Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q3 2002 Earnings Presentation

23 slides from Convenience Retail Asia's earnings presentation, Oct 31, 2002

  1. Slide 1: 3rd Quarter 2002 Results Presentation

    3rd Quarter 2002 Results Presentation A member of the Li & Fung (Retailing) Group CRA Website: www.cr-asia.com 31 October 2002

  2. Slide 2: Hong Kong Retail Value Change

    Hong Kong Retail Value Change Year-on-Year % Change 6% 3.8% 4% 2% 0% -2% -1.2% -4% -6% -4.2% -8% -8.1% -10% -12% 1999 2000 2001 Aug YTD 2002 * Source – HKSAR Census and Statistics Department

  3. Slide 3: Agenda

    3rd Quarter 2002 Results Presentation Agenda  3rd Quarter 2002 Financial Results Highlights  Update & 2002 Outlook  Questions & Answers

  4. Slide 4: Group Turnover 3rd Quarter 2002

    3rd Quarter 2002 Financial Results Highlights Group Turnover 3rd Quarter 2002 1,500 1,305.1 1,140.7 972.9 1,000 + 5% HK$ Million 500 350.4 366.8 0 1999 Total 2000 Total 2001 Total 3rd Qtr 2001 3rd Qtr 2002 No. of Store: 114 123 146 141 157

  5. Slide 5: Stores Comparable Sales

    3rd Quarter 2002 Financial Results Highlights 121 Stores Comparable Sales 350 - 5% 330 318.9 302.3 HK$ Million 310 290 270 250 3rd Qtr 2001 3rd Qtr 2002

  6. Slide 6: Group Turnover Sep YTD 2002

    3rd Quarter 2002 Financial Results Highlights Group Turnover Sep YTD 2002 1,500 1,305.1 + 6% 1,140.7 972.9 1,032.8 978.8 1,000 HK$ Million 350.4 366.8 500 628.4 666.0 0 1999 Total 2000 Total 2001 Total Sep YTD Sep YTD 2001 2002 No. of Store: 114 123 146 141 157

  7. Slide 7: Group Net Profit – 3rd Quarter 2002

    3rd Quarter 2002 Financial Results Highlights Group Net Profit – 3rd Quarter 2002 80 70 65.5 60 48.1 + 3% 50 HK$ Million 40 30 20.2 20.8 20 6.6 10 0 1999 Total 2000 Total 2001 Total 3rd Qtr 2001 3rd Qtr 2002

  8. Slide 8: Group Net Profit – Sep YTD 2002

    3rd Quarter 2002 Financial Results Highlights Group Net Profit – Sep YTD 2002 80 65.5 + 6% 70 60 52.5 48.1 49.5 HK$ Million 50 40 20.2 20.8 30 20 29.3 31.7 10 6.6 0 1999 Total 2000 Total 2001 Total Sep YTD Sep YTD 2001 2002

  9. Slide 9: Net Profit as % of Sales – 3rd Quarter 2002

    3rd Quarter 2002 Financial Results Highlights Net Profit as % of Sales – 3rd Quarter 2002 8% - 0.1% 7% 5.8% 5.7% 6% 5.0% 5% 4.2% 4% 3% 2% 0.7% 1% 0% 1999 Total 2000 Total 2001 Total 3rd Qtr 2001 3rd Qtr 2002

  10. Slide 10: Net Profit as % of Sales – Sep YTD 2002

    3rd Quarter 2002 Financial Results Highlights Net Profit as % of Sales – Sep YTD 2002 8% 7% 6% 5.0% 5.1% 5.1% 5% 4.2% 4% 3% 2% 0.7% 1% 0% 1999 Total 2000 Total 2001 Total Sep YTD Sep YTD 2001 2002

  11. Slide 11: Basic Earnings Per Share – 3rd Quarter 2002

    3rd Quarter 2002 Financial Results Highlights Basic Earnings Per Share – 3rd Quarter 2002 14 12 9.8 10.1 10 HK$ Cents 8 6 4 3.1 3.1 2 1.3 0 1999 Total 2000 Total 2001 Total 3rd Qtr 2001 3rd Qtr 2002

