Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — Q2 2004 Earnings Presentation
24 slides from Convenience Retail Asia's earnings presentation, Aug 4, 2004
Slide 1: 2nd Quarter 2004 Results Presentation
2 Quarter 2004 nd Results Presentation A member of the Li & Fung (Retailing) Group 4 August 2004
Slide 2: Hong Kong Total Retail Sales Value
Hong Kong Total Retail Sales Value Year-on-year % Change 25 Overall Jan - May 2004: +14% 20 Supermarket: -1.9% 15 10 % Change 5 0 -5 -10 -15 -20 01/03 02/03 03/03 04/03 05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 01/04 02/04 03/04 04/04 05/04 Source: Census and Statistics Department, HKSAR 2
Slide 3: Guangzhou Total Retail Sales Value
Guangzhou Total Retail Sales Value Year-on-year % Change 16 Overall Jan – June 2004: +13% 14 12 10 % Change 8 6 4 2 0 01/03 02/03 03/03 04/03 05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 01/04 02/04 03/04 04/04 05/04 06/04 Source: Bureau of Statistics, Guangzhou 3
Slide 4: Agenda
2nd Quarter 2004 Results Presentation Agenda 2nd Quarter 2004 Financial Results Highlights 2004 Outlook & Update Questions & Answers 4
Slide 5: Group Turnover – 2nd Quarter
2004 Financial Results Highlights Group Turnover – 2nd Quarter 2,000 1,526.1 1,393.5 1,500 + 15% HK$ Million 1,000 377.6 432.8 500 0 2002 2003 2nd Qtr 2003 2nd Qtr 2004 No. of store – HK 166 186 172 192 No. of store - China 2 7 4 12 5
Slide 6: Comparable Stores Sales – 2nd Quarter
2004 Financial Results Highlights 164 Comparable Stores Sales – 2nd Quarter 400 + 3.4% 380.5 380 367.9 HK$ Million 360 340 320 300 2nd Qtr 2003 2nd Qtr 2004 6
Slide 7: Great Promotions
Great Promotions Lucky Star Promotion Student Loyalty Promotion 7
Slide 8: Group Turnover – June YTD
2004 Financial Results Highlights Group Turnover – June YTD 2,000 1,526.1 + 15% 1,393.5 1,500 HK$ Million 1,000 836.5 727.2 403.7 500 349.6 377.6 432.8 0 2002 2003 June YTD June YTD 2003 2004 No. of store – HK 166 186 172 192 No. of store - China 2 7 4 12 8
Slide 9: Improvement in Gross Margin / Other Income
Improvement in Gross Margin / Other Income Gross Margin/Other Income as % of Sales (Excluding Interest) 36% + 1.4% 35% 34% 33.6% % of Sales 32.8% 32.6% 33% 32.2% 32% 31% 30% 2002 2003 2nd Qtr 2003 2nd Qtr 2004 9
Slide 10: Upward Pressure on Store Operating Expenses
Upward Pressure on Store Operating Expenses 30% 22.7% 23.3% 23.9% 25% 22.1% 20% % of Sales 15% 10% 5% 0% 2002 2003 2nd Qtr 2003 2nd Qtr 2004 10
Slide 11: Group Net Profit – 2nd Quarter
2004 Financial Results Highlights Group Net Profit – 2nd Quarter 70 60.4 60.7 60 50 + 11% HK$ Million 40 30 16.6 18.4 20 10 0 2002 2003 2nd Qtr 2003 2nd Qtr 2004 11
Slide 12: Group Net Profit – June YTD
2004 Financial Results Highlights Group Net Profit – June YTD 70 60.4 60.7 60 + 13% 50 HK$ Million 40 26.9 30 23.8 8.5 20 7.2 10 16.6 18.4 0 2002 2003 June YTD June YTD 2003 2004 12
Slide 13: Net Profit as % of Sales – 2nd Quarter
2004 Financial Results Highlights Net Profit as % of Sales – 2nd Quarter 6% 5% 4.3% 4.4% 4.2% 4.0% 4% % of Sales 3% 2% 1% 0% 2002 2003 2nd Qtr 2003 2nd Qtr 2004 13
Slide 14: Net Profit as % of Sales – June YTD
2004 Financial Results Highlights Net Profit as % of Sales – June YTD 6% 5% 4.3% 4.0% 4% 3.3% 3.2% % of Sales 3% 2% 1% 0% 2002 2003 June YTD June YTD 2003 2004 14
Slide 15: Net Profit by Market
Net Profit by Market 2nd Qtr 2003 2nd Qtr 2004 Changes (HK$ M) (HK$ M) (HK$ M) Hong Kong Market 18.7 20.9 + 2.2 China Market (2.1) (2.5) - 0.4 Total 16.6 18.4 + 1.8 15
Slide 16: Basic Earnings Per Share – 2nd Quarter
2004 Financial Results Highlights Basic Earnings Per Share – 2nd Quarter 10 9.1 9.1 8 + 0.2 Cent 6 HK Cents 4 2.7 2.5 2 0 2002 2003 2nd Qtr 2003 2nd Qtr 2004 16
Slide 17: Basic Earnings Per Share – June YTD
2004 Financial Results Highlights Basic Earnings Per Share – June YTD 10 9.1 9.1 8 + 0.4 Cent HK Cents 6 3.6 4.0 4 1.1 1.3 2 2.5 2.7 0 2002 2003 June YTD June YTD 2003 2004 17
Slide 18: 2nd Quarter 2004 Financial Results Highlights
2nd Quarter 2004 Financial Results Highlights 2nd Qtr 2003 2nd Qtr 2004 % Change Group Turnover (HK$ 377.6 432.8 + 15% Million) Group Net Profit (HK$ 16.6 18.4 + 11% Million) Net Profit as % of Sales 4.4% 4.2% - 0.2% Basic Earnings Per Share 2.5 Cents 2.7 Cents + 0.2 Cent Interim Dividend 1 Cent 1.2
Slide 19: Year-On-Year Quarterly Profitability Growth
Year-On-Year Quarterly Profitability Growth 30 28* 20 17 11 9* 9 10 7 4* 2* % Change 2 0 -10 -20 -27 -30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised) 1
Slide 20: Update & Outlook
2004 Update & Outlook 20
Slide 21: Circle K Hong Kong – Quality Growth
2004 Update & Outlook Circle K Hong Kong – Quality Growth Consumer sentiment continues to improve gradually Easing deflation and unemployment Upward pressure on rental Maintain quality growth strategy Existing number of stores: 193 Committed / In progress: 11 Forecast – end of 2004: 210 21
Slide 22: Circle K China
2004 Update & Outlook Circle K China Stores sales and P&L continue to improve Existing number of stores: 13 Committed / In progress: 3 Forecast – End of 2004: 30 Speed up growth: Organic growth – Doing it right Entry into other cities Aggressive growth strategies to come 22
Slide 23: To Summarize
2004 Update & Outlook To Summarize Hong Kong market improving gradually Rental cost is a concern China market – expansion strategy instead of P&L issue Ready for aggressive growth Customer brand preference, comparable store sales and profitability expected to continue trends of first half
Slide 24: 2nd Quarter 2004 Results Presentation
2 Quarter 2004 nd Results Presentation A member of the Li & Fung (Retailing) Group 4 August 2004
Convenience Retail Asia — Q2 2004 Earnings Presentation on 6ix