INTERIM RESULTS 2010 1 Forward- -looking statements looking - - PDF document

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INTERIM RESULTS 2010

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Forward Forward-

• looking statements

looking statements

This presentation and subsequent discussion may This presentation and subsequent discussion may contain certain forward contain certain forward-

• looking statements with respect

looking statements with respect to the financial condition, results of operations and to the financial condition, results of operations and business of Clear Media. These forward business of Clear Media. These forward-

• looking

looking statements represent Clear Media statements represent Clear Media’ ’s expectations or s expectations or beliefs concerning future events and involving known beliefs concerning future events and involving known and unknown risks and uncertainties which could cause and unknown risks and uncertainties which could cause actual results, performance or events to differ materially actual results, performance or events to differ materially from those expressed or implied in such statements. from those expressed or implied in such statements.

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INTRODUCTION

Peter Cosgrove Deputy Chairman

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FINANCIAL REVIEW

Teo Hong Kiong CFO

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1H10 Performance

(HK$ (HK$’ ’M M) )

1H09 1H09 1H 1H10 10 Turnover Turnover 527 527 585 585 Total costs* Total costs* 369 369 369 369 EBITDA EBITDA 158 158 216 216 Amortisation Amortisation & depreciation & depreciation 118 118 119 119 EBIT EBIT 40 40 97 97 Net Profit Net Profit 28 28 77 77 EPS EPS 5.43 cents 5.43 cents 14.72 cents 14.72 cents

YOY YOY 11% 11%

• 37%

37% 1% 1% 142% 142% 172% 172%

*Total costs included share option expense adjustment in 1H2010.

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1H10 Normalised Performance

(HK$ (HK$’ ’M M) )

1H09 1H09 1H10 1H10 Turnover Turnover 527 527 585 585 EBITDA* EBITDA* 158 158 196 196 EBIT* EBIT* 40 40 77 77 Net Profit* Net Profit* 28 28 57 57

YOY YOY 11% 11% 25% 25% 92% 92% 101% 101%

*Excluded share option expense adjustment.

1H 1H0 09 1H10 9 1H10 EBITDA Margin EBITDA Margin 30% 34 30% 34% % Net Profit Margin Net Profit Margin 5% 10 5% 10% %

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Performance by Activities

Bus Bus Shelter Shelter Shenzhen Shenzhen Bus Body Bus Body Other Other Formats Formats HQ HQ* * Total Total Revenue Revenue 542 542 42 42 1 1

• 585

585 EBITDA EBITDA 213 213 (3) (3) (1) (1) 7 7 216 216 EBIT EBIT 95 95 (4) (4) (1) (1) 7 7 97 97 Net Net Profit Profit/(Loss) /(Loss) 75 75 (3) (3) (1) (1) 6 6 77 77

(HK$ (HK$’ ’M M) )

*Included share option expense adjustment.

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Revenue By Location

Beijing 26% Shanghai 13% Guangzhou 16% Others 45%

1H200 1H2009 9 1H20 1H2010 10

Beijing 23% Guangzhou 14% Shanghai 17% Others 46%

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Revenue By Industry

1H200 1H2009 9 1H20 1H2010 10 Beverage Beverage 28 28% % 25 25% % Food Food 8 8% % 12 12% % Telecom Telecom 17 17% % 12 12% % Cosmetics & toiletries Cosmetics & toiletries 11 11% % 6 6% % Retail & Retail & s services ervices 6 6% % 6 6% % Entertainment Entertainment 4 4% % 6 6% % Realty Realty 4 4% % 6 6% % Health products Health products 4 4% % 4 4% % Alcohol Alcohol 3% 4% 3% 4% Clothes & ornaments Clothes & ornaments 2 2% % 4 4% %

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Operating Leverage

% Turnover % Turnover 1H0 1H09 9 1H 1H10 10 Direct Costs Direct Costs

• Rental

Rental 28 28 26 26

• Maintenance

Maintenance 8 8 8 8

• Electricity

Electricity 5 5 4 4

• Sales & Cultural Tax

Sales & Cultural Tax 8 8 8 8 Subtotal Subtotal 49 49 46 46 Amortisation Amortisation + Depreciation + Depreciation 22 22 20 20 SG & A SG & A and other expenses and other expenses* * 21 21 20 20 Total Expenses Total Expenses 92 92% % 86 86% %

*Excluded share option expense adjustment.

