Chow Tai Fook Jewellery Group Limited Stock code: 1929.HK

August 2017

Agenda

About Chow Tai Fook

Financial Highlights

Business Outlook and Strategies

Appendix

About Chow Tai Fook

2016

2015

2014

2011

2010

2003 1990 1929

1956 1998

Started engaging in the jewellery business

Launched the 999.9 gold jewellery products in Hong Kong & Macau, which became an industry standard in 1980s

Implemented the “Fixed Price” policy in Hong Kong & Macau which enhanced the pricing transparency

Opened the first POS in Beijing, Mainland China

Centralised Mainland China operations and established the headquarters in Shenzhen

Listed on the Main Board of The Stock Exchange of Hong Kong (stock code: 1929)

Opened our 2,000th POS in Wuhan, Mainland China

Acquired Hearts On Fire, a US premium diamond brand

Unveiled the Cullinan Masterpiece “A Heritage in Bloom”

Started e-commerce business

The Story of Chow Tai Fook

Became a reference price member of Shanghai Gold Benchmark Price

Unveiled the “Chow Tai Fook T MARK” diamond brand

4

Cheng Yu Tung Family (Holdings) Limited

Cheng Yu Tung Family (Holdings ll) Limited

49.0% 46.7%

Chow Tai Fook Capital Limited

81.0%

Chow Tai Fook (Holding) Limited Public Float

89.3% 10.7%

Chow Tai Fook Jewellery Group Limited (Stock code: 1929.HK)

Shareholding Structure

As at 31 March 2017

5

Board Structure

Cheng Kar-Shun, Henry Chairman

Strategic direction and overall performance of the Group

Wong Siu-Kee, Kent Managing Director

Overall management of the Group

Cheng Chi-Kong, Adrian Executive Director

Brand identity re-creation and marketing activities

Cheng Chi-Heng, Conroy Executive Director

Procurement of diamonds & gemstones and production management

Chan Sai-Cheong Executive Director

Mainland China operations

Suen Chi-Keung, Peter Executive Director

Hong Kong, Macau and overseas operations

Chan Hiu-Sang, Albert Executive Director

Diamond procurement and operations of Diamond Department

Cheng Ping-Hei, Hamilton Finance Director

Financial management and company secretarial functions

Liu Chun-Wai, Bobby Executive Director

Business innovation and Mainland China operation management

6

Cheng Kam-Biu, Wilson Non-Executive Director

Cheng Ming-Fun, Paul Independent Non-Executive Director

Fung Kwok-King, Victor Independent Non-Executive Director

Kwong Che-Keung, Gordon Independent Non-Executive Director

Lam Kin-Fung, Jeffrey Independent Non-Executive Director

Or Ching-Fai, Raymond Independent Non-Executive Director

Audit Committee Remuneration Committee Nomination Committee Executive Committee

Board of Directors

Vertically integrated business model

Diversified product portfolio

Iconic & trusted brand

Dynamic management team with diversity

Our Unrivalled Competitive Strengths

Multi-dimensional sales channels

7

Produced

60%+ of gem-set jewellery sold

Procurement of raw materials

All rough diamonds sourced are in compliance with Kimberley Process and De Beers Best Practice Principles

Rough diamond cutting and polishing

In-house diamond cutting and polishing capabilities

Retail and wholesale

Multi-brand strategy – Including Chow Tai Fook, Hearts On Fire, SOINLOVE, Monologue and CTF Watch 2,300+ POS in Mainland China, Hong Kong, Macau and other markets 40+ e-commerce platforms

Sold

15 million+ pieces of products in FY2017

Processed

200,000+ carats of diamonds in FY2017

As at 31 March 2017

Upstream Midstream Downstream

Design

580+ employees in Chow Tai Fook Jewellery Creative Centre Jewellery manufacturing

4 production sites in Shunde, Shenzhen, Wuhan and Hong Kong Logistics and distribution

Automated facilities in Logistics and Distribution Centre in Shunde enable more frequent inventory replenishment and enhance inventory turnover

