30 June2001 2002 ChangeNorth America 10,053 10,593 + 5.4%Europe 2,818 2,850 + 1.1%S. Hemisphere 516 444 - 14%East Asia 173 441 +155% 13,560 14,328 + 5.7%* On continuing operationsLi & Fung Limited 2002 Interim ResultsAnnouncement - Analyst Briefing15 August 20022TURNOVER BY MARKETS6 months to 30 June20011%4%74%21%USA EuropeS. Hemisphere East Asia2002 3%3%20%74%TURNOVER BY PRODUCT (HK$M)6 months to 30 June2001 2002 ChangeSoftgoods 10,494 10,444 - 0.5%Hardgoods 3,066 3,884 +26.7%13,560 14,328 + 5.7%* On continuing operationsTURNOVER BY PRODUCT6 months to 30 June200123% 77%Softgoods Hardgoods2002 73%27%TOTAL MARGIN* (HK$M)6 months to 30 June1,2771,357(+6.2%) 9.5%9.4%05001,0001,5002001 20029%10%* Gross Profit + other revenuesOPERATING PROFITS* (HK$M)6 months to 30 June339338(-0.5%)2.4%2.5%01002003004002001 20022%3%4%* On continuing operations, before amortization and provisionsNET PROFITS* (HK$M)6 months to 30 June340(-8.8%)37301002003004005002001 2002* On continuing operationsLi & Fung Limited 2002 Interim ResultsAnnouncement - Analyst Briefing15 August 20023TRADING OUTLOOKl First half results not reflective of outlook for the wholeyearl Orders pointing towards much better turnover growthin second halfl Strong performance in hardgoods and value retailingsectorl Back to school season importantJULY SALES PERFORMANCE OFSOME MAJOR CUSTOMERSComps Total sales growthKohl’s +7.5% +23.8%Abercrombie -3% +18%American Eagle -4.6% +8.2%Gymboree +8% +9.6%Limited +2% +5%TRADING OUTLOOKl First half results not reflective of outlook for the wholeyearl Orders pointing towards much better turnover growthin second halfl Strong performance in hardgoods and value retailingsectorl Back to school season importantl Janco acquisition to add US$178m to turnoverl Prudent cost control measures in placel Still looking at double digit growth for the yearLi & Fung