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1 March 2014 http: //

2 Table of Contents Page 1. Company Profile 2 2. Business Overview 4 3. Footwear Business YueYuen 6 4. Retail Business Pou Sheng 8 5. Financial Highlights 10 1

3 PCG s Profile Pou Chen Group -- The largest footwear manufacture Group in the world Founded in 1969; listed on the TWSE in 1990 Paid in Capital: US$996 mn (NT$29.44 bn) Market Cap.: US$4,401 mn (@NT$44.55 as of 2013/12/31) Turnover: 9M2013 Consolidated Sales US$5,602 mn (NT$ bn) Product Mix: Footwear 76.7%, Retail 22.7%, Others 0.6% (as of 9M2013) Footwear Business Volume: Made 230 million pairs in 9M2013; 393.3(308.9) million pairs in 15M(12M)2012 Market Share: 20% of the combined wholesales value of the global branded athletic and causal footwear market (including JVs) Customers: More than 60 leading brands such as Nike, adidas, ASICS, Reebok and Salomon Retail Business - Target Market: The Greater China - POS: 5,756 POS (3,533 self-run and 2,223 Sub-Distributor) (as of 2013/09/30) 2

4 Change of Financial Year End Date The financial year end date of both Yue Yuen and Pou Sheng changed from September 30 to December 31 in The change is to coincide the financial year end date of Yue Yuen and Pou Sheng with the financial year end date of subsidiaries which are incorporated in the PRC. The effect of consolidated financial statements FY2012 of Yue Yuen and Pou Sheng covered a period of 15 months from 2011/10/01 to 2012/12/31. Starting from 2013, the financial year of Yue Yuen and Pou Sheng will cover 12 months from 01/01 to 12/31. Covering period of consolidated financial statements: Consolidated Entity Pou Chen Yue Yuen (included Pou Sheng) FY /01/01~2012/12/31 12 months 2011/10/01~2012/12/31 15 months 1Q /01/01~2012/03/31 3 months 2011/10/01~2011/12/31 3 months 2Q /04/01~2012/06/30 3 months 2012/01/01~2012/03/31 3 months 3Q /07/01~2012/09/30 3 months 2012/04/01~2012/06/30 3 months 4Q /10/01~2012/12/31 3 months 2012/07/01~2012/12/31 6 months FY /01/01~2013/12/31 12 months 2013/01/01~2013/12/31 12 months 3

5 Business Overview Business Segment Mix Pou Chen: (Consolidated) (12M) 2012 (15M) (1) 9M2012 (2) 9M2013 (2) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) Footwear 143, % 163, % 210, % 128, % 127, % Retail 37, % 42, % 60, % 36, % 37, % Others 11, % 3, % 4, % 3, % % Total 193, % 208, % 276, % 168, % 166, % (1) Yue Yuen and Pou Sheng, consolidated entities in PCC s consolidated financial statements, had changed their financial year end date from 9/30 to 12/31 in Therefore, their 2012 annual information covering 15 months from 2011/10/01~2012/12/31. (2) Due to the aforesaid change and TWSE regulation, PCC s 9M2013 consolidated financial statements included Yue Yuen and Pou Sheng s 2013/01/01~2013/09/30 information; PCC s 9M2012 consolidated financial statements included Yue Yuen and Pou Sheng s 2011/10/01~2012/06/30 information. (3) Pou Chen originally diversified into electronics business by investing in GBM in On March 24, 2010, PCC and its three subsidiaries disposed their 40% stake in GBM, which is engaged in manufacturing and selling PCB/PCBAs. After the transaction, PCC lost the controlling power over GBM, and GBM is no longer included as a consolidated entity in PCC s consolidated financial statements. (4) On January 1, 2011, PCC adopted SFAS No.41 Disclosure of operating segment information, and had identified Footwear business, Retail business and Others as its three reportable segments. The corresponding segment information for 2010 have been restated to reflect the above changes. 4

6 Business Overview Turnover Footwear Business Turnover - Retail Business (NT$mn) (NT$mn) 143, , , , ,767 37,846 42,353 60,705 36,428 37,866 (NT$mn) Turnover Others (NT$mn) Turnover - Total 11, , , , , ,572 3,077 4,452 3, (1) Yue Yuen and Pou Sheng, consolidated entities in PCC s consolidated financial statements, had changed their financial year end date from 9/30 to 12/31 in Therefore, their 2012 annual information covering 15 months from 2011/10/01~2012/12/31. (2) Due to the aforesaid change and TWSE regulation, PCC s 9M2013 consolidated financial statements included Yue Yuen and Pou Sheng s 2013/01/01~2013/09/30 information; PCC s 9M2012 consolidated financial statements included Yue Yuen and Pou Sheng s 2011/10/01~2012/06/30 information. 5

