Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — FY2022 Earnings Presentation
38 slides from Convenience Retail Asia's earnings presentation, Mar 23, 2023
Slide 1: Convenience Retail Asia Limited 2022 Annual Results Announcement
Convenience Retail Asia Limited 2022 Annual Results Announcement 23 March 2023
Slide 2: Presentation Disclaimer
Presentation Disclaimer This Document (the “Document”) is for information purposes only. This Document is not intended to form the basis of any investment decision nor does it constitute a recommendation or advice as to how the reader should act on any matter. The information in this Document is an
Slide 3: Agenda
Agenda 2022 Hong Kong Retail Market Key Highlight 2022 Operations & Financial Results Highlight 2023 Outlook Q&A 3
Slide 4: Hong Kong Retail Market Key Highlight
HONG KONG RETAIL MARKET KEY HIGHLIGHT 4
Slide 5: Hong Kong Retail Sales
Hong Kong Retail Sales YOY % Total Retail Sales Value & Volume change 2022 Dec YTD 60 Value: -0.8% Volume: -3.4% 40 8.7 8.1 20 11.7 7.6 6.5 4.0 8.0 0.3 4.0 1.2 7.0 4.1 5.1 1.5 1.1 2.5 0 -0.2 -1.4 -1.6 -4.8 -1.3 -4.2 -5.3 -0.6 -20 -11.1 -12.3 -13.8 -3.0 -4.1 -14.6 -17.6 -16.8 -24.3 -40 -25.5 -60 2018
Slide 6: Weak Retail Performance
Weak Retail Performance Ming Pao Daily News, 8/3/2023 HK Economic Journal, 10/2/2023 AM730, 16/1/2023 Sing Tao Daily News, HK01, 1/12/2022 Sing Tao Daily News, 23/11/2022 28/11/2022 6
Slide 7: MTR Latest Passenger Number
MTR Latest Passenger Number 2022 Dec YTD 2021 Dec YTD 180,000 2022 vs. 2021: -6% 2021 vs. 2020 : +24% 2022 vs. 2020: +17% 2021 vs. 2019: -9% 160,000 2022 vs. 2019: -15% 2021 vs. 2018: -15% 2022 vs. 2018: -20% 140,000 120,000 100,000 80,000 (unit in thousands) 60,000 Jan Feb Mar Apr May June July Aug
Slide 8: Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases
Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases Included COVID-19 cases reported from PCR & RAT tests Source: HK Centre for Health Protection Website 8
Slide 9: 2022 – The Most Disruptive Year Ever
2022 – The Most Disruptive Year Ever 1. The 5th Wave in H1 2022 and the two rebounds in new cases in H2 2022 2. Supply Chain disruptions 3. Cross border restrictions resulting in significant increase in logistics costs 4. Shortage of frontline labour affecting store operations 5. Inflation and incre
Slide 10: Saint Honore Opened 17 New Stores in Hong Kong
Saint Honore Opened 17 New Stores in Hong Kong Shing On Street, Fanling Town Ctr. Pak Tin Commercial King Lam Shopping Ctr Queen’s Hills, Lei Tung Estate, Sai Wan Ho 30 Jan 2022 Ctr, Shek Kip Mei Tseung Kwan O Fanling Ap Lei Chau 6 Jan 2022 22 Mar 2022 14 Apr 2022 14 Apr 2022 18 Apr 2022 Kornhill Pl
Slide 11: Saint Honore Opened 2 New Stores in Macau
Saint Honore Opened 2 New Stores in Macau Store in Rua de Nam Keng, Taipa 澳門氹仔雄昌 Opened on 14 Feb 2022 Store in Avenida da Praia Grande 澳門南灣分店 Opened on 11 Apr 2022 11
Slide 12: Grand Opening of Saint Honore Flagship Store at Fortune Plaza, Guangzhou
Grand Opening of Saint Honore Flagship Store at Fortune Plaza, Guangzhou 28 December 2022 12
Slide 13: Saint Honore Flagship Store at Fortune Plaza, Guangzhou
Saint Honore Flagship Store at Fortune Plaza, Guangzhou 13
Slide 14: O2O Business Model
O2O Business Model Customer Buying Process Store Network Awareness Consideration Decision Transaction Traffic into stores Repeat 14
Slide 15: Cake Easy
Cake Easy Cake Easy exceeded 1,200,000 members O2O Lucky Draw e-Coupons e-Gifting e-Stamps 15
Slide 16: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience 16
Slide 17: Patisserie Mon cher Increased to 7 Stores
Patisserie Mon cher Increased to 7 Stores 1717
Slide 18: 14th Store in New Town Plaza, Shatin
14th Store in New Town Plaza, Shatin Opened on 11 November 2022 18
Slide 19: New Collections & Great Services
New Collections & Great Services 19
Slide 20: Giving Back To Our Community
Giving Back To Our Community Saint Honore donated 5,900 boxes To Love & Care the Elderly mooncake to NGOs (e.g. Food Links, We sponsored the Cookie Campaign Feeding HK, Love Neighbor Association….) Donated Rapid Antigen Testing Kits to Collaborating with local charities to donate Hong Kong’s Underpr
Slide 21: 2022 Financial Results Highlight
2022 FINANCIAL RESULTS HIGHLIGHT 21
Slide 22: Number of Stores
