Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q3 2009 Earnings Presentation

30 slides from Convenience Retail Asia's earnings presentation, Nov 5, 2009

  1. Slide 1: Results Announcement 3rd Quarter 2009

    Results Announcement 3rd Quarter 2009 5 November 2009

  2. Slide 2: Agenda

    Agenda „ Overall Hong Kong & Guangzhou Retail Markets „ 2009Q3 Key Highlight „ 2009Q3 Financial Results Highlight „ 2009 Update & Outlook

  3. Slide 3: Hong Kong & Guangzhou Retail Markets

    Hong Kong & Guangzhou Retail Markets

  4. Slide 4: Hong Kong Retail Market

    Hong Kong Retail Market Total Retail Sales Value Composite Consumer Price Index 16 5 12.8 4.3 Sep YTD: -3.4% Sep YTD: +0.2% 12 10.6 4 7.4 3.1 8 3 Year-on-year % change Year-on-year % change 2.0 4 2.4 2 1.2 0 0.8 1 0.6 0.5 -0.1 0.0 -4 0 -4.3 -4.7 -5.3 -6.2 -1 -8 -7.7 -0.9 -1.5 -1.6 -12 -2 -12.7 -16 -

  5. Slide 5: Guangzhou Retail Market

    Guangzhou Retail Market Total Retail Sales Value City Consumer Price Index 25 8 Sep YTD: +14.5% Sep YTD: -3.0% 21.0 5.9 19.9 6 20 18.9 18.5 16.8 17.2 17.0 Year-on-year % change 4 3.4 Year-on-year % change 15.3 15 2.2 2 12.5 9.8 0 10 -2 -2.5 5 -3.0 -4 -3.5 -3.3 2.3 -3.8 -4.4 -4.3 -4.4 0 -6 2007 2008

  6. Slide 6: Q3 Key Highlight

    2009Q3 Key Highlight

  7. Slide 7: Q3 Key Highlight: Hong Kong Market

    2009Q3 Key Highlight Hong Kong Market „ Customer demand was still weak in July and August but started to improve in September „ Adverse impact on store traffic ¾ 50% increase in cigarette tax starting in 25 Feb 2009 ¾ Plastic bags levy effective 7 July 2009 „ Retailers competing for a smaller pie wi

  8. Slide 8: Circle K Hong Kong Promotions

    Circle K Hong Kong Promotions

  9. Slide 9: Saint Honore Hong Kong Promotions

    Saint Honore Hong Kong Promotions

  10. Slide 10: Q3 Key Highlight: Southern China Market

    2009Q3 Key Highlight Southern China Market „ Consumer sentiment to spend was weak in July but improved in August and September „ Difficulty in renewing cigarette license „ Focused on promoting Hot & In food services to reduce impact „ Closed 5 stores

  11. Slide 11: Circle K Guangzhou Promotions

    Circle K Guangzhou Promotions

  12. Slide 12: Q3 Financial Results Highlight

    2009Q3 Financial Results Highlight

  13. Slide 13: Number of Stores – Sep YTD

    2009 Financial Results Highlight Number of Stores – Sep YTD End of End of Opened Closed 2008 2009Q3 Circle K Hong Kong 284 16 (7) 293 Circle K Southern China 82 4 (18) 68 - Guangzhou (owned) 71 2 (12) 61 - Guangzhou (franchised) 5 2 (1) 6 - Shenzhen 6 - (5) 1 Circle K Macau (J.V.) 17 4 (1) 20 Circle

  14. Slide 14: Group Turnover – 3rd Quarter

    2009 Financial Results Highlight Group Turnover – 3rd Quarter 4,000 3,322.7 0.6% 2,917.6 3,000 HK$ Million 2,000 902.6* 896.8* 1,000 209.9 206.3 705.5 702.7 0 2007 2008 2008Q3 2009Q3 Circle K St. Honore * Less inter-group sales: $12.8M in 2008Q3 and $12.2M in 2009Q3

  15. Slide 15: Group Turnover – Sep YTD

    2009 Financial Results Highlight Group Turnover – Sep YTD 4,000 0.8% 3,322.7 2,917.6 3,000 2,492.8* 2,513.5* HK$ Million 534.6 532.3 2,000 1,000 1,993.3 2,020.1 0 2007 2008 Sep YTD Sep YTD 2008 2009 Circle K St. Honore * Less inter-group sales: $35.1M in Sep YTD 2008 and $38.9M in Sep YTD 2009

