TOM.COM LIMITEDY2001 Results Review

15th March 2002Hong Kong

2

Review of the Year

Sevenfold increase in revenue over 2000

2002 Revenue derived from same asset base can potentially double

On track to achieve cash flow breakeven

Eliminated 100% online premium through conservative accounting approach

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Part I: Financial Analysis

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Financial Highlights – 2001 vs. 2000

HK$'M 2001 2000 % Change

Revenue 627 89 sevenfold

EBITDA loss * 184 425 57%

Operating loss * 231 383 40%

Goodwill provisions 281 829 66%

Net loss 636 1,265 50%

* Exclude one time reorganisation costs, impairment of goodwill and fixed assets

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2001 Revenue Q-o-Q Growth

77

146159

245

* TOMNET revenue flat due to ongoing utilisation of residual value, expected to continue throughout 2002 Q1.

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2001 Revenue Above Market Expectation of HK$612M

627

89

Online1.6x revenue increase:Success of “access p

ortal” strategy

Offline13x revenue increase:Broadened revenue b

ase

HK$'M DBS BNP CLSA Cazenove Deutsche Average TOMRevenue 550 588 612 640 671 612 627

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2001 Q4 vs. 2000 Q4:3x Revenue Increase, 48% EBITDA Improvement

48% improveme

nt

3x increase

* Exceptional year-end corporate expenses

*

Revenue EBITDA

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HK$'M Deutsche Cazenove CLSA BNP DBS Average TOMOperating Loss (245) (229) (226) (208) n/a (227) (231)

2001 Operating Loss In Line With Estimates of HK$227M

40% improveme

nt

Sevenfold increase in revenue, but OPEX* decreased by 2% – a leaner cost structure in place to support a larger

revenue base2000 OPEX: HK$497M2001 OPEX: HK$487M

* Include depreciation and amortisation but exclude cost of sales

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HK$281M provision

Eliminated 100% Goodwill Arising from Online Acquisitions

1999

2000

2001

Acquired Metro website & operations with initial shareholders’ equit

y

Resulting goodwill capitalised as asset on balance sheet &

subject to amortisation

Issued new shares at HK$5.51 to acquire online assets

Resulting goodwill set off against share premium

Transfer goodwill previously set off against share premium t

o P&L account

Write off capitalised goodwill to P&L account

HK$829M provision (PYA)

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Part II: Management Discussion

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OUTDOOR: Building the Largest Outdoor Media Network in Mainland China Focusing on Billboards & Unipoles

Diversified outdoor media assets: billboards, unipoles, street furniture, transport advertising

Presence in 13 major cities throughout Mainland China

134,000 sq. m. of advertising space

Over 9,000 outdoor media units

77% average occupancy rate

EBITDA margin: over 50%

Outdoor Media Mix

• Based on the area coverage of the outdoor media assets

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PRINT: Consolidated Taiwan Print Media Market

No. 1 publishing group in Taiwan – to be No. 1 in Greater China Readership reach of 56 million

40%

TOM’s share of Taiwan’s consumer magazine market

33%

TOM’s share of Taiwan’s book market

• 40 magazine titles covering IT, business, finance, lifestyle, health, teenage

• 31 million annual circulation

• 8,000 book titles• 10 million copies published in 2001• 1,200 new titles in 2001

Magazines Books

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ONLINE / TELECOM VAS: Successful “Access Portal” Positioning

One of the top portals in China in 1.5 years’ time 80 million daily pageviews: 70% y-o-y growth 15 million online registered user base: 20% y-o-y growth Fastest growth of fee-paying users among top portals

Advertising One of the top 5 portals in China in terms of advertiser base No. of advertisers increased by 70% to over 300

Subscription Online games “Gleam of Peace( 和平的曙光 )” & “Xia Ke Xing ( 俠客

行 )” Led the market towards a fee-paying culture

Personal Services

60,000 mobile pay e-mail users (4 months) 900,000 TOMNET cards sold (6 months) 150,000 active TOMNET users 200,000 SMS messages daily 350,000 registered SMS users

Corporate Services ECLink: B2B services to over 200 businesses Outsourcing solutions

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SPORTS: The No.1 Sports Marketing Company in China

Sustained Q-o-Q revenue growth despite withdrawing exclusivity to CBA basketball rights after September 11

Launched “Nokia Sports Daily News” in June 2001 – syndicated to 31 TV stations nationwide

Exclusive advertising rights to the Official Guide to World Cup 2002 (China edition)• Circulation expected to reach 800,000

~40% CQGR

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Consolidation, Rationalisation & Integration Discipline

ONLINE Online companies acquired in 2000 were fully integrated with TOM’s internally developed

businesses – achieved one of the most competitive cost structures

PRINT Initial rationalisation and integration of PC Home and Cite completed – delivered initial 10%

point margin improvement Further integration of Sharp Point and Business Weekly in 2002 expected to further enhance

performance

OUTDOOR Further consolidation to continue in 2002 to extend reach beyond the current 13 cities Continued integration and rationalisation to focus on enforcing financial control discipline a

nd centralising inventory and sales

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Significant Organic Growth Potential in 2002, Additional Acquisitions to Come

Telecom VAS

Internet Access

Wireless VAS

Media & Entertainment

Virtual Network Operator

Music & Entertainmen

t

Online Sports Print Outdoor

2001 Revenue: 627M2002 Revenue Upside

on the same asset base

* First-time contribution:

Fench Media Jan 1Maya Cultural Apr 1Perfect Team Nov 1

Yazhou Zhoukan Mar 1PC Home / Cite Oct 1Sharp Point Nov 21

• Full-year contribution from companies consolidated in 2001

• First-time contribution from Business Weekly, Chunyu, Qilu, Tianming, Yanh

uang

•Online assets•Sports assets

•First-time contribution*

•Online & sports organic growth

Revenue likely to more than double organica

lly

TOM.COM LIMITEDY2001 Results Review

15th March 2002Hong Kong