Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — H1 2012 Earnings Presentation

25 slides from Convenience Retail Asia's earnings presentation, Aug 6, 2012

  1. Slide 1: Convenience Retail Asia Limited 2012 Interim Results Announcement

    Convenience Retail Asia Limited 2012 Interim Results Announcement 6 August 2012

  2. Slide 2: Agenda

    Agenda „ Hong Kong & China Retail Markets Key Highlight „ 1H 2012 Financial Results Highlight „ 2012 Update & Outlook „ Questions & Answers 2

  3. Slide 3: Hong Kong & China Retail Markets Key Highlight

    Hong Kong & China Retail Markets Key Highlight 3

  4. Slide 4: Overall Retail Spending Definitely Softening

    Overall Retail Spending Definitely Softening Hongg Kongg Total Retail Sales Value China Total Retail Sales Value 30 25 June YTD: +13.1% June YTD: +14.4% 24.9 25 20 18.4 Change 17.1 Change 20 18.3 15.5 17 1 17.1 14.7 15.2 14.1 14 1 Yearr‐on‐year % C 15 13 8 13.7 13.8 Year‐‐on‐year % C 13 7 14.9 15.6

  5. Slide 5: Overall Inflation Dropping Down

    Overall Inflation Dropping Down Hong Kong CPI China CPI 8 7 June YTD: +4.7% June YTD: +3.3% 7 6 5.4 6.1 6 5 Change 4.5 Change 5.3 5 4.7 4.9 4.7 4 3.6 3.4 Yearr‐on‐year % C 34 Year‐‐on‐year % C 4.3 3.3 3.2 3 4 3.7 3 2.2 3 2 24 2.4 2 1 1 0.5 0 0 ‐1 ‐0.7 01201 01202 01203 01204 01205 01206 2009FY 2010F

  6. Slide 6: Yet Rental and Labour Cost Still Escalating

    Yet Rental and Labour Cost Still Escalating 1H 2012 Actual Hong Kong Rental Increase 23% ‐ 26% H Hong Kong K L b Labour C t Increase Cost I 10% Guangzhou Rental Increase 23% ‐ 168% Guangzhou Labour Cost Increase 18%

  7. Slide 7: Hong Kong Market New Products & Promotions

    Hong Kong Market New Products & Promotions 7

  8. Slide 8: Hong Kong Market New Products & Promotions

    Hong Kong Market New Products & Promotions 8

  9. Slide 9: Southern China Market New Products & Promotions

    Southern China Market New Products & Promotions 9

  10. Slide 10: Other Highlight

    Other Highlight „ Saint Honore Guangzhou Flagship Store Grand Opening Ceremony on 29 June 2012, Fortune Plaza 10

  11. Slide 11: Other Highlight

    Other Highlight Smiling Services Enterprises Award by HK Mystery Shoppers Association 2011‐2012 2011 2012 Service Category Leader of CVS Category by HKRMA „ Nov 2011 – Jan 2012 „ March 2012 – May 2012 Caring Company Logo by HKCSS „ Circle K since 2003 „ Saint Honore 2009‐2012 Manpower Developer 1st

  12. Slide 12: 1H 2012 Financial Results Highlight

    1H 2012 Financial Results Highlight 12

  13. Slide 13: Number of Stores

    Number of Stores End of End of Opened Closed 2011 1H2012 Circle K Hong Kong 324 15 (8) 331 Circle K Southern China 66 7 (3) 70 „ Guangzhou (owned) 59 5 (3) 61 „ Guangzhou (franchised) 6 2 ‐ 8 „ Shenzhen 1 ‐ ‐ 1 Ci l K Macau Circle M (franchised) (f hi d) 22 2 (2) 22 Circle K Zhuhai (franchised) 13 ‐

  14. Slide 14: Group Turnover

    Group Turnover 5,000 3,972.6 + 7.2% 4 000 4,000 3,575.2 HK$ Million 3,000 1,886.7* 2,021.9* 2,000 429.9 403.4 1,000 1,516.7 1,625.0 0 2010FY 2011FY 1H2011 1H2012 Circle K Saint Honore * Less inter‐group sales: HK$33.4M in 1H 2011 & HK$33M in 1H 2012 14

  15. Slide 15: Gross Profit & Other Income

    Gross Profit & Other Income 40 ‐ 1.2% 38 36.9 37.0 36.5 over 1.1 35.8 36 % of Turno 34 35.9 32 30 2010FY 2011FY 1H2011 1H2012 Cigarette one‐off gain 15

  16. Slide 16: Group Store Operating Expenses

    Group Store Operating Expenses 28 +0.1% 25.9 25.7 25.7 25.8 26 % of Turnover 24 22 20 2010FY 2011FY 1H2011 1H2012 16

  17. Slide 17: Group Net Profit

    Group Net Profit 200 166.3 + 32.9% 160 136.4 120 on 103 6 103.6 HK$ Millio 78.0 38.5 80 17 9 17.9 40 60.1 65.1 0 2010FY 2011FY 1H2011 1H2012 One‐off cigarette gain Property disposal gain 17

  18. Slide 18: Net Profit Breakdown by Market

    Net Profit Breakdown by Market (HK$ Million) 1H2011 1H2012 Change Hong Kong & Macau Markets 88.6 113.2 +27.8% China Market (10.6) (9.6) +9.5% CRA Group G T t l Total 78 0 78.0 103 6 103.6 +32 9% +32.9% 18

  19. Slide 19: Net Profit as % of Turnover

    Net Profit as % of Turnover 7 + 1.0% 6 5.1 5 over 4.2 4.1 4 3.8 % of Turno 3 2 1 0 2010FY 2011FY 1H2011 1H2012 19

  20. Slide 20: Basic Earnings Per Share

    Basic Earnings Per Share 30 + 32.2% 25 22 69 22.69 20 18.67 HK Centts 15 14.09 10.66 10 5 0 2010FY 2011FY 1H2011 1H2012 20

  21. Slide 21: 1st Half 2012 Financial Results Highlight

    1st Half 2012 Financial Results Highlight 1H2011 1H2012 Change Number of Stores 539 557 +18 stores Group Turnover (HK$M) 1,886.7 2,021.9 +7.2% Group Net Profit (HK$M) 78.0 103.6 +32.9% Net Profit fi as % off Turnover 4.1 5.1 +1.0% 0% Basic Earnings Per Share (HK cents) 10.66 14.09 +32.2% Dividends „

  22. Slide 22: 2012 Update & Outlook

    2012 Update & Outlook 22

  23. Slide 23: 2012 Update & Outlook

    2012 Update & Outlook „ European sovereign debt crisis to drag on while U.S. economy continues the slow growth „ Hong Kong overall retail sales down to single‐digit growth „ China retail sales increase also slowing down „ Rental cost peaking but lease renewal still in unreasonable range „ New produc

  24. Slide 24: 1H 2012 Results - To Conclude

    1H 2012 Results ‐ To Conclude „ Tough 1st Half 2012 „ Even tougher g 2nd Half 2012 „ Just controlling expenses not enough „ Prudent in opening new stores in Hong Kong market „ Aggressively re‐inventing re inventing our business model, “Always Something New” customer experience and improving competit

  25. Slide 25: Thank You!

    Th k Y Thank You!! 29

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