ANNUAL REPORT 2004 I 2005

H O L D I N G S L T D

Co. Reg. No. 197301125N6B Orange Grove Road Singapore 258332 www.fjbenjamin.com tel: 65 6737 0155 fax: 65 6733 7398

CONTENTS

1 Chairman’s Review

4 Corporate Structure

5 Corporate Directory

6 Board of Directors

7 Profile and Information ofDirectors & Senior Management

9 Group 5-year Financial Summary

12 Operations Review- Fashion lifestyle- Timepieces

29 Corporate Governance

37 Financial Statements

78 Statistics of Shareholdings

79 Statistics of Warrantholdings

80 Notice of Annual General Meeting

C H A I R M A N ’ S r e v i e w

Dear Shareholders

F J Benjamin Holdings Limited and its subsidiaries hada very satisfying performance for the financial yearended 30 June 2005. Our turnover rose from S$116.6million in the previous financial year to S$145.7 million,an increase of 25%. This improvement was largely aresult of the organic growth of the fashion and timepiecebrands carried by the Group. Profit before tax increased171% from S$2.1 million to S$5.7 million in the yearto 30 June 2005 as a result of a small improvementin gross margin, and a more modest 17% increase inoperating costs. Profit after tax of S$4.3 millionrepresented 112% improvement over the prior year’sS$2.0 million.

Our Balance Sheet remains sound with gearing still alow 0.3 times. Total cash and deposits rose duringthe year from S$11.2 million to S$14.8 million againsttotal borrowings of S$39.7 million.

DIVIDEND

As a result of the strong performance and improvedcash position, I am pleased to inform you that the Boardof Directors has recommended a first and final dividendof 1.1 cents per ordinary share, less 20 per cent tax,amounting to S$2.5 million. This represents a 47%increase over the dividend of 0.75 cents per ordinaryshare paid for the previous financial year.

pg 1

DEVELOPMENTS

We continue to focus on our three core segments – retail/distribution of fashion productswhich represents 50% of our turnover; retail/distribution of timepieces representing 46%of our turnover; and the development of our Licensing Division currently at 4% of our turnover.

FASHION LIFESTYLE

The GUESS? brand continues to be strong. We achieved a 28% growth in sales on a Groupbasis compared to last year.

GUESS? recently introduced a new concept store GUESS? Accessory which was launchedwith great success, and more stores are planned for 2006 and 2007.

La Senza, which is a concept of ladies’ lingerie and outerwear from Canada, was launchedtwo years ago, and today we operate seven stores in the region. We are planning to growthis business not only in Singapore, Malaysia and Indonesia, but also in Thailand, Australiaand possibly Vietnam.

The RAOUL brand, which was conceptualized and developed by the Group through itsLicensing Division, has established successfully its ladies’ and men’s executive and casualshirts and ties. Currently we operate and franchise 16 stores in Southeast Asia and theMiddle East, and there are plans for expansion into Thailand, Australia and possibly India.

Our Licensing business for Baby GUESS?/GUESS? Kids continues to grow with sales thisyear to Vietnam, and to India in the future.

We are presently developing an affordable collection of children’s apparel called “Paint8”, which is designed in-house and produced primarily in China. We currently have onestore in Malaysia, two in Indonesia through our associated company and plan to open astore for this brand in Singapore in 2006. In the longer term, our strategy is to introducethis brand to department store chains in the region.

TIMEPIECES

Our timepiece business had an exceptional year with sales in the region growing 33%.We made good in-roads into North Asia – China and Taipei through our Hong Kong office,and we are confident that our timepiece business will expand, particularly the Girard-Perregaux and Guess? brands, each of which had grown significantly in the past year.

New brands such as Nautica and Marc Ecko have been added. Together with JeanRichard,Bell & Ross, Victorinox Swiss Army and Nike timepieces, the division which has both high-end as well as mid-level lifestyle ranges has good potential to grow.

With its wide variety of lifestyle fashion brands, the Group has developed its own retailconcept called “Watch Zone”, with eight stores opening over the last year - one in HongKong, one in Malaysia and six stores through our associated company in Indonesia. Weare confident this concept has great potential and can be expanded further in the region.

pg 2 LIFESTYLE ENTERTAINMENT

In the light of the success of Devils Bar in the Orchard Road area of Singapore, we haverecently entered into another venture with our long term partner, Mr Dennis Foo, and leadingbusinessman Mr Jopie Ong to refurbish the St James Power Station into an integratedmulti-concept entertainment centre. This is scheduled to be opened in the third quarterof 2006.

