convenience retail asia limited 2017 annual results...
TRANSCRIPT
![Page 1: Convenience Retail Asia Limited 2017 Annual Results ...file.irasia.com/listco/hk/cra/cpresent/pre180307.pdf · 2014 2015 2016 2017 Total Retail Sales Value & Volume Value Voulme 4.6](https://reader033.vdocuments.us/reader033/viewer/2022052002/60156a9e66ddea2bdd2f03e3/html5/thumbnails/1.jpg)
Convenience Retail Asia Limited 2017 Annual Results Announcement
7 March 2018
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Agenda
Hong Kong Retail Market Key Highlight
2017 Financial Results Highlight
2018 Outlook
Question & Answer
2
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HONG KONG RETAIL MARKET KEY HIGHLIGHT
3
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Hong Kong Retail Market
4 Source: Census & Statistics Department HKSAR
-0.2 -3.7
-8.1
2.2
-0.2 -1.5
-7.1
1.9
-15
-10
-5
0
5
10 20
14
2015
2016
2017
Total Retail Sales Value & Volume
Value Voulme
4.6
1.3 0.8
-0.2
1.0
-0.7 -0.8 -2.0
-6
-3
0
3
6
9
2014
2015
2016
2017
Value Volume
Year
-on-
year
% c
hang
e
Year
-on-
year
% c
hang
e
Supermarkets Sales Value & Volume
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Hong Kong Retail Market
5
South China Morning Post 2/3/2018
HK Economic Times 2/2/2018
HK Economic Times 20/2/2018 Sing Pao Daily News 27/12/2017
Sing Pao Daily News 31/12/2017
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The 3 “Plus” Strategies
6
1. Focus on “Internet Plus” customers 2. Deliver “4P’s Plus” relevant customer experience 3. Transition to “B&M Plus” (O2O) business models
ASN Fun & Novelty “Internet+”
Customer
Copyright © Circle K Convenience Stores (HK) Limited
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7
3 “Plus” Strategies Driving Growth
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8
OK Stamp It – Customer Engagement Tools
1. For Value 2. For Fun 3. Social Sharing
4. e-Gift Coupon
5. Customer Experience
6. O2O Lucky Draw
Copyright © Circle K Convenience Stores (HK) Limited
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O2O Shake Shake Lucky Star
9 Copyright © Circle K Convenience Stores (HK) Limited
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11
OK Stamp It – KPIs
Monchhichi Promotion
Member Recruitment
Pokémon Promotion
Member Recruitment
Member Recruitment
Gudetama Promotion
Copyright © Circle K Convenience Stores (HK) Limited
0
200,000
400,000
600,000
800,000
1,000,000
23/0
6/20
16
06/0
7/20
16
19/0
7/20
16
01/0
8/20
16
14/0
8/20
16
27/0
8/20
16
09/0
9/20
16
22/0
9/20
16
05/1
0/20
16
18/1
0/20
16
31/1
0/20
16
13/1
1/20
16
26/1
1/20
16
09/1
2/20
16
22/1
2/20
16
04/0
1/20
17
17/0
1/20
17
30/0
1/20
17
12/0
2/20
17
25/0
2/20
17
10/0
3/20
17
23/0
3/20
17
05/0
4/20
17
18/0
4/20
17
01/0
5/20
17
14/0
5/20
17
27/0
5/20
17
09/0
6/20
17
22/0
6/20
17
05/0
7/20
17
18/0
7/20
17
31/0
7/20
17
13/0
8/20
17
26/0
8/20
17
08/0
9/20
17
21/0
9/20
17
04/1
0/20
17
17/1
0/20
17
30/1
0/20
17
12/1
1/20
17
25/1
1/20
17
08/1
2/20
17
21/1
2/20
17
03/0
1/20
18
16/0
1/20
18
29/0
1/20
18
11/0
2/20
18
>1 Million
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OK Stamp It Won Multiple Awards
12
Marketing Magazine
- Mob-Ex Awards 2017 Best App – “Consumer Brand” &
“Most Responsive Mobile Campaign” - Marketing’s inaugural eCommAs Awards 2017
Best of Show - Brand Gold for Best Customer Retention Programme
Gold for Best Omni-Channel Process Gold for Best E-Commerce Campaign
Bronze for Best User Experience
Best (Top 1) 2017Q1 Ads Leaderboard
Circle K Pokémon Video for 「OK齊齊印」app
Best of 2016 Ads Leaderboard
DoReMi Monchhichi Golden Globe Tigers 2017 Awards
- For Excellence In Retail & Store Management - For Excellence & Leadership In Social Media
& Digital Marketing - For Excellence & Leadership in Branding & Marketing
Octopus Partner Awards 2016
- The Octopus Innovation Award
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Re-inventing Strategy Lifting Customer Experience
13
>340,000 Members
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Circle K Hong Kong Won 2017 Service and Courtesy Award By HKRMA
14
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Fast Fashion Eyewear Chain from Japan Business Introduction
• Japan Quality • Always Fresh /
Fast Service • Value for Money
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Japan Quality
16
Amazing Zoff SMART – Parts used in Hakuto’s lunar rover are made from Ultem, the same materials used in Zoff SMART.