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Trade Receivables

Jun 30, 2009 Jun 30, 2009 Dec 31, 2009 Dec 31, 2009 Jun 30, 2010 Jun 30, 2010 Current Current – – 90 days 90 days 199 199 182 182 215 215 91 91 – – 180 days 180 days 98 98 127 127 98 98 Over 180 days Over 180 days 207 207 102 102 151 151 504 504 411 411 464 464 Less: Provision for impairment Less: Provision for impairment (33) (33) (37) (37) (43) (43) 3rd party receivables 3rd party receivables 471 471 374 374 421 421 Turnover days (Time wt. avg.) Turnover days (Time wt. avg.) 161 days 161 days 125 days 125 days 129 days 129 days Due from GWH Due from GWH 117 117 129 129 162 162

(HK$ (HK$’ ’M) M)

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Healthy Cash Flow

(HK$ (HK$’ ’M) M)

1H09 1H09 1H10 1H10

Net cash flows from operating activities Net cash flows from operating activities 29 29 105 105 Net cash flows used in investing activities Net cash flows used in investing activities (50) (50) (141) (141) Net cash flows from financing activities Net cash flows from financing activities 45 45 56 56 Net increase in cash & cash equivalents Net increase in cash & cash equivalents 24 24 20 20 Net cash & cash equivalents Net cash & cash equivalents at the beginning of period at the beginning of period 210 210 421 421 at the end of period at the end of period 234 234 441 441

*Free cash flow is defined as EBITDA (before equity-settled share option expenses) less cash outflow on capital expenditure, less income tax and net interest expense.

Free Cash Flow* Free Cash Flow* 100 100 40 40

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Strong Balance Sheet

(HK$ (HK$’ ’M) M)

Dec 31, 2009 Dec 31, 2009 Jun 30, 2010 Jun 30, 2010 Cash & cash equivalents Cash & cash equivalents 421 421 441 441 Current assets Current assets 1,263 1,263 1,315 1,315 Total assets Total assets 2,914 2,914 3,010 3,010 Current liabilities Current liabilities 359 359 347 347 Total liabilities Total liabilities 376 376 372 372 Net equity Net equity 2,538 2,538 2,638 2,638

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REVIEW OF STRATEGY & EXECUTION

Jing Han, CEO Harrison Zhang, COO

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1H10 Highlights

• China leads the way in global economic recovery

China leads the way in global economic recovery

• Stimulating policies & acceleration of

Stimulating policies & acceleration of urbanisation urbanisation

• Domestic consumption drives China economic growth

Domestic consumption drives China economic growth

• Chinese brands & local advertisers increase ad spend

Chinese brands & local advertisers increase ad spend

• World Expo and Asian Games boost demand

World Expo and Asian Games boost demand

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• Aggregate revenue from BJ, SH, GZ up 9% to HK$293m

Aggregate revenue from BJ, SH, GZ up 9% to HK$293m

• BJ:

BJ: Occupancy rate improved to 57% Occupancy rate improved to 57%

• SH: Revenue +42%

SH: Revenue +42%

• GZ: Asian Games in 2H 2010

GZ: Asian Games in 2H 2010

• Mid

Mid-

• tier cities: Revenue up 13% to HK$249m

tier cities: Revenue up 13% to HK$249m

• District sales offices attract local advertisers

District sales offices attract local advertisers

1H10 Business Performance

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• China outdoor market continues to enjoy healthy growth

China outdoor market continues to enjoy healthy growth

• Shanghai World Expo and Guangzhou Asian Games

Shanghai World Expo and Guangzhou Asian Games

• Order book to

Order book to-

• date nearly 80%

date nearly 80%

• Enhance district sales

Enhance district sales centres centres to cultivate new local advertisers to cultivate new local advertisers

• Strive for optimal balance between ASP & occupancy rate

Strive for optimal balance between ASP & occupancy rate

2H10 Outlook

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• Continue to expand bus shelter network

Continue to expand bus shelter network

• Invest in profitable cities in

Invest in profitable cities in-

• depth

depth

• Explore M&A opportunities

Explore M&A opportunities

• Maintain leading position in China outdoor market

Maintain leading position in China outdoor market

2H10 Outlook (cont’d)

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Questions & Answers Questions & Answers

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Appendix Appendix

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Power of Our Network

(For six months ended 30 June 2010)

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

st tier cities

tier cities Beijing Beijing Shanghai Shanghai Guangzhou Guangzhou (4) (4)% % 46 46% % 9 9% % 12 12% % 57 57% % 47 47% % 56 56% % 54 54% % (5)% (5)% 3 3% % (4) (4)% % (3) (3)% % 2 2% % 42 42% % (7) (7)% % 9 9% % 2 2nd

nd tier cities

tier cities 16 16% % 57 57% % (7) (7)% % 13 13% % TOTAL TOTAL 14% 14% 56 56% % (5) (5)% % 11% 11%