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Sa Sa International Holdings Limited

Interim Results FY11/12 Six months ended 30 September 2011

November 2011

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Agenda

Financial Results

Business Review

Outlook & Strategies

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Financial Results (For the 6 months

ended 30 September 2011)

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Six months ended 30 Sep 2011

(HK$M) 1H 11/12 1H 10/11

+/- %

Change

Turnover 2,786.0 2,099.2 +32.7%

Gross profit 1,224.4 945.0 +29.6%

EBITDA 323.3 252.4 +28.1%

Profit for the period 224.3 176.3 +27.3%

EPS – basic 8.0 cents 6.3 cents* +26.4%

Return on equity 17.1% 15.7% +1.4%

GP margin 43.9% 45.0% -1.1%

Net profit margin 8.1% 8.4% -0.3%

Group Financial Highlights

* Adjusted for 1:1 bonus issue

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Bonus Points System – Hong Kong & Macau

Bonus points system launched in Hong Kong and Macau in late May 2011

Small proportion of each sale treated as deferred income under Hong Kong International Financial Reporting Interpretation Committee - Interpretation 13 (“HK (IFRIC) – Int 13”)

The adoption of HK (IFRIC) – Int 13 (“Impact of Bonus Points System”) affected both sales revenue and gross profit margin in the first half

Bonus points expire on 31 March, 2012 – all bonus points would be redeemed or would expire by that date

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Performance of the Group

(Excluded Impact of Bonus Points System)

Six months ended 30 Sep

2011

(HK$M)

1H 11/12 (as reported)

1H 10/11 +/- %

Change (as reported)

1H 11/12 (Excluded Impact

of Bonus Points

System)

+/- %

Change (Excluded Impact

of Bonus Points

System)

Turnover 2,786.0 2,099.2 +32.7% 2,817.1 +34.2%

GP margin 43.9% 45.0% -1.1% 44.4% -0.6%

Profit for the period 224.3 176.3 +27.3% 249.5 +41.5%

Net profit margin 8.1% 8.4% -0.3% 8.9% +0.5%

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Six months ended 30 Sep 2011

(HK$) 1H 11/12 1H 10/11

Interim dividend per share

– basic

– special

6.0 cents

2.0 cents

4.0 cents

4.5 cents*

1.5 cents*

3.0 cents*

Dividend payout ratio 75.1% 71.3%

Dividends

* Adjusted for 1:1 bonus issue

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Six months ended 30 Sep 2011 1H 11/12 1H 10/11 +/- Change

(HK$M)

CAPEX 111.5 62.0 +49.5

Cash generated from

operating activities 208.8 158.4 +50.4

Dividends for the period 168.5 125.7 +42.8

Cash and bank balance 454.7

(as of 30 Sept 2011) 502.7

(as of 30 Sep 2010) -48.0

Net working capital 84 days 74 days +10 days

Effective tax rate 17.8% 18.2% -0.4%

Key Financial Indicators

Group

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Business Review

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Group Turnover

— Geographical Analysis

Turnover

(HK$M)

% to Group

Turnover

HK & Macau 2,205.0 79.1% (LY:77.6%)

Mainland China 108.5 3.9% (LY:2.9%)

Singapore 117.0 4.2% (LY:4.4%)

Malaysia 117.6 4.2% (LY:4.9%)

Taiwan 107.1 3.9% (LY:3.7%)

sasa.com 130.8 4.7% (LY:6.5%)

Total 2,786.0 100%

Six months ended 30 Sep 2011

Total Turnover: HK$2,786.0M (+32.7%)

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Single-brand stores / counters "Sasa" stores

#Include 5 clearance outlets

*Include 4 clearance outlets

An Overview of Retail Outlets

As of

31 Mar 11

Net +/-

(Apr11 – Sep11)

As of

30 Sep 11

HK & Macau 78# +6 84*

Mainland China 26 +13 39

Singapore 20 -- 20

Malaysia 38 +1 39

Taiwan 19 +2 21

Total 181 +22 203

As of

31 Mar 11

Net +/-

(Apr11 – Sep11)

As of

30 Sep 11

2 -- 2

21 -- 21

-- -- --

-- -- --

1 -- 1

24 -- 24

Six months ended 30 Sep 11

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Six months ended 30 Sep 11 1H

YOY retail and wholesale sales growth 35.3%

YOY retail and wholesale sales growth

(Excluded Impact of Bonus Points System) 37.2%

YOY same store growth 24.1%

YOY same store growth

(Excluded Impact of Bonus Points System) 26.0%

Av sales/ transaction (HK$) 310

(+15.7%)

Total no. of transactions (M) 6.9

(+16.5%)

Performance in Hong Kong & Macau

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Sales Performance in Other Markets

Retail and Wholesale (in local currencies)

Six months ended 30 Sep 11

1H

Mainland China

YOY sales growth

71.2%

Singapore

YOY sales growth

12.1%

Malaysia

YOY sales growth

9.3%

Taiwan

YOY sales growth

27.5%

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Increased presence in PRC

- Net increase of 13 stores

(Q1: 6 stores; Q2: 7 stores)

