Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — FY2021 Earnings Presentation
35 slides from Convenience Retail Asia's earnings presentation, Mar 17, 2022
Slide 1: Convenience Retail Asia Limited 2021 Annual Results Announcement
Convenience Retail Asia Limited 2021 Annual Results Announcement 17 March 2022
Slide 2: Presentation Disclaimer
Presentation Disclaimer This Document (the “Document”) is for information purposes only. This Document is not intended to form the basis of any investment decision nor does it constitute a recommendation or advice as to how the reader should act on any matter. The information in this Document is an
Slide 3: At The Start Of 2021
At The Start Of 2021 Just completed the divestment of Circle K Convenience Store business Recorded HK$3.1 billion net profit for 2020 Paid back almost all net profit/ gain to investors Saint Honore, Zoff and Patisserie Mon cher brands with turnover of HK$1.1 billion & net profit of HK$61 mil
Slide 4: CRA Focus For 2021
CRA Focus For 2021 1. Smooth transition after divestment of Circle K 2. Be prepared for the COVID-19 disruptions 3. Scale up remaining brands faster 4. Prepare for expansion in the GBA 5. Expedite growth of stores network and online CRM platform 4
Slide 5: Agenda
Agenda 2021 Hong Kong Retail Market Key Highlight 2021 Operations & Financial Results Highlight 2022 Outlook Questions & Answers 5
Slide 6: Hong Kong Retail Market Key Highlight
HONG KONG RETAIL MARKET KEY HIGHLIGHT 6
Slide 7: 2021 Hong Kong Retail Sales
2021 Hong Kong Retail Sales YOY % Total Retail Sales Value & Volume Value Volume change 80 60 31.0 40 30.0 20.2 12.1 8.1 20.0 12.1 10.4 5.8 11.9 20 11.5 8.9 0.8 10.0 7.4 9.4 7.1 6.1 4.1 2.2 1.98.7 7.6 6.5 3.5 2.8 4.9 4.3 3.3 1.7 0 -20 -11.1 -13.7 -12.3 -14.0 -24.3 -40 -25.5 -60 2017 2018 2019 2020 2
Slide 8: MTR Latest Passenger Number
180,000 MTR Latest Passenger Number Dec YTD 2021 vs. 2020 : +24% 2021 vs. 2019: -9% 160,000 2021 vs. 2018: -15% 140,000 120,000 100,000 80,000 (unit in thousands) 60,000 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Year 2018 142,553 125,706 142,521 132,659 138,914 133,724 139,117 141,531 135,89
Slide 9: Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases
Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases *Included COVID-19 cases reported from PCR tests *Included COVID-19 cases reported from PCR & RAT tests Source: HK Centre for Health Protection Website 9
Slide 10: The 100th Saint Honore Store in Hong Kong
The 100th Saint Honore Store in Hong Kong 100th Saint Honore Store in Tin Wan opened on 30 Dec 2021 10
Slide 11: Modern & Warm 5G Stores
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Slide 12: Cake Easy exceeded 1,000,000 members
Cake Easy exceeded Macau Cake Easy Launched in September 2021 1,000,000 members O2O Lucky Draw e-Coupons e-Stamps 12
Slide 13: O2O Business Model
O2O Business Model Customer Buying Process Store Network Awareness Consideration Decision Traffic into stores Transaction Repeat 13
Slide 14: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience 14
Slide 15: 12th store in Yuen Long
12th store in Yuen Long Opened on 1 October 2021 15
Slide 16: 13th Store in Harbour City, Tsim Sha Tsui
13th Store in Harbour City, Tsim Sha Tsui Opened on 25 November 2021 16
Slide 17: New Collections & Services
New Collections & Services 17
Slide 18: Patisserie Mon cher Increased to 4 Stores
Patisserie Mon cher Increased to 4 Stores Mon cher shop at Mon cher shop at CitySuper Mon cher shop at CitySuper Mon cher shop AEON Sogo, Causeway Harbour City, Tism Sha Tsui New Town Plaza, Shatin STYLE, Mongkok Bay (opened on (opened on 1 Apr 2021) (opened on 15 Apr 2021) (opened on 1 Oct
Slide 19: Safety, Health & Wellness for Our People, Customers & Community
Strategies Dealing With Coronavirus Crisis Safety, Health & Wellness for Our People, Customers & Community Office Store 19
