p 2

Highlights

� Further growth in revenue and profits in first half

� Balance sheet remains very strong

� Proven ability to produce desirable fashions

� Multi-channel with significant international presence

� Plans to improve net margins

Six months to Six months to

Core continuing business*: 31 July 2011 31 July 2010

� Revenue £102.8 million £96.5 million +7%

� Gross margin 50.0% 52.6% -2.6%

� Licence income £3.0 million £1.8 million +67%

� Profit before tax £0.7 million £0.2 million +£0.5m

Total Group performance:

� Profit/(loss) for the period £1.0 million £(12.7) million

� Earnings per share 1.0 pence (13.0) pence

� Closing net cash £30.9 million £30.2 million

� Interim dividend 0.6 pence 0.5 pence +20%

Results Highlights

* Core continuing businesses excludes the Nicole Farhi business, sold in July 2010 and the results of US stores closed at the end of January 2011

p 4

Overview of Results

� Group revenue grew 7% despite difficult market conditions

− 4.6% like-for-like growth in UK Europe

− 0.9% like-for-like growth in North America

− 12.8% growth in global wholesale business

� As expected, gross margins lower

− input price pressures and VAT increase

− change in mix towards wholesale and franchise

− change in balance of retail volumes towards sale periods

� Continued close cost control

− investment in e-commerce infrastructure and operations

− increased advertising to further support the brand

− three additional store locations in UK

− some cost increases in salaries and rents

− further reductions achieved in other areas

� Licence income strongly ahead

− first contribution from “UK Style” licence

− continuing good performance of other licensees

p 5

Details by Division

p 6

UK/Europe Retail

� 53% of group revenue

� Revenue up 5%

− overall like-for-like gross sales up 4.6%

− small increase in average space traded

− Toast continues to show growth

� Gross margin affected by

− input costs

− VAT increase

− change in proportion of revenue generated in sale period

� Overheads

− further investment in e-commerce businesses

− additional trading space

− underlying costs tightly controlled

1H12 1H11

£m £m var

Revenue 54.3 51.7 +5%

Gross profit 31.7 31.7 +0%

Gross margin 58.4% 61.3% -2.9%

Overheads (35.4) (33.6) +5%

Contribution (3.7) (1.9)

Stores/concessions 128 126 +2%

Space (000 ft2) 265 258 +3%

Retail changes in past 12 months

- 1 new Toast store

- 1 new YMC store

- 1 franchise store brought in-house

- various HoF concession changes

p 7

UK/Europe Wholesale

� 20% of group revenue

� Revenue up 19%

− higher forward orders and improved in-season business

− new franchise partner in Russia

� Gross margin

− increases in input prices

− supply agreements with franchisees

� Overheads

− tight cost control

− reduced costs in European department stores

1H12 1H11

£m £m var

Revenue 20.3 17.0 +19%

Gross profit 6.7 6.2 +8%

Gross margin 33.0% 36.5% -3.5%

Overheads (3.9) (4.3) -9%

Contribution 2.8 1.9 +47%

p 8

UK/Europe Contribution

� Common overheads

− small increase in expenditure

on advertising and promotion

� Licence income

− consistent underlying

performance from brand and

regional licensees

� Operating result

− slightly reduced

* Internal licence income is eliminated in Group consolidated results

1H12 1H11

£m £m

Retail contribution (3.7) (1.9)

Wholesale contribution 2.8 1.9

Common overheads (2.2) (2.0)

External licence income 1.8 1.8

Internal licence income* 0.6 0.5

Divisional operating result (0.7) 0.3

p 9

North America Retail

� 10% of group revenue

� Retail revenue

− like-for-like sales up 0.9%

− overall down 2.0% in local currency

− US stores well ahead, Canada softer

− one Canada store closed in last year

� Gross margin improvement

− less discounting in US stores

� Overheads

− one less store

− exchange rate benefit Results table includes only retained stores

1H11 results have been restated to reflect actual US stores retained following restructuring

1H12 1H11

£m £m var

Revenue 10.7 11.3 -5%

Gross profit 6.4 6.7 -4%

Gross margin 59.8% 59.3% +0.5%

Overheads (6.9) (7.1) -3%

Contribution (0.5) (0.4)

