Talent Re-engaging

Talent Engagement + from GOOD to GREAT Driving

CTI

? Cheap Telcom International

1992

Co-founders: Mr. Ricky Wong & Mr. Paul Cheung

10 staffs with start-up capital of less than HK$ 1 million

2009

3,000 talents located in Hong Kong and Guangzhou with HK$1.3 billion annual revenues

Hong Kong’s largest alternative and fastest growing residential broadband service provider

City Telecom (H.K.) Limited City Telecom (H.K.) Limited (HKEX: 1137.HK / NASDAQ: CTEL)

Hong Kong Broadband Network (HKBN)

Established in 2000 as a wholly-owned subsidiary

100 % self-build Optical Fibre network

The world’s largest Metro Ethernet broadband network

Triple-play network TV Broadband Voice

Recognitions HKMA 39 th & 40th Distinguished Salesperson Award HKiHRM - 2007 Human Resource Management Award Hong Kong HR Award 2007 Best Retention Strategies HKMA – 2009 Quality Award (Bronze) . . .

We are … H ong K ong B EST N etwork

Did the economic downturn ERASE all our effort ?

Revenue Growth Declines Source: Morgan Stanley *TMT: Technology, Media & Telecommunication

Internet Becoming Necessity Source: Morgan Stanley

Video-Related IP Traffic Driving Growth Source: Cisco Visual Networking Index

Risk free from Economic Downturn … … no business concern

Also … easier Talent Acquisition & Retention

So Time to Celebrate ?

It should be time to drive Talents … from GOOD to GREAT

Our Planning …

From GOOD … Order Taker Business Owner Frontline Talent Future Leader Senior Leader Expected Performance

… to GREAT Order Taker Business Owner Frontline Talent Future Leader Expected Performance Senior Leader Enterpriser

Instill a Business Owner Mindset Work Improvement Team (WIT)

Work Improvement Team

Nurture the best talents

Improve DOP at manageable scale

Cost saving

Process improvement

Productivity enhancement

Recognition for work improvements

Standardize best practice among departments

Cultivate continuous improvement as sustainable growth to BHAG

Work Improvement Team Incentive for WITs WIT Culture Project implementation Result measurement Phase 1 : Basic Level (Departmental Project) Phase 2: Advanced Level (Cross-departmental Project) WIT expert Practical skills Case sharing Practical skill sets Project identification Outcome(s) Incentive / Recognition WIT Review Meeting Half-day Training/Workshop Training to Steering Committee

Work Improvement Team > 708K saved (Realized / Unrealized) from May to Aug 09 > $2.7M saved (Realized / Unrealized) if cumulate from May to Dec 09 (Including projects with schedule to be launched by the year end) > $30K Indirect savings from May to Dec 09 54% Achievement (Up to Dec 09) 106% (Project activated 12 months) $2.7M DOP saved (Up to Dec 09) $5.3 DOP saved (Project activated 12 months) > 206 WIT proposals were received > 38 proposals were qualified and awarded the entry prize 150% Achievement 25 WIT Proposals received Proof Result Goals

Frontline Talent Next Station: University

Next Station: University Professional Diploma in Supervisory and Administrative Management Certificate in Management Studies Advanced Diploma in Business Management BA (Hons) Business Management (2 months) (10 months) (10 months) (~4 years to gain Degree ) (24 months) Stage 4 Stage 3 Stage 2 Stage 1

Next Station: University Expected Company Total Investment (4 years): 6M $26,740 $18,400 $4,320 $4,020 Talent’s investment (20%) $106,960 $73,600 $17,280 $16,080 Company’s investment (80%) $133,700 $92,000 $21,600 $20,100 Tuition fee Adv. Diploma Degree Total Diploma

Future Leader HK$ 180,000 Ticket to CXO > Outward Bound Screening Process > CFA Level I > 36 Management Books in 18 Months > Half-marathon > … > …

Senior Leader eMBA

Senior Leader > 70% of our Senior Management have or in the processing of completing a Post-Graduate (mainly eMBA) HK$ 2.8 million up-to-date investment

… to GREAT Order Taker Business Owner Frontline Talent Future Leader Senior Leader Expected Performance Enterpriser

Talent Engagement + from GOOD to GREAT Driving

Part of our Achievement Rating Scale: 6