3 rd Quarter 2003 Results Presentation A member of the Li & Fung (Retailing) Group 4 November 2003

Hong Kong Total Retail Sales Value Year-on-year % Change * Source: HKSAR, Census and Statistics Department Jan-Aug 2003 :- 5% 2002 Total :- 4%

3 rd Quarter 2003 Result Presentation Agenda  3 rd Quarter 2003 Financial Results Highlights  2003 Update & Outlook  Questions & Answers

3 rd Quarter 2003 Financial Results Highlights Group Turnover – 3 rd Quarter No. of Stores : (HK) (China) (China) + 10%

3 rd Quarter 2003 Financial Results Highlights 144 Comparable Stores Sales - 1%

3 rd Quarter 2003 Financial Results Highlights Group Turnover – September YTD No. of Stores : (HK) (China) (China) + 10% 1, ,132.1

3 rd Quarter 2003 Financial Results Highlights Group Net Profit – 3 rd Quarter + 6% * Restated for Income Tax Effect Per SSAP No.12 * * *

3 rd Quarter 2003 Financial Results Highlights Net Profit as % of Sales – 3 rd Quarter - 0.2% * Restated for Income Tax Effect Per SSAP No.12 * * *

Why 3 rd Quarter 2003 Results? Higher Gross Margin/Other Income + 0.6%

Why 3 rd Quarter 2003 Results? Higher Expenses as % of Sales Expenses as % of Sales vs  Store Operating Expenses - HK 22.3% + 0.3% - China - China0.3% + 0.3%  Distribution 1.7% + 0.2%  Administrative Expenses 3.7% + 0.5%  China Start-up Expenses % %

Why 3 rd Quarter 2003 Results? Net Profit By Market 3 rd Qtr rd Qtr 2003 Changes (HK$ M) Hong Kong Market China Market (1.6)(2.2)(0.6) Total

3 rd Quarter 2003 Financial Results Highlights Group Net Profit – September YTD - 3% * Restated for Income Tax Effect Per SSAP No.12 * * *

3 rd Quarter 2003 Financial Results Highlights Net Profit as % of Sales – September YTD - 0.5% * Restated for Income Tax Effect Per SSAP No.12 * * *

3 rd Quarter 2003 Financial Results Highlights Basic Earnings Per Share – 3 rd Quarter * Restated for Income Tax Effect Per SSAP No.12 * * * Cent

3 rd Quarter 2003 Financial Results Highlights Basic Earnings Per Share – September YTD Cent * Restated for Income Tax Effect Per SSAP No.12 * * *

3 rd Quarter 2003 Financial Results Highlights 3 rd Qtr rd Qtr 2003 Changes Group Turnover (HK$ Million) % Group Net Profit (HK$ Million) 17.1 * % Net Profit as % of Sales 4.7% * 4.5% - 0.2% Basic Earnings Per Share 2.6 Cents * 2.7 Cents Cent * Restated for Income Tax Effect Per SSAP No.12

2003 Update & Outlook

 Hong Kong  Deflation and relatively high unemployment to continue  Threat of SARS re-occurring  Consumer sentiment improving but consumers still cautious on spending  Chinese tourist sector to grow  Top line sales and net margin to improve

2003 Update & Outlook  China  Growth in retail continues due to economic growth and increase in disposable income  Consumer habit of using CVS more important than competition factor  Escalating social insurance cost  Expediting new store opening  Financial result close to expectation

2003 Update & Outlook Our China Strategies Benefits of CEPA 1.Lower qualifying requirements 2.Wholly-owned enterprise 3.Access to over 230 Prefectural & County Cities 4.Easier for acquisition

2003 Update & Outlook Projected Number of Circle K Stores 2002 Actual 2003 Forecast 2004 Forecast  Hong Kong  Southern China  Eastern or Northern China --10  Acquisition / J.V. --+ Total

2003 Update & Outlook  Improving Hong Kong market conditions  Healthy growth in profitability and cash flow from operations since 2 nd quarter  China strategies on track but need to speed up expansion  Better 2003 profitability outlook versus 2002’s