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MAN WAH HOLDINGS LIMITED
(1999.HK)
ANNUAL RESULTS 2012
CORPORATE PRESENTATION1
MAY 2012

DISCLAIMER AND FORWARD-LOOKING STATEMENTS
� This document carries the information and the opinion is not for the purpose of comprehensive
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forward-looking statements are based on our own company and other sources that we believe
is reliable.
2

PRESENTATION OUTLINE
Business Review
Financial Highlights
Future Plans and Strategies
Q & A Session
4
15
23
29
3

BUSINESS REVIEW
MANWAH HOLDINGS LIMITED FY2012
4

FINANCIAL SUMMARY
Revenue Growth : 13.9%
GP Margin : 34.0%
EBITDA Margin : 10.0%
Net Profit Margin : 7.0%
Dividend Payout Ratio : 41.0%
5

PRODUCT MIX
ENLANDA
5.1%
FY2012
Others
5.7%
CHEERS
89.2%
- Customized recliner, home theatre sofa,
Recliner Sofas with various swivel,
rocking or extending footrest functions,
and stationary sofas
- Mattresses and bedding accessories,
targeting the medium-high end
consumers
- Cabinets, tables and chairs
- HK “Morewell” stores
6

MOTION RECLINER MARKET IN THE US
Upgraded to 4 th largest Motion Recliner
manufacturer with 8.5% market share in 2011
from 5 th in 2010 with 7.3% market share
Company-level retail sales value market share(%) of
the top 5 companies, 2011
Company Name Market share (%)
1 La-Z-Boy Inc 20.4%
2 Furniture Brands International 13.0%
3 Ashley Furniture Industries 10.3%
4 Man Wah Holdings 8.5%
5 Jackson Furniture 7.7%
Source: Euromonitor International 2012
Market share calculated by revenue
Ranked as 4 th largest Motion Recliner brand in the
U.S. with 8.5% market share in 2011
Brand-level retail sales value market
share(%) of the top 10 brands, 2011
Brand Name Market share (%)
1 La-Z-Boy Inc 20.4%
2 Lane (Furniture Brands ) 10.8%
3 Ashley Furniture Industries 10.3%
4 Cheers (Man Wah Holdings) 8.5%
5 Catnapper(Jackson Furniture) 7.7%
6 Franklin Furniture Corporation 6.3%
7 Klaussner Furniture Ind 5.5%
8 Best Home Furnishings 3.4%
9 Southern Motion Inc. 2.2%
10 Flexsteel Industries Inc. 2.0%
7

SUSTAINED STRONG MARKET POSITION IN THE US
Rank
Rank last
year
Top 10 Sources for the U.S. Furniture Market
Company
Name
Estimated U.S. furniture
shipment in 2011 (USD
in mn)
% change
yr-on-yr
1 1 Ashley Furniture Inds. 3,338.3 10.1%
2 3 La-Z-Boy Inc 975.0 6.1%
3 2 Furniture Brands Int’l 932.9 -5.0%
4 4 Klaussner Furniture Inds. 490.0 0.0%
5 5 Dorel 450.5 1.8%
6 6 Sauder Woodworking 430.0 0.0%
7 7 Lacquer Craft 376.9 -5.3%
8 8 Ethan Allen 344.8 7.0%
9 9 Flexsteel Inds. 308.3 0.5%
10 10 Man Wah Holdings 276.9 7.2%
Source: Furniture/Today, Survey in May in 2012 (Furniture/Today is a leading publication in furniture industry in the USA)
8

MOTION RECLINER MARKET IN MAINLAND CHINA
Company-level retail sales value market share(%)
of the top 5 companies, 2011
Company Name Market share (%)
1 Man Wah Holdings 20.1%
2
3
Maintained the Leading Motion Recliner manufacturer position in Mainland China,
market share increased to 20.1% in 2011 from 19.8% in 2010
Kuka Technic Sofa
Manufacture
Fuli Farrell Furniture
Manufacture
Source: Euromonitor International 2012
4.8%
2.0%
4 Beijing Tiantan 1.6%
5 Beijing Aris Furniture 1.5%
Brand-level retail sales value market
share(%) of the top 5 brands, 2011
Brand Name Market share (%)
1 Cheers 20.1%
2 Kuka 4.8%
3 Farrell 2.0%
4 Tiantan 1.6%
5 Aris 1.5%
9

OVERVIEW OF THE US AND PRC MOTION RECLINER MARKET
USD in
million
10,000
8,000
6,000
4,000
2,000
0
7,447
Retail sales value of recliner sofas
in the U.S., 2007-2014
7,132
6,512
7,185
7,971
Source: Euromonitor International 2012
8,349
8,850
9,248
RMB in million
10,000
8,000
6,000
4,000
2,000
0
1,657
Retail sales value of recliner sofas
In Mainland China, 2007-2014
2,106
2,835
3,963
5,441
6,909
8,358
9,869
10

