Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — FY2019 Earnings Presentation
32 slides from Convenience Retail Asia's earnings presentation, Mar 10, 2020
Slide 1: 2019 Annual Results Announcement
Convenience Retail Asia Limited 2019 Annual Results Announcement 10 March 2020
Slide 2: Agenda
Agenda Hong Kong Retail Market Key Highlight 2019 Financial Results Highlight 2020 Outlook 2
Slide 3: Hong Kong Retail Market Key Highlight
HONG KONG RETAIL MARKET KEY HIGHLIGHT 3
Slide 4: 2019 Hong Kong Retail Market: A Very Tough Year
2019 Hong Kong Retail Market A Very Tough Year Total Retail Sales Value & Volume Supermarkets Sales Value & Volume Dec YTD Value: -11.1% Dec YTD Value: +0.7% 20 Dec YTD Volume: -12.3% 25 Dec YTD Volume: -4.8% 15 Year-on-year % change 20 Year-on-year % change 10 7.0 6.9 15 5 10.2 8.6 0 10 -0.2 5.5 3.
Slide 5: Hong Kong Retail Market
Hong Kong Retail Market Hong Kong Economic Journal 2/3/2020 Hong Kong Economic Journal 21/2/2020 Oriental Daily News 14/2/2020 Hong Kong Economic Times 5/2/2020 Ming Pao Daily News 5/2/2020 5
Slide 6: 2019 Second Half Key Highlights
2019 Second Half Key Highlights 1. The social unrest activities has been disrupting business primarily in the weekends as well as in the MTR premises 2. Despite the disruption, average sales for Circle K and Saint Honore were holding up and both are still recording positive comparable and total stor
Slide 7: OK Stamp It – Total Members
200,000 400,000 600,000 800,000 0 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2016/6/21 2016/7/21 2016/8/21 2016/9/21 2016/10/21 2016/11/21 2016/12/21 2017/1/21 2017/2/21 2017/3/21 2017/4/21 2017/5/21 2017/6/21 2017/7/21 2017/8/21 2017/9/21 2017/10/21 2017/11/21 2017/12/21 2018/1/21 2018/2/21
Slide 8: 3 “Plus” Strategies Driving Growth
3 “Plus” Strategies Driving Growth 8
Slide 9: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience Cake Easy exceeded 630,000 members 9
Slide 10: The Eighth Store In Hong Kong
The Eighth Store In Hong Kong Citistore, Tsuen Wan (opened 18th September 2019) 10
Slide 11: The Ninth Store In Hong Kong
The Ninth Store In Hong Kong Maritime Square, Tsing Yi (opened 19th October 2019) 11
Slide 12: The Tenth Store In Hong Kong
The Tenth Store In Hong Kong Lee Theatre Plaza, Causeway Bay (opened 8th January 2020) 12
Slide 13: 2019 Financial Results Highlight
2019 FINANCIAL RESULTS HIGHLIGHT 13
Slide 14: Number of Stores
Number of Stores End of End of Opened Closed 2018 2019 Circle K Hong Kong 337 13 (14) 336 Circle K Macau (franchised) 32 2 (1) 33 Circle K Zhuhai (franchised) 13 4 (3) 14 Saint Honore HK & Macau 100 3 (4) 99 Saint Honore China 31 - (4) 27 Zoff 6 3 - 9 CRA Group Total 519 25 (26) 518 14
Slide 15: Group Turnover
Group Turnover 2nd Half Full Year 4,000 +6.6% 7,000 +5.9% 6,000 5,632* 2,928* 5,320* 105 77 3,000 2,746* 52 5,000 1,092 46 1,120 HK$ Million 584 HK$ Million 597 4,000 2,000 3,000 2,338 2,000 4,207 4,524 1,000 2,146 1,000 0 0 2018 2019 2018 2019 Circle K Saint Honore Developing Businesses Circle K Sa
Slide 16: Gross Profit & Other Income
Gross Profit & Other Income 2nd Half Full Year 42 42 40 39.0 40 38.6 38.1 38.0 % of Turnover % of Turnover 38 38 36 36 34 34 32 32 30 30 2018 2019 2018 2019 16
Slide 17: Group Store Operating Expenses
Group Store Operating Expenses 2nd Half Full Year 30 30 -0.6% -0.4% 28 28 27.0 26.9 26.5 26.4 % of Turnover % of Turnover 26 26 24 24 22 22 20 20 2018 2019 2018 2019 17
Slide 18: Group Net Profit
