Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2016 Earnings Presentation
30 slides from Convenience Retail Asia's earnings presentation, Aug 11, 2016
Slide 1: Convenience Retail Asia Limited 2016 Interim Results Announcement
Convenience Retail Asia Limited 2016 Interim Results Announcement 11 August 2016
Slide 2: Agenda
Agenda Hong Kong & China Retail Markets Key Highlight 2016 First Half Financial Results Highlight 2016 Update & Outlook Question & Answer 2
Slide 3: Hong Kong & China Retail Markets Key Highlight
HONG KONG & CHINA RETAIL MARKETS KEY HIGHLIGHT 3
Slide 4: Consumer Confidence Index
Consumer Confidence Index Consumers remained conservative on job prospects, personal finance and spending intentions for next 6 months 120 111 111 111 111 110 108 108 110 110 106 107 106 107 110 105 105 106 111 108 107 107 107 106 105 106 105 100 103 104 103 92 91 97 98 96 97 98 98 90 94 94 94 96
Slide 5: Hong Kong Retail Market
Hong Kong Retail Market Total Retail Sales Value Composite CPI 20 6 June YTD: -10.5% June YTD: +2.7% 15 11.0 5 10 4.3 4.4 Year-on-year % change Year-on-year % change 5 4 0 -0.2 3.0 3.0 2.9 -5 3 2.7 2.6 -3.7 2.5 2.4 -10 -6.6 -7.5 -8.3 -8.9 -9.8 2 -15 -20 -20.6 1 -25 -30 0 2013FY 2014FY 2015FY 201601
Slide 6: Retail Sales & Mainland Visitor Arrivals
Retail Sales & Mainland Visitor Arrivals Retail Sales Mainland Visitor Arrivals 30 20 18 20 16 14 11 12 8 Year-on-year % Change 10 8 7 4 2 1 0 -4 0 -4 -1 -7 -8 -2 -5 -7 -10 -7 -10 -8 -7 -7 -8 -9 -10 -20 -12 -21 -30 -26 -40 2016 May 2016 Mar 2016 Feb 2016 Apr 2016 Jun 2016 Jan 2013Q3 2013Q4 2014Q1 20
Slide 7: Hong Kong Retail Market
Hong Kong Retail Market China Daily 3/8/2016 Ming Pao Daily News 2/8/2016 Sing Tao Daily News 2/6/2016 Sing Tao Daily News 30/7/2016 Apple Daily News 9/6/2016 Apple Daily News 19/7/2016 Sing Tao Daily News 19/7/2016 7
Slide 8: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience 8
Slide 9: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience 9
Slide 10: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience 10
Slide 11: China Retail Market
China Retail Market Total Retail Sales Value Consumer Price Index 20 4 June YTD: +10.3% June YTD: +2.1% 15 3 13.1 Year-on-year % change Year-on-year % change 12.0 2.6 10.7 10.2 10.5 10.1 10.0 10.6 2.3 2.3 2.3 10 2.0 2.0 1.9 2 1.8 1.4 5 1 0 0 201601-02 201603 201604 201605 201606 2013FY 2014FY 2015FY
Slide 12: 2016 First Half Financial Results Highlight
2016 FIRST HALF FINANCIAL RESULTS HIGHLIGHT 12
Slide 13: Number of Stores
Number of Stores End of 1H2015 Opened Closed 1H2016 2015 Circle K Hong Kong 328 328 6 (10) 324 Circle K Guangzhou (franchised) 82 76 - (4) 72 Circle K Macau (franchised) 26 27 2 (1) 28 Circle K Zhuhai (franchised) 14 18 1 (1) 18 Saint Honore HK & Macau 98 98 7 (2) 103 Saint Honore Southern China 43
Slide 14: Group Turnover