MOTION RECLINER AS PERCENTAGE OF TOTAL SOFA MARKET
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
39.0%
Source: Euromonitor International 2012
Motion Recliner as percentage of total sofa market
37.5%
35.2%
36.7%
4.6% 4.9% 5.8% 6.8%
38.8% 38.9% 39.0% 39.1%
8.1% 9.1% 9.8% 10.4%
2007 2008 2009 2010 2011 2012E 2013E 2014E
In US In Mainland China
11

EXTENSIVE GLOBAL DISTRIBUTION NETWORK
Revenue by geographical segments
5.2% 4.9%
9.5%
FY2012
51.5%
26.6%
2.3%
US Europe Canada Others Mainland China HK
8.5%
Revenue
Ratio %
100%
75%
50%
25%
Market Segments Analysis
29.7% 28.2% 28.9%
70.3% 71.8% 71.1%
FY2011 Customer Base Analysis
4.6% 4.4%
54.3%
25.0%
3.2%
US Europe Canada Others Mainland China HK
0%
FY2010 FY2011 FY2012
Overseas Mainland China & HK
High Quality customer base, our top 5 retailers
includes : Flexsteel, Steinhoff, American Signature, RTG
Furniture, Haverty’s
Macy’s became our top 10 customers
12

NETWORK EXPANSION IN MAINLAND CHINA
600
500
400
300
200
100
0
400
300
200
100
0
CHEERS – Self-operated vs. distributed stores
Distributor Self-operated
213
37
Distributor Self-operated
121
25
96
265
44
175
33
296
74
176 221 222
213
43
405
121
284
255
70
505
174
331
FY2008 FY2009 FY2010 FY2011 FY2012
ENLANDA – Self-operated vs. distributor stores
237
75
142 170 185 162
FY2008 FY2009 FY2010 FY2011 FY2012
The Self-operated store network covers 22
major cities in Mainland China
Chendu
Chongqing
Xi’an
Beijing
Xianghe
Wuhu
Wuhan
Tianjin
Nanchang
Dalian
Shanghai
Hangzhou
Ningbo
Guangzhou
Quanzhou
Foshan
Xiamen
Zhongshan
Dongguan
Zhuhai Shenzhen
Huizhou
Note: Store numbers as at 31 March 2012
13

AWARDS & RECOGNITIONS
Ranked by Forbes magazine as “Asia’s 200 Best Under A Billion” in 2011
“Cheers” has been awarded “Chinese Well Known Mark”
Ranked top 10 sources for the U.S. furniture market by “Furniture Today”
with estimated shipment of USD 277 million in 2011
Man Wah has been awarded “Special Support Award” by CNR Changchun
Railway Vehicles Co., Ltd.
14

MAN WAH HOLDINGS LIMITED FY2012
15

FINANCIAL HIGHLIGHT
(HK$ million) FY2012 FY2011 Change
Revenue 4,336.4 3,808.2 13.9%
Gross Profit 1,474.9 1,617.4 -8.8%
Gross Profit Margin (%) 34.0% 42.5% -8.5pts
EBITDA Margin (%) 10.0% 19.4% -9.4pts
Net Profit for year 302.2 621.3 -51.4%
Net Profit Margin 7.0% 16.3% -9.3pts
Basic EPS (HK cents) 31.5 64.5 -51.2%
Diluted EPS (HK cents) 31.5 64.5 -51.2%
Full Year Dividend per Ordinary Share (HK cents) 13.0 26.4 -50.8%
Comprising : Final Dividend (HK cents) 7.0 13.0 -46.2%
Interim Dividend (HK cents) 6.0 13.4 -55.2%
Dividend Payout Ratio 41.0% 40.9% +0.1pts
16

STEADY FINANCIAL POSITION
(HK$ million) FY2012 FY2011 Change
Average Inventory Turnover Days 59 days 59 days -
Average Receivable Turnover Days 30 days 25 days 5 days
Average Payable Turnover Days 32 days 32 days -
Current Ratio 2.40 5.81 -
Total Bank Borrowings 582.8 17.5 565.3
Debt Gearing Ratio 13.0% 0.5% -
Cash and Cash Equivalents 1,190.1 1,611.2 -26.1%
17

REVENUE BREAKDOWN
HK$ (Million )
5000
4000
3000
2000
1000
0
93.1
107.7
35.3
648.8
125.2
67.3
267.4
1,083.1
113.2
117.1
368.7
1,364.8
121.4
193.4
557.0
2,060.4
121.3
193.0
760.5
2,733.4
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
98.2
202.5
951.7
3,084.0
Sofa Export Sales Sofa Mainland China Sales Bedding Mainland China Sales HK Retail & Wholesale Sales
HK$
in million
FY2012 FY2011
% of
Turnover
HK$
in million
% of
Turnover
Yr- on- yr
Change
Sofa Export Sales 3,084.0 71.1% 2,733.4 71.8% 12.8%
Sofa Mainland China Sales 951.7 22.0% 760.5 20.0% 25.1%
Bedding Mainland China Sales 202.5 4.7% 193.0 5.0% 4.9%
HK retail & wholesale Sales 98.2 2.2% 121.3 3.2% -19.0%
Total Turnover 4,336.4 100.0% 3,808.2 100.0% 13.9%
18