Operating conditions at our two One United Café outlets in Chengdu, China, a joint venturewith Mr Peter Lim, have proved to be more difficult than originally anticipated, incurringlosses for the year. Activities at both outlets have been scaled down to minimize losses,and steps are being taken to change the style of business to accommodate the locallifestyle of Chengdu. In July 2005, our first One United Café opened in Jakarta, and earlyindications are encouraging. It is likely that more outlets will be opened in Indonesia.

PROSPECTS

The Group will continue to focus on its core business of fashion and timepieces retail/distribution,as well as in the development of its licensing business. Our growth will come from new storeopenings, as well as from sales through our distribution channels. We will also expand ourbusiness in Australia and Thailand with two recently established joint venture companies.The Group will continue to seek new brands which are scalable and relevant to our markets.

THANKS

I would like to take this opportunity to thank our investors, business partners, managementand staff as well as my fellow directors for their wise counsel. The Group has made aturnaround, and we are looking prudently at growing our business with the view to enhancingshareholder value. Provided there are no unforeseen circumstances, I am confident thatwe will continue our path of growth and profitability.

FRANK BENJAMINChairman and Chief Executive Officer, F J Benjamin Holdings Ltd

chairman’s review (cont’d)

pg 3

SOUTHEASTASIA

NORTH ASIA

AUSTRALIA

USA

100% F.J.B. Investment¢

100% Benmark*

100% F J Benjamin (Indochina)*

100% F J Benjamin Concepts¢

100% Manchester United(S.E.A.)•

50% V.B. Fashions•

100% F J Benjamin (M)•Manchester United (Malaysia)•

PT Meteor Prima SejatiGroup of Companies•

49% F J Benjamin Concepts (Thailand)•(79% Voting rights)

100% F J Benjamin (H.K.)•

100% BMI (Hong Kong)*

100% Ferro Designs¢

100% F J Benjamin (Taiwan)•

100% FJ Benjamin(Australia)¢

100% F.J. Benjamin Fashions(U.S.)*

SINGAPORE

MALAYSIA

INDONESIA

THAILAND

HONG KONG

TAIWAN

51% F J Benjamin Concepts (Aust)•

51% F J Benjamin (Aust) Partnership•

Fashion DivisionTimepiece DivisionHome FurnishingsDivisionLicensing DivisionBusinessDevelopmentDivision

• Active¢ Investment Holdings

* Dormant

pg 5C O R P O R A T E d i r e c t o r y

DIRECTORS

Mr Frank Benjamin Chairman and Chief Executive OfficerMr Keith Tay Ah Kee Non-executive Deputy ChairmanMr Eli Manasseh (Nash) Benjamin Deputy Chief Executive OfficerMr Douglas Jackie Benjamin Executive DirectorMs Karen Chong Mee Keng Executive Director (appointed on 1 April 2005)Mr Mervyn Lim Sing Hok Executive Director (resigned on 31 March 2005)Mr Joseph Grimberg Independent DirectorMr Reggie Thein Independent DirectorMs Wong Ai Fong Independent DirectorMr Timothy Chia Chee Ming Independent Director (appointed on 1 July 2005)

REGISTERED OFFICE

F J Benjamin Building6B Orange Grove Road Singapore 258332Tel: (65) 6737 0155 Fax: (65) 6733 7398 Email: enquiry@fjb.com.sg Website: www.fjbenjamin.com

JOINT COMPANY SECRETARIES

Ms Karen Chong Mee Keng (appointed on 1 April 2005)Mr Dilhan Pillay SandrasegaraMr Mervyn Lim Sing Hok (resigned on 31 March 2005)

SHARE REGISTRAR

Lim Associates (Pte) Ltd10 Collyer Quay #19-08 Ocean Building Singapore 049315

AUDITORS

Ernst & Young10 Collyer Quay #21-01 Ocean Building Singapore 049315Partner: Mr Liew Choon Wai (since financial year 2003)

