Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q1 2007 Earnings Presentation

21 slides from Convenience Retail Asia's earnings presentation, May 2, 2007

  1. Slide 1: Convenience Retail Asia Limited 1st Quarter 2007 Results Presentation

    Convenience Retail Asia Limited 1st Quarter 2007 Results Presentation 2 May 2007

  2. Slide 2: Agenda

    1st Quarter 2007 Results Presentation Agenda ƒ Overall Hong Kong & Guangzhou Retail Markets Update ƒ 1st Quarter 2007 Financial Results Highlights ƒ 2007 Update & Outlook

  3. Slide 3: 2007 Hong Kong Retail Sales Value

    2007 Hong Kong Retail Sales Value Year-on-year % Change 30 28.4 2007 YTD: + 11.4% 25 20 Year-on-year % 15 11.6 11.6 10.8 10 9.0 9.5 8.4 7.6 7.3 6.8 7.1 7.0 7.4 5.3 5.2 5 0 -3.2 -1.5 -5 May Mar Jun Jan 2006 Jan 2007 Nov Jul Aug Apr Oct 2004 2005 2006 Feb Sep Feb Dec Source: Census and Statistics Depa

  4. Slide 4: 2007 Hong Kong Consumer Price Index

    2007 Hong Kong Consumer Price Index Year-on-year % Change 2007 YTD: + 1.7% 3 2.5 2.3 2.4 2.2 2.3 2.1 2.2 2.0 2.1 2.0 2.0 1.9 1.9 2 1.6 Year-on-year % 1.2 1.0 1 0.8 0 -0.4 -1 May Mar Mar Jun Jan 2006 Jan 2007 Nov Jul Aug Oct Apr Feb Sep Feb 2004 2005 2006 Dec Source: Census and Statistics Department,

  5. Slide 5: 2006 Guangzhou Retail Sales Value

    2006 Guangzhou Retail Sales Value Year-on-year % Change 2007 YTD: + 13.4% 20 17.717.3 17.9 16.916.4 17.1 16.1 15.0 14.8 14.7 15 14.1 Year-on-year % 13.2 12.9 12.9 13.2 12.1 10.0 10 8.7 5 0 May Mar Mar Jan 2007 Jan 2006 Jun Nov Jul Aug Oct Apr 2004 2005 2006 Feb Sep Feb Dec Source: Bureau of Statisti

  6. Slide 6: 2006 Guangzhou City Consumer Price Index

    2006 Guangzhou City Consumer Price Index Year-on-year % Change 4 2007 YTD: + 1.6% 3.5 3.4 3.0 3.0 Year-on-year % 3 2.7 2.6 2.3 2.4 2.2 2.3 2.0 2.0 2 1.8 1.7 1.5 1.0 1 0.8 0 May Mar Jun Jan 2006 Nov Jan 2007 Jul Aug Apr Oct 2004 2005 2006 Feb Sep Feb Dec Source: Bureau of Statistics, Guangzhou

  7. Slide 7: 1st Quarter 2007 Financial Results Highlights

    1st Quarter 2007 Financial Results Highlights

  8. Slide 8: Group Turnover

    1st Qtr 2007 Financial Results Highlights Group Turnover 2,500 2,231.2 1,995.2 2,000 + 16% HK$ Million 1,500 1,000 514.4 596.8 42.6 500 554.2 0 2005 2006 1st Qtr 2006 1st Qtr 2007 Circle K Saint Honore

  9. Slide 9: Number of Stores – Circle K Group

    1st Qtr 2007 Financial Results Highlights Number of Stores – Circle K Group 1st Qtr 2006 1st Qtr 2007 ƒ Circle K Hong Kong 235 259 y Circle K Guangzhou 41 52 y Circle K Dongguan 6 8 y Circle K Shenzhen - 3 ƒ Sub-total 47 63 CRA Operated Circle K Stores 282 322 ƒ Zhuhai J.V. 5 6 ƒ Macau J.V. 13 16 To

  10. Slide 10: Number of Stores – Saint Honore Group

    1st Qtr 2007 Financial Results Highlights Number of Stores – Saint Honore Group 1st Qtr 2007 ƒ Saint Honore Hong Kong 74 y Cake Shop 60 y Bread Boutique 14 ƒ Saint Honore Macau 6 ƒ Saint Honore Guangzhou 7 Total Saint Honore Stores 87

  11. Slide 11: Number of Stores – CRA Group

    1st Qtr 2007 Financial Results Highlights Number of Stores – CRA Group 1st Qtr 2006 1st Qtr 2007 ƒ Circle K Group 300 344 ƒ Saint Honore Group - 87 Total Circle K Stores 300 431

  12. Slide 12: Group Net Profit

    1st Qtr 2007 Financial Results Highlights Group Net Profit 73.6 75.1 80 + 18.9% 60 HK$ Million 40 20 10.1 12.0 0 2005 2006 1st Qtr 2006 1st Qtr 2007

  13. Slide 13: Net Profit as % of Turnover

    1st Qtr 2007 Financial Results Highlights Net Profit as % of Turnover 5 4 3.7 3.4 % of Sales 3 2.0 2.0 2 1 0 2005 2006 1st Qtr 2006 1st Qtr 2007

  14. Slide 14: Gross Margin / Other Income

    1st Qtr 2007 Financial Results Highlights Gross Margin / Other Income 36 + 2.9% 35 34.3 34 % of Sales 33.2 33.0 33 32 31.4 31 30 2005 2006 1st Qtr 2006 1st Qtr 2007

  15. Slide 15: Store Operating Expenses

    1st Qtr 2007 Financial Results Highlights Store Operating Expenses 30 26.1 24.5 24.7 24.9 25 20 % of Sales 15 10 5 0 2005 2006 1st Qtr 2006 1st Qtr 2007

  16. Slide 16: Basic Earnings Per Share

    1st Qtr 2007 Financial Results Highlights Basic Earnings Per Share 15 12 10.9 11.1 + 15.3% HK Cents 9 6 3 1.5 1.73 0 2005 2006 1st Qtr 2006 1st Qtr 2007

  17. Slide 17: 1st Qtr 2007 Financial Results Highlights

    1st Qtr 2007 Financial Results Highlights 1st Qtr 2006 1st Qtr 2007 Change Number of Stores 300 431 + 43.7% Group Turnover (HK$M) 514.4 596.8 + 16.0% Group Net Profit (HK$M) 10.1 12.0 + 18.9% Net Profit as % of Turnover 2.0% 2.0% - Basic Earnings Per Share 1.5 Cents 1.73 Cents + 15.3%

  18. Slide 18: 2007 Update & Outlook

    2007 Update & Outlook

  19. Slide 19: 2007 Hong Kong Market Outlook

    2007 Hong Kong Market Outlook + Improving local consumers’ confidence in spending to continue + Inflation (2-3%) and customers’ acceptance of price increase - Smoking ban affecting comparable store’s year-on-year cigarette sales - Challenging lease renewal negotiations - Labour cost to increase but

  20. Slide 20: 2007 Southern China Market Outlook

    2007 Southern China Market Outlook + Consumer spending continue to increase at double- digit rate + Rental and energy cost to stabilize - Upward pressure on labour and raw material costs - Cigarette license becoming a major issue

  21. Slide 21: 2007 Market Outlook To Summarize

    2007 Market Outlook To Summarize ƒ Favourable consumer sentiments and strong performance ƒ Cigarette license becoming a major issue in China ƒ Contribution from Saint Honore business starting in 2nd half 2007 ƒ Solid cash-flow, balance sheet and outlook

Convenience Retail Asia — Q1 2007 Earnings Presentation on 6ix