Ports Design Limited

(Stock code: 0589)

2013 Interim Results

This document may contain time-sensitive information which is only current as of the date of publication. In addition, this document may also contain “forward looking statements” which are subject to risks and uncertainties. No reliance may be placed on the information contained in this document or on its completeness, accuracy or fairness, nor is any responsibility accepted for any errors, misstatements, or omissions or any direct or consequential loss howsoever arising from any use of, or reliance on, this document or otherwise in connection with it. Please refer to the Company’s latest issued annual or interim report for detailed financials.

Table of Content

Business Overview

Financial Highlights

Current Development

Latest Updates

Forward Looking

1

2

Business Overview – Turnover

Group’s Turnover

59 80 100

839 905

976

93.4% 91.9% 90.7%

6.6% 8.1% 9.3%

0%

20%

40%

60%

80%

100%

0

500

1,000

1,500

1H11 1H12 1H13

RMB Mil

Retail Others

Retail as % of Turnover Others as % of Turnover

898 985

1,076

Group’s turnover rose to RMB 1,076 million, representing a 9.2% increase as compared with 1H12

Retail division accounts for 90.7% of total revenue, which includes revenue of Ports core brand and other licensed brands business

Same store sales growth at approx. 7.4% for the period

Others division comprises of OEM, eyewear business and other wholesale business, which accounts for 9.3% of total revenue

Business Overview – Revenue & Margins Highlights

3

163 223 284 364

471 608 670 732

839 905

976

64.4%

76.3% 74.1%

87.2% 81.6%

87.7%

91.6% 92.8% 93.4%

91.9% 90.7%

50%

60%

70%

80%

90%

100%

0

200

400

600

800

1,000

1H03 1H04 1H05 1H06 1H07 1H08 1H09 1H10 1H11 1H12 1H13

Retail Turnover As % of Total Turnover

Retail Others The Group Total

1H13 1H12 1H13 1H12 1H13 1H12

Turnover (RMB Mil) 976.1 905.0 99.5 79.9 1,075.6 984.9

% of total turnover 90.7% 91.9% 9.3% 8.1% 100.0% 100.0%

Gross Profit Margin 86.7% 86.3% 35.1% 31.8% 81.9% 81.9%

RMB Mil

Business Overview – Others Division Highlights

4

Note: * Others Division comprises of OEM, eyewear and other wholesale business

0

20

40

60

80

100

120

1H12 1H13

80

100

Turnover from Others Division

20%

30%

40%

1H12 1H13

31.8%

35.1%

Gross Profit Margin of Others Division

RMB Mil

Business Overview - Gross Profit Margin Trend

5

5

63.6% 65.0%

74.4%

71.6%

77.1%

81.5%

79.9%

81.6%

81.9% 81.9%

60%

70%

80%

90%

1H04 1H05 1H06 1H07 1H08 1H09 1H10 1H11 1H12 1H13

Group's Gross Profit Margin

Group’s Gross Profit Margin remains stable and at a high level as compared with industry peers in recent years

77.8% 78.1%

81.7%

81.5%

84.1%

86.2% 84.8%

86.3%

86.3%

86.7%

60%

70%

80%

90%

1H04 1H05 1H06 1H07 1H08 1H09 1H10 1H11 1H12 1H13

Retail Gross Profit Margin

6

Business Overview – Profit from Operations

0

50

100

150

200

250

1H12 1H13

217 205

156 140

Profit from Operations Profit Attributable to Shareholders

Profit from Operations (EBIT) of 1H13 was RMB205 million(1H12:RMB217 million), representing a 5.7% decrease

Operating Margin declined from 22.0% in 1H12 to 19.0% in 1H13

Profit Attributable to Shareholders of 1H13 was RMB140 million(1H12:RMB156 million), representing a 10.3% decrease

RMB Mil

7

Business Overview - Operating Expenses

Operating Expenses include Distribution, Administrative and Other Operating Expenses

471 525

41 53 81

100

0

100

200

300

400

500

600

700

800

1H12 1H13Other Operating ExpensesAdministrative ExpensesDistribution Costs

1H13 1H12 % Change

RMB Mil As % of Retail Turnover

RMB Mil

As % of Retail Turnover

Distribution Costs 524.6 53.7% 471.4 52.1% 11.3%

Administrative Expenses

53.4 5.5% 41.3 4.6% 29.1%

Other Operating Expenses

100.2 10.3% 81.1 9.0% 23.5%

RMB Mil

Administrative expenses increased due to expenses included in overseas market exploration and the increase of salaries and benefits of administrative staff

8

Business Overview - Operating Expenses – Distribution Costs

206 229

100 108

38 43 43 57 44 46

0

100

200

300

400

500

600

1H12 1H13Store & Mall Expenses Depreciation ChargesAdvertising & Promotion Salary & BenefitsRental

