2002 Annual Results Presentation A member of the Li & Fung (Retailing) Group 14 March 2003

2002 Hong Kong Overall Retail Sales Year-on-Year % Change Total : $177 Billion - 4.1% - 4.1% Source: HKSAR, Census and Statistics Department

2002 Annual Results Presentation Agenda  2002 Financial Results Highlights  2003 Outlook & Update  Questions & Answers

2002 Financial Results Highlights Group Turnover + 7% No. of Stores in HK: No. of Stores in China: HK Overall Retail Sales: - 8.1% + 3.8% - 1.2% - 4.1%

2002 Financial Results Highlights Group Net Profit + 10%

2002 Financial Results Highlights Net Profit as % of Sales + 0.2%

2002 Financial Results Highlights Basic Earnings Per Share + 8%

2002 Financial Results Highlights Number of Stores % Group Turnover (HK$ Million) 1,393.51, % Group Net Profit (HK$ Million) % Net Profit as % of Turnover 5.2%5.0% + 0.2% Basic Earnings Per Share 10.9 Cents 10.1 Cents + 8%

Why 2002 Favourable Results? Total 2002 Sales Increased Yet Comparable Stores Sales Dropped Total 2002: + 6.8% Total 2002: - 4.3%

Why 2002 Favourable Results? Improving Gross Margin/Other Income + 1.2% Gross Margin/Other Income as % of Sales

Why 2002 Favourable Results? Tight Control of Store Operating Expenses Store Operating Expenses as % of Sales 24.3% 21.9%22.1% 22.7%

4 th Quarter 2002 Financial Results Highlights Group Turnover (HK$ Million) %  Comparable Stores % Group Net Profit (HK$ Million) % Net Profit as % of Turnover 5.4%4.9% + 0.5%

2002 Achievements 8 Consecutive Quarters of Profitability Growth Q12001Q22001Q32001Q42001Q12002Q22002Q32002Q % + 33% + 36% + 7% + 9% + 3% + 23%

2002 Achievements Consumer Acceptance of China Model 4 th Generation:  Fresh & Hot Bakery and Gourmet Hot Drinks  Hi-tech Retailer  STF&F (Speed, Tidiness, Friendliness & Fun)  Genuine Products Guarantee  Best Cigarette & Magazine Categories  Grocery at Supermarket Pricing

2002 Achievements Forbes Global Best 200 Companies (Under A Billion) for 2002 Winner of 2002 HKRMA Service & Courtesy Award - Supervisory Level of Supermarket / Convenience Stores Category $408M Cash On Hand

2003 Update & Outlook

2003 Update & Outlook Circle K Hong Kong  High Unemployment, Deflation, Budget Deficit & Tax Increases = Weaker Sentiment to Spend  Expect Retail Spending to Drop 3% - 5% in 2003  Our Strategies:  Efficiency & Cost Control  New Product Categories  Creative Promotions  Mass Customization  Quality & Profitable New Outlets

2003 Update & Outlook Circle K China  4 Stores Operating by End of March 2003  First Batch of 10 Stores by Mid Year  Aggressive Growth after Fine Tuning of Store Model & Supply Chain  30 Stores by End of Year with Positive Store Contribution

2003 Update & Outlook To Summarize  Solid Foundations in Hong Kong & China  First 2 Quarters – Profitability Growth A Challenge  Weak Hong Kong Market  Heaviest Start Up Cost in China  Improving Results in 2 nd Half