SALES VOLUME AND ASP BREAKDOWN
For the year
ended 31 March
Export Sofa
(wholesale price)
Mainland China
Sofa (wholesale &
retail price)
HK Sofa (wholesale
& retail price)
Mainland China &
HK Bedding
(wholesale & retail
price)
Volume sold
in FY2012
Volume sold
in FY2011
Change
yr-on-yr
ASP in FY
2012
(in HKD)
ASP in FY
2011
(in HKD)
Change
yr-on-yr
476,633 446,600 6.7% 6,470 6,100 6.1%
55,938 51,800 8.0% 13,022 12,200 6.7%
4,703 5,200 -9.6% 11,490 10,100 13.8%
49,919 46,500 7.4% 4,477 4,600 -2.7%
19

GROSS PROFIT MARGIN BREAKDOWN
HK$ (Million)
1500
1200
900
600
300
0
Overall Gross Profit and Margin
35.70%
701
42.9% 42.5%
1,257
1,617
34.0%
1,475
FY2009 FY2010 FY2011 FY2012
Gross Profit Gross Profit Margin
60%
50%
40%
30%
20%
10%
0%
70%
60%
50%
40%
30%
20%
63.5%
63.4%
44.7%
GP Margin by Category
28.6%
64.5%
60.5%
39.7%
56.5%
43.2% 46.6%
44.7%
40.7%
FY2009 FY2010 FY2011 FY2012
Mainland China Bedding Export Sofa
HK Retail & Wholesale Mainland China Sofa
49.5%
48.8%
44.0%
29.5%
20

PRODUCT COST ANALYSIS
Labour
7.1%
Wood 8.1%
PVC
2.9%
Others 9.7%
FY2012
Metal
18.9%
Fabric 6.9%
Chemicals
10.6%
Leather
35.8%
Wood
PVC
7.7%
2.5%
Others
5.6%
Labour
8.0%
Metal
15.0%
FY2011
Fabric 5.4%
Chemicals
9.7%
Leather
46.1%
Major Raw Material Average Unit Cost Compared Change in FY2012 (% )
Leather 17.8%
Foam 10.6%
Metal 1.0%
PVC 15.1%
Wood -4.4%
Fabric -3.6%
21

SHAREHOLDER STRUCTURE
Chairman
63.83%
Chairman
61.33%
Shareholder Structure
Manageme
nt 2.73%
In FY2012, Company bought back total 27,988,400
shares, which was 2.88% of total issued share
capital. All shares bought back have been cancelled
Company
Shareholder
Structure
Management
0.15%
Old
Shareholders
3.4%
Public
36.02%
Public
32.54%
In FY2012, Chairman Mr. Wong Man Li bought back
total 6,355,200 shares
22

FUTURE PLANS & STRATEGIES
MAN WAH HOLDINGS LIMITED FY2012
23

EXPANSION STRATEGIES IN OVERSEAS MARKETS
U.S. Market
•Product development- new materials, new structures
Europe Market
•Customer expansion in new market such as France, Germany,
Finland
Exhibitions in U.S. and Europe
24

EXPANSION STRATEGIES IN THE PRC MARKET
Continue to expand “CHEERS” and “ENLANDA” retail network
Further improve existing store performance
Develop new products-new store format and products series
In FY2012, more than 200 new models have been launched.
25

SPONSORSHIP & PROMOTION EVENTS
Promotion events
�Airplane Showcase for potential clients to
experience our products
Advertisement
�advertising on CCTV
�outdoor advertisements: on the highway
26

FACILITY UTILISATION
Recliner Sofa production capacity and utilisation
Sofa sets
(‘000)
900
800
700
600
500
400
300
200
100
0
90.8%
19
184
50.7%
247
254
57.6%
212
288
78.9%
109
407
313 279
61.7% 65.8%
503
Utilisation (%)
537
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
100%
75%
50%
25%
Utilised capacity Unused capacity Utilisation rate
0%
Bedding production capacity and utilisation
Mattresses (‘000)
100
80
60
40
20
0
71.4%
8
21
68.9%
13
29
74.4%
11
32
68.3%
19
41
78.3%
13
47
Utilisation (%)
83.3%
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
10
50
100%
75%
50%
25%
Utilised capacity Unused capacity Utilisation rate
0%
27

PRODUCTION FACILITIES
Shenzhen Huizhou Wujiang Tianjin
• Capacity to
manufacture
approximately
50,000 sets of
reclining sofas per
annum
• Current capacity is
766,000 sets of
reclining sofas in
Huizhou
•The factory in
Wujiang, Jiangsu
province with capacity
of 300,000 sets of
reclining sofas will
start operations in July
2012
•Reduce transportation
cost in mainland China
market
•Increase “CHEERS”
popularity in Central
China
• Signed a contract
to acquire a piece
of land in Tianjin
• Support the
Group's revenue
growth within the
next 5-8 years
• Further strengthen
the leading
position in the
recliner sofa
industry
28

Q&A
MAN WAH HOLDINGS LIMITED FY2012
29