Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — Q1 2011 Earnings Presentation
25 slides from Convenience Retail Asia's earnings presentation, May 5, 2011
Slide 1: Convenience Retail Asia Ltd 1st Quarter 2011 Results Announcement
Convenience Retail Asia Ltd 1st Quarter Q 2011 Results Announcement 5 May M 2011
Slide 2: Agenda
Agenda Overall Hong Kong & Guangzhou Retail Markets 1st Quarter 2011 Key Highlight 1st Quarter 2011 Financial Results highlight g g 2011 Update & Outlook Questions & Answers
Slide 3: Hong Kong & Guangzhou Retail Markets
Hong Kong & Guangzhou Retail Markets
Slide 4: Hong Kong Retail Market
Hong Kong Retail Market Total Retail Sales Value Composite Consumer Price Index 30 28.1 5 4.6 26 0 26.0 43 4.3 25 3.7 4 3.6 Change Year‐‐on‐Year % Change 20 18.3 C Year‐‐on‐Year % C 3 2.4 15 10.6 2 10 8.6 1 0.5 5 0.6 0 0 201101 201102 201103 201101 201102 201103 2008FY 2009FY 2010FY 2008FY 2009FY 20
Slide 5: Hong Kong Retail Market
Hong Kong Retail Market Retail Value Retail Volume March YTD 2011 vs. March YTD 2010 (% change) All retail outlets +21.0% +16.3% Other consumer durable goods +80.7% +95.1% Jewellery, watches and clocks, and +42.7% +33.1% valuable gifts Motor vehicles and parts +23 7% +23.7% +20 5% +20.5% Clothing, f
Slide 6: Guangzhou Retail Market
Guangzhou Retail Market Total Retail Sales Value City Consumer Price Index 30.0 8 24.2 23.4 5.9 5.8 5.9 25.0 6 Change Year‐‐on‐Year % Change 21.0 4.4 20.0 4 3.2 C Year‐‐on‐Year % C 16.2 16 2 15.2 16.1 16 1 15.0 2 10.0 0 5.0 ‐2 ‐2.5 00 0.0 ‐4 4 201101 201102 201103 201101 201102 201103 2008FY 2009FY
Slide 7: 1st Quarter 2011 Key Highlight
1st Quarter 2011 Key Highlight
Slide 8: Key Highlight Hong Kong Market
2011Q1 Key Highlight Hong Kong Market Customers accepting reasonable price increase Circle K recorded strong sales as a result of strong consumer spending and promotions The drastic increase in tobacco duty effective 23 February 2011 unfavorably affected store traffic and slowed down the growth mome
Slide 9: New Products, Services & Promotions
New Products, Services & Promotions
Slide 10: Saint Honore New Image 2G Store
Saint Honore New Image 2G Store
Slide 11: Key Highlight Southern China Market
2011Q1 Key Highlight Southern China Market Increase in food prices Minimum wages increased by 18% to RMB1,300 effective March 2011 City Improvement and Education Tax (12% of VAT) effective J January 2011 Consumers are receptive to reasonable price increase All stores improving steadily, with positiv
Slide 12: 1st Quarter 2011 Financial Results Highlight
1st Quarter 2011 Financial Results Highlight
Slide 13: Number of Stores
2011Q1 Financial Results Highlight Number of Stores End of End of Opened Closed 2010 2011Q1 Circle K Hong Kong 318 5 (4) 319 Circle K Southern China 63 7 (2) 68 ‐ Guangzhou (owned) 56 7 (2) 61 ‐ Guangzhou (franchised) 6 ‐ ‐ 6 ‐ Shenzhen Sh h 1 ‐ ‐ 1 Circle K Macau (franchised) 21 ‐ ‐ 21 Circle K Zhu
Slide 14: Group Turnover
2011Q1 Financial Results Highlight Group Turnover 4,000 3,575.2 3,349.3 10.8% 3,000 HK$ Million 2,000 814.8* 903.1* 1,000 170.2 200.4 659.2 719.5 0 2009FY 2010FY 2010Q1 2011Q1 Circle K Saint Honore * Less inter‐group sales: HK$14.6M in 2010Q1 and HK$16.8M in 2011Q1
Slide 15: Gross Margin & Other Income
2011Q1 Financial Results Highlight Gross Margin & Other Income 1.1% 40% 36.9% 36.9% on‐Year % Change 38% 36.5% 35.8% 36% 34% Year‐o 32% 30% 2009FY 2010FY 2010Q1 2011Q1 Excluding interest income
Slide 16: Store Operating Expenses
2011Q1 Financial Results Highlight Store Operating Expenses 40% on‐Year % Change 26.9% 25.9% 26.4% 25.4% 30% 20% Year‐o 10% 0% 2009FY 2010FY 2010Q1 2011Q1
Slide 17: Group Net Profit
2011Q1 Financial Results Highlight Group Net Profit 17.8% Net Profit 160 136.4 151 5% Net Operating Income 151.5% 140 120 90.4 HK$ Million 100 80 60 33.8 39.8 40 18.0* 20 15.8 0 2009FY 2010FY 2010Q1 2011Q1 * Gain on disposal of property
Slide 18: Net Profit By Market
2011Q1 Financial Results Highlight Net Profit By Market (HK$ Million) 2010Q1 2011Q1 Change Hongg Kongg & Macau Markets 40.7 44.6 +9.5% China Market ((6.9)) ((4.8)) +31.0% CRA Group Total 33.8 39.8 +17.8%
Slide 19: Net Profit as % of Turnover
2011Q1 Financial Results Highlight Net Profit as % of Turnover 0.2% 6% 4.2% 4.4% 5% 3.8% % of Turnover 4% 2.7% 3% 2% 1% 0% 2009FY 2010FY 2010Q1 2011Q1
Slide 20: Basic Earnings Per Share
2011Q1 Financial Results Highlight Basic Earnings Per Share 25 17.7% 18 67 18.67 20 HK$ Cents 12.39 15 10 5.45 4.63 5 0 2009FY 2010FY 2010Q1 2011Q1
Slide 21: 2011Q1 Financial Results Highlight
2011Q1 Financial Results Highlight 2010Q1 2011Q1 Change Number of Stores 495 534 +39 Group Turnover (HK$M) 814.8 903.1 +10.8% G Group Net N t Profit P fit (HK$M) 33 8 33.8 39 8 39.8 +17 8% +17.8% Net Profit as % of Turnover 4.2% 4.4% +0.2% Basic Earnings Per Share (HK Cents) 4.63 5.45 +17.7%
Slide 22: 2011 Update & Outlook
Convén lence P Asia 2011 Update & Outlook
Slide 23: 2011 Update & Outlook
2011 Update & Outlook Expect to complete process for switching to the Main Board in Q2 2011 Inflation impacting raw materials, product cost, rental and labour cost Impact of minimum wages regulation in Hong Kong Favorable outlook in terms of sales and gross margin Controlling operating expenses and
Slide 24: To Summarize
To Summarize Very strong results in Q1 2011 Expect favorable topline sales and gross margin / other income Operating expenses are expected to increase quite unfavorably primarily due to high inflation, escalating rental and impact of minimum wages Group is ready to tackle the issues Despite challeng
Slide 25: Thank You!
onvenience Thank You!
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