2001 A - TOM Group

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A Thorough, Systematic Acquisition Evaluation ProcessConductedresearch on 164outdoor mediacompanies in 23citiesShort listed61 companiesfor furtheranalysisOn-siteevaluationof 24companiesin 14 citiesCompletedover 30evaluationreports7 transactionscompletedand 5 in MOUstageQ4 Q2 Q3 Q4 Q12000 2001 2001 2001 200210
Prevailing Terms for Outdoor Media Acquisitions• Acquisitions are typically financed with less than 50% in cash and the rest in TOM sharesissued at HK$5.51• PE ratio is typically 9.5x for outdoor business and 4.75x for agency business• The consideration will be adjusted proportionate to any shortfall of guaranteed profit in thefirst year:AdjustedConsiderationYear 1 Actual Profit= xYear 1 Guaranteed ProfitOriginalConsideration• Profit Guarantee:• Minimum CAGR of 15%• Any shortfall of guaranteed profits in the next 2-4 years will be compensated by dividendentitlements or cash• Additional guarantees• If receivables are not recovered within a certain periodfrom the execution of definitive agreements, theconsideration will be adjusted downward accordinglyCost of acquiring 12 companiesCash: HK$ 194MTOM Shares: HK$ 741M11
Page 3 and 4: A Leading Nationwide Outdoor Media
Page 5 and 6: TOM is the Dominant Company for Bil
Page 7 and 8: Immediate Expansion PlanTotal Area
Page 9: Expansion Strategy: Planned and Sys
Page 13 and 14: New Star Transaction HighlightsAcqu
Page 15 and 16: Sano Transaction HighlightsAcquisit
Page 17 and 18: Southwest International Transaction
Page 19 and 20: Bomei Transaction HighlightsAcquisi
Page 21 and 22: Seeout Transaction HighlightsAcquis
Page 23 and 24: TOM Outdoor Media GroupCentralised
Page 25 and 26: A Centralised Asset Management Syst
Page 27 and 28: Offer Full Range Professional Servi

2001 A - TOM Group

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