Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — FY2020 Earnings Presentation
36 slides from Convenience Retail Asia's earnings presentation, Mar 23, 2021
Slide 1: 2020 Annual Results Announcement
Convenience Retail Asia Limited 2020 Annual Results Announcement 23 March 2021
Slide 2: Presentation Disclaimer
Presentation Disclaimer This Document (the “Document”) is for information purposes only. This Document is not intended to form the basis of any investment decision nor does it constitute a recommendation or advice as to how the reader should act on any matter. The information in this Document is an
Slide 3: Agenda
Agenda 2020 Hong Kong Retail Market Key Highlights 2020 Financial Results Highlights 2021 Outlook 3
Slide 4: 2020 Hong Kong Retail Market Key Highlights
2020 HONG KONG RETAIL MARKET KEY HIGHLIGHTS 4
Slide 5: Economic Recession Deepened In Hong Kong
Economic Recession Deepened In Hong Kong Source: PwC – 2021 HK Retail Outlook & Opportunities for Retailers in Greater Bay Area Report 5
Slide 6: Economic Recession Deepened In Hong Kong
Economic Recession Deepened In Hong Kong Total Retail Sales Value & Volume YOY % change 20 Dec YTD Value: -24.3% Dec YTD Volume: -25.5% 8.7 10 7.6 2.2 1.9 0 -10 -8.7 -4.1 -11.1 -4.7 -12.3 -13.1 -12.8 -9.2 -13.2 -20 -13.4 -13.3 -21.5 -14.0 -24.7 -23.1 -30 -23.1 -25.3 -23.8 -32.9 -40 -36.1 -34.0 -44.0
Slide 7: MTR Latest Passenger Number
MTR Latest Passenger Number Domestic Service Monthly Total YTD 2020 vs. YTD 2019 : 200,000 -27% 180,000 160,000 148,219 144,919 142,502 135,990 138,219 140,000 126,288 132,315 130,922 126,948 116,523 123,107 120,000 110,061 113,558 114,346 97,001 100,948 91,097 92,985 100,000 84,048 78,520 108,456 1
Slide 8: Strategies Dealing With Coronavirus Crisis
Strategies Dealing With Coronavirus Crisis Safety, Health & Wellness for Our People, Customers & Community Office Store 8
Slide 9: Helping The Hong Kong Community
Helping The Hong Kong Community 100,000 個 9
Slide 10: Helping The Hong Kong Community
Helping The Hong Kong Community 550,000 Circle K Meal Box 200,000 Saint Honore / Food Coupons Bread Coupons HK$1,000,000 to Charities & Partners 10
Slide 11: Acquisition of CVS Business By ACT
Acquisition of CVS Business By ACT Date 7 December 2020 EGM – 99.9% voted Yes 21 December 2020 Completion on Term 30 December 2020 Payment of Special Dividend Completed End April 2021 Final Adjustment 11
Slide 12: Weak Retail Performance
Weak Retail Performance ESPRITES 5616 SARA HE . Tan RATA Ia bauhaus }2 ss neeare felbBaunauc se FARE Ge : RBeSMRISE% Be : . WMT RWS LINE FRIENDS Storei 218% ea ee A ASE : AAAS EAA ? 12
Slide 13: The "Plus" Strategies Is The Right Direction
The 3 “Plus” Strategies Is The Right Direction TFP Middle Income - Home Makers Both Working and non Working Competitiveness 1. Focus on “Internet Plus” customers 2. Deliver “4P’s Plus” relevant customer experience 3. Transition to “B&M Plus” (O2O) business models 13
Slide 14: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience Cake Easy exceeded 830,000 members 14
Slide 15: Mon cher
Mon cher Mon cher Sogo Shop (opened 1st September 2020) A Japanese brand since year 2003 One of the key cake brands in Japanese department stores An expanding brand in Asia, total 46 shops (Japan – 21 shops ; Korea – 20 shops ; Shanghai – 4 shops ; Hong Kong – 1 shop) A well developed brand
Slide 16: Mon cher Pop-up Store at Langham Place, Mongkok
Mon cher Pop-up Store at Langham Place, Mongkok 16
Slide 17: New Collections & Services
New Collections & Services 17
Slide 18: The Tenth Store In Hong Kong
The Tenth Store In Hong Kong Lee Theatre Plaza, Causeway Bay (opened 8th January 2020) 18
Slide 19: The Eleventh Store In Hong Kong
The Eleventh Store In Hong Kong MiraPlace, Tsim Sha Tsui (opened 12th June 2020) 19
Slide 20: 2020 Overall Results To Conclude
2020 Overall Results To Conclude 2020 one of the most unusual and difficult years Grateful we were able to end the year with great achievements People and families are safe and well HEARTS Culture to take care of each other Helping the community Circle K and Saint Honore achieving plan
