Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q3 2010 Earnings Presentation

29 slides from Convenience Retail Asia's earnings presentation, Nov 4, 2010

  1. Slide 1: Convenience Retail Asia Limited 3rd Quarter 2010 Results Announcement

    Convenience Retail Asia Limited 3rd Quarter 2010 Results Announcement 4 November 2010

  2. Slide 2: Agenda

    Agenda ƒ Overall Hong Kong & Guangzhou Retail Markets ƒ 2010Q3 Key Highlight ƒ 2010Q3 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 Sep YTD: 17.9% Sep YTD: 2.3% 45 6 40 35.8 5 35 Year-on-year % change 4.3 Year-on-year % change 30 4 25 3.0 19.7 2.8 2.8 19.0 19.2 3 2.6 20 17.1 17.2 2.4 2.5 15.5 15.3 2.0 2.0 15 12.8 2 10.6 1.3 10 6.5 1.0 1 5 0.5 0.6 0 0 2007FY 20

  5. Slide 5: Hong Kong Retail Market

    Hong Kong Retail Market Retail Value Retail Volume Sep YTD 2010 Sep YTD 2010 (vs. Sep YTD 2009 % Change) All retail outlets 17.9% 15.0% Motor vehicles and parts 49.6% 47.0% Jewellery, watches & clocks, and 36.9% 25.6% valuable gifts Other consumer durable goods 29.6% 35.9% Alcoholic drinks & tobacco

  6. Slide 6: Guangzhou Retail Market

    Guangzhou Retail Market GZ Retail Sales Value GZ City Consumer Price Index 35 Sep YTD: 21.3% 8 Sep YTD: 2.9% 30 27.9 5.9 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 4 3.4 3.2 3.4 19.5 2.7 20 18.9 18.8 2.2 17.0 16.2 15.4 2 14.9 15 0 10 -0.9 -2 5 -2.5 0 -4 2007

  7. Slide 7: Q3 Key Highlight

    2010Q3 Key Highlight

  8. Slide 8: Q3 Key Highlight: Hong Kong Market

    2010Q3 Key Highlight Hong Kong Market ƒ Strong overall retail sales growth as a result of increase in PRC visitors and purchase of consumer durables ƒ YTD supermarket spending and volume increased by 4% and 2% ƒ Rental and wages still going up ƒ Successful Circle K Toy Story 3 Promotion ƒ Successful

  9. Slide 9: New Products and Creative Promotions – Circle K

    New Products and Creative Promotions – Circle K

  10. Slide 10: New Products and Creative Promotions – Saint Honore

    New Products and Creative Promotions – Saint Honore

  11. Slide 11: Q3 Key Highlight: Southern China Market

    2010Q3 Key Highlight Southern China Market ƒ Overall retail sales continued to show strong increase ƒ CPI edging up to 3% - 4% range ƒ Comparable store sales continued to improve ƒ Both Circle K and Saint Honore stores continued recording improved results

  12. Slide 12: Q3 Financial Results Highlight

    2010Q3 Financial Results Highlight

  13. Slide 13: Number of Stores

    2010 Financial Results Highlight Number of Stores End of Transfer End of Opened Closed 2009 from/(to) 2010Q3 Circle K Hong Kong 299 19 (5) - 313 Circle K Southern China 62 8 (8) - 62 - Guangzhou (owned) 57 8 (7) (2) 56 - Guangzhou (franchised) 4 - (1) 2 5 - Shenzhen 1 - - - 1 Circle K Macau (J.V.) 1

  14. Slide 14: Group Turnover – 3rd Quarter

    2010 Financial Results Highlight Group Turnover – 3rd Quarter 4,000 3,322.7 3,349.3 10.6% 3,000 HK$ Million 2,000 896.8* 991.9* 1,000 206.3 232.9 702.7 773.9 0 2008FY 2009FY 2009Q3 2010Q3 Circle K Saint Honore * Less inter-group sales: HK$12.2M in Q3 2009 and HK$14.9M in Q3 2010

  15. Slide 15: Group Turnover – Sep YTD

    2010 Financial Results Highlight Group Turnover – Sep YTD 4,000 5.2% 3,322.7 3,349.3 3,000 2,513.5* 2,645.3* HK$ Million 532.3 573.3 2,000 2,020.1 2,115.4 1,000 0 2008FY 2009FY Sep YTD Sep YTD 2009 2010 Circle K Saint Honore * Less inter-group sales: HK$38.9M in Jan-Sep 2009 and HK$43.4M in Jan-Sep

