Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q1 2009 Earnings Presentation

23 slides from Convenience Retail Asia's earnings presentation, May 5, 2009

  1. Slide 1: Convenience Retail Asia Ltd 2009Q1 Results Announcement

    Convenience Retail Asia Ltd 2009Q1 Results Announcement 5 May 2009

  2. Slide 2: Agenda

    Agenda „ Overall Hong Kong & Guangzhou Retail Markets „ 2009Q1 Key Highlight „ 2009Q1 Financial Results Highlight „ 2009 Update & Outlook

  3. Slide 3: HK Consumer Confidence Index

    HK Consumer Confidence Index Global Average 140 Hong Kong 118 118 120 106 111 111 109 106 100 88 98 98 99 97 94 80 92 88 77 84 60 70 40 20 0 1H2005 2H2005 1H2006 2H2006 1H2007 2H2007 1H2008 2H2008 1H2009 Source: The Nielsen Company

  4. Slide 4: Hong Kong Retail Market

    Hong Kong Retail Market HK Retail Sales Value HK Consumer Price Index 20 March YTD: -3.9% 6 March YTD: +1.7% 15 12.8 Year-on-year % change 5 Year-on-year % change 10.6 4.3 10 7.3 7.4 4 5 3.1 3 0 2.0 2.0 -5 2 1.2 -7.7 1 0.8 -10 -12.6 -15 0 2006 2007 2008 200901 200902 200903 2006 2007 2008 200901 200

  5. Slide 5: Guangzhou Retail Market

    Guangzhou Retail Market GZ Retail Sales Value GZ City Consumer Price Index 30 March YTD: +8.3% 9 March YTD: -1.6% 25 5.9 Year-on-year % change Year-on-year % change 21.0 6 20 18.9 3.4 15.0 3 2.3 2.2 15 12.5 9.8 0 10 5 -3 -2.5 2.3 -4.4 0 -6 2006 2007 2008 200901 200902 200903 2006 2007 2008 200901 20

  6. Slide 6: 2009Q1 Key Highlight

    2009Q1 Key Highlight

  7. Slide 7: Key Highlight: Hong Kong Market

    2009Q1 Key Highlight Hong Kong Market „ Consumers cautious in spending and becoming more value conscious „ CVS sales holding up until end of February 2009 „ 50% increase in cigarette tax leading to drop in cigarette sales and store traffic „ Bakery business growing

  8. Slide 8: Key Highlight: Southern China Market

    2009Q1 Key Highlight Southern China Market „ Southern China business impacted more by the global financial crisis „ Closed down 6 more stores in Guangzhou and 2 in Shenzhen as well as offices in Dongguan and Shenzhen „ Outsourced all lunch box production „ Focus on improving “Hot & In” bakery and dr

  9. Slide 9: 2009Q1 Financial Results Highlight

    2009Q1 Financial Results Highlight

  10. Slide 10: Number of Stores

    2009Q1 Financial Results Highlight Number of Stores End of End of Opened Closed 2008 2009Q1 Circle K Hong Kong 284 8 (3) 289 Circle K Southern China 82 1 (8) 75 - Guangzhou (owned) 71 1 (6) 66 - Guangzhou (franchised) 5 - - 5 - Shenzhen 6 - (2) 4 Circle K Macau (J.V.) 17 1 - 18 Circle K Zhuhai (J.V.

  11. Slide 11: Group Turnover

    2009Q1 Financial Results Highlight Group Turnover 4,000 3,322.7 2.8% 2,917.6 3,000 HK$ Million 2,000 779.4* 801.5* 1,000 165.5 161.1 627.7 647.9 0 2007 2008 2008Q1 2009Q1 Circle K St. Honore * Less inter-group sales: HK$9.4M in 2008Q1 and HK$11.9M in 2009Q1

  12. Slide 12: Gross Margin / Other Income

    2009Q1 Financial Results Highlight Gross Margin / Other Income 40% 0.8% 38% 37.1% 36.6% 36.4% % of Turnover 35.6% 36% 34% 32% 30% 2007 2008 2008Q1 2009Q1 * Excluding interest income

  13. Slide 13: Store Operating Expenses

    2009Q1 Financial Results Highlight Store Operating Expenses 40% 1.0% 30% 26.7% 26.9% 26.3% 27.3% % of Turnover 20% 10% 0% 2007 2008 2008Q1 2009Q1

  14. Slide 14: Group Net Profit

    2009Q1 Financial Results Highlight Group Net Profit 100 86.9 88.9 1.5% 80 HK$ Million 60 40 20 13.7 13.9 0 2007 2008 2008Q1 2009Q1

  15. Slide 15: Net Profit By Market

    2009Q1 Financial Results Highlight Net Profit By Market (HK$ Million) 2008Q1 2009Q1 Hong Kong and Macau Markets 22.8 23.2 China Market (9.1) (9.3) Total 13.7 13.9

  16. Slide 16: Net Profit as % of Turnover

    2009Q1 Financial Results Highlight Net Profit as % of Turnover 4% 0.1% 3.0% 3% 2.7% % of Turnover 1.8% 1.7% 2% 1% 0% 2007 2008 2008Q1 2009Q1

  17. Slide 17: Basic Earnings Per Share

    2009Q1 Financial Results Highlight Basic Earnings Per Share 20 1.1% 15 12.08 12.18 HK Cents 10 5 1.88 1.90 0 2007 2008 2008Q1 2009Q1

  18. Slide 18: 2009Q1 Financial Results Highlight

    2009Q1 Financial Results Highlight 2008Q1 2009Q1 Change Number of Stores 473 500 + 5.7% Group Turnover (HK$M) 779.4 801.5 + 2.8% Group Net Profit (HK$M) 13.7 13.9 + 1.5% Net Profit as % of Turnover 1.8% 1.7% - 0.1% Basic Earnings Per Share 1.88 cents 1.90 cents + 1.1%

  19. Slide 19: 2009 Update and Outlook

    2009 Update and Outlook

  20. Slide 20: 2009 Update and Outlook

    2009 Update and Outlook 1. Global financial crisis expected to continue to adversely affect consumer confidence and spending 2. In Hong Kong, CVS business has been holding up well until the 50% increase in cigarette tax on 25 February 2009. Expect traffic to be adversely affected at least till end o

  21. Slide 21: 2009 Update and Outlook

    2009 Update and Outlook 4. Southern China business has been impacted more severely in the 1st Quarter but now showing signs of improvement 5. H1N1 Flu will further affect store traffic. If prolonged, the flu will have a damaging impact on the overall retail industry 6. Tough operating environment in

  22. Slide 22: To Summarize

    To Summarize „ Global financial crisis and the H1N1 Flu will pose great challenges to the retail industry at Hong Kong and the Pearl River Delta „ CVS customer traffic is expected to be impacted „ Bakery business is benefiting yet lower cake sales offsets the favourable impact „ CVS in Southern Chin

  23. Slide 23: Thank You!

    Retail : Uf) Thank You!

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