Number of Stores End of End of Opened Closed 2021 2022 Bakery Group 140 23 (3) 160 Saint Honore – Hong Kong 100 17 (2) 115 Saint Honore – Macau 10 2 - 12 Saint Honore – Guangzhou 26 1 (1) 26 Patisserie Mon cher 4 3 - 7 Zoff 13 1 - 14 CRA Group 153 24 (3) 174 22
Slide 23: Group Turnover
Group Turnover 2nd Half Full Year +4.5% 1,000 2,000 +7.4% 755 789 73 1,463 72 1,500 1,362 139 HK$ Million HK$ Million 131 500 1,000 683 716 1,324 1,231 500 0 0 2021 2022 2021 2022 Bakery Group Zoff Bakery Group Zoff 23
Slide 24: Group Gross Profit %
Group Gross Profit % 2nd Half Full Year 80 80 60 52.3 60 50.5 50.1 50.6 % of Turnover % of Turnover 40 40 20 20 0 0 2021 2022 2021 2022 24
Slide 25: Group Store Operating Expenses
Group Store Operating Expenses 2nd Half Full Year 50 50 +0.3% -0.4% 40 40 31.2 32.5 32.4 32.0 % of Turnover % of Turnover 30 30 20 20 10 10 0 0 2021 2022 2021 2022 25
Slide 26: Group Net Profit
Group Net Profit 2nd Half Full Year (HK$ Million) Change Change 2021 2022 2021 2022 Continuing Operations 57 51 -11.1% 74 68 -8.9% Discontinued Operation - - - 6 - -100% Total Group Net Profit 57 51 -11.1% 80 68 -15.7% 26
Slide 27: 2022 Financial Results Highlight
2022 Financial Results Highlight 2021 2022 Change Number of Stores 153 174 21 Group Turnover (HK$M) 1,362 1,463 7.4% Group Net Profit (HK$M) Continuing Operations 74 68 -8.9% Included Discontinued Operation 80 68 -15.7% Net Profit as % of Turnover Continuing Operations 5.5% 4.6% -0.9% Basic Ea
Slide 28: 2019 vs. 2022 Stores, Turnover and Net Profit
2019 vs. 2022 No. of Stores Turnover Net Profit 135 Stores HK$1,197M HK$33M Year 2019 +29% +22% +106% 3-Year Total Per Annum +9% +7% +27% CAGR% 174 Stores HK$1,463M HK$68M Year 2022 28
Slide 29: 2023 Outlook
2023 OUTLOOK pe eee el ._ ia i 29
Slide 30: 2023 & Beyond
2023 & Beyond 1. 2023 the year of COVID-19 becoming an endemic 2. Other disruptions will continue but hopefully not as severe as 2022 3. A probability that the USA or Europe may experience financial / economic challenges 4. Fast-changing, disruptive, less forgiving and more demanding world 30
Slide 31: The Future of Growth in a More Disruptive World
The Future of Growth in a More Disruptive World 1. Growth 1. Growth 4. Quick Actions & 1. Growth Recovery 2. Disruptions 2. Disruptions 4. Quick Actions & 3. Bottom Recovery 3. Bottom Be Prepared and Be Resilient People Competencies Teamwork Customer Relationship Brands 31
Slide 32: 2023-2025 7 Guiding Strategies to build a Better, More Resilient & Agile CRA
2023-2025 7 Guiding Strategies to build a Better, More Resilient & Agile CRA 1. 3 Quality Growth Strategies 2. Winning the hearts and mind of customers via superior customer experience (CX) 3. Engage our people through great employee experience (EX) 4. Continue to strength the core 5. Right investme
Slide 33: 2023-2025 7 Guiding Strategies to build a Better, More Resilient & Agile CRA
2023-2025 7 Guiding Strategies to build a Better, More Resilient & Agile CRA 1. 3 Quality Growth Strategies Strengthen and expand the Core (core business, core territory, core competencies, core customers, core differentiation, core people) Tap into Adjacencies (adjacent businesses, adjacent sup
Slide 34: Saint Honore Hong Kong – 2023 Key Strategies
Saint Honore Hong Kong – 2023 Key Strategies Vision: We bake for the happiness & sharing moments of our customers 1 Sales and Operations Excellence 2 Marketing / Category Management Excellence TFP Middle Income - Home Makers 3 Digital CRM to the Next Level Both Working and non Working 4 Manufacturin
Slide 35: Saint Honore Guangzhou – 2023 Key Strategies
Saint Honore Guangzhou – 2023 Key Strategies Vision: We bake for the happiness & sharing moments of our customers 1 Operations in Next Level TFP 2 Marketing & Category Excellence Middle Income - Home Makers Both Working and non Working 3 Corporate & Festive Development 4 Franchising Competitiveness
Slide 36: Patisserie Mon cher – 2023 Key Strategies
Patisserie Mon cher – 2023 Key Strategies Vision: We Are Happiness Maker 1 Marketing Communications and Category Management 2 Digital Platform Development 3 Sales and Operations Excellence 4 Store Development 36
Slide 37: Zoff – 2023 Key Strategies
Zoff – 2023 Key Strategies Vision: “1st in Mind” and “Leading” Fast Fashion Eyewear Chain 1 Top of Mind Awareness 2 Fast Fashion with Professional Services 3 Engagement with Zoff 4 Operations Excellence 5 Marketing Excellence 37
Slide 38: Thank You!
THANK YOU ! 38
Convenience Retail Asia — FY2022 Earnings Presentation on 6ix