  16. Slide 16: Gross Margin / Other Income

    2010 Financial Results Highlight Gross Margin / Other Income 40% 0.2% 38% 37.1% 37.2% 37.0% 36.8% % of Turnover 36% 34% 32% 30% 2008FY 2009FY 2009Q3 2010Q3 * Excluding interest income

  17. Slide 17: Store Operating Expenses

    2010 Financial Results Highlight Store Operating Expenses 40% 1.3% 30% 26.9% 26.9% 26.5% 25.2% % of Turnover 20% 10% 0% 2008FY 2009FY 2009Q3 2010Q3

  18. Slide 18: Group Net Profit – 3rd Quarter

    2010 Financial Results Highlight Group Net Profit – 3rd Quarter 120 100 88.9 90.4 61% HK$ Million 80 60 45.8 40 28.5 20 0 2008FY 2009FY 2009Q3 2010Q3

  19. Slide 19: Group Net Profit – Sep YTD

    2010 Financial Results Highlight Group Net Profit – Sep YTD 150 61.1% 120 103.5 88.9 90.4 Gain on disposal HK$ Million 90 16.5 of property 64.2 60 87.0 30 0 2008FY 2009FY Sep YTD Sep YTD 2009 2010

  20. Slide 20: Net Profit By Market

    2010 Financial Results Highlight Net Profit By Market 3rd Quarter Sep YTD (HK$ Million) 2009 2010 2009 2010 Hong Kong & Macau 36.4 50.6 89.9 121.5 Markets China Market (7.9) (4.8) (25.7) (18.0) CRA Group Total 28.5 45.8 64.2 103.5

  21. Slide 21: Net Profit as % of Turnover – 3rd Qtr

    2010 Financial Results Highlight Net Profit as % of Turnover – 3rd Qtr 6% 1.4% 5% 4.6% % of Turnover 4% 3.2% 2.7% 2.7% 3% 2% 1% 0% 2008FY 2009FY 2009Q3 2010Q3

  22. Slide 22: Net Profit as % of Turnover – Sep YTD

    2010 Financial Results Highlight Net Profit as % of Turnover – Sep YTD 1.3% 5% 3.9% 4% % of Turnover 2.7% 2.7% 2.6% 3% 2% 1% 0% 2008FY 2009FY Sep YTD Sep YTD 2009 2010

  23. Slide 23: Basic Earning Per Share – 3rd Qtr

    2010 Financial Results Highlight Basic Earning Per Share – 3rd Qtr 15 12.18 12.39 61% 12 HK Cents 9 6.28 6 3.90 3 0 2008FY 2009FY 2009Q3 2010Q3

  24. Slide 24: Basic Earnings Per Share – Sep YTD

    2010 Financial Results Highlight Basic Earnings Per Share – Sep YTD 20 61.1% 16 14.18 12.18 12.39 HK Cents 12 8.80 8 4 0 2008FY 2009FY Sep YTD 2009 Sep YTD 2010

  25. Slide 25: 3rd Quarter

    2010 Financial Results Highlight 3rd Quarter 2009Q3 2010Q3 Change Number of Stores 496 511 +15 stores Group Turnover (HK$M) 896.8 991.9 +10.6% Group Net Profit (HK$M) 28.5 45.8 +61.0% Net Profit as % of Turnover 3.2% 4.6% +1.4% Basic Earnings Per Share 3.90 cents 6.28 cents +61.0%

  26. Slide 26: September YTD

    2010 Financial Results Highlight September YTD Sep YTD Sep YTD Change 2009 2010 Number of Stores 496 511 +15 stores Group Turnover (HK$M) 2,513.5 2,645.3 +5.2% Group Net Profit (HK$M) 64.2 103.5 +61.1% Net Profit as % of Turnover 2.6% 3.9% +1.3% Basic Earnings Per Share 8.8 cents 14.18 cents +61.1%

  27. Slide 27: Update and Outlook

    2010 Update and Outlook

  28. Slide 28: Update & Outlook

    2010 Update & Outlook ƒ Sales growth for Hong Kong stores should continue to show healthy increase ƒ CRSC continues its pace of improvement although the Asian Games adversely affects sales ƒ RMB appreciation, raw material cost, rental and labour cost are increasing ƒ Continue strategy of close manag

  29. Slide 29: Thank You!

    Thank You!

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