Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — FY2009 Earnings Presentation

34 slides from Convenience Retail Asia's earnings presentation, Mar 10, 2010

  1. Slide 1: Convenience Retail Asia Limited 2009 Annual Results Announcement

    Convenience Retail Asia Limited 2009 Annual Results Announcement 10 March 2010

  2. Slide 2: Agenda

    Agenda „ 2009 Key Highlight „ 2009 Financial Results Highlight „ 2010 Update & Outlook „ Questions & Answers

  3. Slide 3: 2009 Key Highlight

    2009 Key Highlight

  4. Slide 4: Key Highlight: Hong Kong Market

    2009 Key Highlight Hong Kong Market „ Consumer confidence improved but sentiment to spend still weak

  5. Slide 5: Consumer Confidence Index

    Consumer Confidence Index 130 120 118 118 111 111 109 110 106 104 105 101 100 98 96 95 95 98 99 89 100 90 97 93 94 88 82 80 88 77 86 87 79 84 79 70 70 60 1Q2009 2Q2009 3Q2009 4Q2009 1H2006 2H2006 1H2007 2H2007 1H2008 2H2008 Hong Kong China Global Source: Nielsen Consumer Confidence Survey (Q4 2009)

  6. Slide 6: Consumer Confidence: Top Choices for Spending Spare Cash

    Consumer Confidence Top Choices for Spending Spare Cash Putting into savings 71 Investing in shares of stock / mutual funds 48 Out of home entertainment 41 Holidays / vacations 42 Hong Kong & China Ranked New clothes 34 1 & 2 Globally New technology products 24 Paying off debts / credit cards / loan

  7. Slide 7: Hong Kong Retail Market

    Hong Kong Retail Market Total Retail Sales Value Composite Consumer Price Index 20 5 2009FY: HK$274.7B 4.3 16.0 16 12.8 4 11.9 3.1 12 10.6 9.8 3 Year-on-year % change Year-on-year % change 8 7.4 2.0 2.2 2 4 2.6 1.2 1.3 0.8 0.6 1 0.6 0.5 0.5 0.5 0 -0.1 0 -4 0.0 -4.3 -4.7 -5.3 -6.2 -1 -0.9 -8 -7.7 -1.

  8. Slide 8: Consumer Confidence: Total Retail Sales

    Consumer Confidence Total Retail Sales - Sep to Nov 2009 vs. Jun to Aug 2009 12% YTD Nov Sep to Nov % Change 2009 2009 vs. PP Total Visitors -1% 8% Value % Change China Visitors 6% 6% 5% 1% 1% -1% -3% Total Retail Supermarkets Clothing / Consumer Departmental Jewellery / Sales Footwear Durables Stor

  9. Slide 9: Key Highlight: Hong Kong Market

    2009 Key Highlight Hong Kong Market „ Consumer confidence improved but sentiment to spend still weak „ Very high rental in primary and secondary locations but rental came down in some local areas „ Plastic bag levy still unfavorably affecting affected chains „ Cigarette tax increase still reduces vo

  10. Slide 10: Circle K Hong Kong Promotions

    Circle K Hong Kong Promotions

  11. Slide 11: Saint Honore Hong Kong Promotions

    Saint Honore Hong Kong Promotions

  12. Slide 12: 2009 Achievements

    2009 Achievements Circle K Hong Kong Yahoo! Emotive Brand Awards 2008-2009 - Retail Chain Circle K Hong Kong Winner of HKIHRM/SCMP People Management Awards 2009 Circle K Hong Kong Winner of HKRMA Service & Courtesy Award - Supermarkets / Convenience Stores Category Supervisory Level 2009 Saint Honor

  13. Slide 13: Key Highlight: Southern China Market

    2009 Key Highlight Southern China Market „ Consumer sentiment to spend continued strong trend in 4th quarter „ Store traffic and sales were adversely affected by loss of cigarette sales „ Food costs started to show signs of inflation „ Franchise stores all showing better sales and store contribution

  14. Slide 14: Guangzhou Retail Market

    Guangzhou Retail Market Total Retail Sales Value City Consumer Price Index 28 8 2009FY: RMB364.8B 24.0 5.9 23 6 21.0 21.2 18.9 19.9 Year-on-year % change 17.2 18.5 Year-on-year % change 4 3.4 18 16.8 17.0 17.3 16.2 2.2 15.3 2 12.5 1.0 13 9.8 0 8 -0.6 -2 -2.5 -2.5 2.3 -3.0 -2.8 3 -3.3 -4 -3.5 -4.3 -3

  15. Slide 15: Circle K Guangzhou Promotions

    Circle K Guangzhou Promotions

  16. Slide 16: 2009 Financial Results Highlight

    2009 Financial Results Highlight

  17. Slide 17: Number of Stores

    2009 Financial Results Highlight Number of Stores End of Transfer End of Opened Closed 2008 from/(to) 2009 Circle K Hong Kong 284 24 - (9) 299 Circle K Southern China 82 3 - (23) 62 - Guangzhou (owned) 71 3 1 (18) 57 - Guangzhou (franchised) 5 - (1) - 4 - Shenzhen 6 - - (5) 1 Circle K Macau (J.V.) 1

