Goldman Sachs and Gao Hua China Investment Frontier Conference 2011

Transcription

1 Goldman Sachs and Gao Hua China Investment Frontier Conference

2 Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Clear Media. These forward-looking statements represent Clear Media s s expectations or beliefs concerning future events and involving known and unknown risks and uncertainties which could cause actual results, performance or events to differ materially from those expressed or implied in such statements. 2

3 Integrating the World s Best Practice CLEARCHANNEL WORLDWIDE World's leading out-of of-home media/ entertainment company CCO: World s s largest outdoor advertiser NYSE listed 3

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5 Our 13 Years Track Record 1400 Turnover (HK$ m) ,260 1,262 1, *For six months ended 30 June 2011 * 5

6 Take Control of Outdoor 36% 27% Media Mix 13% 12% 5% 7% TV Newspaper/ Magazine Outdoor Internet Radio Others Data Source: SAIC 2010, Company estimates 6

7 Leader in China s Outdoor Advertising Standardized media network 28-city national coverage #1 in all key cities Regional Sales Center 7

8 Mass Medium of Choice Standardized Network Low cost-per per-thousand Highly visible always on Only sector opens to foreign investors Growing outdoor audience 8

9 Secure Long Term Supply National MOFCOM & SAIC approvals Long-term contracts w/ local governments Exclusive & low cost guarantee Retain 100% of ad revenues 9

10 Showcase Top Consumer Brands in China 10

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12 REVIEW OF STRATEGY & EXECUTION 12

13 1H11 Highlights China economic growth continues despite tightening measures to contain inflation Domestic demand being one of the engines behind economic growth Urbanization helps fuel growth in major cities Chinese brands & local advertisers increase ad spend More advertisers expand into 2 nd & 3 rd tier cities Higher competitive pressure in Shanghai post World Expo 13

14 1H11 Business Performance by Location Total revenue from BJ, SH, GZ up 20% YoY to HK$352m BJ: Revenue +33% with improvement on both ASP & occupancy rate GZ: Revenue +38% with improvement on both ASP & occupancy rate SH: Revenue +42% with Shanghai World Expo in 1H10 Revenue -11% in 1H11 without major event Mid-tier cities: Revenue up 11% YoY to HK$278m 14

15 Revenue by Industry 1H10 1H11 Beverages 25% 25% Food 12% 13% Telecommunications 12% 11% Fashion & ornaments 4% 11% Entertainment 6% 9% Information Technology 3% 6% Realty 6% 5% Business / Consumer services 6% 5% Cosmetics & Toiletries 6% 4% Pharmaceuticals / Health products 4% 4% 15

16 2H11 Outlook Leverage on rising private consumption Strengthen leading position in nation-wide outdoor market Re-invest in network expansion Increase bus shelter panel number through: - organic build-out - mergers & acquisitions 16

17 2H11 Outlook (con td) Further optimize ASP & occupancy rate Explore alternative advertising platforms & emerging technology for display panel profitably Revenue from Shanghai post World Expo to recover 17

18 FINANCIAL REVIEW For the year ended 30 June

19 1H11 Consolidated Income Statement (HK$ M) 1H H11 11 YoY % Turnover % Cost of sales, excluding amortization (272) (322) +19% Operating expenditure, excluding depreciation & amortization (97)* (126) +30%* EBITDA % Depreciation & amortization (119) (133) +12% EBIT % Net profit % Basic EPS (HK cents) % *Operating expenditure, excluding depreciation & amortization, includes the Share Option Expense Adjustment booked in 1H10 19

20 1H11 Consolidated Income Statement, excluding the Share Option Expense Adjustment Booked in 1H10 (HK$ M) 1H H11 11 YoY % Turnover % Cost of sales, excluding amortization (272) (322) +19% Operating expenditure, excluding depreciation & amortization (117) (126) +8% EBITDA % Depreciation & amortization (119) (133) +12% EBIT % Net profit % 20

21 Performance by Activities (HK$ M) Bus Shelter Shenzhen Bus Body Other Formats HQ Total Revenue EBITDA (13) 243 EBIT (13) 110 Net Profit/(Loss) (14) 73 21

22 Revenue by Location 1H10 1H11 11 Beijing 23% Beijing 27% Others 46% Others 44% Shanghai 17% Shanghai 13% Guangzhou 14% Guangzhou 16% 22

23 Costs & Expenses (HK$ M) 1H10* 1H11 Rental Maintenance Electricity Sales & Cultural Tax Direct operating costs S, G & A & other expenses Total costs & expenses, excluding depreciation & amortization *Exclude Share Option Expense Adjustment booked in 1H YoY % +17% +22% +11% +25% +19% +8% +15% 23

24 Trade Receivables (HK$ M) Jun 30, 2010 Dec 31, 2010 Jun 30, 2011 Current 90 days days Over 180 days Less: provision for impairment (43) (39) (40) 3rd party receivables Turnover days (time wt. avg.) 129 days 119 days 119 days Due from GWH

25 Increase in Cash Flows (HK$ M) 1H10 1H11 Net cash flows from operating activities Net cash flows used in investing activities (141) (52) Net cash flows from financing activities Net increase in cash & cash equivalents Net cash & cash equivalents at the beginning of period at the end of period Free Cash Flow* *Free cash flow is defined as EBITDA (before losses on disposal and write down of concession rights and other assets and equity-settled share option expenses) less cash outflow on capital expenditure, less income tax and net interest expense. 25

26 Appendix 26

27 Power of Our Network (For six months ended 30 June 2011) 1 st st tier cities Beijing Shanghai Guangzhou A.S.P. 14% 28% 13% 1% Occupancy 66% 50% 59% 60% Avg Panel No. 17% 17% 9% Sales 33% 11% 38% 20% 2 nd nd tier cities 4% 61% 1% 11% TOTAL 4% 61% 3% 16% 27