Corporate Presentation17 September 2008

Presentation OutlineBusiness Overview

FY2008 Financial Review

Outlook & Future Plans

Stock Information

Stock Codes TWCH.SI, TWIN SP

Share Price S$0.140 (Closing on 16/09/08)

Number of Issued Shares 374,062,000

Market Capitalization S$52.4 million

FY08 PE 4.5 times

Research coverageCIMB (BUY, TP $0.40)

Westcomb (BUY, TP$0.39)

Substantial ShareholdersFounder 58.3%

UOB Asset Management 10.9%

Free float 30.8%

Time Watch – A leading PRC watch retailer

Extensive retail presence and experience

Started first PRC retail store in 1988

2 house brands “Tian Wang” & “Balco” and PRC exclusive distributor of Italian brand Police

4 key business segments

Manufacturing and Retailing

OEM Manufacturing

Watch movement trading

Leasing of Shopping Mall

Strong Brand Equity – China’s No. 1 Watch Strong Brand Equity – China’s No. 1 Watch BrandBrand

Multi-brand strategy with two house brands; “Tian Wang” and “Balco” as well as

exclusive PRC distributorship of Italian brand “Police”

“Tian Wang” brand top among ALL watch brands in China in terms of sales volume

“Balco” brand of Swiss watches among top-selling foreign watch brands in China*

*Source: China National Commercial Information Centre, an agency governed by the Commercial Department of

the PRC Government.

Renowned actor Francis Ng is Balco’s

spokesperson

Market Presence in PRCMarket Presence in PRC

764 outlets in over 35 cities

Stores present in all colored regions except Qinghai & Tibet

Presentation OutlineBusiness Overview

FY2008 Financial Review

Outlook & Future Plans

Performance Highlights

Satisfactory top and bottom-line growth

Expanded point of sales by 149 stores

Initial contributions from new Police stores and HK flagship store

Shift of focus to higher margin business segments

Gross margin expansion on higher contributions from Retail segment

Income Statement - Highlights

In HK$'000 FY2008 FY2007 Variance

Revenue 944,380 855,859 10.3%

Gross Profit 288,361 181,192 59.1%Gross profit margin 30.5% 21.2%

Net Profit 70,162 83,061 -15.5%

Revaluation Gains 4,275 27,981 -84.7%Effective tax rate 14.8% 14.4%

Adjusted Net Profit 65,887 55,080 19.6%Net profit margin 7.0% 6.4%

FY: Financial year ended 30 June

Balance Sheet -- HighlightsIn HK$'000 FY2008 FY2007

Current Assets 497,880 355,209Cash & bank balances 64,760 51,821Trade & other receivables 164,665 112,704Inventories 231,174 163,887

Non-current Assets 229,219 179,118Property, plant and equipment 36,810 21,208Investment properties 166,666 136,000

Current Liabilities 348,749 219,769Bank loans & overdrafts 179,185 78,660Trade & other payables 108,784 86,944

Non-current Liabilities 52,847 92,350Bank loans 8,941 56,475Convertible loan notes 28,596 25,262Deferred taxation 14,004 10,362

Total Equity 325,503 222,208Shareholders' equity 292,504 202,561

Cash Flow Statement -- HighlightsIn HK$'000 FY2008 FY2007

Net cash from Operating Activities 846 26,417

Net cash used in Investing (28,266) (107,565)Purchase of fixed assets (19,939) (9,759)Purchase of investment properties (5,926) (90,692)

Net cash from Financing 36,874 106,661Repayment of bank loans (367,229) (337,729)New bank loans raised 420,228 372,640

Net increase in cash & equivalents 9,454 25,513

Cash & equivalents at beginning of period

51,814 22,677

Cash & equivalents at end of period 64,760 51,814

Sales by Business Segment

Focus increasingly on high margin retail and OEM segments since 2007

Retail and OEM contribute 62% of sales in FY08 versus 48% previously

Retail store in Tshimshatsui, HK contributes HK$47.9m, 16% of total retail sales despite setting up only in late Jan 2008

Gross margin for the Group surged from 21.2% in FY2007 to 30.5% in FY2008 due to the change in business mix.

