Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — H1 2020 Earnings Presentation

36 slides from Convenience Retail Asia's earnings presentation, Aug 13, 2020

  1. Slide 1: Convenience Retail Asia Limited 2020 Interim Results Announcement

    Convenience Retail Asia Limited 2020 Interim Results Announcement 13 August 2020

  2. 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

  3. Slide 3: Agenda

    Agenda  Hong Kong Retail Market 1H 2020 Key Highlight  Impact of COVID-19 on our Business  2020 First Half Financial Results Highlight  2020 Outlook  Questions & Answers 3

  4. Slide 4: Hong Kong Retail Market Key Highlight

    HONG KONG RETAIL MARKET KEY HIGHLIGHT 4

  5. Slide 5: Economic Recession Deepened In Hong Kong

    Economic Recession Deepened In Hong Kong Source: Census and Statistics Department ; PwC – Consumer Markets Insights Sharing 5

  6. Slide 6: Hong Kong Retail Sales Forecast

    Hong Kong Retail Sales Forecast Hong Kong retail sales is estimated to fall 19.7% in 2020 Source: Census and Statistics Department ; Forecast by PwC 6

  7. Slide 7: 2020 Retailing In Hong Kong

    2020 Retailing In Hong Kong Supermarkets Sales Value & Volume 1H2020 Value: +10.6% 30 1H2020 Volume: +2.9% 20 Year-on-year % change 15.3 14.4 12.2 10.2 7.3 10 5.7 5.2 4.5 1.2 0.7 3.5 1.1 0.8 0.9 0 -0.2 -1.9 -2.0 -10 -4.8 -20 2017 2018 2019 202001 202002 202003 202004 202005 202006 Value Volume Sourc

  8. Slide 8: MTR Latest Passenger Number

    MTR Latest Passenger Number Domestic Service Monthly Total YTD 2020 vs. YTD 2019 : 200,000 -33% 180,000 160,000 148,219 144,919 142,502 132,315 135,990 140,000 126,288 116,523 110,061 120,000 97,001 100,000 84,048 71,405 74,543 80,000 60,000 40,000 (unit in thousands) 20,000 Jan Feb Mar Apr May June

  9. Slide 9: Impact of COVID-19 on Our Businesses

    IMPACT OF COVID-19 ON OUR BUSINESSES 9

  10. Slide 10: COVID-19 Impact To Retailers

    COVID-19 Impact To Retailers Retailing Format Convenience Stores What Gains What Loses What Gains What Loses Food Non-Food Cigarettes Packaged Beverage Essential Discretionary Wine & Beer Confectionery Residential Commercial & Tourist Ice-cream Food Services Masks / Hand Sanitizers / Online Offline

  11. Slide 11: Quick Actions Taken

    Quick Actions Taken 1. Defence Strategies & Actions  Staff Safety, Wellness & Health  Business Continuity – Operationally & Financially  Take Good Care of the Community, Staff & Customers 2. Conserve Resources & Zero Waste 3. Effective Expenditures & Tight Control of Expenses 4. Freeze New Capita

  12. Slide 12: Strategies Dealing With Coronavirus Crisis: Safety, Health & Wellness

    Strategies Dealing With Coronavirus Crisis Safety, Health & Wellness Office Store 12

  13. Slide 13: Strategies Dealing With Coronavirus Crisis: New Opportunity - Relevant Products

    Strategies Dealing With Coronavirus Crisis New Opportunity - Relevant Products Shield Plus 99% 13

  14. Slide 14: Helping The Hong Kong Community

    Helping The Hong Kong Community 100,000 個 14

  15. Slide 15: OK Stamp It – Total Members

    400,000 600,000 800,000 1,000,000 1,400,000 1,600,000 1,800,000 0 200,000 1,200,000 2016/6/30 2016/7/31 2016/8/31 2016/9/30 2016/10/31 2016/11/30 2016/12/31 2017/1/31 2017/2/28 2017/3/31 2017/4/30 2017/5/31 2017/6/30 2017/7/31 2017/8/31 2017/9/30 2017/10/31 2017/11/30 2017/12/31 2018/1/31 2018/2/28

  16. Slide 16: Saint Honore Building Up Loyal Customers Base

    Saint Honore Building Up Loyal Customers Base Cake Easy exceeded 730,000 members 16

  17. Slide 17: New Collections & Services

    New Collections & Services 17

  18. Slide 18: The Tenth Store In Hong Kong

    The Tenth Store In Hong Kong Lee Theatre Plaza, Causeway Bay (opened 8th January 2020) 18

