Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q3 2004 Earnings Presentation

23 slides from Convenience Retail Asia's earnings presentation, Oct 28, 2004

  1. Slide 1: 3rd Quarter 2004 Results Presentation

    3 Quarter 2004 rd Results Presentation A member of the Li & Fung (Retailing) Group 28 October 2004

  2. Slide 2: Hong Kong Total Retail Sales Value

    Hong Kong Total Retail Sales Value Year-on-year % Change 25 Overall Jan - Aug 2004: +12.1% 20 Supermarket: + 0.8% 15 10 % Change 5 0 -5 -10 -15 -20 01/03 02/03 03/03 04/03 05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 01/04 02/04 03/04 04/04 05/04 06/04 07/04 08/04 Source: Census and Statistics De

  3. Slide 3: Guangzhou Total Retail Sales Value

    Guangzhou Total Retail Sales Value Year-on-year % Change 16 Overall Jan – Aug 2004: +12.3% 14 12 10 % Change 8 6 4 2 0 01/03 02/03 03/03 04/03 05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 01/04 02/04 03/04 04/04 05/04 06/04 07/04 08/04 Source: Bureau of Statistics, Guangzhou 3

  4. Slide 4: Agenda

    3rd Quarter 2004 Results Presentation Agenda  3rd Quarter 2004 Financial Results Highlights  2004 Outlook & Update  Questions & Answers 4

  5. Slide 5: Group Turnover – 3rd Quarter

    2004 Financial Results Highlights Group Turnover – 3rd Quarter 2,000 1,526.1 1,393.5 1,500 + 16.6% HK$ Million 1,000 404.9 472.1 500 0 2002 2003 3rd Qtr 2003 3rd Qtr 2004 No. of store – HK 166 186 180 197 No. of store - China 2 7 5 15 5

  6. Slide 6: Comparable Stores Sales – 3rd Quarter

    2004 Financial Results Highlights 165 Comparable Stores Sales – 3rd Quarter 450 + 5.2% 405.5 385.4 400 HK$ Million 350 300 3rd Qtr 2003 3rd Qtr 2004 6

  7. Slide 7: Strong Promotions

    Strong Promotions Food Services Media Student Loyalty 7

  8. Slide 8: Group Turnover – September YTD

    2004 Financial Results Highlights Group Turnover – September YTD 2,000 + 15.6% 1,526.1 1,393.5 1,500 1,308.5 1,132.1 HK$ Million 1,000 472.1 404.9 432.8 500 377.6 349.6 403.6 0 2002 2003 Sep YTD Sep YTD 2003 2004 No. of store – HK 166 186 180 197 No. of store - China 2 7 5 15 8

  9. Slide 9: Gross Margin / Other Income – 3rd Quarter

    Gross Margin / Other Income – 3rd Quarter (excluding interest) 35% - 0.1% 34% 32.8% 32.9% 32.8% 32.6% % of Sales 33% 32% 31% 30% 2002 2003 3rd Qtr 2003 3rd Qtr 2004 9

  10. Slide 10: Upward Pressure on Store Operating Expenses – 3rd Quarter

    Upward Pressure on Store Operating Expenses – 3rd Quarter 30% 22.7% 23.3% 22.6% 23.3% 25% 20% 6.9% 7.2% 7.1% 7.6% % of Sales 15% 6.9% 7.0% 6.6% 6.8% 10% 5% 8.9% 9.1% 8.9% 8.9% 0% 2002 2003 3rd Qtr 2003 3rd Qtr 2004 Labour Cost Rental Cost Other Expenses 10

  11. Slide 11: Group Net Profit – 3rd Quarter

    2004 Financial Results Highlights Group Net Profit – 3rd Quarter 70 60.4 60.7 60 50 + 12% HK$ Million 40 30 20.5 18.2 20 10 0 2002 2003 3rd Qtr 2003 3rd Qtr 2004 11

  12. Slide 12: Group Net Profit – September YTD

    2004 Financial Results Highlights Group Net Profit – September YTD 70 60.7 + 12% 60.4 60 47 50 42 HK$ Million 40 20.5 18.2 30 20 18.4 16.6 10 7.2 8.5 0 2002 2003 Sep YTD Sep YTD 2003 2004 12

  13. Slide 13: Net Profit as % of Sales – 3rd Quarter

    2004 Financial Results Highlights Net Profit as % of Sales – 3rd Quarter 6% 5% 4.5% 4.3% 4.3% 4.0% 4% % of Sales 3% 2% 1% 0% 2002 2003 3rd Qtr 2003 3rd Qtr 2004 13

  14. Slide 14: Net Profit as % of Sales – Sep YTD

    2004 Financial Results Highlights Net Profit as % of Sales – Sep YTD 6% 5% 4.3% 4.0% 3.7% 3.6% 4% % of Sales 3% 2% 1% 0% 2002 2003 Sep YTD Sep YTD 2003 2004 14

  15. Slide 15: Basic Earnings Per Share – 3rd Quarter

    2004 Financial Results Highlights Basic Earnings Per Share – 3rd Quarter 10 9.1 9.1 8 + 0.4 Cent 6 HK Cents 4 3.1 2.7 2 0 2002 2003 3rd Qtr 2003 3rd Qtr 2004 15

  16. Slide 16: Basic Earnings Per Share – Sep YTD

    2004 Financial Results Highlights Basic Earnings Per Share – Sep YTD 10 9.1 9.1 + 0.8 Cent 8 7.1 6.3 6 HK Cents 3.1 2.7 4 2.5 2.7 2 1.1 1.3 0 2002 2003 Sep YTD 2003 Sep YTD 2004 16

  17. Slide 17: 3rd Quarter 2004 Financial Results Highlights

    3rd Quarter 2004 Financial Results Highlights 3rd Qtr 2003 3rd Qtr 2004 % Change Group Turnover (HK$ 404.9 472.1 + 17% Million) Group Net Profit (HK$ 18.2 20.5 + 12% Million) Net Profit as % of Sales 4.5% 4.3% - 0.2% Basic Earnings Per Share 2.7 cents 3.1 cents + 0.4 cents 17

  18. Slide 18: Year-On-Year Quarterly Profitability Growth

    Year-On-Year Quarterly Profitability Growth 30 28 * 20 17 11 12 9* 9 10 7 4* 2* % Change 2 0 -10 -20 -27 -30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34

  19. Slide 19: Update & Outlook

    2004 Update & Outlook 19

  20. Slide 20: Circle K Hong Kong – Quality Growth

    2004 Update & Outlook Circle K Hong Kong – Quality Growth  Consumer sentiment continues to improve gradually  High unemployment & mild inflation  Upward pressure on rental and utility costs  Maintain quality growth strategy  Existing number of stores: 200 Committed / In progress: 5 Forecast – e

  21. Slide 21: Circle K China

    2004 Update & Outlook Circle K China  Stores sales and P&L continue to improve  Existing number of stores: 15 Committed / In progress: 7 Forecast – End of 2004: 22  Speed up growth:  Organic growth – Doing it right  Entry into other cities  Small store model trial  Aggressive growth strategie

  22. Slide 22: To Summarize

    2004 Update & Outlook To Summarize  Hong Kong market improving gradually  Rental cost is a concern  China market – expansion strategy instead of P&L issue  Ready for aggressive growth  Customer brand preference, comparable store sales and profitability expected to continue trends of first 9 mon

  23. Slide 23: 3rd Quarter 2004 Results Presentation

    3 Quarter 2004 rd Results Presentation A member of the Li & Fung (Retailing) Group 28 October 2004

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