HK$m % HK$m % Change

Trading watch movement 352.8 37% 447.8 52% -21%Manufacturing & retail of watches 306.0 33% 180.3 21% 70%Manufacturing & resale of OEM watches 274.7 29% 227.6 27% 21%Leasing of shopping mall 10.9 1% 0.0 0% NAOthers 0.0 0% 0.2 0% -100%Total 944.4 100% 855.9 100% 10%

Segment Results

Retail contributes 64% of Group’s core profits

Watch movement segment has strategic importance to support retail and OEM segments

Initial contributions from leasing of Zijingshan Department Store at Zhengzhou City, Henan Province.

Profits from core operations up a strong 19%

HK$m % HK$m % ChangeTrading watch movement 3.0 3% 8.0 9% -63%Manufacturing & retail of watches 66.4 64% 52.3 61% 27%Manufacturing & resale of OEM watches 28.5 28% 26.1 30% 9%Leasing of shopping mall 5.0 5% 0.0 0% NAOthers -0.2 0% -0.1 0% 100%Total 102.7 100% 86.3 100% 19%

Breakdown of Stores.

FY 04 FY 05 FY 06 FY 07 FY 08

PoliceBalco

Tian Wang

383 399382

429

533

134 161 171 186 216

0 0 0 0 150

100

200

300

400

500

600 Total of 149 additional stores opened for Tian Wang, Balco and Police

Opened 15 stores for Italian brand Police to kickstart exclusive PRC distributorship

Tian Wang & Balco’s FY08 sales performance

Tian Wang

Lowest Price: 150

Highest Price: 23,800

ASP: RMB 832

Balco

Lowest Price: 1,620

Highest Price: 29,800

ASP: RMB 3,050

Top 10 best-selling Tian Wang models in FY08 Top 10 best-selling Balco models in FY08

Outlets in PRC.

517 560 553615

764

0

200

400

600

800F

Y 0

4

FY

05

FY

06

FY

07

FY

08

Stores as at end of the period:

Improving PRC Performance

Average Sales Per StoreHK$’000

FY05FY06

FY07FY08

212.1253.2

293.2337.8

0

50

100

150

200

250

300

350 15.2%

Presentation OutlineBusiness Overview

FY2008 Financial Review

Outlook & Future Plans

Growing Size of PRC Middle Class & Watch Market

Size of China’s middle class (earning between US$6,000-US$25,000 per year) to increase from 5% of urban households in 2005 to 43% in 2015 and 66% in 2025.

Size of the affluent class (earning more than US$25,000 per year) is expected to comprise 2.3% of Chinese urban households by 2025.

Source: McKinsey Global Institute

Rapidly emerging middle class, along with rising discretionary spending power, to be the key fundamental driver of watch retail spending.

PRC watch market size valued at RMB7.1 billion in 2008, reaching RMB8.3 billion by 2010

Source: Euromonitor

Dual Expansion PlansDual Expansion Plans

149 point of sale (POS) added in FY08

Continue to expand retail network in FY09

Increase same store sales

Expansion of Retail Point of Sales

Expansion of Retail Formats

To obtain additional sole distributorships in the PRC

Retailing of internationally-renowned brands such as “POLICE” to target younger, trendier yuppies

On Track For Further Growth

32.645.4 55

78.8103.3

0

20

40

60

80

100

120

FY06 FY07 FY08 FY09(E)

FY10(E)

HK$’m

*Adjusted for HK$83m in non-cash goodwill write off in FY06, revaluation gain on property of HK$28m in FY2007 and HK$4.3m in FY2008.Analysts’ consensus estimates used for FY09 and FY10

CAGR of 33.4%

SummarySummary

Vertically integrated model from manufacturer, trader and retailer to enhance margins

Owns “Tian Wang”, the largest PRC watch brand

Ability to pump new brands into existing network to further fortify growth opportunity

Trading substantially below peers, An undervalued high-growth stock

“Balco” and “Police” brands to supplement growth

THANK YOU

www.timewatch.com.sg