Final Results

To: Business Editor 7th March 2013

For immediate release

The following announcement was issued today to a Regulatory Information Service approved by the Financial Services Authority in the United Kingdom.

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED

2012 PRELIMINARY ANNOUNCEMENT OF RESULTS

Highlights

·; Strong trading performances in Hong Kong and Indonesia

·; Reported earnings decline after reversal of certain income incorrectly accrued in Malaysia in prior years

·; Adjusted underlying profit up 13% to US$506 million

·; Full-year dividend up 10%

"Good performances were seen in many of the Group's operations in 2012, although the reported underlying profit was affected by the reversal of supplier income in Giant Malaysia. While trading conditions remain challenging in some areas, Dairy Farm's prospects for 2013 are underpinned by its market leading businesses and strong financial position."

Simon Keswick, Chairman

7th March 2013

Results

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED

PRELIMINARY ANNOUNCEMENT OF RESULTS

FOR THE YEAR ENDED 31ST DECEMBER 2012

OVERVIEW

Dairy Farm's businesses have continued to trade well in 2012, despite increased competition and a more difficult economic environment in certain markets.

PERFORMANCE

Sales, including 100% of associates and joint ventures, increased by 10% to US$11.5 billion in 2012. Underlying profit for the year was US$447 million compared with US$474 million in 2011. The 2012 figure reflects the reversal from underlying profit of US$59 million of supplier income in Malaysia that had been incorrectly recognized over the past few years. Adjusted underlying profit, which excludes the effects of the reversed supplier income, rose from US$450 million in 2011 to US$506 million in 2012, an increase of 13%. Underlying earnings per share were US¢33.14, a decrease of 6%, or if the effect of the reversal of the supplier income is excluded, US¢37.48, an increase of 13%.

The profit attributable to shareholders in 2012, after taking into consideration the effect of the reversal, was US$450 million, including a non-trading gain of US$3 million arising mainly from the disposal of retail properties in Singapore. The comparable results in 2011 benefited from a non-trading gain of US$10 million.

In Hong Kong, Mannings health and beauty stores delivered another impressive result and Wellcome supermarkets traded well. IKEA in both Hong Kong and Taiwan also reported good growth. The supermarket and hypermarket businesses in Malaysia faced challenging market conditions, while the Guardian health and beauty chain traded satisfactorily. In Indonesia, hypermarkets and supermarkets continued to perform well, as did the health and beauty business. Operating results from Singapore were slightly below last year in the face of increased costs and sluggish economic conditions. Our restaurant associate, Maxim's delivered another strong set of results. Of our new businesses, the supermarkets in Cambodia are trading well while progress is being made in the Philippines.

The Group's financial position remains healthy with net cash at the end of 2012 up US$55 million at US$521 million. This increase includes the net proceeds of US$139 million arising from the placement of shares in PT Hero, and is after allowing for higher dividends, capital expenditure of US$358 million for organic growth of the business, and US$144 million for investments.

The Board is recommending a final dividend of US¢16.50 per share, bringing the total ordinary dividend for 2012 to US¢23.00 per share, up 10%.

BUSINESS DEVELOPMENTS

In 2012, Dairy Farm delivered healthy like-for-like sales growth in most of its major businesses and continued its expansion with new store openings. Complementing this organic growth, new markets were entered with acquisitions in Cambodia and the Philippines. These acquisitions establish platforms for growth alongside respected partners in developing economies. The Group now has over 5,600 outlets in 12 territories.

The construction of the fifth IKEA store in Tai Chung, Taiwan is progressing well and is expected to open later in 2013. PT Hero has also been awarded the franchise rights to operate IKEA stores in Indonesia, and plans to open the first store in 2014.

Maxim's continued to expand its Starbucks, Japanese restaurant and cake shop chains in Hong Kong, while in mainland China its first Ippudo Ramen restaurant was opened in Shanghai. Maxim's has also been granted the rights to operate Starbucks stores in Vietnam, and the first store opened in February 2013.

In November, the Group reduced its interest in PT Hero from 94% to 81% through a market placement designed to enhance the liquidity of the shares.

Recognizing the current scale of the Group's operations and the increasing complexity of the business environment, a restructuring of the management responsibilities within the organization has been undertaken to prepare the businesses for further growth.

Dairy Farm is continuing to strengthen the appeal of its brands to consumers across Asia. The Group is expanding the sale of corporate brand products to broaden customer choice and is enhancing existing stores to make them more attractive. Greater value will be delivered through improved operating efficiencies, including business processes and systems, as well as through investment in supply chain management that will improve productivity and support growth.

PEOPLE

Dairy Farm's good performance in 2012 reflects the hard work and dedication of our employees. On behalf of the Board, I would like to thank them for their efforts and wish them well in the year ahead.

