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CLSA Investors’ Forum 2017 September 11, 2017

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Page 1: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

CLSA Investors’ Forum 2017

September 11, 2017

Page 2: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

Global Brands

•One of the world’s leading branded apparel, footwear and fashion accessories companies

•Listed on the Hong Kong Stock Exchange on 9 July 2014, after a spin-off from Li & Fung

•Constituent of Hang Seng Composite MidCap Index, FTSE4Good Index Series, MSCI Index Series, Hang Seng Corporate Sustainability Index Series, Hang Seng Stock Connect Hong Kong Index and Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index

•A global company headquartered in Hong Kongwith offices and over 6,000 employees worldwide

Page 3: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

Our Business Verticals

Approx.5%

Brand Management

Approx.33%

Footwear and Accessories

Approx.21%

Men’s and Women’s FashionKids

41%Approx.

FY2017 US$3.9 billion in revenue*

* Based on FY2017 Annual Results 3

Page 4: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

4

Gap 1.61% H&M 1.48% Nike 1.46% Adidas 0.99% Zara 0.97% Children’s Place 0.93% Gymboree 0.75% Semir Group 0.73%

Carter’s Inc 2.64%

Our Position – Global Retail Sales by Vertical

Kids Men’s and Women’s Fashion

* Global Brands: retail sales based on the assumption at 2x of Global Brands’ revenue in FY2017 ** All other companies: data based on Euromonitor International 2016

Global Brands 0.16%

Global Brands 2.14%

H&M 1.57% Zara 1.56% Fast Retailing 1.24% Nike 1.19% PVH 1.08% Gap 1.05% Adidas 0.97% VF 0.82% Levi’s 0.69%

GlobalMarket Size

US$150bn

GlobalMarket Size

US$1,041bn

Page 5: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

§ Source: “License! Global” magazine Aug 2016 issue, based on FY 2015 numbers reported

Footwear and Accessories Brand Management

Our Position – Global Retail Sales by Vertical

* Global Brands: retail sales based on the assumption at 2x of Global Brands’ revenue in FY 2017

** All other companies: data based on Euromonitor International 2016. Highlighting key companies in the affordable luxury space and excluding luxury and sports brands companies

Global Brands 0.47%

Steve Madden 0.33% Bata 0.32% Nine West 0.31% Ecco 0.23% Geox 0.23%

VF 1.66% Michael Kors 0.83% Coach 0.75% Belle 0.71%

CAA-GBG 19.15%

WME/IMG 14.12%

Beanstalk 9.57%

Equity Management 9.57%

LMCA 9.41%

Global Icons 8.44%

CPLG 4.38%

Brand Central 3.73%

Joester Loria 3.08%

Exim 2.43%

GlobalMarket Size

US$547bn

Top 20 Total Retail Sales§

US$61.6bn

5

Page 6: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

Some of Our Key Brands

6

Page 7: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

30+ Countries50+ Offices

6,000+ Employees

Florence

Tokyo

SeoulParis

Milan

Sao Paulo

Greensboro OperationSupport Hub

Singapore

New York US Headquarters

Los Angeles

Montreal

Hong Kong Global Headquarters

Shanghai China Headquarters

London European

Headquarters

Panyu Operation

Support Hub

Monheim

Our Global Reach

8

Page 8: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

Three-Year Plan

Page 9: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

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Trend of U.S. Retail Sales (1992-2016)

Source: US Census Bureau

0

100,000

200,000

300,000

400,000

500,000

19921994

19961998

20002002

20042006

20082010

20122014

2016

(US$m)

4.2% CAGR

Page 10: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

11

Changing Retail Environment

Source: Goldman Sachs research

Department Store Specialty Off-price Discount Fast Fashion EcommercePure Play

42.9%

18.0%15.4%11.9%0.2%

-5.2%

• Traditional retail model is no longer sustainable

• We have seen retail store closures and a shift from traditional retail model to omni-channel approach

• In a world of heightened transparency, quality of product and speed of response to consumer preference are both vital