7 Footwear Business Yue Yuen Product Mix Yue Yuen: (Audited) M2012 (3) 9M2013 (3) (12M) (15M) (1) (Ending Sep. 30) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) Athletic Shoes 3, % 3, % 4, % 2, % 2, % Casual/Outdoor Shoes % 1, % 1, % % % Sports Sandals % % % % % Retails & Brand Licensee 1, % 1, % 2, % 1, % 1, % Soles, Components, Others % % % % % Total 5, % 7, % 9, % 5, % 5, % Financial Highlights (US$mn) (12M) 2012 (15M) (1) 9M2012 (3) 9M2013 (3) Turnover 5,788 7,045 9,193 5,385 5,560 Gross Profit 1,410 1,556 2,099 1,223 1,182 Gross Margin 24.4% 22.1% 22.8% 22.7% 21.3% Net Income (2) Net Income Margin 8.3% 6.4% 6.8% 6.5% 6.0% (1) Because of the change of financial year end date, Yue Yuen s 2012 annual information covering 15 months from 2011/10/01~2012/12/31. (2) Net profit attributable to owners of the company, excluding non-controlling interests. (3) The figures were unaudited. 6

Financial Highlights Yue Yuen Yue Yuen s 12M2013 unaudited sales ended 2013/12/31 increased Y-o-Y by 4.1% to US$7.6 bn. Yue Yuen s 2M2014 unaudited sales ended 2014/02/28 increased Y-o-Y by 4.

8 Financial Highlights Yue Yuen Yue Yuen s 12M2013 unaudited sales ended 2013/12/31 increased Y-o-Y by 4.1% to US$7.6 bn. Yue Yuen s 2M2014 unaudited sales ended 2014/02/28 increased Y-o-Y by 4.6% to US$1.2 bn. Turnover Gross Margin (US$mn) (US$mn) 9,193 5,788 7,045 5,385 5,560 2,500 2,000 1,500 1, ,099 1,556 1,410 1,223 1, % 22.8% 22.1% 22.7% 21.3% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 18.0% Net Income (2) Net Margin (US$mn) % 6.4% 6.8% 6.5% 6.0% (1) Because of the change of financial year end date, Yue Yuen s 2012 annual information covering 15 months from 2011/10/01~2012/12/31. (2) Net profit attributable to owners of the company, excluding non-controlling interests. 7

9 Retail Business Pou Sheng Product Mix Pou Sheng: (Audited) M2012 (3) 9M2013 (3) (12M) (15M) (1) (Ending Sep. 30) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) Retail 1, % 1, % 1, % 1, % 1, % Brand Licensee % % % % % Manufacturing % % % % % Total 1, % 1, % 2, % 1, % 1, % Financial Highlights (US$mn) (12M) 2012 (15M) (1) 9M2012 (3) 9M2013 (3) Turnover 1,324 1,590 2,182 1,320 1,310 Gross Profit Gross Margin 30.0% 30.3% 29.5% 29.9% 28.4% Net Income (2) Net Income Margin 1.6% 3.4% -3.2% -3.7% -1.9% (1) Because of the change of financial year end date, Pou Sheng s 2012 annual information covering 15 months from 2011/10/01~2012/12/31. (2) Net profit attributable to owners of the company, excluding non-controlling interests. (3) The figures were unaudited,. 8

10 Financial Highlights Pou Sheng Pou Sheng s 12M2013 unaudited sales ended 2013/12/31 increased Y-o-Y by 1.8% to US$1.8 bn. Pou Sheng s 2M2014 unaudited sales ended 2014/02/28 increased Y-o-Y by 3.2% to US$0.3 bn. Turnover Gross Margin (US$mn) (US$mn) 2,182 1,324 1,590 1,320 1, % 30.3% % % % 31.0% 30.0% 29.0% 28.0% 27.0% 26.0% Net Income (2) Net Margin (US$mn) % 3.4% % -3.7% -1.9% (1) Because of the change of financial year end date, Pou Sheng s 2012 annual information covering 15 months from 2011/10/01~2012/12/31. (2) Net profit attributable to owners of the company, excluding non-controlling interests. 9

