GLG CORP LTD — Annual Report 2008

Aug 28, 2008

GLG CORP LTD

Results Presentation For the year ended 30 June 2008

1

2008 Financial Year Overview

US retail market negatively impacted by credit crisis; GLG Corp Ltd Declining US consumer confidence; Results

Half-Year Ended 31 December 2005 Impact on large retail sector including “Linens and Things”, “Mervyn’s” both operating under Chapter 11 Bankruptcy Protection, and declining earnings at others, including Macy’s;

Impact on GLG Corp included:

• Moderate decline on YOY Revenue; -

• GK Soh Chief Executive Officer

• � Eu 40 Mun Leong - % Fall in Other Income; Chief Financial Officer

• Increase in Distribution Expenses;

• Slower payment from customers.

6-7 March 2006

2

2008 Financial Year Overview

Sales decreased 5.2% to US$209.1 million; GLG Corp Ltd NPAT of US$6.3 million (down 21.8% from 2007 and Results consistent with trading update issued in Dec 2007.); Half-Year Ended 31 December 2005 EPS of US 8.5 cents. PER 3.0x;

NTA per share US 33.9 cents. Up 6.8%;

The Company has resolved not to declare a final cash dividend to conserve liquidity in light of difficult US trading environment, however - is considering a Bonus Issue of GK Soh Chief Executive Officer Share ~~s;~~

Eu Mun Leong - Chief Financial Officer Company will consider a cash Interim Dividend in the second half of the current financial year.

6-7 March 2006

Price: A$0.30 A$0.86: US$1

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GLG Corp Ltd
GLG Corp Ltd Results Half-Year Ended 31 December 2005 Financial Update 30 June 2008
GKSoh -	Chief Executive Officer
Eu Mun Leong -	Chief Financial Officer
6-7 March 2006

4

Consolidated P&L Analysis: Full- ear ended 30 June 2008 y

	30 June 2008 US$ million	30 June 2007 US$ million	Change
Revenue	209.1	220.6	(5.2)%
Cost of Sales	(188.1)	(199.0)	5.5%
Gross profit	21.0	21.6	(2.8)%
Other Income	1.2	2.0	(40.0)%
Distribution expenses	(1.7)	(1.3)	(30.8)%
Administrative expenses	(10.7)	(10.8)	0.9%
Finance cost	(1.5)	(1.5)	-
Other expenses	(1.2)	(1.1)	(9.1)%
Profit before tax	7.1	8.9	(20.2)%
Income tax expense	(0.8)	(0.8)	-
Profit after tax	6.3	8.1	(21.6)%

		Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change	Consolidated P&L Analysis: Half-year ended 31 December 2005 Balance Sheet Analysis: Summary 30 Jun 2008 US$ million 30 Jun 2007 US$ million Change
		Half-ye					ar ended 31 30 Jun 2008 US$ million	December 30 Jun 2007 US$ million	2005 Change
		CURRENT ASSETS Cash					3.8	2.5	52.0%
		In A$ million at a AUD/USD exchange rate of 0.73 Trade Receivab	Proforma le		Varience	% Varienc	20.7	22.9	(9.6)%
		(For illustration purposes only. The reporting currency of GLG is the US$) Advance, prepa	~~31 December~~ 2004 yments & ot	~~31~~ December ~~2005~~ her receiva	ble	e	0.2	0.2	-
		NON-CURRENT	ASSETS				6.6	5.1	29.4%
		TOTAL ASSETS					31.3	30.7	2.0%
							3.5	3.6	2.8%
		Interest Expenses CURRENT LIAB Accounts payab	0.282 ILITIES le	0.577	0.295	105%
		~~Borrowings (average)~~ Interest bearing	~~21.4~~ liabilities	~~20.8~~	~~(0.6)~~	~~(3)%~~	0.8	0.8	-
							-	-	-
		Interest Rate Other financial l	4.44% iabilities	7.56%	3.12	70%
		Tax provision					0.9	1.1	18.2%
		Interest Variance due to interest rate increase NON-CURRENT LIABILITIES				0.326
		Interest variance due to borrowings decrease Interest bearing liabilities Tax liabilities					0.9 0.1	1.6 0.1	43.8% -
						(0.031)
		NET ASSETS					25.1	23.5	6.8%
		~~Total Net Increase in Interest~~ EQUITY & RESERVES				0.295	25.1	23.5	6.8%

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Consolidated P&L Analysis:

Half-year ended 31 December 2005 Balance Sheet Analysis: Liquidity & Gearing Ratios

							30 Jun 2008	30 Jun 2007
	D/USD 3 Proforma Varience % ~~Varienc~~ Current Asset Ratios
In A$ million at a AU exchange rate of 0.7 (For illustration pur The reporting curre is the US$)	D/USD 3	Proforma		Varience C	% ~~Varienc~~ urrent
	poses only. ncy of GLG Debt	31 December 2004 ors turno	31 December ~~2005~~ ver (da	ys)	e		36 days	37 days
	Curr	ent Ratio	(X)				4.77 x	4.71 x
	Cas	h					US$3.8 m	US$2.5 m
Interest Expen
	~~ses~~	~~0.282~~	~~0.577~~	~~0.295~~	~~105%~~ Gear	ing Ratios
							0.06 x	0.10 x
Borrowings (a	verage) Debt	21.4 to Equit	20.8 y	(0.6)	(3)%
							8.63x	11.4x
Interest Rate	~~Inter~~	4.44% ~~est Cove~~	7.56% ~~rage~~	3.12	70%
	Tota	l bank fa	cilities a	vailab	le		US$84.5m	US$90.0m
Interest Variance due to interest rate increase Interest variance due to borrowings decrease Total Net Increase in Interest Use of bank facilities (%) All Bank covenants met.	ce due to interest rate increase				0.326
	ce due to borrowings decrease Use of bank facilities (%)						56%	49%
					(0.031)
					0.295
7 A Global Textile & Apparel Supply Chain Manager

