Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — FY2015 Earnings Presentation

34 slides from Convenience Retail Asia's earnings presentation, Mar 15, 2016

  1. Slide 1: Convenience Retail Asia Limited 2015 Annual Results Announcement

    Convenience Retail Asia Limited 2015 Annual Results Announcement 15 March 2016

  2. Slide 2: Agenda

    Agenda  Hong Kong & China Retail Markets Key Highlight  2015 Financial Results Highlight  2016 Update & Outlook  Question & Answer 2

  3. Slide 3: Hong Kong & China Retail Markets Key Highlight

    HONG KONG & CHINA RETAIL MARKETS KEY HIGHLIGHT 3

  4. Slide 4: Consumer Confidence Index

    Consumer Confidence Index  Hong Kong consumer confidence dropped in Q3 & Q4 120 110 110 111 111 111 111 108 108 110 107 106 107 106 107 110 105 106 108 107 111 107 107 100 104 106 105 106 105 99 99 103 103 92 91 98 99 97 96 97 97 90 94 94 94 96 96 91 93 94 89 80 85 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

  5. Slide 5: Hong Kong Retail Market: 2015 Composite CPI

    Hong Kong Retail Market 2015 Composite CPI 6 2015FY: +3.0% 5 4.6 4.5 4.1 Year-on-year% change 4 3.0 3.1 3 2.8 2.5 2.4 2.4 2.4 2.5 2.0 2 1 0 Mar May Oct Jan Feb Sep Dec Jun Nov Jul Apr Aug Source: Census and Statistics Department HKSAR 5

  6. Slide 6: Hong Kong Retail Market

    Hong Kong Retail Market South China Morning Post 12/3/2016 Sing Tao 25/2/2016 Sing Tao (28/10/2015) Sing Tao (15/10/2015) 6

  7. Slide 7: China Retail Market: 2015 Consumer Price Index

    China Retail Market 2015 Consumer Price Index 3 2015FY: +1.4% 2.0 2 Year-on-year % change 1.6 1.6 1.6 1.5 1.5 1.4 1.4 1.4 1.3 1.2 1 0.8 0 Mar May Oct Jan Feb Sep Dec Jun Nov Jul Apr Aug Source: National Bureau of Statistics of China 7

  8. Slide 8: New Products and Re-inventing

    New Products and Re-inventing 8

  9. Slide 9: New Products and Re-inventing

    New Products and Re-inventing 9

  10. Slide 10: Other Highlights

    Other Highlights — , » |W Circle K | Pease Aglefpiwtad Ya Shak SLRS OK AE . camegsompany Cores Coun of Social Service 20 ee il “YaHog! emotive brand awards _ oe he haa I AB. “Tomo Beano AWARDS == = 2015

  11. Slide 11: 2015 Financial Results Highlight

    2015 FINANCIAL RESULTS HIGHLIGHT 11

  12. Slide 12: Number of Stores

    Number of Stores End of End of Opened Closed 2014 2015 Circle K Hong Kong 329 12 (13) 328 Circle K Guangzhou (franchised) 89 4 (17) 76 Circle K Macau (franchised) 26 3 (2) 27 Circle K Zhuhai (franchised) 12 7 (1) 18 Saint Honore HK & Macau 102 6 (10) 98 Saint Honore Southern China 46 10 (15) 41 CRA

  13. Slide 13: Group Turnover

    Group Turnover 2nd Half Full Year 4,000 7,000 + 3.3% + 4.3% 6,000 3,000 4,531.3* 4,728.2* 2,388.8* 2,466.5* 5,000 HK$ Million HK$ Million 4,000 1,049.1 1,080.9 576.9 582.6 2,000 3,000 1,000 2,000 3,712.4 1,839.9 1,918.3 3,536.5 1,000 0 0 2014 2015 2014 2015 Circle K Saint Honore Circle K Saint Honor

  14. Slide 14: Gross Profit & Other Income

    Gross Profit & Other Income 2nd Half Full Year 40 40 38 38 36.9 36.5 36.7 % of Turnover % of Turnover 36.1 36 36 34 34 32 32 30 30 2014 2015 2014 2015 14

  15. Slide 15: Group Store Operating Expenses

    Group Store Operating Expenses 2nd Half Full Year 30 30 - 0.5% - 0.2% 28 28 26.0 26.1 25.9 % of Turnover % of Turnover 26 25.5 26 24 24 22 22 20 20 2014 2015 2014 2015 15

  16. Slide 16: Group Net Profit

    Group Net Profit 2nd Half Full Year 200 200 159.2 160 128.4 160 121.0 25.0 4.3 2.8 120 42.6 120 72.3 HK$ Million 1.2 HK$ Million 4.7 80 80 155.3 153.0 40 89.9 96.3 40 0 -9.1 0 -13.1 -11.7 -14.6 -21.6 -40 -40 -24.0 2014 2015 2014 2015 Core Operating Profit Core Operating Profit FingerShopping Loss Fi

