Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2013 Earnings Presentation
27 slides from Convenience Retail Asia's earnings presentation, Aug 6, 2013
Slide 1: Convenience Retail Asia Ltd 2013 Interim Results Announcement
Convenience Retail Asia Ltd 2013 Interim Results Announcement 6 August 2013
Slide 2: Agenda
Agenda Hong Kong & China Retail Markets Key Highlight 2013 First Half Financial Results Highlight 2013 Update & Outlook Questions & Answers 2
Slide 3: Hong Kong & China Retail Markets Key Highlight
Hong Kong & China Retail Markets Key Highlight 3
Slide 4: Hong Kong Market
Hong Kong Market Hong Kong CPI 7 June YTD: + 3.9% Year-on-year % Change Hong Kong Total Retail Sales Value 6 5.3 5 4.1 4.4 4.0 3.9 4.1 30 June YTD: +15% 4 3.6 3.0 24.9 3 2.4 25 22.7 2 20.7 1 Year-on-year % Change 20 18.3 0 201301 201302 201303 201304 201305 201306 2010FY 2011FY 2012FY 14.7 15 12.9 9
Slide 5: Comparable Stores Turnover Hong Kong & Macau
Comparable Stores Turnover Hong Kong & Macau 10 8.4 Year-on-year % Change 8 6.2 6 3.9 4 2 0 Circle K HK Saint Honore Saint Honore HK Macau 5
Slide 6: New Products & Great Promotions - Circle K
New Products & Great Promotions - Circle K 6
Slide 7: New Products & Great Promotions – Saint Honore
New Products & Great Promotions – Saint Honore 7
Slide 8: The Biggest Challenge: Rental and Labour Cost Increase
The Biggest Challenge Rental and Labour Cost Increase 1st Half 2013 Hong Kong Rental Increase 1% - 87% No. of Stores Closed in Hong Kong 12 Hong Kong Labour Cost Increase 5% - 7%
Slide 9: China Market
China Market China GDP 14 China Total Retail Sales Value 12 June YTD: + 7.6% 10.4 Year-on-year % Change 10 9.2 25 7.8 7.7 7.5 June YTD: +12.7% 8 6 20 18.4 4 17.1 Year-on-year % Change 2 15 14.3 0 12.8 12.9 13.3 2013Q1 2013Q2 2010FY 2011FY 2012FY 12.3 12.6 10 China CPI 5 7 6 5.4 June YTD: + 2.4% Year
Slide 10: Comparable Stores Turnover China Market
Comparable Stores Turnover China Market 15 Year-on-year % Change 12 10.1 9.2 9 6 3 0 Circle K China Saint Honore China 10
Slide 11: China Rental & Labour Cost Increase
China Rental & Labour Cost Increase 1st Half 2013 Guangzhou Rental Increase 6% - 66% Guangzhou / Shenzhen Labour Cost 7% - 15% Increase
Slide 12: New Saint Honore Stores Opened in Shenzhen & Guangzhou
New Saint Honore Stores Opened in Shenzhen & Guangzhou 12
Slide 13: Other Highlights
Other Highlights Asia’s Most Promising Company on Grand Launch on 26 June 2013 Corporate Governance 9th Corporate Governance Asia Recognition Awards 2013 by Corporate Governance Asia 2012 – 2013 by YAHOO! 13
Slide 14: 2013 First Half Financial Results Highlight
2013 First Half Financial Results Highlight 14
Slide 15: Number of Stores
Number of Stores End of Transfer 1H2012 Opened Closed 1H2013 2012 from/(to) Circle K Hong Kong 331 331 14 (10) - 335 Circle K Southern China 70 83 3 (5) - 81 Guangzhou (owned) 61 70 3 (4) 1 70 Guangzhou (franchised) 8 12 - (1) (1) 10 Shenzhen 1 1 - - - 1 Circle K Macau (franchised) 22 23 1 - -
Slide 16: Group Turnover
Group Turnover + 7.4% 3,000 2,500 2,171.6 2,021.9 2,000 469.1 HK$ Million 429.9 Saint Honore 1,500 Circle K 1,000 1,625.0 1,739.0 500 0 1H2012 1H2013 ∗ Less inter-group sales: HK$33M in 1H2012 and HK$36.5M in 1H2013 16
Slide 17: Gross Profit & Other Income
Gross Profit & Other Income 40 + 0.5% 38 36.3 % of Turnover 35.8 36 34 32 30 1H2012 1H2013 17
Slide 18: Group Store Operating Expenses
Group Store Operating Expenses 30 + 0.6% 28 26.4 % of Turnover 25.8 26 24 22 20 1H2012 1H2013 18
Slide 19: Group Net Profit
Group Net Profit 120 - 7.7% 103.6 (Net Operating Profit) 100 80 38.5 HK$ Million 60.1 60 40 65.1 20 0 1H2012 1H2013 Property disposal gain 19
Slide 20: Net Profit by Market
Net Profit by Market (HK$ Million) 1H2012 1H2013 Change Hong Kong & Macau Markets 74.7 79.8 +6.9% China Market (9.6) (19.7) -105.4% CRA Group Net Operating Profit 65.1 60.1 -7.7% 20
Slide 21: Net Profit as % of Turnover
Net Profit as % of Turnover 8 - 0.4% (Net Operating Profit) 6 5.1 % of Turnover 4 1.9 2.8 2 3.2 0 1H2012 1H2013 Property disposal gain 21
Slide 22: Basic Earnings Per Share
Basic Earnings Per Share 18 - 8.4% (Excluding Property Gain) 15 14.09 12 5.23 HK Cents 9 8.12 6 8.86 3 0 1H2012 1H2013 Property disposal gain 22
Slide 23: 1H2013 Financial Results Highlight
1H2013 Financial Results Highlight 1H2012 1H2013 Change Number of Stores 557 594 +37 stores Group Turnover (HK$M) 2,021.9 2,171.6 +7.4% Group Net Operating Profit (HK$M) 65.1 60.1 -7.7% Gain on Property Disposal (HK$M) 38.5 - N/A Group Net Profit (HK$M) 103.6 60.1 -42.0% Net Operating Profit as % of
Slide 24: 2013 Update & Outlook
2013 Update & Outlook 24
Slide 25: 2013 Update & Outlook
2013 Update & Outlook Hong Kong market operating conditions is expected to improve slightly in 2nd Half China market’s growth continues to slow Likonomics • Retreat of stimulus policies • Deleveraging in the financial market • Structural reform • Setting safety limits • 穏增長、調結構、促改革、推轉形 Circl
Slide 26: Consumer Confidence Index
Consumer Confidence Index 120 110 110 108 109 108 107 108 108 108 110 105 106 104 104 104 101 100 107 108 107 100 105 104 95 101 103 103 104 93 100 99 99 99 92 89 91 90 93 94 93 94 92 92 91 82 90 90 89 89 89 87 88 77 86 85 80 79 70 70 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 200
Slide 27: Thank You!
Thank You! 27
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