Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — FY2011 Earnings Presentation

30 slides from Convenience Retail Asia's earnings presentation, Mar 7, 2012

  1. Slide 1: Convenience Retail Asia Ltd 2011 Annual Results Announcement

    Convenience i Retailil Asia i Ltd d 2011 Annual Results Announcement 7 March 2012

  2. Slide 2: Agenda

    Agenda „ Overall Hong Kong & China Retail Markets „ 2011 Financial Results Highlight „ 2012 Update & Outlook „ Questions & Answers 2

  3. Slide 3: Hong Kong & China Retail Markets

    Hong Kong & China Retail Markets 3

  4. Slide 4: Hong Kong Retail Market

    Hong Kong Retail Market Total Retail Sales Value Composite Consumer Price Index 40 10 2011FY: +24.8% 2011FY: +5.3% 9 35 7.9 8 30 28.1 28.8 29.1 29.0 27.8 27.8 26.2 7 Yeear-on-year % chhange Year-on-year % chhange 25 24.0 23 0 23.4 23.4 23.0 6 56 5.6 5 7 5.8 5.8 5.7 5.7 5 7 5.7 57 5.2 20 5 4.4 4.6 4

  5. Slide 5: Hong Kong Market - 2011 Key Highlight

    Hong Kong Market ‐ 2011 Key Highlight „ Very V strong iincrease iin retailil sales l d driven i b improved by i d local l l consumer sentiment, inflation and increase in visitors spending p g „ Gradual slowdown in the growth starting in 4th quarter „ A year of inflation with increase in food and raw

  6. Slide 6: China Retail Market

    China Retail Market Total Retail Sales Value Consumer Price Index 25 8 2011FY: +17.1% 2011FY: +5.4% 7 19.9 6.4 6.5 65 6.2 6.1 20 18.1 6 17.4 17.1 16.9 17.7 17.2 17.0 17.7 17.2 17.3 5.4 5.3 5.5 5.5 Yeear-on-year % chhange Year-on-year % chhange 4.9 4.9 5 15 4.2 4.1 11.6 4 10 3 2 5 1 0 0 01/2011 02/20

  7. Slide 7: Southern China Market – 2011 Key Highlight

    Southern China Market – 2011 Key Highlight „ Started the year with very strong growth but slowdown in consumer spending after October 2011 Golden Holiday „ Food price stabilized and inflation dropped from a peak of 6.5% in July to 4.1% in December „ Prices of raw materials, food and grocery have not

  8. Slide 8: 2011 Financial Results Highlight

    2011 Financial Results Highlight 8

  9. Slide 9: Number of Stores

    2011 Financial Results Highlight Number of Stores EEnd d off EEnd d off Opened Closed 2010 2011 Circle K Hong Kong 318 21 (15) 324 Circle K Southern China 63 10 (7) 66 „ Guangzhou (owned) 56 10 (7) 59 „ Guangzhou (franchised) 6 0 0 6 „ Shenzhen 1 0 0 1 Circle K Macau (franchised) 21 2 (1) 22 Circle

  10. Slide 10: Group Turnover

    2011 Financial Results Highlight Group Turnover 2nd Half Full Year 5,000 5,000 + 11.1% + 8.5% 3 972 6* 3,972.6* 4,000 4,000 3,575.2 3,575.2* 3,349.3 3,349.3 885.0 HK$ Million HK$ Million 756.2 3,000 3,000 1,921.8* 2,085.9* 2,000 481.5 2,000 415.7 3,155.5 2 881 9 2,881.9 1,000 1,000 1,540.5 1,638.9 0

  11. Slide 11: Hong Kong Market New Products & Promotions

    Hong Kong Market New Products & Promotions 11

  12. Slide 12: Hong Kong Market New Products & Promotions

    Hong Kong Market New Products & Promotions 12

  13. Slide 13: Hong Kong Market - New Store Design

    Hong Kong Market ‐ New Store Design 13

  14. Slide 14: Southern China Market New Products & Promotions

    Southern China Market New Products & Promotions 14

  15. Slide 15: Gross Profit & Other Income

    2011 Financial Results Highlight Gross Profit & Other Income 2nd Half Full Year 38 38 + 0.3% + 0.4% % of Turnover % of Turnover 37 36.9 36.9 37 36.9 36.9 36.6 36.5 36.5 36 36 35 35 2009FY 2010FY 2H2010 2H2011 2009FY 2010FY 2011FY 15

  16. Slide 16: Group Store Operating Expenses

    2011 Financial Results Highlight Group Store Operating Expenses 2nd Half Full Year 30 30 + 0.4% ‐ 0.2% 28 28 26.9 26.9 over over 25 9 25.9 25 7 25.7 25 9 25.9 25 7 25.7 % of Turno % of Turno 26 25.3 26 24 24 22 22 20 20 2009FY 2010FY 2H2010 2H2011 2009FY 2010FY 2011FY 16