- 39 “Sasa stores” and

21 Suisse Programme counters as of 30 September 2011

- Central cluster starting to take shape

(6 stores + 4 counters)

- 15 stores to open under leases signed,

covering 8 new cities and 6 existing cities

YOY sales growth +71.2%

Double-digit same-store sales growth in department store counters

Increasing support from landlords

Increasing support from major beauty groups

- L'Oréal Group: L'Oréal, Maybelline & Yue Sai

- Shiseido Group: Za

- KOSE Group: Junkisei, Nature & Co, RECIPEO and WHITE ST

Performance of Mainland China Market

Progress made:

2011 The Most

Popular Store,

An award received

from Wanda

‘Sasa’ stores FY10/11 As at 30 Sep 10

FY 11/12 As at 30 Sep 11

No. of Cities 5 14

No. of Stores 19 39

Gross Rental Footage

(sq. ft.) 52,645 113,040

No. of Store Staff ~330 ~600

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Launched new store image

Performance of Mainland China Market

Six months ended 30 Sep 11

Progress made:

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Added more well-known beauty brands

Performance of Mainland China Market

Six months ended 30 Sep 11

Progress made:

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Beijing

Tianjin

Shanghai

Mainland China Market

—“Sasa” stores network

16 Six months ended 30 Sep 11

Central China

Shenyang

Wuhan

Xiamen

Yinchuan

Shijiazhuang

Zhenjiang

Addition to network in First Half (YE Mar 12)

Net Increase: 13 stores

Eastern China

Southern China

Northern China

Qingdao

Suzhou

Ningbo

Shaoxing

Yichang

“Sasa” stores in new cities

“Sasa” stores in existing cities

New outlets added during 1 Apr to 30 Sep 2011

9 existing cities

with “Sasa” stores opened

before 1 Apr 2011

5 new cities with

“Sasa” stores opened

between 1 Apr to 30 Sep 2011

Northern China

Beijing

Tianjin

Qingdao

Eastern China

Shanghai

Suzhou

Ningbo

Shaoxing

Central China

Wuhan

Yichang

Northern China

Shenyang

Yinchuan

Shijiazhuang

Eastern China

Zhenjiang

Southern China

Xiamen

15 leases signed but stores not yet opened

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Turnover:

Steady improvements in YOY sales performance

New marketing and product strategies

Market diversification successful

Built loyalty - repeat purchases increased

Tapping the market within Mainland China

Now in top online shopping sites, incl. Taobao, 360Buy,

Paipai, Redbaby and Easybuy

Launched an award winning iPhone app (March 2011):

Certificate of Merit of iPhone app – Retail, in the WTIA

Marketing Smartphone Apps Industry Excellence Awards

organised by Hong Kong Wireless Technology Industry

Association in 2011

E-commerce - sasa.com

HK$ million 1H

Sales

YOY sales growth

130.8

-4.4%

Six months ended 30 Sep 11

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Brand Management

Successfully broadened market segments; product

concepts and price points

Launched three House Brands with different product

concepts:

Mass Japanese skin care products

Home spa products

Natural and organic skin care products

Broadened the customer base of Own Brand products:

Quantity sold: +48.4%,

the highest among all product sources

Sales growth of House Brand products:

32.9%

Sales mix of House Brand products:

41.4% (LY: 41.2%)

Six months ended 30 Sep 11 *House brands = Own-brands + Sole-agent brands

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Brand Management House brands gaining recognition and popularity in different Asian regions Products

received awards from leading women’s magazines:

Suisse Programme

Cellular Boosting

Solution

Editors Choice for

Favourite Daily

Skincare Essence Natio

Renew Radiance

Night Cream

Favourite Night Moisturizer

Gianfranco Ferre

Rose Princess EDT

The Cleo Beauty Hall of Fame 2011

Best Firming Cream Best Cream Eyeshadow

Best Eye Mask of the

above-RM100 category

Cyber Colors

Sparkling Liquid Eyeliner

Best Shimmery

Liquid Eyeliner

Malaysia

Singapore

The Balm Batter Up

Cream Eyeshadow

Collistar Intensive

Abdomen and Hip

Treatment Night

Hadatuko

Manten-Hada Eye Mask

The Malaysian

Women Weekly

Best Beauty Buys 2011

Best Compact Foundation

of the under-RM100

category

Cyber Colors

Cyber Snow

The Best Floral Scent

The CLEO

Beauty Hall of Fame 2011

CozyCot Holy Grail

Beauty & Fashion Awards

2011

Taiwan

Men’s Fragrance No. 1

GQ Men’s Care Awards

DSQUARED²

He Wood Ocean

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Outlook

& Strategies

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Constituent Member of

“Hang Seng Corporate Sustainability Benchmark Index”

We are building a sustainable business

Beauty focused

In region with lowest risks and biggest potential

Strong brand and competitive position in HK as well as outside of HK

Visionary and Strategically minded

Strong culture: Environmental, Social and Corporate Governance

Invest in: Staff development and training; consistent winners in

competitions

Invest in: Efficient and automated business process to enable scalability

Sa Sa was selected by Hang Seng Indexes Company Limited as a

constituent member of the 2011 “Hang Seng Corporate Sustainability

Benchmark Index”, effective on 5 September 2011

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Hong Kong is a paradise for shopping beauty products

