Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2018 Earnings Presentation
31 slides from Convenience Retail Asia's earnings presentation, Aug 16, 2018
Slide 1: Convenience Retail Asia Limited 2018 Interim Results Announcement
Convenience Retail Asia Limited 2018 Interim Results Announcement 16 August 2018
Slide 2: Agenda
Agenda Hong Kong Retail Market Key Highlight 2018 First Half Financial Results Highlight 2018 Outlook Questions & Answers 2
Slide 3: Hong Kong Retail Market Key Highlight
HONG KONG RETAIL MARKET KEY HIGHLIGHT 3
Slide 4: Hong Kong Retail Market
Hong Kong Retail Market Total Retail Sales Value & Volume Supermarkets Sales Value & Volume 1H2018 Value: +13.4% 1H2018 Value: +1.5% 1H2018 Volume: +11.8% 1H2018 Volume: -1.5% 25 20.7 35 29.9 28.3 20 18.0 30 Year-on-year % change Year-on-year % change 25 15 20 12.9 10 11.5 12.2 12.0 4.6 15 11.0 11.5
Slide 5: Hong Kong Retail Market
Hong Kong Retail Market South China Morning Post South China Morning Post HK Economic Times 2/8/2018 HK Economic Times 1/8/2018 29/7/2018 9/8/2018 Hong Kong Economic Journal 22/6/2018 Wen Wei Po 6/5/2018 5
Slide 6: The "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: World Cup Lucky Draw Game
World Cup Lucky Draw Game © Copyright 2018 Circle K Convenience Stores (HK) Ltd. All rights reserved. Patented. 9
Slide 10: OK Stamp It – KPIs
0 1,000,000 1,200,000 200,000 400,000 600,000 800,000 23/06/2016 08/07/2016 23/07/2016 07/08/2016 22/08/2016 06/09/2016 21/09/2016 06/10/2016 21/10/2016 05/11/2016 20/11/2016 05/12/2016 20/12/2016 04/01/2017 19/01/2017 03/02/2017 18/02/2017 05/03/2017 20/03/2017 © Copyright 2018 Circle K Convenience
Slide 11: OK Stamp It – Very Good Response
OK Stamp It – Very Good Response Customer feedback Vendor feedback 11
Slide 12: OK Stamp It Won Multiple Awards
OK Stamp It Won Multiple Awards Marketing Magazine Global Awards for Retail Excellence by - Mob-Ex Awards 2018 the Asia Retail Congress & Economic Times Gold for Best App - Targeted Demographic Sliver for Best App - Consumer Brand Sliver for Best Reform of App - Asia eCommerce Awards 2018 Silver for
Slide 13: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience >400,000 Members 13
Slide 14: Fast Fashion Eyewear Chain from Japan
Fast Fashion Eyewear Chain from Japan • Japan Quality • Always Fresh / Fast Service • Value for Money
Slide 15: The First Store In Hong Kong
The First Store In Hong Kong City Plaza, Taikoo (opened 25th November 2017) 15
Slide 16: The Second Store In Hong Kong
The Second Store In Hong Kong Telford Plaza, Kowloon Bay (opened 23rd February 2018) 16
Slide 17: The Third Store In Hong Kong
The Third Store In Hong Kong Sunshine City, Ma On Shan (opened 21st July 2018) 17
Slide 18: 2018 First Half Financial Results Highlight
2018 FIRST HALF FINANCIAL RESULTS HIGHLIGHT 18
Slide 19: Number of Stores
Number of Stores End of 1H2017 Opened Closed 1H2018 2017 Circle K Hong Kong 331 332 2 (2) 332 Circle K Guangzhou (franchised) 64 64 5 (4) 65 Circle K Macau (franchised) 31 29 2 (1) 30 Circle K Zhuhai (franchised) 15 16 - - 16 Saint Honore HK & Macau 98 102 3 (2) 103 Saint Honore China 43 41 - (8) 33
Slide 20: Group Turnover
Group Turnover +6.1% 3,000 2,427* 2,574* 2,500 523 491 HK$ Million 2,000 1,500 1,000 1,970 2,092 500 0 2017 2018 Circle K Saint Honore ∗ Less inter-group sales: HK$34M in 1H2017 & HK$41M in 1H2018 20
Slide 21: Gross Profit & Other Income
Gross Profit & Other Income 40 38 37.1 36.3 % of Turnover 36 34 32 30 2017 2018 21
Slide 22: Group Store Operating Expenses
Group Store Operating Expenses 30 +0.4% 28 26.3 26.7 % of Turnover 26 24 22 20 2017 2018 22
Slide 23: Group Net Profit
Group Net Profit +17.9% 80 70 67 60 57 HK$ Million 50 40 30 20 10 0 2017 2018 23
Slide 24: Net Profit by Market
Net Profit by Market (HK$ Million) 1H2017 1H2018 Change Hong Kong & Macau Markets 68 72 6.6% Southern China Market (3) (5) -76.5% Developing Businesses (8) - 96.5% CRA Group Net Profit 57 67 17.9% 24
Slide 25: Group Net Profit as % of Turnover
Group Net Profit as % of Turnover 4 +0.2% 3 2.6 2.4 % of Turnover 2 1 0 2017 2018 25
Slide 26: Basic Earnings Per Share
Basic Earnings Per Share +17.4% 11 10 8.83 9 8 7.52 HK Cents 7 6 5 4 3 2 1 0 2017 2018 26
Slide 27: 2018 First Half Financial Results Highlight
2018 First Half Financial Results Highlight 1H2017 1H2018 Change Number of Stores 582 581 -1 Group Turnover (HK$M) 2,427 2,574 6.1% Group Net Profit (HK$M) 57 67 17.9% Net Profit as % of Turnover 2.4 2.6 0.2% Basic Earnings Per Share (HK cents) 7.52 8.83 17.4% Interim Dividends (HK cents) 4 5 25.0%
Slide 28: 2018 Outlook
2018 OUTLOOK 28
Slide 29: 2018 Second Half Outlook
2018 Second Half Outlook 1. Hong Kong consumer retail volume remains stagnant 2. Depreciation of RMB will help lower cost of good sold of Saint Honore chain 3. High labour and rental to continue 4. O2O business model and delivering great customer experience especially EFS (Easy, Fast & Simple) and A
Slide 30: The Future Is Bright & Clear
The Future Is Bright & Clear 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. 30
Slide 31: Thank You!
THANK YOU ! 31
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