  17. Slide 17: Group Net Profit

    2011 Financial Results Highlight Group Net Profit 2nd Half Full Year 200 200 + 22.0% + 12.2% 166.3 160 160 136.4 136.4 on on 16.5 16 5 16.5 HK$ Millio 120 HK$ Millio 120 90.4 88.3 90.4 78.7 80 80 119.9 119.9 40 40 0 0 2009FY 2010FY 2H2010 2H2011 2009FY 2010FY 2011FY Gain on Property Disposal 17

  18. Slide 18: Net Profit Breakdown

    2011 Financial Results Highlight Net Profit Breakdown Breakdown by Market (HK$ Million) 2nd Half Full Year 2010 2011 2010 2011 Hong Kong & Macau Markets 88.0 95.7 158.9 184.3 China Market (9.3) (7.4) (22.5) (18.0) CRA Group Total 78.7 88.3 136.4 166.3 Breakdown by Business (HK$ Million) 2nd Half Ful

  19. Slide 19: Net Profit as % of Turnover

    2011 Financial Results Highlight Net Profit as % of Turnover 2nd Half Full Year 6 6 + 0.1% + 0.4% 5 5 4.1 4.2 4.2 % of Turnover over 4 3.8 4 3.8 % of Turno 3 2.7 3 2.7 2 2 1 1 0 0 2009FY 2010FY 2H2010 2H2011 2009FY 2010FY 2011FY 19

  20. Slide 20: Basic Earnings Per Share

    2011 Financial Results Highlight Basic Earnings Per Share 2nd Half Full Year 30 30 + 11.8% + 21.5% 25 25 22.69 20 18.67 20 18.67 HK Centss HK Centss 15 15 12.39 12.03 12.39 10.76 10 10 5 5 0 0 2009FY 2010FY 2H2010 2H2011 2009FY 2010FY 2011FY 20

  21. Slide 21: 2011 Financial Results Highlight – 2nd Half

    2011 Financial Results Highlight – 2nd Half 2H2010 2H2011 Change Number of Stores 526 543 +17 stores Group Turnover (HK$M) 1,921.8 2,085.9 +8.5% Group Net Profit (HK$M) 78.7 88.3 +12.2% Net Profit as % of Turnover 4.1% 4.2% +0.1% Basic Earnings Per Share (HK cents) 10 76 10.76 12 03 12.03 +11 8% +11

  22. Slide 22: 2011 Financial Results Highlight – Full Year

    2011 Financial Results Highlight – Full Year 2010FY 2011FY Change Number of Stores 526 543 +17 stores Group Turnover (HK$M) 3,575.2 3,972.6 +11.1% Group Net Profit (HK$M) 136.4 166.3 +22.0% Net Profit as % of Turnover 3.8% 4.2% +0.4% Basic Earnings Per Share (HK cents) 18 67 18.67 22 69 22.69 +21 5%

  23. Slide 23: Financial Results Highlight

    Financial Results Highlight Group Turnover Group Net Profit 4,500 180 166.3 Saint Honore 3,973 4,000 160 Circle K 3,575 3,500 3,323 3,349 140 136.4 3,000 2,917 120 (HK$ Milliion) (HK$ Milliion) 2 500 2,500 2 231 2,231 100 88 9 90.4 90 4 1,995 86.9 88.9 2,000 1,737 80 73.6 75.1 1,516 66.3 1,297 1,384

  24. Slide 24: Other Highlights

    Other Highlights The 2nd Hong Kong Outstanding Corporate Citizenship Award ‐ Service Industry Category ‐ jointly by Hong Kong Productivity Council & Committee on the Promotion of Civic Education Transfer of listing to the Main Board ‐ 20 June 2011 Caring Company Logo Family‐Friendly Employers Manpow

  25. Slide 25: Other Highlights

    Other Highlights Best Marketing Best Licensed Fashion & Home Premium Promotion by Disney ‐ 2011 by HKTDC ‐ 2011 „ 2011 Service Retailer – CVS Category „ 2011 S Service i & Courtesy Award – Supervisory Level (Supermarkets / CVS Category) 25

  26. Slide 26: Other Highlights

    Other Highlights 型•買•行 選最紅 人氣十大型品潮選 By East Touch Magazine TVB周刊最強人氣品牌大獎 Top Chic Products Poll 2011 TVB Weekly Superbrand By The MTR Corporation 2011 2011 26

  27. Slide 27: 2012 Update & Outlook

    2012 Update & Outlook 27

  28. Slide 28: 2012 Update & Outlook

    2012 Update & Outlook „ Expecting a tough 1st half 2012: ¾ China and Hong Kong consumers’ sentiment to spend not as strong as 2011 ¾ European sovereign debt and soft U.S. economy ¾ Milder inflation ¾ Cost off business b especially ll labour l b cost and d rentall stillll very high „ Strong S new pro

  29. Slide 29: Winning Strategies for 2012

    Winning Strategies for 2012 nvent Businesss & Y Yes Irrelevant Great Models Innovation Future SStore M Business Declining No Won’tt Won Rein Results Survive No Yes Continuous Improvement In Effectiveness & Management of Operating Expenses 29

  30. Slide 30: Thank You!

    Th k Y Thank You!! 30

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