16 March 2017

Trinity Limited

Stock Code: 891

ANNUAL RESULTS 2016

Back to Basics. 16 March 2017

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ANNUAL RESULTS 2016

• Market

• Company

• Results

• Priorities

• Brands

• Outlook

Agenda

Back to basics.

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ANNUAL RESULTS 2016

• Subdued spending environment for premium goods in Greater China continues

• Decline in Chinese visitors to Hong Kong and Macau, as well as reduced spending in these markets − Tourism arrivals from the Chinese Mainland to Hong Kong, saw a

drop of 6.7%

• The value of sterling has encouraged good levels of traffic in No 1 Savile Row

• Current market conditions expected to continue in 2017

Market

Back to basics.

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ANNUAL RESULTS 2016

• Beckham Kent & Curwen capsule collection launched − Highly successful launch on Mr Porter

• Very visible pop-up Cerruti 1881 store opened in Paris

• Closed non-performing stores in Greater China, net closure of 30 stores, 321 stores in the network

• Restructure of supply chain network continued apace − Closed casual wear production line in Hong Kong (Restructuring

costs of HK$23.1 million) − Closed formal wear production line in Hong Kong in Q1 2017

• Streamlined management layers and reduced involvement of consultants

• Sold final 20% stake in Ferragamo businesses

Company

Back to basics.

ANNUAL RESULTS 2016

Results for 2016

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ANNUAL RESULTS 2016

• Revenue was impacted by the dampened consumer sentiment in Greater China

• Excluding the effect of exchange rate differences, revenue decreased by 3.7%

• Gross margin was adversely affected by higher promotional discounts and rising proportion of wholesale

HK$ million 2016 2015 16 vs 15 Variance

Revenue 1,777.0 1,914.1 (137.1) (7.2%)

Gross Profit Gross margin

1,213.2 68.3%

1,385.2 72.4%

(172.0)

(12.4%) (4.1 pp)

Core Operating Profit/(Loss) (406.5) (273.4) (133.1) (48.7%)

Financials

Results for 2016

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ANNUAL RESULTS 2016

HK$ million 2016 2015 Note

Core Operating Profit/(Loss) (406.5) (273.4)

Gain on Remeasurement of Contingent Purchase Consideration Payable for Acquisition - 85.0 1

Gain on disposal of an associate 16.5 -

Restructuring Costs (23.1) - 2

Net Finance Costs (19.0) (15.6) Other (Expenses)/Income (8.8) 75.0 3

Income Tax (0.6) 40.5 4

Loss Attributable to Shareholders (441.5) (88.5)

Financial Reconciliation

1. Relates to Gieves & Hawkes acquisition 2. Restructuring costs due to closure of casual wear production line 3. Decline mainly due to compensation income of HK$61.5 million for surrendering a store in

France 4. Income tax credit in 2015 did not recur in 2016

Results for 2016

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ANNUAL RESULTS 2016

Sales Analysis – Full Year HK$ million Total Sales Change in

Total Sales 2016 2015 In HK$ Local

Currency Retail

Chinese Mainland 739.9 845.8 (12.5%) (7.9%)

Hong Kong & Macau 525.0 556.1 (5.6%) (5.6%)

Taiwan 129.4 148.9 (13.1%) (12.0%)

Rest of the World 145.1 155.9 (6.9%) 3.7%

Retail Subtotal 1,539.4 1,706.7 (9.8%) (6.5%)

Wholesale and Licensing 237.6 207.4 14.6% 18.9%

Group Total 1,777.0 1,914.1 (7.2%) (3.7%)

Change in Same Store Sales

In HK$ Local Currency

(3.4%) 1.7%

(4.7%) (4.7%)

(13.5%) (12.4%)

(14.4%) (3.9%)

(6.0%) (2.7%)

• Group total sales declined 3.7% in local currency

• Same Store Sales in Chinese Mainland grew 1.7% in local currency

Results for 2016

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ANNUAL RESULTS 2016

Sales Analysis – 1st Half and 2nd Half HK$ million

1st Half 2nd Half In HK$ Local

Currency In HK$ Local

Currency Retail

Chinese Mainland (23.1%) (19.5%) 2.1% 8.2%

Hong Kong & Macau (13.0%) (13.0%) 2.9% 2.9%

Taiwan (17.8%) (14.2%) (7.9%) (9.6%)

Rest of the World (12.1%) (7.5%) (1.2%) 15.6%

Retail Subtotal (18.7%) (16.0%) 1.1% 5.5%

Wholesale and Licensing 102.9% 109.3% (20.2%) (16.7%)

Group Total (11.5%) (8.7%) (2.4%) 1.8%

• Retail revenue grew in 2nd half as did the Chinese Mainland and Hong Kong & Macau

• In local currency Group revenue grew by 1.8% and Chinese Mainland by 8.2% in the second half

