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

INTERIM 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

3 INTRODUCTION Deputy Chairman Peter Cosgrove

4 FINANCIAL REVIEW Teo Hong Kiong CFO

1H10 Performance (HK$’ ’M M) ) YOY (HK$ 1H09 1H10 10 YOY 1H09 1H Turnover 527 585 Turnover 527 585 11% 11% Total costs* 369 369 Total costs* 369 369 - - EBITDA 158 216 EBITDA 158 216 37% 37% 1% Amortisation & depreciation & depreciation 118 119 1% Amortisation 118 119 142% 142% EBIT 40 97 EBIT 40 97 Net Profit 28 77 Net Profit 28 77 172% 172% EPS 5.43 cents 14.72 cents EPS 5.43 cents 14.72 cents 5 *Total costs included share option expense adjustment in 1H2010.

1H10 Normalised Performance YOY (HK$’ ’M M) ) YOY (HK$ 1H09 1H10 1H09 1H10 Turnover 527 585 11% Turnover 527 585 11% EBITDA* 158 196 EBITDA* 158 196 25% 25% EBIT* 40 77 EBIT* 40 77 92% 92% Net Profit* 28 57 Net Profit* 28 57 101% 101% 1H0 09 1H10 9 1H10 1H EBITDA Margin 30% 34% % EBITDA Margin 30% 34 Net Profit Margin 5% 10% % Net Profit Margin 5% 10 6 *Excluded share option expense adjustment.

Performance by Activities Bus Shenzhen Other Bus Shenzhen Other (HK$’ ’M M) ) (HK$ Shelter Bus Body Formats Shelter Bus Body Formats HQ* * Total HQ Total Revenue 542 42 1 - 585 Revenue 542 42 1 - 585 EBITDA 213 (3) (1) 7 216 EBITDA 213 (3) (1) 7 216 EBIT 95 (4) (1) 7 97 EBIT 95 (4) (1) 7 97 Net 75 (3) (1) 6 77 Net 75 (3) (1) 6 77 Profit/(Loss) /(Loss) Profit 7 *Included share option expense adjustment.

Shanghai 8 17% Beijing 23% Guangzhou 1H2010 10 14% 1H20 Others 46% Revenue By Location Shanghai 13% Beijing 26% Guangzhou 16% 1H2009 9 1H200 Others 45%

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

Operating Leverage % Turnover % Turnover 1H09 9 1H10 10 1H0 1H Direct Costs Direct Costs - Rental Rental 28 26 - 28 26 - Maintenance Maintenance 8 8 - 8 8 - Electricity Electricity 5 4 - 5 4 - Sales & Cultural Tax Sales & Cultural Tax 8 8 - 8 8 Subtotal 49 46 Subtotal 49 46 Amortisation + Depreciation + Depreciation 22 20 Amortisation 22 20 SG & A and other expenses and other expenses* * 21 20 SG & A 21 20 Total Expenses 92% % 86% % Total Expenses 92 86 10 *Excluded share option expense adjustment.

Trade Receivables (HK$’ (HK$ ’M) M) Jun 30, 2009 Jun 30, 2009 Dec 31, 2009 Dec 31, 2009 Jun 30, 2010 Jun 30, 2010 Current – – 90 days 90 days 199 182 215 Current 199 182 215 91 – – 180 days 180 days 98 127 98 91 98 127 98 Over 180 days 207 102 151 Over 180 days 207 102 151 504 411 464 504 411 464 Less: Provision for impairment (33) (37) (43) Less: Provision for impairment (33) (37) (43) 3rd party receivables 3rd party receivables 471 471 374 374 421 421 Turnover days (Time wt. avg.) 161 days 125 days 129 days Turnover days (Time wt. avg.) 161 days 125 days 129 days Due from GWH Due from GWH 117 117 129 129 162 162 11

Healthy Cash Flow (HK$’ ’M) M) 1H09 1H10 (HK$ 1H09 1H10 Net cash flows from operating activities 29 105 Net cash flows from operating activities 29 105 Net cash flows used in investing activities (50) (141) Net cash flows used in investing activities (50) (141) Net cash flows from financing activities 45 56 Net cash flows from financing activities 45 56 Net increase in cash & cash equivalents 24 20 Net increase in cash & cash equivalents 24 20 Net cash & cash equivalents Net cash & cash equivalents at the beginning of period 210 421 at the beginning of period 210 421 at the end of period 234 441 at the end of period 234 441 Free Cash Flow* Free Cash Flow* 100 40 100 40 *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. 12

Strong Balance Sheet (HK$’ ’M) M) (HK$ Dec 31, 2009 Jun 30, 2010 Dec 31, 2009 Jun 30, 2010 Cash & cash equivalents 421 441 Cash & cash equivalents 421 441 Current assets 1,263 1,315 Current assets 1,263 1,315 Total assets 2,914 3,010 Total assets 2,914 3,010 Current liabilities 359 347 Current liabilities 359 347 Total liabilities 376 372 Total liabilities 376 372 Net equity 2,538 2,638 Net equity 2,538 2,638 13

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

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 15

1H10 Business Performance � 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 16

2H10 Outlook � 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 17

2H10 Outlook (cont’d) � 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 18

19 Questions & Answers Questions & Answers

20 Appendix Appendix

Power of Our Network (For six months ended 30 June 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 (4)% % 57% % (5)% 2% % Beijing (4) 57 (5)% 2 Shanghai 46% % 47% % 3% % 42% % Shanghai 46 47 3 42 Guangzhou 9% % 56% % (4)% % (7)% % Guangzhou 9 56 (4) (7) 12% % 54% % (3)% % 9% % 12 54 (3) 9 nd tier cities 16% % 57% % (7)% % 13% % 2 nd tier cities 2 16 57 (7) 13 TOTAL 14% 56% % (5)% % 11% TOTAL 14% 56 (5) 11% 21