Vertically Integrated Business Model

8

Multi-brand Strategy

• Multiple brands with differentiated marketing strategies

• Enhanced product offerings catered to different customer clusters

9

Diversified Product Portfolio

10

Diversified Product Portfolio

“Le Labyrinthe Artistique” Collection

HEARTS ON FIRE “White Kites” & “LORELEI” Collection

“Bridal” Collection

Disney “Tsum Tsum” Collection

MONOLOGUE “The Pretty Reckless” & “Be-You-Tiful” Collections

Gemmmagioia “Gemmma Bag” Collection

SOINLOVE “Love Me” & “Princess S” Collections

“Charming Gold” Collection

High-end Luxury

Mass Luxury

Youth Line

HEARTS ON FIRE “White Kites” Collection

“CTF Little Gift” Collection

61.9% 38.1% 69.6% 30.4%

61.5% 14.1% 24.4%

Location FY2015 FY2016

During FY2017

FY2017 Addition Reduction Net

Mainland China 2,124 2,179 235 (168) 67 2,246

Hong Kong 93 89 1 (7) (6) 83

Macau 19 20 1 (2) (1) 19

Taiwan 16 23 - (1) (1) 22

Korea 1 4 1 - 1 5

Malaysia 1 1 1 - 1 2

Singapore 1 1 - - - 1

United States 2 2 1 - 1 3

Total 2,257 2,319 240 (178) 62 2,381

POS by geography Hong Kong Macau Other markets

12.3% 54.4% 33.3%

Extensive Retail Network

POS by tier of cities Tier I Tier II Tier III and others

Mainland China – Jewellery business Hong Kong, Macau and other markets

POS by area in Hong Kong/Macau Touristic area Other area

POS by operation model Self-operated POS Franchised POS

11

41.4% YoY

Contribution to respective

RSV 3.3% Retail Sales Volume 9.3%

E-commerce

40+ e-commerce platforms

including Chow Tai Fook e-shop

364,000

unique daily visitors

Youth line and fashion jewellery products Exclusive online products

E-commerce Platforms Product Offerings

Data of FY2017

12

Mainland China – Jewellery E-commerce RSV

Financial Highlights

For the year ended 31 March (HK$ m) 2015 2016 2017

YoY Change

Revenue 64,277 56,592 51,246 -9.4%

Contribution of gem-set jewellery1 26.9% 26.8% 25.3% -1.5% pts

Gross profit 19,072 15,641 14,963 -4.3%

Gross profit margin 29.7% 27.6% 29.2% +1.6% pts

Adjusted gross profit margin2 29.2% 28.9% 28.5% -0.4% pts

Selling and distribution costs and general and administrative expenses (“SG&A”)

12,344 11,623 10,307 -11.3%

SG&A to revenue ratio 19.2% 20.5% 20.1% -0.4% pts

Core operating profit 6,691 5,050 4,649 -7.9%

Core operating profit margin 10.4% 8.9% 9.1% +0.2% pts

Profit attributable to shareholders 5,456 2,941 3,055 +3.9%

Basic earnings per share HK54.6 cents HK29.4 cents HK30.6 cents +3.9%

Dividend per share HK28.0 cents HK80.0 cents HK51.0 cents3 -36.3%

1 Revenue from jewellery trading and service income from franchisees excluded

2 Adjusted gross profit margin = Gross profit margin excluding the impact of the unrealised hedging gain / loss on gold loans 3 Being a total of full year dividend of HK16 cents per share and special dividend of HK35 cents per share. The proposed final and special dividends of HK30.0 cents per share are subject to the approval of shareholders at the forthcoming annual general meeting