11 Financial Highlights PCC (Consolidated) Benefit from stable performance of core businesses, together with the change of Yue Yuen and Pou Sheng s financial year end date, PCC s net income experienced quite good growth in (NT$mn) (12M) 2012 (15M) (1) Turnover 193, , ,108 Gross Profit 47,947 48,841 65,231 Gross Margin 24.8% 23.4% 23.6% Operating Income 14,066 11,472 15,895 Operating Margin 7.3% 5.5% 5.8% Non-operating Income 6,798 6,352 9,407 Non-operating Expenses 2,728 3,727 4,732 Net Income (2) 7,896 5,807 10,156 Net Income Margin 4.1% 2.8% 3.7% EPS (NT$) (1) Yue Yuen and Pou Sheng, consolidated entities in PCC s consolidated financial statements, had changed their financial year end date from 9/30 to 12/31 in Therefore, their 2012 annual information covering 15 months from 2011/10/01~2012/12/31. (2) Net profit attributable to owners of the company, excluding non-controlling interests. 10

12 Financial Highlights PCC (Consolidated) Due to the rising input costs and the relocation and allocation of production capacity which affected operating efficiency, there was a change of PCC s operating results in 9M2013. (NT$mn) 9M2012 (1) 9M2013 (1) Turnover 168, ,572 Gross Profit 41,629 36,437 Gross Margin 24.6% 21.9% Operating Income 11,925 6,582 Operating Margin 7.0% 4.0% Non-operating Income, net 3,867 7,499 Net Income (2) 8,489 7,896 Net Income Margin 5.0% 4.7% EPS (NT$) (1) Yue Yuen and Pou Sheng, consolidated entities in PCC s consolidated financial statements, had changed their financial year end date from 9/30 to 12/31 in Due to the aforesaid change and TWSE regulation, PCC s 9M2013 consolidated financial statements included Yue Yuen and Pou Sheng s 2013/01/01~2013/09/30 information; PCC s 9M2012 consolidated financial statements included Yue Yuen and Pou Sheng s 2011/10/01~2012/06/30 information. Hence, the Y-o-Y comparison shall not be applicable. (2) Net profit attributable to owners of the company, excluding non-controlling interests. 11

13 Financial Highlights PCC (Consolidated) Turnover Gross Margin (NT$mn) (NT$mn) 193, , , , ,572 75,000 65,000 55,000 45,000 35,000 25,000 15,000 65,231 47,947 48, % 23.4% 23.6% 41,629 36, % 21.9% 30.0% 28.0% 26.0% 24.0% 22.0% 5, % Net Income (2) EPS/Net Margin (NT$mn) (NT$) 10,156 7,896 8,489 7,896 5, % 3.7% 4.7% 4.1% 2.8% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% (1) Yue Yuen and Pou Sheng, consolidated entities in PCC s consolidated financial statements, had changed their financial year end date from 9/30 to 12/31 in Due to the aforesaid change and TWSE regulation, PCC s 9M2013 consolidated financial statements included Yue Yuen and Pou Sheng s 2013/01/01~2013/09/30 information; PCC s 9M2012 consolidated financial statements included Yue Yuen and Pou Sheng s 2011/10/01~2012/06/30 information. Hence, the Y-o-Y comparison shall not be applicable. (2) Net profit attributable to owners of the company, excluding non-controlling interests. 12

14 Dividend Policy Per Share 2010 (1) 2011 (12M) (1) 2012 (15M) (1) Dividend - Pou Chen (NT$) 1.20 (Cash 1.20) 1.30 (Cash 1.30) 1.50 (Cash 1.50) - YY (HK$) Cash Dividend Yield (2) - Pou Chen 4.5% (@NT$26.95) 5.2% (@NT$24.85) 4.9% (@NT$30.50) -YY 3.2% (@HK$27.95) 3.7% (@HK$24.55) 4.9% (@HK$25.40) Cash Dividend Payout Ratio - Pou Chen 43.3% 64.7% 43.2% - YY 39.8% 42.5% 42.6% (1) The dividends for 2010, 2011 and 2012 would be distributed in next years. (2) The cash dividend yield was divided by the market closing price at the end of 2010, 2011 and

YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED!"#$%&'() *

YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED!"#$%&'() * (Incorporated in Bermuda with limited liability) (Stock Code: 551) FINAL RESULTS FOR THE YEAR ENDED 30TH SEPTEMBER, 2007 GROUP FINANCIAL HIGHLIGHTS Turnover