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1 1 Interim Results Announcem ent 17 August 20 11 1 1 0 2 FORWARD-LOOKI NG STATEMENTS Certain statements contained in this presentation maybe viewed as forward-looking statements. Such forward- looking statements represent the Companys

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17 August 20 11 2 1 1

Interim Results Announcem ent

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FORWARD-LOOKI NG STATEMENTS

Certain statements contained in this presentation maybe viewed as forward-looking statements. Such forward- looking statements represent the Company’s expectations

  • r beliefs concerning future events and involve known

and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

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AGENDA

  • 1H2011 Performance Highlights

– by Mr. Clement Hui, Chairman

  • 1H2011 Group Performance

– by Mr. Donald Yip, Chief Executive Officer

  • Operation Review & Outlook

– by Mr. Donald Yip, Chief Executive Officer

  • Corporate Objective and Strategies

– by Mr. Clement Hui, Chairman

  • Q&A
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1H2011 Performance Highlights

  • Mr. Clement Hui

Chairman

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Group Turnover

PERFORMANCE HIGHLIGHTS

FY2007 FY2008 FY2009 FY2010 1H2010 1H2011

Fast Expansion on Track

HK$19,496M HK$22,209M HK$32,211M HK$16,050M HK$14,194M HK$19,814M

+ 39.6%

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PERFORMANCE HIGHLIGHTS (cont’d)

Profit attributable to shareholders

FY2007 FY2008 FY2009 FY2010 1H2010 1H2011

HK$520M HK$558M HK$704M HK$1,422M HK$490M HK$801M

+ 63.5%

Strong Earnings Grow th

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Basic earnings per share (HK cents)

PERFORMANCE HIGHLIGHTS (cont’d)

FY2007 FY2008 FY2009 FY2010 1H2010 1H2011

31.37 31.02 39.16 78.94 27.26 44.06

+ 61.6%

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Dividend per share (HK cents)

PERFORMANCE HIGHLIGHTS (cont’d)

I nterim dividend Final dividend

FY2007 FY2008 FY2009 FY2010 1H2011

14.30 10.68 4.51 6.43 2.13 2.95 11.29 12.77

1H11 vs 1H10 + 33.9%

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1H2011 Group Performance

  • Mr. Donald Yip

Chief Executive Officer

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For the period ended 30 June 2011

1H2011 GROUP PERFORMANCE

HK$'M 1H2011 1H2010 yoy Turnover 19,814 14,194

+ 39.6%

Profit attributable to shareholders 801 490 #

+ 63.5%

Adjusted net profit * 652 505

+ 29.1%

Adjusted net profit margin 3.3% 3.6%

  • 0.3% pt

Note: # 2010 figures have been restated due to the change of accounting policies to early adopted HKAS 12 “Income Taxes”. * The adjusted net profit for the period excluding non-operating items such as net gain on investment properties and other non-operating items.

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For the period ended 30 June 2011

1H2011 GROUP PERFORMANCE (cont’d)

1H2011 1H2010 yoy Basic earnings per share 44.06 HK cents 27.26 HK cents

+ 61.6%

I nterim dividend per share 14.30 HK cents 10.68 HK cents

+ 33.9%

NAV per share HK$4.37 HK$3.41

+ 28.2%

Return on equity (Annualised) 22.3% 17.3%

+ 5.0% pt

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TURNOVER * - BY BUSINESS SEGMENTS

Food & Consumer Products 18.6% Motor & Motor Related 80.4% Logistics & Others 1.0%

1H2011

Motor & Motor Related 75.6% Logistics & Others 1.2% Food & Consumer Products 23.2%

1H2010

Note: * For sales to third parties only

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TURNOVER * - BY MARKETS

1H2011

Hong Kong & Macao 26.6% Mainland China 66.8% Other Markets 6.6%

1H2010 Hong Kong & Macao 21.4% Mainland China 72.8% Other Markets 5.8%

Note: * For sales to third parties only

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CONSOLIDATED BALANCE SHEET ANALYSIS

HK$'M 30 Jun 2011 31 Dec 2010 Non-current assets 4,803 4,261 Current assets 12,186 10,483 Current liabilities 7,482 6,685 Net current assets 4,704 3,798 Current ratio 1.63 1.57 Non-current liabilities 1,561 904 Net assets 7,946 7,155 Non-controlling interests 437 307 Shareholders' funds 7,509 6,848

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CONSOLIDATED CASH FLOW STATEMENT HIGHLIGHTS

HK$'M 30 Jun 2011 30 Jun 2010 Operating profit 1,161 820 I ncrease in working capital (20) (738) Cash generated from operations 1,141 82 I ncome tax paid (187) (142) Net cash generated from / (used in)

