Investor Presentation - Li Ning

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Sell in vs. Sell Through Illustration Channel Inventory Illustration Sales to distributors (“sell in”) Channel Inventory Build Up (sell in > sell through) Balance Retail sales of distributors (“sell through”) Excess inventory which needs to be cleared (origin of “Channel Revival Plan” costs) 2010 2012 2009 2012 Note: The above charts are of indicative nature and aimed at giving a directional sense on the subject matters. For actual amount s, please refer to the Company's published financial statements. Wholesale practice and overexpansion… … leading to build up in channel inventory 11
Sell In > Sell Through Current Challenges Excess channel inventory Higher mix of old products leading to heavy discounting Declining retail performance Lower distributor and sub-distributor profitability and cash flows Current challenges within the channels resulting from the wholesale practice began to spill over into the company in 2011 12
Page 1 and 2: LI NING COMPANY LIMITED 李寧有
Page 3 and 4: Speaker: Mr. LI Ning Founder, Execu
Page 5 and 6: Background on recent challenges wit
Page 7 and 8: China Market Core Brand Sports Esse
Page 9 and 10: In the few months since the opening
Page 11: Speaker: Mr. Jin-Goon KIM Executive
Page 15 and 16: Improve store unit economics Ratio
Page 17 and 18: Near Term Medium Term #1 Management
Page 19 and 20: Structure of the Board of Directors
Page 21 and 22: ILLUSTRATION OF PRODUCT ASSORTMENT
Page 23: Q&A 22

Investor Presentation - Li Ning

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