Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — H1 2010 Earnings Presentation

28 slides from Convenience Retail Asia's earnings presentation, Aug 2, 2010

  1. Slide 1: Convenience Retail Asia Limited 2010 Half Year Results Announcement

    Convenience Retail Asia Limited 2010 Half Year Results Announcement 2 August 2010

  2. Slide 2: Agenda

    Agenda ƒ Overall Hong Kong & Guangzhou Retail Markets ƒ 2010Q2 Key Highlight ƒ 2010Q2 Financial Results Highlight ƒ 2010 Update & Outlook

  3. Slide 3: Hong Kong & Guangzhou Retail Markets

    Hong Kong & Guangzhou Retail Markets

  4. Slide 4: Hong Kong Retail Market

    Hong Kong Retail Market HK Retail Sales Value HK Consumer Price Index May YTD: 18.3% June YTD: 2.2% 45 6 40 35.8 5 Year-on-year % change Year-on-year % change 35 4.3 30 4 25 2.8 19.7 3 2.8 19.0 2.4 2.5 20 15.5 2.0 2.0 15 12.8 2 10.6 10 6.5 1.0 1 5 0.5 0.6 0 0 2007FY 2008FY 2009FY 201001 201002 20100

  5. Slide 5: Hong Kong Retail Market

    Hong Kong Retail Market Retail Value Retail Volume May YTD 2010 May YTD 2010 (vs. May YTD 2009 % Change) All retail outlets 18.3% 15.2% Motor vehicles and parts 57.4% 55.4% Jewellery, watches & clocks, and 38.8% 26.3% valuable gifts Alcoholic drinks & tobacco 27.1% 17.5% Other consumer durable goods

  6. Slide 6: Guangzhou Retail Market

    Guangzhou Retail Market GZ Retail Sales Value GZ City Consumer Price Index June YTD: 20.6% June YTD: 2.8% 35 8 5.9 30 6 Year-on-year % change Year-on-year % change 24.4 4.4 25 22.4 21.8 3.9 3.8 3.6 21.0 19.5 4 3.4 20 18.9 18.8 2.2 16.214.9 2 15 0 10 -0.9 -2 5 -2.5 0 -4 2007FY 2008FY 2009FY 201001 20

  7. Slide 7: Q2 Key Highlight

    2010Q2 Key Highlight

  8. Slide 8: Q2 Key Highlight: Hong Kong Market

    2010Q2 Key Highlight Hong Kong Market ƒ Strong overall retail sales growth primarily driven by increase in PRC visitors as well as purchase of consumer durables ƒ Overall market for daily necessities and food remained quite stagnant ƒ Inflation rate showing up-trend − Rental and wages still going up

  9. Slide 9: New Products, Creative Promotions, Higher Productivity

    New Products, Creative Promotions, Higher Productivity

  10. Slide 10: Q2 Key Highlight: Southern China Market

    2010Q2 Key Highlight Southern China Market ƒ Effective 1 January, Hot & In food services products are subject to VAT instead of business taxes ƒ Effective 1 May, minimum wages increased from RMB860 to RMB1,100 in Guangzhou ƒ Closed total 7 stores in 1H 2010 ƒ June YTD comparable store sales +4.3% ex

  11. Slide 11: Q2 Financial Results Highlight

    2010Q2 Financial Results Highlight

  12. Slide 12: Number of Stores

    2010 Financial Results Highlight Number of Stores End of Transfer End of Opened Closed 2009 from/(to) 2010Q2 Circle K Hong Kong 299 13 (4) - 308 Circle K Southern China 62 4 (7) - 59 - Guangzhou (owned) 57 4 (6) (1) 54 - Guangzhou (franchised) 4 - (1) 1 4 - Shenzhen 1 - - - 1 Circle K Macau (J.V.) 1

  13. Slide 13: Group Turnover – 2nd Quarter

    2010 Financial Results Highlight Group Turnover – 2nd Quarter 4,000 3,322.7 3,349.3 2.9% 3,000 HK$ Million 2,000 815.3* 838.6* 1,000 160.4 170.3 669.5 682.3 0 2008FY 2009FY 2009Q2 2010Q2 Circle K Saint Honore * Less inter-group sales: HK$14.6M in Q2 2009 and HK$14.0M in Q2 2010

  14. Slide 14: Group Turnover – June YTD

    2010 Financial Results Highlight Group Turnover – June YTD 4,000 3,322.7 3,349.3 2.3% 3,000 HK$ Million 2,000 1,616.8* 1,653.4* 326.0 340.5 1,000 1,317.4 1,341.5 0 2008FY 2009FY June YTD June YTD 2009 2010 Circle K Saint Honore * Less inter-group sales: HK$26.6M in 1H 2009 and HK$28.6M in 1H 2010