Stores 21 22 -5%

Space (000 ft2) 74 80 -8%

p 10

North America Wholesale

� 10% of group revenue

� Wholesale revenue growth 10%

− momentum continuing with

department stores

� Gross margin

− input price pressures

� Overheads closely controlled

− expanded participation at trade

shows

1H12 1H11

£m £m var

Revenue 10.2 9.3 +10%

Gross profit 3.5 3.5 +0%

Gross margin 34.3% 37.6% -3.3%

Overheads (1.7) (1.6) +6%

Contribution 1.8 1.9

p 11

North America Contribution

� Common overheads

− closely controlled

− exchange rate benefit

� Licence income

− first contribution from “UK Style” licence

− US-based fragrance licence

1H12 1H11

£m £m

Retail contribution (0.5) (0.4)

Wholesale contribution 1.8 1.9

Common overheads (1.5) (1.7)

External licence income 1.1 -

Divisional operating result 0.9 (0.2)

p 12

Rest of World

� 7% of group revenue

� Revenue increase

− 9% increase in local currency

− increases in sales to Australia,

China, India & Vietnam partners

� Margins consistent

� Overheads steady in local

currency

� Solid operating result

1H12 1H11

£m £m var

Revenue 7.3 7.2 +1%

Gross profit 1.4 1.4 +0%

Gross margin 19.2% 19.4% -0.2%

Overheads (0.7) (0.8) -13%

Contribution 0.7 0.6

External licensing income 0.1 -

Internal licence income* 1.1 0.8

Operating result 1.9 1.4 +36%

* Internal licence income is eliminated in Group consolidated results

p 13

Summary of Group Licence Income

1H12 1H11

£m £m var

Brand licences 2.3 1.3 +77%

Country licences 0.8 0.6 +33%

Overheads (0.1) (0.1)

Total external income 3.0 1.8 +67%

� Strong underlying performance of

licensees

� First contribution from “UK Style”

p 14

Group Result - Continuing Operations

� 50% increase in profit from regional divisions

� Overheads tightly controlled

� Share of Joint Ventures

− good performance in Hong Kong and China, strong like-for-like growth

− last year benefited from one-off credit of £0.5 million

� Taxation

− full year accounting charge likely to be c20%

− cash tax considerably less due to losses carried forward

� Dividend

− 20% increase to 0.6 pence

1H12 1H11

Core Continuing Operations £m £m

Total regional contributions 2.1 1.5

Group management overheads (1.9) (2.3)

Operating result before interest 0.2 (0.8)

Net finance income 0.1 0.2

Joint ventures 0.4 0.8

Profit before tax 0.7 0.2

Taxation charge (0.1) (0.2)

Profit after tax 0.6 0.0

Earnings per share 0.6p 0.2p

Dividend per share 0.6p 0.5p

Both years above exclude discontinued operations.

Results in 1H11 exclude the trading of US stores subsequently closed.

p 15

Discontinued/Closed Operations

� Arising from Nicole Farhi business

− trading of two remaining stores sold in the period

− loss on disposal of these two stores

− additional tranche of income from

disposal of Nicole Farhi business

� Prior period

− trading of Nicole Farhi

− loss on sale of Nicole Farhi business

− trading of US stores now closed

− currency translation arising on

disposals

1H12 1H11

Discontinued/Closed operations £m £m

Profit after tax, continuing operations 0.6 -

Trading loss of former Nicole Farhi stores (0.1) (2.8)

Loss on sale of discontinued operations (0.1) (6.2)

Income recognised on sale business 0.6 -

Trading loss from US stores now closed - (1.2)

Currency translation differences - (2.5)

Profit/(loss) after tax 1.0 (12.7)

Earnings per share 1.0p (13.0)p

p 16

Cash Flow

� Cash balance £30.9 million

� Earlier receipt of new season

inventory at end of period

� Lower cash utilisation in first half

� Cash inflow from disposal of

operations in the period

� Dividends paid of £1.1 million

1H12 1H11

£m £m

Operating result before interest 0.2 (2.0)

Depreciation and disposals 1.4 1.9

Result of discontinued businesses (0.1) (2.8)

Movement in working capital (4.8) (0.9)

Cash flow from operations (3.3) (3.8)

Tax and interest - -

Investing activities 0.4 0.2

Capital expenditure (0.4) (0.3)

Income from disposals 1.3 (1.4)

Dividends paid (1.1) (0.5)

