Corporate PresentationCorporate Presentation

Presentation OutlinePresentation Outline

1. Company Overview

2. Highlights

3. Financial Review

4. Outlook

5. Company Growth Strategies

6. Q&A

Company OverviewCompany Overview

Company OverviewCompany Overview

Vision

Time Watch Investments Ltd’s vision is to be a leading, global player in the timepieces industry. It strives to achieve international brand standards whilst delivering sustainable, superior returns to its shareholders.

Mission

Time Watch aims to be a leading manufacturer, trader and retailer of top international watch brands by building on its fully integrated value chain and delivering premium quality products. It seeks to work in partnership with its stakeholders to build a valuable, rewarding and socially responsible firm

Company OverviewCompany Overview

Vertically integrated model from manufacturer, trader and retailer

Leading Watch Retailer in the PRC

Established, large sales network of over 600 outlets in shopping malls in over 35 cities strong barriers to entry

Owns “Tian Wang”, one of PRC’s top 3 watch brands & “Balco”, one of PRC’s famous foreign brands

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

Has extensive room both for organic growth as well as “vertical integration” growth

OEM Watches’ sector include branded watches: Police, Aigner, Swiss Military, Marie Claire, Jacques Lemans etc.

Trading Substantially Below Its Peers, Undervalued High-Growth Stock

Market Presence in PRCMarket Presence in PRC

Over 600 outlets in over 35 cities

Stores present in all colored regions except Qinghai & Tibet

Business ModelBusiness Model

Trading of WatchMovements

Manufacturing & Retailing

OEM Manufacturing

3 core areas of businesses

Manufacturing Bases Manufacturing Bases

Existing: 40 000 pieces per month

Future: Able to increase to 100 000 pieces if necessary

Time Watch Acquired 2 Manufacturing Bases in July 06

51% of East Base (HONG KONG)

51% of Tick Tack (SWITZERLAND)

Combined Production capacity of 60,000 watches per month / more than 700,000 watches per year

Production Capacity

Creating Value for …Creating Value for …

Vertically-integrated Business Model

One-Stop Service provider from Designing, ManufacturingAssembling, Trading, distribution and retail

High Barriers Of Entry

Have better control over product quality

Achieve a competitive cost structure

Continually enhance vertical integration

to further improve its profit & profit margin

HighlightsHighlights

Performance Highlights

Strong Performance across retail segment on back of

strong retail sales in the PRC

Optimistic Outlook, Target at least 20% sales growth for next few years

Maiden contributions from Zijingshan mall rental rebates, new sales of

“POLICE” branded watches, sunglasses and accessories expected in FY 2008

Improved Liquidity & Coverage (Lower Debt Ratio)

Final Dividend payout of HK$0.30 or 2.6% dividend yield per share

11 months contribution from OEM Manufacturing Base Tick Tac & East Base

Recent DevelopmentsRecent Developments

6 March 2007Placement agreement at the issue price of S$0.33 with OCBC Securities Pte Ltd; UOB Asset Management to take up approximately 11% of the shares