1H13 1H12 % Change

RMB Mil As % of Retail Turnover

RMB Mil

As % of Retail Turnover

Rental Charges 229.3 23.5% 206.0 22.8% 11.3%

Salaries & Benefits 107.6 11.0% 100.3 11.1% 7.2%

Store & Mall Expenses 45.9 4.7% 43.7 4.8% 5%

Depreciation Charges 56.5 5.8% 42.6 4.7% 32.7%

Advertising & Promotion 42.6 4.4% 38.3 4.2% 11.1%

Others 42.7 4.4% 40.5 4.5% 5.7%

RMB Mil

Rental charges increased due to upgrading of store layout and positioning towards a higher end location

Advertising & Promotion expenses remained stable as the Group continues to allocate sufficient resources in effective means of marketing for the creation and maintenance of brand awareness

Financial Highlights – Financial Performance

1H13 (RMB Mil)

1H12 (RMB Mil)

Change

Turnover 1,075.6 984.9 9.2%

Gross profit 881.4 806.6 9.3%

Operating Profit 204.7 217.0 -5.7%

Profit attributable to equity shareholders of the Company

139.7 155.7 -10.3%

Net profit margin 13.7% 16.2% -2.5 pp

Basic earnings per share (RMB cent) 25 27 -7.4%

Proposed interim dividend (RMB cent) 11 25* N/A

9

* The dividend for 1H12 included an interim dividend of RMB 15 cents and special dividend of RMB 10 cents

10

Financial Highlights – Financial Performance

1H13 (RMB Mil)

FY12 (RMB Mil)

Net cash from operating activities 201.4 186.7 (1H12)

Cash and cash equivalent 1,365.3 1,292.3

Total debt 834.3 845.4

Net assets value 1,919.2 1,852.9

Net assets per share (RMB) 3.5 3.3

Current assets ratio (times) 2.3x 2.1x

Gearing ratio 43.5% 45.6%

Return on equity 7.7% 8.6%(1H12)

11

Current Development

New Brand Development

The Group strives to provide a wide range of choices to target customers of different segments. During the first half of 2013, we continue to explore the creation of new brand and diffusion lines (e.g. Ports Pink) to satisfy the diversified demands in the fast changing global fashion arena

Network Development

As at 30 June 2013, the Group operates 371 (as at 31 Dec 2012: 392) retail stores across PRC, Hong Kong, Macau and USA. Through the continuing process in store upgrading, the Group will ensure that the store location and layout shall match the calibre of the brand which is ever-growing to its new height

Product Development

Accessories – continue to boarder the product portfolio such as leather goods, Men’s & Women’s accessories etc.

Eyewear – wholesale of eyewear business commenced in April 2012, and the Group remains optimistic to the growth on this segment

Marketing/Branding

Milan Fashion Show 2013

Sponsored popular Chinese movies including “Finding Mr. Right” (北京遇上西雅圖)

Distribution Channels

Growing importance and focus on online sales channels

The Group continues to explore appropriate locations for factory outlet stores on a global basis and have recently opened the Toronto and Chicago factory outlets

Latest Updates – Overseas Outlet Stores

12

Livermore, California

Galaxy International Shopping Center, Tianjin

Latest Updates – Ports first-class store layout in the globe

Rue Saint Honore, Paris

14

Latest Updates – Celebrities in Ports (Global)

Kathleen Biden, daughter of US Vice President Joe Biden, in Ports 1961 evening gown.

Michael Shannon in PORTS 1961 for the Premiere of “The Iceman”

Dashing Matthew Morrison,, cuts a fine figure wearing our Ports 1961 striped suit.

Christie Brinkley was recently featured on the cover of Downtown magazine. She looked dazzling in our Ports 1961 orange silk kaftan dress.

15

Latest Updates – Celebrities in Ports (Global)

Archie Panjabi in Ports 1961 white dress at an event.

Kim Kardashian wearing Ports 1961 gown at an event.

Nic Roldan, the top American polo star looks dashing in our Ports 1961 suit

Sullivan Stapleton, wears Ports 1961 gingham-check shirt

16

Latest Updates – Celebrities in Ports (Asia)

Deng Chao

Lin Zhiling Bai Baihe

Na Ying Lin Zhiling

17

Latest Update – Media Recognition

Ports were awarded on the 2013 Marie Claire 6th Style China ceremony “Fashion and Music” – other participant including 27 international luxury brands such as Chanel, Gucci, Dolce & Gabbana, Chloe and Fendi.

18

Latest Updates – Sponsored box office hit Movie - “Finding Mr. Right”

19

Latest Updates – Media coverage & Milan Fashion Week 2013

20

Latest Updates – Media coverage & Milan Fashion Week 2013

Latest Updates – Ladieswear FW13

21

Latest Updates – Menswear FW13

22

Latest Updates – Accessories

23

Latest Updates – Ports Pink

24

Forward Looking

25

Continue to establish and maintain global presence and recognition as one of the up-and-coming designer’s labels in the luxury fashion market

Continue to provide high quality services and shopping experience in line with the best in the global fashion arena

Continue to expand different means of distribution channels globally

Strive to maintain a healthy financial position and to maximize shareholder’s value in long run

For further information, please contact:

Contact Us

Ms. Clara Chan

Investor Relations Manager

+852 2506 0138

clara.chan@ports1961.com