  • perating activities

954 (60) Net cash used in financing activities (73) (66) Net cash used in investing activities (539) (282) Net increase / (decrease) in cash and cash equivalents 342 (408)

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LIQUIDITY ANALYSIS

HK$'M 30 Jun 2011 31 Dec 2010 Cash and bank deposits 2,349 1,991 Total debt 3,841 3,302 Net debt 1,492 1,311 Shareholders' funds 7,509 6,848 Total capital 9,001 8,159 Gearing ratio 16.6% 16.1%

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HK$'M Consideration 195 Related selling expenses (2) Carrying amount of the property as at 31 Dec 2010 (112) Gain on remeasurement: 81 Disposal of a property in Hong Kong 56 Percival Street, Causeway Bay Completion: On or before 28 Dec 2011

ASSET DISPOSAL

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Operation Review & Outlook

  • Mr. Donald Yip

Chief Executive Officer

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MOTOR AND MOTOR RELATED BUSINESS

HK$’M HK$’M

10,183 12,800 15,652 24,643 10,737 15,929 FY2007 FY2008 FY2009 FY2010 1H2010 1H2011 483 641 815 1,301 629 927 FY2007 FY2008 FY2009 FY2010 1H2010 1H2011

Segment Turnover

Segment Turnover Segment Result From Operations Segment Margin HK$'M 1H2011 % of total 1H2010 % of total Change % 1H2011 1H2010 Change % 1H2011 1H2010 Change % Mainland China 12,965 81.4% 8,224 76.6% 57.6% 731 451 62.1% 5.6% 5.5% +0.1% pt Hong Kong & Macao 2,229 14.0% 2,020 18.8% 10.3% 183 166 10.2% 8.2% 8.2%

  • Other Markets

735 4.6% 493 4.6% 49.1% 13 12 8.3% 1.8% 2.4%

  • 0.6% pt

15,929 100.0% 10,737 100.0% 48.4% 927 629 47.4% 5.8% 5.9%

  • 0.1% pt

Segment Result From Operations

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Mainland China Distributorship Bentley:

  • Sold 623 units, +65.7%
  • Appointed 5 dealerships in Wenzhou (in operation),

Xian, Taiyuan, Zhengzhou and Ordos

  • Sold 3,513 units, +11.6%

MOTOR AND MOTOR RELATED BUSINESS – 1H2011 Operation Review

Bentley - New Continental GT

Vehicle market: 9.33 million units, +3.4% DCH Sales: 36,122 units, +48.2%

I suzu – Heavy Duty Truck

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Mainland China

MOTOR AND MOTOR RELATED BUSINESS – 1H2011 Operation Review (cont’d)

Dealership

  • Number of 4S shops increased from 55 to 59 with 19 brands
  • The 4 additional 4S shops opened are :

(1) FAW Audi in Liuzhou, Guangxi (2) GQ Honda in Maoming, Guangdong (3) FAW Toyota in Guigang, Guangxi (4) Qingling in Shenzhen, Guangdong

  • 11 additional dealerships of Chevrolet, FAW Audi, FAW Toyota and Lexus in Guangdong,

Hubei, Hunan, Jiangxi, Yunnan and Zhejiang provinces obtained

  • Same store growth: new car sales unit +10.3%, service unit +16.5%

Liuzhou - Audi 4S shop Shenzhen – Qingling 4S shop

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Mainland China Motor Related Business

MOTOR AND MOTOR RELATED BUSINESS – 1H2011 Operation Review (cont’d)

Motor Leasing

  • Business in Shanghai progressing well, number of cars under rental tripled
  • With that in Beijing and Tianjin and the establishments in Chongqing, Dalian, Guangzhou,

Qingdao, Shunde and Shenzhen, presence in total of 9 cities Independent Service Outlet

  • 1st Independent service outlet in Dongguan in operation
  • 3 more outlets in Dongguan are established

Lube Oil Production

  • Lubrication oil blending plant in Xinhui started operation smoothly in Jan 2011
  • Sales including OEM to reputable brands, house brands, and supply to factories nearby
  • Secured lube oil export license
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Hong Kong

MOTOR AND MOTOR RELATED BUSINESS – 1H2011 Operation Review (cont’d)

Other Markets Motor Business Vehicle market: 19,976 units, +5.4% DCH Sales: 4,385 units, -3.8% due to 311 earthquake and strong yen Market share: 22.0%

  • Unit sales growth +8.8%
  • New showroom in TST, Unit sales growth +10.2%
  • HK & Macao segment turnover grew by 10.3% with rising demand for European cars

Motor Related Business

  • Trial installation of Selective Catalytic Reduction Devices on franchise buses are progressing well
  • Taiwan: Unit sales growth +85.6% with additional Audi shop opened in Hsinchu
  • Singapore: Vehicle market sluggish due to high COE price and our new distributorship of

