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Disclaimer

This presentation and the accompanying slides (the “Presentation”) which have been prepared by Stella International Holdings Limited (“Stella” or the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or be relied

• n in connection with any contract or binding commitment whatsoever. They are only being

furnished to you and may not be photocopied, reproduced or distributed to any other persons at any time without the prior written consent of the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all

• f the information that you may consider material. Any liability in respect of the contents of or

any omission from this Presentation is expressly excluded. Certain matters discussed in this presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking

• statements. Such forward-looking statements are not guarantees of future performance and are

subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation, including, amongst others: whether the Company can successfully penetrate new markets and the degree to which the Company gains traction in these new markets; the sustainability of recent growth rates; the anticipation of the growth of certain market segments; the positioning of the Company’s products and services in those segments; the competitive environment; and general market conditions. The Company assumes no obligation to update any forward-looking information contained in this presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.

2

COMPANY OVERVIEW

Our Management Team

4 Strong senior management with in-depth industry knowledge and established track record Experienced Non-Executive Board with diversified background and competencies

Name Position

Years of Relevant Experience Years with Stella

Executive Directors: Lawrence Chen Chairman 33 33 Stephen Chi Group CEO 23 23 Business Division: Dermot Smowton Group COO 37 5 Ray Chen GM of Men’s Footwear Business Division 32 32 Roger Yang GM of Overseas Footwear Business Division 32 32 Jeremy Huang GM of Fashion Footwear Business Division 22 22 Charles Gillman GM of Sports Fashion Footwear Business Division 36 2 Corporate Division: Don Lee Group CFO 39 13 Joe Wei Director, Business Development & Planning 23 4

• Mr. Jack Chiang, NED, over 38 years experience in management in the footwear industry
• Mr. Eric Chao, NED, over 38 years experience in management in the footwear industry
• Mr. Johnny Chen, INED, over 20 years experience in China’s capital market and professional service sectors
• Mr. Peter Bolliger, INED, over 30 years experience in footwear and retail
• Mr. William Chan, INED, over 30 years experience in human resources profession
• Mr. Thomas Yue, INED, over 35 years experience in accounting profession
• Mr. Jie Lian, INED, over 15 years experience in investment banking and private equity
• Ms. Shi Nan San, INED, over 30 years experience in media and entertainment

Corporate and Shareholder Structure

5

Cordwalner Bonaventure Inc. Directors Public Manufacturing Branding

32.98% 12.94% 54.08% Contractual arrangement Processing factories WFOE Distributor (Asia, GCC) Europe Greater China

STELLA

1836

Employee Participation

6 Pre IPO Combat Team- 2011 Vesting Period 5-year (in 5 tranches) 5-year (one-time), KPI triggered Arrangement Held under Cordwalner Bonaventure and several SPVs Held under several Special Purpose Vehicles (SPVs) Ownership 33% 6% Background Around 500 senior managements and other employees shared 1/3 of the company. 30% already distributed to employees Founding families distributed 50mn shares to 500 middle managements and supervisors Considerations Employees contributed capital to build PRC factories Discount to book value Roughly more than 1000 employees own about 40% of the company, which ensures Stella’s long term sustainability

Milestones

7

International outreach Manufacturing focus

Expansion to Branding Business

1982: Established in Taiwan 1991: Commenced production in the PRC 1998: First factory in Vietnam 2010: Migrated to inland China 2012: New Indonesian production line 2013: Diversified our design and manufacturing capability into leather accessories, such as handbags 2014: Established footholds in the Philippines and Bangladesh 2017: Built dedicated sports footwear factory in Vietnam and commenced 2nd phrase in 2018 2006: Launched Branding business under own brand, Stella Luna, and

• pened first Stella Luna store in

Shanghai 2007: Introduced another own brand, What For, and opened its first store in Shanghai 2008: Opened 100th Stella Luna store 2009: A global fashion brand – Stella Luna opened first non-East Asia store in Dubai 2012: Opened first Stella Luna store in Paris 2013: Opened first What For store in Paris 2016: Continued overseas expansion to leading department stores such as Lane Crawford and Barneys NY 2019: Concluded smooth management succession of the Group Chairman and CEO on 1 Jan 2019

FINANCIAL SUMMARY

Financial Performance

9

For the year ended 31 December US$ mn 2018 2019 (audited) (audited) Change Revenue 1,588.6 1,544.8

• 2.8%

Gross Profit 277.1 293.6 6.0% EBIT 67.9 105.5 55.4% Net Profit 62.2 95.9 54.2% EPS (US¢) 8.3 12.1 45.8%

………………………………………………………………………………………………………………………………………………………

Excluding one-off non-recurring items in 2019: US$21.1 million (2018: US$42.9 million) Adjusted EBIT 110.8 126.6 14.3% Adjusted Net Profit 105.1 117.0 11.3%