Summary – Income Statement

14

(HK$ m) 1H2016 2H2016 1H2017 2H2017

1H2017/ 1H2016 Change

2H2017/ 2H2016 Change

Mainland China 16,660 17,011 12,851 18,169 -22.9% 6.8%

Hong Kong, Macau and other markets 11,464 11,457 8,675 11,551 -24.3% 0.8%

Overall 28,124 28,468 21,526 29,720 -23.5% 4.4%

FY2013 FY2014 FY2015 FY2016 FY2017

59.5%

58.9%

64,277

41.1% 40.5%

56,592

60.5%

39.5%

Hong Kong, Macau and other markets

Mainland China

51,246

77,407

54.5%

45.5%

57,434

52.8%

47.2%

-7.9%

YoY Change

-9.4%

-11.8%

Revenue Breakdown – Reportable Segments (HK$ m)

15

% of revenue 1H2016 2H2016 1H2017 2H2017

Gem-set jewellery 26.6% 27.1% 27.2% 24.0%

Gold products 55.7% 55.9% 53.6% 60.1%

Platinum / Karat gold products 12.7% 12.1% 12.9% 10.6%

Watches 5.0% 4.9% 6.3% 5.4%

FY2013 FY2014 FY2015 FY2016 FY2017

1 Revenue from jewellery trading and service income from franchisees excluded

Revenue Breakdown – Products (HK$ m)

56,126

50,821

64,181

26.9%

55.8%

25.3%

53.3%

14.4% 12.4% 11.5% 5.0% 5.7%

57.4%

26.8%

77,258

56,391

21.5%

58.4%

14.8%

5.3%

20.9%

61.3%

13.4%

4.3% 5.3%

-14.6%

-6.8%

-16.0%

YoY Change

-9.5%

4.6%

Platinum / Karat gold products

Gem-set jewellery Gold products

Watches

16

FY2016 FY2017

SSSG SSSG SSS volume growth

Mainland China -9.6% -5.2% -15.8%

Hong Kong and Macau -21.7% -12.4% -18.8%

Mainland China Hong Kong and Macau

1Q2016 2Q2016 4Q2016 3Q2016 1Q2017 2Q2017 3Q2017 4Q2017

Same Store Sales Growth (“SSSG”) – Major Markets

17

Same store average selling price1 (HK$) FY2016 FY2017

Gem-set jewellery 12,100 12,000

Gold products 5,700 6,700

-16.0%

-23.8%

-16.3% -21.7%

-27.3%

-23.0%

-17.3%

-17.4%

-24.8%

4.0%

-23.8% -24.9%

-11.9%

-36.0%

7.8%

19.2%

Gem-set jewellery Gold products

Same store average selling price1 (HK$) FY2016 FY2017

Gem-set jewellery 5,900 6,200

Gold products 3,000 3,500

-3.7% -3.5% -7.0%

-23.5% -12.3% -17.2%

-4.2%

5.1%

-1.8%

21.6%

-2.8%

-28.7% -21.5% -26.7%

7.0%

17.2%

Gem-set jewellery Gold products

SSSG – Mainland China SSSG – Hong Kong and Macau

1 Average selling price was rounded to the nearest hundred HK dollar, and was calculated based on FY2017 Same Store count and included value-added tax (VAT) in

Mainland China

SSSG – Major Products

18

Core operating profit YoY

1H2017 2H2017 FY2017

Hong Kong, Macau and other markets

-81.1% 8.1% -36.3%

Mainland China -2.1% 13.7% 6.3%

1,386 840

159

1,527

846

915 1,771 1,582 1,549

2,006 1,782 2,026

Core operating profit by reportable segment (HK$ m) Profitability – Mainland China

29.1% 29.2% 29.7%

19.8% 20.0% 18.9%

10.0% 10.0% 11.5%

FY2015 FY2016 FY2017

29.2% 28.5% 26.7%

18.3% 21.4% 22.0%

11.0% 7.4%

5.3%

FY2015 FY2016 FY2017

Adjusted gross profit margin SG&A ratio Core operating profit margin

Core operating profit margin Adjusted gross profit margin SG&A ratio

Profitability – Hong Kong, Macau and other markets

Core Operating Profit and Profitability Analysis

FY2015 FY2016 FY2017

2,913

3,777

1,686

3,364

1,074

3,575

Hong Kong, Macau and other markets (1H)/(2H)

Mainland China (1H)/(2H)

