C. banner International Holdings Ltd.

千百度国际控股有限公司
(HKEx Stock Code：1028)

2014 Annual Results

March 2015
Disclaimer

This document has been prepared by C.banner International Holdings Limited (the “Company”) solely for use at
this presentation and is subject to change without notice. Its accuracy is not guaranteed and it may not contain all
material information concerning the Company. The Company makes no representation regarding, and assumes
no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information
contained herein.
This presentation contains forward-looking statements that involve risks and uncertainties. All statements other
than statements of historical facts are forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of
the Company to be materially different from those expressed or implied by the forward-looking statements. You
should not rely upon forward-looking statements as predictions of future events. This presentation speaks as of
the date hereof. We undertake no obligation to update or revise any forward-looking statements, either as a
result of new information, future events or otherwise.
This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or financial
instruments or to provide any investment service or investment advice, and no part of it shall form the basis of or
be relied upon in connection with any contract, commitment or investment decision in relation thereto.

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Company Overview
C.banner: A leading multi-brand retailer of mid-to-premium women’s footwear in China

The second largest retailer of mid-to-premium women’s formal and casual footwear in China

Brand Portfolio Financial Highlights

Total Revenue
(RMB Mn)
Self-developed Y-O-Y Growth：16.1%
brands
2,820.7
2,432.2 2,430.0

Licensed
brand
2012 2013 2014

Gross Profit and Gross Profit Margin

(RMB Mn, %)
Distribution Network
Y-O-Y Growth：18.6%
1,765 proprietary outlets and 532 third-party outlets in China 1,788.0
1,539.5 1,507.7

63.3% 63.4%
62.0%

2012 2013 2014

GP GP Margin
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1. Financial Highlights
2. Business Review
2. Business
3. Future Review
Strategies
4. Appendix

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1. Financial Highlights
2. Business Review

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Financial Highlights

Retail & Wholesale Revenue OEM Revenue Net Profit and Net Profit Margin
(RMB Mn) (RMB Mn) (RMB Mn， %)

Y-O-Y Growth: 13.9% Y-O-Y Growth：42.8% 313.5 Y-O-Y Growth：4.7%

2,256.7 264.1 242.2

2,245.1 231.3
2,224.7 207.4 12.9%
184.9
9.5% 8.6%

2012 2013 2014 2012 2013 2014 2012 2013 2014

NP NP Margin

2012 2013 1Q2014 2Q2014 3Q2014 4Q2014 2014

SSSG
6.3% -6.9% -8.6% -2.1% +5.0% +7.7% +0.8%

Both retail and wholesale revenue and OEM revenue registered growth in 2014.
Same Store Sales restored positive growth in the second half of 2014.

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Revenue Breakdown by Business and
Retail Revenue

Revenue Mix Retail Revenue Breakdown

2013 2014 2013 2014

ASH, JC&UN ASH, JC&UN

5.5% MIO 15.6%
OEM OEM
9.4% sundance 1.7%
7.6% MIO
sundance
7.3% 1.7%
6.6%
naturalizer
4.6% naturalizer
4.8%

EBLAN EBLAN
22.2% 18.9%
C.banner
C.banner 52.3%
Retail & Wholesale
Retail & Wholesale 58.7%
90.6%
92.4%

The retail revenue from new agent brands accounted for 15.6% of the total retail revenue of the Group
and is becoming the new driving force for revenue growth.

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Costs and EBIT

Breakdown of Costs EBIT and Margin (RMB mn, %)

RMB Mn 2012 2013 2014

Cost of Sales 892.7 922.3 1,032.7 444.6

As % of Sales 36.7% 38.0% 36.6% 18.3% 363.2 363.2

Distribution and
Selling Expenses 1,040.5 1,143.3 1,434.3 14.9%
12.9%
As % of Sales 42.8% 47.1% 50.8%

Administrative and General

Expenses 111.0 89.5 84.4

As % of Sales 4.6% 3.7% 3.0%

Other Income and Gains 56.6 88.3 93.9

2012 2013 2014
As % of Sales 2.3% 3.6% 3.3% EBIT EBIT Margin

Other income and gains of 2014 was mainly constituted by

government tax returns and interest income

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Working Capital Analysis

Inventory Days Trade Receivable Days Trade Payable Days

Inventory days decreased from 266

days in 1H2014 to 254 days in
FY2014 55 60
51
54
245 254 44
241 48

2012 2013 2014 2012 2013 2014 2012 2013 2014

The Company displays effective working capital management with stable working capital