Michael Kok retired as Group Chief Executive at the end of December 2012 after six years in the role. On behalf of the Board, I would like to record our appreciation and to thank Michael for his valuable contributions to the Group. He remains as a non-executive Director. We welcome his successor, Graham Allan, who joined the Board as Group Chief Executive on 1st January 2013. Also at the end of December, Ron Floto retired as a Director of the Company and I would like to thank him for his contribution to the Group. Lord Sassoon was appointed as a Director on 23rd January 2013.

I will be stepping down as Chairman of the Company after the Annual General Meeting on 15th May 2013. I will remain as a non-executive Director. I am pleased to advise that Ben Keswick will be succeeding me as Chairman.

PROSPECTS

Good performances were seen in many of the Group's operations in 2012, although the reported underlying profit was affected by the reversal of supplier income in Giant Malaysia. While trading conditions remain challenging in some areas, Dairy Farm's prospects for 2013 are underpinned by its market leading businesses and strong financial position.

Simon Keswick

Chairman

7th March 2013

GROUP CHIEF EXECUTIVE'S REVIEW

BUSINESS MODEL

Dairy Farm is a leading Asian retailer operating supermarkets, hypermarkets, health and beauty stores, convenience stores and home furnishings stores under widely recognized brands. We aim to provide to Asian consumers the benefits of modern retailing. The Group operates several formats in most markets to satisfy different market segments and customer needs. The Group also has a 50% interest in Maxim's, a leading restaurant group in Hong Kong.

The Group has strong market positions and cash generative operations in several Asian markets, and it continues to invest to strengthen these businesses. In addition to achieving growth in these established markets, it is the Group's strategy to seek new investment opportunities in current and new markets in Asia. This approach builds upon the Group's knowledge and expertise, as well as providing a good balance of risk and return. By combining our investment approach with a strong balance sheet, we aim to achieve consistent and long-term earnings growth.

2012 PERFORMANCE

Dairy Farm again achieved good trading performances in 2012 with sales, including 100% of associates and joint ventures, increasing by 10% to US$11.5 billion and improved earnings in many of our major operating units.

The reported underlying profit for 2012 is US$447 million, compared with US$474 million in 2011. The 2012 figure reflects the reversal from underlying profit of US$59 million of supplier income in Malaysia that had been incorrectly recognized over the past few years. If the underlying profit is adjusted to exclude the effects of the reversed supplier income, it would have risen from US$450 million in 2011 to US$506 million in 2012, an increase of 13%.

A thorough investigation of the supplier income balances in the Group's Malaysian hypermarket and supermarket operations has been undertaken by the Company's internal audit and legal departments supported by PricewaterhouseCoopers. It has been established that a proportion of the supplier income had been incorrectly recognized over a number of years, and that the US$59 million reversal is the full adjustment necessary to the financial statements. Steps have been taken to address the control shortfalls in the Malaysian operation, and management changes have been implemented. A review of the Group's other principal operations by the internal audit department has not identified any other similar control issues. The incorrect recognition of supplier income is a non-cash item.

DEVELOPMENTS

We continue to implement initiatives to enhance the appeal of our brands and our stores to customers. This is complemented by the ongoing review and improvement of our operating efficiencies.

A number of important developments took place during the year:

·; We added a net 278 stores to reach a total of 5,677.

·; We acquired a 70% stake in the Lucky supermarket business in Cambodia and a 50% stake in Rustan's supermarkets and hypermarkets in the Philippines.

·; In Taiwan, work commenced on the fifth IKEA store in Tai Chung that will open in late 2013.

·; In mainland China, we continued to expand our 7-Eleven convenience stores chain and progress was made in the development of Mannings health and beauty business.

·; In Malaysia, we opened four new Giant hypermarkets, bringing the total to 75 stores.

·; In Indonesia, we opened 97 new stores, including seven hypermarkets, across our different formats. PT Hero were also granted the franchise rights to operate IKEA stores in the country. We have secured a site and commenced construction of the first store, which we plan to open in 2014.

·; In Vietnam, 11 Guardian health and beauty stores were added, bringing the total outlets to 16 in addition to one hypermarket in the country.

·; A subsidiary of our restaurant associate, Maxim's, has been granted the master franchise rights to operate Starbucks stores in Vietnam, with the first store opening in February 2013.

REGIONAL REVIEW

NORTH ASIA

Hong Kong

The businesses in Hong Kong continued to perform strongly with profit growth in all banners. Mannings health and beauty stores in particular achieved another excellent result. We now have eight 'Mannings Plus' stores offering free health consultation services, and the first 'Mannings Baby' store was opened during the year.

Wellcome supermarkets also performed well, while the 7-Eleven convenience stores recorded solid growth in sales and profit in a highly competitive market. IKEA reported another fine result despite a decline in secondary market property transactions.

