Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q2 2005 Earnings Presentation

21 slides from Convenience Retail Asia's earnings presentation, Aug 3, 2005

  1. Slide 1: 2nd Quarter 2005 Results Presentation

    2 Quarter 2005 Results nd Presentation A member of the Li & Fung (Retailing) Group 3 August 2005

  2. Slide 2: Hong Kong Retail Sales Value

    Hong Kong Retail Sales Value Year-on-year % Change 25 Jan – May 2005 Total Retail : +8.2% Supermarket : +6.3% 20 15 % 10 5 0 01/04 02/04 03/04 04/04 05/04 06/04 07/04 08/04 09/04 10/04 11/04 12/04 01/05 02/05 03/05 04/05 05/05 Source: Census and Statistics Department, HKSAR

  3. Slide 3: Guangzhou Retail Sales Value

    Guangzhou Retail Sales Value Year-on-year % Change Jan – May 2005 25 Total Retail : +13.7% 20 15 % 10 5 0 01/04 02/04 03/04 04/04 05/04 06/04 07/04 08/04 09/04 10/04 11/04 12/04 01/05 02/05 03/05 04/05 05/05 Source: Bureau of Statistics, Guangzhou

  4. Slide 4: Agenda

    2nd Quarter 2005 Results Presentation Agenda ƒ 2nd Quarter 2005 Financial Results Highlights ƒ 2005 Outlook & Update ƒ Questions & Answers

  5. Slide 5: Group Turnover – 2nd Quarter

    2005 Financial Results Highlights Group Turnover – 2nd Quarter 2,000 1,736.5 * 1,515.8* 1,500 + 20% HK$ Million 1,000 515.4 428.4 * 500 0 2003 2004 2nd Qtr 2004 2nd Qtr 2005 No. of store – HK 186 205 192 218 No. of store - China 7 20 12 29 * Restated

  6. Slide 6: Marketing & Promotions

    Convenience \Retail)fici_ Marketing & Promotions HOKHAR

  7. Slide 7: Group Turnover – June YTD

    2005 Financial Results Highlights Group Turnover – June YTD 2,000 1,736.5* 1,515.8 * + 17% 1,500 HK$ Million 969.6 1,000 826.7 * 454.2 398.3 500 428.4 515.4 0 2003 2004 June YTD June YTD 2004 2005 No. of store – HK 186 205 192 218 No. of store - China 7 20 12 29 * Restated

  8. Slide 8: Lower in Gross Margin / Other Income

    Lower in Gross Margin / Other Income Gross Margin/Other Income as % of Sales (Excluding Interest) 35% - 0.7% 34% 33.0%* % of Sales 32.3%* 33% 32.2%* 32.3% 32% 31% 30% 2003 2004 2nd Qtr 2004 2nd Qtr 2005 * Restated

  9. Slide 9: Higher Store Operating Expenses

    Higher Store Operating Expenses 30% 22.7%* 23.2%* 23.2%* 23.5% 25% 20% 6.5% 6.6% 6.8% 7.2% % of Sales 15% 7.0% 7.3% 7.3% 7.4% 10% 5% 9.2% 9.3% 9.1% 8.9% 0% 2003 2004 2nd Qtr 2004 2nd Qtr 2005 Labour Cost Rental Cost Other Expenses * Restated

  10. Slide 10: Group Net Profit – 2nd Quarter

    2005 Financial Results Highlights Group Net Profit – 2nd Quarter 80 66.3 * 70 60.5 * 60 + 15% HK$ Million 50 40 30 * 20.9 18.2 20 10 0 2003 2004 2nd Qtr 2004 2nd Qtr 2005 * Restated

  11. Slide 11: Group Net Profit – June YTD

    2005 Financial Results Highlights Group Net Profit – June YTD 80 66.3* 70 60.5 * 60 + 12% HK$ Million 50 40 29.8 26.7 * 30 8.9 8.5 20 10 18.2 20.9 0 2003 2004 June YTD June YTD 2004 2005 * Restated

  12. Slide 12: Net Profit as % of Sales – 2nd Quarter

    2005 Financial Results Highlights Net Profit as % of Sales – 2nd Quarter 6% - 0.2% 5% 4.0% * 4.2% * 3.8%* 4.0% 4% % of Sales 3% 2% 1% 0% 2003 2004 2nd Qtr 2004 2nd Qtr 2005 * Restated

  13. Slide 13: Net Profit as % of Sales – June YTD

    2005 Financial Results Highlights Net Profit as % of Sales – June YTD 6% - 0.1% 5% 4.0%* 3.8% * 4% 3.2% * % of Sales 3.1% 3% 2% 1% 0% 2003 2004 June YTD June YTD 2004 2005 * Restated

  14. Slide 14: Basic Earnings Per Share – 2nd Quarter

    2005 Financial Results Highlights Basic Earnings Per Share – 2nd Quarter 12 9.9 * 10 9.1 * 8 + 0.4 Cent HK Cents 6 4 2.7 * 3.1 2 0 2003 2004 2nd Qtr 2004 2nd Qtr 2005 * Restated

  15. Slide 15: Basic Earnings Per Share – June YTD

    2005 Financial Results Highlights Basic Earnings Per Share – June YTD 12 9.9 * 10 9.1 * + 0.4 Cent 8 HK Cents 6 4.4 4.0 * 4 1.3 1.3 2 2.7 3.1 0 2003 2004 June YTD June YTD 2004 2005 * Restated

  16. Slide 16: 2nd Quarter 2005 Financial Results Highlights

    2nd Quarter 2005 Financial Results Highlights 2nd Qtr 2004 2nd Qtr 2005 Change Group Turnover (HK$ Million) 428.4* 515.4 +20% Group Net Profit (HK$ Million) 18.2* 20.9 +15% Net Profit as % of Sales 4.2%* 4.0% -0.2% Basic Earnings Per Share 2.7 Cents* 3.1 Cents +0.4 Cent Interim Dividend 1.25 Cents 1

  17. Slide 17: June YTD 2005 Financial Results Highlights

    June YTD 2005 Financial Results Highlights 2nd Qtr 2004 2nd Qtr 2005 Change Group Turnover (HK$ Million) 826.7* 969.6 +17% Group Net Profit (HK$ Million) 26.7* 29.8 +12% Net Profit as % of Sales 3.2%* 3.1% -0.1% Basic Earnings Per Share 4.0 Cents* 4.4 Cents +0.4 Cent Interim Dividend 1.25 Cents 1.5

  18. Slide 18: 2005 Update & Outlook

    2005 Update & Outlook

  19. Slide 19: Update & Outlook: Circle K Hong Kong

    2005 Update & Outlook Circle K Hong Kong ƒ Steady improvement in consumer sentiment and spending ƒ Irrational increase in rental: ¾ Prudent new store growth ¾ Upgrade existing stores to 3G concept ƒ Head-to-head competition ƒ Quality strategy and promotion to drive comparable store sales growth

  20. Slide 20: Circle K Southern China Market Structure

    2005 Update & Outlook Circle K Southern China Market Structure 29 Guangzhou Hub DC Market Zhongshan & Dongguan Q4 Central Q3 Satellite Commissary 1 Market Zhuhai Shenzhen Q2 Q4 J.V. Market 218 5 Macau DC Hong Kong

  21. Slide 21: Update & Outlook: To Summarize

    2005 Update & Outlook To Summarize ƒ Improving but more competitive Hong Kong market ƒ All markets in the Pearl River Delta set up and operating by end of 2005 ƒ Exceeding 300 Circle K stores, $2 billion sales

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