19

2,339 2,254 1,958

743 799 776

1,108 662 477

1,840 2,078

1,830

2,257 1,949

1,716

4,057 3,881

3,550

FY2015 FY2016 FY2017

Staff costs

Concessionaire fees

Rental expenses

Advertising and promotion expenses

Depreciation and amortisation

Other SG&A

-8.5%

-11.9%

-11.9%

-28.0%

-2.9%

-13.1%

19.2% 20.5% 20.1%

12,344

11,623

10,307

1.7%

1.6%

2.8%

1.8%

2.7%

%

%

6.3%

1.7%

3.6%

3.5%

2.9%

1.2%

6.8%

1.2%

4.0%

3.4%

3.7%

1.4%

%

6.9%

0.9%

3.8%

3.3%

3.6%

1.5%

YoY Change

As a % of revenue

-11.3%

SG&A Analysis (HK$ m)

20

Mainland China Hong Kong and Macau

FY2015 FY2016 FY2017

30.4%

69.6%

26.1%

73.9%

30.8%

69.2%

2,119

6.4% 7.2% 6.8%

As a % of respective revenue

2,411 2,403

Fixed proportion Variable proportion

FY2017 Average no.

of employees

25,270 -10.4% YoY

SG&A – Staff Costs (HK$ m)

6.1% 6.0% 6.4%

FY2015 FY2016 FY2017

44.0%

56.0%

34.4%

65.6%

36.7%

63.3%

1,551

1,271 1,206

As a % of respective revenue

Fixed proportion Variable proportion

FY2017 Average no.

of employees

3,570 -13.6% YoY

21

1,575

1,779

1,524

FY2015 FY2016 FY2017

Rental expenses

Hong Kong and Macau

6.1% 8.2% 8.0%

As a % of respective revenue

SG&A – Concessionaire Fees and Rental Expenses (HK$ m)

Mainland China

9.4% 9.0% 8.7%

2,231

1,927

1,700

FY2015 FY2016 FY2017

Concessionaire fees

As a % of respective revenue

22

64 47 59

256

232 235

FY2015 FY2016 FY2017

Finished goods

Raw materials

3,447 2,690 2,224

3,667 2,607 2,293

11,764

8,190 8,459

20,767

17,757 16,200

FY2015 FY2016 FY2017

Gem-set jewellery

Gold products

Platinum / Karat gold products

Watches

Inventory balances by product1 (HK$ m) Inventory turnover period by category2 (day)

¹ Packing materials excluded 2 Inventory turnover days = Closing inventory balances (excluding packing materials) / cost of goods sold x 365/366

31,244 % 279

39,645 %

52.4%

8.7%

9.3%

320

29.7%

%

55.5%

7.6% 7.9%

29.0%

294

56.9%

8.6% 8.3%

26.2%

29,176

Inventory Analysis

23

380 215 71

194

97 147

532

333 370

1,662

401 274

FY2015 FY2016 FY2017

Projects

POS

Productions

Offices

102 62 79 52 60

549

1,162

287 311

876

645 490

FY2015 FY2016 FY2017

Furniture, fixtures and equipment & leasehold improvements

Land and buildings & construction in progress

Investment properties

Land use right & patents

Plant and machinery & motor vehicles

Capex by nature Capex by function

862

1,046

2,768

1,046

2,768

862

Capital Expenditure (HK$ m)

24

(HK$ m) FY2016

As at 31 Mar 16 % to total

equity FY2017

As at 31 Mar 17 % to total

equity Increase/ (decrease)

Non-current assets 6,670 18.7% 7,133 21.9% 463

Inventories 31,377 87.8% 29,259 90.0% (2,118)

Bank deposits and cash equivalents1 13,001 36.4% 7,943 24.4% (5,058)

Total borrowings 14,433 40.4% 10,009 30.8% (4,424)

Bank borrowings 7,920 22.2% 6,793 20.9% (1,127)

Gold loans 6,513 18.2% 3,216 9.9% (3,297)

Net debt2 1,432 4.0% 2,066 6.4% 634

Net current assets 30,241 84.6% 26,480 81.5% (3,761)