Slide 20: Sharing The Happiness With Our Community
Sharing The Happiness With Our Community Saint Honore donated over 6,000 boxes mooncake to elderlies and underprivileged families 20
Slide 21: CRA 2021 Operations Results In A Nutshell
CRA 2021 Operations Results In A Nutshell 1. Smooth transition after splitting CKHK from CRA 2. All business units, CKHK, SHHK, SH China, Zoff, Patisserie Mon cher, all thriving and growing 3. SHHK reached 1 million Cake Easy members and number of stores exceeded 100 for the first time 4. Zoff Hong
Slide 22: 2021 Financial Results Highlight
2021 FINANCIAL RESULTS HIGHLIGHT 22
Slide 23: Number of Stores
Number of Stores End of End of Opened Closed 2020 2021 Bakery Group 120 24 (4) 140 Saint Honore – Hong Kong 84 18 (2) 100 Saint Honore – Macau 9 1 - 10 Saint Honore – Guangzhou 26 1 (1) 26 Patisserie Mon cher 1 4 (1) 4 Zoff 11 2 - 13 CRA Group 131 26 (4) 153 23
Slide 24: Group Turnover
Group Turnover 2nd Half Full Year 1,000 +15.6% +14.3% 1,600 755 1,362 800 1,192 131 654 72 1,200 115 HK$ Million HK$ Million 600 57 800 400 683 1,231 597 1,077 200 400 0 0 2020 2021 2020 2021 Bakery Group Zoff Bakery Group Zoff 24
Slide 25: Group Gross Profit %
Group Gross Profit % 2nd Half Full Year 80 80 60 54.7 60 53.6 50.5 50.1 % of Turnover % of Turnover 40 40 20 20 0 0 2020 2021 2020 2021 25
Slide 26: Group Store Operating Expenses
Group Store Operating Expenses 2nd Half Full Year 50 50 -5.6% -5.6% 40 38.0 40 36.9 31.2 32.4 % of Turnover % of Turnover 30 30 20 20 10 10 0 0 2020 2021 2020 2021 26
Slide 27: Group Net Profit
Group Net Profit 2nd Half Full Year (HK$ Million) 2020 2021 2020 2021 Change Change Continuing Operations 55 57 5.1% 61 74 21.7% Discontinued Operation 3,003 - N/A 3,079 6 -99.8% Total Group Net Profit 3,058 57 -98.1% 3,140 80 -97.4% 27
Slide 28: 2021 Financial Results Highlight
2021 Financial Results Highlight 2020FY 2021FY Change Number of Stores 131 153 22 Group Turnover (HK$M) 1,192 1,362 14.3% Group Net Profit (HK$M) Continuing Operations 61 74 21.7% Included Discontinued Operation 3,140 80 -97.4% Net Profit as % of Turnover Continuing Operations 5.1% 5.5% 0.4% B
Slide 29: 2022 Outlook
2022 OUTLOOK 29
Slide 30: Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases
Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases *Included COVID-19 cases reported from PCR tests *Included COVID-19 cases reported from PCR & RAT tests Source: HK Centre for Health Protection Website 30
Slide 31: Impact Of The 5th Wave
Impact Of The 5th Wave The most disruptive Over 95% of staff vaccinated at beginning of February 2022 Demand for buns and breads continues to be strong Facing weekly disruptions in cross-border supply chain: Quarantine of cross-border drivers No import of reusable trays Compulsory use
Slide 32: CRA 2022 – Guiding Strategies
CRA 2022 – 7 Guiding Strategies 1. O2O Business Model & Doing It Right 2. People Development & Succession Planning 3. Adopt Easy, Fast, Simple & Safe (EFSS) in everything we do 4. Excellent Customer Intimacy & Customer Experience (CX) 5. Up-to-date, Relevant & Clearly Defined Brand Values 6. Always
Slide 33: CRA 2022 – Major Strategic Actions
CRA 2022 – 6 Major Strategic Actions 1. Scale up of both Saint Honore and Zoff business in Hong Kong / Macau market 2. In Greater Bay Area: Saint Honore Guangzhou as showcase city Experiment franchising of Saint Honore in one or two cities 3. Expand Saint Honore Manufacturing Shenzhen packaged b
Slide 34: 2022 Outlook
2022 Outlook 1. Strong January, disruptions in February, March & April 2. Expect businesses to get back to normal starting in May 3. Strong surge in H2 2022 due to delay in spending and effect of 2 waves of consumption vouchers by HKSAR Government 4. Grateful and confident that we should continue th
Slide 35: Thank You! Q&A
THANK YOU! & Q&A 35
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