Group Turnover 3,000 + 3.4% 2,500 2,261.6* 2,339.0* 498.2 495.6 2,000 HK$ Million 1,500 1,000 1,880.4 1,794.2 500 0 1H2015 1H2016 Circle K Saint Honore ∗ Less inter-group sales: HK$30.8M in 1H2015 and HK$37.0M in 1H2016 14
Slide 15: Gross Profit & Other Income
Gross Profit & Other Income 40 38 35.9 % of Turnover 36 35.7 34 32 30 1H2015 1H2016 15
Slide 16: Group Store Operating Expenses
Group Store Operating Expenses 30 28 26.3 26.3 % of Turnover 26 24 22 20 1H2015 1H2016 16
Slide 17: Group Net Profit
Group Net Profit 70 60 51.8 50 30.8 40 HK$ Million 30 48.3 51.8 20 10 0 -10 -17.5 -20 1H2015 1H2016 Discontinued Operations Continuing Operations Net Profit: +68.4% Continuing Operations: +7.2% 17
Slide 18: Net Profit by Market
Net Profit by Market (HK$ Million) 1H2015 1H2016 Change Hong Kong & Macau Markets 66.0 66.2 0.4% China Market (7.8) (4.0) 48.8% FingerShopping (9.9) (10.4) -5.6% Discontinued Operations (17.5) - N/A CRA Group Net Profit 30.8 51.8 68.4% 18
Slide 19: Group Net Profit as % of Turnover
Group Net Profit as % of Turnover 3 2.1 2.2 2.2 2 % of Turnover 1.4 1 0 Continuing Net Profit Operations 1H2015 1H2016 Continuing Operations: +0.1% Net Profit: +0.8% 19
Slide 20: Basic Earnings Per Share
Basic Earnings Per Share 10 8 6.42 6.87 6.87 6 HK Cents 4.09 4 2 0 Continuing Net Profit Operations 1H2015 1H2016 20
Slide 21: 2016 First Half Financial Results Highlight
2016 First Half Financial Results Highlight 1H2015 1H2016 Change Number of Stores 591 586 -5 stores Group Turnover (HK$M) 2,261.2 2,339.0 +3.4% Group Net Profit (HK$M) 30.8 51.8 +68.4% Continuing Operations 48.3 51.8 +7.2% Net Profit as % of Turnover +1.4% +2.2% +0.8% Continuing Operations +2.1%
Slide 22: 2016 Update & Outlook
2016 UPDATE & OUTLOOK 22
Slide 23: The Perfect Storm for Hong Kong Retailing
The Perfect Storm for Hong Kong Retailing Drop in Chinese tourist Hong Kong Total Retail Sales Value arrival and spending 0 -0.2 Local customer sentiment Year-on-year % change -3.7 softening -5 Discount / Sale continuing -10 -10.5 Operating expenses not -15 dropping much 2014FY 2015FY 2016 J
Slide 24: Reinventing Strategy to Drive Growth
Reinventing Strategy to Drive Growth Reinvent for “Internet+” Customer Experience Reinvent the Core 敢創敢試 TFP Middle Income “Internet+” - Home Makers Customer Speed Both Working STF 16 - 55 and non Working Competitiveness Competitiveness ASN 24
Slide 25: OK Stamp It
OK STAMP IT : GOES " Cy (QoK men [ok stamp it) — eD Em, HE Z fa El. RS Earn eStamp. Tap Redeem Rewards 25
Slide 26: OK Stamp It – Mobile App
OK STAMP IT— Mobile App ? eeee0 SMC HK £4F10:59 Mm e000 SMC HK © £4F10:59 MM e000 SMC HK © £11:09 $20 | $20 | $20 | $20 | s20 26
Slide 27: Simply Great Coffee
SIMPLY GREAT COFFEE ry OIMFLE UACAL GUFFEE
Slide 28: ASN Into Different Categories
ASN Into Different Categories Ice-cream Beer Cold Drinks 28
Slide 29: In Great Shape
In Great Shape
Slide 30: Thank You !
Thank You ! 30
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