Annual Results 2008 Forward Forward- -looking statements looking - PowerPoint PPT Presentation

Annual Results 2008

Forward Forward- -looking statements looking statements This This presentation presentation and and subsequent subsequent discussion discussion may may contain contain certain certain forward forward- -looking looking statements statements with with respect respect to to the the financial financial condition, condition, results results of of operations operations and and business business of of Clear Clear Media Media. . These These forward- forward -looking looking Clear Media ’ s Media ’ s expectations statements statements represent represent Clear expectations or or beliefs concerning beliefs concerning future future events events and and involving involving known known and and unknown unknown risks risks and and uncertainties uncertainties which which could could cause cause actual actual results, results, performance performance or or events events to to differ differ materially materially from from those those expressed expressed or or implied implied in in such such statements statements. .

Introduction Jing Huang Chairman

Our 11th Consecutive Year of Double-digit Growth 1400 Turnover (HK$ ’ m) 1200 1000 800 1260 600 997 400 776 675 538 488 427 200 355 260 170 0 2002 2005 1999 2000 2001 2003 2004 2006 2007 2008

Financial Review Teo Hong Kiong CFO

Financial Performance (HK$m) (HK$m) FY07 FY07 FY08 FY08 % Change % Change Revenue Revenue 997 997 1,260 1,260 26% 26% EBITDA EBITDA 375 375 456 456 21% 21% EBIT EBIT 190 190 242 242 28% 28% Net Profit Net Profit 142 142 166 166 17% 17% EPS (HK cents) EPS (HK cents) 27.02 27.02 31.67 31.67 17% 17% Net Profit before Net Profit before 142 142 180 180 27% 27% restructuring restructuring charges charges 200 2007 7 2008 200 8 EBITDA Margin EBITDA Margin 38 38% % 36 36% % Net Profit Margin Net Profit Margin 1 14 4% % 13 13% %

Performance by Activities (HK$ ’ 000) (HK$ ’ 000) HQ & HQ & Option Option Bus Bus Shenzhen Shenzhen Other Other Expenses Expenses Shelter Shelters s Formats Formats Bus Body Bus Body Total Total Revenue Revenue 1,147,174 1,147,174 83,954 83,954 28,987 28,987 - 1,260,115 1,260,115 483,797 483,797 394 394 (254) (254) (28,180) (28,180) 455,757 455,757 EBITDA EBITDA EBIT EBIT 277,546 277,546 46 46 (7,070) (7,070) (28,180) (28,180) 242,342 242,342 216,451 216,451 34 34 (7,353) (7,353) (43,065) (43,065) 166,067 166,067 Net Profit Net Profit

Revenue By Location FY0 FY07 7 FY0 FY08 8 Beijing 21% Beijing 27% Others Others 45% 44% Shanghai 15% Shanghai 13% Guangzhou Guangzhou 19% 16%

Turnover By Industry FY07 FY0 7 FY08 FY0 8 Beverage Beverages s 18 8% % 17 17% % Telecom Telecom 22 22% % 14% 14 % Food Food 8% % 11 11% % Cosmetics & Toiletries Cosmetics & Toiletries 8% 9% 8% 9% Retail & Retail & Services Services 5% 5% 6% Finance & Insurance Finance & Insurance 3% 3% 6% 6% IT IT 4 4% % 6% % Realty Realty 5% 5% 5% 5% Home Home Appliances Appliances 5% % 5% % Entertainment Entertainment 3% 3% 4% 4%

Cost Breakdown % Turnover % Turnover FY FY0 07 7 FY FY0 08 8 Direct Costs Direct Costs - Rental Rental 2 24 4 24 24 - Maintenance Maintenance 7 7 - Electricity Electricity 4 4 - Sales & Cultural Tax Sales & Cultural Tax 8 8 8 8 43 43 43 43 Amortisation + Depreciation Amortisation + Depreciation 19 19 17 17 SG & A SG & A* * 2 20 0 21 21 Total Expenses Total Expenses 8 82 2% % 81 81% % *FY08 SG&A expenses included HK$14m one-off non-cash restructuring charges.

