Interim 2003.ppt [Read-Only] - Clear Media 2003_ppt.pdfInterim Results 2003 Clear Media üHighlights...
Transcript of Interim 2003.ppt [Read-Only] - Clear Media 2003_ppt.pdfInterim Results 2003 Clear Media üHighlights...
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Interim Results 2003Interim Results 2003
Clear Media
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üü HighlightsHighlights
üü Review of FinancialsReview of Financials
üü Review of Strategy & ExecutionReview of Strategy & Execution
üü Questions & AnswersQuestions & Answers
AgendaAgenda
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1H20031H20031H20021H2002
67%67%65%65%OccupancyOccupancy17,48817,48814,67214,672PanelsPanels
* Time weighted* Time weighted
What is Different ?What is Different ?
154154193193A/R *A/R *
DaysDaysDaysDays
15%15%7.5%7.5%Corporate Income Tax RateCorporate Income Tax Rate
25,07125,071(158,225)(158,225)Free Cash FlowFree Cash Flow ((‘‘000)000)
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Into our 6Into our 6thth Consecutive Year of GrowthConsecutive Year of Growth
+21%+21%37m37mEBITEBIT
+1%+1%5.42 cents5.42 centsEPSEPS+1%+1%27m27mNet ProfitNet Profit
+21%+21%89m89mEBITDAEBITDA+11.3%+11.3%218m218mTurnoverTurnover
% Change% ChangeHK$HK$1H 20031H 2003
Accelerate our Industry LeadershipAccelerate our Industry Leadership…… OutOut--perform All our Competitorsperform All our Competitors
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% Change% ChangeHK$HK$’’000000
+21%+21%50,91250,912EBITEBIT+6%+6%39,99339,993Net Profit Net Profit
+12%+12%209,919209,919TurnoverTurnover
+21%+21%99,04999,049EBITDAEBITDA
Bus SheltersBus SheltersProfit from Core ProductsProfit from Core Products
1H20021H2002 1H2003 1H2003 EBITDA MarginEBITDA Margin 44%44% 47% 47% Net Profit MarginNet Profit Margin 20%20% 19%19%
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Focus on Growth Driver: ““ RevenueRevenue ””
53%53%Zhong Zhong ShanShan40%40%KunmingKunming
64%64%GuangzhouGuangzhou
116%116%ShenyangShenyang
34%34%NanjingNanjing
51%51%ChengduChengdu
215%215%HaHa’’erbinerbin269%269%ShijiazhuangShijiazhuang
2003 YOY%2003 YOY%
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Focus on Growth Driver: ““OccupancyOccupancy ””
92%92%69%69%HaHa’’erbinerbin69%69%57%57%KunmingKunming83%83%60%60%NanjingNanjing84%84%82%82%HangzhouHangzhou87%87%80%80%ChengduChengdu
69%69%62%62%GuangzhouGuangzhou70%70%74%74%BeijingBeijing73%73%68%68%ShanghaiShanghai1H20031H20031H20021H2002
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Focus on Growth Driver: ““ PricingPricing ””
+5%+5%
+27%+27%
+45%+45%Nan ChangNan Chang% Change% Change
+5%+5%XianXianNanjingNanjing
+27%+27%FuzhouFuzhou
+19%+19%HangzhouHangzhou+16%+16%ChangshaChangsha
+20%+20%ChengduChengduWuxiWuxi
1H 2003 VS 2H 20021H 2003 VS 2H 2002
Potential for Price Increase Potential for Price Increase in select 1in select 1stst & Mid& Mid--tier citiestier cities
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Focus on Growth Driver: ““Market Share Market Share ““
* 3* 3--RingRing
100%100%100%100%XiXi’’anan90%90%90%90%NanjingNanjing78%78%78%78%KunmingKunming96%96%95%95%HangzhouHangzhou
98%98%96%96%GuangzhouGuangzhou98%98%98%98%ShanghaiShanghai74%74%41%41%Beijing *Beijing *June 2003June 2003Dec 2002Dec 2002
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36%36%
26%26% 29%29%
9%9%
OthersOthersBillboardsBillboards TransitTransit Street FurnitureStreet Furniture
Lead the Largest & Fastest Growing Outdoor SectorLead the Largest & Fastest Growing Outdoor Sector
34%34%
23%23%
35%35%
7%7%
2001
2002
天時天時
地利地利 人和人和
GuangzhouGuangzhou
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üü Positive Regulatory Momentum Continues Positive Regulatory Momentum Continues ……
üü Solid Economic Rebound Solid Economic Rebound ……
üü Strong Order Book Strong Order Book …… 90%90%üü ““ScalableScalable”” Model Delivers Results Model Delivers Results ……
ØØ SG&ASG&A --12%12%ØØ @ Unit Direct Cost@ Unit Direct Cost --12%12%