  15. Slide 15: Gross Margin / Other Income

    2010 Financial Results Highlight Gross Margin / Other Income 40% 0.4% 38% 37.1% 36.8% 37.1% 36.7% % of Turnover 36% 34% 32% 30% 2008FY 2009FY 2009Q2 2010Q2 * Excluding interest income

  16. Slide 16: Store Operating Expenses

    2010 Financial Results Highlight Store Operating Expenses 40% 0.2% 30% 26.9% 26.9% 26.5% 26.7% % of Turnover 20% 10% 0% 2008FY 2009FY 2009Q2 2010Q2

  17. Slide 17: Group Net Profit – 2nd Quarter

    2010 Financial Results Highlight Group Net Profit – 2nd Quarter 120 100 88.9 90.4 9.1% HK$ Million 80 60 40 23.9 21.9 20 0 2008FY 2009FY 2009Q2 2010Q2

  18. Slide 18: Group Net Profit – June YTD

    2010 Financial Results Highlight Group Net Profit – June YTD 120 61.3% 100 88.9 90.4 HK$ Million 80 57.7 60 Gain on disposal 35.8 18.0 of property in Q1 40 20 39.7 0 2008FY 2009FY June YTD June YTD 2009 2010

  19. Slide 19: Net Profit By Market

    2010 Financial Results Highlight Net Profit By Market 2nd Quarter June YTD (HK$ Million) 2009 2010 2009 2010 Hong Kong & Macau 30.5 30.2 53.6 70.9 Markets China Market (8.6) (6.3) (17.8) (13.2) CRA Group Total 21.9 23.9 35.8 57.7

  20. Slide 20: Net Profit as % of Turnover – 2nd Qtr

    2010 Financial Results Highlight Net Profit as % of Turnover – 2nd Qtr 4% 0.1% 2.7% 2.7% 2.7% 2.8% 3% % of Turnover 2% 1% 0% 2008FY 2009FY 2009Q2 2010Q2

  21. Slide 21: Net Profit as % of Turnover – June YTD

    2010 Financial Results Highlight Net Profit as % of Turnover – June YTD 1.3% 4% 3.5% 3% 2.7% 2.7% % of Turnover 2.2% 2% 1% 0% 2008FY 2009FY June YTD June YTD 2009 2010

  22. Slide 22: Basic Earning Per Share – 2nd Qtr

    2010 Financial Results Highlight Basic Earning Per Share – 2nd Qtr 16 14 12.18 12.39 9.0% 12 10 HK Cents 8 6 3.00 3.27 4 2 0 2008FY 2009FY 2009Q2 2010Q2

  23. Slide 23: Basic Earnings Per Share – June YTD

    2010 Financial Results Highlight Basic Earnings Per Share – June YTD 16 61.2% 14 12.18 12.39 12 10 HK Cents 7.90 8 6 4.90 4 2 0 2008FY 2009FY June YTD June YTD 2009 2010

  24. Slide 24: 2nd Quarter

    2010 Financial Results Highlight 2nd Quarter 2009Q2 2010Q2 Change Number of Stores 498 501 +3 stores Group Turnover (HK$M) 815.3 838.6 +2.9% Group Net Profit (HK$M) 21.9 23.9 +9.1% Net Profit as % of Turnover 2.7% 2.8% +0.1% Basic Earnings Per Share 3.00 cents 3.27 cents +9.0%

  25. Slide 25: June YTD

    2010 Financial Results Highlight June YTD June YTD June YTD Change 2009 2010 Number of Stores 498 501 +3 stores Group Turnover (HK$M) 1,616.8 1,653.4 +2.3% Group Net Profit (HK$M) 35.8 57.7 +61.3% Net Profit as % of Turnover 2.2% 3.5% +1.3% Basic Earnings Per Share 4.9 cents 7.9 cents +61.2% Interim

  26. Slide 26: Update and Outlook

    2010 Update and Outlook

  27. Slide 27: Update & Outlook

    2010 Update & Outlook ƒ Circle K Hong Kong survived a tough 1st half of 2010 and 2nd half of 2010 should be easier ƒ CRSC bottomed out and starting to show up trend again but about 25% of stores will be affected by the pre-Asian Game city beautification ƒ Rental of cigarette counters for 38 stores i

  28. Slide 28: Thank You!

    Convenience Asi Thank You!

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