Clear Media Limited

Annual Results 2001

Annual Results 2001

Agenda

• Highlights

• Review of Financials

• Year 2002 Action Plan

Delivering Our Commitments

Revenue +37%

EBITDA+39%

Net Profit +41%

EPS +41%

• Reduced Accounts Receivable Days

• Sustained High EBITDA & Net Profit Margin

YOY2001Strong Performance

Key Accomplishments - Bus Shelters

• Built 2,240 panels… Acquired 1,262 panels

• Expanded to 29-city network

• Drive our leadership … Focus on package sales

Key Growth Drivers - Bus Shelters

2001

# of 12-sheet equivalent panels: 11,698 +43%

Average monthly occupancy rate 72%

2001 Key Developments - Point-of-Sale

• Signed Shanghai’s largest supermarket chai

n – Luen Hua 聯華• Signed 21 shopping malls in Beijing, Shang

hai, Guangzhou & Shenzhen

Dynamic Market Forces

• China’s advertising industry out-performs

global market…grew faster than GDP

• New Target Industries: Entertainment,

Leisure, Finance…

• Clear Media “pro-active” growth initiatives

Review of Financials

Income Statement Highlights

2001HK$’000

2000HK$’000

% Change

Revenues 355,004 260,038 +37%

EBITDA 153,556 110,636 +39%

Operating Profit 95,931 70,029 +37%

Net Profit 58,906 41,690 +41%

EPS(HKcents)1 11.78 8.34 +41%1EPS is calculated based on the assumption that 500,000,500 shares were deemed to have been in issue and issuable during the year ended 2001 and 2000

Revenue By Product and By Location

2001 2001

By Product By Location

Bus Shelters- 96%

Point-of-Sale

1%

Billboards3%

Beijing

21%

Shenzhen 6%

Shanghai

19%Guangzhou

13%

Others 41%

Revenue By IndustrySector 2001 2000

Telecom 20.0 15.8Consumer Products 16.0 21.0Tobacco 12.6 7.2Beverages 10.1 3.6OTC Pharmaceutical 9.7 -Home Appliances 7.3 8.6IT 5.7 26.4Finance 4.0 2.4Leisure 3.1 1.3Food 3.1 5.3

Consistent Strong Margins

2001 2000

EBITDA Margin 43% 43%

Operating Profit Margin 27% 27%

Net Profit Margin 17% 16%

Cost BreakdownPercentage of Turnover

2001 2000Direct operating costs

- Rent

- Maintenance

- Electricity

- Sales and culture taxes

Total

17

8

5

8

38

17

8

5

8

38

Amortization of concession rights and point-of-sale

18 18

Selling, general and administrative expenses

Depreciation of fixed assets

19

1

20

1

Total Expenses 76 77

Balance Sheet Highlights2001

HK$’000

2000

HK$’000

Cash and cash equivalents 809,411 67,402

Total assets 1,846,593 881,681

Total debt1 255,947 248,963

Total shareholders’ equity 1,129,798 354,9781Net of pledged time deposits

Cash Flow Data2001

HK$’0002000

HK$’000Cash from Operating Activities 247,894 122,274

Cash from Investing Activities (246,095) (117,511)

Cash from Financing Activities 781,033 64,438

Cash from Returns on Investments and Servicing of Finance

Tax Paid

(39,192)

(1,631)

(14,834)

-

Net Cash and Cash Equivalents at Beginning of Year

67,402 13,035

Net Cash and Cash Equivalents at Year End

809,411 67,402

Accounts Receivable Analysis

As at December

2001

As at October

2001

As at December

2000

Accounts Receivable from Third Party Customers

147 days 177 days 140 days

Amount due from WHA

138 days 170 days 270 days

Year 2002 Action PlanAnd Progress

Development and Action Plan

• Conducted detailed survey on media

resources available in the country

• Pave the way for our future build and

acquisition plan

Development and Action Plan - Bus Shelter

• Plan to build 2,000 12-sheet equivalent panels in around 20 cities in 2002

• Enhance our market share and improve our nation-wide network’s competitive power

• Already built around 1,000 12-sheet equivalent panels in Q1 2002

Build Plan:

Development and Action Plan - Bus ShelterAcquisition:

• Plan to acquire around 2,000 12 sheet equivalent panels in 2002

• Initiate acquisitions in 3 key cities and other locations

• Strengthen our sales force to better service our clients

• Acquisitions at 3 – 5 times EBITDA

Development and Action Plan - Point-of-Sale• Signed contract with about 200 supermarkets in S

hanghai and installed 400 lightboxes• Plan to expand the number of supermarkets to aro

und 400 to 600 stores in 2002

Clear Media Limited

Annual Results 2001

Annual Results 2001