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

• f operations
• perations and

and business business

• f
• f

Clear Clear Media Media. . These These forward forward-

• looking

looking statements statements represent represent Clear Clear Media’s Media’s expectations expectations or

• r

beliefs beliefs concerning 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

• r events

events to to differ differ materially materially from from those those expressed expressed or

• r implied

implied in in such such statements statements. .

Introduction

Jing Huang Chairman

170 260 355 427 488 538 675 776 997 1260

200 400 600 800 1000 1200 1400 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Our 11th Consecutive Year of Double-digit Growth

Turnover (HK$’m)

Financial Review

Teo Hong Kiong CFO

(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 restructuring restructuring charges charges 142 142 180 180 27% 27%

200 2007 7 200 2008 8 EBITDA Margin EBITDA Margin 38 38% % 36 36% % Net Profit Margin Net Profit Margin 1 14 4% % 13 13% %

Financial Performance

(HK$’000) (HK$’000) Bus Bus Shelter Shelters s Shenzhen Shenzhen Bus Body Bus Body Other Other Formats Formats HQ & HQ & Option Option Expenses Expenses Total Total

Revenue Revenue

1,147,174 1,147,174 83,954 83,954 28,987 28,987

• 1,260,115

1,260,115

EBITDA EBITDA

483,797 483,797 394 394 (254) (254) (28,180) (28,180) 455,757 455,757

EBIT EBIT

277,546 277,546 46 46 (7,070) (7,070) (28,180) (28,180) 242,342 242,342

Net Profit Net Profit

216,451 216,451 34 34 (7,353) (7,353) (43,065) (43,065) 166,067 166,067

Performance by Activities

Revenue By Location

Beijing 27% Shanghai 13% Guangzhou 16% Others 44%

FY0 FY07 7 FY0 FY08 8

Beijing 21% Shanghai 15% Guangzhou 19% Others 45%

FY0 FY07 7 FY0 FY08 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%

Turnover By Industry

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 21 21 Total Expenses Total Expenses 8 82 2% % 81 81% %

*FY08 SG&A expenses included HK$14m one-off non-cash restructuring charges.

FY0 FY07 7 FY FY0 08 8 (HK$’m) (HK$’m) (HK$’m) (HK$’m) 3rd

rd Party Receivables

Party Receivables 416 416 508 508 Turnover Day Turnover Days s

• Time Wt. Av.

Time Wt. Av. 13 133 3 days days 149 149 days days Due from WHA Due from WHA 53 53 80 80 Sales from WHA Sales from WHA / % Turnover / % Turnover 6% % 9% %

Trade Receivables

(HK$’m) (HK$’m) FY0 FY07 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)

Healthy Cash Flow

(HK$’m) (HK$’m) FY200 FY2007 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

Strong Balance Sheet

Review of Strategy & Execution

Han Zi Jing CEO

• 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

• 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

2008 Highlights (cont’d)

• Tailor make business plans for large customers

Tailor make business plans for large customers

• Target to lock

Target to lock-

• in sales orders in Q1’09

in sales orders in Q1’09

• 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

2009 Action Plan

• 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

Outlook

170 260 355 427 488 538 675 776 997 1260

200 400 600 800 1000 1200 1400 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Our 11th Consecutive Year of Double-digit Growth

Turnover (HK$’m)

Appendix Appendix

A.S.P. A.S.P. Occupancy Occupancy Panel Panel No. No. Sales Sales Growth Growth 1st

st tier cities

tier cities Beijing Beijing Shanghai Shanghai Guangzhou Guangzhou 66% 66% 5% % 9% % 30 30% % 56 56% % 49 49% % 64 64% % 56 56% % 2% % 1% % 10 10% % 4% % 62% 62% 11 11% % 6% 6% 29 29% % 2nd

nd tier cities

tier cities 13 13% % 60 60% % 13 13% % 23 23% % TOTAL TOTAL 19 19% % 59% 59% 9% 26 26% %

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