  19. Slide 19: The Eleventh Store In Hong Kong

    The Eleventh Store In Hong Kong MiraPlace, Tsim Sha Tsui (opened 12th June 2020) 19

  20. Slide 20: 2020 First Half Financial Results Highlight

    2020 FIRST HALF FINANCIAL RESULTS HIGHLIGHT 20

  21. Slide 21: Number of Stores

    Number of Stores End of 1H2019 Opened Closed 1H2020 2019 Circle K Hong Kong 339 336 6 (2) 340 Circle K Macau (franchised) 32 33 - - 33 Circle K Zhuhai (franchised) 14 14 - (14) - Saint Honore HK & Macau 99 99 3 (4) 98 Saint Honore China 28 27 - - 27 Zoff 7 9 2 - 11 CRA Group Total 519 518 11 (20) 50

  22. Slide 22: Group Turnover

    Group Turnover +5.7% 3,500 3,000 2,859* 2,704* 58 53 2,500 480 508 HK$ Million 2,000 1,500 2,186 2,359 1,000 500 0 2019 2020 Circle K Saint Honore Developing Businesses  Less inter-group sales: HK$43M in 1H2019 & HK$38M in 1H2020 22

  23. Slide 23: Gross Profit & Other Income

    Gross Profit & Other Income 40 38 37.4 % of Turnover 36 35.1 34 32 30 2019 2020 23

  24. Slide 24: Group Store Operating Expenses

    Group Store Operating Expenses 30 -1.8% 28 26.6 % of Turnover 26 24.8 24 22 20 2019 2020 24

  25. Slide 25: Group Net Profit

    Group Net Profit -0.5% 100 82 82 80 HK$ Million 60 40 20 0 2019 2020 25

  26. Slide 26: Group Net Profit as % of Turnover

    Group Net Profit as % of Turnover 5 -0.1% 4 % of Turnover 3.0 2.9 3 2 1 0 2019 2020 26

  27. Slide 27: Basic Earnings Per Share

    Basic Earnings Per Share 14 12 10.8 10.8 10 HK Cents 8 6 4 2 0 2019 2020 27

  28. Slide 28: 2020 First Half Financial Results Highlight

    2020 First Half Financial Results Highlight 1H2019 1H2020 Change Number of Stores 519 509 -10 Group Turnover (HK$M) 2,704 2,859 5.7% Group Net Profit (HK$M) 82 82 -0.5% Net Profit as % of Turnover 3.0 2.9 -0.1% Basic Earnings Per Share (HK cents) 10.8 10.8 0% Interim Dividends (HK cents) 6 6 0% 28

  29. Slide 29: 2020 Outlook

    2020 OUTLOOK pero ee | "I La mE a aah ioe

  30. Slide 30: The COVID-19 New Normal

    The COVID-19 New Normal  People are surprised & scared by the experience  The virus will not just go away  Scenario of low cases per day could be the new normal for the coming 6 – 9 months  Precautionary measures, travel restrictions, testing, tracing, business continuity policies , social dista

  31. Slide 31: Five Emerging Changes In Customer Behaviors

    Five Emerging Changes In Customer Behaviors  Top priority is hygiene, safety & wellness  A big shift to digital engagement  Nesting @ home  Channel shifts  How they work, How they commute, How they spend, How they shop, How they interact, How they entertain, How they learn, How they teach ……………

  32. Slide 32: Source: Census and Statistics Department ; Acxiom Market Pulse

    Source: Census and Statistics Department ; Acxiom Market Pulse 32

  33. Slide 33: The Coming Months

    The Coming 12 Months Will Be The Toughest Period Ever Faced By Retailers. Hh bli! el RET | il. Wd a ale bite

  34. Slide 34: What We Are Doing ?

    What We Are Doing ?  Safest retail outlets (Hygiene, Short queue)  Reasonable price  More online interaction  Continue to expand & engage the loyal customer base  New demand , New category, New Contents  More EFS & effective  Minimize drop in customer traffic & increase basket value  Close n

  35. Slide 35: What We Must Do Next ?

    What We Must Do Next ?  Stay up-to-date & relevant in the new normal  Reinvent our different store models  Reduced customer traffic at transportation, commercial & tourist districts  Avoiding congestion & queuing  Reconfigure residential stores  Food services counters  BOPIS (Buy online & pic

  36. Slide 36: Thank You !

    THANK YOU ! 36

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