Total equity 35,750 100.0% 32,502 100% (3,248)

Changes in Capital Structure

25

Bank balances and cash included

Aggregate of bank borrowings, gold loans, net of bank deposits and cash equivalents

Changes in bank balances and cash (HK$ m)

Summary – Movements in Cash Flows

26

FY2016(31 Mar 16)

FY2017(31 Mar 17)

Bank balances and cash

Bank balances and cash

Pro forma free cash flows1

1,989

1 Net cash from operating activities less purchase of jewellery collectibles, capital expenditure and net movements for gold loans

Net decrease in bank borrowings

Dividends paid

Other movements

Capital expenditure

Decrease in inventories

Operating cash flows before movements in working capital

Net cash used in other operating activities Net decrease in gold loans

Purchase of jewellery collectibles

Gold Hedging Policy Revision

Short-term, volatile in nature and thinner margins

Base inventory

Consigned inventory & others

Seasonal inventory

Gold inventory 70% hedged

Old New

Fixed hedging ratio

100% hedged

Long-term cost of capital

27

Gold Hedging Policy Revision

Key rationales

A more targeted hedging approach is needed to enhance effectiveness

Higher reliance on Mainland China operations where seasonality plays

a more prominent role

Higher proportion of consigned inventory due to unified inventory

ownership

A relatively low gold price level seen in recent years

Key changes

Shift from a constant hedging ratio of 70% to a floating ratio of 20-50%

100% hedged for seasonal inventory and consigned inventory & others

while 0% hedged for base inventory; Base inventory contributed ~75% of

gold inventory balance as at 31 March 2017

~35% hedging ratio as at 31 March 2017. Full implementation of the new

hedging mechanism expected in FY2018

Major benefits Reduce volatility on reported earnings due to hedging

Reduce finance cost arisen from gold loans

28

Business Outlook and Strategies

Market development

Selective openings in Mainland China Optimise retail network in Hong Kong and

Macau

Reach out to business prospects in soliciting wholesale business in the U.S.

Customer experience

Strengthen product offerings through

promotion of CHOW TAI FOOK T MARK,

Hearts On Fire and licensed fashion

jewellery collections

Store differentiation and multi-brand

strategy

Foster O2O interactions

“Smart+” initiatives

Promote the use of smart devices to support

O2O interactions

Leverage on big data analytics for better

understanding of customers’ preference

Business Outlook and Strategies

30

Appendix

Appendix – Major Awards & Recognitions

• Institutional Investor : All-Asia (ex-Japan) Executive Team Rankings (Consumer/Discretionary sector) (2016) - Most Honored Company – Third Place - Best Investor Relations – Third Place (Nominated by the buy side and sell side) - Best Investor Relations – Third Place (Nominated by the sell side) - Best CEO - Second Place – Kent Wong (Nominated by the sell side) - Best Investor Relations Professional – Third Place – Danita On (Nominated by the buy side and sell side) - Best Investor Relations Professional – First Place – Danita On (Nominated by the sell side) - Best Website - First Place (Nominated by the buy side and sell side)

• The Hong Kong Institute of Directors : Directors Of The Year Awards (2015) • Corporate Governance Asia: The 7th Asian Excellence Award (2017) - Asiaʼs Best CEO (Investor Relations) – Kent Wong - Asiaʼs Best CFO (Investor Relations) – Hamilton Cheng - Best Investor Relations Company (Hong Kong) - Best Investor Relations Professional – Danita On • Corporate Governance Asia: The 12th Corporate Governance Asia Recognition Awards 2016

– The Best of Asia – Asia’s Outstanding Company on Corporate Governance (2017) • Hong Kong Management Association: Best Annual Reports Awards – Best New Entry (2016)

Governance

32

Appendix – Major Awards & Recognitions

• Forbes Global 2000 (2016) • Brand Finance Global 500 (2017) • IAIR Awards : Best Company for Leadership – Luxury Sector, Asia (2013 - 2017) • World Branding Awards : Brand of the Year, Retailer – Jewellery, Hong Kong (2016) • World Brand Lab : China’s 500 Most Valuable Brands – Ranked 45th (2016) • World Brand Lab : China’s 10 Most Influential Brands (Jewellery) – Ranked 1st (2016)