Prices are lower

Product offerings broader and product launches faster

Integrity and product quality assured

Continuous driving forces

Relentless RMB appreciation and inflation in Mainland

Rapid rise of the middle class in the Mainland

Continuing integration between Mainland & Hong Kong (infrastructure & way of life)

Spending covers broadening category, including daily necessities (e.g. personal health care)

Increasing Mainland Tourist Spending in Hong Kong

Chinese Delicacies (ginseng and dried seafood)

3%

Source: a survey by 0755 Weekly (0755 周刊), Sep 2011; Sample size: 604 office ladies in Guangdong province

Personal Care Products

23% Jewelry &

Timepieces

12%

Electronics

16%

Beauty and

Cosmetics

28%

Fashion

Apparel

19%

Main Purchases in Hong Kong

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As of 30 Sep 2011

Retail Outlets in Mainland China Market

Beijing

Shanghai

Shenyang

Shaoxing

Suzhou

Tianjin

Yichang Ningbo

Qingdao

Wuhan

Existing cities with “Sasa” stores in first half of FY11/12

Zhenjiang

Xiamen

Yinchuan

Southern China

Eastern China

Northern China

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8 Provinces and 3 Municipalities

15 new leases

13 Stores Opened in

First Half of FY11/12

15 Stores to be Opened in

Second Half of FY11/12

Northern China

Beijing (+3)

Tianjin (+2)

Shenyang (+2)

Yinchuan (+1)

Shijiazhuang (+1)

Eastern China

Shanghai (+1, -1)

Zhenjiang (+1)

Central China

Wuhan (+3, -1)

Southern China

Xiamen (+1)

Northern China

Beijing (+1)

Tianjin (+1)

Shenyang (+1)

Dalian (+1)*

Taiyuan (+1)*

Daqing (+1)*

Eastern China

Shanghai (+2)

Shaoxing (+1)

Changzhou (+1)*

Taizhou (+1)*

Central China

Wuhan (+1)

Zhengzhou (+1)*

Southern China

Fuzhou (+1)*

Guangzhou (+1)*

*8 new cities: Dalian, Taiyuan, Daqing, Changzhou, Taizhou, Zhengzhou, Fuzhou, Guangzhou

Shijiazhuang

Zhengzhou*

Dalian*

Taiyuan*

Daqing*

Changzhou*

Taizhou*

Fuzhou*

Guangzhou*

Central China

New cities with “Sasa” stores in second half of FY11/12

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Strategy for Mainland China Market

Balance between breadth and depth of store network

• wide network more meaningful to partners but costly and difficult to manage

• Concentrated network more efficient to management but network less competitive

Human Resources - more resources will be deployed to support planning, coordination and

execution

• Secondment additional Hong Kong staff to Mainland to assist

• Step up recruitment and training of new staff

• Enhance division of work between store opening team and operations team

Automation of processes and systems – build and retain knowledge base and assist planning

and coordination (enable scalability)

• New store opening

• Inventory management

Own-brand product strategy for PRC market

• New products positioning targets PRC market as our main market

• Product gap analysis

Establish training centres for the China market

• Catering for >3,000 staff

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Strategy for Other Markets – Singapore,

Malaysia and Taiwan

Build brand equity to gain recognition and broaden customer base

Expand retail network to increase competiveness and gain market

share

Build working relationship with landlords to facilitate network

expansion

Work closely with brands to build long term business together

Invest in brand building of own labels

Invest in human resources and IT to enable scalability

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E-commerce

sasa.com

Launch new platform in late Nov 2011

– Multi-country platform

– More scalable and flexible

– More advanced functionalities; promotions,

search recommendations, social media etc.

Strengthen partnership with top online shopping

sites

Increase product offerings and strengthen core

competitiveness

Increase social media presence and further

integrate social media with marketing campaigns

Online business in China

Seek partners to increase penetration of sasa.com

in the mainland online market

Continue to build and localise China team

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GoodSkin Labs

(Estée Lauder Group)

Category Management & Product Development

Increase house brands and product segments to target more customers

Strengthen the partnership with major beauty groups

Restructure department to increase accountability - more improvements to

materialise

Initiate procurement system to improve inventory planning and management

Haruhada

Orchid From Paradise

Home Secrets

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No. of Retail Outlets

As of 31 Mar 11

As of

30 Sep 11

As of 17 Nov 11

By

31 Mar 12

HK & Macau 78 84 85 88

Mainland China 26 39 43 53

Singapore 20 20 21 23

Malaysia 38 39 39 44

Taiwan 19 21 23 27

Total 181 203 211 235

As of 31 Mar 11

As of

30 Sep 11

As of 17 Nov 11

By

31 Mar 12

2 2 2 2

21 21 23 18

-- -- -- --

-- -- -- --

1 1 1 1

24 24 26 21

Single-brand Stores/ Counters “Sasa” Stores

Network Expansion Plan in Asia

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Thank you!