Convenience Retail Asia Limited · HKEX:831

Convenience Retail Asia — FY2012 Earnings Presentation

32 slides from Convenience Retail Asia's earnings presentation, Mar 27, 2013

  1. Slide 1: Convenience Retail Asia Ltd 2012 Annual Results Announcement

    Convenience Retail Asia Ltd 2012 Annual Results Announcement 27 March 2013

  2. Slide 2: Agenda

    Agenda  Hong Kong & China Retail Markets Key Highlight  2012 Full Year Financial Results Highlights  2013 Update & Outlook  Questions & Answers 2

  3. Slide 3: Hong Kong & China Retail Markets Key Highlight

    Hong Kong & China Retail Markets Key Highlight 3

  4. Slide 4: Hong Kong Consumer Confidence Index

    Hong Kong Consumer Confidence Index  Hong Kong Consumer Confidence Index dropped 4 index points to 85 120 108 109 108 108 110 108 110 104 104 107 104 105 106 101 100 100 107 105 95 103 104 103 104 93 99 101 99 92 89 100 99 91 90 93 94 82 92 90 90 92 91 87 89 88 89 89 80 77 86 85 79 70 70 60 Q1 Q2 Q

  5. Slide 5: China Consumer Confidence Index

    China Consumer Confidence Index  Chinese consumer confidence remained relatively high throughout 2012, increasing by 2 points in Q4 to 108 Source: Nielsen China Consumer Confidence Survey 5

  6. Slide 6: China Consumer Confidence Index By City Tier

    China Consumer Confidence Index By City Tier  From quarterly perspective, Consumer Confidence Index in Tier 1 cities declined in Q4 but rebounded in Tier 2 cities Source: Nielsen China Consumer Confidence Survey 6

  7. Slide 7: Hong Kong & China Retail Sales Value

    Year-on-year % Change 12 16 20 0 4 8 201201 14.9 201202 15.6 201203 17.1 201204 11.4 201205 8.7 201206 11.0 201207 3.9 201208 4.6 201209 9.4 201210 3.9 201211 9.4 Hong Kong Total Retail Sales Value 2012 FY: + 9.8% 201212 9.1 Year-on-year % Change 0 4 8 12 16 20 Sources: Census and Statistics Departm

  8. Slide 8: Hong Kong & China Consumer Price Index

    Year-on-year % Change 0 1 2 3 4 5 6 7 201201 6.1 201202 4.7 201203 4.9 201204 4.7 201205 4.3 201206 3.7 201207 1.6 201208 3.7 Hong Kong CPI 201209 3.8 201210 3.8 201211 3.7 2012 FY: + 4.1% 201212 3.7 Year-on-year % Change 0 1 2 3 4 5 6 Sources: Census and Statistics Department HKSAR; National Bureau

  9. Slide 9: 2012 Key Highlight – Hong Kong & Macau

    2012 Key Highlight – Hong Kong & Macau  Decline in comparable store sales increase in 2H 2012  Rental has peaked yet still struggling with irrational rental increase for lease renewal  Labour cost especially for frontline staff still escalating due to low unemployment and effect of minimum wages

  10. Slide 10: Hong Kong Market New Products and Great Promotions

    Hong Kong Market New Products and Great Promotions 10

  11. Slide 11: 2012 Key Highlight – Southern China

    2012 Key Highlight – Southern China  Slow-down in consumer spending since October Golden Week Holiday  Drop in comparable store sales increase in 2H 2012  Rental and labour cost escalating as usual  Opened 21 Circle K stores and 23 Saint Honore stores, majority in 2H 2012 11

  12. Slide 12: Southern China Market New Products & Great Promotions

    Southern China Market New Products & Great Promotions 12

  13. Slide 13: Other Highlights

    Other Highlights  Saint Honore opened 2 new stores in the Shenzhen Market All City Shopping Center HaiYa Mega Mall 海雅繽紛城 寶能太古城花園購物中心 13

  14. Slide 14: Other Highlights

    Other Highlights 2012 Service & Courtesy Award Supervisory Level - CVS Category By HKRMA Service Retailer of the Year - CVS Category By HKRMA 2010 / 2011 / 2012 Yahoo! Emotion Brand Award By Yahoo! 2011-2012 14

  15. Slide 15: Other Highlights

    Other Highlights 2012 Service & Courtesy Award Supervisory Level - Food Shops Category By HKRMA TVB Weekly Superbrand 2012 Touch Brands 2012 By TVB Weekly Magazine By East Touch Magazine 15

  16. Slide 16: How Customers Shop

    www.fingershopping.com How Customers Shop Step 1 [Click] Step 2 [Pay] Step 3 [Pick] COD Pick up Web or App Pay Online Home