üü 3Q Trending 25% YOY Growth 3Q Trending 25% YOY Growth
天時天時
地利地利
人和人和
2003 Growth Drivers2003 Growth Drivers
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üüWTO & CEPA fuels ad spend growthWTO & CEPA fuels ad spend growth
üü Beijing Olympic multiBeijing Olympic multi--year marketing launchyear marketing launch
üü Positive regulatory momentum benefits Clear MediaPositive regulatory momentum benefits Clear Media
üü Select earningSelect earning--accretive outdoor opportunitiesaccretive outdoor opportunities
Medium Term ProspectsMedium Term Prospects
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Review of FinancialsReview of Financials
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Financial PerformanceFinancial Performance
+21%+21%37,39337,39331,04031,040EBITEBIT
27,03727,037
73,30473,304
195,908195,9081H20021H2002
+1%+1%27,19927,199Net ProfitNet Profit
88,64688,646
218,064218,0641H20031H2003
+21%+21%EBITDAEBITDA
+11%+11%RevenueRevenue% Change% Change
1H20021H2002 1H20031H2003EBITDA MarginEBITDA Margin 37%37% 41%41%Net Profit MarginNet Profit Margin 14%14% 13%13%
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37,39337,393(7,584)(7,584)(2,703)(2,703)(3,232)(3,232)50,91250,912EBITEBIT
218,064218,0643,1273,1275,0205,020209,917209,917RevenueRevenue
27,19927,199(7,584)(7,584)(2,383)(2,383)(2,827)(2,827)39,99339,993Net ProfitNet Profit
88,64688,646(7,584)(7,584)(1,143)(1,143)(1,676)(1,676)99,04999,049EBITDAEBITDA
TotalTotalHQHQUnipoleUnipolePOSPOSBus Bus ShelterShelter
Performance by All ActivitiesPerformance by All Activities
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Bus Shelters96%
POS2%
Unipole2%
Bus Shelters96.3%
POS2.3%
Unipole1.4%
1H20021H2002 1H20031H2003
Revenue By ProductsRevenue By Products
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Beijing18%
Shanghai17%
Guangzhou12%Shenzhen
7%
Others46%
Beijing15.0%
Shanghai13.0%
Guangzhou17.0%
Shenzhen6.0%
Others49.0%
1H20021H2002 1H20031H2003
Revenue By LocationRevenue By Location
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1H 20021H 2002 1H20031H2003Telecom Telecom 23% 23% 24%24%Beverage Beverage 18% 18% 18%18%Consumer Product Consumer Product 15% 15% 17%17%IT IT 3% 3% 8%8%PharmaceuticalsPharmaceuticals 1% 1% 7%7%FinanceFinance 2%2% 3%3%EntertainmentEntertainment 9% 9% 3%3%Electric AppliancesElectric Appliances 1%1% 3%3%FoodFood 3%3% 3%3%TobaccoTobacco 10%10% 2%2%
Turnover By IndustryTurnover By Industry
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84848484Total ExpensesTotal Expenses17172121SG & ASG & A24242222Amortisation Amortisation + Depreciation+ Depreciation43434141SubtotalSubtotal9999-- Sales & Cultural TaxSales & Cultural Tax6655-- ElectricityElectricity6688-- MaintenanceMaintenance22221919-- RentalRental
Direct CostsDirect Costs1H 20031H 20031H 20021H 2002
% Turnover% TurnoverSignificant Cost SavingSignificant Cost Saving
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1H 20021H 2002 1H 20031H 200333rdrd Party Receivables Party Receivables 102,236 102,236 161,291161,291Turnover Day 193 days Turnover Day 193 days 154days154days
Due from WHA Due from WHA 98,920 98,920 46,47446,474% Sales from WHA % Sales from WHA 28.4%28.4% 7.6%7.6%
Accounts Receivable on TrackAccounts Receivable on Track
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1H20021H2002 1H20031H2003Cash flow from operating activitiesCash flow from operating activitiesCash generated from operations Cash generated from operations 11,839 11,839 45,47545,475Interest paid Interest paid (4,703) (4,703) (3,750) (3,750) Income tax paid Income tax paid (4,445) (4,445) (4,182)(4,182)Net cash from operating activities Net cash from operating activities 2,691 2,691 37,54337,543Cash outflows from investing activitiesCash outflows from investing activities ( 221,714) ( 221,714) (56,574) (56,574) Cash outflows from financing activitiesCash outflows from financing activities (265,897) (265,897) (11,275)(11,275)Net cash & cash equivalents Net cash & cash equivalents