Trade Receivables FY07 FY0 7 FY0 FY 08 8 (HK$ ’ m) (HK$ ’ m) (HK$ ’ m) (HK$ ’ m) rd Party Receivables 3 rd Party Receivables 416 416 508 508 Turnover Day Turnover Days s � Time Wt. Av. Time Wt. Av. 133 13 3 days days 149 days 149 days Due from WHA Due from WHA 53 53 80 80 Sales from WHA Sales from WHA / % Turnover / % Turnover 6% % 9% %

Healthy Cash Flow (HK$ ’ m) (HK$ ’ m) FY07 FY0 7 FY0 FY08 8 Cash flow from operating activities Cash flow from operating activities Cash generated from operations Cash generated from operations 330 330 439 439 Interest paid Interest paid (1) (1) (13) (13) Income tax paid (1 Income tax paid (16 6) ) (57) (57) Net cash from operating activities Net cash from operating activities 313 313 369 369 Cash outflows from investing activities Cash outflows from investing activities (222 ( 222) ) (221) (221) Cash outflows from Cash outflows from financing activities financing activities (65) (65) (221) (221) Net cash & cash equivalents Net cash & cash equivalents at the beginning of at the beginning of year year 257 257 283 283 at the end of at the end of year year 283 283 210 210 Net (decrease)/increase in Net (decrease)/increase in cash & cash equivalents cash & cash equivalents 26 26 (73) (73)

Strong Balance Sheet (HK$ ’ m) (HK$ ’ m) FY2007 FY200 7 FY200 FY2008 8 Cash & cash equivalents Cash & cash equivalents 283 283 210 210 Total assets Total assets 2, 2,738 738 2,959 2,959 Convertible bonds due 2009 Convertible bonds due 2009 100 - 100 - CC revolving short CC revolving short- -term loan term loan 150 55 150 55 Total equity Total equity 2 2, ,152 152 2,474 2,474

Review of Strategy & Execution Han Zi Jing CEO

2008 Highlights FY08 strong performance FY08 strong performance � � Total revenue grew by 26% Total revenue grew by 26% Core business revenue grew by 26% Core business revenue grew by 26% � Net profit before restructuring charges Net profit before restructuring charges � grew by 27% grew by 27% Net profit grew by 17% Net profit grew by 17% �

2008 Highlights (cont ’ d) Remarkable results in Q1 Remarkable results in Q1- -Q3 Q3 � Benefited from the Olympics Benefited from the Olympics � Tightened regulations in BJ drove up demand Tightened regulations in BJ drove up demand � Slowed down in Q4 Slowed down in Q4 � Global economic slow down Global economic slow down � Tainted milk scandal Tainted milk scandal � Added 3,500 new bus shelter panels to 32,700 Added 3,500 new bus shelter panels to 32,700 � SZ bus body business broke even SZ bus body business broke even �

2009 Action Plan � Tailor make business plans for large customers Tailor make business plans for large customers -in sales orders in Q1 ’ 09 in sales orders in Q1 ’ 09 Target to lock Target to lock- � Cautious capex spend and network expansion Cautious capex spend and network expansion � Stringent cost control measures and tightened risk Stringent cost control measures and tightened risk � management management

Outlook Challenging 2009 Challenging 2009 � Proven track record in past 11 years Proven track record in past 11 years � � Long Long- -term realism and optimism term realism and optimism Prepare for the next stage growth: Prepare for the next stage growth: � 2010 World Expo Shanghai 2010 World Expo Shanghai � 2010 Asian Games Guangzhou 2010 Asian Games Guangzhou �

Our 11th Consecutive Year of Double-digit Growth 1400 Turnover (HK$ ’ m) 1200 1000 800 1260 600 997 400 776 675 538 488 427 200 355 260 170 0 2002 2005 1999 2000 2001 2003 2004 2006 2007 2008

Appendix Appendix

Power of Our Network A.S.P. A.S.P. Occupancy Occupancy Panel Panel Sales Sales No. No. Growth Growth st tier cities 1 st tier cities Beijing Beijing 66% 66% 56% 56 % 2% % 62% 62% Shanghai Shanghai 5% % 49% 49 % 1% % 11 11% % Guangzhou Guangzhou 9% % 64 64% % 10 10% % 6% 6% 30% 30 % 56% 56 % 4% % 29 29% % 2 nd nd tier cities 13 13% % 60 60% % 13% 13 % 23 23% % tier cities TOTAL TOTAL 19 19% % 59% 59% 9% 26 26% %