Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — Q2 2002 Earnings Presentation

22 slides from Convenience Retail Asia's earnings presentation, Jul 29, 2002

  1. Slide 1: 2nd Quarter 2002 Results Presentation

    2nd Quarter 2002 Results Presentation A member of the Li & Fung (Retailing) Group CRA Website: www.cr-asia.com 29 July 2002

  2. Slide 2: Agenda

    2nd Quarter 2002 Results Presentation Age nda  2nd Quarter 2002 Financial Results Highlights  2002 Update & Outlook  Questions & Answers 2

  3. Slide 3: Group Turnover – 2nd Quarter 2002

    2nd Quarter 2002 Financial Results Highlights Group Turnover – 2nd Quarter 2002 HK$ Million 1,500 1,305.1 1,140.7 972.9 1,000 + 5% 500 326.5 343.4 0 1999 Total 2000 Total 2001 Total 2nd Qtr 2nd Qtr 2001 2002 No. of Stores: 114 123 146 132 151 3

  4. Slide 4: 121 Stores Comparative Sales

    2nd Quarter 2002 Financial Results Highlights 121 Stores Comparative Sales HK$ Million - 6% 400 309.3 290.3 300 200 100 0 2nd Qtr 2001 2nd Qtr 2002 4

  5. Slide 5: Group Turnover – June YTD 2002

    2nd Quarter 2002 Financial Results Highlights Group Turnover – June YTD 2002 HK$ Million 1,500 1,305.1 1,140.7 + 6% 972.9 1,000 628.4 666.0 500 326.5 343.4 301.9 322.6 0 1999 Total 2000 Total 2001 Total June YTD June YTD 2001 2002 No. of Stores: 114 123 146 132 151 5

  6. Slide 6: Group Net Profit – 2nd Quarter 2002

    2nd Quarter 2002 Financial Results Highlights Group Net Profit – 2nd Quarter 2002 HK$ Million 80 65.5 70 60 48.1 50 + 9% 40 30 19.8 18.1 20 6.6 10 0 1999 Total 2000 Total 2001 Total 2nd Qtr 2nd Qtr 2001 2002 6

  7. Slide 7: Group Net Profit – June YTD 2002

    2nd Quarter 2002 Financial Results Highlights Group Net Profit – June YTD 2002 HK$ Million 80 70 65.5 60 48.1 + 8% 50 40 31.8 29.3 30 19.8 20 18.1 6.6 10 11.2 12.0 0 1999 Total 2000 Total 2001 Total June YTD June YTD 2001 2002 7

  8. Slide 8: Net Profit as % of Sales – 2nd Quarter 2002

    2nd Quarter 2002 Financial Results Highlights Net Profit as % of Sales – 2nd Quarter 2002 8% + 0.3% 7% 5.8% 6% 5.5% 5.0% 5% 4.2% 4% 3% 2% 0.7% 1% 0% 1999 Total 2000 Total 2001 Total 2nd Qtr 2nd Qtr 2001 2002 8

  9. Slide 9: Net Profit as % of Sales – June YTD 2002

    2nd Quarter 2002 Financial Results Highlights Net Profit as % of Sales – June YTD 2002 8% + 0.1% 7% 6% 5.0% 4.7% 4.8% 5% 4.2% 4% 3% 2% 0.7% 1% 0% 1999 Total 2000 Total 2001 Total June YTD June YTD 2001 2002 9

  10. Slide 10: Basic Earnings Per Share – 2nd Quarter 2002

    2nd Quarter 2002 Financial Results Highlights Basic Earnings Per Share – 2nd Quarter 2002 HK$ Cents 12 9.8 10.1 10 + 7% 8 6 4 2.8 3.0 1.3 2 0 1999 Total 2000 Total 2001 Total 2nd Qtr 2nd Qtr 2001 2002 10

  11. Slide 11: Basic Earnings Per Share – June YTD 2002

    2nd Quarter 2002 Financial Results Highlights Basic Earnings Per Share – June YTD 2002 HK$ Cents 12 9.8 10.1 10 + 4% 8 6 4.6 4.8 4 2.8 3.0 2 1.3 1.8 1.8 0 1999 Total 2000 Total 2001 Total June YTD June YTD 2001 2002 11

  12. Slide 12: Why 2nd Quarter 2002 Favorable Results? Higher Gross Margin/Other Income

    Why 2nd Quarter 2002 Favorable Results? Higher at Gross Margin/Other Income Gross Margin/Other Income as % of Sales + 1.9% 34% 33.2% 31.6% 32% 31.3% 31.0% 30.4% 30% 28% 1999 Total 2000 Total 2001 Total 2nd Qtr 2nd Qtr 2001 2002 12

  13. Slide 13: Why 2nd Quarter 2002 Favorable Results? Offset By Higher Expenses

    Why 2nd Quarter 2002 Favorable Results? Offset By Higher Expenses as % of Sales Expenses as % of Sales 2002 vs 2001  Store Operating Expenses (1.2%) High er  China Start-up Expenses (0.1%) High er 13

  14. Slide 14: 2nd Quarter 2002 Financial Results Highlights

    2nd Quarter 2002 Financial Results Highlights 2nd Qtr 2001 2nd Qtr 2002 Group Turnover (HK$ Million) $326.5$343.4 + 5% Group Net Profit (HK$ Million) $18.1 $19.8 + 9% Net Profit as % of Turnover 5.5%5.8% + 0.3% Basic Earnings Per Share 2.8 Cents3.0 Cents + 7% 14

  15. Slide 15: June YTD 2002 Financial Results Highlights

    June YTD 2002 Financial Results Highlights June YTD 2001 June YTD 2002 Group Turnover (HK$ Million) $628.4$666.0 + 6% Group Net Profit (HK$ Million) $29.3 $31.8 + 8% Net Profit as % of Turnover 4.7%4.8% + 0.1% Basic Earnings Per Share 4.6 Cents4.8 Cents + 4% 15

  16. Slide 16: 2002 Update & Outlook

    (Convenience 5 Asia 2002 Update & Outlook 16

  17. Slide 17: Circle K Hong Kong

    2002 Update & Outlook Circle K Hong Kong  Rising Unemployment, Continuing Deflation, Declining Consumer Confidence  No Signs of Recovery  Tough 2nd Half 2002 17

  18. Slide 18: Circle K Hong Kong – Store Growth

    2002 Update & Outlook Circle K Hong Kong – Store Growth  Beginning of Year : 146  Opened So Far : +5  In Progress : +10  Target Store Number : 170 at End of the Year 18

  19. Slide 19: Circle K Hong Kong Tactics

    2002 Update & Outlook Circle K Hong Kong Tactics  Focus on Managing Pricing, Gross Profit & Controlling Expenses  Aggressive Promotions Targeted at Youngsters  Develop Fast-growth Product Categories – Food Services, Phone Cards and Store Services 19

  20. Slide 20: Circle K China

    2002 Update & Outlook Circle K China  Notification of Approval from Beijing SETC, MOFTEC & SAIC  Awaiting Written Approval  Taking Possession of Sites in August  Very Likely Store Openings in Sep/Oct 2002 20

  21. Slide 21: To Summarise

    2002 Update & Outlook To Summarise  Tough Hong Kong Market Slowing Profit Growth  About to Commence Business in Southern China  China Start-up Cost to Increase  Volatility in Rate of Profit Growth in 2nd Half 2002 21

  22. Slide 22: 2nd Quarter 2002 Results Presentation

    2nd Quarter 2002 Results Presentation A member of the Li & Fung (Retailing) Group CRA Website: www.cr-asia.com 29 July 2002

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