Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2014 Earnings Presentation
27 slides from Convenience Retail Asia's earnings presentation, Aug 14, 2014
Slide 1: Convenience Retail Asia Ltd 2014 Interim Results Announcement
Convenience Retail Asia Ltd 2014 Interim Results Announcement 14 August 2014
Slide 2: Agenda
Agenda Hong Kong & China Retail Markets Key Highlight 2014 First Half Financial Results Highlight 2014 Update & Outlook Question & Answer 2
Slide 3: Hong Kong & China Retail Markets Key Highlight
Hong Kong & China Retail Markets Key Highlight 3
Slide 4: Hong Kong Retail Market
Hong Kong Retail Market Total Retail Sales Value Composite CPI 30 8 24.9 June YTD: -1.3% June YTD: +3.9% 20 14.4 6 5.3 Year-on-year % change Year-on-year % change 9.8 11.0 4.6 10 4.1 4.3 3.9 3.9 3.7 3.7 4 3.6 0 -2.2 -1.5 -3.9 2 -10 -6.9 -9.9 -20 0 2011FY 2012FY 2013FY 201401 201402 201403 201404 201
Slide 5: China Retail Market
China Retail Market Total Retail Sales Value Consumer Price Index 25 7 June YTD: +12.1% June YTD: +2.3% 6 20 5.4 17.1 Year-on-year % change 5 Year-on-year % change 15 14.3 13.1 4 11.8 12.2 11.9 12.5 12.4 10 3 2.6 2.6 2.5 2.5 2.3 2.4 2.0 1.8 2 5 1 0 0 201401-02 201403 201404 201405 201406 2011FY 2012
Slide 6: Key Highlight of the Hong Kong & Southern China Markets
Key Highlight of the Hong Kong & Southern China Markets Hong Kong Market Soft consumer demand High lease renewal at historically high increase despite shop vacancies Difficult to hire and retain frontline staff Newspaper and magazine volume decreasing Southern China Market Stable consumer
Slide 7: New Products and Re-inventing
New Products and Re-inventing 7
Slide 8: New Products and Re-inventing: Value Zone
New Products and Re-inventing Value Zone 8
Slide 9: New Products and Re-inventing: Ice Cream Zone
New Products and Re-inventing Ice Cream Zone 9
Slide 10: O2O Development
O2O Development Showrooming Pure Play On Transaction Online Brick & Off Reverse Mortar Showrooming Off On Initiation 10
Slide 11: www.FingerShopping.com Website
www.FingerShopping.com Website 11
Slide 12: New Products and Re-inventing
New Products and Re-inventing 12
Slide 13: New Products and Re-inventing
New Products and Re-inventing 13
Slide 14: New Products and Re-inventing
New Products and Re-inventing 14
Slide 15: 2014 First Half Financial Results Highlight
2014 First Half Financial Results Highlight 15
Slide 16: Number of Stores
Number of Stores End of 1H2013 Opened Closed 1H2014 2013 Circle K Hong Kong 335 335 11 (10) 336 Circle K Southern China 81 80 2 (2) 80 Guangzhou (owned) 70 68 2 (1) 69 Guangzhou (franchised) 10 11 - - 11 Shenzhen 1 1 - (1) - Circle K Macau (franchised) 24 25 1 (1) 25 Circle K Zhuhai (franchise
Slide 17: Group Turnover
Group Turnover + 3.1% 3,000 2,500 2,171.6* 2,238.6* 2,000 469.1 472.2 HK$ Million Saint Honore 1,500 Circle K 1,000 1,739.0 1,801.4 500 0 1H2013 1H2014 ∗ Less inter-group sales: HK$36.5M in 1H2013 and HK$35.0M in 1H2014 17
Slide 18: Gross Profit & Other Income
Gross Profit & Other Income 40 + 0.5% 38 36.8 36.3 % of Turnover 36 34 32 30 1H2013 1H2014 18
Slide 19: Group Store Operating Expenses
Group Store Operating Expenses + 0.4% 30 28 26.5 26.9 % of Turnover 26 24 22 20 1H2013 1H2014 19
Slide 20: Group Net Profit
Group Net Profit 80 Net Profit: -19% 60.1 Excluding FingerShopping and 60 48.7 Interest Income & Exchange 7.2 Gain/Loss: +0.9% HK$ Million 40 20 0 -1.6 -5.5 -0.8 -20 1H2013 1H2014 FingerShopping Loss Interest Income & Exchange Gain/Loss 20
Slide 21: Net Profit by Market
Net Profit by Market (HK$ Million) 1H2013 1H2014 Change Hong Kong & Macau Markets 74.2 74.8 +0.8% China Market (19.7) (19.8) -0.5% FingerShopping (1.6) (5.5) -2x Interest Income & Exchange Gain/(Loss) 7.2 (0.8) -1x CRA Group Net Profit 60.1 48.7 -19.0% 21
Slide 22: Group Net Profit as % of Turnover
Group Net Profit as % of Turnover Net Profit: -0.6% 4 Excluding FingerShopping and Interest Income & Exchange Gain/Loss: -0.1% 3 2.8 2.2 % of Turnover 2 1 0 1H2013 1H2014 22
Slide 23: Basic Earnings Per Share
Basic Earnings Per Share Net Profit: -19.6% 10 Excluding FingerShopping and 8.12 Interest Income & Exchange 8 Gain/Loss: -0.1% 6.53 6 HK Cents 4 2 0 1H2013 1H2014 23
Slide 24: 1H2014 Financial Results Highlight
1H2014 Financial Results Highlight 1H2013 1H2014 Change Number of Stores 594 595 +1 store Group Turnover (HK$M) 2,171.6 2,238.6 +3.1% Group Net Profit (HK$M) 60.1 48.7 -19.0% Excluding FingerShopping and Interest 54.5 55.0 +0.9% Income & Exchange Gain/(Loss) Group Net Profit as % of Turnover 2.8 2
Slide 25: 2014 Update & Outlook
2014 Update & Outlook 25
Slide 26: 2014 Update & Outlook
2014 Update & Outlook Hong Kong market will likely be more challenging than 1st Half Political disputes Weak consumer sentiment to spend High operating costs to continue China market’s growth continues to improve but at slow pace Austerity measures to continue No major stimulus booster
Slide 27: Thank You!
Thank You! 27
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