Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q1 2006 Earnings Presentation

17 slides from Convenience Retail Asia's earnings presentation, May 2, 2006

  1. Slide 1: 1st Quarter 2006 Results Presentation

    1 Quarter 2006 Results st Presentation Member of Li & Fung Group 2 May 2006

  2. Slide 2: Agenda

    1st Quarter 2006 Results Presentation Agenda ƒ 1st Quarter 2006 Financial Results Highlights ƒ 2006 Outlook & Update ƒ Questions & Answers

  3. Slide 3: Number of Circle K Stores

    1st Quarter 2006 Financial Results Highlights Number of Circle K Stores 1st Qtr 2005 End of 2005 1st Qtr 2006 Hong Kong 212 230 235 Guangzhou 22 40 41 Dongguan - 5 6 Sub Total 234 275 282 Macau 1 11 13 Zhuhai - 4 5

  4. Slide 4: First Shenzhen Circle K Store 1 May 2006

    First Shenzhen Circle K Store 1 May 2006

  5. Slide 5: Group Turnover

    1st Quarter 2006 Financial Results Highlights Group Turnover 2,500 1,995.2 2,000 1,736.5 + 13% HK$ Million 1,500 1,000 454.2 514.4 500 0 2004 2005 1st Qtr 2005 1st Qtr 2006

  6. Slide 6: Marketing & Promotions Hong Kong

    Marketing & Promotions Hong Kong Good Day Garfield Promotion Lucky Star Promotion

  7. Slide 7: Marketing & Promotions Southern China

    Marketing & Promotions Southern China Chinese Meal Box Student Loyalty Programme

  8. Slide 8: Gross Margin / Other Income

    Gross Margin / Other Income Gross Margin/Other Income as % of Sales (Excluding Interest Income) 35% 33.0% + 1.2% 33% 32.3% 31.4% % of Sales 31% 30.2% 29% 27% 25% 2004 2005 1st Qtr 2005 1st Qtr 2006

  9. Slide 9: Upward Pressure on Store Operating Expenses

    Upward Pressure on Store Operating Expenses 30% 24.5% 24.9% 23.2% 23.8% 25% 7.2% 6.3% 20% 6.6% 6.2% % of Sales 15% 8.5% 7.3% 7.9% 7.9% 10% 5% 9.3% 9.4% 9.7% 10.1% 0% 2004 2005 1st Qtr 2005 1st Qtr 2006 Labour Cost Rental Cost Other Expenses

  10. Slide 10: Group Net Profit

    1st Quarter 2006 Financial Results Highlights Group Net Profit 80 73.6 66.3 70 60 + 13% HK$ Million 50 40 30 20 8.9 10.1 10 0 2004 2005 1st Qtr 2005 1st Qtr 2006

  11. Slide 11: Net Profit as % of Sales

    1st Quarter 2006 Financial Results Highlights Net Profit as % of Sales 5% 3.8% 3.7% 4% % of Sales 3% 2.0% 2.0% 2% 1% 0% 2004 2005 1st Qtr 2005 1st Qtr 2006

  12. Slide 12: Basic Earnings Per Share

    1st Quarter 2006 Financial Results Highlights Basic Earnings Per Share 12 10.9 9.9 10 8 + 0.2 Cent HK Cents 6 4 1.3 1.5 2 0 2004 2005 1st Qtr 2005 1st Qtr 2006

  13. Slide 13: 1st Quarter 2006 Financial Results Highlights

    1st Quarter 2006 Financial Results Highlights 1st Qtr 2005 1st Qtr 2006 % Change Group Turnover (HK$ Million) 454.2 514.4 + 13% Group Net Profit (HK$ Million) 8.9 10.1 + 13% Net Profit as % of Sales 2.0% 2.0% - Basic Earnings Per Share 1.3 Cents 1.5 Cents + 0.2 Cent

  14. Slide 14: 2006 Update & Outlook

    2006 Update & Outlook

  15. Slide 15: 2006 Hong Kong Market Outlook

    2006 Hong Kong Market Outlook + Local consumer spending continues to increase gradually + FIFA World Cup Final in June / July - Pressure on store operating expenses – rental, labour, utility - PMI started cigarette price war - Fierce competition Actions: ƒ Strong promotions to drive comparable store

  16. Slide 16: 2006 Pearl River Delta Market Outlook

    2006 Pearl River Delta Market Outlook + Obtained approval for Sun-High Chain (200 stores) - completion in 2nd quarter + Strong comparable store growth - Upward movements in raw material, energy and logistics costing - Stable rental but upward pressure on labour and utility costs

  17. Slide 17: 2006 Market Outlook: To Summarize

    2006 Market Outlook To Summarize ƒ Better market conditions but uncertainties due to inflation pressure or operating expenses and cigarette price war in Hong Kong ƒ Completion of acquisition of Sun-High Chain ƒ First full year of multi-city expedited growth ƒ Peak investment year for the Pearl River

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