Foton yet to be developed

  • Canada: Stable
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MOTOR AND MOTOR RELATED BUSINESS – Outlook 2011

Distributorship Dealership Motor Related Business Mainland China

Vehicle market: Sale growth similar to 1H expected

  • Strong demand for super luxury goods in the PRC
  • Total 18 dealerships by end of 2011
  • Target to sell over 1,200 units in 2011
  • 2H2011 optimistic with increased domestic consumption and steady supply of trucks

after 311 earthquake

  • Target to open 10-15 4S shops per year for mid-to-high-end brands
  • 5 shops under greenfield development ready by end of 2011
  • M&A for further increase of 4S shops with probably 2 new premium brands added to existing portfolio

under negotiation

  • Seeking for expansion through large scale M&A opportunities
  • Motor leasing in 10 cities with addition of Hefei by end of 2011 and continue to expand the network
  • 10 Independent service outlets to be established in Guangdong by end of 2011
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MOTOR AND MOTOR RELATED BUSINESS – Outlook 2011 (cont’d)

Other Markets

  • Sales of environment-friendly vehicles especially electric cars and buses open a new

market for DCH under the strong support by HKSAR government

  • Total 5 MotorMech service centres with the addition in Shatin by end of 2011
  • The success of the SCR trial to reduce NOx will lead to full scale installation onto

franchise buses under the sponsorship of HKSAR government Taiwan -- Expanding more Audi dealership

  • - Exploring commercial vehicle distributorship business

Hong Kong & Macao Vehicle market: Steady

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FOOD & CONSUMER PRODUCTS BUSINESS

HK$’M HK$’M

5,626 6,428 6,240 7,206 3,296 3,691 FY2007 FY2008 FY2009 FY2010 1H2010 1H2011 149 150 111 181 59 56 FY2007 FY2008 FY2009 FY2010 1H2010 1H2011

Segment Turnover Segment Result From Operations

Segment Turnover Segment Result From Operations Segment Margin HK$'M 1H2011 % of total 1H2010 % of total Change % 1H2011 1H2010 Change % 1H2011 1H2010 Change % Mainland China 1,412 38.3% 1,245 37.8% 13.4% 25 20 25.0% 1.8% 1.6% +0.2% pt Hong Kong & Macao 1,885 51.1% 1,633 49.5% 15.4% 69 62 11.3% 3.7% 3.8%

  • 0.1% pt

Other Markets excl. GDVTR 286 7.7% 283 8.6% 1.1% 10 11

  • 9.1%

3.5% 3.9%

  • 0.4% pt

GDVTR 108 2.9% 135 4.1%

  • 20.0%
  • 48
  • 34
  • 41.2%
  • 44.4%
  • 25.2%
  • 19.2% pt

3,691 100.0% 3,296 100.0% 12.0% 56 59

  • 5.1%

1.5% 1.8%

  • 0.3% pt
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FOOD & CONSUMER PRODUCTS BUSINESS – 1H2011 Operation Review

Mainland China Total Food Supply Chain Upstream - JV with CJ CheilJedang for food production in Xinhui Midstream - FMCG - 35.5% yoy sales growth with increase in sales of new products, Wonderful nuts and Senz chocolate

  • new agencies acquired including Welch’s grape juice, baking ingredients
  • JV set up in Xiamen to focus on food distribution in Fujian province
  • Food Commodity - Reduction of low margin business
  • Restructuring product portfolio
  • Strengthen food services distribution
  • BRF - Signed LOI with Brasil Foods S.A. to develop frozen and chilled branded

food products in China, Hong Kong and Macao Electrical appliances - 63.6% yoy sales growth on audio products

  • set up DCH AV counters in nationwide major electrical appliances

retail chains

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FOOD & CONSUMER PRODUCTS BUSINESS – 1H2011 Operation Review (cont’d)

Hong Kong & Macao Other Markets Total Food Supply Chain Upstream - Acquired Tai Luen Coffee: tea and coffee production and distribution

  • Acquired Bayern Gourmet: western delicatessen food manufacturing and

distribution Midstream - FMCG - 23.3% yoy sales growth with increase in sales of new products, Brand’s, and existing products, Mazola and Ovaltine

  • Commodities - Sales growth 16.7%

Downstream - DCH Foodmart - Operating 82 Food Mart retail outlets in HK (incl. 4 new stores & 10 stores upgraded to Deluxe shop)

  • Same store sales per sq. ft. growth: +7.1%

Electrical appliances manufacturing - Still challenging with sluggish sales in European markets

  • action taken to turn around the business
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FOOD & CONSUMER PRODUCTS BUSINESS – Outlook 2011