Maxim's delivered excellent results in 2012. Strong sales growth more than compensated for increases in staff costs following the introduction of a minimum wage in Hong Kong. Its Chinese restaurants performed well, and its Japanese restaurant chains reported strong growth. Maxim's also achieved another record year of mooncake sales with encouraging growth in the Mainland market.

Macau

Both 7-Eleven and Mannings in Macau improved both sales and profit.

Mainland China

With a continuing focus on its ready-to-eat food business, 7-Eleven Southern China reported improved results. Mannings made progress in rationalizing its store network and in enhancing its customer appeal through a broader product range and an improved customer experience.

Maxim's opened its first Ippudo Ramen store in Shanghai, and added two Genki Sushi outlets in Shenzhen and Guangzhou. It expanded its cake shops chain in Southern China to 104 stores at the end of 2012.

Taiwan

Wellcome supermarkets made some gains in a competitive market with modest increases in sales and profit, and it ended the year with 273 stores. IKEA had another good year, and its fifth store in Tai Chung is progressing well for opening in late 2013.

SOUTH ASIA

Singapore

Cold Storage supermarkets continued to perform well in 2012 and made gains in sales and profit. Shop N Save supermarkets maintained its own position in a crowded market segment with encouraging signs from several remodeled stores. The Giant hypermarkets had a challenging year, due in part to mall renovations affecting key stores.

7-Eleven experienced a difficult year with increases in operating costs, while Guardian traded satisfactorily.

India

The results from Foodworld supermarkets were affected by difficult trading conditions and a general slowdown in the sector. The Health and Glow health and beauty stores enjoyed a strong year for both sales and profit.

Cambodia

In March 2012, we entered Cambodia through the acquisition of a 70% interest in the Lucky supermarket chain, which operates six supermarkets and nine fast food outlets in the country. This joint venture, with a respected local partner, offers the Group good opportunities for growth. So far, the business is performing well and progress has been made in improving the supply chain.

The Philippines

In May 2012 we entered the Philippines by acquiring a 50% interest in Rustan Supercenters, which has ten hypermarkets and 22 supermarkets. Steps are being taken to align the business with Group standards, strengthen operations and improve the consumer offer.

EAST ASIA

Malaysia

In Malaysia, the Giant and Cold Storage hypermarket and supermarket operations had a difficult trading year, with profits affected by fragile consumer confidence, rapid expansion of the industry store base and aggressive pricing from competitors. Four Giant hypermarkets were opened bringing the year-end total to 75 hypermarkets and 73 supermarkets.

Guardian, the country's leading health and beauty chain, again recorded solid earnings growth in 2012 and the total number of stores reached a milestone of 400.

Brunei

Giant hypermarket and supermarket operations in Brunei suffered a decline in sales in a difficult market. The Guardian chain performed satisfactorily.

Indonesia

The Giant and Hero hypermarket and supermarket operations in Indonesia have continued to perform well. Seven new hypermarkets were opened in the year to bring the total to 46 stores in the country. Guardian and our convenience store brand, Starmart, also recorded encouraging sales and profit growth. Weakness in the Indonesian rupiah, however, affected the contribution to the Group's reported results.

PT Hero has been awarded the exclusive franchise right to operate IKEA stores in Indonesia, and the first store is targeted to open in the second half of 2014.

In November, the Group reduced its interest in PT Hero from 94% to 81% through a market placement, which was designed to broaden the shareholder base and enhance the liquidity of the shares through an increased free float. Net proceeds received from the market placement were US$139 million.

Vietnam

The first Giant hypermarket traded below expectations as a result of lower occupancy of the mall. Eleven Guardian health and beauty stores were added during the year, making a total of 16 outlets at year end.

THE YEAR AHEAD

While we are grappling with specific challenges in some key markets, the Group is focused on enhancing brand appeal and developing our operations across the board to sustain sales and profit growth. Strengthening customer loyalty to our brands, improving shopper experience and delivering greater value to customers are all central elements of our growth strategy.

To support these strategic pillars and to bring a more cohesive approach to our different formats, we have reorganized the organization structure across the different territories into the Food businesses comprising the supermarket, hypermarket and convenience stores; the Health and Beauty businesses; and the Home Furnishings businesses. Cost pressures in almost all markets also demand that we complement these consumer based strategies with a relentless focus on operating efficiencies in all of our businesses.

Dairy Farm will continue to drive organic growth across different formats in existing markets and to pursue acquisition opportunities which enhance our unique portfolio of brands and businesses. The Group has a proud history as a pioneer in Asian retailing and we plan to enhance that reputation through an ongoing commitment to innovation and to expanding our footprint across the region.

Like any retail business, Dairy Farm depends critically on the passion, commitment and hard work of its people. Our people bring our brands to life and deliver the right experience to our customers. Our good trading performances in 2012 were once again down to them. I want to thank and recognize them for their efforts in ensuring another successful year for the Group.

Graham Allan

Group Chief Executive

7th March 2013