Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2011 Earnings Presentation
27 slides from Convenience Retail Asia's earnings presentation, Jul 27, 2011
Slide 1: Convenience Retail Asia Limited 2011 Half Year Results Announcement
Convenience Retail Asia Limited 2011 Half Year Results Announcement 27 July 2011
Slide 2: Agenda
Agenda Overall Hong Kong and China Retail Markets 1H 2011 Key Highlight 1H 2011 Financial Results Highlight 2011 Update & Outlook Questions & Answers
Slide 3: Hong Kong and China Retail Markets
Hong Kong and China R t il M Retail Markets k t
Slide 4: Hong Kong Retail Market
Hong Kong Retail Market Total Retail Sales Value Composite Consumer Price Index 30 28.1 27.8 27.8 6 5.6 26.2 6. 5.2 25 5 4.6 4.3 4.4 Change Change 20 18.3 4 3.6 34 3.4 Year‐‐on‐year % C Year‐‐on‐year % C 15 3 2.4 10.6 10 8.5 2 5 1 0.5 0.6 0 0 201101 201102 201103 201104 201105 201101 201102 201103 2
Slide 5: Hong Kong Retail Market
Hong Kong Retail Market Retail Value Retail Volume May YTD 2011 vs. May YTD 2010 (% change) All Retail Outlets +23 6% +23.6% +18 4% +18.4% Other consumer durable goods +102.5% +118.9% Jewellery, y, watches & clocks,, and +48.7% 48 7% +37.2% 37 2% valuable gifts Clothing, footwear and allied products
Slide 6: China Retail Market
China Retail Market Total Retail Sales Value Consumer Price Index 30 8 64 6.4 25 5.9 21.6 6 5.4 5.3 5.5 Change Change 19.9 4.9 4.9 20 18.4 4 17.1 17.4 17 16 9 17.7 17 1 16.9 Year‐on‐year % C Year‐‐on‐year % C 4 3.3 15.5 15 11.6 2 10 0 5 ‐0.7 0 ‐2 201101 201102 201103 201104 201105 201106 201101 2011
Slide 7: 1H 2011 Key Highlight
Convé ence) : Retail ite) 1H 2011 Key Highlight
Slide 8: Key Highlight Hong Kong Market
1H 2011 Key Highlight Hong Kong Market 1. Mainland tourist shopping, improvement in local consumer sentiment, inflation boosted Hong Kong retail value growth 2. Inflation, Inflation, Inflation 3. Customers accepting reasonable price increase 4. Very high rental making it more difficult to expand sto
Slide 9: Hong Kong & Macau Markets New Products
Hong Kong & Macau Markets New Products
Slide 10: Hong Kong & Macau Markets Marketing & Promotions
Hong Kong & Macau Markets Marketing & Promotions
Slide 11: New Generation of Stores
Convéhience Asia New Generation of Stores ih a
Slide 12: Other Highlights
Other Highlights 2 2. Ci l K gaining Circle i i on brand b d leadership: l d hi ¾ Campaign and TNS • 2011 Top 10 Motivating Advertiser • 2011 Top 10 Brand in Hong Kong ¾ Hong Kong Retail Management Association • 2010 Service Retailer of CVS Category • Service Category Leader of CVS Category for the
Slide 13: Key Highlight Southern China Market
1H 2011 Key Highlight Southern China Market 1. Food, rental and labour costs increased higher than official inflation rates 2. Consumers are becoming more prudent in spending 3 3. Added net 5 Circle K stores and 6 Saint Honore stores while renovating existing store network 4 4. Healthy increase in c
Slide 14: 1H 2011 Financial Results Highlight
1H 2011 Financial Results Highlight
Slide 15: Number of Stores
1H 2011 Financial Results Highlight Number of Stores End of End of Opened Closed 2010 1H 2011 Circle K Hong Kong 318 9 (8) 319 Circle K Southern China 63 10 (5) 68 Guangzhou (owned) 56 10 (5) 61 Guangzhou (franchised) 6 ‐ ‐ 6 Shenzhen Sh h 1 ‐ ‐ 1 Circle K Macau (franchised) 21 1 ‐ 22 Ci l K Z
Slide 16: Group Turnover
1H 2011 Financial Results Highlight Group Turnover 3,575.2 14.1% 4,000 3,349.3 Million 3,000 1 886 7* 1,886.7 HK$ M 1,653.4* 2,000 403.4 340.5 1 341 5 1,341.5 1 516 6 1,516.6 1,000 0 2009FY 2010FY 1H2010 1H2011 Circle K Saint Honore * Less inter‐group sales: HK$28.6M in 1H 2010 and HK$33.3M in 1H 20
Slide 17: Gross Margin & Other Income
1H 2011 Financial Results Highlight Gross Margin & Other Income 0.5% 38% 36.9% 37.0% nover 37% 36.5% 36.5% % of Turn 36% 35% 2009FY 2010FY 1H2010 1H2011
Slide 18: Store Operating Expenses
1H 2011 Financial Results Highlight Store Operating Expenses 30% 0.8% 28% 26.9% 26.5% nover 25.9% 25.7% % of Turn 26% 24% 22% 20% 2009FY 2010FY 1H2010 1H2011
Slide 19: Group Net Profit
1H 2011 Financial Results Highlight Group Net Profit 160 136.4 16.5 35.3% 120 HK$ Million 90.4 78 0 78.0 80 119.9 57.7 18.0 40 39.7 0 2009FY 2010FY 1H2010 1H2011 Gain on Property Disposal
Slide 20: Net Profit By Market
1H 2011 Financial Results Highlight Net Profit By Market (HK$ Million) 1H2010 1H2011 Hong Kong and Macau Markets 70.9 88.6 China Market (13.2) (10.6) CRA Group Total 57.7 78.0
Slide 21: Net Profit as % of Turnover
1H 2011 Financial Results Highlight Net Profit as % of Turnover 0.6% 5% 4.1% 3.8% 4% 3.5% nover 2.7% % of Turn 3% 2% 1% 0% 2009FY 2010FY 1H2010 1H2011
Slide 22: Basic Earnings Per Share
1H 2011 Financial Results Highlight Basic Earnings Per Share 25 34.9% 18.67 86 20 nts 12.39 15 HK Cen 10.66 7.90 10 5 0 2009FY 2010FY 1H2010 1H2011
Slide 23: 1H 2011 Financial Results Highlight
1H 2011 Financial Results Highlight 1H2010 1H2011 Change Number of Stores 501 539 +38 p Turnover (HK$M) Group ( $ ) 1,653.4 , 1,886.7 , +14.1% Group Net Profit (HK$M) 57.7 78.0 +35.3% Net Profit as % of Turnover 3.5% 4.1% +0.6% g Per Share ((HK cents)) Basic Earnings 7.9 10.66 +34.9% Dividends Int
Slide 24: Other Highlights
Other Highlights 1. Successfully completed transfer of listing to the Main Board on 20 June 2011
Slide 25: 2011 Update & Outlook
Convé ence) : Retail ite) 2011 Update & Outlook
Slide 26: 2011 Update & Outlook
2011 Update & Outlook Exceptionally strong 1H 2011 results Favorable outlook for top‐line p sales Gross margin and net profit margin expected to be under pressure due to: ¾ Large increase in cost of good, rental and labour costs ¾ Customers wary of price increases ¾ Lower gross margin on cigarette s
Slide 27: Thank You!
Convenience Retail Bt Thank You!
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