  17. Slide 17: RFRE ADRR

    RFRE ADRR Teaspoon Bt#Ss Teaspoon SERRE

  18. Slide 18: 2012 Full Year Financial Results Highlights

    2012 Full Year Financial Results Highlights 18

  19. Slide 19: Number of Stores

    Number of Stores End of Transfer End of Opened Closed 2011 from/(to) 2012 Circle K Hong Kong 324 19 (12) - 331 Circle K Southern China 66 21 (4) - 83  Guangzhou (owned) 59 18 (4) (3) 70  Guangzhou (franchised) 6 3 - 3 12  Shenzhen 1 - - - 1 Circle K Macau (franchised) 22 3 (2) - 23 Circle K Zhuha

  20. Slide 20: Group Turnover

    Group Turnover 2nd Half Full Year 6,000 6,000 + 7.5% + 7.8% 5,000 5,000 4,270.3* 3,972.6 3,972.6* 4,000 4,000 950.0 3,575.2 3,575.2 HK$ Million HK$ Million 885.0 3,000 3,000 2,085.9* 2,248.4* 2,000 481.5 520.0 2,000 3,387.7 3,155.5 1,000 1,762.7 1,000 1,638.9 0 0 2010FY 2011FY 2H2011 2H2012 2010FY 2

  21. Slide 21: Gross Profit & Other Income

    Gross Profit & Other Income 2nd Half Full Year 40 40 - 0.1% - 0.5% 38 38 36.9 36.9 36.8 36.9 36.5 0.2 36.5 0.6 36.4 % of Turnover % of Turnover 36 36 34 34 36.7 36.3 32 32 30 30 2010FY 2011FY 2H2011 2H2012 2010FY 2011FY 2012FY Cigarette one-off gain 21

  22. Slide 22: Store Operating Expenses

    Store Operating Expenses 2nd Half Full Year 28 28 25.9 25.7 25.8 25.7 25.9 26 26 25.7 25.7 % of Turnover % of Turnover 24 24 22 22 20 20 2010FY 2011FY 2H2011 2H2012 2010FY 2011FY 2012FY 22

  23. Slide 23: Group Net Profit

    Group Net Profit 2nd Half Full Year 200 250 + 20.2% + 9.1% 199.9 200 150 166.3 38.5 136.4 20.7 HK$ Million 150 HK$ Million 100 88.3 96.3 16.5 78.7 2.8 100 161.4 145.6 50 119.9 85.5 50 0 0 2H2010 2H2011 2H2012 2010FY 2011FY 2012FY One-off cigarette gain Property disposal gain 23

  24. Slide 24: Net Profit Breakdown By Market

    Net Profit Breakdown By Market (HK$ Million) 2nd Half Full Year 2011 2012 2011 2012 Hong Kong & Macau Markets 95.7 108.8 184.4 222.0 China Market (7.4) (12.5) (18.1) (22.1) CRA Group Total 88.3 96.3 166.3 199.9 24

  25. Slide 25: Net Profit as % of Turnover

    Net Profit as % of Turnover 2nd Half Full Year 6 6 +0.1% +0.5% 5 5 4.7 4.2 4.3 4.2 4.1 4 4 3.8 % of Turnover % of Turnover 3 3 2 2 1 1 0 0 2H2010 2H2011 2H2012 2010FY 2011FY 2012FY 25

  26. Slide 26: Basic Earnings Per Share

    Basic Earnings Per Share 2nd Half Full Year 25 35 +19.6% +8.4% 30 27.13 20 25 22.69 15 HK Cents 18.67 HK Cents 13.04 20 12.03 10.76 10 15 10 5 5 0 0 2H2010 2H2011 2H2012 2010FY 2011FY 2012FY 26

  27. Slide 27: 2012 Financial Results Highlights – 2nd Half

    2012 Financial Results Highlights – 2nd Half 2H2011 2H2012 Change Number of Stores 543 589 +46 stores Group Turnover (HK$M) 2,085.9 2,248.4 +7.8% Group Net Profit (HK$M) 88.3 96.3 +9.1% Net Profit as % of Turnover 4.2 4.3 +0.1% Basic Earnings Per Share (HK cents) 12.03 13.04 +8.4% 27

  28. Slide 28: 2012 Financial Results Highlights – Full Year

    2012 Financial Results Highlights – Full Year 2011FY 2012FY Change Number of Stores 543 589 +46 stores Group Turnover (HK$M) 3,972.6 4,270.3 +7.5% Group Net Profit (HK$M) 166.3 199.9 +20.2% Net Profit as % of Turnover 4.2 4.7 +0.5% Basic Earnings Per Share (HK cents) 22.69 27.13 +19.6% Dividends (HK

  29. Slide 29: 2013 Update & Outlook

    2013 Update & Outlook 29

  30. Slide 30: 2013 Update & Outlook

    2013 Update & Outlook  Very challenging 1H 2013 due to soft demands while operating expenses still escalating  Expect consumer sentiment to improve starting in 2H 2013  Consumers willing to accept reasonable price increases  Rental in Hong Kong is expected to drop when compared to Q4 2012 level

  31. Slide 31: To Summarize

    To Summarize  Satisfactory 2012 results  Very challenging 1H 2013  2H 2013 should improve  Sound strategies and actions to deal with volatile market conditions 31

  32. Slide 32: Thank You!

    Thank You! 32

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