LI & FUNG LTD

November 13, 2013

Morgan Stanley12th AnnualAsia Pacific Summit

• Global multinational headquartered in Hong Kong

• World’s leading supply chain manager operating in the consumer goods market

• More than 100 years of history since 1906

• Over 28,000 employees worldwide

• Orchestrates over 15,000 suppliers in more than 40 economies to service about 7,700 customers

• Member of Hang Seng Index, MSCI Index, FTSE4Good Index, Dow Jones Sustainability Asia Pacific Index and Hang Seng Corporate Sustainability Index Series

• Market capitalization of approximately US$11 billion

• Awards / Recognitions:

- Ranked no. 716 in Forbes’ “Global 2000” (2013)

- Fortune’s “World’s Most Admired Companies” (2013)

- The Financial Times’ “FT Global 500” (2009 - 2012)

- The Asset Magazine’s “The Asset Corporate Platinum Award” (2009-2012)

- Mr. Bruce Rockowitz was named Asia’s Best CEO for the Hong Kong region in

2nd Asian Excellence Recognition Awards (2012) and received

“Asian Corporate Director Recognition Awards” by Corporate Governance Asia (2012 - 2013)

Li & Fung Today

2

0

4,200

8,400

12,600

16,800

21,000

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 ‘10 ‘11 ‘12

20,22220,030

15,912

13,395

14,195

11,854

8,719

7,130

6,0485,465

4,7804,223

3,204

2,0891,8351,7111,604

1,181785690529

(US$mm)

1992–2012 C

AGR: 20%

Track Record

Turnover

3

2013 Interim Results Highlights

(US$mm) 1H 2012 1H 2013 Change

Turnover 9,128 9,129 –

Total Margin 1,322 1,374 4.0%

% of Turnover 14.5% 15.1%

Operating Costs (1,101) (1,151) 4.6%

Core Operating Profit 221 223 0.8%

% of Turnover 2.4% 2.4%

Profit Attributable to Shareholders 312 96 - 69.1%

% of Turnover 3.4% 1.1%

Write-back of Consideration Payable 198 –

Excludes write-backProfit Attributable to Shareholders

114 96 - 15.5%

4

(US$mm)

Turnover

Total Margin

% of Turnover

Operating Costs

Core Operating Profit

% of Turnover

TRADINGTRADING

1H 2012 1H 2013 Change

7,230 7,205 - 0.4%

622 639 +2.8%

8.6% 8.9%

(421) (436) +3.5%

201 203 +1.4%

2.8% 2.8%

LOGISTICSLOGISTICSLOGISTICS

1H 2012 1H 2013 Change

177 243 +37.2%

72 90 +25.1%

40.8% 37.2%

(63) (76) +20.7%

9 14 +56.1%

5.1% 5.8%

DISTRIBUTIONDISTRIBUTIONDISTRIBUTION

1H 2012 1H 2013 Change

2,929 2,933 +0.1%

628 645 +2.7%

21.5% 22.0%

(616) (639) +3.7%

12 6 - 53.1%

0.4% 0.2%

2013 Interim ResultsSegment Information by the Three Networks

• Remained resilient with solid order book

• Flat turnover due to skewing effect

on delayed shipment to 2nd half

• Stable pricing trend

• Europe continued to decline by

7%; offset by 15% growth in other regions (1)

• Strong organic growth mainly through new customer gains and

cross-selling

• Increasing mix in freight forwarding business, which has

lower total margin percentage

• Growth in LF Europe and LF Asia

• LF USA on track of recovery from

its restructuring

• Slight margin improvement from 21.5% to 22%

(1) Other regions include Australasia and Central & Latin America5

LF USA Restructuring

• Turnover decreased by 5% mainly due to

discontinued brands

• Maintained a stable margin percentage;

slight reduction in operating costs

• Gradually completed discontinuation of

underperforming brands

• Continued to optimize overall brand

portfolio

• Completed integration of back office

• Central merchandising planning team in

place to enable shifting of sourcing

function to Asia

• Office space consolidation to be

completed in 2013

Restructuring UpdateOperations Update

• Integration and restructuring efforts remain on track

• Continued to focus on margin improvement and portfolio rationalization

6

Trends

Turnover by Geographical Markets in 1H 2013

7%

14%

18%

61%

1H 2013

Trading

Logistics

Distribution

91%

1%

8%

10%3%

18%69%

28%

23%

49%

USA Europe Asia Rest of World

8

Guatemala 5%

Sourcing Trends in 1H 2013LF’s Top 10

Production Countries 1H 2013

LF’s Top 10 Production Countries

1H 2013(1)