Change in U.S. apparel sales by channel, 2014-2016

Page 11: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

12

Global Brands’ Unique Platform

Unique advantages to exploit retail transformation

‣ Diversified brand portfolio ‣ Flexible licensing model ‣ Multiple product categories ‣ Multi-channel distribution ‣ Truly global

Trend: brand operation separating from

IP ownership

Global Brands has become thego-to operating partner for IP owners

- Recent examples: BCBG & Bebe

Growth Pillars:

Page 12: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

* EBITDA is defined as net profit before net interest expenses, tax, depreciation and amortization. This also excludes share of results of joint ventures, material gains or losses which are of capital nature or non-operational related, acquisition related costs and non-cash gain on remeasurement of contingent consideration payable

30.7%

FY2013 FY2017

1,416

1,010

36.4%

% of Revenue

EBITDA*(US$m)

Core Operating Profit(US$m)

CAGR

5.8%increased

by over

500 basis points

Track Record of Last Three-Year Plan

13

FY2013 FY2017

3,891

3,288

Revenue(US$m)

% of Revenue

FY2013 FY2017

173

134

4.1%4.4% 9.8%

FY2013 FY2017

380

296

9.0%% of Revenue

Total Margin(US$m)

CAGR

9.0%CAGR

8.7%

Page 13: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

EBITDA*

US$5bn

Revenuereaching increase by

150 basis points

14

Total margin

Targets of New Three-Year Plan - FY2020

* EBITDA is defined as net profit before net interest expenses, tax, depreciation and amortization. This also excludes share of results of joint ventures, material gains or losses which are of capital nature or non-operational related, acquisition related costs and non-cash gain on remeasurement of contingent consideration payable

increase by

50%

Page 14: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

DisclaimerThis document has been prepared by Global Brands Group Holding Limited (the “Company”) solely for selected recipients for information purposes only. These materials are given to you solely for your own use and information and no part of this document may be copied, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization/firm) or published, or otherwise disclosed, in whole or in part, in any manner and for any purpose without the prior consent of the Company. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorized.

The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions presented or contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time, is subject to change without notice and the Company makes no undertaking to update the information in this document to reflect any developments that occur after the date of the presentation. It is not the Company’s intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company, or its financial or trading position or prospects. Neither the Company nor any of its affiliates, advisers or representatives accept any responsibility or have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.

This document may contain statements that reflect the Company’s current intent, beliefs and expectations about the future as of the respective dates indicated herein. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company’s operations and factors beyond the Company’s control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from those described in these forward-looking statements. Neither the Company nor any of its affiliates, advisers or representatives has any obligation, nor do they undertake, to update these forward-looking statements for any events or developments including the occurrence of unanticipated events that occur subsequent to such dates.

This document does not constitute, in whole or in part, an offer for subscription or for sale or invitation to purchase or subscribe for any securities for sale in the United States, Hong Kong or anywhere else. No part of this document shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, and without limiting the foregoing, these materials do not constitute, nor are they intended to constitute (i) a “prospectus’ within the meaning of the U.S. Securities Act of 1933, as amended, and the regulations enacted thereunder, or (ii) a prospectus in connection with the offering for sale or subscription of shares pursuant to the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong) or the Companies Ordinance (Chapter 622 of the Laws of Hong Kong). No securities may be sold in the United States without registration with the United States Securities and Exchange Commission except pursuant to an exemption from, or in a transaction not subject to, such registration. Save for those shares, issued or to be issued, of the Company in respect of which application for listing in Hong Kong had already made, the Company has not registered and does not intend to register any shares or conduct a public offering of securities in the United States, Hong Kong or anywhere else. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves of, and observe, any such restrictions.

Page 15: Investors’ Forum 2017 - Global Brands Group · 2017-09-22 · Global Brands •One of the world’s leading branded apparel, footwear and fashion accessories companies •Listed

CLSA Investors’ Forum 2017

September 11, 2017