at the beginning of period at the beginning of period 809,411 809,411 267,158267,158at the end of period at the end of period 324,491 324,491 236,852236,852
Substantial Improved Cash FlowSubstantial Improved Cash Flow
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11stst Time Positive Free Cash FlowTime Positive Free Cash Flow
25,07125,071(158,225)(158,225)Free Cash FlowFree Cash Flow
(6,122)(6,122)(2,708)(2,708)-- TaxTax
1,4391,439(230,260)(230,260)
73,30473,3041H20021H2002
(1,194)(1,194)-- Net Interest Net Interest Income/ (Expenses)Income/ (Expenses)
(56,259)(56,259)
88,64688,6461H20031H2003
-- CAPEXCAPEX
EBITDAEBITDA
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FY2002FY2002 1H20031H2003
Cash & cash equivalents Cash & cash equivalents 267,158 267,158 236,852236,852Total assets Total assets 1,525,052 1,525,052 1,569,8061,569,806
Total debts (net of pledged deposit) Total debts (net of pledged deposit) 17,435 17,435 9,4239,423Total shareholdersTotal shareholders’’ equity equity 1,209,750 1,209,750 1,236,8831,236,883
Strong Balance SheetStrong Balance Sheet
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Review of Strategy & Review of Strategy & ExecutionExecution
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üü Continuing 2,000 units of media resources expansion per Continuing 2,000 units of media resources expansion per yearyearØØDeveloping Taxi stands advertising in ShanghaiDeveloping Taxi stands advertising in Shanghai
üü Monitoring acquisition opportunitiesMonitoring acquisition opportunitiesØØAcquisition of bus shelters further increases market Acquisition of bus shelters further increases market
shares to 74% in Central Beijingshares to 74% in Central Beijing
üü Improving quality of network by developing key locationsImproving quality of network by developing key locations
üü Extending contract period to enhance return to shareholdersExtending contract period to enhance return to shareholdersØØRemaining contract life extended to 8.9 yearsRemaining contract life extended to 8.9 years
Securing Supply Securing Supply …… Ensuring Healthy GrowthEnsuring Healthy Growth
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üü 4A Sales Center enhance professional services4A Sales Center enhance professional services
üü Sales Centers strengthen customers supportSales Centers strengthen customers support
üü New Flexible Pricing System offers visibilityNew Flexible Pricing System offers visibility
üü Develop & Improve Sales Develop & Improve Sales OrganisationOrganisation
Improving Sales & After Sales Services Improving Sales & After Sales Services ……to Facilitate Demandto Facilitate Demand
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üü Sales reboundsSales rebounds
ØØ 90% of 03 sales target already booked 90% of 03 sales target already booked ……
üü Continue & streamline operations to improve Continue & streamline operations to improve efficienciesefficiencies
Looking into 2Looking into 2ndnd Half Half ……
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12.8%12.8%10.0%10.0%16.4%16.4%--10.9%10.9%3.7%3.7%4.8%4.8%4.6%4.6%6.7%6.7%ROEROE
Local MediaLocal MediaGlobal PeersGlobal Peers
1.91.9
--
--
3.93.9
14.414.4
LamarLamar
5.95.9
--
--
--
--
PhoenixPhoenix
1.71.7
0.80.8
26.026.0
0.60.6
9.89.8
Clear Clear Clear MediaMediaMedia
5.25.219.919.913.413.48.28.214.814.8Est Est EV/EBITDAEV/EBITDA
1.31.31.31.30.70.73.33.31.41.4Est Est EV/EBITDA/GEV/EBITDA/G
2.42.43.53.54.14.11.91.91.81.8Price/ BookPrice/ Book
1.61.61.71.72.52.54.34.3--Est.PEGEst.PEG
19.019.035.035.024.924.932.432.434.334.3Est. PEEst. PE
ii--cablecableSCMPSCMPTVBTVBJC JC DecauxDecaux
Clear Clear ChannelChannel
Valuation Compares Favorably w/ Market PeersValuation Compares Favorably w/ Market Peers
* Based on closing prices on 25 August 03, and Bloomberg IBES es* Based on closing prices on 25 August 03, and Bloomberg IBES estimatestimates
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Thank you!Thank you!