Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2019 Earnings Presentation
27 slides from Convenience Retail Asia's earnings presentation, Aug 15, 2019
Slide 1: Convenience Retail Asia Limited 2019 Interim Results Announcement
Convenience Retail Asia Limited 2019 Interim Results Announcement 15 August 2019
Slide 2: Agenda
Agenda Hong Kong Retail Market Key Highlight 2019 First Half Financial Results Highlight 2019 Outlook Questions & Answers 2
Slide 3: Hong Kong Retail Market Key Highlight
HONG KONG RETAIL MARKET KEY HIGHLIGHT 3
Slide 4: 2019 Retailing in Hong Kong
2019 Retailing In Hong Kong Total Retail Sales Value & Volume Supermarkets Sales Value & Volume 1H2019 Value: -2.6% 1H2019 Value: +1.3% 35 1H2019 Volume: -3.1% 1H2019 Volume: -2.8% 25 30 Year-on-year % change 20 Year-on-year % change 25 15 20 8.6 10 5.5 15 4.6 3.7 8.7 7.6 5 1.0 1.3 0.8 1.2 0.1 1.1 1
Slide 5: Hong Kong Retail Market
Hong Kong Retail Market HK Economic Journal 2/8/2019 Ta Kung Pao 20/7/2019 HK Economic Times 17/7/2019 HK Economic Times 16/7/2019 HK Economic Journal 16/7/2019 Apple Daily News 8/5/2019 Oriental Daily News 1/6/2019 South China Morning Post 1/6/2019 5
Slide 6: The 3 "Plus" Strategies
The 3 “Plus” Strategies ASN Fun & “Internet+” Novelty Customer 1. Focus on “Internet Plus” customers 2. Deliver “4P’s Plus” relevant customer experience 3. Transition to “B&M Plus” (O2O) business models © Copyright 2018 Circle K Convenience Stores (HK) Ltd. All rights reserved. Patented. 6
Slide 7: "Plus" Strategies Driving Growth
3 “Plus” Strategies Driving Growth 7
Slide 8: OK Stamp It – Customer Engagement Tools Within App
OK Stamp It – Customer Engagement Tools Within App 2. For Fun 3. Social 4. e-Gift 5. Customer 6. O2O 1. For Value Sharing Coupon Experience Lucky Draw © Copyright 2018 Circle K Convenience Stores (HK) Ltd. All rights reserved. Patented. 8
Slide 9: OK Stamp It – Total Members
0 1,000,000 1,200,000 1,400,000 1,600,000 200,000 400,000 600,000 800,000 2016/6/21 2016/7/19 2016/8/16 2016/9/13 2016/10/11 2016/11/8 2016/12/6 2017/1/3 2017/1/31 2017/2/28 2017/3/28 2017/4/25 2017/5/23 2017/6/20 2017/7/18 2017/8/15 2017/9/12 2017/10/10 2017/11/7 2017/12/5 2018/1/2 2018/1/30 2018/2
Slide 10: Circle K Sales Sustaining Quality Growth
Circle K Sales Sustaining Quality Growth 2017: Circle K sales grew 7% vs. other CVS 2% 2018: Circle K sales grew 4% vs. other CVS 3% 2019 April YTD: Circle K sales grew 7% vs. other CVS 2-3% Source: Nielsen Business Review 10
Slide 11: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience Cake Easy eCRM exceeded 560,000 members in 1H 2019 11
Slide 12: Fast Fashion Eyewear Chain from Japan
Fast Fashion Eyewear Chain from Japan • Japan Quality • Always Fresh / Fast Service • Value for Money 12
Slide 13: The Seventh Store in Hong Kong
The Seventh Store In Hong Kong Tai Po Mega Mall (opened 4th April 2019) 13
Slide 14: 2019 First Half Financial Results Highlight
2019 FIRST HALF FINANCIAL RESULTS HIGHLIGHT 14
Slide 15: Number of Stores
Number of Stores End of 1H2018 Opened Closed 1H2019 2018 Circle K Hong Kong 332 337 8 (6) 339 Circle K Guangzhou (franchised) 65 61 2 - 63 Circle K Macau (franchised) 30 32 1 (1) 32 Circle K Zhuhai (franchised) 16 13 2 (1) 14 Saint Honore HK & Macau 103 100 1 (2) 99 Saint Honore China 33 31 - (3) 28
Slide 16: Group Turnover
Group Turnover +5.0% 3,500 3,000 2,574* 2,704* 2,500 523 508 HK$ Million 2,000 1,500 1,000 2,092 2,239 500 0 2018 2019 Circle K Saint Honore ∗ Less inter-group sales: HK$41M in 1H2018 & HK$43M in 1H2019 16
Slide 17: Gross Profit & Other Income
Gross Profit & Other Income CRA Group 40 38 37.1 37.4 % of Turnover 36 34 32 30 2018 2019 17
Slide 18: Group Store Operating Expenses
Group Store Operating Expenses 30 -0.1% 28 26.7 26.6 % of Turnover 26 24 22 20 2018 2019 18
Slide 19: Group Net Profit
Group Net Profit +22.4% 100 82 80 67 HK$ Million 60 40 20 0 2018 2019 19
Slide 20: Net Profit by Market
Net Profit by Market (HK$ Million) 1H2018 1H2019 Change Hong Kong & Macau Markets 72 83 13.8% Southern China Market (5) (3) 44.9% Developing Businesses - 2 9x CRA Group Net Profit 67 82 22.4% 20
Slide 21: Group Net Profit as % of Turnover
Group Net Profit as % of Turnover 5 +0.4% 4 % of Turnover 3.0 3 2.6 2 1 0 2018 2019 21
Slide 22: Basic Earnings Per Share
Basic Earnings Per Share +22.3% 14 12 10.8 10 8.83 HK Cents 8 6 4 2 0 2018 2019 22
Slide 23: 2019 First Half Financial Results Highlight
2019 First Half Financial Results Highlight 1H2018 1H2019 Change Number of Stores 581 582 +1 Group Turnover (HK$M) 2,574 2,704 5.0% Group Net Profit (HK$M) 67 82 22.4% Net Profit as % of Turnover 2.6 3.0 0.4% Basic Earnings Per Share (HK cents) 8.83 10.8 22.3% Interim Dividends (HK cents) 5 6 20.0%
Slide 24: 2019 Outlook
2019 OUTLOOK ver sees fo ee oT i d i mE no mash See 24
Slide 25: 2019 Second Half Outlook
2019 Second Half Outlook Hong Kong overall retailing industry looks quite gloomy Daily necessity segments are less affected Festive products & celebration cakes expected to be adversely affected O2O business model expected to drive better-than-peers results 25
Slide 26: Circle K Must Take It Easy!
es | 2 Circle K Must Take /t Easy! 26
Slide 27: Thank You!
THANK YOU ! 27
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