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Readcrest Capital AG

Investor Presentation • Nov 11, 2008

346_ip_2008-11-11_dc770169-4a07-455f-a4db-b52474fad21c.pdf

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Business Media China AG

EigenkapitalforumNovember 11, 2008

K.M. Hilligardt, CEO

This document contains forward-looking statements and forecasts based on assumptions and estimates made by Business Media China AG ("BMC") management. While we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that the expectations will prove to be correct. The assumptions may conceal risks and uncertainties which may lead to actual results significantly divergent from those made in the projective forecasts. The factors that can cause such a divergence include: changes in foreign exchange control or the economic and business environment, currency exchange rate fluctuations, the low market entry barriers for competitors, insufficient acceptance of new products or services and changes in corporate strategy. No update of the projected forecasts contained herein is planned, nor does BMC assume any obligation to do so.

Agenda

  • BMC at a Glance
  • China – A growing advertising and exhibition market
  • Strategy and strategic strengths
  • BMC's operations + plans
  • OOH Media (Airports, Railway Stations)
  • Exhibitions & Conferences
  • Peer group analysis
  • Key numbers
  • Outlook

BMC provides "Total China Media Competence" by combining key competences in all relevant advertising media solutions:

Exhibitions & Conferences, Outdoor Advertising / Out of Home Media (OOH), Online Marketing, TV/Radio and Print Media.

  • BMC's track record in Exhibitions and the strong portfolio of premium advertising media in railway stations and airports ensures a fast increasing revenue and earnings stream in a double-digit growing market.
  • BMC today is recognized as the leading company in OOH Media innovation and All-China media coverage.
  • Proven SINO-EUROPEAN Management-Style is the key success factor.
  • Shareholders´ structure: 30.1% Mesago (CEO), 2.1% Management, 67.8% free float,
  • Market Cap(11.11.2008): EUR 50 Mio.

From zero to a leading player in 4 years

From zero to a leading player in 4 years

  • The Chinese economy is estimated to grow at 8-10% p.a. through the next decade.
  • Huge manufacturing sector, called 'Factory of the World'.
  • Rising income levels and increasing purchasing power of middle class (2008: >250 million).
  • By 2020 the middle class will comprise 40% of the total population.
  • China will consume approximately 29% of the world's total luxury goods in 2015.
  • Boom in the retail sector.
  • Government modernising rural & urban infrastructure, highways, railways, airports, roads, subways.
  • Olympics 2008 led to higher awareness and attractiveness of the China market as strongly growing consumer market.

Source: Chinese statistical Yearbook 2006

The Chinese advertising market

Large and Fast Growing Advertising Market (CAGR 16.2%)

Outdoor Advertising (OOH) is growing faster than the advertising market (CAGR 18.0%)

Source: Deutsche Bank, National Bureau of Statistics of China, ZenithOptimedia.

  • China's urban population increased from 29.0% in 1995, to 40.5%, or 523 million people, in 2003.
  • Predicted to increase beyond 615 million by 2010.

Exhibitions' growth in China during 2000 – 2006

China is the fastest growing Exhibition market

  • Follow a buy & build strategy using national and global reach: BMC identifies market leaders in specific local or regional segment, acquires a controlling stake in it (buy), and then scales (build) it up using its national and global reach.
  • Develop, attract & establish additional international exhibitions and conferences in the Chinese market.
  • Identification of new opportunities (e.g online platforms) for a strong and profitable growth.
  • Exploring synergiesbetween OOH, exhibitions and conference businesses.
  • Driving the consolidationin the Chinese Outdoor Advertising market.
  • Develop City Partnerships (PPP) with City Furniture (JV with Wall AG)

BMC Germany

  • BMC Capital Markets
  • BMC Group Admin, Legal, Financial Control
  • BMC International Business
  • BMC Group Corporate Marketing, Design & IT

BMC China

  • China Business Operations
  • China Business Development
  • China Administration & Financial Reporting

Airport advertising

Airports advertising: Acces to all top 15 airports

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  • BMC Flying Dragon is the leading provider at the 15 most important airports
  • Important Milestone September 2007: Winning of T3 media formats at Beijing airport
  • Up to EUR 10 million turnover/year as of H2/2008
  • Strong demand for more formats
  • Strategic cooperation in China with Kinetic worldwide since May 2008
  • BMC is exclusive Airport partner for the world's largest media agency
  • Further consolidation of Chinese Airport Media market expected

Airport: Media Formats

Airport: Media Formats

Airport: Media Formats

Global players and domestic companies

Railway advertising

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Next steps of All China roll-out will include Shanghai and Chengdu.

  • Start Railway advertising in Q2 2007
  • Need to educate Chinese customers – BMC leads Railway advertising reformation
  • Potential for All China Roll-out – but slower development than expected (prices, occupancy rate)
  • New Joint Venture in Q2 2008 doubles China-reach
  • Shanghai to be integrated
  • Media formats at existing Railway Stations to be expanded

Railway: Media Formats

Railway: Media Formats

Railway: Media Formats

Exhibitions & Conferences

With its 25 years history in exhibition, conference and publishing, BMC is a major player in China.

9 leading international exhibitions & conferences in China

Thereof: 4 No.1 events in China

1 No. 1 event worldwide

www.bmc-expub.com

  • Strong growth expected by:
  • Growth of existing events
  • Developing new Exhibitions
  • M&A activities
  • JVs with western Exhibitions
  • JVs with national Exhibition centers

China Beauty ExpoChina's No. 1 Exhibition in China.

China MiningNo.1 Mining Event in China and No. worldwide.

China SMT ForumThe most important SMT & MPT Event in China.

MICROPACConcurrent to China SMT Forum.

China Municipal TransportNo. 1 Transport & Logistic Exhibition in China.Procurement Exhibition for the Chinese Government.

PPI&FDC China (concurrent) Two of the Top-3 Food Exhibitions in China.

GIMT ChinaOne of the most important Machine Tool Exhibitions in South China.

CIOENo. 1 Optoelectronics Exhibition worldwide

The outdoor advertising market in China is very fragmented. According to the China Advertising Association, there are around 60,000 outdoor advertising companies.

The Top Seven cover approx. 16% of the market.

1. Tianjun Skyflying Media / BMC GroupCombined Revenues 2008e* EUR 120-140 Mio.

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* BMC Estimates 2008e Outdoor Advertising Market EUR 3,4 Billion

Peer group positioning

New Biz: LOI BMC - Wall AG

  • Wall AG, Berlin is a leading company within the market of street furniture with activities in 11 countries (turnover 152 EUR mn., 720 employees)
  • LOI to create a JV in China in 2009
  • Wall to deliver hardware, BMC to market advertising media

Consolidated Companies of BMC Group

* Marketing company in process of foundation

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Balance sheet as of September 30, 2008

Revenue analysis

"Managing growth and acquisition opportunities, financial constraints and the unknown short-term effects of the global financial crisis"

BMC's established business continues to grow 20-25% p.a.

The strong position of BMC in OOH-Media and Exhibitions offers various interesting M&A opportunities

Financing via capital market difficult – alternatives under review (e.g. LOI Wall AG)

2335 50 Short term impact of global financial crisis unclear – BMC reacts proactively by reducingbreak-even levels in 2009

Turnover 2008E: EUR 30-35 mn, Net loss +/- 1 Mio

Business Media China 2009: double-digit growth and profitable

Business Media China AG

Rotebuehlstr. 8770178 Stuttgart – GermanyTel. +49 711 490 890 0

Investor RelationsEdwin van der Geest Tel. +41 79 330 55 22

[email protected]

www.businessmediachina.com

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