22 January 2007 Proposed issue of SGD 5 million convertible bond from OCBC Bank

5 January 2007 Proposed share consolidation of every 50 issued ordinary shares into 1 ordinary share

3 May 2007 Time Watch Acquires ZijingShan Shopping Mall at RMB 96 million

3 May 2007 Time Watch Chairman Buys 1.5million Shares

FY2007 Financial ReviewFY2007 Financial Review

Financial Highlights – FY2007Financial Highlights – FY2007

Financial Highlights FY2007 FY2006%

Change

Revenue (HK$'000) 855,859 721,730 19%

Cost of Sales (HK$'000) 674,667 606,892 11%

Gross Profit (HK$'000) 181,192 114,838 58%

Gross Profit Margin 21% 16% 31%

Net Profit (Loss) as reported (HK$'000) 83,061 (50,378) N/A

Earnings per Share (HK cts) as reported 21 -15 N/A

For Reference

Exceptional items – Gain (Loss) (HK$'000) 27,981 (83,499) N/A

Net Profit (Loss) from ordinary activities (HK$'000) 45,371 35,192 29%

Earnings per Share (HK cts) on ordinary activities 13 11 18%

Financial Ratios

2007 2006 +/-

HK$M HK$M

EBITDA(LBITDA) 112.5 -38.6 N/A

Equity attributable to equity holders 203 68 199%

Total assets 533.5 266.4 100%

Profitability / Coverage

Return on average shareholders' funds 54% N/A N/A

Long term debts/total assets 15% 18% -14%

Current assets/current liabilities ratio (times)

1.6 1.5 7%

Average inventory/turnover (%) 16% 15% 8%

Net Profit Growth Trend

Surged from a loss of HK$50m in FY 2006 to HK$83 m in FY 2007

Excluding:HK$83m in goodwill written off in FY

2006 & Revaluation gain on property of

HK$28m in FY2007 Strong watch sales

New store sales

Efficiencies of scale

Effective cost control

Net Profit= 29% Y-O-YNet Profit= 29% Y-O-Y

35799

(50,378)

83,061

-60000

-40000

-20000

0

20000

40000

60000

80000

100000

HKD'000

FY2005 FY2006 FY2007

Net Profit

11 months contribution in FY 2007 results

Revenue Growth TrendRevenue Growth Trend

Revenue- Strong Growth

CAGR= 13.9% Increased 19% Y-O-Y

10% increase in point of sales (“POS”) to 615 points

Sales from each existing POS increased by 20%

19%

Y-O-Y

KEY REVENUE DRIVER 1 :Manufacturing & Retail

KEY REVENUE DRIVER 2 :OEM Manufacturing

Business Segmental Business Segmental Revenue Contribution Revenue Contribution

% Contribution to Revenue

Manufacturing & Retail Sales,

22%

Trading Watch movement, 78%

FY 2006 Manufacturing & Retail Sales - 22%

Trading Watch Movement - 78%

FY 2007 Manufacturing,& Retail Sales - 21% Trading Watch Movement - 53%

OEM Manufacturing – 26%

% Contribution to Revenue

Manufacturing & Retail Sales, 21%

Trading Watch movement, 53%

OEM of Watches, 26%

Business Divisions Business Divisions Net Profit Contribution Net Profit Contribution

% Contribution to Net Margin

OEM of Watches, 22%

Trading Watch movement, 6%

Manufacturing & Retail Sales, 72%

FY 2006 Manufacturing & Retail Sales - 75%

Trading Watch Movement - 25%

FY 2007 Manufacturing,

& Retail Sales - 72% Trading Watch Movement - 6%

OEM Manufacturing – 22%

% Contribution to Net Margin

Manufacturing & Retail Sales, 75%

Trading Watch movement, 25%

Business DivisionsReturn on Net Assets Employed

% Contribution to Return on Net Assets Employed

Trading Watch movement, 9%

OEM of Watches, 42%Manufacturing & Retail

Sales, 45%

FY 2006 Manufacturing & Retail Sales – 34%

Trading Watch Movement -24%

FY 2007 Manufacturing,

& Retail Sales - 45% Trading Watch Movement - 9%

OEM Manufacturing – 42%

% Contribution to Return on Net Asset Employed

Manufacturing & Retail Sales, 34%

Trading Watch movement, 24%

Resources diverted away from Trading Watch Movement due to lower profit margins

Gross Profit Growth TrendGross Profit Growth Trend

Gross Profit- 58% increase Y-O-Y; 25.5% CAGR FY 05-07

91606

114838

181192

0

50000

100000

150000

200000

HKD'000

FY2005 FY2006 FY2007

Gross Profit

CAGR= 25.5%

Gross Profit

Substantial Increase

of 58% from

HK$115m to HK$181m

58%

Y-O-Y

Gross Profit Margin Growth Trend

Gross Profit Margin- 31% GrowthAttributable to:

1. Successful Cost Reduction • Strategies To Lower

Production Losses• Stricter Cost Control

2. Economies of Scale from • New dustless production line

in Shenzhen plant commencingoperations this year

3. Overall Higher Quality Products

Net Cash

14713

22,677

48,814

0

10000

20000

30000

40000

50000

HKD'000

FY2005 FY2006 FY2007

Net Cash

Increased more than 100%- War Chest to support Expansion Activities

Due primarily to a placement of shares by UOB Asset Management of HK$56m

2.3xDebt Ratio improved

72% to 58.3%

Directors prudently managed debt

position

Debt ratio= Total Debt/ Total Asset

Stock PerformancePeer Comparison

  EPS PE MC

Xinyu Hengdeli   0.045 98.52

HKD 11379.01

M

FJ Benjamin   0.32 14.07 SGD 213M

Peace Mark 0.303 41.55

HKD 12952.52

M

Shenzhen Fiyta   N.A 71.03HKD 4611.67M

Sincere (HK) 0.072 7.67 HKD 315.87M

Time Watch 0.21 5.6 SGD 86M

Information Correct as of 23 Aug 07

OutlookOutlook

Positive Outlook in the PRCPositive Outlook in the PRC

Euromonitor market research report dated August 2006

“The growth in demand for medium-price products and those of famous brands, associated with the

fashion element of quartz watches, will grow the fastest, reflecting rising consumer expectations and spending power.”

On the Chinese Watch market, on medium-priced products:-

Sales of Watches Total Volume Sales of Watches Total Volume – Historic and Forecast– Historic and Forecast

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

'000

un

its

Source: Euromonitor International Report “Watches in China” August 2006

Sales of Watches Total Sales – Sales of Watches Total Sales – Historic and ForecastHistoric and Forecast

0

1

2

3

4

5

6

7

8

9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

RM

B b

illi

on

s

Source: Euromonitor International Report “Watches in China” August 2006

Company Growth StrategiesCompany Growth Strategies

Short-Term Growth StrategiesShort-Term Growth Strategies

57 points of sales (POS) opened in this financial year 57 points of sales (POS) opened in this financial year

Same POS growth = 20%

New POS contribution = 10%

Target 20% - 30% Retail Segment Growth

Market Penetration

To obtain sole distributorship in the PRC and retail internationally-

renowned brands such as “POLICE” to target younger, trendier yuppies

Maiden Contributions from Zijingshan Department Store in Zhenzhou, Henan Province expected HY 08

Flagship Store, Branding Anchor & Widening Revenue base

Penetration into South East Asian MarketSetting up of Singapore outlet as a launch pad into the rest of South East Asian markets e.g. Malaysia and Indonesia

Going ForwardGoing Forward

Increase reach & explore new business opportunities

Further increase presence in the PRC

Possibilities in expanding into other markets-Either organically or through mergers and acquisitions

Develop its business to increase revenue streams,

continue identifying opportunities to expand portfolio

Continue to use its network of selling points

to capture new opportunities

Upgrade & redesign showrooms & showcases to maintain image, optimizing its product mix & raising brand awareness

Summary

Strong Performance across retail segment on

back of strong retail sales in the PRC

Maiden contributions from Zijingshan mall

rental rebates, new sales of “POLICE”

branded watches, sunglasses and

accessories expected in FY 2008

Improved Liquidity & Coverage (Lower Debt Ratio)

Final Dividend payout of HK$0.30 or 2.6% dividend yield per share

11 months contribution from OEM Manufacturing Base Tick Tac & East Base

Target 20%-30% Retail Sales Growth

Market Penetration

Flagship Store, Branding Anchor & Widening Revenue base

Penetration into South East Asian Market

Well-Poised for Expansion Next Growth Phase

Q&AQ&A

Thank You

www.timewatch.com.sg