Market Environment Outlook is promising for premium imported food and consumer products under the favourable economic environment in mainland China:

  • income per capita increasing
  • domestic consumer market bullish
  • food safety concerns rising
  • import duty reducing under WTO / FTA
  • strong RMB favour import goods
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FOOD & CONSUMER PRODUCTS BUSINESS – Outlook 2011 (cont’d)

DCH – Building up total supply chain to meet the upcoming market boom

Upstream Manufacturing / Processing Upstream Manufacturing / Processing Midstream Distribution Midstream Distribution Downstream Retail Downstream Retail

VALUES

Values

  • Higher margin in the value chain including logistics services
  • House brand development for long term profitability
  • Supply stability for marketing and product planning
  • Free flow of market information
  • Enhance return to shareholders
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FOOD & CONSUMER PRODUCTS BUSINESS – Outlook 2011 (cont’d)

Upstream Development

  • To produce/distribute CJ branded cooked food with CJ CheilJedang, a leading

Korean conglomerate for PRC market

  • Acquired Tai Luen Coffee to build up the tea and coffee business capability aiming at

enlarging market into the PRC.

  • Acquired Bayern Gourmet to complement the food processing business and extend

the market into the PRC

  • Further M&A opportunities under study to strengthen the upstream capability, widen the

product category and enhance profitability

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FOOD & CONSUMER PRODUCTS BUSINESS – Outlook 2011 (cont’d)

Midstream Development Downstream Development

  • Acquire more agency for imported premium food products as well as premium audio-video

products

  • Develop more in-house brand products
  • Widen sales channels
  • Expand geographic coverage
  • Strengthen internal logistics support
  • Retail outlets of Food Mart expansion to mainland China under study
  • Expansion of DCH AV shops in major chain stores in the PRC
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FOOD & CONSUMER PRODUCTS BUSINESS – Outlook 2011 (cont’d)

Cooperation with BRF

  • BRF, one of the largest food company in the world
  • To form JV for developing frozen and chilled branded food products in PRC, HK and Macao
  • Initially import from Brazil, mainly poultry and pork
  • Expand to other branded frozen and chilled FMCG
  • Develop further processing products
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LOGISTICS BUSINESS

HK$’M HK$’M

268 295 326 365 166 188 FY2007 FY2008 FY2009 FY2010 1H2010 1H2011 17 17 25 22 15 7 FY2007 FY2008 FY2009 FY2010 1H2010 1H2011

Segment Turnover Segment Result From Operations

Segment Turnover Segment Result From Operations Segment Margin HK$'M 1H2011 % of total 1H2010 % of total Change % 1H2011 1H2010 Change % 1H2011 1H2010 Change % Mainland China 33 17.6% 16 9.6% 106.3%

  • 3
  • 2
  • 50.0%
  • 9.1%
  • 12.5%

+3.4% pt Hong Kong & Macao 155 82.4% 150 90.4% 3.3% 10 17

  • 41.2%

6.5% 11.3%

  • 4.8% pt

188 100.0% 166 100.0% 13.3% 7 15

  • 53.3%

3.7% 9.0%

  • 5.3% pt
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LOGISTICS BUSINESS – 1H2011 Operation Review and Outlook 2011

Operation Review and Outlook

Mainland China Eastern China: The addition of multi-temperature seamless cold chain facilities in Shanghai marking beginning of the cold chain business in the region and enhances the support to DCH food business there Southern China: - Xinhui Logistics Centre in full operation

  • Cold chain facilities in Guangzhou and Shenzhen being planned

With the JV in Xiamen, a seamless cold chain platform will be in place to satisfy the demand

  • f the service in the coastal regions and synergise on Food and Consumer Products
  • development. Further expansion into inland areas is under planning

Hong Kong Hong Kong: Challenging as both labour cost and rental hiking Macao: Sales growth +59.7% in 1H and continue to grow as the city expanding the conferencing and entertainment business

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Corporate Objective and Strategies

  • Mr. Clement Hui

Chairman

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TARGET – Dynamic China Market

China focus

Aggressive expansion but maintain stable earnings growth to enhance shareholders’ value Continue to keep a balance portfolio of Motor, Food and Consumer Products as well as Logistics business

Motor - through greenfield development and M&A

  • focus in premium brands
  • enhancing aftersale business
  • expansion of motor related business

Food - total supply chain development

  • enhancing margin through upstream expansion
  • improvement of profitability with scale in mid-stream business and logistics support
  • expansion to downstream business with product focus and brand value

Logistics - to set up a national wide logistics platform for cold chain service

Strategy

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CORPORATE OBJECTIVE

A leading company in the A leading company in the Greater China consumer market Greater China consumer market

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