Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q1 2004 Earnings Presentation

19 slides from Convenience Retail Asia's earnings presentation, May 5, 2004

  1. Slide 1: 1st Quarter 2004 Results Presentation

    1 Quarter 2004 Results Pres st entation A member of the Li & Fung (Retailing) Group 5 May 2004

  2. Slide 2: Agenda

    1st Quarter 2004 Results Presentation Agenda  1st Quarter 2004 Financial Results Highlights  2004 Outlook & Update  Questions & Answers

  3. Slide 3: Financial Results Highlights: Group Turnover

    1st Quarter 2004 Financial Results Highlights Group Turnover 2,000 1,526.1 1,393.5 1,500 + 15% HK$ Million 1,000 349.6 403.7 500 0 2002 2003 1st Qtr 2003 1st Qtr 2004 No. of store – HK 166 186 168 190 No. of store - China 2 7 4 10

  4. Slide 4: Comparable Stores Sales

    1st Quarter 2004 Financial Results Highlights 164 Comparable Stores Sales 400 + 5.3% 380 364.0 HK$ Million 360 345.8 340 320 300 1st Qtr 2003 1st Qtr 2004

  5. Slide 5: Top Contributing Categories

    Top 5 Contributing Categories % of Total Increase  Food Services 25%  Confectionery and Snacks 19%  Grocery 19%  Newspaper and Magazines 18%  Packaged Beverages 11%

  6. Slide 6: Top Contributing Categories

    Top 5 Contributing Categories Weekly Weekend Specials Promotion Ding-A-Meal Promotion Newspaper/Magazine Promotion

  7. Slide 7: China Market Showing Strong Sales Growth

    China Market Showing Strong Sales Growth Comparable Stores Sales Total Stores Sales 5 5 4.6 + 10% + 254% 4 4 HK$ Million HK$ Million 3 3 2 2 1.3 0.88 0.97 1 1 0 0 Q1 2003 Q1 2004 Q1 2003 Q1 2004 No. of store: 2 No. of store: 4 10

  8. Slide 8: China Market Showing Strong Sales Growth

    China Market Showing Strong Sales Growth Hot & In Buns Student Program Flagship Store $2 Trial Promotion

  9. Slide 9: Slight Increase in Gross Margin / Other Income

    Slight Increase in Gross Margin / Other Income Gross Margin/Other Income as % of Sales (Excluding Interest) 34% 32.8% 33% 32.6% + 0.3% % of Sales 32% 31.3% 31.0% 31% 30% 29% 2002 2003 1st Qtr 2003 1st Qtr 2004

  10. Slide 10: Tight Control of Store Operating Expenses

    Tight Control of Store Operating Expenses 30% 23.3% 24.2% 23.9% 22.7% 25% 20% 7.1% 7.3% 6.9% 7.2% % of Sales 15% 6.9% 7.0% 7.6% 7.4% 10% 5% 8.9% 9.1% 9.5% 9.2% 0% 2002 2003 1st Qtr 2003 1st Qtr 2004 Labour Cost Rental Cost Other Expenses

  11. Slide 11: Financial Results Highlights: Group Net Profit

    1st Quarter 2004 Financial Results Highlights Group Net Profit 70 60.4 60.7 60 50 + 17% HK$ Million 40 30 20 7.3 8.5 10 0 2002 2003 1st Qtr 2003 1st Qtr 2004

  12. Slide 12: Financial Results Highlights: Net Profit as % of Sales

    1st Quarter 2004 Financial Results Highlights Net Profit as % of Sales 5% 4.3% 4.0% 4% % of Sales 3% 2.1% 2.1% 2% 1% 0% 2002 2003 1st Qtr 2003 1st Qtr 2004

  13. Slide 13: Net Profit by Market

    Net Profit by Market 1st Qtr 2003 1st Qtr 2004 Changes (HK$ M) (HK$ M) (HK$ M) Hong Kong Market 9.5 10.8 1.3 China Market (2.2) (2.3) (0.1) Total 7.3 8.5 1.2

  14. Slide 14: Financial Results Highlights: Basic Earnings Per Share

    1st Quarter 2004 Financial Results Highlights Basic Earnings Per Share 10 9.1 9.1 8 + 0.2 Cent 6 HK Cents 4 2 1.1 1.3 0 2002 2003 1st Qtr 2003 1st Qtr 2004

  15. Slide 15: 1st Quarter 2004 Financial Results Highlights

    1st Quarter 2004 Financial Results Highlights 1st Qtr 2003 1st Qtr 2004 % Change Group Turnover (HK$ 349.6 403.7 + 15% Million) Group Net Profit (HK$ 7.3 8.5 + 17% Million) Net Profit as % of Sales 2.1% 2.1% - Basic Earnings Per Share 1.1 Cents 1.3 Cents + 0.2 Cent

  16. Slide 16: 2004 Update & Outlook

    2004 Update & Outlook

  17. Slide 17: Circle K Hong Kong – Quality Growth

    2004 Update & Outlook Circle K Hong Kong – Quality Growth  Overall consumer sentiment improving  Deflation and high unemployment  Upward pressure on rental  Prudent in committing to high rental  Maintain quality growth strategy

  18. Slide 18: Circle K China

    2004 Update & Outlook Circle K China  Continue to promote awareness of brand, build brand preference, and expand customer base  Speed up new store growth  30 – 40 stores by end of 2004  Entry into other cities in Pearl River Delta  Continue to pursue option of acquisition

  19. Slide 19: To Summarize

    2004 Update & Outlook To Summarize  Prudent and quality growth in Hong Kong  Aggressive growth in China  Getting ready for non-organic growth  Plenty of work to do on Hong Kong market profitability growth

Convenience Retail Asia — Q1 2004 Earnings Presentation on 6ix