Healthy Financial Position

10 For the year end 31 December US$ mn 2018 2019 (audited) (audited) Change Cash and cash equivalents

63.0 68.1 8.1%

Inventory

170.5 173.1 1.5%

Trade receivables (*)

345.3 306.3

• 11.3%

Other receivables

123.0 112.2

• 8.8%

Trade and other payables

108.0 122.8 13.7%

Current assets

702.5 659.9

• 6.1%

Non-current assets

464.0 473.5 2.0%

Current liabilities

216.8 166.7

• 23.1%

Non-current liabilities

2.9 7.5 158.6%

Net assets

949.8 959.2 1.0%

Quick ratio

2.5 2.9 16.0%

Current ratio

3.2 4.0 25.0%

Return on invested capital(#)

12.4% 14.3% 15.3%

(*) Include associates (#) Adjusted Operating Profit after tax divided by invested capital)

Operating Margins

11

21.0% 18.5% 18.2% 17.4% 19.0% 9.5% 7.8% 8.1% 9.6% 11.1% 7.2% 5.2% 5.2% 7.0% 8.2% 6.8% 5.1% 5.0% 6.6% 7.6% 2.0% 7.0% 12.0% 17.0% 22.0% 27.0% 2015 2016 2017 2018 2019

Adjusted Gross Profit Margin Adjusted EBITDA Margin Adjusted EBIT Margin Adjusted Net Profit Margin

High Operating Leverage

61.1% 61.6% 10.4% 9.6% 0.6% 0.7% 2.6% 2.6% 7.9% 6.5%

0% 25% 50% 75% 100% 2018 2019

Manufacturing overhead Depreciation Subcontracting costs Direct labour Direct material

12 *Manufacturing only

Breakdown of Costs of Sale (as % of Revenue)

Summary of Cash Flow

13 For the year end 31 December US$ mn 2018 2019 (audited) (audited) Change Cash flows (used in)/ from

• perating activities

94.6 221.7 134.4%

Cash flows used in investing activities

(47.7) (66.2)

• 38.8%

Capital Expenditure

(55.7) (73.0)

• 31.1%

Others

8.0 6.8

• 15.0%

Cash flows from financing activities

(61.5) (149.6)

• 143.3%

Dividend paid

(60.8) (86.1)

• 41.6%

Bank borrowings

2.2 (62.5)

• 2940.9%

Others

(2.9) (1.0) 65.5% Net (outflow)/inflow of cash

(14.6) 5.9 140.4%

Total Dividend in 2019

14 *Based on the closing price as at 18 March 2020

Earnings per share US 11.9 cents or HK 93.2 cents Total dividend per share for the year HK 85 cents

Interim dividend Final dividend HK 40 cents HK 45 cents

Dividend payout ratio for the year 91% Dividend yield* 10%

BUSINESS REVIEW

MANUFACTURING BUSINESS

Workforce

16 China 36% Indonesia 8% Vietnam 40% Bangladesh 8% Philippines 8%

Geographic Breakdown of Total Workforce

As at 31 December 2019

Our Facilities

Guangxi

• Beiliu
• Lingshan

Hunan

• Shuangfeng
• Shaoyang Liantai
• Dongkou Selena

Guangdong

• Longchuan
• Hai Phong
• Quang Ninh
• Taiping
• Nike VN
• Surabaya
• Bay Footwear

Facility Locations Capacity by Locations

17

• Clark

Philippines China Bangladesh Vietnam Indonesia

12% 2019 2020 (plan) Coastal China Inland China Overseas

10% 12%

20% 33% 70% 55% Commercialisation Centres

Dongguan

• Selena
• Simona
• Stella
• NPCC
• UAPCC

Labour Cost Index 2020

18

DG Inland China Indonesia Vietnam Bangladesh Phillippines

Labour Cost Index

100 52 44 38 33 20

World’s Leading Footwear Brand Customers

Our client base includes well-known global fashion sports, casual and high-fashion footwear brands

19

Fashion Casual Fashion Sports

Stable Geographic Breakdown

20

2018 Revenue

US$1,588.6 mn

2019 Revenue

US$1,544.8 mn

North America 51.1% Europe 29.2% PRC (inc. HK) 10.0% Asia (ex. PRC) 6.4% Other 3.3% North America 51.2% Europe 27.6% PRC (inc. HK) 12.1% Asia (ex. PRC) 6.3% Other 2.8%

Breakdown of Manufacturing Revenue by Product Category

21

2018 2019 Casual 25.6% Fashion 38.0%

Stella Brands 1.3%

Sports 35.1% Casual 29.3% Fashion 36.2%

Stella Brand 1.8%

Sports 32.7%

Stable Quantity & ASP

22

ASP Quantity

• Robust ordering

for our fashion sports footwear was offset by the decline in casual footwear resulted from the management of product mix and customer mix

