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

ANNUAL RESULTS 2010 1

Forward- -looking statements looking statements Forward This presentation and subsequent discussion may This presentation and subsequent discussion may contain certain forward- -looking statements with respect looking statements with respect contain certain forward to the financial condition, results of operations and to the financial condition, results of operations and business of Clear Media. These forward- -looking looking business of Clear Media. These forward statements represent Clear Media’ ’s expectations or s expectations or statements represent Clear Media 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. 2

INTRODUCTION William Eccleshare Deputy Chairman 3

FINANCIAL REVIEW Teo Hong Kiong CFO 4

FY10 Performance (HK$’ ’M M) ) (HK$ FY0 09 9 FY10 FY FY10 YOY YOY Turnover 1,118 1,262 13% Turnover 1,118 1,262 13% 6% 6% Total costs* 738 781 Total costs* 738 781 Loss on disposal & write- -down of down of Loss on disposal & write 87 8 87 8 concession rights & other assets concession rights & other assets EBITDA 293 473 EBITDA 293 473 61% 61% Amortisation & depreciation & depreciation 236 246 Amortisation 236 246 4% 4% EBIT 57 227 EBIT 57 227 298% 298% Net Profit 31 166 431% Net Profit 31 166 431% 429% EPS EPS 5.96 cents 5.96 cents 31.50 cents 31.50 cents 429% 5 *Total costs included Share Option Expense Adjustment in 2010.

FY10 Normalised Performance (HK$’ ’M M) ) YOY (HK$ YOY FY0 09 9 FY10 FY FY10 Turnover 1,118 1,262 Turnover 1,118 1,262 13% 13% EBITDA* 380 460 EBITDA* 380 460 21% 21% EBIT* 144 215 EBIT* 144 215 49% 49% Net Profit* 92 151 Net Profit* 92 151 64% 64% FY0 09 9 FY10 FY FY10 EBITDA Margin 34% 37% % EBITDA Margin 34% 37 Net Profit Margin 8% 12% % Net Profit Margin 8% 12 6 *Excluded one-off loss on disposal & write-down of concession rights & other assets and Share Option Expense Adjustment in 2010.

Performance by Activities (HK$’ ’M M) ) (HK$ Bus Shenzhen Other Bus Shenzhen Other Shelter Bus Body Formats Shelter Bus Body Formats HQ* * Total HQ Total Revenue 1,173 87 2 - 1,262 Revenue 1,173 87 2 - 1,262 EBITDA 492 (6) (1) (12) 473 EBITDA 492 (6) (1) (12) 473 EBIT 247 (7) (1) (12) 227 EBIT 247 (7) (1) (12) 227 Net Profit/(Loss) /(Loss) 186 (5) (1) (14) 166 Net Profit 186 (5) (1) (14) 166 7 *Included HK$20m Share Option Expense Adjustment in 2010.

Revenue By Location FY20 2009 09 FY FY20 2010 10 FY Beijing Beijing 25% 24% Others Others 46% 46% Shanghai 13% Shanghai 15% Guangzhou Guangzhou 16% 15% 8

Revenue By Industry FY200 2009 9 FY20 2010 10 FY FY Beverage 24% % 17% % Beverage 24 17 Food 9% % 16% % Food 9 16 Telecom 17% % 13% % Telecom 17 13 Entertainment 5% % 8% % Entertainment 5 8 Clothes & ornaments 3% % 7% % Clothes & ornaments 3 7 Business/Consumer services 6% % 6% % Business/Consumer services 6 6 Realty 4% % 6% % Realty 4 6 Cosmetics 9% % 6% % Cosmetics 9 6 Health products 4% 5% Health products 4% 5% Alcohol 3% % 3% % Alcohol 3 3 9

Cautious Cost Control FY09 FY10 FY09 FY10 YoY YoY ( HK HK $ $’ ’ M M ) ) ( Rental 287 308 Rental 287 308 7% 7% Maintenance 86 100 Maintenance 86 100 16% 16% Electricity 47 51 Electricity 47 51 7% 7% Sales & Cultural Tax 85 101 Sales & Cultural Tax 85 101 20% 20% Direct operating costs 505 560 Direct operating costs 505 560 11% 11% SG & A and other expenses and other expenses* * 233 241 SG & A 233 241 3% 3% Total costs* 738 801 Total costs* 738 801 9% 9% 10 *Excluded one-off loss on disposal & write-down of concession rights & other assets and Share Option Expense Adjustment in 2010.