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2. Business Review

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Business Review

1. Strong Fundamentals - High Growth in Women’s Footwear Market

2. Leader in Most Attractive Segment

3. Multi-brand Portfolio for Diversified Market Segmentation

4. Expanding Nationwide Distribution Network

5. Steady Growth in Outlets

6. Vertically Integrated Model and Responsive Supply Chain

7. Effective Marketing Strategies

8. Customer-oriented Research and Development

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1. Multi-brand Portfolio for
Diversified Market Segmentation
Multiple Brands Targeting A Broad Customer Base
in the Mid-to-Premium Formal and Casual Segment
Spring&Summer
Customer Base
Launched Price Range Positioning Highlight
(Age)
(RMB)

2012 4th largest brand in the mid-

Fashion/Business
1996 20-40 750-1,000 to-premium formal and
/Business Casual casual segment (1)

Fashion/Business 2012
40% CAGR of retail revenue
2004 20-35 700 - 950 /Business Casual from 2008 to 2012

Casual/ 2012
A leading women’s footwear
2H 2007 25-44 900-1,400 Comfortable brand in the US

38% y-o-y retail

August 2011 18-35 650 - 900 Young/Casual
revenue growth in 2013

Premium Fashion/
131 retail stores
January 2012 22-28 800-1,200 Business/Business as of December 31, 2014
Casual

(1): according to Euromonitor, based on 2012 retail revenue.

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1. Multi-brand Portfolio for Diversified
Market Segmentation (Cont’d)

Multiple Brands Targeting A Broad Customer Base

in the Mid-to-Premium Formal and Casual Segment
Spring&Summer
Customer Base
Launched Price Range Positioning
(Age)
(RMB)

Fashion/Trendsetter/
2013 18-35 1,500-2,800
Casual

Concise/Sexy/
2013 22-32 800 - 2,500 Delicate/Taste

Innovation/Unique
2013 22-32 1,000-3,000 /Irreplaceable

Concise/LOHSA/
2013 18-30 1,300-2,000 Leisure

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2. Expanding Nationwide Distribution
Network
Proprietary Outlets Third-party Outlets
1,765 proprietary outlets and
Primarily located in first- Primarily located in
532 third-party outlets across China to-third-tier cities other cities
─ To target at the – To expand in a cost-
customers with effective manner
stronger spending Established by
power authorized distributors
Focus on department – 250 authorized
stores distributors
─ Most are department
store outlets

865 346
372 93

0-20 Outlets
146 5
20-40 Outlets
40-60 Outlets 44 87
60-200 Outlets
200+ Outlets 338 Agent Brands 1

Note: all data as of December 31, 2014 1,765 Total 532

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3. Optimizing Outlets Portflio
2008 2009 2010 2011 2012 2013 2014
Proprietary 494 544 623 735 828 848 865

Third-Party 160 194 230 311 366 363 346

Total 654 738 853 1,046 1,194 1,211 1,211

Proprietary 188 210 307 412 444 412 372

Third-Party 46 65 87 122 123 110 93

Total 234 275 394 534 567 522 465

Proprietary 97 184 171 146

Third-Party 4 8 5 5

Total 101 192 176 151

Proprietary 23 45 44

Third-Party 113 96 87

Total 136 141 131

Proprietary 40 32 42 67 77 236 338

Agent Brands Third-Party 1

Total 40 32 42 67 77 236 339

Proprietary 722 786 972 1,311 1,556 1,712 1,765

Total Third-Party 206 259 317 437 610 574 532

Total 928 1,045 1,289 1,748 2,166 2,286 2,297

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4. Vertically Integrated Model and
Responsive Supply Chain
We Operate on a Vertically Integrated Model and Control All Key Supply Chain Functions

Customer Service Design

Direct customer access Developed to capture the latest
By 31 December 2014, our VIP fashion trends and customer
customer base has grown to over preferences
700,000 VIPs Separate design teams for each
Very high customer interaction brand to promote product
uniqueness

Marketing Manufacturing
Extensive distribution network 3 production facilities located in
Strategic locations Nanjing, Dongguan and Suining
Strong marketing campaigns ─ Total annual production
Full control over brand positioning capacity of 7.2million pairs
and pricing Efficient and cost-effective
manufacturing

Quick response to changing market

Enhanced operational
Significant operational flexibility trends and customer tastes with
efficiency and competitiveness
suitable products

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5. Effective Marketing Strategies

Diversified marketing campaigns focusing on the mid-to-premium women’s footwear in

China. Emphasis on the interaction with customers and enhance brand recognition.

