2003 Annual Results Presentation A member of the Li & Fung (Retailing) Group 3 March 2004

2003 Hong Kong Retail Sales Value Year-on-Year % Change Total: $173 Billion - 2.3% Source: HKSAR, Census and Statistics Department

2003 Annual Results Presentation Agenda  2003 Financial Results Highlights  2004 Outlook & Update  Questions & Answers

2003 Financial Results Highlights Group Turnover No. of stores - HK No. of stores - China --27 HK Retail Sales + 3.8% - 1.2% - 4.1% - 2.3% + 9.5%

2003 Financial Results Highlights Group Net Profit * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised) + 0.5% * * *

Net Profit By Market Change Hong Kong Market (HK$ Million) China Market (HK$ Million) (1.2)(8.5)(7.3) Total (HK$ Million)

2003 Financial Results Highlights Net Profit as % of Sales - 0.3% * * * * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

Total 2003 Sales Increased Yet Comparable Stores Sales Dropped Total % Total %

Slight Decline in Gross Margin / Other Income - 0.2%

Tight Control of Store Operating Expenses

2003 Financial Results Highlights Basic Earnings Per Share * * * * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

2003 Financial Results Highlights Change Number of Stores Group Turnover (HK$ Million) 1,393.51, % Group Net Profit (HK$ Million) 60.4 * % Net Profit as % of Turnover 4.3% * 4.0% - 0.3% Basic Earnings Per Share 9.1 Cents * 9.1 Cents - Total Dividend Per Share  Paid Mid Year  To Be Paid - 4 Cents 1 Cent 3 Cents + 4 Cents * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

4 th Quarter 2003 Financial Results Highlights Change Group Turnover (HK$ Million) % Group Net Profit (HK$ Million) 17.1* % Net Profit as % of Turnover 4.7%*4.7%- Basic Earnings Per Share 2.6 Cents* 2.8 Cents Cent * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

Year-On-Year Quarterly Profitability Growth * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised) * * * *

2003 Achievements – Hong Kong 1.Excellence in Customer STF Services (Speed, Tidiness and Friendliness)

2003 Achievements – Hong Kong 2.Customization of Store Types  Mega store with “Hot & In” counter  Mini store

2003 Achievements – Hong Kong 3.Great Category Management Initiatives Microwave Lunch Boxes Premiums Redemption Weekend Specials

2003 Achievements Winner of “Award for Excellence in Training 2003” organized by The Hong Kong Management Association – Silver Award Caring Company Award 2003/2004 Selected as a Case Study for the Citigroup International Case Competition 2003 jointly organized with the HKUST

2003 Achievements Refining Store Model in China  Fresh and hot bakery and gourmet hot drinks  STF&F (Speed, Tidiness, Friendliness & Fun)  76% preferred Circle K  60 m 2 small store model  Reduced CAPEX per store by RMB200K  Positive store contribution in November and December 2003

2004 Update & Outlook

2004 Update & Outlook Circle K Hong Kong – Quality Growth  Overall consumer sentiment improving  Deflation and high unemployment will continue  Expect improvement in comparable store sales  Our quality strategies  Great customer experience  Efficiency and cost control  New product categories  Creative promotions  Quality and profitable new outlet growth  210 stores by year-end

2004 Update & Outlook Circle K China – Aggressive Growth  Differentiation and customer preference strategies  Year of aggressive growth  40 stores by end of the year in Southern China  Evaluate option of acquisition  Expansion to Northern or Eastern China market

2004 Update & Outlook To Summarize  Quality growth in Hong Kong  Aggressive growth in China  Building customer preference is the key  Good balance between top line and profitability