  17. Slide 17: Net Profit by Market

    Net Profit by Market 2nd Half Full Year (HK$ Million) 2014 2015 2014 2015 Hong Kong & Macau Markets 99.5 99.5 173.1 165.6 China Market (5.0) (2.0) (13.5) (9.8) FingerShopping (9.1) (11.7) (14.6) (21.6) Discontinued Operations (13.1) 42.6 (24.0) 25.0 CRA Group Net Profit 72.3 128.4 121.0 159.2 17

  18. Slide 18: Group Net Profit as % of Turnover

    Group Net Profit as % of Turnover 2nd Half Full Year 8 + 2.2% 5 + 0.7% 4 6 3.4 5.2 % of Turnover % of Turnover 3 2.7 4 3.0 2 2 1 0 0 2014 2015 2014 2015  Core Operating Profit: +0.1%  Core Operating Profit: -0.2%  Net Profit from Continuing Operations: -0.1%  Net Profit from Continuing Operation

  19. Slide 19: Basic Earnings Per Share

    Basic Earnings Per Share 2nd Half Full Year 20 25 17.02 21.12 20 15 16.18 HK Cents HK Cents 15 9.73 10 10 5 5 0 0 2014 2015 2014 2015 19

  20. Slide 20: 2015 Financial Results Highlight – 2nd Half

    2015 Financial Results Highlight – 2nd Half 2H2014 2H2015 Change Number of Stores 604 588 -16 stores Group Turnover (HK$M) 2,388.8 2,466.5 +3.3% Group Net Profit (HK$M) 72.3 128.4 +77.5%  Core Operating Profit (after tax) 89.8 96.3 +7.2%  Profit from Continuing Operations 85.4 85.8 +0.5% Net Profi

  21. Slide 21: 2015 Financial Results Highlight – Full Year

    2015 Financial Results Highlight – Full Year 2014FY 2015FY Change Number of Stores 604 588 -16 stores Group Turnover (HK$M) 4,531.3 4,728.2 +4.3% Group Net Profit (HK$M) 121.0 159.2 +31.5%  Core Operating Profit (after tax) 155.3 153.0 -1.5%  Profit from Continuing Operations 145.0 134.2 -7.5% Net

  22. Slide 22: CRA Dividend History

    CRA Dividend History 0.6 0.5 0.4 HK Cents 0.3 0.2 0.1 0.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Basic Dividend Special Dividend 22

  23. Slide 23: 2016 Update & Outlook

    2016 UPDATE & OUTLOOK 23

  24. Slide 24: Retail Sales & Mainland Visitor Arrivals

    Retail Sales & Mainland Visitor Arrivals (% CHG vs YA) 20 18 16 14 11 12 8 8 7 4 1 2 0 -7 -2 -1 -5 -7 -7 -7 -12 -10 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Retail Sales Mainland Visitor Arrivals Source: Census and Statistics Department HKSAR 24

  25. Slide 25: 2016 Expected to be Tougher Than 2015

    2016 Expected to be Tougher Than 2015 Wen Wei Po (14/2/2016) Apple Daily News (4/3/2016) Apple Daily News South China (18/2/2016) Morning Post (18/2/2016) Sing Tao (18/2/2016) 25

  26. Slide 26: The "Internet +" Generation

    The “Internet +” Generation  How people experience, communicate, influence, are influenced, decide, entertain, work, shop, live, has totally changed  More supply choices than demand  Low brand loyalty  Good 4P’s is not good enough  Fun/Joy, new, fresh, informal, cool, premiumization, value, dis

  27. Slide 27: What Is Reinvention?

    What Is Reinvention? Customer Experience Re-invention Continuous improvement Trial-and-error Invention Turnaround Time 27

  28. Slide 28: Circle K 2016 Plan

    Circle K 2016 Plan Theme: Reinvent for “Internet +” Customer Experience 敢創敢試 “Internet+” STF Customer 16 - 55 STF2 speed Competitiveness ASN 28

  29. Slide 29: Circle K Reinvention

    Circle K Reinvention 29

  30. Slide 30: Circle K Reinvention

    Circle K Reinvente n () xanax 30

  31. Slide 31: Saint Honore 2016 Plan

    Saint Honore 2016 Plan Theme: Reinvent the Core TFP Middle Income - Home Makers Speed Both Working and non Working Competitiveness 31

  32. Slide 32: Saint Honore Reinvention

    Saint Honore Reinvention — BELGIUM — AKDES + RHRRAE . RM 5m ARHS Ee] 32 22 9a BH BN se SCA RRL Shp EMSOOR WTI ARE S_L MAT ABER eave AARC i) 32)

  33. Slide 33: To Conclude

    To Conclude  Satisfactory 2015 results despite very challenging market conditions  2016 market expected to be tougher  Bold to reinvent, bold to act, to uplift customer experience  Focus on the “Internet+” customer  Quality growth in store network and topline sales  One acquisition and one new

  34. Slide 34: Thank You!

    THANK YOU! 34

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