Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — FY2002 Earnings Presentation

19 slides from Convenience Retail Asia's earnings presentation, Mar 14, 2003

  1. Slide 1: 2002 Annual Results Presentation

    2002 Annual Results Prese ntation A member of the Li & Fung (Retailing) Group 14 March 2003

  2. Slide 2: 2002 Hong Kong Overall Retail Sales Year-on-Year % Change

    2002 Hong Kong Overall Retail Sales Year-on-Year % Change 10% 8% 7.2% Total : $177 Billion - 4.1% 6% 4% 2% 0% -2% -1.9% -4% -2.7% -2.8% -3.7% -3.7% -4.1% -4.4% -4.5% -6% -5.9% -8% -7.7% -10% -12% -11.8% -14% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: HKSAR, Census and Statistics Departm

  3. Slide 3: Agenda

    2002 Annual Results Presentation Agenda  2002 Financial Results Highlights  2003 Outlook & Update  Questions & Answers

  4. Slide 4: Financial Results Highlights: Group Turnover

    2002 Financial Results Highlights Group Turnover + 7% 1,600 1,393.5 1,305.1 1,140.7 1,200 972.9 HK$ Million 800 400 0 1999 2000 2001 2002 No. of Stores in HK: 114 123 146 166 No. of Stores in China: - - - 2 HK Overall Retail Sales: - 8.1% + 3.8% - 1.2% - 4.1%

  5. Slide 5: Financial Results Highlights: Group Net Profit

    2002 Financial Results Highlights Group Net Profit + 10% 80 72.1 65.5 60 48.1 HK$ Million 40 20 6.6 0 1999 2000 2001 2002

  6. Slide 6: Financial Results Highlights: Net Profit as % of Sales

    2002 Financial Results Highlights Net Profit as % of Sales + 0.2% 7% 6% 5.0% 5.2% 5% 4.2% % of Sales 4% 3% 2% 0.7% 1% 0% 1999 2000 2001 2002

  7. Slide 7: Financial Results Highlights: Basic Earnings Per Share

    2002 Financial Results Highlights Basic Earnings Per Share + 8% 14 12 10.9 9.8 10.1 10 HK Cents 8 6 4 1.3 2 0 1999 2000 2001 2002

  8. Slide 8: 2002 Financial Results Highlights

    2002 Financial Results Highlights 2002 2001 Number of Stores 166 146 + 14% Group Turnover (HK$ Million) 1,393.5 1,305.1 + 7% Group Net Profit (HK$ Million) 72.1 65.5 + 10% Net Profit as % of Turnover 5.2% 5.0% + 0.2% Basic Earnings Per Share 10.9 Cents 10.1 Cents + 8%

  9. Slide 9: Why 2002 Favourable Results?

    Why 2002 Favourable Results? Total 2002 Sales Increased Yet Comparabl e Stores Sales Dropped 15% 10% 10.6% 7% Total 2002: + 6.8% 5% % Change 5% 5% -0.1% 0% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr -5% Total 2002: - 4.3% -5% -5% -6% -10% Total Sales 121 Comparable Stores Sales

  10. Slide 10: Why 2002 Favourable Results? Improving Gross Margin/Other Income

    Why 2002 Favourable Results? Improving Gross Margin/Other Income Gross Margin/Other Income as % of Sales + 1.2% 34% 32.8% 31.6% 32% 31.0% 30.4% 30% 28% 26% 1999 2000 2001 2002

  11. Slide 11: Why 2002 Favourable Results? Tight Control of Store Operating Expenses

    Why 2002 Favourable Results? Tight Control of Store Operating Expenses Store Operating Expenses as % of Sales 30% 24.3% 25% 21.9% 22.1% 22.7% 20% 7.2% 6.4% 6.7% 6.9% 15% 7.6% 6.9% 6.9% 6.9% 10% 5% 9.5% 8.6% 8.5% 8.9% 0% 1999 2000 2001 2002 Labour Cost Rental Cost Other Expenses

  12. Slide 12: 4th Quarter Highlights

    4th Quarter 2002 Financial Results Hig hlights 2002 2001 Group Turnover (HK$ Million) 360.8 326.3 + 10.6%  Comparable Stores 286.7 287.0 - 0.1% Group Net Profit (HK$ Million) 19.6 15.9 +23% Net Profit as % of Turnover 5.4% 4.9% + 0.5%

  13. Slide 13: Achievements: Consecutive Quarters of Profitability Growth

    2002 Achievements 8 Consecutive Quarters of Profitability Growth +136% + 33% + 36% + 23% + 7% + 7% + 9% + 3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2001 2001 2001 2002 2002 2002 2002

  14. Slide 14: Achievements: Consumer Acceptance of China Model

    2002 Achievements Consumer Acceptance of China Model 4th Generation:  Fresh & Hot Bakery and Gourmet Hot Drinks  Hi-tech Retailer  STF&F (Speed, Tidiness, Friendliness & Fun)  Genuine Products Guarantee  Best Cigarette & Magazine Categories  Grocery at Supermarket Pricing

  15. Slide 15: Achievements

    2002 Achievements Forbes Global Best 200 Companies (Under A Billion) for 2002 Winner of 2002 HKRMA Service & Courtesy Award - Supervisory Level of Supermarket / Convenience Stores Category $408M Cash On Hand

  16. Slide 16: 2003 Update & Outlook

    (Convenience 5 Asia 2003 Update & Outlook

  17. Slide 17: 2003 Update & Outlook: Circle K Hong Kong

    2003 Update & Outlook Circle K Hong Kong  High Unemployment, Deflation, Budget Deficit & Tax Increases = Weaker Sentiment to Spend  Expect Retail Spending to Drop 3% - 5% in 2003  Our Strategies:  Efficiency & Cost Control  New Product Categories  Creative Promotions  Mass Customization  Qua

  18. Slide 18: 2003 Update & Outlook: Circle K China

    2003 Update & Outlook Circle K China  4 Stores Operating by End of March 2003  First Batch of 10 Stores by Mid Year  Aggressive Growth after Fine Tuning of Store Model & Supply Chain  30 Stores by End of Year with Positive Store Contribution

  19. Slide 19: 2003 Update & Outlook: To Summarize

    2003 Update & Outlook To Summarize  Solid Foundations in Hong Kong & China  First 2 Quarters – Profitability Growth A Challenge  Weak Hong Kong Market  Heaviest Start Up Cost in China  Improving Results in 2nd Half

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