SOLICITORS

Wong PartnershipOne George Street #20-01 Singapore 049145

PRINCIPAL BANKERS

DBS Bank Ltd.HSBC Bank Malaysia BerhadMalayan Banking BerhadOversea-Chinese Banking Corporation Ltd

pg 4 C O R P O R A T E s t r u c t u r eas at 15 September 2005

100% F J Benjamin (Singapore)•

100% B.M.I*

50% Manchester United Food& Beverages (Asia)•

48% FJD¢

50% Devils Bar•

100%

100%

100% Citybars•

F J BENJAMINHOLDINGS LTD

B O A R D O F d i r e c t o r s

pg 6

1 MR FRANK BENJAMINChairman and Chief Executive Officer

2 MR KEITH TAY AH KEENon-executive Deputy Chairman

3 MR ELI MANASSEH (NASH) BENJAMINDeputy Chief Executive Officer

4 MR JOSEPH GRIMBERG

5 MR REGGIE THEIN

6 MR DOUGLAS JACKIE BENJAMIN

7 MS KAREN CHONG MEE KENG

8 MS WONG AI FONG

9 MR TIMOTHY CHIA CHEE MING

BOARD OF DIRECTORS

MR FRANK BENJAMIN

Date of appointment as Director : 5 June 1973Date of last re-election : 27 October 2004Nature of appointment : ExecutiveBoard committees served on : Executive Committee (Chairman since 13 August 2001)

Nominating Committee (Member since 25 September 2002)

Mr Frank Benjamin is the Chairman and Chief Executive Officer of the Group. He has more than 40 years of experiencein the retail and distribution business of fashion and related accessories and is the founder of the Group. He has beeninstrumental in the development and growth of the Group, having headed the management of the Group since itsinception. Currently, he oversees the general management of the Group, is involved in the formulation of long termcorporate strategies and policies of the Group as well as maintains a close relationship with all the Group’s principals.

MR KEITH TAY AH KEE

Date of appointment as Director : 1 August 1996Date of last re-election : 7 November 2002Nature of appointment : Non-executiveBoard committees served on : Executive Committee (Member since 13 August 2001)

Remuneration Committee (Member since 25 September 2002)

Mr Keith Tay is the Non-executive Deputy Chairman of the Group. He was Chairman and Managing Partner of KPMGPeat Marwick, from 1984 to 1993. He is the Vice Chairman of the Governing Council of The Singapore Institute ofDirectors. He also serves on the board of the Singapore International Chamber of Commerce, of which he was Chairmanfrom 1995 to 1997. He is also Chairman of Sterling Coleman Capital Limited and Aviva Limited.

He sits on the boards of several public companies, including Singapore Reinsurance Corporation Ltd, Singapore PostLimited and Singapore Power Limited.

MR ELI MANASSEH (NASH) BENJAMIN

Date of appointment as Director : 26 July 1973Date of last re-election : 27 October 2004Nature of appointment : ExecutiveBoard committee served on : Executive Committee (Member since 13 August 2001)

Mr Eli Manasseh (Nash) Benjamin is the Deputy Chief Executive Officer of the Group, and has been with the Groupsince 1968. He has more than 30 years of experience in the retail and distribution business of fashion apparel,timepieces and related accessories. He works closely with Mr Frank Benjamin in formulating long-term corporatestrategies and policies of the Group, maintains a close relationship with all the Group’s principals as well as looksafter the business development arm of the Group.

MR JOSEPH GRIMBERG

Date of appointment as Director : 11 January 1990Date of last re-election : 27 October 2004Nature of appointment : IndependentBoard committees served on : Audit Committee (Member since 30 June 2003)

Remuneration Committee (Member since 25 September 2002)Nominating Committee (Chairman since 25 September 2002)

Mr Joseph Grimberg was a Senior Partner of Drew & Napier prior to serving as Judicial Commissioner of the SupremeCourt of Singapore from 1987 to 1989. Upon completion of his term of office, he returned to Drew & Napier where heis currently a Senior Consultant.

He sits on the boards of Jurong Cement Limited and Hotel Properties Limited.