Slide 21: 2020 Financial Results Highlights
2020 FINANCIAL RESULTS HIGHLIGHTS 21
Slide 22: Number of Stores
Number of Stores End of End of Opened Closed 2019 2020 Bakery Group 126 6 (12) 120 Saint Honore - HK & Macau 99 5 (11) 93 Saint Honore - China 27 - (1) 26 Mon cher - 1 - 1 Zoff 9 2 - 11 Continuing Operations 135 8 (12) 131 Discontinued Operation 383 11 (21) 373 22
Slide 23: Group Turnover
Group Turnover 2nd Half Full Year (HK$ Million) 2019 2020 2019 2020 Change Change Bakery Group 584 597 2.1% 1,092 1,077 -1.4% Zoff 52 57 8.7% 105 115 10.7% Continuing Operations 636 654 2.7% 1,197 1,192 -0.5% Discontinued Operation 2,338 2,358 0.9% 4,524 4,717 4.3% 23
Slide 24: Group Gross Profit & Other Income
Group Gross Profit & Other Income Continuing operations only 2nd Half Full Year 80 80 60 54.5 55.9 60 54.0 55.6 % of Turnover % of Turnover 40 40 20 20 0 0 2019 2020 2019 2020 24
Slide 25: Group Store Operating Expenses
Group Store Operating Expenses Continuing operations only 2nd Half Full Year 50 +0.5% 50 +1.0% 37 40 37 38 40 36 % of Turnover % of Turnover 30 30 20 20 10 10 0 0 2019 2020 2019 2020 25
Slide 26: Group Net Profit
Group Net Profit 2nd Half Full Year (HK$ Million) 2019 2020 2019 2020 Change Change Continuing Operations 25 54 1x% 33 61 84.8% Discontinued Operation 101 125 23.8% 175 200 14.3% Disposal Gain - 2,879 N/A - 2,879 N/A Total Group Net Profit 126 3,058 23x 208 3,140 14x Remarks: Circle K Net Profit con
Slide 27: 2020 Financial Results Highlight
2020 Financial Results Highlight 2019FY 2020FY Change Number of Stores 135 131 -4 (continuing operations only) Group Turnover (HK$M) 1,197 1,192 -0.5% (continuing operations only) Net Profit (HK$M) 33 61 84.8% (continuing operations only) Total Group Net Profit (HK$M) 208 3,140 14x Basic Earnings Pe
Slide 28: CRA 2020 Excluding Discontinued Operation
CRA 2020 Excluding Discontinued Operation HK$1.2 Billion in Turnover HK$61 Million Net Profit Total Asset HK$1.35 Billion Total Equity of HK$580 Million, Liabilities of HK$770 Million Cash Balance of about HK$373 Million, No bank loan 28
Slide 29: 2021 Outlook
2021 OUTLOOK 29
Slide 30: Overall Hong Kong Market
Overall Hong Kong Market The COVID-19 will continue to disrupt Hong Kong for most of 2021 With warmer weather and vaccinations, overall situation will continue to improve and Hong Kong should enjoy a much-needed break before Q4 2021 Some pent-up demands will fuel local consumers’ spending Bu
Slide 31: CRA Guiding Strategies
CRA 7 Guiding Strategies 1. O2O Business Model & Doing It Right 2. Adopt (EFS) Easy, Fast & Simple in everything we do 3. Excellent Customer Intimacy & Customer Experience (CX) 4. Up-to-date, Relevant & Clearly Defined Brand Values 5. Always Reinventing 6. People Development & Succession Planning 7.
Slide 32: CRA 2021 & Beyond Major Strategic Actions
CRA 2021 & Beyond Major Strategic Actions 1. To reinvent, leverage our strengths and expand in the Hong Kong strong-hold market O2O Business Models Safe & EFS (Easy, Fast & Simple) for customers to shop with us Right store economics in the new normal 2. Take core competencies to expand in the
Slide 33: 2021 Actions
Vision: We bake for the happiness & sharing moments of our customers 2021 Actions 1 Sales and Operations Excellence TFP 2 Marketing / Category Management Excellence Middle Income - Home Makers EFS Both Working and non Working 3 Digital CRM to the Next Level Competitiveness 4 Manufacturing / Procurem
Slide 34: 2021 Actions
Vision: 1st in Mind Japanese Fast Fashion Eyewear Chain 2021 Actions 1 Uplift Japan Quality Services (JAF) 2 Build up “Always Fresh” Image 3 Operation Excellence 4 Marketing Excellence 5 Store Model Development 34
Slide 35: CRA In 2021
CRA In 2021 Post-COVID 19 New Normal comes with new challenges and new opportunities We have the right DNA, knowledge, competencies, teams, brands and strategies for the coming era Longing our strengths and building Viability, Agility & Resilience in the 6 enablers Our trend of quality growt
Slide 36: Thank You!
THANK YOU ! 36
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