  12. Slide 12: Basic Earnings Per Share – Sep YTD 2002

    3rd Quarter 2002 Financial Results Highlights Basic Earnings Per Share – Sep YTD 2002 14 + 3% 12 9.8 10.1 10 7.9 HK$ Cents 7.7 8 6 3.1 3.1 4 2 1.3 4.6 4.8 0 1999 Total 2000 Total 2001 Total Sep YTD Sep YTD 2001 2002

  13. Slide 13: Why 3rd Quarter 2002 Favorable Results? Higher Gross Margin

    Why 3rd Quarter 2002 Favorable Results? Higher Gross Margin/Other Income 33% + 0.8% 32.3% 32% 31.6% 31.5% 31.0% 31% 30.4% 30% 1999 Total 2000 Total 2001 Total 3rd Qtr 2001 3rd Qtr 2002

  14. Slide 14: Offset By Higher Expenses as % of Sales

    Why 3rd Quarter 2002 Favorable Results? Offset By Higher Expenses as % of Sales Expenses as % of Sales 2002 vs 2001  Store Operating Expenses (0.7%) Higher  China Start-up Expenses (0.1%) Higher

  15. Slide 15: 3rd Quarter 2002 Financial Results Highlights

    3rd Quarter 2002 Financial Results Highlights 3rd Qtr 2001 3rd Qtr 2002 Group Turnover (HK$ Million) 350.4 366.8 + 5% Group Net Profit (HK$ Million) 20.2 20.8 + 3% Net profit as % of Sales 5.8% 5.7% - 0.1% Basic Earnings Per Store 3.1 Cents 3.1 Cents -

  16. Slide 16: Sep YTD 2002 Financial Results Highlights

    Sep YTD 2002 Financial Results Highlights Sep YTD 2001 Sep YTD 2002 Group Turnover (HK$ Million) 978.8 1,032.8 + 6% Group Net Profit (HK$ Million) 49.5 52.5 + 6% Net profit as % of Sales 5.1% 5.1% - Basic Earnings Per Store 7.7 Cents 7.9 Cents + 3%

  17. Slide 17: Update & 2002 Outlook

    (Convenience 5 Asia Update & 2002 Outlook

  18. Slide 18: Circle K Hong Kong – Retail Value Change

    Update & 2002 Outlook Circle K Hong Kong Hong Kong Retail Value Change Year-on-year % change  Rising Unemployment, 10% 7.2% Continuing Deflation, Declining Consumer Confidence 5% 0%  No Signs of Recovery -5% -3.7% -3.7% -4.1% -4.2%  Tough 4th Quarter 2002 -5.9% -7.7% -10% -11.8% -15% 1/02 2/02 3/

  19. Slide 19: Circle K Hong Kong – Store Growth

    Update & 2002 Outlook Circle K Hong Kong – Store Growth  Beginning of Year : 146  Opened So Far : + 11  Construction in Progress/ : +8 Committed Lease  Target Store Number : 170 at End of the Year

  20. Slide 20: Circle K Hong Kong Tactics

    Update & 2002 Outlook Circle K Hong Kong Tactics  Focus on Managing Pricing, Gross Profit & Controlling Expenses  Aggressive & Creative Promotions  Develop Fast-growth Product Categories – Food Services, Phone Cards and Store Services

  21. Slide 21: Circle K China

    Update & 2002 Outlook Circle K China  Obtained Business License  1st Store Ready, Official Opening – 17 November 2002  2nd Store Under Construction  Grand Opening – 14 December 2002

  22. Slide 22: To Summarise

    Update & 2002 Outlook To Summarise  Tough Hong Kong Market Slowing Profit Growth  About to Commence Business in Southern China  China Start-up Cost to Increase  4th Quarter Profit Growth Under Pressure  Fast Store Growth Starting in 2003

  23. Slide 23: Convenience Retail Asia Limited

    Convenience Retail Asia Limited HKRMA 2002 Best Under A Billion Superbrands Service & Courtesy 200 Companies Hong Kong 2002 Award for 2002

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