Results for 2016

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ANNUAL RESULTS 2016

Gross Margin Analysis 2016 2015

% %

Retail

Chinese Mainland 70.1% 73.5%

Hong Kong & Macau 71.0% 74.7%

Taiwan 65.9% 67.6%

Greater China 70.0% 73.3%

Rest of the World 56.3% 54.9%

Wholesale and Licensing 65.2% 78.2%

Group Total 68.3% 72.4%

• Gross margin was adversely affected by higher promotional discount, rising wholesale business with relatively lower margin

• The retail gross margin in our main market, Greater China, maintained at 70%

Results for 2016

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ANNUAL RESULTS 2016

Store Network 2016

31 Dec 2015

31 Dec 2014

31 Dec

Chinese Mainland 230 261 311

Hong Kong & Macau 38 36 38

Taiwan 40 41 41

Rest of the World 13 11 9

Total 321 349 399

• Net decrease of 31 stores in Chinese Mainland in 2016

• Closed non-performing stores and opened in new improved locations

• Continued to improve the quality of the store network in Greater China

Results for 2016

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ANNUAL RESULTS 2016

Inventory 31 Dec

2016 31 Dec

2015

Inventory Turnover Days (days) 356 416

Inventory Balance (HK$ million)

505 592

• Significant improvement in inventory turnover days since the end of last year.

• Inventory level remains a core focus for the Group going forward

Results for 2016

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ANNUAL RESULTS 2016

Headcount

• Significant headcount reduction (697 personnel, 21% of 2014 headcount) over past two years

• Closure of Hong Kong formal wear production line (182 personnel) in Q1 2017

2016 31 Dec

2015 31 Dec

2014 31 Dec

Total 2,633 2,738 3,330

Results for 2016

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ANNUAL RESULTS 2016

Gearing Ratio

• Gearing ratio increased due to operating loss but remains moderate

2016 31 Dec

2016 30 Jun

2015 31 Dec

Net Debt (HK$ million) 723.7 678.5 491.0

Gearing Ratio 21.1% 18.5% 13.3%

Results for 2016

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ANNUAL RESULTS 2016

2016 Results Summary

• Remained a tough market

• Retail revenue increased in 2nd half

• Group total sales declined - 3.7% in local currency

• Same Store Sales in Chinese Mainland grew - 1.7% in local currency

• Retail gross margin in Greater China maintained at 70%

• Inventory reduced by 60 days

• Loss making stores reduced = higher quality store network

Results for 2016

ANNUAL RESULTS 2016

Priorities

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ANNUAL RESULTS 2016

Back to basics

Key priorities remain the same

• Improve organisational effectiveness

• Control costs

• Optimise the supply chain

• Drive revenue through the brands

Priorities

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ANNUAL RESULTS 2016

Creating a highly focused organisation

Trinity Asia Retail

Brands Build brand equity Provide design leadership Drive license income Wholesale – strategic locations Global marketing / ecommerce

Retail Drive revenue / GM % Optimise locations Merchandise & store presentation Local marketing / ecommerce

G&H K&C

Cerruti

Priorities

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ANNUAL RESULTS 2016

Controlling Costs

Action:

• Reduction in senior management and consultants

• Manufacturing facilities closed 2016/17

• Tighter expense control - SOP instituted

• Reduction in number of loss making stores by 50%

Priorities

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ANNUAL RESULTS 2016

Optimise Supply Chain Action:

• Major area of focus

• Restructuring supply arrangements

• Refocused to third parties to UK/Italy for formal wear

• Optimising vendor base for casual wear

• Driving cost efficiencies

Priorities

ANNUAL RESULTS 2016

Driving revenue

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ANNUAL RESULTS 2016

“No 1 British Luxury Brand” position with high-end ready to wear Bespoke tailoring equivalent to Zegna

Reputable global clubwear, sportswear brand Competes with Ralph Lauren and Hackett Designed for the younger consumer

Desirable and distinctive European lifestyle brand, with full range of ready to wear & accessories Competes with Hugo Boss and Armani

Brand positioning

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Driving revenue

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ANNUAL RESULTS 2016

Driving revenue

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Driving revenue

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Driving revenue

Kent & Curwen Macau Four Seasons

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Driving revenue

Kent & Curwen Macau Four Seasons

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Driving revenue

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Driving revenue

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Driving revenue

Cerruti Harbour City

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Driving revenue

Cerruti Taipei 101

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Driving revenue

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ANNUAL RESULTS 2016

Driving revenue

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ANNUAL RESULTS 2016

Driving revenue

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e-Commerce

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ANNUAL RESULTS 2016

• Trinity is focused on the Chinese consumer

• Quality store network across Greater China is our competitive advantage

• Heritage brands are a core asset

• Leverage David Beckham to expand Kent & Curwen globally

• Management team is working effectively

• However, recovery of the premium menswear sector will not be immediate

• Steps taken in 2016 will serve to improve the financial position of the Group in 2017 and beyond

Outlook

Outlook

ANNUAL RESULTS 2016

Thank you