Movement in cash (3.1) (5.8)

Opening net funds 34.1 35.7

Non-cash movements (0.1) 0.3

Net cash 30.9 30.2

p 17

The Business

p 18

French Connection is…

� Highly respected fashion brand for over 40 years

� Established and growing global recognition

� Proven ability to produce desirable ranges for an ever-changing market

− constant focus on fashion

− reliable execution and delivery

� Multiple routes to market

− retail

− e-commerce

− wholesale

− international franchise

− brand licensing

p 19

Global Presence, Multi-Channel

UK retail

44%NoAm

wholesale

10%

ROW

wholesale

7%

UK

wholesale

15% NoAm retail

10%

Other

brands

11%

Licence

income

3%

� 335 French Connection branded locations worldwide

� Over 1,000 stockists supplied

through wholesale

� More than 40 countries

� e-Commerce in four continents and in

multiple languages

� Over £450 million global sales at retail

� Three other complementary brands in

UK1H 2012

Revenue £102.8 m

Licence income £3.0 m

p 20

Retail

� 138 own-operated stores and concessions

− UK, Ireland, USA, Canada

� Improve densities through

− continually evolving ranges

− active brand marketing

� Constantly improving operational standards

� Brand presentation

− visual merchandising

− shop environment

� Refinement of retail space as opportunities arise

p 21

e-Commerce

� Generates 7% of French Connection retail sales

� 5 international sites and 4 languages

� Website recently upgraded − aiming to retain class-leading functionality through continuous

development

� Click-and-collect and same-day delivery mechanisms under development

� Raise profile in the US to access broader market

� Push into European markets with local currency pricing and developing multi-lingual sites

p 22

Wholesale

� 37% of group revenue

� Supply of products to department stores, e-commerce and multi-brand retailers

− UK, US, Europe and supply to international franchisees

� Opportunity to increase sales to existing customers

� Secure new customers particularly in Europe and US

� Develop our international franchise network

p 23

International Franchises

� Total of 197 franchised stores currently operating

− profitable and growing

� International development of branded store network

� China Joint Venture – up to 25 stores over next 3 years

� Russia franchise – planning up to 8 stores in first 3 years

� India franchise – roll out of stores as opportunities arise

� New partners in Korea, Lebanon, Jordan

p 24

Brand Licensing

� Boots toiletries

� Specsavers

� Fragrance

� Watches

� Shoes

� Men’s formalwear

� Jewellery

� “UK Style by French Connection” with Li & Fung/Sears

p 25

Other Brands

� Toast

− e-commerce, retail and new wholesale to John Lewis

− continued growth

� Great Plains

− incremental to French Connection infrastructure

− strong wholesale customer base

� YMC

− strong growth in wholesale

− two retail stores and e-commerce

p 26

Marketing

� Product quality and brand consistency is the mainstay

� Raising awareness, creating intrigue and demonstrating confidence

� Use of advertising over many years to build brand

� Current campaign− selected TV slots

− cinema

− outdoor display

− fashion press

− social media

� Celebrity profile

p 27

BrandPippa Middleton Angelina Jolie Dougray Scott Maria Sharapova

p 28

Trading Outlook

� Economic backdrop will continue to be difficult

− consumer spending likely to continue to be subdued

� Wholesale orders ahead

− both AW11 and SS12 forward orders showing growth over previous year in both UK/Europe and North America

� New season retail sales

− continuing in similar pattern to first half

� Full year group gross margin expected to be up to 200bp below last year

− improving trend in second half

− less input cost pressure for new year

� Licence business growing and expanding

− working closely with licensees to develop their businesses further

− other new opportunities being pursued

p 29

Summary

� Our business is fashion

� Global brand

� Multiple routes to market

� First half revenue and profits growth

� Strong balance sheet

� Plans to improve net margin

p 30

Appendices

p 31

Operating Segments 1H 2012

Rest of

World

Intra

Group

Total

Businesses to be Whole- Whole- Whole-

retained Retail sale Total Retail sale Total sale

£m £m £m £m £m £m £m £m £m

Revenue 54.3 20.3 74.6 10.7 10.2 20.9 7.3 102.8

Gross profit 31.7 6.7 38.4 6.4 3.5 9.9 1.4 1.7 51.4

Gross margin 58.4% 33.0% 51.5% 59.8% 34.3% 47.4% 19.2% 50.0%

Trading overheads (35.4) (3.9) (39.3) (6.9) (1.7) (8.6) (0.7) (48.6)

