2002 Annual Results Presentation Clear Media

Agenda HighlightsHighlights Review of FinancialsReview of Financials Review of Strategy & ExecutionReview of Strategy & Execution

5 th Year of Growth 2002 HK$’000% Change Revenue426,917+20% EBITDA180,222+17% Net Profit71,106+21% EPS14.2cents+21% 2002 EBITDA Margin42% Net Profit Margin17%

Five Consecutive Years of Growth ‘000 Sustainable Margin EBITDA42% Net Profit17%

Revenue403,774+18% EBITDA194,021+22% Net Profit90,420+33% Bus Shelters Revenue16, % EBITDA4, % Net Profit1, % Point-of-Sale 2002 HK$’000% Change Profit from Core Products

“ Revenue ” Focus on Growth Driver: “ Revenue ” 2002 YOY% Guangzhou+37% Shenzhen+29% Chengdu+53% Xian+46% Hangzhou+27% Shenyang+84% Cheungchun+24% Total+20%

“ Occupancy ” Focus on Growth Driver: “ Occupancy ” Beijing69%86% Shenzhen77%87% Chengdu71%85% Hangzhou 80% 84% Nanjing 64%71% Chongqing 68%79%

“ Pricing Power ” Focus on Growth Driver: “ Pricing Power ” Market Share % of Panels% of AD$ Beijing41%60% Premium pricing VS local competitors

Network expansion 29 cities30 cities 12,00017,000 panels Strengthen sales force Add 83 professionals 6 new sales centres Broaden point-of-sale network Invest for the Future

2003 Growth Drivers External: WTO … Olympic … Shanghai EXPO … Brand(s)Consumers(s)Internal: Innovative “packages”Advertisers’ needs Broaden product portfolio Improve asset yields

Review of Financials

Performance by All Activities Bus Shelter POS Billboard HQ Total HK$’000 Revenue 403,77416,2206,922426,916 EBITDA 194,0214,419(2,275)(15,943)180,222 Net Profit 89,6431,936(4,530)(15,943)71,106

Performance by Activity Total % Change Revenue342,181403,774+18% EBITDA159,588194,021+22% Net Profit68,15289,643+33% Bus Shelters Growth Albeit Lowering Receivables EBITDA Margin47%48% Net Profit Margin20%22%

Revenue By Location Beijing 20% Guangzhou 13% Shanghai 19% Shenzhen 6% Others 42% Beijing 19% Guangzhou 15% Shanghai 14% Shenzhen 7% Others 45%

Market Share in Top Ten Cities Shanghai97%98% Guangzhou54%96% Beijing51%41% Shenzhen43% Chengdu45%68% Nanjing76%90% Xian97%100% Hangzhou94%95% Wuhan44%59% Kunming85%78% Based on the number of panels Market Shares Increased in Key Cities

Turnover By Industry Telecom20%24% Beverages10%18% Consumer Products16%14% Tobacco13%7% OTC Pharmaceutical10%6% Leisure3%6% Finance4%3% Food3% IT6%3% Home Appliances7%2%

Cost Breakdown % of Revenue Direct operating costs - Rent - Maintenance - Electricity - Sales and culture taxes Total 18% 7% 5% 8% 38% 19% 7% 6% 4% 36% Amortization of concession rights & point-of-sale 18%21% Selling, general & administrative expenses Depreciation of fixed assets 19% 1% 22% 1% Total Expenses76%80%

Accounts Receivable Back on Track 20011H rd Party Receivables (HK$’000) 85,493102,236113,612 Turnover Day Due from WHA (HK$’000) 52,58198,92049,804 % of sales from WHA 25%16%

Cash Flow Data 2001 HK$’ HK$’000 Cash flows from Operating Activities - Cash generated from operations247,894100,575 - Interest paid(21,757)(8,625) - Income taxes paid(1,631)(7,624) 224,50684,326 Cash flows from Investing Activities - Purchase of fixed assets(19,896)(17,280) - Additions to concession rights(226,199)(353,819) - Interest received5,16511,807 (240,930)(359,292) Cash flows from Financing Activities758,433(267,287) Net (decrease)/increase in cash & cash equivalents742,009(543,638) Net cash & cash equivalents at beginning of year67,402809,411 Net cash & cash equivalents at end of year809,411267,158

Balance Sheet Highlights 2001 HK$’ HK$’000 Cash and cash equivalents 809,411267,158 Total assets1,846,5931,525,052 Total debt 1 255,94710,794 Total shareholders’ equity 1,129,7981,209,750 1 Net of pledged time deposits

Review of Strategy & Execution

Investing for Future Growth Total number of panels increased to 17,210 Total number of panels added in 2002 Tier 1 cities+1,666+36% Mid Tier cities+3,846+55% Total+5,512 Continue to increase 2,000 panels in % Change Capex (HK$’000)271,300309,227+14% Bus Shelters

New Sales Initiatives new sales centers to further penetrate market 2.New sales organization to strengthen sales force, & improve efficiency 3.New interactive pricing system to offer flexibility to advertisers 4.Innovative sales packages to satisfy advertisers’ needs Proactive Initiatives …

Sales Centre Regional Centre Shenyang Beijing Xian Chengdu WuhanShanghai Guangzhou Shenzhen New Sales Centers to Enhance Customer Supports Qingdao

Continue to negotiate with authorities to reduce costs Replace with cost-effective quality panel materials Further improve cash collection Benchmark SG & A expenses Continue to Improve Operating Efficiency

Complementary to bus shelter advertising Increased 48% advertising space to 4,200M Built:400 panels in Lian Hua supermarket stores 175 panels in Jie Qiang supermarket stores In negotiation with supermarket chains for additional space Capex (HK$’000)22,4388,336 2 Investing for Future Growth Point-of-Sale

2003 Going Forward …

Thank you! Clear Media