1st2nd

3rd

4th5th

6th7th

8th

9th10th

ChinaBangladesh

Vietnam

IndonesiaIndia

TurkeyCambodia

Philippines

ThailandGuatemala

(1) Same ranking in 1H 2012

‣ Continues to be key

sourcing country for LF

‣ Increased sourcing

volume in 1H 2013

‣ Industry-wide focus on

worker safety, vendor

compliance and

sustainability

‣ Li & Fung as founding

member of Alliance for

Bangladesh Workers

Safety’s Advisory Board

7% Indonesia

7% Thailand

15% Philippines

20% Cambodia

1% China

2% Vietnam

4% India

13% Turkey

13% Bangladesh

China remains to be the key sourcing country with 56% share

Bangladesh updates

9

Financials & Cash Flow

Cash Flow

(US$mm) 1H 2011 1H 2012 1H 2013

Operating Cash Flow

Ending Cash 575 307 419

‣ Operating cash flow on par with

2011 level

• Driven by improved working

capital management

‣ Other major cash flow items

• US$216mm payment for

consideration payable

• US$171mm dividend payment217

-12

213

11

(US$mm) Dec 2012 Jun 2013

Bonds 1,255 1,255

Bank Loan 218 197

Total Debt 1,473 1,452

Cash 680 419

Net Debt 793 1,034

Shareholders’ Funds 4,622 4,496

Perpetual Capital Securities 504 503

Total Equity (1) 5,137 5,010

Total Capital (2) 5,930 6,043

Gearing Ratio (3) 13.4% 17.1%

Balance Sheet

‣ Solid balance sheet with low

gearing ratio of 17.1% (3)

• No increase in total debt since

December 2012

‣ Total available bank facilities of

US$1.5bn, and undrawn facilities

of US$1.3bn

(1) Includes shareholders’ funds, perpetual capital securities, and non-controlling interests

(2) Total capital is the sum of net debt and total equity

(3) Net debt divided by total capital

12

Acquisitions

Acquisitions

• Leading home furniture

and furnishing company

May

Whalen Furniture

• Transportation company

in Taiwan

• Distributor in Macau for

pharmaceutical products

and medical device

• U.K.-based beauty

point-of-sale business

• Character licensing agency

in Greater China, South Korea,

Japan and South East Asia

• Broadening the product offering

and complementing the existing

furniture business at LF Products

• Strengthening the Group’s

logistics platform in Taiwan

• Adding considerable scale to

distribution business at LF Asia

(FHBC) in Macau

• Strengthening point-of-sale

business footprint in Europe for

beauty business

• Consolidating our global character

licensing distribution platform with

immediate access to Greater

China, South Korea, Japan etc

Acquisition updates

Chuan Jui Group

Apr

Four Star Group

Feb

Group A Limited

Apr

RM Enterprises Group

JunTrading DistributionLogistics

Enhancing Product/Service Offerings

Broadening Geographical Reach

(1) Included initial consideration paid and payable of

US$25mm and US$110mm respectively

‣ 5 acquisitions

‣ Total consideration: US$432mm

• Initial Payment: US$135mm(1)

• Earn-out/Earn-up: US$297mm

14

The Outlook

Outlook for The Rest of 2013

• Uncertain market environment

• Europe showing initial positive signs

• US recovery was hurt short term by the government shutdown but

we are seeing some improvements in last few weeks

• Asia prospects remain strong, especially in SE Asian region

• Industry-wide focus on vendor compliance and worker safety

• Price trend more stable

• LF USA restructuring will be completed by the end of this year

• Continue to focus on returning to 2011 operating level in 2013

• We are in the planning stages for our new Three-Year Plan (2014 - 2016)

16

LI & FUNG LTD

November 13, 2013

Morgan Stanley12th AnnualAsia Pacific Summit