Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q3 2006 Earnings Presentation

20 slides from Convenience Retail Asia's earnings presentation, Nov 6, 2006

  1. Slide 1: 3rd Quarter 2006 Results Presentation

    3 Quarter 2006 Results rd Presentation Member of the Li & Fung Group 6 November 2006

  2. Slide 2: Hong Kong Retail Sales Value

    Hong Kong Retail Sales Value Year-on-year % Change 20 Jan – Sep 2006 Total Retail : 6.8% 15 Supermarket : 4.7% 10 % 5 0 -5 01/05 03/05 05/05 07/05 09/05 11/05 01/06 03/06 05/06 07/06 09/06 Source: Census and Statistics Department, HKSAR

  3. Slide 3: Hong Kong Market 3rd Quarter 2006 Update

    Hong Kong Market 3rd Quarter 2006 Update ƒ Mainland tourists arrival leveling off ƒ Cigarette price increased from $26 to $28 per packet ƒ Newspaper “The Sun” Increased price from $4 to $5 ƒ Irrational rental increases ƒ Retail sites vacancy percentage increasing ƒ Tighter labour and inflation press

  4. Slide 4: Guangzhou Retail Sales Value

    Guangzhou Retail Sales Value Year-on-year % Change 25 Jan – Sep 2006 Total Retail : +14.5% 20 15 % 10 5 0 01/05 03/05 05/05 07/05 09/05 11/05 01/06 03/06 05/06 07/06 09/06 Source: Bureau of Statistics, Guangzhou

  5. Slide 5: Group Turnover – 3rd Quarter

    2006 Financial Results Highlights Group Turnover – 3rd Quarter 2,500 1,995.2 2,000 1,736.5 + 17.6% HK$ Million 1,500 1,000 589.8 501.4 500 0 2004 2005 3rd Qtr 2005 3rd Qtr 2006

  6. Slide 6: Group Turnover – September YTD

    2006 Financial Results Highlights Group Turnover – September YTD 2,500 + 13.2% 1,995.2 2,000 1,736.5 1,665.0 1,471.0 HK$ Million 1,500 589.8 501.4 1,000 560.8 515.4 500 454.2 514.4 0 2004 2005 Sep YTD Sep YTD 2005 2006

  7. Slide 7: Number of Circle K Stores

    3rd Quarter 2006 Financial Results Highlights Number of Circle K Stores 3rd Qtr 2005 End of 2005 3rd Qtr 2006 Hong Kong 223 230 249 Guangzhou 35 40 47 Dongguan - 5 7 Shenzhen - - 2 Sub Total 258 275 305 Macau 9 11 15 Zhuhai 4 4 6 Total 271 290 326

  8. Slide 8: Marketing and Promotions Circle K Hong Kong

    Marketing and Promotions Circle K Hong Kong Summer Surprise Smiley Promotion

  9. Slide 9: Marketing and Promotions Circle K Southern China

    Marketing and Promotions Circle K Southern China Student Loyalty Program

  10. Slide 10: Gross Margin / Other Income

    Gross Margin / Other Income Gross Margin/Other Income as % of Sales (Excluding Interest Income) 36% - 1.5% 34.6% 35% 34% % of Sales 33.0% 33.1% 33% 32.3% 32% 31% 30% 2004 2005 3rd Qtr 2005 3rd Qtr 2006

  11. Slide 11: Store Operating Expenses

    Store Operating Expenses 30% 24.5% 24.8% 24.1% 25% 23.2% 7.2% 7.1% 6.9% 20% 6.6% % of Sales 15% 7.3% 7.9% 7.9% 8.1% 10% 5% 9.3% 9.4% 9.8% 9.1% 0% 2004 2005 3rd Qtr 2005 3rd Qtr 2006 Labour Cost Rental Cost Other Expenses

  12. Slide 12: Group Net Profit – 3rd Quarter

    2006 Financial Results Highlights Group Net Profit – 3rd Quarter 100 73.6 80 66.3 + 1.2% HK$ Million 60 40 22.8 23.1 20 0 2004 2005 3rd Qtr 2005 3rd Qtr 2006

  13. Slide 13: Group Net Profit – September YTD

    2006 Financial Results Highlights Group Net Profit – September YTD 100 + 5.6% 80 73.6 66.3 HK$ Million 52.6 55.6 60 22.8 23.1 40 20 20.9 22.4 8.9 10.1 0 2004 2005 Sep YTD 2005 Sep YTD 2006

  14. Slide 14: Net Profit as % of Sales – 3rd Quarter

    2006 Financial Results Highlights Net Profit as % of Sales – 3rd Quarter 6% - 0.7% 4.6% 5% 3.8% 3.7% 3.9% 4% % of Sales 3% 2% 1% 0% 2004 2005 3rd Qtr 2005 3rd Qtr 2006

  15. Slide 15: Net Profit as % of Sales – September YTD

    2006 Financial Results Highlights Net Profit as % of Sales – September YTD 6% - 0.2% 5% 3.8% 3.7% 3.6% 4% 3.4% % of Sales 3% 2% 1% 0% 2004 2005 Sep YTD 2005 Sep YTD 2006

  16. Slide 16: Basic Earnings Per Share – 3rd Quarter

    2006 Financial Results Highlights Basic Earnings Per Share – 3rd Quarter 14 12 10.9 9.9 10 HK Cents 8 6 3.4 3.4 4 2 0 2004 2005 3rd Qtr 2005 3rd Qtr 2006

  17. Slide 17: Basic Earnings Per Share – September YTD

    2006 Financial Results Highlights Basic Earnings Per Share – September YTD 14 + 0.4 Cent 12 10.9 9.9 10 7.8 8.2 HK Cents 8 3.4 3.4 6 4 3.1 3.3 2 1.3 1.5 0 2004 2005 Sep YTD 2005 Sep YTD 2006

  18. Slide 18: 3rd Quarter 2006 Financial Results Highlights

    3rd Quarter 2006 Financial Results Highlights 3rd Qtr 2005 3rd Qtr 2006 Change Group Turnover (HK$ Million) 501.4 589.8 17.6% Group Net Profit (HK$ Million) 22.8 23.1 1.2% Net Profit as % of Sales 4.6% 3.9% (0.7%) Basic Earnings Per Share 3.4 cents 3.4 cents -

  19. Slide 19: September YTD 2006 Financial Results Highlights

    September YTD 2006 Financial Results Highlights Sep YTD Sep YTD Change 2005 2006 Group Turnover (HK$ Million) 1,471 1,665 13.2% Group Net Profit (HK$ Million) 52.6 55.6 5.6% Net Profit as % of Sales 3.6% 3.4% (0.2%) Basic Earnings Per Share 7.8 cents 8.2 cents 0.4 cent

  20. Slide 20: Total Number of Outlets by End of 2006

    Total Number of Outlets by End of 2006 2004 2005 2006 Actual Actual Forecast CK – Hong Kong 205 230 257 CRSC – Guangzhou 20 40 58 CRSC – Dongguan - 5 12 CRSC – Shenzhen - - 6 CRSC Sub-total 20 45 76 CRA Operate 225 275 333 Zhuhai J.V. - 4 6 Macau J.V. - 11 15 Total Circle K Stores 225 290 354 Donggu

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