Cash Flow StatementConsolidated P&L Analysis:

- Half year ended 31 December 2005

								~~2008~~	~~2007~~
		Results: Full-year ended 30 June 2008						US$m	US$m
		llion at a AUD/USD e rate of 0.73 tration purposes only. rting currency of GLG $) Proforma 31 December 2004 31 December 2005 Varience % Varienc e st Expenses 0.282 0.577 0.295 105% Receipts from customers Payments to suppliers and employees Int rest paid Income taxes paid Interest received Net Operating Cash Flows						207.2 (198.6) (0.9) (1.0) 0.2 6.9	223.4 (210.1) (0.8) (0.6) 0.3 12.2
	In A$ mi exchang (For illus The repo is the US	llion at a AUD/USD e rate of 0.73 tration purposes only. rting currency of GLG $) Payments Int rest p Income ta Interest re	Proforma 31 December 2004 to suppli aid xes paid ceived	31 December 2005 ers and e	Varience mploye	% Varienc e es
	Intere	st Expenses Net Opera	0.282 ting Cash	0.577 Flows	0.295	105%
								(0.3)	(0.7)
	Borro	wings (average) ~~Net Inves~~	21.4 ~~ing Cash~~	20.8 ~~lows~~	(0.6)	(3)%
		Dividend	s paid					(4.6) (0.7) (5.3)	(4.6) (9.5) (14.1)
	Intere	st Rate Proceeds ~~Net Finan~~	4.44% /(Repayme ~~cin Cash~~	7.56% nt) from ~~Flows~~	3.12 borrow	70% ings
	Interest Variance due to interest rate increase Interest variance due to borrowings decrease Total Net Increase in Interest ~~g~~ Net increase (decrease) in cash held Cash at the Beginning Period Cash at End of Period	st Variance due to interest rate increase ~~g~~				0.326
		st variance due to borrowings decrease Net increase (decrease) in cash held Cash at the Beginning Period Cash at End of Period						1.3 2.5 3.8	(2.6) 5.1 2.5
						(0.031)
						0.295

8

GLG Corp Ltd

Marketplace Update GLG Corp Ltd Results 29 August 2008 Half-Year Ended 31 December 2005

GKSoh	-	Chief Executive Officer
Eu Mun Leong	-	Chief Financial Officer
6-7 March 2006

9

GLG Corp Ltd ~~Marketplace Update~~

GLG Corp Ltd Marketplace Results Cost reduction pressure driving consolidation of buying teams at Half-Year Ended 31 December 2005 the large US retailers

Reactive buying patterns from customers, leading to “see how it sells and react orders”, smaller bulk purchases, increased number of smaller orders;

Reduction in number of product lines carried by large customers; GK Soh Chief Executive Officer Customers driving supplier consolidation by narrowing their Eu Mun Leong - Chief Financial Officer vendo ~~r ba~~ se

6-7 March 2006

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GLG Corp Ltd Marketplace Update contd..

GLG Corp Ltd Pricing/Margin Results

Half-Year Ended 31 December 2005

Customers chasing lowest price goods, however now willing to partially share “margin crunch” coming from higher production costs;

Customers investigating lower cost production in alternative countries of origin for garment manufacturing.

Customers

GK Soh

Chief Executive Officer

Declinin Eu Mun Leong - g consumer confidence causing lower sales and pushing Chief Financial Officer spending to the “lower end” of the market; Weaker retailers facing greater supplier scrutiny.

6-7 March 2006

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GLG Corp Ltd Marketplace Update contd..

GLG Corp Ltd New Sales Channels Results Europe: Benetton; Half-Year Ended 31 December 2005 Value Based: Family Dollar & Dollar General.

More Sophisticated Customer Management Focus on financially strong accounts such as Wal-Mart; GK Soh Chief Executive Officer ~~man~~ Tighter agement of higher credit risk retailers. Eu Mun Leong - Chief Financial Officer Launch of GLG Brand Product in Singapore

6-7 March 2006

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GLG Corp Ltd ~~Marketplace Update contd..~~ GLG Corp Ltd GLG Response to Marketplace Results Half-Year Ended 31 December 2005 Cost control Close monitoring of Customer Performance Adding to Sales Management capacity. Business Model Review; GK Soh Chief Executive Officer Factory ~~con~~ solidation Eu Mun Leong - Chief Financial Officer

6-7 March 2006

13

Sales Bookings and Shipments Update (US$ Million) ~~FY 08 FY 09 Remarks~~

Actual Sales Sales Bookings Jul – Sep Q1 59.5 52.0 Bookings 100% complete 65% of Bookings shipped Oct - Dec Q2 53.0 49.2 Bookings continuing 112.4 101.2 Jan -Mar Q3 46.2 Apr-Jun Q4 50.5 Total 96.7

Full Year Total 209.1

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GLG Corp Ltd ~~2009 Outlook~~

GLG Corp Ltd Difficult trading conditions in the United States; Results Half-Year Ended 31 December 2005 Retail uncertainty: future of Mervyns and others; No forecast growth in revenue; Cost control should assist in improving profitability; and Review of business model should enable the Group to adapt to changing buying conditions brought on by the ongoing challenges in GK Soh Chief Executive Officer the US m ~~arke~~ t.

Eu Mun Leong - Chief Financial Officer

6-7 March 2006

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Thank You

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