MR REGGIE THEIN

Date of appointment as Director : 8 July 2002Date of last re-election : 7 November 2002Nature of appointment : IndependentBoard committees served on : Audit Committee (Member since 8 July 2002 and appointed Chairman

since 30 June 2003)Remuneration Committee (Chairman since 25 September 2002)Nominating Committee (Member since 30 June 2003)

Mr Reggie Thein is a member of the Governing Council of The Singapore Institute of Directors, a Fellow of the Instituteof Chartered Accountants in England and Wales, and member of the Institute of Certified Public Accountants of Singapore.He sits on the boards of BIL International Limited, Grand Banks Yachts Limited, Guocoland Ltd, Haw Par CorporationLtd, Keppel Telecommunications & Transportation Ltd, Lindeteves-Jacoberg Ltd, MFS Technology Limited, MobileOneLtd and Pearl Energy Limited.

pg 7

PROFILE AND INFORMATION OF DIRECTORS & SENIOR MANAGEMENT

6

2

5

1

7

3

8

9

4

pg 8

pg 9G R O U P 5 - Y E A R f i n a n c i a l s u m m a r y

2001 2002 2003 2004 2005$’000 $’000 $’000 $’000 $’000

PROFIT & LOSS

Turnover 146,563 113,147 105,569 116,573 145,658

Operating Profit/(Loss) beforeBorrowing Costs and Exceptional Items (20,385) 8,695 1,373 1,928 3,603

Borrowing Costs (5,943) (3,631) (1,907) (1,287) (1,435)

Exceptional Items (15,080) 101 2,122 46 1,456

Share of Results of Associated Companies 2,807 490 237 1,426 2,099

Profit/(Loss) Before Taxation (38,601) 5,655 1,825 2,113 5,723

Profit/(Loss) After Taxation andMinority Interest (40,915) 3,100 1,517 2,021 4,289

Basic Earnings/(Loss) Per Share (cents) (20.46) 1.22 0.53 0.71 1.50

Operating Margin (%) -26% 5% 2% 2% 4%

BALANCE SHEET

Non-Current Assets 84,582 83,091 81,879 79,565 80,688

Net Current Assets/(Liabilities) (7,632) 6,430 16,203 17,143 15,789

Shareholders’ Equity 31,201 48,755 77,035 76,404 77,378

Net Debt 76,351 55,730 23,057 23,470 24,962

Return on Equity (%) -131% 6% 2% 3% 6%

Net Debt to Equity 2.45 1.14 0.30 0.31 0.32

Net Tangible Assets Per Share (cents) 15.60 17.11 27.03 26.81 27.15

PROFILE AND INFORMATION OF DIRECTORS & SENIOR MANAGEMENT

MR DOUGLAS JACKIE BENJAMIN

Date of appointment as Director : 3 November 2000Date of last re-election : 13 November 2003Nature of appointment : ExecutiveBoard committee served on : Executive Committee (Member since 25 September 2002)

Mr Douglas Benjamin is the Managing Director of F J Benjamin (Singapore) Pte Ltd. He is responsible for the Group'soperations in Singapore and oversees the Group’s Licensing Division. He graduated from the University of Kent, UnitedKingdom, with a Bachelor of Arts (Economics) degree and joined the Group upon his graduation in 1989.

MS KAREN CHONG MEE KENG

Date of appointment as Director : 1 April 2005Date of last re-election : Not applicableNature of appointment : ExecutiveBoard committee served on : Executive Committee (Member since 1 April 2005)

Ms Karen Chong is the Chief Financial Officer and Joint Company Secretary of the Group. She has been with the Groupsince 1997. She is a Fellow of the Association of Chartered Certified Accountants and a member of the Institute ofCertified Public Accountants of Singapore. Prior to joining the Group, she has worked several years in a public accountingfirm and has more than 10 years of financial and operational experience in the local and overseas retail industry.

MS WONG AI FONG

Date of appointment as Director : 3 November 2000Date of last re-election : 13 November 2003Nature of appointment : IndependentBoard committee served on : Audit Committee (Member since 30 September 2002)

Ms Wong is the Director of Communications, Asia Pacific with Nokia Pte Ltd. She was formerly the General Managerof F J Benjamin Maxcom Pte Ltd, a subsidiary of the Company between 1994 to 2000. Prior to joining the Group, shehad more than 10 years of marketing experience in the financial services and media and entertainment industries.

MR TIMOTHY CHIA CHEE MING

Date of appointment as Director : 1 July 2005Date of last re-election : Not applicableNature of appointment : IndependentBoard committee served on : None

Mr Timothy Chia is the Chairman of Gracefield Holdings Limited. He is also a member of the Board of Trustee ofSingapore Management University. He was the President of PAMA Group Inc., from 1986 to early 2005.

He sits on the board of The Hour Glass Limited, Magnecomp Precision Technology Public Co Ltd (Thailand) and MeritzSecurities Co. Ltd.

