Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — FY2013 Earnings Presentation

28 slides from Convenience Retail Asia's earnings presentation, Feb 27, 2014

  1. Slide 1: Convenience Retail Asia Ltd 2013 Annual Results Announcement

    Convenience Retail Asia Ltd 2013 Annual Results Announcement 27 February 2014

  2. Slide 2: Agenda

    Agenda  Hong Kong & China Retail Markets Key Highlight  2013 Financial Results Highlight  2014 Update & Outlook  Question & Answer 2

  3. Slide 3: Hong Kong & China Retail Markets Key Highlight

    Hong Kong & China Retail Markets Key Highlight 3

  4. Slide 4: Consumer Confidence Index

    Consumer Confidence Index  Hong Kong optimism remains high despite downward trend in 2013 120 110 110 110 111 110 108 109 108 108 108 108 107 106 104 104 105 100 107 108 107 105 106 105 100 103 104 103 104 101 99 99 99 92 91 90 94 94 94 94 92 93 92 93 90 90 91 89 89 88 89 85 80 70 Q1 Q2 Q3 Q4 Q1 Q2

  5. Slide 5: Hong Kong Retail Market

    Year-on-year % change 0 5 10 15 20 25 30 201301 10.5 201302 22.7 201303 9.8 201304 20.7 201305 12.9 201306 14.7 201307 9.3 Source: Census and Statistics Department HKSAR 201308 8.1 201309 5.0 201310 6.3 Total Retail Sales Value 201311 8.5 2013FY: +11.0% 201312 5.7 Year-on-year % change 10 0 2 4 6 8

  6. Slide 6: China Retail Market

    Year-on-year % change 0 5 10 15 20 201301-02 12.3 201303 12.6 201304 12.8 201305 12.9 201306 13.3 201307 13.2 Source: National Bureau of Statistics of China 201308 13.4 201309 13.3 201310 13.3 Total Retail Sales Value 201311 13.7 2013FY: +13.1% 201312 13.6 China Retail Market Year-on-year % change 0

  7. Slide 7: Key Highlight of the Hong Kong & Southern China Markets

    Key Highlight of the Hong Kong & Southern China Markets  Stable local consumer demand while retail growth driven by tourist spending  Online retailing in China disrupting traditional retailing  Shop vacancies picking up but rental still increasing at the highest rate ever  Difficult to hire peop

  8. Slide 8: New Products and Promotions

    New Products and Promotions 8

  9. Slide 9: New Products and Promotions

    New Products and Promotions 9

  10. Slide 10: www.FingerShopping.com Platform

    www.FingerShopping.com Platform 10

  11. Slide 11: Corporate Social Responsibility 2013

    Corporate Social Responsibility 2013 Unsold Bread Donation 2013 CO2 Reduction 2,472 ton New Life Convenience Store Project Voluntary Work Sponsorship for Heifer’s West Yunnan Project (completion in 2013) Re-labeling Work By Haven of Hope 11

  12. Slide 12: Other Highlights

    Other Highlights Excellence in Retail/Shopper Marketing The Quality Bakery and Cake Shop of Quality Life Award 2013 12

  13. Slide 13: 2013 Financial Results Highlights

    2013 Financial Results Highlights 13

  14. Slide 14: Number of Stores

    Number of Stores End of Transfer End of Opened Closed 2012 from/(to) 2013 Circle K Hong Kong 331 20 (16) - 335 Circle K Southern China 83 4 (7) - 80  Guangzhou (owned) 70 4 (5) (1) 68  Guangzhou (franchised) 12 - (2) 1 11  Shenzhen 1 - - - 1 Circle K Macau (franchised) 23 2 - - 25 Circle K Zhuhai

  15. Slide 15: Group Turnover

    Group Turnover 2nd Half Full Year 4,000 6,000 + 5.9% + 4.5% 5,000 4,521.3 3,000 4,270.3 2,349.7 4,000 1,016.3 HK$ Million HK$ Million 2,248.4 950.0 2,000 520.0 547.1 3,000 2,000 3,387.7 3,578.3 1,000 1,762.7 1,839.3 1,000 0 0 2012 2013 2012 2013 Circle K Saint Honore Circle K Saint Honore ∗ Less int