Corporate branding

• HKSAR Government: Hong Kong Awards for Industries – Productivity and Quality Grand Award (2016) • Asia Pacific ICT Alliance : Asia Pacific ICT Alliance Awards

– Merit Prize in Retail and Supply Chain Management (2016) • L2 : Digital IQ Index Luxury China – Digital Competence – Ranked 6th (2017) • JNA Awards : Industry Innovation of the Year (2015) • GS1 Hong Kong and Guangdong - Hong Kong RFID Technology Service Center : Guangdong

– Hong Kong IoT Awards – Best IoT Applications Award (2014) • Asia Pacific ICT Alliance Awards - Winner Award in Retail and Supply Chain Management (2014)

E-commerce and technology

33

Appendix – Major Awards & Recognitions

• Hang Seng Global Composite Index • Hang Seng Composite Index • Hang Seng China (Hong Kong-listed) 100 Index • FTSE Asian Retail Index • Hang Seng High Dividend Yield Index • Hang Seng Corporate Sustainability Benchmark Index

Index constituent

• Diamond Empowerment Fund: Diamonds Do Good Awards – Community Development Award (2016) • World Green Organisation and United Nations Sustainable Development Goals:

Green Office Label and Better World Company Label (2016) • The Hong Kong Council of Social Service : Caring Company (2013 - 2017) • Hong Kong Productivity Council : The Hong Kong Outstanding Corporate Citizenship Award

– Enterprise Category – Merit Award (2016) • GS1 Hong Kong : Consumer Caring Company (2013 - 2016)

Corporate social responsibility

34

Thank you

These materials have been prepared by Chow Tai Fook Jewellery Group Limited (the “Company”) solely for use at this presentation and are not for public dissemination. The slides and any other materials used in this presentation are the property of the Company and must be treated as such. The information contained in this presentation is being furnished to you solely for your information and may not be forwarded, published or distributed, directly or indirectly, to any other person (whether within or outside your organisation/firm), in whole or in part, for any purpose and may not be reproduced in any manner whatsoever. Any forwarding, publication, distribution or reproduction of this document in whole or in part is unauthorised. The information contained in this presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities or other interests of the Company or its holding Company or any of its subsidiaries in any jurisdiction or an inducement to enter into any investment activity, nor shall it or any part of it form the basis of or be relied on in connection with any contracts, commitment or investment decision whatsoever. This presentation contains forward-looking statements. Such forward-looking statements are based on a number of assumptions about the operations of the Company and other factors, many of which may be beyond the Company’s control. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Accordingly, the Company’s actual results may differ materially from those expressed or implied by such forward-looking statements. The Company has no obligation and does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this presentation has been compiled as of the date of this presentation, speaks as of the date of this presentation (or earlier, if so indicated) and will not be updated to reflect material developments which may occur after the date of this presentation, and is subject to change, including substantial changes, without notice. This presentation may include measures of financial performance which are not a measure of financial performance under IFRS, such as “Core operating profit”. These measures are presented because the Company believes they are useful measures to determine the Company’s operating cash flow and historical ability to meet debt service and capital expenditure requirements. “Core operating profit” should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net profit or indicators of the Company’s operating performance on any other measure of performance derived in accordance with IFRS. Because it is not an IFRS measure, “Core operating profit” may not be comparable to similarly titled measures presented by other companies. The information contained in this presentation has not been independently verified. No representation, warranty, or undertaking express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It is not the intention to provide, and you may not rely on this document as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. None of the Company or any of its directors, officers, employees, agents, shareholders, affiliates, subsidiary, advisors or representatives shall be in any way responsible for the contents hereof, or shall be liable (in negligence or otherwise) for any loss howsoever arising from any use of this document or the information contained in this presentation or otherwise arising in connection therewith.

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