SENIOR MANAGEMENT

MR MARK KOH • General Manager – BMI Division of FJBSMr Koh joined BMI as a Sales and Marketing Manager in 1992. He was promoted to Assistant General Manger andsubsequently General Manager. Mr Koh is also a Director with F J Benjamin (Singapore) Pte Ltd. He plays a pivotalrole in growing the timepiece business in Singapore, Thailand and Indonesia.

MR QUAH KIM TIONG • Director – Benmark Division of FJBS / Carrywear BusinessMr Quah holds a Bachelor of Arts degree from the University of Singapore. He joined F J Benjamin (Singapore) Pte Ltdas Product Manager in 1982 and rose through the ranks. He is a Director of F J Benjamin (Singapore) Pte Ltd. He isresponsible for the operations of the Sheridan Bedlinen, Guess? Handbags and Manchester United.

MS ANGIE CHONG • Chief Executive Officer – F J Benjamin (M) Sdn. Bhd.Ms Chong has been involved in the business since 1994. As the CEO and Director of F J Benjamin (M) Sdn. Bhd., sheis responsible for the operations and business development in Malaysia. Ms Chong plays a lead role in building andupholding the brand’s image, as well as exploring business opportunities to expand the market. She works closelywith her team to grow the business.

MR TONY FUNG • General Manager – F J Benjamin (H.K.) Limited / F J Benjamin (Taiwan) LtdMr Fung graduated with a Master of Business Administration degree from the University of Hull in 1996. He has beenwith the Group since 1997. As the General Manager and Director of F J Benjamin (H. K.) Limited, he is responsiblefor the day-to-day running of the business and the marketing and distribution of our timepiece business in Hong Kong,China and Taiwan.

f a s h i o n l i f e s t y l e

Oliv

ier

Henry

/ M

ILK

photo

graphie

O P E R A T I O N S r e v i e w

pg 12

pg 13

VALENTINO

FJ Benjamin’s association with one of themost important designers and innovators inthe history of fashion goes back to September2001 when we entered into a joint venture torepresent the Italian label for Singapore,Malaysia and Indonesia. Our flagship store islocated at the upmarket Paragon shoppingmall in Singapore.

Another landmark in the development of thelabel in the Asia-Pacific region has beenreached with the recent signing of a lease toopen another store in Kuala Lumpur, Malaysia,in late 2005 to complement the store alreadyoperating in Jakarta.

operat ions review (cont’d)

GUESS?

GUESS? was established in 1981 and beganas a jeans company and has sincesuccessfully grown into a global lifestylebrand and now designs, markets anddistributes full collections of men’s, women’sand children’s apparel and accessories. TheFJ Benjamin Group manages and marketsGUESS? in Southeast Asia and the BabyGUESS?/GUESS? Kids license for the AsiaPacific region and in the Middle East.

Following the re-modelling of all stores inline with the new global GUESS? concept,we hosted an opening party in December2004 in Singapore. This proved to beextremely popular and with new storesopened in Singapore and Malaysia duringthe year, the Group now operates directly orthrough its associated company, a total of18 stores throughout the region with afurther four set to open in the coming year.

In April 2005, in conjunction with theSingapore Fashion Festival 2005, GUESS?held a party at top nightspot Rouge inSingapore to present the spring/summer2005 collection. This was achieved througha Hollywood superstar’s dressing roomthemed show at which the collection wasdisplayed together with GUESS? accessoriesand GUESS? Watches.

We opened our first GUESS? Accessory storein Kuala Lumpur, followed by a second atthe Raffles City shopping mall, Singapore,in March 2005. The store was created inresponse to the huge success that GUESS?accessories has experienced over the pastthree years and to date, GUESS? is the firstfashion and lifestyle brand to open a stand-alone accessory store. The store offersproducts including handbags, watches,eyewear, belts and jewellery suitable for bothmen and women. Plans are in hand for theopening of three more GUESS? Accessorystores in the region by 2006.

pg 15

pg 14

operat ions review (cont’d)

We address the needs of younger consumers through Baby GUESS?and GUESS? Kids. The Group manages a license from GUESS?Inc. to design/source and manufacture products and apparel forthese brands, and retails these lines in its own stores and throughauthorised operators in the Asia Pacific region and the Middle East.The Group has opened another store at the Paragon shopping mall,Singapore and now directly or through its associated company,operates a total of 17 Baby GUESS? and GUESS? Kids stores inSingapore, Malaysia and Indonesia.