  16. Slide 16: Gross Profit & Other Income

    Gross Profit & Other Income 2nd Half Full Year 40 + 0.6% 40 + 0.4% 38 37.4 38 36.8 36.4 36.8 % of Turnover % of Turnover 36 36 34 34 32 32 30 30 2012 2013 2012 2013 16

  17. Slide 17: Group Store Operating Expenses

    Group Store Operating Expenses 2nd Half Full Year 30 30 + 0.5% + 0.6% 28 28 26.2 26.3 % of Turnover % of Turnover 25.7 26 25.7 26 24 24 22 22 20 20 2012 2013 2012 2013 17

  18. Slide 18: Group Net Profit

    Group Net Profit 2nd Half Full Year 150 300 - 6.3% - 6.9% (Net Operating Profit) 250 199.9 100 96.3 200 90.2 HK$ Million HK$ Million 38.5 150.4 150 50 100 161.4 50 0 0 2012 2013 2012 2013 Property disposal gain 18

  19. Slide 19: Net Profit by Market

    Net Profit by Market 2nd Half Full Year (HK$ Million) 2012 2013 2012 2013 Hong Kong & Macau Markets 108.8 105.4 183.5 185.3 China Market (12.5) (15.2) (22.1) (34.9) CRA Group Net Operating Profit 96.3 90.2 161.4 150.4 19

  20. Slide 20: Group Net Profit as % of Turnover

    Group Net Profit as % of Turnover 2nd Half Full Year 6 6 - 0.5% - 0.5% (Net Operating Profit) 5 5 4.7 4.3 3.8 0.9 4 4 % of Turnover % of Turnover 3.3 3 3 3.8 2 2 1 1 0 0 2012 2013 2012 2013 Property disposal gain 20

  21. Slide 21: Basic Earnings Per Share

    Basic Earnings Per Share 2nd Half Full Year 20 40 - 6.9% - 7.5% (Excluding Property Gain) 15 13.04 30 27.13 12.14 HK Cents 5.22 HK Cents 20.27 10 20 21.91 5 10 0 0 2012 2013 2012 2013 Property disposal gain 21

  22. Slide 22: 2013 Financial Results Highlight – 2nd Half

    2013 Financial Results Highlight – 2nd Half 2H2012 2H2013 Change Number of Stores 589 592 + 3 stores Group Turnover (HK$M) 2,248.4 2,349.7 +4.5% Group Net Operating Profit (HK$M) 96.3 90.2 -6.3% Net Operating Profit as % of Turnover 4.3 3.8 -0.5% Basic Earnings Per Share (HK cents) 13.04 12.14 -6.9%

  23. Slide 23: 2013 Financial Results Highlight – Full Year

    2013 Financial Results Highlight – Full Year 2012FY 2013FY Change Number of Stores 589 592 + 3 stores Group Turnover (HK$M) 4,270.3 4,521.3 +5.9% Group Net Operating Profit (HK$M) 161.4 150.4 -6.9% Gain on Property Disposal (HK$M) 38.5 - N/A Group Net Profit (HK$M) 199.9 150.4 -24.8% Net Operating P

  24. Slide 24: 2014 Update & Outlook

    2014 Update & Outlook 24

  25. Slide 25: 2014 Update & Outlook

    2014 Update & Outlook  Technological progress causing disruptions and habitual changes in how people live, work and shop  Retail volume for Hong Kong consumers remains stable while that of China consumers to increase moderately  Operating expenses continue unfavorable upward trends  Not easy to

  26. Slide 26: Major Actions of Circle K in 2014

    Major Actions of Circle K in 2014 26

  27. Slide 27: To Summarize

    To Summarize  Satisfactory 2013 results  2014 operating environment continues to be tough  Status quo and continuous improvements will not be sufficient  Re-invention and fast adaptation 27

  28. Slide 28: Thank You!

    Thank You! 28

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