  18. Slide 18: Group Turnover – 4th Quarter

    2009 Financial Results Highlight Group Turnover – 4th Quarter 4,000 3,322.7 0.7% 2,917.6 3,000 HK$ Million 2,000 829.9* 835.8* 1,000 168.1 169.3 674.2 682.3 0 2007 2008 2008Q4 2009Q4 Circle K St. Honore * Less inter-group sales: $12.4M in 2008Q4 and $15.8M in 2009Q4

  19. Slide 19: Group Turnover – Full Year

    2009 Financial Results Highlight Group Turnover – Full Year 5,000 0.8% 4,000 3,322.7* 3,349.3* 2,917.6 HK$ Million 3,000 702.7 701.6 2,000 2,667.5 2,702.4 1,000 0 2007 2008 2009 Circle K St. Honore * Less inter-group sales: $47.5M in 2008 and $54.7M in 2009

  20. Slide 20: Gross Margin & Other Income

    2009 Financial Results Highlight Gross Margin & Other Income 40% 0.3% 38% 37.1% 36.8% 36.6% % of Turnover 36% 34% 32% 30% 2007 2008 2009 # Excluding interest income

  21. Slide 21: Store Operating Expenses

    2009 Financial Results Highlight Store Operating Expenses 40% 30% 26.7% 26.9% 26.9% % of Turnover 20% 10% 0% 2007 2008 2009

  22. Slide 22: Group Net Profit – 4th Quarter

    2009 Financial Results Highlight Group Net Profit – 4th Quarter 100 86.9 88.9 21.3% 80 HK$ Million 60 40 26.2 21.6 20 0 2007 2008 2008Q4 2009Q4

  23. Slide 23: Group Net Profit – Full Year

    2009 Financial Results Highlight Group Net Profit – Full Year 1.8% 120 86.9 88.9 90.4 90 HK$ Million 60 30 0 2007 2008 2009

  24. Slide 24: Net Profit By Market

    2009 Financial Results Highlight Net Profit By Market 4th Quarter Full Year (HK$ Million) 2008 2009 2008 2009 Hong Kong & Macau 32.4 44.1 131.9 134.1 Markets China Market (10.8) (17.9) (43.0) (43.7) Total CRA Group 21.6 26.2 88.9 90.4

  25. Slide 25: Net Profit as % of Turnover – 4th Qtr

    2009 Financial Results Highlight Net Profit as % of Turnover – 4th Qtr 0.5% 4% 3.0% 3.1% 3% 2.7% 2.6% % of Turnover 2% 1% 0% 2007 2008 2008Q4 2009Q4

  26. Slide 26: Net Profit as % of Turnover – Full Year

    2009 Financial Results Highlight Net Profit as % of Turnover – Full Year 4% 3.0% 3% 2.7% 2.7% % of Turnover 2% 1% 0% 2007 2008 2009

  27. Slide 27: Basic Earnings Per Share – 4th Qtr

    2009 Financial Results Highlight Basic Earnings Per Share – 4th Qtr 20 21.3% 15 12.08 12.18 HK Cents 10 5 2.96 3.59 0 2007 2008 2008Q4 2009Q4

  28. Slide 28: Basic Earnings Per Share – Full Year

    2009 Financial Results Highlight Basic Earnings Per Share – Full Year 20 1.7% 15 12.39 12.08 12.18 HK Cents 10 5 0 2007 2008 2009

  29. Slide 29: 4th Quarter

    2009 Financial Results Highlight 4th Quarter 2008Q4 2009Q4 Change Number of Stores 500 493 (7) Group Turnover (HK$M) 829.9 835.8 + 0.7% Group Net Profit (HK$M) 21.6 26.2 + 21.3% Net Profit as % of Turnover 2.6% 3.1% + 0.5% Basic Earnings Per Share 2.96 cents 3.59 cents + 21.3%

  30. Slide 30: Full Year

    2009 Financial Results Highlight Full Year 2008 2009 Change Number of Stores 500 493 (7) Group Turnover (HK$M) 3,322.7 3,349.3 + 0.8% Group Net Profit (HK$M) 88.9 90.4 + 1.8% Net Profit as % of Turnover 2.7% 2.7% - Basic Earnings Per Share 12.18 cents 12.39 cents + 1.7% Total Dividend Per Share 7.2

  31. Slide 31: 2010 Update and Outlook

    2010 Update and Outlook

  32. Slide 32: 2010 Update & Outlook

    2010 Update & Outlook „ Retail revenue growth primarily driven by Chinese tourists „ Local consumer sentiment to spend continues to improve but at very slow pace „ Market extremely competitive and frequent discounting „ Inflation pressure as rental, labour and raw material costs all showing signs of

  33. Slide 33: To Summarize

    To Summarize „ Better-than-expected 2009 results in a very tough year „ High cost of operating as well as competitive market in 2010 „ CVS market in Hong Kong and Southern China continues to be tough in 1st half before improving in 2nd half „ Saint Honore business expects to continue to improve as r

  34. Slide 34: Thank You!

    Retail : Uf) Thank You!

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