Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — FY2017 Earnings Presentation

37 slides from Convenience Retail Asia's earnings presentation, Mar 7, 2018

  1. Slide 1: Convenience Retail Asia Limited 2017 Annual Results Announcement

    Convenience Retail Asia Limited 2017 Annual Results Announcement 7 March 2018

  2. Slide 2: Agenda

    Agenda  Hong Kong Retail Market Key Highlight  2017 Financial Results Highlight  2018 Outlook  Question & Answer 2

  3. Slide 3: Hong Kong Retail Market Key Highlight

    HONG KONG RETAIL MARKET KEY HIGHLIGHT 3

  4. Slide 4: Hong Kong Retail Market

    Hong Kong Retail Market Total Retail Sales Value & Volume Supermarkets Sales Value & Volume 9 10 5 6 4.6 2.2 1.9 Year-on-year % change Year-on-year % change 3 1.3 0 1.0 0.8 -0.2 -0.2 -5 -1.5 0 -3.7 -0.2 -0.7 -0.8 -8.1 -7.1 -10 -3 -2.0 -15 -6 2014 2015 2016 2017 2014 2015 2016 2017 Value Voulme Value

  5. Slide 5: Hong Kong Retail Market

    Hong Kong Retail Market South China Morning Post HK Economic Times 20/2/2018 Sing Pao Daily News 27/12/2017 2/3/2018 Sing Pao Daily News 31/12/2017 HK Economic Times 2/2/2018 5

  6. Slide 6: The 3 "Plus" Strategies

    The 3 “Plus” Strategies ASN Fun & “Internet+” Novelty Customer 1. Focus on “Internet Plus” customers 2. Deliver “4P’s Plus” relevant customer experience 3. Transition to “B&M Plus” (O2O) business models Copyright © Circle K Convenience Stores (HK) Limited 6

  7. Slide 7: 3 "Plus" Strategies Driving Growth

    3 “Plus” Strategies Driving Growth 7

  8. Slide 8: OK Stamp It – Customer Engagement Tools

    OK Stamp It – Customer Engagement Tools 2. For Fun 3. Social 4. e-Gift 5. Customer 6. O2O 1. For Value Sharing Coupon Experience Lucky Draw Copyright © Circle K Convenience Stores (HK) Limited 8

  9. Slide 9: O2O Shake Shake Lucky Star

    O2O Shake Shake Lucky Star Copyright © Circle K Convenience Stores (HK) Limited 9

  10. Slide 10: OK Stamp It – KPIs

    0 1,000,000 200,000 400,000 600,000 800,000 23/06/2016 06/07/2016 19/07/2016 01/08/2016 14/08/2016 27/08/2016 09/09/2016 22/09/2016 05/10/2016 Copyright © Circle K Convenience Stores (HK) Limited 18/10/2016 Promotion Monchhichi 31/10/2016 13/11/2016 26/11/2016 09/12/2016 22/12/2016 04/01/2017 17/01/

  11. Slide 11: OK Stamp It Won Multiple Awards

    OK Stamp It Won Multiple Awards Best (Top 1) 2017Q1 Ads Leaderboard Octopus Partner Awards 2016 Circle K Pokémon Video for 「OK齊齊印」app - The Octopus Innovation Award Best of 2016 Ads Leaderboard DoReMi Monchhichi Golden Globe Tigers 2017 Awards Marketing Magazine - Mob-Ex Awards 2017 Best App – “Cons

  12. Slide 12: Re-inventing Strategy Lifting Customer Experience

    Re-inventing Strategy Lifting Customer Experience >340,000 Members 13

  13. Slide 13: Circle K Hong Kong Won 2017 Service and Courtesy Award By HKRMA

    Circle K Hong Kong Won 2017 Service and Courtesy Award By HKRMA 14

  14. Slide 14: Fast Fashion Eyewear Chain from Japan

    Fast Fashion Eyewear Chain from Japan Business Introduction • Japan Quality • Always Fresh / Fast Service • Value for Money

  15. Slide 15: Japan Quality

    Japan Quality Amazing Zoff SMART – Parts used in Hakuto’s lunar rover are made from Ultem, the same materials used in Zoff SMART. 16

  16. Slide 16: Always Fresh

    Always Fresh New glasses, new mood, “Enjoy Your Glasses” 17

  17. Slide 17: Fast Services (30 mins)

    Fast Services (30 mins) 18

  18. Slide 18: Value For Money

    Value For Money HKS480 Cs= = HKS$1080 19

  19. Slide 19: The First Store In Hong Kong

    The First Store In Hong Kong City Plaza, Taikoo (opened 25th November 2017) 20

  20. Slide 20: The First Store In Hong Kong

    The First Store In Hong Kong City Plaza, Taikoo (opened 25th November 2017) 21

  21. Slide 21: The Second Store In Hong Kong

    The Second Store In Hong Kong Telford Plaza, Kowloon Bay (opened 23rd February 2018) 22