  16. Slide 16: Gross Margin & Other Income

    2009 Financial Results Highlight Gross Margin & Other Income 40% 0.2% 38% 37.1% 37.4% 37.2% 36.6% % of Turnover 36% 34% 32% 30% 2007 2008 2008Q3 2009Q3 # Excluding interest income

  17. Slide 17: Store Operating Expenses

    2009 Financial Results Highlight Store Operating Expenses 40% 0.1% 30% 26.7% 26.9% 26.6% 26.5% % of Turnover 20% 10% 0% 2007 2008 2008Q3 2009Q3

  18. Slide 18: Group Net Profit – 3rd Quarter

    2009 Financial Results Highlight Group Net Profit – 3rd Quarter 100 86.9 88.9 1.8% 80 HK$ Million 60 40 28.0 28.5 20 0 2007 2008 2008Q3 2009Q3

  19. Slide 19: Group Net Profit – Sep YTD

    2009 Financial Results Highlight Group Net Profit – Sep YTD 100 86.9 88.9 4.5% 80 67.3 64.2 HK$ Million 60 40 20 0 2007 2008 Sep YTD Sep YTD 2008 2009

  20. Slide 20: Net Profit By Market

    2009 Financial Results Highlight Net Profit By Market 3rd Quarter Sep YTD (HK$ Million) 2008 2009 2008 2009 Hong Kong & Macau 38.3 36.4 99.5 90.0 Markets China Market (10.3) (7.9) (32.2) (25.8) Total CRA Group 28.0 28.5 67.3 64.2

  21. Slide 21: Net Profit as % of Turnover – 3rd Qtr

    2009 Financial Results Highlight Net Profit as % of Turnover – 3rd Qtr 0.1% 4% 3.1% 3.2% 3.0% 3% 2.7% % of Turnover 2% 1% 0% 2007 2008 2008Q3 2009Q3

  22. Slide 22: Net Profit as % of Turnover – Sep YTD

    2009 Financial Results Highlight Net Profit as % of Turnover – Sep YTD 4% 0.1% 3.0% 3% 2.7% 2.7% 2.6% % of Turnover 2% 1% 0% 2007 2008 Sep YTD Sep YTD 2008 2009

  23. Slide 23: Basic Earnings Per Share – 3rd Qtr

    2009 Financial Results Highlight Basic Earnings Per Share – 3rd Qtr 20 1.8% 15 12.08 12.18 HK Cents 10 3.83 3.90 5 0 2007 2008 2008Q3 2009Q3

  24. Slide 24: Basic Earnings Per Share – Sep YTD

    2009 Financial Results Highlight Basic Earnings Per Share – Sep YTD 20 4.6% 15 12.08 12.18 HK Cents 9.22 8.80 10 5 0 2007 2008 Sep YTD Sep YTD 2008 2009

  25. Slide 25: 3rd Quarter

    2009 Financial Results Highlight 3rd Quarter 2008Q3 2009Q3 Change Number of Stores 501 496 (5) Group Turnover (HK$M) 902.6 896.8 - 0.6% Group Net Profit (HK$M) 28.0 28.5 + 1.8% Net Profit as % of Turnover 3.1% 3.2% + 0.1% Basic Earnings Per Share 3.83 cents 3.90 cents + 1.8%

  26. Slide 26: Sep YTD

    2009 Financial Results Highlight Sep YTD Sep YTD Sep YTD Change 2008 2009 Number of Stores 501 496 (5) Group Turnover (HK$M) 2,492.8 2,513.5 + 0.8% Group Net Profit (HK$M) 67.3 64.2 - 4.5% Net Profit as % of Turnover 2.7% 2.6% - 0.1% Basic Earnings Per Share 9.22 cents 8.80 cents - 4.6%

  27. Slide 27: Update and Outlook

    2009 Update and Outlook

  28. Slide 28: Update & Outlook

    2009 Update & Outlook „ Improving consumer sentiment but market still very competitive „ Plastic bag levy and cigarette tax increase in Hong Kong continues to unfavorably impact store traffic „ Major promotions planned by CKHK and SHHK in Q4 2009 „ CRSC continues to be affected by cigarette license

  29. Slide 29: To Summarize

    To Summarize „ Q3 2009 actual results better than 2008’s „ Improving consumer sentiment but very competitive market condition in Hong Kong „ Aggressive promotional plans to generate sales „ Cigarette license problem in Guangzhou, causing drop in sales and store traffic „ Actions to reduce cost and l

  30. Slide 30: Thank You!

    Retail : Uf) Thank You!

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