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Investor Presentation - Li Ning

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Near Term<br />

Medium Term<br />

#4<br />

Products and<br />

Merchandising<br />

SKU rationalization<br />

Improved pricing strategy with broader<br />

and more targeted coverage of key<br />

demographics<br />

Introduction of “hero” SKUs<br />

Consumer-oriented product<br />

planning, design and<br />

development<br />

Build stronger innovation<br />

capabilities<br />

#5<br />

Retail<br />

Business<br />

Model<br />

Adjustments to the trade fair process<br />

More flexible supply chain and logistics<br />

Store level forecasting and rapid<br />

replenishment (pilot stage)<br />

Redesign of sales and channel<br />

organization and practices<br />

Continued build up of retail<br />

capabilities in the channel<br />

partners<br />

Flexible ordering and fast retail<br />

capabilities<br />

#6<br />

Cost Structure<br />

COGS reduction<br />

SG&A reduction<br />

On-going cost optimization<br />

efforts<br />

17

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