Brand Events Thematic Photos

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5. Effective Marketing Strategies
(Cont’d)
Enhancement of brand awareness and reputation through exhibition in department stores
and advertisement promotions in renowned magazines

Promotion Activities Magazines and TV Commercials

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6. Customer-oriented Research and
Development
Strategically Located R&D Center with Strong
Design Capacity
Located at Foshan, next to Guangzhou, the hub of
China’s footwear industry
Total GFA of approx. 15,000 m2
Designs 2,000-2,400 SKUs per year for
each of our self-developed brands
Design managers for our self-developed brands,
on average, have over 10 years footwear design experience
Systematic Research, Design and
Development Capabilities
Regularly attend trade exhibitions and
conduct field studies in Hong Kong and
Europe; and collect market information from
Market
Research
professional websites and publications
Customer focused designs targeting at a
broad customer base with differentiated
products
Decide on seasonal themes including styles,
colors, materials and other features; Create
sample shoes to be tried on by models to test
Product for proper fitting and wearing comfort
Design
Our creative and R&D director collaborate
together to launch a series of shoe designs
closely tracking international fashion trends
Determine the manufacturing process and
cost
Further discussions to rectify any problems
Product
Development
discovered in the manufacturing process
Determine quantities of subsequent batches
based on consumer response and weekly
sales records
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3. Future Strategies

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Future Strategies
Increase Channel Quality
Strengthen Product Management 3rd Party E-commerce
Platform
Strengthen Staff Management
Official website
Improve Sales and Marketing
Capability We Media
VIP Program – Improve Shopping
Experience

Optimize Inventory Level

New Outlets Opening in 2015
Upgrade Business Intelligence
System - Proprietary Outlets: 100
Develop Strategic Relationship
with Suppliers

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4. Appendix

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Company History
2007 2012 2013
2nd Largest
Introduction of Introduction of Acquired trademarks of
“naturalizer” another self-
Retailer in Mid-
“BADGLEY MISCHKA” and
products into China developed brand “MARK & JAMES” to-Premium
by establishment of “MIO” Women’s
Distribute “ASH”, “JC”,
JV with Brown “FRENCH CONNECTION”
Shoe, Inc. Formal and
and “UNITED NUDE”
1995 Branded Products Casual Footwear
Establishment of in China
Mayflower 2011
Footwear and
production site
2004 Introduction of
the new self-
Introduction of Introduction of developed brand
1st self- 2nd self- “sundance”
developed brand developed
“C.banner” Listing on HKEx
brand
“EBLAN”

2010
Establishment of
Xuzhou Suining
production site
2001 2005 2009 Delisting from
Singapore Stock
Establishment of C.banner was awarded Over 1,000 Exchange
production site in “China Famous retail outlets
Dongguan 2002 Brands” title nationwide (1)
Began contract Establishment of
manufacturing Research and
business Development Center in
2003
Foshan, Guangdong Listing on Singapore
Stock Exchange
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(1): including both proprietary and third-party outlets.
Experienced and Dedicated
Management Team
Industry
Name Title Experiences
Experience

Executive Directors Over 65 years of

combined industry
CHEN Yixi Chairman and > 15 yrs  Outstanding Entrepreneur of Non-State-owned experience
Co-founder Companies
 Vice Chairman of Nanjing Federation of Industry
and Commerce
 Vice President of Nanjing Enterprise Directors One of the leaders in the
Association women’s footwear
 B.A. in News Propagation, Nanjing Normal industry
University
 MBA from Cheung Kong Graduate School of
Business Inspirational
leadership with clear
ZHAO Wei President > 15 yrs  B.S. from Jilin Agricultural University vision
 MBA from Singapore Nanyang Technological and strategy
University

HUO Li VP > 10 yrs  Over 14 years of extensive experience in banking

 B.A. in Economics, Fudan University Extensive industry and
operating experience
XU Tingyu CFO > 10 yrs  Over 13 years of extensive experience in banking and knowledge
 Non-practicing member of the PRC Certified
Public Accountants Association
 M.S. in Accountancy, Nanjing University
Proven capability
in operation and
business development

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