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Always Fresh New glasses, new mood, “Enjoy Your Glasses”
17
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Fast Services (30 mins)
18
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Value For Money
19
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20
The First Store In Hong Kong City Plaza, Taikoo (opened 25th November 2017)
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The First Store In Hong Kong City Plaza, Taikoo (opened 25th November 2017)
21
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The Second Store In Hong Kong Telford Plaza, Kowloon Bay (opened 23rd February 2018)
22
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The Second Store In Hong Kong Telford Plaza, Kowloon Bay (opened 23rd February 2018)
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2017 FINANCIAL RESULTS HIGHLIGHT
24
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Number of Stores End of 2016 Opened Closed End of
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 Hong Kong - 1 - 1
CRA Group Total 587 42 (44) 585
25
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Group Turnover
1,991 2,106
576 601
0
1,000
2,000
3,000
4,000
2016 2017
HK$
Mill
ion
2nd Half
Circle K Saint Honore
26
2,532*
+5.3%
∗ Less inter-group sales: HK$35M in 2H2016 & HK$40M in 2H2017
3,871 4,077
1,072 1,092
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2016 2017
HK$
Mill
ion
Full Year
Circle K Saint Honore
4,871* 5,094*
∗ Less inter-group sales: HK$72M in 2016 & HK$75M in 2017
+4.6%
2,667*
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Gross Profit & Other Income
27
37.2 37.5
30
32
34
36
38
40
2016 2017
% o
f Tur
nove
r
2nd Half
36.6 36.9
30
32
34
36
38
40
2016 2017
% o
f Tur
nove
r
Full Year
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Group Store Operating Expenses
26.1 26.4
20
22
24
26
28
30
2016 2017
% o
f Tur
nove
r
2nd Half
28
+0.3%
26.2 26.3
20
22
24
26
28
30
2016 2017
% o
f Tur
nove
r
Full Year
+0.1%
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Group Net Profit
88 93
0
50
100
150
2016 2017
HK$
Mill
ion
2nd Half
29
+6.1%
140 150
0
50
100
150
200
2016 2017
HK$
Mill
ion
Full Year
+7.7%
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Net Profit by Market
(HK$ Million) Full Year
Change 2016 2017
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
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Group Net Profit as % of Turnover
31
2.9 3.0
0
1
2
3
4
5
2016 2017
% o
f Tur
nove
r
Full Year
3.5 3.5
0
1
2
3
4
5
6
2016 2017
% o
f Tur
nove
r
2nd Half
0% +0.1%
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Basic Earnings Per Share
32
18.50 19.75
0 3 6 9
12 15 18 21 24 27
2016 2017
HK C
ents
Full Year
11.63 12.22
0
2
4
6
8
10
12
14
16
2016 2017
HK C
ents
2nd Half
+5.1% +6.8%
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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
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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 Dividend Final Dividend Special Dividend
3.5 13 27
4
14 -
+14.3% +7.7%
N/A 34
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2018 OUTLOOK
35
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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
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37
ASN Fun & Novelty “Internet+”
Customer
The Future Is Bright & Clear
Quality & Profitable Growth Copyright © Circle K Convenience Stores (HK) Limited
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THANK YOU !
38