Although it is 20 years since GUESS? Watches were introduced tothe world, they remain popular amongst young, fashion-drivenconsumers. The year was marked by the launch of several newtimepieces. Six new watches bejewelled with Swarovski crystal andyellow gold accents were successfully introduced for Valentine’sDay. The new “Charmed Life” watch for ladies also featuredSwarovski crystal and a polished silver case. Finally, in responseto the “Timeless Beauty International Model Search”, a contestorganized by GUESS? Inc, the winning design, known as “TimelessBeauty”, was launched.

pg 17

pg 16

RAOUL

FJ Benjamin’s own men’s lifestyle brand RAOUL was created to straddle thecorporate boardroom and the social circuit. Since its launch three yearsago, its portfolio has grown rapidly from basic shirts, ties and cufflinks toa range of merchandise that includes small leather goods and shoes.

In response to customer demand, FJ Benjamin expanded the RAOUL brandto include a ladies concept. We opened two RAOUL stores for ladies inSingapore in May 2005, at Suntec City Mall and Millenia Walk, both ofwhich have been well received by our customers. A third will open itsdoors at the Paragon shopping mall in Singapore in late 2005. Althoughhoused next to the men’s stores, they have their own separate identities.

RAOUL Ladies carries primarily shirts with defined cuts and styles, knitsand accessories such as cufflinks, jewellery and shawls. The shirt designsare not only functional but also highly versatile to ensure they can bestyled easily with mix-and-match bottoms.

One of the year’s highlights was RAOUL’s first ever party held in Singaporewith 600 guests. The objectives of the event were to launch the men’sfall/winter 2005 collection and to introduce the ladies’ line.

As part of its marketing strategy, RAOUL entered the “Vote My FavouriteBus Ad Contest” with ten other leading brands. Although it did not win thecontest, which simply involved advertising the brand on Singapore’s publicbuses, it nevertheless raised RAOUL’s profile amongst the general population.

During the year, RAOUL has added a further three stores, including oneat the Paragon shopping mall in the heart of Orchard Road. As at 30 June2005, there were a total of seven concept stores in Singapore, four inMalaysia and four in Indonesia operated through our associated company.

The RAOUL brand is on the verge of further expansion following the signingof a joint venture agreement in Thailand to open retail stores in Bangkokin July 2006. Furthermore, the Group has a franchise arrangement witha third party in the Middle East and a new store has already opened inBahrain. A second is planned for the soon to be completed Mall of theEmirates in Dubai. We are actively seeking further franchise partners withthe aim of transforming RAOUL into a truly global brand.

operat ions review (cont’d)

pg 19

pg 18

pg 21

LA SENZA

Canada’s leading fashion lingerie retailer La Senzaopened its first stores in Indonesia and Malaysiain 2003, followed shortly afterwards by a third storein Suntec City Mall in Singapore. The Groupattributes the success of the brand to the extensivecollection of inner and outer garments offered atattractive prices.

La Senza offers a full range of lingerie, from brasand panties to teddies, slips, daywear and coordinatedaccessories, all under the La Senza label. Moreimportantly, the label is supported globally by award-winning customer service in stores that have beencarefully designed to please customers.

In June 2005, La Senza launched La Senza Candy,a line that has a “lingerie meets fashion” feel. Thisline, which has proved to be popular with ourcustomers, comprises a full range of cotton lingeriein rainbow colours and prints, coupled with sequinsand lace.

With strong sales growth experienced in its existingstores, plans are well advanced to open new storesin Thailand, Indonesia and also in Australia followingthe recent signing of a joint venture agreement withwell established Australian retail professionals.

PAINT 8

Adding to our stable of established brands, Paint 8 was createdto fulfil the ever-increasing demand for kids clothing where itis affordable and fashionable.

Leveraging off our expertise in sourcing and designing, we havedesigned high quality kids clothing to be both fun and yetfunctional. At the same time it is also important to offer valuefor money. We opened our first outlet in Kuala Lumpur inOctober 2004, followed by two more in Indonesia through ourassociated company in December 2004. The concept has beenenthusiastically received by customers and more Paint 8 outletsare being planned for the region.

LICENSING

The Licensing Division continues to grow rapidly, contributingnot only to its performance during the year but also to theGroup’s solid reputation in the global fashion industry. Theteam designs and manufactures apparel for Baby GUESS? andGUESS? Kids in 13 countries throughout Southeast Asia,Australia and the Middle East. The division has also designedand produced clothing items and accessories for several privateretailers for their in-house brands.

