Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — H1 2017 Earnings Presentation

36 slides from Convenience Retail Asia's earnings presentation, Aug 17, 2017

  1. Slide 1: Convenience Retail Asia Limited 2017 Interim Results Announcement

    Convenience Retail Asia Limited 2017 Interim Results Announcement 17 August 2017

  2. Slide 2: Agenda

    Agenda  Hong Kong Retail Market Key Highlight  2017 First Half Financial Results Highlight  2017 Update & Outlook  Question & Answer 2

  3. Slide 3: Hong Kong Retail Market Key Highlight

    HONG KONG RETAIL MARKET KEY HIGHLIGHT 3

  4. Slide 4: Hong Kong Retail Market

    Hong Kong Retail Market Total Retail Sales Value Composite CPI 10 6 June YTD: -0.6% June YTD: +1.3% 8 5 6 4.4 3.0 4 Year-on-year % change Year-on-year % change 4 2 3.0 0.1 0.4 0.1 3 2.4 0 2.0 2.0 1.9 -2 -0.2 2 -1.0 1.3 -4 1 0.5 -3.7 -6 -5.8 0 -8 -0.1 -10 -8.1 -1 201701 201702 201703 201704 201705 20

  5. Slide 5: Hong Kong Retail Market

    Hong Kong Retail Market Apple Daily News 3/8/2017 HK Economic Times 3/8/2017 Apple Daily News 2/8/2017 HK Economic Times 1/8/2017 HK Economic Journal 17/7/2017 Ming Pao Daily News 8/7/2017 5

  6. Slide 6: Re-inventing Strategy Lifting Customer Experience

    Re-inventing Strategy Lifting Customer Experience 6

  7. Slide 7: OK Stamp It: Easy Play, Easy Reward

    OK Stamp It Easy Play • Easy Reward Visit Circle K with Registration purchase for 30 days Special Privileges: -$30 OK Cash coupon within 3 consecutive -Extra stickers for Premium Redemption months to become -E-gifts with pleasant surprises GOLD member -St. Honore VIP offers -…… 7

  8. Slide 8: OK Stamp It – Customer Engagement Tools

    OK Stamp It – Customer Engagement Tools 1. For Value 2. For Fun 3. Social Sharing 4. e-Gift Coupon 5. Customer 6. OK Dollar Experience 8

  9. Slide 9: OK Stamp It – KPIs

    - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 23/06/2016 07/07/2016 21/07/2016 04/08/2016 18/08/2016 01/09/2016 15/09/2016 29/09/2016 13/10/2016 27/10/2016 10/11/2016 24/11/2016 08/12/2016 22/12/2016 05/01/2017 19/01/2017 02/02/2017 16/02/2017 02/03/2017 Cumulative Total

  10. Slide 10: Circle K's O2O Business Model

    Circle K’s O2O Business Model Customer Buying Process Store Network Awareness   Consideration   Decision   Traffic into stores Transaction   Repeat   10

  11. Slide 11: Collaboration With All Major FMCG Brands

    Collaboration With All Major FMCG Brands 11

  12. Slide 12: OK Stamp It Won Multiple Awards

    OK Stamp It Won Multiple Awards Best (Top 1) 2017Q1 Ads Leaderboard Octopus Partner Awards 2016 Circle K Pokémon Video for 「OK齊齊印」app - The Octopus Innovation Award Best of 2016 Ads Leaderboard DoReMi Monchhichi Golden Globe Tigers 2017 Awards Marketing Magazine - Mob-Ex Awards 2017 Best App – “Cons

  13. Slide 13: Flagship store selected by Planet Retail as top store concept

    Our flagship store in Causeway Bay has been selected by Planet Retail as one of the top store concepts in the world for Q1 2017 13

  14. Slide 14: Circle K New Generation (4G) Store

    Circle K New Generation (4G) Store Novelty products on the The store ground floor has two floors Circle K flagship store in the centre of Causeway Bay The Simply Great Coffee on the first floor along with seating 14

  15. Slide 15: Re-inventing Strategy Lifting Customer Experience

    Re-inventing Strategy Lifting Customer Experience Saint Honore App Exceeding 200,000 Members 15

  16. Slide 16: 2017 First Half Financial Results Highlight

    2017 FIRST HALF FINANCIAL RESULTS HIGHLIGHT 16

  17. Slide 17: Number of Stores

    Number of Stores End of 1H2016 Opened Closed 1H2017 2016 Circle K Hong Kong 324 331 6 (6) 331 Circle K Guangzhou (franchised) 72 71 2 (9) 64 Circle K Macau (franchised) 28 30 1 0 31 Circle K Zhuhai (franchised) 18 16 0 (1) 15 Saint Honore HK & Macau 103 98 4 (4) 98 Saint Honore Southern China 41 41