• Stable overall

ASP despite changes in our product mix and customer mix 42.7 53.3 52.6 50.8 50.8 53.1 58.2 52.9 56.6 60.2 59.4 20 40 60 80 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (mn pairs) 22.6 23.2 27.1 28.6 28.3 29.6 29.3 28.1 26.7 25.8 25.8 10 20 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (US$/pair)

CAGR = 3.4% CAGR = 1.3%

BUSINESS REVIEW

BRANDING BUSINESS

Our Retail Brand Positioning: Affordable Luxury

24

Basic Classic Modern Fashion Luxury

(US$400+)

Premium

(US$121-400)

Mid-price

(US$51-120)

Value

(below US$50)

Contemporary Higher End

MEDIA EXPOSURE

INTERNATIONAL CELEBRITY

Kacey Musgraves, American singer, songwriter, attended 'The Kacey Musgraves Christmas Show' screening Nicole Williams, Canadian model, attended the Roc Nation Brunch Heidi Klum, German actress, model, attended the amfAR New York Gala

MEDIA EXPOSURE

INTERNATIONAL BLOGGER

26

Brittany Xavier , fashion influencer Olivia Perez , fashion influencer Dani Song, fashion influencer

MEDIA EXPOSURE

ASIA CELEBRITY

27

Liu Wen(刘雯), Chinese super model Dilraba Dilmurat(迪丽热巴), Chinese actress Tang Wei(汤唯), Chinese actress

MEDIA EXPOSURE

ASIA CELEBRITY

28

Chris Lee(李宇春), Chinese singer,actress Jackson(易烊千玺), Chinese singer,dancer,actress Xiao Zhan(肖战), Chinese singer,actror

MEDIA EXPOSURE

INTERNATIONAL MAGAZINE

29

Harper’s Bazaar Spain

• Aug. Issue 2019

Harper’s Bazaar Spain

• Sept. Issue 2019

MEDIA EXPOSURE

INTERNATIONAL MAGAZINE

30

Vogue Russia

• Aug. Issue 2019

Vogue Spain

• Aug. Issue 2019

OUTLOOK

Lateral Expansion – Handbags and Leather goods

• Has been ramping-up quality handbags and leather goods

manufacturing capacity and capability outside of the listed group

• Ready to integrate it into the listed group in 2020 while

demand from existing customers of shoe-making business for leather goods continues to grow

• Consideration of US$10 million
• Will realise synergies between the leather goods business

and our shoe-making business

32

Impact of COVID-19 Virus Outbreak

• 70% of production capacity outside of China which has no CNY

break and work as normal

• Only 30% of production capacity in China in 2020
• No factory in Hubei province
• Return rate of workers on average exceeded 95% in the weeks

following the first day of work resumption after CNY

• 1Q20 is low season for the Group

33

Challenges and Opportunities

34

• Covid-19 virus outbreak
• International trade policies

(e.g. US–China trade tensions, FTAs)

• Rising labour costs
• Speed to market – supply chain flexibility
• Further penetration of online shopping
• Ongoing consolidation among footwear

brands

• Counter-party risks

Challenges

• Pent up demand after COVID-19 virus epidemic is

under control

• Positive currency movements (e.g. strong US dollar)
• “Sneakerisation” trend of high fashion brands
• Brands DTC trend prevailing
• Free trade agreement between Vietnam and EU
• Priority for 2020: Operational Stability

to be achieved by:

1. Optimise margins by strictly controlling production cost and re-allocating production of orders 2. Further diversification of manufacturing base from China to S.E. Asia 3. Ongoing improvement in operating efficiency 4. Enhancing product mix and customer mix 5. Diversification of supply chain

• We will leverage our strong fundamentals:
• Versatile capabilities in footwear manufacturing
• Agility – speed to market
• High adaptability and flexibility
• Diversified production base
• Strong financial position with net cash
• Broad customer base

Opportunities and Strategies

SUPPLEMENTARY MATERIALS

World Premium Footwear Market – Our Target Market

36

Shoe Industry and Markets in Western Europe and Brazil

(2018, million pairs)

m pairs/ USD Production Export price

(leather only) (USD per pair)

Italy 184 74 France 21 74 Spain 100 60 Portugal 80 34 Germany 44 41 Great Britain 5 30 Brazil 16 24 Stella 60 26 STELLA’s addressable market size: about 500 million pairs

Source: i)2019 Yearbook, Portuguese Footwear, Components and Leather Goods Manufacturers’ Association ii) Sectoral Report 2018, Brazilian Footwear Industries Association, Abicalcados

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