Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2021 Earnings Presentation
29 slides from Convenience Retail Asia's earnings presentation, Aug 12, 2021
Slide 1: Convenience Retail Asia Limited 2021 Interim Results Announcement
Convenience Retail Asia Limited 2021 Interim Results Announcement 12 August 2021
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: CRA 2020 Excluding Discontinued Operation
CRA 2020 Excluding Discontinued Operation (After Completion of Sale of Circle K & Payment of Special Dividend) HK$1.2 Billion in Turnover HK$50 Million Net Profit Total Asset HK$1.35 Billion Total Equity of HK$580 Million, Liabilities of HK$770 Million 3
Slide 4: Agenda
Agenda Hong Kong Retail Market Key Highlight 2021 First Half Financial Results Highlight 2021 Outlook Questions & Answers 4
Slide 5: Hong Kong Retail Market Key Highlight
HONG KONG RETAIL MARKET KEY HIGHLIGHT 5
Slide 6: 2021 Hong Kong Retail Sales
2021 Hong Kong Retail Sales Total Retail Sales Value & Volume YOY % June YTD Value: 8.4% change 80 June YTD Volume: 7.1% 60 40 30.0 31.6 19.9 20.2 20 8.7 7.6 12.1 11.0 10.4 7.7 2.2 1.9 5.8 2.8 0 -20 -11.1 -13.7-14.6 -12.3 -24.3 -40 -25.5 -60 2017 2018 2019 2020 202101 202102 202103 202104 202105 202
Slide 7: COVID-19 Impact To Retailers
COVID-19 Impact To Retailers Retailing Format What Gains What Loses Food Non-Food Essential Discretionary Residential Commercial & Tourist Online Offline Delivery / Hygiene / Almost All Services Wellness / Health 7
Slide 8: MTR Latest Passenger Number
MTR Latest Passenger Number 200,000 June YTD Domestic Service Monthly Total 2021 vs. 2020 : +17% 180,000 2020 vs. 2019: -33% 160,000 148,219 144,919 2019 vs. 2018: +2% 142,502 132,315 135,990 138,219 130,922 140,000 126,288 126,948 123,107 116,523 114,487 111,075 117,755 118,153 113,558 114,346 120,
Slide 9: 7 Guiding Strategies
7 Guiding Strategies 1. O2O Business Model & Doing It Right 2. Adopt Easy, Fast, Simple & Safe (EFSS) in everything we do 3. Excellent Customer Intimacy & Customer Experience (CX) 4. Up-to-date, Relevant & Clearly Defined Brand Values 5. Always Reinventing 6. People Development & Succession Planning
Slide 10: The Importance Of Re-invention
The Importance Of Re-invention 10
Slide 11: 2021H1 Actions
2021H1 Actions Speeded up opening, renovation and improved execution of Saint Honore stores in Hong Kong & Macau Launched Cake Easy 2.0 Opening of Mon cher stores Started B2B collaboration with a major supermarket chain Expansion of Saint Honore Manufacturing capacity in bread/ buns Sain
Slide 12: Saint Honore Opened 4 New Stores
Saint Honore Opened 4 New Stores Opened store at Pak Tai Street , Opened store at Pak Shing Bldg. , Opened store at Fortune Opened store Shek Yam To Kwa Wan on 4 May 2021 Jordan on 19 June 2021 Kingswood, Tin Shui Wai on Shopping Centre, Kwai Chung 24 June 2021 on 19 July 2021 12
Slide 13: Cake Easy 2.0
Cake Easy 2.0 O2O Lucky Draw Cake Easy exceeded 890,000 members e-Coupons e-Stamps 13
Slide 14: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience 14
Slide 15: Mon cher Opened 3 New Stores
Mon cher Opened 3 New Stores Opened a pop-up store at Opened the 3rd Mon cher shop Opened the 4th Mon cher shop Langham Place in Mongkok at City’super Harbour City, Tism at City’super New Town Plaza, on 15 March 2021 Sha Tsui on 1 April 2021 Shatin on 15 April 2021 15
Slide 16: New Collections & Services
New Collections & Services 16
Slide 17: 2021 First Half Financial Results Highlight
2021 FIRST HALF FINANCIAL RESULTS HIGHLIGHT 17
Slide 18: Number of Stores
Number of Stores End of 1H2020 Opened Closed 1H2021 2020 Bakery Group 125 120 6 (1) 125 Saint Honore – HK & Macau 98 93 3 (1) 95 Saint Honore – China 27 26 - - 26 Mon cher - 1 3 - 4 Zoff 11 11 - - 11 CRA Group 136 131 6 (1) 136 18
Slide 19: Group Turnover
Group Turnover 800 +12.7% 607 600 539 59 58 HK$ Million 400 481 548 200 0 2020 2021 Bakery Group Zoff 19
Slide 20: Group Gross Profit % of Turnover
Group Gross Profit % 80 60 52.2 49.7 % of Turnover 40 20 0 2020 2021 20
Slide 21: Group Store Operating Expenses % of Turnover
Group Store Operating Expenses 50 -5.6% 39.4 40 33.8 % of Turnover 30 20 10 0 2020 2021 21
Slide 22: Group Net Profit
Group Net Profit (HK$ Million) 1H2020 1H2021 Change Continuing Operations 6 17 161.7% Discontinued Operation 76 6 -92.1% Total Group Net Profit 82 23 -72.1% 22
Slide 23: 1H2021 Financial Results Highlight
1H2021 Financial Results Highlight 1H2020 1H2021 Change Number of Stores 136 136 0 Group Turnover (HK$M) 539 607 12.7% Group Net Profit (HK$M) - Continuing Operations 6 17 161.7% - Included Discontinued Operation 82 23 -72.1% Net Profit as % of Turnover - Continuing Operations 1.2% 2.8% 1.6% - Inclu
Slide 24: 2021 Outlook
2021 OUTLOOK 24
Slide 25: 8 Trends That Will Define 2021 & Beyond
8 Trends That Will Define 2021 & Beyond 1. Innovation 2. Shifts in customer behavior 3. Environment 4. Healthcare 5. Importance of right involvement of the government 6. Impact to traditional business models 7. Travel 8. Shifting supply chains Source: McKinsey 25
Slide 26: 2021 Remaining Months Outlook
2021 Remaining Months Outlook The COVID-19 will continue to disrupt Hong Kong for most of 2021 Potential of another wave caused by Delta variant With warmer weather and vaccinations, overall situation will continue to be stable and Hong Kong should enjoy a much-needed break before Q4 2021 So
Slide 27: 2021H2 Actions
2021H2 Actions Leases committed to open 12+1 Saint Honore stores in Hong Kong & Macau Renovation and improved execution of Saint Honore stores in Hong Kong & Macau Expansion of Saint Honore Manufacturing capacity in bread/ buns Target to open 2 Zoff Hong Kong stores & 2 Mon cher stores Pre
Slide 28: CRA 2021 & Beyond To Conclude
CRA 2021 & Beyond To Conclude Post-COVID 19 new normal comes with new challenges and new opportunities Massive changes in customer behavior We need to reinvent ourselves to keep up-to-date and relevant with our customers Speed up growth of profitable businesses in Hong Kong & Macau Prepara
Slide 29: Thank You!
THANK YOU ! 29
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