  18. Slide 18: Group Turnover

    Group Turnover +3.8% 3,000 2,500 2,339.0* 2,426.8* 495.6 491.3 2,000 HK$ Million 1,500 1,000 1,880.4 1,970.3 500 0 2016 2017 Circle K Saint Honore ∗ Less inter-group sales: HK$37.0M in 1H2016 & HK$34.8M in 1H2017 18

  19. Slide 19: Group Gross Profit & Other Income

    Group Gross Profit & Other Income 40 38 35.9 36.3 % of Turnover 36 34 32 30 2016 2017 19

  20. Slide 20: Group Store Operating Expenses

    Group Store Operating Expenses 30 0% 28 26.3 26.3 % of Turnover 26 24 22 20 2016 2017 20

  21. Slide 21: Group Net Profit

    Group Net Profit +10.2% 70 60 57.1 51.8 50 HK$ Million 40 30 20 10 0 2016 2017 21

  22. Slide 22: Net Profit by Market

    Net Profit by Market (HK$ Million) 1H2016 1H2017 Change Hong Kong & Macau Markets 66.2 68.4 +3.4% Southern China Market (4.0) (3.0) +24.3% e-commerce Group (10.4) (8.3) +20.0% CRA Group Net Profit 51.8 57.1 +10.2% 22

  23. Slide 23: Group Net Profit as % of Turnover

    Group Net Profit as % of Turnover 4 +0.2% 3 2.4 % of Turnover 2.2 2 1 0 2016 2017 23

  24. Slide 24: Basic Earnings Per Share

    Basic Earnings Per Share +9.5% 9 8 7.52 6.87 7 6 HK Cents 5 4 3 2 1 0 2016 2017 24

  25. Slide 25: 2017 First Half Financial Results Highlight

    2017 First Half Financial Results Highlight 1H2016 1H2017 Change Number of Stores 586 582 -4 Group Turnover (HK$M) 2,339.0 2,426.8 +3.8% Group Net Profit (HK$M) 51.8 57.1 +10.2% Net Profit as % of Turnover 2.2% 2.4% +0.2% Basic Earnings Per Share (HK cents) 6.87 7.52 +9.5% Interim Dividends (HK cent

  26. Slide 26: 2017 Update & Outlook

    2017 UPDATE & OUTLOOK 26

  27. Slide 27: 2017 Update & Outlook

    2017 Update & Outlook 1. Stagnant Hong Kong retail market Total Retail Sales Value 35  Drop in PRC tourist spending 30 25 20 Year-on-year % change Zero growth from local 15  10 5 consumers 0 -5 -10 -15  Online disruption -20 -25 -30 Experience spending taking 5/2014 7/2014 9/2014 11/2014 1/2015 3

  28. Slide 28: Circle K's Plus Strategies: Focus on Internet+ Customer

    Circle K’s 3 “Plus” Strategies Vision: We make our customers’ lives easier ! “Internet+” Customer 16 - 60 1. Focus On The Internet+ Customer 28

  29. Slide 29: Circle K's Plus Strategies: Deliver 4P's+ Experience

    Circle K’s 3 “Plus” Strategies Vision: We make our customers’ lives easier ! Up-to-date & ASN Relevant “Internet+” Fun & Novelty Customer 16 - 60 2. Deliver 4P’s+ Experience 29

  30. Slide 30: Circle K's Plus Strategies: Launch B&M+ (O2O) Model

    Circle K’s 3 “Plus” Strategies Customer Buying Process Brick & Mortar Online Awareness   Consideration   Decision   Transaction   Repeat   3. Launch Effective B&M+ (O2O) Retailing Model 30

  31. Slide 31: Circle K's Plus Strategies: Launch B&M+ (O2O) Model

    Circle K’s 3 “Plus” Strategies Customer Buying Process Brick & Mortar Online Awareness   Consideration   Decision   Transaction   Repeat   3. Launch Effective B&M+ (O2O) Retailing Model 31

  32. Slide 32: Circle K's Plus Strategies: Launch B&M+ (O2O) Model

    Circle K’s 3 “Plus” Strategies Customer Buying Process Brick & Mortar Online Awareness   Consideration   Decision   Traffic into stores Transaction   Repeat   3. Launch Effective B&M+ (O2O) Retailing Model 32

  33. Slide 33: Circle K's Plus Strategies: Launched B&M+ (O2O) Model

    Circle K’s 3 “Plus” Strategies Customer Buying Process Store Network Awareness   Consideration   Decision   Traffic into stores Transaction   Repeat   3. Launched Effective B&M+ (O2O) Retailing Model 33

  34. Slide 34: Saint Honore's Strategies

    Saint Honore’s Strategies Vision: We bake for the happiness & sharing moments of our customers TFP Middle Income - Speed Home Makers Both Working and non Working Competitiveness 34

  35. Slide 35: The Future Is Clear & Bright

    The Future Is Clear & Bright Up-to-date & ASN Relevant “Internet+” Fun & Customer Novelty 16 - 60 Just Execute The Strategies Right ! 35

  36. Slide 36: Thank You!

    THANK YOU ! 36

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