The division has leveraged its experience with global brands todesign and conceptualise its own RAOUL label for both men andladies and, more recently, its new kidswear brand Paint 8. Theentire design process including choice of fabric and colour isperformed in-house in close consultation with its customers.Its highly qualified personnel oversees the entire outsourcedmanufacturing process to ensure that high quality is maintained.

operat ions review (cont’d)

pg 20

t i m e p i e c e s

pg 25

pg 24

operat ions review (cont’d)

GIRARD-PERREGAUX

The FJ Benjamin Group is the majordistributor for Girard-Perregaux whosehandcrafted timepieces are of impeccablequality and highly sought after bycollectors the world over.

Our distribution partners are vital tothe success of our brands and we arepleased to have fostered excellentbusiness relationships with thesevaluable partners. This is evident bythe first shop-in-shop concept for Girard-Perregaux which started with CortinaMillenia Walk boutique and the successof Tempus by The Hour Glass in August2004.

In celebration of leading Singaporewatch retai ler Sincere’s 50t h

Anniversary, Girard-Perregaux waschosen to par t icipate in TheWatchmaker’s Atelier Exhibition inNgee Ann City, Singapore, where afull exhibition of historical timepiecesand movement assembly sessionswere held for the public with celebratedGirard-Perregaux watchmakers present.

The year was an excellent year for theGirard-Perregaux Ladies collection ofjewellery watches, which was wellreceived. The Ladies’ Cat’s Eye modelwon two Global Awards namely Winnerof Best Ladies’ Watch in Geneva andWinner of Best Ladies’ Watch – WatchOf The Year in Japan.

Two large exhibitions for the launch ofthe Cat’s Eye were held in Hong Kongin October 2004, as well as in Taiwanin January 2005, which were wellattended by consumers, media andthe trade.

To support the growth and to improveour retail presence, the Group inJanuary 2005 took over the distributionof Girard-Perregaux watches in Taiwan,and has since been distributing Girard-Perregaux through our own subsidiarycompany in Taiwan, which has resultedin a growth of business.

JEAN RICHARD

Introduced by the Group into Asia four years ago, JeanRichard is a young anddynamic brand that symbolizes a perfect marriage in technique and aesthetics.As an independent watch manufacturing company, JeanRichard has a distinctiveedge in the world of horology and we are currently focused on developing anexcellent distribution channel for the brand. There is promising growth momentumfor JeanRichard and a potential to develop the brand within the region.

This year in Geneva, the Paramount Square was launched – a timepiecewhose strong personality reflects that of JeanRichard. Within the heart ofthis watch beats the JR1000 manufactory-crafted movement. The linearpower reserve, coupled with an automatic-winding movement and 48 hourpower reserve, showcases the brand’s technical independence and competence.

pg 26

operat ions review (cont’d)

BELL & ROSS

Bell & Ross is a unique brand that hasbecome a benchmark in the field of high-quality precision watchmaking and anexclusive statement in the universe ofprofessional users. Its timepieces are knownfor their four basic principles of readability,performance, precision and water-resistance.

In this year’s Basel Fair, the BR01 Instrumentmade waves with its avant-garde techniquesand practical nature. With a strong steel casebuilt with modularity in mind, the wristwatchcan easily be transformed into a desktopclock or even a pendant watch. This is thusthe perfect realization of the brand’sphilosophy: where function creates form.

LIFESTYLE TIMEPIECES

In addition to the luxury brands Girard-Perregaux, JeanRichard and Bell & Ross, theGroup also distributes leading lifestyletimepieces such as GUESS?, GUESS?Collection, Nike Timing, Victorinox Swiss Army,Nautica and Marc Ecko.

Nike Timing, from the sportswear giant, isaimed at the sportsman with heart ratemonitoring, digital compass and altimeterincluded. Victorinox Swiss Army, a collaborationbetween Victorinox knives and Swiss ArmyWatches, is noted for its ability to combine aclassic look with a functional design.

Nautica watches, as the name suggests, areinspired by sailing and are designed to reflecta lifestyle of energy and activity. Marc Eckois named after its young creator andepitomises today’s youth culture.