Operating Leverage % Turnover % Turnover FY0 09 9 FY10 FY FY10 Direct Costs Direct Costs - Rental Rental 26 24 - 26 24 - Maintenance Maintenance 8 8 - 8 8 - Electricity Electricity 4 4 - 4 4 - Sales & Cultural Tax Sales & Cultural Tax 8 8 - 8 8 Subtotal 46 44 Subtotal 46 44 Amortisation + Depreciation + Depreciation 21 19 Amortisation 21 19 SG & A and other expenses and other expenses* * 21 19 SG & A 21 19 Total Expenses 88% % 82% % Total Expenses 88 82 11 *Excluded one-off loss on disposal & write-down of concession rights & other assets and Share Option Expense Adjustment in 2010.

Trade Receivables Dec 31, 200 2009 9 Dec 31, 20 2010 10 Dec 31, Dec 31, (HK$’ ’M M) ) (HK$ Current - - 90 days 90 days 182 221 Current 182 221 91 – – 180 days 180 days 127 135 91 127 135 Over 180 days 102 128 Over 180 days 102 128 411 484 411 484 Less: Provision for impairment (37) (39) Less: Provision for impairment (37) (39) 3rd p party arty r receivables eceivables 374 445 3rd 374 445 Turnover days (Time Time w wt. t. a av vg g. .) ) 125 25 days days 119 days days Turnover days ( 1 119 Due from GWH GWH 130 142 Due from 130 142 12

Healthy Cash Flow (HK$’ ’M) M) FY09 FY10 (HK$ FY09 FY10 Net cash flows from operating activities 382 478 Net cash flows from operating activities 382 478 Net cash flows used in investing activities (176) (261) Net cash flows used in investing activities (176) (261) Net cash flows from financing activities 5 33 Net cash flows from financing activities 5 33 Net increase in cash & cash equivalents 211 250 Net increase in cash & cash equivalents 211 250 Net cash & cash equivalents Net cash & cash equivalents at the beginning of year 210 421 at the beginning of year 210 421 at the end of year 421 671 at the end of year 421 671 Free Cash Flow* Free Cash Flow* 165 151 165 151 *Free cash flow is defined as EBITDA (before loss on disposal & write-down of concession rights & other assets and equity-settled share option expenses) less cash outflow on capital expenditure, 13 less income tax and net interest expense.

Strong Balance Sheet (HK$’ ’M) M) (HK$ Dec 31, 2009 Dec 31, 2010 Dec 31, 2009 Dec 31, 2010 Cash & cash equivalents 421 671 Cash & cash equivalents 421 671 Current assets 1,263 1,554 Current assets 1,263 1,554 Total assets 2,914 3,253 Total assets 2,914 3,253 Current liabilities 359 406 Current liabilities 359 406 Net equity 2,538 2,806 Net equity 2,538 2,806 14

REVIEW OF STRATEGY & EXECUTION Han Zi Jing , CEO Harrison Zhang , COO 15

2010 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 16

2010 Business Performance � Aggregate revenue from BJ, SH, GZ up 15% to HK$637m � Aggregate revenue from BJ, SH, GZ up 15% to HK$637m • BJ: • BJ: Balancing between ASP and occupancy Balancing between ASP and occupancy • SH: Strong performance driven by World Expo • SH: Strong performance driven by World Expo • GZ: Asian Games in 2H 2010 • GZ: Asian Games in 2H 2010 � Mid � Mid- -tier cities: Revenue up 12% to HK$536m tier cities: Revenue up 12% to HK$536m • District sales offices attract local advertisers • District sales offices attract local advertisers 17

Power of our Network (For the year ended 31 Dec 2010) Avg Avg Panel Panel A.S.P. Occupancy Sales A.S.P. Occupancy Sales No. No. st tier cities 1 st tier cities 1 Beijing 2% % 62% % (4)% % 9% % Beijing 2 62 (4) 9 Shanghai 9% % 52% % 14% % 30% % Shanghai 9 52 14 30 Guangzhou 8% % 61% (1)% % 11% % Guangzhou 8 61% (1) 11 6% % 59% % 1% % 15% % 6 59 1 15 nd tier cities 8% % 62% % (5)% % 12% % 2 nd tier cities 2 8 62 (5) 12 TOTAL 8% 61% % (2)% % 13% TOTAL 8% 61 (2) 13% 18

2011 Outlook � Favourable � Favourable gov gov’ ’t t policies & economic environment policies & economic environment � Increasing advertisers and consumer spending � Increasing advertisers and consumer spending � China outdoor market continues to enjoy healthy growth � China outdoor market continues to enjoy healthy growth � Competition from local & metro media operators � Competition from local & metro media operators 19