The Rise of China's New Consumer Market: Opportunities and Trends

1. China: the world’s new consumer market Hong Kong Canada National Business Forum 3 june 2008 edmonton Janet De Silva CEO, retail China limited

2. China …just getting started • “While skiing declines in other parts of the world, in China it is the new exciting trend.“ MELCO CHINA RESORTS • “With a positive retail outlook and lack of experienced developers, we have capital to operate hypermarket anchored shopping centres in China”. SEACAN REALTY • “The emergence of China’s middle class is driving unprecedented spending… customer loyalty and retention tools are at an early stage. The City ID Card is an emerging trend” RAIVENT INC • “China…was the talk of the town at April’s World Retail Congress. International retailers are turning their sights from ‘Made in China to Sold in China’. “ RETAIL CHINA LIMITED 2

3. about China’s NEW consumer marketby 2010 middle class dominates consumption (& pop’n) 2000, RMB, Billions, 3,704 6,011 9,318 13,474 19,201 = 100% Global>200K Affluent100-200K Upper Middle 40-100K Lower Middle25-40K Poor<25K Share of total urban consumption expenditure by income class 3 Source: McKinsey Global Institute November 2006 The Rise of China’s Urban Middle Class

4. China’s new consumer market ….from MAO to YAO…. Most of China’s “New Rich” & “New Middle Class” are <age 35, with greater international exposure than previous generations 4

5. about China’s NEW consumer market expected consumption Urban China’s Share of Consumption of OECD plus China*, % Euromonitor International March 11, 2008 2005 2015E 5 SOURCE: OECD & MGI Consumer Demand Analysis

6. Bringing a premier, international ski experience to a booming ski market. • Proven market: 5M ski visits in 2006 (70%CAGR since 2000) • Developing 5 fully integrated mountain centred resorts • WFOE listed on TSX May 26 (MCR) 6

7. SEACAN Realty Operating hypermarket anchored shopping centres in China • Proven opportunity: market leading hypermarkets adding 10-20 new stores annually. • Developing a portfolio of shopping centres in China’s 30 leading T2 cities w. capital & operating expertise • Canadian fund working with a local partner in China and strategic relationships in HK 7

8. Raivent Inc. Bringing loyalty, marketing and data warehouse solutions to China. • Awarded a government contract for a mandatory city card to be used by 14 million people. • Launching a first of its kind multi-application government card with merchant, loyalty and e-wallet programs • JV with a Chinese partner 8

9. Bringing international retail brands to China’s fast growing middle class consumers www.retailchinalimited.com • International Retail Brands see China as the world’s fastest growing consumer market. • RC becomes their China operating partner, adapting the brand and operating their retail stores in China. • HK: Registered Holding Company & Asia HQ China: WFOE Brandcos + a JV operating company 121shopping days to China’s National Day 9

10. lessons learned …the importance of:china: the world’s new consumer market • Preparation • Patience • Partners • People “The emergence of China as a consuming middle class is expected to have a greater impact on global markets than China as a producer of goods.” McKinsey 2006 Special Edition: Serving the New Chinese Consumer 10

11. China: the world’s new consumer market Hong Kong Canada National Business Forum 3 june 2008 edmonton Janet De Silva CEO, retail China limited