WATCH ZONE

To showcase its line of international lifestyle watch brands, the Grouphas developed its own retailing concept known as Watch Zone. Throughthese stores it retails lifestyle brands such as GUESS?, Nautica, Nike,Marc Ecko, Victorinox Swiss Army and Seiko. Each brand representedin Watch Zone is uniquely positioned in the market. Currently theGroup operates nine stores directly or through franchise arrangementsin Singapore, Malaysia, Indonesia and Hong Kong. Primarily aimed atyounger, more fashion-conscious consumers aged 16 to 39 years,the initial reception has been very encouraging. After further fine-tuning the concept, the Group plans to accelerate development ofthis chain. By owning its own retail chain, it allows the Group to haveits own independent retailing channel which will also support any newbrands it plans to market.

LIFESTYLE ENTERTAINMENT

The football-themed Devils Bar retains its position as one of the topdestinations for Singapore’s party-loving crowds. A 50%-owned jointventure with veteran of the nightclub scene, Mr Dennis Foo, this 11,800square feet club in the vibrant Orchard Road area houses a specialentertainment concept.

Following the success of Devils Bar, we have entered into anotherventure with our long term partner, Mr Dennis Foo, as well as withleading businessman, Mr Jopie Ong, to refurbish the St James PowerStation into an integrated multi-entertainment concept. Scheduled toopen during the third quarter of 2006, this will be one of Asia’s largestentertainment centres under one roof with many bars, discothequesand restaurants catering to different consumers.

pg 27

O P E R A T I O N S d i r e c t o r y

SINGAPORE

F J BENJAMIN (SINGAPORE) PTE LTD (FJBS)FJ Benjamin Building6B Orange GroveSingapore 258332Tel: (65) 6737 0155Fax: (65) 6235 9605Email: enquiry@fjb.com.sgPerson in-charge: Douglas Benjamin

BENMARK, A DIVISION OF FJBSFJ Benjamin Building6B Orange Grove RoadSingapore 258332Tel: (65) 6732 6336Fax: (65) 6734 5881Email: enquiry@fjb.com.sgPerson in-charge: Quah Kim Tiong

BMI, A DIVISION OF FJBSFJ Benjamin Building6B Orange Grove RoadSingapore 258332Tel: (65) 6737 3786Fax: (65) 6734 7300Email: enquiry@fjb.com.sgPerson in-charge: Mark Koh

MANCHESTER UNITED (S.E.A.) PTE LTDFJ Benjamin Building6B Orange Grove RoadSingapore 258332Tel: (65) 6736 0977Fax: (65) 6733 5073Email: enquiry@fjb.com.sgPerson in-charge: Quah Kim Tiong

V.B. FASHIONS PTE LTDFJ Benjamin Building6B Orange Grove RoadSingapore 258332Tel: (65) 6737 0155Fax: (65) 6235 9605Email: enquiry@fjb.com.sgPerson in-charge: Douglas Benjamin

MALAYSIA

F J BENJAMIN (M) SDN. BHD.12th FloorMenara PanGlobalNo 8 Lorong P Ramlee50250 Kuala LumpurMalaysiaTel: (60) 3 2056 6888Fax: (60) 3 2031 4405Email: enquiry@fjbenjamin.com.myPerson in-charge: Angie Chong

HONG KONG

F J BENJAMIN (H.K.) LIMITEDIsland Place TowerRoom 2308510 King's RoadNorth PointHong KongTel: (852) 2506 3386Fax: (852) 2506 3573Email: enquiry@fjb.com.hkPerson in-charge: Tony Fung

TAIWAN

F J BENJAMIN (TAIWAN) LTD5F, No 260 Tun Hwa North Road105 TaipeiTaiwan, Republic of ChinaTel: (886) 2 2719 3880Fax: (886) 2 2719 5080Email: enquiry@fjb.com.twPerson in-charge: Tony Fung

AUSTRALIA

F J BENJAMIN CONCEPTS (AUST) PTY LTDLevel 6, 10-14 Waterloo StreetSurry Hills NSW 2010AustraliaTel: (612) 9 211 7443Fax: (612) 9 211 6505Email: enquiry@fjb.com.auPerson in-charge: Douglas Benjamin

F J BENJAMIN CONCEPTS (AUST) PTY LTDLevel 6, 10-14 Waterloo StreetSurry Hills NSW 2010AustraliaTel: (612) 9 211 7443Fax: (612) 9 211 6505Email: enquiry@fjb.com.auPerson in-charge: Ian Xavier Dahl