Operating contribution (3.7) 2.8 (0.9) (0.5) 1.8 1.3 0.7 1.7 2.8

Common overhead costs (2.2) (1.5) - (3.7)

Licensing income 2.4 1.1 1.2 (1.7) 3.0

Divisional operating profit (0.7) 0.9 1.9 - 2.1

(1.9)

Share of joint ventures 0.4

Finance income 0.1

Profit before tax 0.7

Six months

31 July 2011

UK/Europe North America

Central overheads

p 32

Operating Segments 1H 2011

Rest of

World

Intra

Group

Total

Businesses to be Whole- Whole- Whole-

retained Retail sale Total Retail sale Total sale

Restated £m £m £m £m £m £m £m £m £m

Revenue 51.7 17.0 68.7 11.3 9.3 20.6 7.2 96.5

Gross profit 31.7 6.2 37.9 6.7 3.5 10.2 1.4 1.3 50.8

Gross margin 61.3% 36.5% 55.2% 59.3% 37.6% 49.5% 19.4% 52.6%

Trading overheads (33.6) (4.3) (37.9) (7.1) (1.6) (8.7) (0.8) (47.4)

Operating contribution (1.9) 1.9 (0.0) (0.4) 1.9 1.5 0.6 1.3 3.4

Common overhead costs (2.0) (1.7) - (3.7)

Licensing income 2.3 - 0.8 (1.3) 1.8

Divisional operating profit 0.3 (0.2) 1.4 - 1.5

(2.3)

Share of joint ventures 0.8

Finance income 0.2

Profit before tax 0.2

North AmericaSix months

31 July 2010

UK/Europe

Central overheads

p 33

July 11 July 10 Jan 11

£m £m £m

Intangible assets 2.4 2.4 2.4

Tangible assets 7.5 9.9 8.5

Investments 3.3 3.1 3.4

Deferred tax assets 4.1 4.1 4.1

Total non-current assets 17.3 19.5 18.4

Inventories 46.7 42.2 40.3

Debtors 27.8 23.8 25.6

Cash at bank 30.9 30.2 34.1

Total current assets 105.4 96.2 100.0

Total assets 122.7 115.7 118.4

Non-current liabilities (0.9) (0.8) (0.9)

Loans and overdrafts - - -

Creditors (50.3) (52.5) (45.7)

Derivative financial instruments - (0.1) -

Total liabilities (51.2) (53.4) (46.6)

Net assets 71.5 62.3 71.8

Balance Sheet

p 34

Retail Locations

OPERATED LOCATIONS Locations sq ft Locations sq ft Locations sq ft

UK/Europe

French Connection Stores 73 223,858 72 221,858 73 223,358

French Connection/ Great Plains Concessions 44 29,156 45 25,837 44 25,297

Toast Stores 9 10,578 9 10,578 8 9,316

YMC Stores 2 1,355 2 1,355 1 505

Total UK/Europe 128 264,947 128 259,628 126 258,476

North America

French Connection US Stores 8 37,227 8 40,862 8 40,862

French Connection Canada Stores 13 36,535 13 36,535 14 39,135

Total North America 21 73,762 21 77,397 22 79,997

TOTAL OPERATED LOCATIONS 149 338,709 149 337,025 148 338,473

FRENCH CONNECTION LICENSED & FRANCHISED

UK/Europe 11 15,430 13 18,460 13 16,560

North America 1 2,000 1 2,000 1 2,000

Middle East 10 20,331 13 25,331 16 32,531

Australia 86 89,810 80 84,800 53 76,513

Hong Kong 7 9,521 6 9,336 6 9,336

China 19 27,334 20 28,562 20 28,562

India 27 23,993 25 21,835 22 17,966

Russia 2 3,637 - - - -

Other 34 32,479 41 42,035 40 40,635

TOTAL LICENSED AND FRANCHISED LOCATIONS 197 224,535 199 232,359 171 224,103

TOTAL BRANDED LOCATIONS, WORLDWIDE 346 563,244 348 569,384 319 562,576

Stores held for closure/disposal 2 7,515 14 50,842

July 2011 January 2011 July 2010