  22. Slide 22: The Second Store In Hong Kong

    The Second Store In Hong Kong Telford Plaza, Kowloon Bay (opened 23rd February 2018) 23

  23. Slide 23: 2017 Financial Results Highlight

    2017 FINANCIAL RESULTS HIGHLIGHT 24

  24. Slide 24: Number of Stores

    Number of Stores End of End of Opened Closed 2016 2017 Circle K Hong Kong 331 10 (9) 332 Circle K Guangzhou (franchised) 71 4 (11) 64 Circle K Macau (franchised) 30 2 (3) 29 Circle K Zhuhai (franchised) 16 4 (4) 16 Saint Honore HK & Macau 98 13 (9) 102 Saint Honore Southern China 41 8 (8) 41 Zoff Ho

  25. Slide 25: Group Turnover

    Group Turnover 2nd Half Full Year 4,000 +5.3% 7,000 +4.6% 6,000 4,871* 5,094* 3,000 2,532* 2,667* 5,000 1,072 1,092 HK$ Million HK$ Million 576 601 4,000 2,000 3,000 1,000 1,991 2,106 2,000 3,871 4,077 1,000 0 0 2016 2017 2016 2017 Circle K Saint Honore Circle K Saint Honore ∗ Less inter-group sales

  26. Slide 26: Gross Profit & Other Income

    Gross Profit & Other Income 2nd Half Full Year 40 40 38 37.2 37.5 38 36.6 36.9 % of Turnover % of Turnover 36 36 34 34 32 32 30 30 2016 2017 2016 2017 27

  27. Slide 27: Group Store Operating Expenses

    Group Store Operating Expenses 2nd Half Full Year 30 30 +0.3% +0.1% 28 28 26.1 26.4 26.2 26.3 % of Turnover % of Turnover 26 26 24 24 22 22 20 20 2016 2017 2016 2017 28

  28. Slide 28: Group Net Profit

    Group Net Profit 2nd Half Full Year 150 +6.1% 200 +7.7% 150 150 140 HK$ Million HK$ Million 100 88 93 100 50 50 0 0 2016 2017 2016 2017 29

  29. Slide 29: Net Profit by Market

    Net Profit by Market (HK$ Million) Full Year 2016 2017 Change Hong Kong & Macau Markets 162 169 +4.2% Southern China Market (2) (5) -1.x% e-commerce Group (20) (14) +34.3% CRA Group Net Profit 140 150 +7.7% 30

  30. Slide 30: Group Net Profit as % of Turnover

    Group Net Profit as % of Turnover 2nd Half Full Year 5 6 0% +0.1% 5 4 3.5 2.9 3.0 3.5 % of Turnover % of Turnover 4 3 3 2 2 1 1 0 0 2016 2017 2016 2017 31

  31. Slide 31: Basic Earnings Per Share

    Basic Earnings Per Share 2nd Half Full Year 16 +5.1% 27 +6.8% 14 24 11.63 12.22 21 19.75 12 18.50 18 HK Cents HK Cents 10 15 8 12 6 9 4 6 2 3 0 0 2016 2017 2016 2017 32

  32. Slide 32: 2017 Financial Results Highlight – 2nd Half

    2017 Financial Results Highlight – 2nd Half 2H2016 2H2017 Change Number of Stores 582 585 +3 Group Turnover (HK$M) 2,532 2,667 +5.3% Group Net Profit (HK$M) 88 93 +6.1% Net Profit as % of Turnover 3.5% 3.5% - Basic Earnings Per Share (HK cents) 11.63 12.22 5.1% 33

  33. Slide 33: 2017 Financial Results Highlight – Full Year

    2017 Financial Results Highlight – Full Year 2016FY 2017FY Change Number of Stores 587 585 -2 Group Turnover (HK$M) 4,871 5,094 +4.6% Group Net Profit (HK$M) 140 150 +7.7% Net Profit as % of Turnover 2.9% 3.0% +0.1% Basic Earnings Per Share (HK cents) 18.50 19.75 +6.8% Dividends (HK cents)  Interim

  34. Slide 34: 2018 Outlook

    2018 OUTLOOK 35

  35. Slide 35: 2018 Outlook

    2018 Outlook  Stagnant demand for Hong Kong consumers  Drastic shortage of frontline labour  Aggressive landlords  O2O retailing is the future  The importance of EFS (Easy, Fast & Simple) 36

  36. Slide 36: The Future Is Bright & Clear

    The Future Is Bright & Clear ASN Fun & “Internet+” Novelty Customer Quality & Profitable Growth Copyright © Circle K Convenience Stores (HK) Limited 37

  37. Slide 37: Thank You!

    THANK YOU ! 38

Convenience Retail Asia — FY2017 Earnings Presentation on 6ix