Group Net Profit 2nd Half Full Year +8.0% +13.3% 150 250 125 208 116 183 200 HK$ Million HK$ Million 100 150 100 50 50 0 0 2018 2019 2018 2019 18
Slide 19: Net Profit by Market
Net Profit by Market Full Year (HK$ Million) 2018 2019 Change Hong Kong & Macau Markets 190 209 9.5% Southern China Market (6) (3) 54.0% Developing Businesses (1) 2 3x CRA Group Net Profit 183 208 13.3% 19
Slide 20: Group Net Profit as % of Turnover
Group Net Profit as % of Turnover 2nd Half Full Year 8 6 +0.1% +0.3% 6 3.7 % of Turnover % of Turnover 4.3 4 3.4 4.2 4 2 2 0 0 2018 2019 2018 2019 20
Slide 21: Basic Earnings Per Share
Basic Earnings Per Share 2nd Half Full Year 25 +8.0% 35 +13.2% 30 27.20 20 16.40 25 24.03 15.19 HK Cents HK Cents 15 20 10 15 10 5 5 0 0 2018 2019 2018 2019 21
Slide 22: 2019 Financial Results Highlight – 2nd Half
2019 Financial Results Highlight – 2nd Half 2H2018 2H2019 Change Number of Stores 519 518 -1 Group Turnover (HK$M) 2,746 2,928 6.6% Group Net Profit (HK$M) 116 125 8.0% Net Profit as % of Turnover 4.2 4.3 0.1% Basic Earnings Per Share (HK cents) 15.19 16.40 8.0% 22
Slide 23: 2019 Financial Results Highlight – Full Year
2019 Financial Results Highlight – Full Year 2018FY 2019FY Change Number of Stores 519 518 -1 Group Turnover (HK$M) 5,320 5,632 5.9% Group Net Profit (HK$M) 183 208 13.3% Net Profit as % of Turnover 3.4% 3.7% 0.3% Basic Earnings Per Share (HK cents) 24.03 27.20 13.2% Dividends (HK cents) Interim D
Slide 24: 2020 Outlook
2020 OUTLOOK pero ee | "I La mE a aah ioe
Slide 25: 2020 Overall Economic Outlook
2020 Overall Economic Outlook 1. Social unrest plus the coronavirus dealing a double blow 2. Will take some time for tourist and visitors to return 3. Highly volatile social and market sentiment 4. Major correction in retailing, tourist, restaurants and most sectors 5. Investment will drop to lowest
Slide 26: 2020 Business Outlook
2020 Business Outlook 1. The Group’s overall business will be unfavorably impacted during the first half of 2020 2. Quick actions take to ensure strictly control of expenses and expenditures, eliminate ineffectiveness and further improve effectiveness of everything we do 3. We expect that our busine
Slide 27: Strategies Dealing With Coronavirus Crisis: Staff Safety, Health & Wellness
Strategies Dealing With Coronavirus Crisis Staff Safety, Health & Wellness Always keep hand clean. Wash your hands more thoroughly and use hand sanitizers if needed Avoid touching eyes, nose and mouth Wear a surgical mask when taking public transport or staying in crowded places Cover your m
Slide 28: Strategies Dealing With Coronavirus Crisis: Business Continuity
Strategies Dealing With Coronavirus Crisis Business Continuity Building Measurements / Office Hygiene • Temperature check at G/F lobby and reception • Person with a temperature over 37.3 degrees Celsius will not admitted to entry the building • Wear mask when entering the building including guests a
Slide 29: Strategies Dealing With Coronavirus Crisis: New Opportunity - Relevant Products
Strategies Dealing With Coronavirus Crisis New Opportunity - Relevant Products 29
Slide 30: Giving Back To Our Community
Giving Back To Our Community 100,000個 Photo sources: Footprint of Cheung Chau 30
Slide 31: The “Plus” Strategies
The 3 “Plus” Strategies ASN Fun & “Internet+” Novelty Customer 1. Focus on “Internet Plus” customers 2. Deliver “4P’s Plus” relevant customer experience 3. Transition to “B&M Plus” (O2O) business models 31
Slide 32: Thank You!
THANK YOU ! 32
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